By: Business Vancouver
Western Forest Products (TSX:WEF) had net income of $19.1 million in 2015’s second quarter – down 35% compared with $29.2 million in the same period last year.
Revenue for the period ending June 30 was $289.2 million, compared with $296.2 million for the second quarter last year.
Western credited an increase in specialty product sales for the profit in the second quarter.
The company also said it increased shipments of western red cedar and reduced its exposure to a significant downturn in both commodity lumber and Japanese markets.
Western showed a profit of $27.6 million profit in the first quarter of 2015.
The company’s earnings before interest, taxes, depreciation and amortization of $29.2 million in the second quarter — though down from $40.9 million a year ago — were helped by an improved lumber sales mix, led by growth in specialty product shipments, and an increase in export log shipments.
“The ability to focus our production and sales on higher-margin specialty products limited Western’s exposure to the significant second-quarter decline in commodity lumber pricing and weak market in Japan,” said CEO Don Demens.
“Despite a challenging market environment, we achieved a record average lumber price in the quarter and reported EBITDA consistent with last quarter.”
In the second quarter, Western completed the restart of the second production line at the Duke Point sawmill.
The company also announced a capital investment of $30 million to be spread among various operations.
Western has also added a person to its board. Jane Bird was responsible for the Canada House renewal project in London as an attache with Canada’s Department of Foreign Affairs.