Global Forest and Paper Industry: Net Earnings Summary — Three months ended September 30, 2008

Global Forest and Paper Industry: Net Earnings Summary — Three months ended September 30, 2008 (54kb)

Forest products companies in the US were the only group in this report to turn in an aggregate positive net earnings - US$808 million, down from US$957 in the same period of 2007. Two of the nine US companies reported improved earnings during the period in spite of difficult market conditions.

The six European-based forest products companies in the report incurred an overall net loss of US$314 million, down significantly from US$275 in profits the previous year.

In South America and South Africa the four largest producers reported combined losses of US$407 million in the third quarter of 2008, a major drop from combined positive earnings of US$503 million in the same period of 2007.

Canada’s forest and paper industry continued to be hit hard by the slumping US housing market, restructuring and asset impairment charges. Western and Eastern Canadian producers reported losses totalling US$529 million during the third quarter of 2008 versus US$173 million in losses during the third quarter of 2007.

The summary is prepared by PricewaterhouseCoopers from financial statements issued by the companies noted. All figures are in US dollars and compared with figures reported the three months ended September 2007.