Tag Archives: Western Forest Products

Western Forest Products is reporting a net income of $1.9 million in the first quarter of 2012, on sales of $223.4 million. These results can be compared to a net income of $3.8 million in the first quarter of 2011 and a net income of $3.3 million in the fourth quarter of 2011.

“Western has produced a tenth successful quarter with a positive EBITDA, increased production, and our highest lumber revenue since 2007. Achieving this in such challenging markets shows Western is positioned to be more resilient to these conditions and that we can operate successfully through them. At Western, we continue to put our positive earnings back into the company to build on this strength. This quarter we saw the start of the first step in our capital plan with the commencement of our $16 million investment in the Saltair Sawmill, with further investment anticipated. We look forward to the next evolution for Western as we refine our focus on margin. As always, we do this with safety our most significant priority. As always, we do this with safety our most significant priority,” says Dominic Gammiero, Chairman and Chief Executive Officer.

Highlights of the quarter include:

• EBITDA of $9.3 million marks the tenth consecutive quarter of positive EBITDA earnings
• Top line revenues grew by 24% compared to Q1 2011
• Lumber shipments increased to 220 million board feet or $157.2 million, our highest quarterly lumber revenue since Q2 2007
• Log shipments up 39% from Q1 last year with strong domestic pulp mill demand and export log demand
• Mill productivity levels increased 8% over the first quarter of 2011
• Balance sheet and liquidity positions continue to improve with net debt to capitalization at 13% and $114.9 million in total available liquidity
• $16 million investment in Saltair sawmill to increase productivity by 15%.

Read Western Forest Products First Quarter 2012 Release

Western Forest Products Inc. has reported net income of $5.3 million in the fourth quarter of 2011 on sales of $220.7 million, compared to a net income reported for the fourth quarter of 2010 of $20.1 million on sales of $172.6 million.

“2011 was a good year for Western with EBITDA increasing 32% from 2010 to $62 million,” said Dominic Gammiero, Chairman and Chief executive Officer. “Even though markets for some of our products remain historically weak, our repositioned cost structure allowed our timberlands and lumber manufacturing businesses to operate at significantly higher rates than 2010. The improved financial results and resulting balance sheet will allow the Company to continue to implement our strategic capital plan.”

For the entire year of 2011, Western Forest Products has reported net income of $24.0 million, compared to a net income of $41.1 million in 2010.

Read full release from Western Forest Products

Western Forest Products Inc. has announced a $16 million investment in the Saltair Sawmill.

The Saltair Sawmill, built in 1972, converts coastal mid-size logs into high value specialized lumber products in Hemlock, Douglas fir and Western Red Cedar.

This capital project will make Saltair the largest single line sawmill on the coast of British Columbia and will provide upgrades to the edgers, stacker and sorters. The upgrades will increase production by approximately 15%, lowering the per unit cost of production, and improving competitiveness with global producers. Increased efficiencies with the upgrade will reduce mill bottlenecks, not only a benefit to productivity, but also to the safety of the work environment.

Western Forest Products said their ability to provide a variety of products to a diverse customer base will ensure they are able to operate through varying market conditions. Upgraded edgers will facilitate onsite production of prime sizes for the ever growing Asian market; a critical part of Western’s customer profile which also includes Europe, Australia, and North America.

Once the project is complete, a more competitive mill, that can absorb market fluctuations, will provide more stable and secure employment for the 140 existing mill jobs.

“With our improved financial results and a secure timber supply; both key to having the confidence to invest, we are taking the first step in our plan. Our capital planning focus now shifts to other high return projects that make up the remainder of our capital investment strategy,” said Dominic Gammiero, Chairman and Chief Executive Officer.

Source: Western Forest Products

A new wood sound abatement system made of B.C. Coastal hem-fir and developed by FPInnovations and Western Forest Products is providing municipalities with a natural, sustainable option to reduce traffic noise.

The environment-friendly and cost-effective wood-concrete hybrid sound-abatement system meets and exceeds code requirements with a smaller environmental footprint than other systems. And it does all this while bringing the warmth and aesthetic appeal of wood to communities adjacent to roads and highways.

The wood barrier is made from sustainably managed hemlock wood products manufactured on Vancouver Island.

