VANCOUVER, BC - Western Forest Products Inc. said dry weather conditions reduced its logging operations and profits during the third quarter. Still, the companyrecorded its 12th consecutive quarter of pre-tax growth.
The company generated net income for the third quarter of $2.0 million on sales of $219.4 million, down from $5.3 million net sales for the third quarter of 2011.
The company's third quarter timber harvests were negatively impacted by the "driest late summer in a century." As a result, Western Forest Products said timber harvest production volumes that were 83% of its third quarter 2011 levels. Log revenue in the third quarter of 2012 was $58.5 million, a decrease of 24% compared to the same quarter last year.
On a positive note, Western Forest Products managed to increase lumber revenue by 4%. The company also observed that it benefited from mill productivity gains of 13% compared to the third quarter of 2011.
"The U.S. recovery is underway and housing is accelerating, Japan is showing improvement and China remains a key market. We are continuing to position Western to take full advantage of these market improvements," said Dominic Gammiero, chairman and CEO.
"Dry weather conditions impacted log supply but despite this, our sawmill productivity continued to climb and our timberlands performed well in delivering volume even with operating days being reduced significantly," Gammiero added. "The demand for our lumber products increased, our lumber order file emerged from the quarter strong, and our liquidity and debt position is still the best it has been since the company's inception."
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