All posts by Jo English

credit facility

Western Forest Products enters into new $250 million credit facility

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Western Forest Products Inc. has entered into a new $250 million syndicated credit facility. The credit facility matures on August 1, 2022 and includes an accordion feature of $100 million.

The credit facility replaces Western’s existing $125 million revolving credit facility and $110 million revolving term loan facility, which would have matured in December 2018 and June 2019, respectively. The credit facility will be used for general corporate purposes, and has terms consistent with current market standards.

Western Forest Products Inc. is an integrated Canadian forest products company and the largest coastal British Columbia timberlands operator and lumber producer.

James Jones

James Jones & Sons acquires Billington International

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James Jones & Sons (Pallets & Packaging) Ltd has announced the acquisition of one of the UK’s leading pallet collar manufacturers, Billington International Ltd, for an undisclosed sum.

The deal will see James Jones & Sons (Pallet & Packaging) Ltd take immediate control of the Billington Group, with business operations continuing from Billington’s current office and warehouse premises in Rotherham, Yorkshire to ensure a smooth transition for the Group’s long-standing and loyal customer base and staff.

The acquisition has been made to further expand the James Jones & Sons (Pallet & Packaging) range of products and services, which includes new pallets, pallet repair, pallet management, recycled pallets and bespoke packaging solutions, and to strengthen its market position in the pallet and packaging sector.

Billington International was launched in 1985 by Frank Billington and has grown to become a leading provider of wooden pallet collars, with an unrivalled reputation for quality products and customer service. The Billington product range includes new pallet collars, used and recycled pallet collars and collar accessories with the business supplying a wide range of retail businesses across the UK.

James Jones & Sons (Pallets & Packaging) Ltd was formed in 2016 following the acquisition of a number of long-established pallet and packaging businesses in the north of England and Wales – Unit Pallets in Golborne, TWP in Gateshead and Larch in Wrexham – over the last two decades.

western

Western U.S. sawmills produced 7.1% more lumber in H1/2018

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Western U.S. sawmills produced 7.406 billion board ft. (bbf) of softwood lumber in the first half of 2018, a 7.1% increase from 6.915 bbf in the first six months of 2017, the Western Wood Products Assn. (WWPA) of Portland, Oregon, reported.

Of the six-month total, Coastal mills accounted for 4.678 bbf, up 8.1% from 4.326 bbf last year, while inland mills produced 2.517 bbf, up 6.8% from 2.356 bbf in the first half of 2017. California redwood production dropped to 212 million board ft. (mmbf), down 9.4% from 234 mmbf in the previous year.

In June alone, Western U.S. sawmills produced 1.226 bbf, a decline of 1.0% from 1.239 bbf in the year before, and down 4.3% from 1.281 bbf in May 2018.

Coastal mills contributed 766 mmbf to June’s output, a year-over-year gain of 0.7% from 770 mmbf, but down 3.6% from 805 mmbf in May 2018. Inland mills accounted for 408 mmbf – down 3.3% from 422 mmbf a year earlier, and down 5.8% from 433 mmbf in the previous month.

California redwood production in June was 43 mmbf, an 8.9% year-over-year drop from 47 mmbf, and 1.1% lower that output in May 2018 of 43 mmbf.

Western softwood lumber inventories in June grew 5.4% to 1.231 bbf from last year’s 1.167 bbf.

Production as a percent of practical capacity was 83% in June, level with 83% in May 2018 and up from 80% in June last year. Average production as a percent of practical capacity for the six months to June was 83%, up from 77% in the first half of 2017.

logging volume

Finland: logging volume 29% up in June 2018

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In June 2018, an all-time high volume of 5.1 million m3 of roundwood was harvested for use by the forest industries in Finland. This logging volume was 29% up over the previous year and 52% up over the ten-year June average, reports Natural Resource Institute Finland (Luke).

