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West Fraser increases lumber production by 11.6%

19.05.2016 − 

Canadian West Fraser records a 6.2% increase in turnover as well as a 36.8% lower operating profit for the first quarter. According to in-company information, higher sales figures in the lumber and panels business divisions contributed to the turnover increase to a total of Can$1.077bn. Higher round-wood procurement costs particularly in the British Columbia region, the weaker value of the Cana-dian dollar against the US-dollar, lower sales prices for LVL and MDF as well as higher maintenance costs in the pulp&paper division were the cause of the lower operating profit which, at Can$ 79m, was Can$46m - or 37% - lower than the preceding year. The value of the adjusted EBITDA decreased by 24.8% to Can$130m.

Due to the various takeovers and modernisation measures carried out in 2014 and 2015, as well as a higher number of work days, production of softwood lumber in the lumber business division increased by 11.6% to 1.510bn bdft in the first three months. This consisted of 963m bdft SPF lumber as well as 547m bdft SYP lumber. On account of favourable weather conditions, and subsequently higher demand from the construction sector, an even more significant rise of 16.6% to 1.481bn bdft is recorded for delivery figures. At Can$758m, turnover of the business division was 11.3% higher than the preceding year. As a proportion of group turnover, this business division increased by almost three percentage points to 70.3%.

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