"We had a better quarter when compared to the same period last year with sales up 3.5% and earnings before items increasing $23 million despite a 5.9% drop in paper shipments. Clearly, the synergies are starting to show in our results and the projected benefits from new initiatives have led us to increase our synergy target to $250 million," said Mr. Raymond Royer, President and Chief Executive Officer. "Having said that, the announced price increases for papers in June are necessary to adjust to this new business environment of structurally higher input costs," added Mr. Royer.

Full Domtar Press Release: Domtar Corporation reports second quarter 2008 financial results

"Although our financial results remain unacceptable, we did see a significant improvement in our operating performance in the quarter. Our efforts to offset cost pressures with synergies, combined with our announced price increases, should provide a significant improvement in both our operating efficiency and financial performance through the balance of this year," stated President and CEO David J. Paterson. "Recognizing continued market and economic challenges, AbitibiBowater is ready to take all actions it believes necessary, including the elimination of unprofitable production. Also, as our Phase 2 review of operations continues, an important consideration will be the renewal on acceptable terms of the CEP labor agreements of our Canadian operations in 2009."

Read the full AbitibiBowater Press Release: AbitibiBowater Delivers Ongoing Improvements in Q2 Operating Results

AbitibiBowater is proposing to amalgamate the Black Sturgeon Forest, the Spruce River Forest and the unmanaged former Kiashke Unit into the renamed Black Spruce Forest. Before, the Spruce River Forest was managed by Abitibi-Consolidated, and the Black Sturgeon Forest was managed by Bowater.

The Ontario Ministry of Natural Resources is looking for the public's input on the proposal to combine three area forest management units into one big one. Darrell O'Neill, MNR area supervisor, said they agree with the principle of the concept, and they're now seeking the public's input on the proposal and letters have also been sent to nearby First Nation communities for review as well.

By merging the bordering forest units, AbitibiBowater would then only have to prepare one forest management plan, one annual report, and one annual work schedule.

Source:
Abitibi-Bowater wants input on merging forest units (TBSource.com)

Weyerhaeuser has announced that it will be cutting 1,500 jobs, most at its Federal Way, Washington state headquarters.

The cuts are among many ways that Weyerhaeuser is restructuring. The company also recently sold its packaging unit to International Paper for $6 billion and combined its fine paper business with Domtar Corp.

The company also announced this year that it plans to sell its Australian timber manufacturing business and maritime shipping and railway assets.

Weyerhaeuser has been hurt by the housing slump because it supplies lumber and building materials and is involved with real estate development.

Source:
Weyerhaeuser will cut 1,500 jobs, including 1,000 at Federal Way headquarters (PNWLocalNews.com)

A year ago, Cascades reported a net income of $45 million, with sales of $1.01 billion.

Read more:
Cascades loses $25-million in the quarter (Report on Business)

Consolidated sales for the three-month period ended June 28, 2008 were $609 million, down from $712 million in the comparable period of the prior year.

Tembec said these results "were an improvement over the previous quarter, but remained well below acceptable levels."

Tembec's future outlook statements:

"The extremely low US $ lumber selling prices experienced over the last several quarters continues to depress earnings. Looking ahead, lumber markets will remain challenging as there are no clear signs of a U.S. housing recovery. Pulp markets are expected to remain stable. Newsprint prices increased in the June quarter and additional increases are anticipated during the September quarter, but at a reduced pace. As for the Company, it will continue to focus on controllable items such as costs and operating efficiency. However, the unprecedented increase in fossil fuel prices is negatively impacting the Company’s cost reduction efforts. While direct energy usage reductions are a priority item, approximately 75% of the impact of the higher fuel costs is related to purchased items, mainly wood deliveries, transportation and chemicals. The Company recently announced a US $100 per metric tonne energy related surcharge on its specialty dissolving pulps. If global energy prices remain at these lofty levels, manufacturers will have to increase selling prices well beyond normal historical levels to earn satisfactory margins. While the recent recapitalization transaction has significantly improved the Company’s liquidity, balance sheet leverage and debt service requirements, the Company is not yet cash flow positive and this continues to be an area of considerable focus."

Full results:
Tembec reports financial results for its third quarter ended June 28, 2008 (Tembec)

Calling themselves Nanaimo Forest Products, the group of mill managers, workers, and 3 private investors will take possession of the mill for $13.2 million.

Columbia Pulp & Paper, the Canadian subsidiary of Asia Pulp & Paper, which joined NFP's bid last week, was not part of yesterday's winning offer.

The mill employed more than 400 people when it was idled in May as Pope & Talbot fell into receivership.

Nanaimo Forest Products will take possession of the mill on August 29th. The mill will be restarted in September and aims to be back in production in early 2009. The mill will only employee 300 when it returns to operation.

Source:
Court accepts bid for Harmac mill in Nanaimo (The Star)
Judge gives Harmac mill new chance (The Vancouver Province)

On July 28th, a fire started in the area of the dryer, the same location as the fire on July 3rd, but firefighters and employees were able to knock the fire down before it spread to the ventilation system and the roof.

