West Fraser Timber Wednesday reported lower year-over-year earnings in 2Q despite an increase in sales revenue.
The Vancouver-based softwood lumber producer says net income in the quarter was $74 million, or 87 cents per share, compared with $109 million, or $1.27 per share, in the comparable 2013 period.
Revenue rose to $1.05 million from $900 million in 2Q 2013 and from $809 million in 1Q of this year as increased shipments in its lumber operations were offset by lower prices.
Ex-items, earnings came in at $66 million, or 77 cents per share, in 2Q, compared with adjusted earnings of $107 million of $1.25 per share in the year-earlier period.
The company said shipments of lumber increased sharply in 2Q, but that both SPF and SYP prices declined.
Meanwhile, log costs are expected to trend higher in B.C. as competition for purchased wood increases but lumber productivity and cost reductions throughout the company’s sawmills are expected to continue to improve over the next few quarters, it said.
