West Fraser Posted Robust Results Amidst Ongoing Challenges
The company’s lumber segment adjusted EBITDA totalled $796 million during the quarter.
SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd reported first quarter results of 2022. The company posted strong results, despite ongoing challenges, including transportation issues posed by Canadian winters and market disruptions on account of ongoing Russia-Ukraine conflict.
It reported sales of $3.110 billion and earnings of $1,090 million, or $10.25 per diluted share. The company reported adjusted EBITDA of $1,592 million, accounting for 51% of total sales.
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The company’s lumber segment adjusted EBITDA totalled $796 million during the quarter. The North America Engineered Wood Products (NA EWP) segment reported adjusted EBITDA of $730 million, while the adjusted EBITDA of Europe Engineered Wood Products (Europe EWP) segment stood at $78 million. Meantime, the company’s Pulp and Paper segment posted adjusted EBITDA of negative $15 million.
Commenting on the results, Ray Ferris, President and CEO, West Fraser said that the company continued to manage significant transportation challenges and the resulting mill disruptions that commenced late last year in B.C. and that were exacerbated in the first quarter of 2022. The continued strong demand for its products offset the near-term constraints to North American supply.