Report from The President                                             Exhibit 19

Dear WTD Shareholders:

         For our second  fiscal  quarter  which  ended  October  31,  1997,  WTD
Industries  incurred a net loss of $198,000  or $.07 per share,  compared to net
income  of  $3,001,000  or $.21 per share  for the same  period in 1996.  Second
quarter net sales were $67.4 million,  down 15 percent from the $79.2 million in
the comparable period last year.

         For the six months  ended  October 31, 1997,  the Company  reported net
income of $1,746,000 or $.05 per share,  compared to net income of $5,095,000 or
$.35 per share for the same period last year.  Net sales were $136.3 million for
the six months compared to $146.2 million in the prior year, down 7 percent.

         Lumber prices are  substantially  weaker than they were during the same
quarter a year ago. Although lumber usage remains strong, reflecting the healthy
economy and reasonable and stable  interest  rates,  the domestic  lumber market
still  suffers  from  overproduction,  brought on in part by  diminished  export
lumber and log markets.

         Also  negatively  impacting  our  second  quarter  sales  has  been the
inability of the Union Pacific  Railroad to provide  adequate service to WTD and
its other customers.  We have been able to make alternate shipping  arrangements
in many  instances,  but  shipments  are  lower  than  ordinary  because  of the
inability to get enough railcars to satisfy demand.

         The labor  strike  at the  Company's  hardwood  mill  located  in South
Bend/Raymond,  Washington,  which  commenced  on October  29,  1997,  remains in
effect.  The Company has continued to operate the facility,  although at a lower
rate of production,  with employees  that are not  participating  in the strike,
replacement  workers,  and salaried  personnel.  In June of 1997 the Company had
reached an  impasse  in  negotiations  with the local  Woodworkers  Union and in
October the Company withdrew recognition of the Union as the bargaining agent of
the employees  based on  notification by a majority of the employees at the mill
that  they no  longer  wanted  to be  represented  by the  Union.  No other  WTD
employees are  represented  by this Union.  No meetings with the Union have been
scheduled.

         On the positive side, chip prices are now up substantially  compared to
a year ago. We continue to make progress  developing  our  GREENWELD(R)  line of
business. We have now signed up our second licensee in the United States and our
fingerjoint  facility has received  approval for horizontal  applications in the
United States for lumber made with the GREENWELD(R)  process. We are now focused
on obtaining the appropriate approvals for horizontal applications in Canada.

         During our Annual Meeting of Shareholders  held on October 7, 1997, all
three proposals voted on were approved.  The recommended  slate of directors was
reelected,  Moss Adams was ratified as independent  auditors,  and voting rights
for certain  control  shares  held by Quinault  Corporation  were  restored.  We
appreciate your continued support.



                                                     Bruce L. Engel
                                                     President


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