SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported the first quarter results of 2023.
During the quarter, the company reported earnings of $(42) million, or $(0.52) per diluted share. The adjusted EBITDA stood at $58 million, accounting for 4% of the sales of $1.627 billion.
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The lumber segment adjusted EBITDA was $0 million. The company’s North America Engineered Wood Products (EWP) segment reported adjusted EBITDA of $31 million, which comprises of $15 million of inventory write-downs. Meantime, the Pulp & Paper segment recorded adjusted EBITDA of $7 million. Also, Europe Engineered Wood Products segment adjusted EBITDA totalled $20 million.
Commenting on the results, Ray Ferris, President and CEO, West Fraser said that the higher mortgage rates continued to moderate new home construction activity in the U.S in the first quarter. The company faced challenging demand markets. The most impacted were the Lumber and North America EWP businesses. Meantime, the positive EBITDA contributions from Europe Engineered Wood Panels and Pulp & Paper segments helped to partly offset the weakness in North American residential construction markets, he added.
West Fraser expects the demand environment to become more favourable over the medium to longer term.
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