West Fraser's Adjusted EBITDA Doubled in Q1 2021
Rubber and Wood | 2021-05-11 22:29:06
Meantime, the Europe EWP segment reported operating loss of $6 million during the quarter.
By Paul Ploumis
SEATTLE (Scrap Monster): Vancouver, B.C.-based West Fraser Timber Co. Ltd. reported results of Q1 2021.
The company’s sales skyrocketed 81% from the previous quarter to $2.343 billion. The earnings too were up sharply from $282 million in the prior quarter to $665 million in first quarter this year. The adjusted EBITDA more than doubled from $453 million to $1.008 billion over the sequential quarter. The earnings per share (EPS) of $6.96 were significantly higher, compared to $4.09 in Q4 2020.
West Fraser’s lumber segment generated operating earnings of $607 million and adjusted EBITDA of $646 million. The newly formed North America Engineered Wood Products (NA EWP) segment operating earnings totalled $299 million in the quarter, whereas the adjusted EBITDA stood at $353 million. The operating earnings and adjusted EBITDA by its Pulp and Paper segment were $2 million and $11 million respectively. Meantime, the Europe EWP segment reported operating loss of $6 million during the quarter.
The company finished the quarter with liquidity at $2.551 billion.
The company expects robust demand for European products. The fiber costs for its B.C., Alberta, and Ontario lumber and EWP operations are expected to remain elevated. It expects to maximise its capacity utilization in lumber, OSB and plywood operations.
YOU MAY ALSO BE INTERESTED IN:
