West Fraser Timber Co. Ltd. is reporting a loss of $17 million on sales of $681 million in the first quarter of 2012.

Lumber operations in the quarter generated a loss of $29 million and EBITDA of negative $6 million. The improvement over the prior quarter was smaller than anticipated due to continued weakness in offshore prices for low-grade SPF lumber.

The panel segment, which includes plywood, LVL and MDF, generated $1 million of operating earnings and EBITDA of $5 million in the quarter, a marginal increase over the prior quarter.

Pulp and paper operations generated operating earnings in the quarter of $17 million and EBITDA of $30 million. The improvement over the prior quarter occurred despite the decline in pulp prices as the previous quarter’s results were negatively affected by the Hinton Pulp maintenance shutdown.

CEO Hank Ketcham said, “Although there are some improvements in our markets, we will continue to monitor capital spending and focus on maintaining a strong balance sheet as the North American and Asian economies remain fragile.”

Source: West Fraser (read release)