VANCOUVER, B.C., October 26, 2022 – West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the third quarter results of 2022 ("Q3-22"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
Third Quarter Highlights
- Sales of $2.088 billion and earnings of $216 million, or $2.50 per diluted share
- Adjusted EBITDA1 of $426 million, representing 20% of sales
- Lumber segment Adjusted EBITDA1 of $160 million, including $81 million of export duty recovery
- North America Engineered Wood Products (“NA EWP”) segment Adjusted EBITDA1 of $215 million
- Pulp & Paper segment Adjusted EBITDA1 of $29 million
- Europe Engineered Wood Products (“Europe EWP”) segment Adjusted EBITDA1 of $24 million
- Repurchased 2.224 million shares for aggregate consideration of $182 million
- Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
“West Fraser generated solid financial results in the third quarter of 2022 and returned more than $200 million of capital to shareholders through share repurchases and a quarterly dividend. Overall, West Fraser continues to benefit from product and geographic diversity and a track record of disciplined capital allocation,” said Ray Ferris, West Fraser’s President & CEO. “We saw considerable improvement in the transportation challenges that had impacted our business earlier this year. However, ongoing inflationary cost pressures and slowing demand for many of our key products impacted our financial results this quarter. Our team continues to prioritize financial discipline as we navigate near-term market uncertainties to ensure we are best positioned to take advantage of the more favourable demand markets we envision over the medium and longer term.”
“To that end, with the support of the local community, we are pleased to announce the planned addition of a new state-of-the-art lumber manufacturing complex with the brownfield development at our Henderson, Texas facility. This project is another important step in our strategy of optimizing our lumber portfolio by continuously driving cost efficiency through deployment of advanced technologies utilized by our skilled and engaged teams.”