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ARTICLE · 10 OCTOBER 2012

Global Forest And Paper Industry: Net Earnings Summary — Three Months Ended June 30, 2012

The 2012 second quarter net earnings reports for the Canadian forest and paper companies show a distinct quarter to quarter change in fortunes between the Western and Eastern based companies.

CanadaStrategy

Article by Kevin Bromley , Ray Luchkow and Frédéric Bouchard

Canada

The 2012 second quarter net earnings reports for the Canadian forest and paper companies show a distinct quarter to quarter change in fortunes between the Western and Eastern based companies. The lumber and solid wood segment of the industry is experiencing slow but steady improvements, based primarily on the gradually improving US housing market. Northern Bleached Softwood Pulp (NSBK) prices continued to decline from the record highs reached in Q2 2011.

Western Canadian based companies posted net earnings of $30.1 million compared with net losses of $39.5 million in the first quarter of 2012 and net earnings of $6.8 million in the second quarter of 2011. West Fraser reported the highest net earnings for the quarter of $26.9 million compared to earnings of $16.7 million in the first quarter. Catalyst Paper Corporation reported net losses of $12.3 million for the quarter, an

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