Vancouver's West Fraser Timber Co. Ltd. (TSX:WFT) is cutting lumber production at seven B.C. sawmills. The move will affect an estimated 1,160 employees.
Beginning March 16, the company plans to shut down production for one- to two-week periods. The shutdowns will eliminate about 44 million board feet of lumber production and raise the company's total annualized curtailment to 1,120 million board feet.
Last month, the company implemented week-long shutdowns at five of its sawmills in B.C. and several of its sawmills in the U.S. It also reduced pulp production at its Quesnel River and Slave Lake mills.
The move results from continued weakness in the U.S. housing market, which has hammered new home construction. Last month, West Fraser reported an annual loss of $137 million, up from $36 million in 2007. Revenue fell to $3.19 billion from $3.3 million.
West Fraser's share price range during the past week: between $24.10 and $27.24; 52-week high: $38.84; 52-week low: $20.03.