Millar Western posts $35.6M net profits
March 16, 2004 By Pulp & Paper Canada
Despite volatile pulp and lumber markets, a strengthening Canadian dollar and the ongoing softwood lumber trade dis…
Despite volatile pulp and lumber markets, a strengthening Canadian dollar and the ongoing softwood lumber trade dispute, Millar Western improved its financial results for the fourth quarter and year ending December 31, 2003, compared to one year ago.
Net revenue increased by $5.2 million, or 9%, in the fourth quarter compared to the same quarter last year, and by $24.6 million, or 11%, year over year.
Lumber shipments improved by 20% in the fourth quarter and 21% year over year, due to strong demand and higher production levels at the Whitecourt and Boyle sawmills. While shipments were up, our average net price per thousand board feet decreased by 16% year over year. Contributing to the lower average net price for the year were higher duty charges on softwood lumber shipments to the U.S. A charge of $11.9 million was incurred in 2003 relating to duties paid on all softwood lumber shipments to the U.S. between January 1, 2003, and December 31, 2003, compared to $2.9 million in the same period in 2002.
Pulp shipments improved by 3% in the fourth quarter and by 7% year over year, reflecting higher pulp production at the Whitecourt mill. As a result of continued strong demand for BCTMP in the world market, our average pulp price per tonne improved by 10% from the prior year.
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