Page 5 - RosboroAR2017

(versus the 2% that we actually achieved), the company needed to exceed its market share gain forecasts in order to meet our projected glulam volume. We did nish the year right on plan from a volume standpoint and ahead of plan from a sales return standpoint.
With the growth in glulam volume, additional lamstock was also needed. Lamstock, much less volatile in the market than dimension lumber, commanded an average premium of $143/mbf over its dimension lumber counterpart, contributing signi cantly to company pro tability.
Unlike lamstock, Rosboro’s stud products compete in the broader framing lumber market and represent less than 1% of that total market. Slowing lumber imports from Western Canada, an extreme forest re season on the West Coast leading to log supply constraints and the unwillingness of lumber wholesalers and retailers to take big inventory positions during the rst quarter while prices were rising led to both pricing and volume tension
between $400-$440/mbf for the rest of the year, nishing with the 3rd highest framing lumber composite yearly average on record (unadjusted for in ation).
LOGS & TIMBER: 2017 was a very challenging yet accomplished year for the company’s timber operations. As if sourcing logs to our operations for the rst time in more than 75 years without the bene t of holding fee timberland was not enough, we also encountered one of the most severe winter seasons in recent memory followed by an early hot summer that prolonged one of the worst re seasons on record, resulting in lengthy logging restrictions and a domestic log market in which prices kept increasing throughout the year. The Log Lines Southern Oregon & Willamette Valley region average price for a Douglas Fir #2 sawmill log increased 15% year over year and the Douglas Fir #3 sawmill log increased 17% year over year, our two primary log sorts.
in the market. As shown in the Random Lengths Framing Lumber Composite graph, lumber prices took a big jump in the rst 6 weeks, then bounced
Considering the uniqueness of the way the timber department was tested during the year, they did a remarkable job of keeping operations supplied with logs. Rosboro harvested 37.7 mmbf o of timber contracts with the US Forest Service, the Bureau of Land Management, industrial timberland owners and private timberland owners, which was 2.7 mmbf more than
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