Vancouver’s West Fraser Timber Co. Ltd. (TSX:WFT) is going on a spending spree.
The company plans to carry out a $125 million capital spending program to expand and upgrade its various solid wood operations in Alberta, the U.S. South and the B.C. Interior in the next 18 months.
Hank Ketcham, West Fraser’s chair, president and CEO, said it is able to make significant capital improvements because of the company’s stronger balance sheet.
In its second quarter ending June 30, the company reported cash and short-term investments of $96.6 million, up from $12 million at the end of 2009. It reported stronger cash flow in the second quarter, reporting cash provided from operating activities of $213 million, resulting in a net change in cash of $109 million compared with only $3 million in the same period in 2009.
Second quarter sales rose 26% to $722.2 million from $611.8 million, resulting in a net profit of $63.3 million compared with a net loss of $39.1 million.
West Fraser’s share price range during the past week: between $36.27 and $38.10; 52-week high: $45.50; 52-week low: $25.10.