Exhibit 19
Report from The President

Dear WTD Shareholders:

         For our  third  fiscal  quarter  which  ended  January  31,  1998,  WTD
Industries  incurred a net loss of $3,645,000  or $.38 per share,  compared to a
net income of  $449,000  or a $.01 per share  loss for the same  period in 1997.
Third  quarter  net sales were  $56.0  million,  down 13 percent  from the $64.5
million net sales in the comparable period last year.

         For the nine months ended January 31, 1998, the Company  reported a net
loss of  $1,899,000  or $.33 per share,  compared to net income of $5,544,000 or
$.34 per share  (diluted)  during the same period  last year.  Sales were $192.2
million for the nine months,  compared to $210.6 million in the comparable prior
year period, a decrease of nine percent.

         During the entire third  quarter,  we suffered  from  declining  lumber
prices that were  significantly  below prices during the same period last fiscal
year.

         The steep  lumber  market  decline  was  fueled  in part by  continuing
overproduction.  The export  lumber market has been  negatively  impacted by the
Asian financial  crisis and some  manufacturers  that had been producing for the
export market  instead  diverted  production to the U.S.  market,  adding to the
available  lumber supply.  For example,  at the end of January 1998,  prices for
green  Douglas  fir 2 x 10 lumber  was off $177 per  thousand  board  feet or 34
percent compared to last year.

         Additionally,  demand from  California,  a major segment of our market,
has been lower  than  usual due to the  extraordinarily  wet  weather  which has
delayed construction projects.

         Although  during the third quarter we saw a gradual  improvement in the
shortage of rail cars, the  transportation of lumber is still a problem due to a
recent worsening of the Union Pacific's rail traffic congestion.

         On the positive side, chip prices remain up substantially compared to a
year ago. We have seen,  very  recently,  significant  production  curtailments,
particularly in British  Columbia,  Canada.  Since the end of our third quarter,
some  lumber  prices  have  increased  as  winter  weather  begins  to wane  and
construction  increases.  Log supply is adequate and log prices have softened as
seasonal log flow increases occur.

         The strike  which  existed  during the third  quarter at the  Company's
hardwood mill in Raymond and South Bend, Washington was abandoned on January 26,
1998, after the Union learned of preliminary  findings by the regional office of
the  National  Labor   Relations  Board  that  the  Union's  claim  of  improper
decertification by the Company was not supported by the evidence.  The Union has
stated its intention to continue to seek  representation of the employees at the
hardwood  facility.  This union  currently does not represent any WTD employees.
During  the  strike  the  Company  operated  the  facility  at a  lower  rate of
production  and incurred  additional  security costs which  negatively  impacted
third quarter results.

         We hope that  spring  will  bring  stronger  lumber  prices  and better
operating conditions.



                                                        Bruce L. Engel
                                                        President


  

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