West Fraser Declared Robust Q1 Results

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported the first quarter results of 2024.

The company reported sales of $1.627 billion and earnings of $35 million, or $0.42 per diluted share. West Fraser had reported sales of $1.514 billion in the fourth quarter of 2023. The reported adjusted EBITDA stood at $200 million, accounting for 12% of sales.

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Segment-wise, the adjusted EBITDA of the lumber segment was $10 million in Q1 2024. The North America Engineered Wood Products (NA EWP) adjusted EBITDA during the quarter was $188 million. Meantime, the adjusted EBITDA of the Pulp & Paper Segment and Europe Engineered Wood Products (Europe EWP) segment stood at $3 million and $(1) million, said the company news release.

The cash and short-term investments recorded decline to $711 million during the quarter, compared with $900 million during the sequential quarter. The capital expenditure during the quarter was $122 million.

West Fraser expects total lumber shipments in 2024 to remain largely similar to 2023 levels. The OSB shipments from the company’s NA EWP segment is also expected to be consistent with 2023 levels. In Europe EWP segment, the near-term demand weakness for panel products is likely to persist.