Industry Reports

Deutsche Bank Reports Summaries

080404 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (4/4/08)

Deutsche Bank - Equity Research

* International Paper going to Indonesia? IP reportedly exploring investment of up to $4B for plantations & mills. No timeframe specified - we'd assume 10+ yrs. Decision at least 6 months away.

* Weyerhaeuser will idle Saskatchewan OSB mill. We're amazed that more mills haven't been idled. Consider the economics: (1) OSB prices near cash-cost, (2) C$ near parity with the US$, (3) rising fiber costs, and (4) high freight costs.

* Plum Creek cut guidance for 1Q08 and FY08, and DB trimmed estimates accordingly: 1Q & FY08 go from $0.29 & $1.30 to $0.20 & $1.20 respectively. While negative news on the margin, we would rather see PCL too cautious than too aggressive during this downturn.