Editor’s Note: Since Western Forest Products did not provide an average exchange rate in its earnings report, all calculations are based on today’s exchange rate.
Both Western Forest Products and Resolute Forest Products reported increases in operating profits for their wood product units, further continuing the positive second-quarter trends within the timber industry.
Vancouver, British Columbia-based Western Forest Products posted net income of C$12.3 million (US$12.3 million) for the quarter ended June 30, an 8% increase over the same period a year ago, the company reported yesterday. Net income from continuing operations also grew 9% to C$12.7 million (US$12.7 million) behind a 16% rise in sales to C$253.1 million (US$252.5 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by $800,000 to C$20.4 million (US$20.4 million).
Lumber revenues at the company increased 15% to C$165.5 million (US$165.1 million) during the quarter, driven by higher shipment volumes as well as a 3% increase in prices. Lumber production at Western Forest Products increased 8% during the quarter. The company shipped 234,000 cubic meters of lumber during the quarter, up 11% from the same period in 2011.
Resolute Forest Products’ wood products unit revealed a $12 million operating income for the second quarter, a jump into the black from the $14 million loss reported a year ago, the company posted today. Sales in the segment grew 15% to $132 million.
The unit’s EBITDA, which the company defines by reportable segment as net income (loss) including non-controlling interests from our Consolidated Statements of Operations, allocated to our reportable segments (newsprint, coated papers, specialty papers, market pulp and wood products) in accordance with FASB ASC 290, "Segment Reporting," adjusted for depreciation, amortization and cost of timber harvested, moved into the black with $21 million in earnings.
The Montreal-based company, which reports its results in U.S. dollars, posted an overall operating loss of $36 million for quarter, a huge fall from the $52 million in income a year ago, as sales fell slightly to $1.2 million. During the quarter, Resolute shipped 384 million board feet of wood products, down from the 397 million board feet shipped a year ago.