There was no damage reported to any of the equipment and no harm was done to the structure of the plant. However, one male employee was treated for breathing problems at the scene and then was transported to the Hants Community Hospital in fair condition. The employee received asthma treatment and was back to work within an hour.

Firefighters stayed on the scene while equipment was restarted just to ensure no hot embers were left to restart the fire. A staff member was assigned to conduct an overnight watch of the equipment to ensure any flareups would be noticed and dealt with.

The causes of the two fires were not related as this one started with a spark from a scraper malfunction on a dryer.

Source:
Spark starts second fire at Minas Basin (NovaNewsNow)

Last year Western Forest Products had a net profit of $17.6 (8 cents a share) in the same quarter.

Western Forest Products is continuing to experience the downturn in the forest products industry. The continuing decline in housing starts in the United States compounded by a continuing weak US dollar has reduced not only demand but also margins on sales particularly in one of the Western Forest Product's major markets, the United States. Second quarter sales were 21.0% lower than in the comparable quarter in the prior year.

See full press release: Western Reports Second Quarter 2008, Results Reflect Continued Depressed Markets (Western Forest Products Press Release)

These results compare to a loss of $14 million (33 cents a share) a year ago. Sales were $823 million, compared with $948 million.

Chief Executive Hank Ketcham cautioned that the profit did not mean lumber markets had rebounded, and said the company does not expect the U.S. housing construction market to recover until 2009, at the earliest.

"Our first-half loss of C$65 million is a better indicator of the severity of the current downturn and the effect a strong Canadian dollar has on our business," Ketcham said in a statement.

Sources:
West Fraser Timber posts small net profit (Reuters)
West Fraser, Canfor post profits, but still gloomy (Reuters)

The positive result was due mainly to accounting changes and other items, and market conditions continued to be difficult. Accounting items boosted the net results by $85 million (60 cents per share).

Commenting on the quarter's results, Canfor's President and CEO, Jim Shepard said he was pleased with the progress being made on several fronts. "The results are skewed by the quarterly change in inventory valuations but they also reflect a very concerted effort by all of our employees to deliver improvements in every area of our business, and conserve cash through this protracted downturn," said Shepard.

Sources:
Canfor Reports Second Quarter Profit as Accounting Changes and Other Items Outweigh Losses Due to Poor Markets - Reduced Costs at B.C. Operations Contribute to Improved Q2 Operating Results (Canfor Press Release)
Canfor posts Q2 profit, but on accounting items (Reuters)

"I am in shock" says Pulp, Paper and Woodworkers Local 25 President Jymm Kennedy "I really was optimistic they would rebuild, so I was totally shocked, as were the 259 other former employees". Kennedy says there is nothing more that can be done "I guess we will just have to shake hands, and help each other get to where we want to go."

The workers will receive 10 days severance for every year of service, as per their collective agreement.

Commenting on the decision, Canfor's President and CEO Jim Shepard said this was a very difficult decision for the Company. "Unfortunately, after considering the changing nature of our available fibre supply and expected future market conditions, the projected economic benefits were not sufficient to justify the significant capital cost of the rebuild."

Reaction:
Canfor Decision Not to Rebuild NCP Shocks Some (250 News)

Weyerhaeuser will take bids for the sawmill and its associated wood harvesting rights until September 5th. The sawmill produced hardwood lumber used in furniture, cabinetry and solid wood components, as well as producing low-grade dimension products for the pallet industry.

The mill has employed 88 people. It was temporarily shut down due to poor U.S. housing market and appreciation of the Canadian dollar, which hurt wood exports to the United States.

Source:
Weyerhaeuser to sell Delta, B.C. sawmill, idled since February (New Brunswick Business Journal)

There was no fire associated with the explosion. The tank that exploded was used to store a product used to make paper at the mill.

The mill is owned by Packaging Corp. of America, a company that makes containerboard and corrugated packaging products, operates four paper mills and 67 corrugated product plans in 26 states. According to the Lake Forest, Ill.-based company's Web site, it employs 8,350 people nationwide and posted sales of $2.3 billion last year.

Sources:
@BreakingNewsOn (Twitter)
Fire chief: Storage tank explosion at northern Wisconsin mills caused multiple deaths (News Day)

Paul McKinely, general manager of Fraser's lumber mill division, said they are making preparations to start the mill and they are calling their employees to see if any are available to come back to work in September.

If the mill is restarted, 1 shift would return to work. That would provide employment for about 70 of the 175 workers who were given layoff notices when the mill went idle last fall.

Idling of the mill was blamed on a continued oversupply of lumber from a weak U.S. housing market and a strong Canadian dollar.

If the mill can reopen, Fraser Papers is planning to operate it for only 3-4 months.

The mood in Juniper is rising with talk of reopening the mill.

An I-joist plant across the road from the Juniper mill remains closed. It employed 85 people.

Source:
Juniper mill may reopen this fall - Fraser papers says it may reopen mill for three to four months (Times & Transcript)