Sawlogs accounted for 2.1 million m3 and pulpwood for 3.0 million m3 out of the total roundwood harvested for the industrial purposes.

Industrial roundwood logging volumes from forests in non-industrial private ownership were 3.9 million m3. The Finnish forest industry companies and the state harvested 1.1 million m3 of roundwood from their forests.

Besides, in June 2018, 333,000 m3 of wood was harvested in Finland for energy production.

felling

Sweden: continued increase in notified area of final felling during June and July

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In Sweden, notified area of final felling increased by 14% in June and by 4% in July, compared to corresponding months of last year, reports the Swedish Forest Agency.

Quarterly statistics during the year shows an increase of 34% in the second quarter of 2018 compared with the first quarter 2018. The second quarter of 2018, compared to the corresponding quarter of 2017, notified area of final felling increased by 7%.

The 14% increase in June corresponds to a total notified area of final felling to 30,136 hectares. This is the largest increase in June since 2012.

On the county level, notified area of final felling increased in 16 of 21 counties. The largest increase in notified area of final felling was reported in Västmanland by 50%, Stockholm by 44% and Västernorrland by 39%. The largest decrease was reported in Södermanland by -34%, Skåne by -27% och Örebro by -14%. On the regional level, notified area of final felling increased in all four regions.

In July 2018, the increase was lower in total notified area of final felling. The increase of 4% amounted to a total of 20,541 hectares. This is the largest increase in July since 2011.

On the county level, notified area of final felling increased in 11 of 21 counties. The largest increase in notified area of final felling was reported in Uppsala by 86% and in Östergötaland by 52%. The largest decrease was reported in in Västmanland by 48% and in Skåne by 44%. On the regional level, there was increase in Northern Sweden (Norra Norrland) by 8% and Central Sweden (Svealand) by 22% respective 22%. There was a decline in South of Northern Sweden (Södra Norrland) by two% and South Sweden (Götaland) by 8%.

During the first seven months of 2018, compared with 2017, there is an increase of 5% of notified area of final felling.

Louisiana-Pacific

Louisiana-Pacific reports 2Q net sales of $811 million

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For the 2Q 2018, Louisiana-Pacific Corporation (LP) reported net sales of $811 million, up from $694 million in the 2Q 2017. Adjusted EBITDA from continuing operations in the 2Q 2018 was $242 million compared to $167 million in the 2Q 2017.

LP reported income from continuing operations of $163 million, or $1.11 per diluted share, as compared to $95 million, or $0.65 per diluted share for the 2Q 2017.

“Our strong results this quarter demonstrate clear progress against our strategy to transform Louisiana-Pacific into a leading building solutions company,” said Brad Southern, LP CEO. “In fact, this was the best second quarter for LP since 2004, driven by steady execution from our team across the business, strength in OSB pricing as well as ongoing growth in our value added products. Each business – Siding, OSB, Engineered Wood and South America operations – delivered increased top and bottom line results on a year-over-year basis. We remain focused on executing on our key growth initiatives and delivering increased value to shareholders, including capital returns in the form of a new $150 million share repurchase authorization.”

For the six months ended June 30, 2018, LP reported net sales of $1.5 billion compared to $1.3 billion in the first six months of 2017. LP reported income from continuing operations of $258 million, or $1.76 per diluted share, compared to $150 million, or $1.02 per diluted share, for the same period in 2017. Adjusted EBITDA from continuing operations for the first six months of 2018 was $401 million compared to $281 million for 2017.

Louisiana-Pacific Corporation is a leading manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction.

Greentec

100th Greentec Cheetah 30 delivered!

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On the 3rd August Ufkes Greentec b.v. delivered to Beers & Beers Boomverzorging their 100th Greentec Cheetah 30.

Ufkes Greentec b.v is a young, dynamic company specializing in wood chippers, stump grinders, wood cranes etc. Their machines are designed for professional users and meet the highest standards.

