VANCOUVER, BC - Rising lumber prices helped West Fraser Timber Co. Ltd., realize net earnings of $26.9 million (CAD) for the second quarter on sales of $774 million.
The Q2 results wiped out the nearly $17 million deficit West Fraser experienced in Q1, bringing its net earnings to $10 million on $1.5 billion in total sales for the first half of the year.
West Fraser, an integrated wood products company, including production of lumber, MDF, wood chips and plywood, reported that its lumber segment generated operating earnings of $34 million. The company said it benefited from a combination of improved U.S. demand for lumber, continued strong demand for lumber from Asia, and higher prices.
In addition, West Fraser said that duties charged on softwood lumber exported to the United States from British Columbia and Alberta declined from 15% to 10% in June. The company noted that an arbitration panel that met on July 18 to settle the U.S.-Canadian softwood lumber dispute resulted in a unanimous vote to dismiss U.S. claims of softwood dumping in their entirety.
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