Last year the profits our Canadian sawmills reported were the lowest of all sawmills worldwide.

And the profit results for the first quarter of this year are even worse, with losses at Eastern Canadian mills described as "horrific".

These were the findings of reported in the Global Lumber/Sawn Wood Cost Benchmarking Report - 2008 & Q1/2009. The biannual study is prepared by three consulting groups.

The report, which benchmarks timber and sawmill costs around the world, found that "average" Canadian sawmills had the lowest EBITDA — earnings before interest, taxes, depreciation and amortization, a measure of profit before financial charges — of any mills worldwide in 2008.

Canadian sawmills have suffered from the collapse of the U.S. housing market, the strength of the Canadian dollar and Canadian export taxes on U.S. shipments. That, combined with high costs, pushed Eastern Canada mills to 2008 losses of $37 US per cubic metre.

But even the best-performing mills in the world, niche markets in South Africa, China and Northwest Russia, reported losses of $3 to $4 a cubic metre.

Read more:
Canadian sawmills' profits at bottom of pack: report (CBC)