“This product plays on the strengths of wood – renewable, light-weight, long lengths and low cost – making it competitive with concrete systems that currently have almost 100 per cent of the sound abatement market in Canada,” said Peter Lister, Vice-President Forest Operations and Wood Products, FPInnovations. He added, “Research on this project had been conducted by FPInnovations for almost two years prior to its commercialization.”

Western Forest Products Chief Operating Officer Don Demens said this specialized hemlock product is both environmentally sustainable and visually attractive.

“Western is committed to developing new markets for our products and we have worked closely with FPInnovations to develop a really effective sound barrier. Not only is it more attractive than concrete, but it is dramatically more cost-effective, at a time when governments are looking to stretch taxpayer dollars further,” said Demens.

The hemlock sound abatement system was developed through the BC Coastal Forest Sector Hem-Fir Initiative, a project co-sponsored by the Government of British Columbia and Natural Resources Canada.

The City of Burnaby has purchased the product and plans to install a 3 meter high sound abatement system along a stretch of Marine Drive. Additionally, special projects in Greater Vancouver have been identified as ideal locations for wood barriers, including the Perimeter Road Projects and upgrades to Highway 1.

Source: FPInnovations

Western Forest Products has announced a $7.6 million net income in its third quarter of 2011.

EBITDA was $18.1 million in the quarter which is a significant increase over the $11.8 million achieved in the third quarter of 2010 and is now the eighth consecutive quarter that the company has achieved positive EBITDA.

Western Forest Products has reduced their net debt to $63.2 million and the company’s liquidity is $116.0 million at the end of the quarter.

Mill production was 3% higher than the previous quarter and 27% higher than a year ago. Productivity in the quarter was 1.4% higher than the same quarter of 2010.

“I am pleased to announce another strong quarterly performance both in terms of our financial results and our operating performance. Again I would like to emphasize that we are achieving this despite the less than favourable market conditions that persist in our industry,” said Dominic Gammiero, Chairman and Chief Executive Officer.

Western Forest Products has started their strategic capital spending with a planer trimmer upgrade at their Cowichan Bay sawmill that is expected to be complete by the end of November. This upgrade will increase the speed of the planer, allowing it to keep up with their growing sawmill production.

On October 11, 2011 Western announced that it had reached an agreement to sell TFL 60 in Haida Gwaii for net proceeds of $11.6 million and the sale is expected to close before the end of the year.

Source: Western Forest Products (read full release)

Western Forest Products Inc. has reached an agreement to sell its Tree Farm Licence 60 and related assets on Haida Gwaii to Taan Forest Limited Partnership, a partnership of the Council of the Haida Nation and Haida Enterprise Corporation, the business arm of the Haida Nation.

Under the terms of the sale, Western Forest Products will receive net proceeds of approximately $11.6 million and certain ongoing rights to cedar logs harvested by Taan. Taan will assume substantially all of the obligations of Western on Haida Gwaii. The net proceeds from the sale will be used to pay down the company’s debt in accordance with its lending agreements. It is expected that the agreement will close before the end of the year.

“We have been in discussions regarding this sale with the Haida Nation for more than two years and the Minister of Forests has already provided notice that the TFL sale can now proceed. As the average annual timber harvested off TFL 60 by Western over the past five years has been modest, the sales will have no impact on our long term operating rates at our eight lumber mills. Proceeds from the sale will further strengthen our balance sheet and provide us with additional flexibility to pursue strategic initiatives. We have no plans to sell any other Crown timber tenures,” said Dominic Gammiero, Chairman and Chief Executive Officer.

Source: Western Forest Products

Western Forest Products Inc. has posted a net income of $12.1 million in its second quarter of 2011, on sales of $218.7 million, which compared to a net income reported in the second quarter of 2010 of $9.8 million and a net loss reported for the first quarter of 2011 of $1.0 million.

“I am pleased with our second quarter 2011 financial results and operating performance considering the ongoing market challenges that still persist in our industry. The operating initiatives outlined in the last quarter are continuing to sustain our profitability in what continues to be a very uncertain business environment,” said Dominic Gammiero, Chairman and Chief Executive Officer.

