Norbord Acquisition Boosted West Fraser Profits

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported second quarter results of 2021. The company reported notable surge in profits, with revenues more than quadrupling during the quarter. The results include those of Norbord, with effect from the completion of acquisition on February 1^st, 2021.

The quarterly sales surged higher by 61% from the prior quarter to $3.779 billion. The earnings too witnessed surge from $665 million in the prior quarter to $1,488 million in Q2 this year. Quarter-on-quarter, the adjusted EBITDA reported increase from $1.008 billion to $2.160 billion. West Fraser finished the quarter with $3.392 billion of liquidity, said the company press release.

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The lumber segment generated operating earnings of $955 million during the quarter, compared with $607 million in the prior quarter. The adjusted EBITDA, at $994 million, was mainly driven by higher lumber prices and robust shipment volumes. Meantime, the pulp and paper segment generated operating earnings and adjusted EBITDA of $17 million and $25 million respectively.

The lumber exports are likely to be affected by competition from supplies in other countries, current North American pricing and wildfire, the company said in its outlook for future.