West Fraser Timber Co. Ltd.

West Fraser Timber Co. Ltd.

September 14, 2010 17:13 ET

West Fraser Increases Dividend; Announces Capital Spending Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) - The Board of Directors of West Fraser Timber Co. Ltd. (TSX:WFT) has declared a quarterly dividend of $0.06 per share on the Common shares and Class B Common shares in the capital of the Company, payable on October 12, 2010 to shareholders of record on September 27, 2010. This represents an increase from the previous quarterly dividend of $0.03 per share.

Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.

The Company also announced a new $125 million capital spending program which will focus on expanding and upgrading various solid wood operations in Alberta, the U.S. South and the B.C. interior. The program is expected to be carried out over the next 18 months.

Hank Ketcham, West Fraser's Chairman, President and CEO, said, "As a result of our strong balance sheet we are able to begin making significant capital improvements to our facilities to keep them at the forefront of technology and efficiency."

West Fraser is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp and newsprint. The Company has operations in western Canada and the southern United States.

West Fraser shares trade on the Toronto Stock Exchange under the symbol: "WFT".

This News Release contains certain forward-looking statements about potential future developments, in particular those relating to the timing of the capital spending program. These are presented to provide reasonable guidance to the reader. Their accuracy and the actual timing of the program depend on and are subject to a number of assumptions, risks and uncertainties and other factors. Accordingly, readers should exercise caution in relying upon forward-looking statements and West Fraser undertakes no obligation to publicly revise them to reflect subsequent events or circumstances except as required by applicable securities laws.

Contact Information

  • West Fraser Timber Co. Ltd.
    Gerry Miller, Executive Vice-President,
    Finance and Chief Financial Officer
    (604) 895-2700
    West Fraser Timber Co. Ltd.
    Rodger Hutchinson
    Vice-President, Corporate Controller
    (604) 895-2700