Western Forest Products enjoyed strong seasonal demand for its lumber and log products. Log sales revenues reached the highest levels since the second quarter of 2007, driven by a strong Canadian domestic market. In addition, by-product volumes and prices increased, largely driven by a robust pulp market. However, the company’s EBITDA margin for the quarter was adversely impacted relative to the second quarter of 2010 by the negative impacts of the stronger Canadian dollar, increased freight charges and higher log harvesting costs.

Western Forest Products’ liquidity position at June 30, 2011 increased to $111.7 million from $95.2 million at the end of the first quarter of 2011, and from $64.1 million a year ago.

In its release, Western Forest Products said its commodity lumber program will continue to focus on China, with the market weakness persisting in the U.S. China is expected to be their highest volume export lumber market for 2011, with strong demand for both lumber and logs. However, the Chinese government has recently undertaken a number of measures to slow their economy by restricting credit. These restrictions may impact the pace of residential development in China and ultimately lumber demand. The company does anticipate some slow-down of sales growth in this market for the balance of 2011, as a result of such restrictions and seasonal demand slow-down.

Some market related downtime is to be expected at certain mills in the third quarter, due to the slow lumber demand from Japan (due to the severe infrastructure damage caused by the earthquake and resulting tsunami).

As previously announced, Western Forest Products plans on investing $125 million of strategic capital into Western’s operations over the next several years. The company will continue to work through their strategic plan and evaluate the best opportunities to inject capital into the business. The company plans to commence strategic, high return projects totaling over $3 million in the latter half of 2011. Western Forest Products will also focus on improving their product margins through a number of non-capital initiatives, while at the same time ensuring that they balance their working capital requirements with market demand in the coming months.

Western will continue to pursue opportunities to sell non-core assets. However, the company’s net debt and liquidity situation has significantly improved over the past year. Any proceeds will first be used to reduce the revolving term loan and then any surplus will be used to provide additional liquidity.

Read full release:
Western Reports Second Quarter 2011 Results (Western Forest Products)

Western Forest Products Inc. has announced that it has appointed Don Demens as Chief Operating Officer of the Corporation.

Mr. Demens has been Western’s Senior Vice President of Sales and Manufacturing for the past two and a half years.

“Mr. Demens has been instrumental in changing the business culture and business model and a key player in turning the company around,” says Dominic Gammiero, CEO and Chairman. “The board has full confidence in his ability to serve as Chief Operating Officer.”

Source: Western Forest Products

Western Forest Products is reporting a net loss of $1 million in its first quarter of 2011, on sales of $180.8 million, compared to a net income of $9.1 million a year earlier.

Highlights of the first quarter:

• Lumber shipments increased to 183 million board feet which was 24% higher than Q1 last year on strong demand from Asian Markets.
• Log shipments up 22% from Q1 last year and prices higher by 15% reflecting strong pulp markets.
• EBITDA of $8.2 million from improved shipments and higher operating rates offset partially by negative impact of a strong Canadian dollar.
• Completed $25.3 million in non-core asset sales contributing to $31.2 million in debt repayments in Q1.
• Balance sheet and liquidity positions continue to strengthen with net debt to capitalization reduced to 12% and $95.2 million in total liquidity availability.

“I am pleased to report another positive quarter. Despite continued challenging market conditions, we were again able to generate a positive EBITDA,” says Dominic Gammiero, Chairman and Chief Executive Officer.

Western Forest Products said in their release that they have paid down a further $31.2 million of their debt, partly from improved cash generated from operations and also from additional non-core asset sales made in the quarter. The company’s liquidity continues to improve and balance sheet is stronger with net debt down to 12%. Their focus continues to be on reducing costs still further and enhancing the operating efficiencies of all of their activities, while further strengthening our balance sheet.

Read full release:
Western Reports First Quarter 2011 Results

Western Forest Products sawmills in Ladysmith and Cowichan Bay will stay closed another week due to low log inventories.

The company’s Alberni Pacific Division in Port Alberni was able to restart on Monday after a 5-day shut down due to the shortage of logs.

One of the problems holding up the supply of logs on Vancouver Island has been the poor weather that has restricting the amount of logging the company is able to do.

Source:
WFP mills to remain closed for second week (The Daily News)