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Rubber and Wood February 14, 2019 08:30:16 AM

West Fraser Lumber Shipments Dropped 10% in Q4 '18

Paul Ploumis
ScrapMonster Author
The company’s lumber segment reported operating loss of $22 million during the fourth quarter of 2018.

West Fraser Lumber Shipments Dropped 10% in Q4 '18

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. has reported results for the fourth quarter and full year of 2018. Despite challenges posed by soft lumber markets and difficult weather conditions, the company managed to report the highest EBITDA in the company’s history.

The quarterly sales totaled $1.274 billion in Q4 ’18. The company posted earnings of $29 million or $0.42 per share. The adjusted earnings and adjusted EBITDA totaled $43 million and $120 million respectively. Meantime, the full-year 2018 sales surged higher by 19% over the previous year to total $6.118 billion. West Fraser reported adjusted earnings and adjusted EBITDA for the entire year 2018 of $945 million and $1.538 billion respectively.

The company’s lumber segment reported operating loss of $22 million during the fourth quarter of 2018. This was mainly on account of a combination of negative factors including significantly lower lumber shipments, declining shipment volumes and rising log costs in the B.C region along with persistent bad weather conditions in the U.S. South. Incidentally, the lumber shipments recorded a decline of around 10% from the prior quarter.

The panel segment operating earnings declined sharply from $31 million in Q3 ’18 to $4 million in fourth quarter of 2018. Also, the pulp and paper segment reported significant decline in operating earnings from $65 million to $36 million quarter-on-quarter. Pulp prices declined in Q4 ’18.

Commenting on the outlook for 2019, Ted Seraphim, CEO of West Fraser stated that the lumber market recovery in early 2019 is an encouraging sign. The company will continue to focus on activities that generate maximum returns for its stakeholders.

 

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