Nanaimo-Based Company Reported a 28 Percent Increase in Sales to $854 Million Over 2010

Strong shipments of lumber and logs and improved production at its sawmills powered Western Forest Products to a $24-million profit in 2011, according to the company's year-end financial statements. The Nanaimo-based company reported a 28 per cent increase in sales to $854 million over 2010 and earnings before interest, taxes, depreciation and amortization, or EBITDA, of $62 million, up from $47 million in 2010. "[It] was a good year for Western with EBITDA increasing 32 per cent from 2010. 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, " chief executive Dominic Gammiero said in a statement. "The improved financial results and resulting balance sheet will allow the company to continue to implement our strategic capital plan. " Western's fourth-quarter performance was also strong, with a $5.3-million profit posted on sales of $220 million. That fourth-quarter net income, however, pales in comparison to the fourth quarter of 2010, when Western recorded a $20-million profit. But the revenue in the fourth quarter of 2010 includes an $18.5-million recovery of a previously recognized impairment assessment of timber licences. That $18.5 million reversal and two one-time items totalling $14 million in 2010 also make the $41-million year-end profit in 2010 look better than the most recent results. However, take away the one-time items, and 2011's year-end profit of $24 million would be $15.5 million higher than 2010. The company reported log harvest in 2011 was up 25 per cent to 5.8 million cubic metres. Lumber production was 17 per cent higher than the previous year with sawmills operating at 83 per cent of total capacity in 2011 compared to 63 per cent in 2010. Source: timescolonist.com