West Fraser Timber Co. Ltd. reported earnings of $56 million, or $0.67 basic earnings per share on sales of $1,044 million in the 3Q 2015.
In the quarter lumber operations generated an operating loss of $9 million (2Q 2015 – operating earnings of $13 million) and Adjusted EBITDA of $26 million (2Q 2015 – $45 million).
A decline in U.S. SYP and low-grade SPF lumber prices, partially offset by a weaker Canadian dollar, was a major factor in the decreases. Increased shipments from our U.S. sawmills partially mitigated the operating earnings decline.
The panel segment, which includes plywood, LVL and MDF, experienced improved prices and generated operating earnings in the quarter of $26 million (2Q 2015 – $17 million) and Adjusted EBITDA of $29 million (2Q 2015 – $21 million).
The company’s pulp operations achieved improved production and shipments and, combined with its jointly-owned newsprint division, generated operating earnings of $14 million (2Q 2015 – operating loss of $1 million) and Adjusted EBITDA of $25 million (2Q 2015 $8 million). U.S.-dollar price declines were partially offset by a weaker Canadian dollar.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.