West Fraser reports $198-million loss

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By comparison, West Fraser lost $2 million, or five cents a share, on sales of $848 million during the third quarter of 2008.

Web Site: http://www.vancouversun.com

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Description

VANCOUVER A $155-million writedown related to West Fraser Timber Co.'s Kitimat pulp mill and other sawmill assets contributed to a third quarter loss of $198 million, or $4.64 a share for the B.C. lumber giant.

The loss was on sales of $679 million.

By comparison, West Fraser lost $2 million, or five cents a share, on sales of $848 million during the third quarter of 2008.

Despite the loss, West Fraser reported earning before interest, taxes, depreciation and amortization of $42 million.

The quarterly results are an improvement over the second quarter, the company reported in a news release. Housing starts in the United States were up while existing home inventories declined. Lumber pricing was mixed. Spruce, pine and fir prices from Canadian operations were up slightlty while southern yellow pine from U.S. operations declined in price.

Pulp prices were up, due to tighter global inventories and improved demand, particularly form China.

West Fraser Timber announced last week it would be shutting down its Eurocan pulp mill at Kitimat on the northern B.C. coast, throwing 535 people out of work.

Company president Hank Ketcham blamed a steep decline in the mills financial results for the closure.

The mill will close Jan. 31, the company said in a news release.

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Web Site: http://www.vancouversun.com

Category: Forestry>Mill News

Region: BC - Canada

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