After working for several years in the service of a tree nursery, the brothers Daniël and Frank Beers started the company Beers & Beers Boomverzorging. Beers & Beers is a small and dynamic company that cooperates closely with a number of other professional tree care companies.

As a result, they are virtually always capable of finding a suitable solution in terms of working methods and the use of equipment. They work with certified European Tree Workers (ETW) and tree safety inspectors.

directors

Western Forest Products reports 2Q net income of $27.1 million

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Western Forest Products Inc. reported adjusted EBITDA of $50.2 million in the 2Q 2018, compared to adjusted EBITDA of $47.1 million in the 2Q 2017, and $43 million reported in the 1Q 2018.

Operating income prior to restructuring and other income was $39.7 million in the 2Q 2018, compared to $37.7 million in 2Q 2017, and $32.6 million reported in the 1Q 2018. Increased lumber shipments and lower manufacturing costs in the 2Q 2018 more than offset the impacts of $11.7 million of US export lumber duty expense and significantly higher stumpage costs.

Net income for the 2Q 2018 was $27.1 million, as compared to $25.6 million for the same period of 2017. Increased revenue and lower operating restructuring items drove an increased net income that was partly offset by higher export lumber duties and income tax expense.

Western Forest Products Inc. is an integrated Canadian forest products company and the largest coastal British Columbia timberlands operator and lumber producer.

Rayonier

Rayonier reports improved revenues of $245.9 million in 2Q

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Rayonier Inc. reported 2Q 2018 net income of $36.3 million, or $0.28 per share, on revenues of $245.9 million. This compares to net income of $26.2 million, or $0.20 per share, on revenues of $201 million in the prior year quarter.

2Q 2018 operating income was $51.6 million versus $46.9 million in the prior year period. 2Q adjusted EBITDA was $111.3 million versus $86.8 million in the prior year period.

“We are pleased to report strong results for the 2Q,” said David Nunes, President and CEO. “Southern Timber volumes increased 10% relative to the prior year quarter, as we fully integrated our prior year acquisitions in coastal Florida, Georgia and South Carolina. Weighted-average stumpage prices in Southern Timber were relatively flat compared to the prior year quarter.

“Pacific Northwest Timber results improved significantly driven by 36% higher harvest volumes and a 26% increase in both delivered sawtimber and pulpwood prices relative to the prior year quarter, reflecting strong domestic and export market conditions.

Excluding the prior year quarter timberland sales, New Zealand Timber results also improved significantly, driven by 20% higher harvest volumes and a 9% increase in both export and domestic sawtimber prices.”

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.

 Photo: David Nunes, President and CEO Rayonier Inc

BSW

BSW infrastructure agreement signed in Slovenia

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The agreement between the Municipality of Braslovce, Slovenia, and Ministry of Infrastructure of Slovenia was signed. It lays foundations for the direct road connection to the BSW SI Gomilsko production facilities in the Municipality of Braslovce.

The agreement regarding the road connection was signed by Ms. Darja Kocbek, Director of the Directorate for the Land Transport (part of Ministry for Infrastructure), and Mr. Milan Šoštaric, Director of the Braslovce Municipality Office. The new third access road represents a strategic infrastructure investment for the Republic of Slovenia.

It will enable long term sustaninable transport, providing improved links for Slovenia with neighbourging countries, while being aligned with Braslovce local community development plans. The BSW SI Gomilsko facilties being developed are a signficant part of the future plans for the Braslovce Municipality.

Alex Brownlie, BSW Timber Commercial Director and Chairman of the Board of Directors in BSW SI, highlighted that BSW Timber investment plans in Slovenia have always included the requirement to purchase sawn timber from other Slovenian sawmills.

This work has begun with two sawmills and will continue into 2019. BSW SI is looking forward to working with other Slovenian sawmill companies, through trade and cooperation, to support and add value to Slovenian saw products from other mills, as well as its own for the global market.