Report from the President


Dear WTD Shareholders:

     Your company's first quarter for fiscal 1995 was a satisfying
one in many respects.

     WTD Industries was able to employ successfully its primary
operating philosophy, adjusting raw material pricing and mill
operating posture to handle adverse lumber market conditions, and
make its fourth consecutive quarterly profit.

    Though the profit was a modest $.05 per share, it was a strong
contrast to the first quarter 1994 loss of $.23 per share, against
a somewhat more adverse lumber market last year.

    The quarterly result also raised our trailing 12-month
cumulative earnings to $8,959,000 or $.63 per common share after
payment of preferred dividends.

     We were able to work our way to profit through this year's
late spring and early summer lumber market downturn for two
reasons.  Better and more consistent log supplies allowed for
quicker adjustment of raw material costs to adverse lumber market
swings.  Continued focus on improving mill efficiency allowed for
better profitability against narrow profit margin market
conditions.

     Looking ahead, we currently see an improved and more stable
lumber market, relatively stable log supply and more mill
efficiency gains from mill maintenance and capital projects and
product/operations programs.  We are well along on major projects
at two of our stud mills that will allow us to kiln-dry an
increased percentage of our lumber production.  This will improve
our flexibility in utilizing different log species to satisfy
changes in lumber buying preferences.

     Lumber usage remains strong despite recent increases in
interest rates.

     We are off to a better start this year and it is our goal to
improve our annual results for fiscal 1995 over last year.



                                       Bruce L. Engel
                                       President