West Fraser Reported Robust Q3, Despite Several Challenges

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. reported its third quarter 2021 results.  

The company reported net sales of $2.358 billion and earnings of $460 million. The adjusted EBITDA stood at $786 million. The Europe EWP segment witnessed record adjusted EBITDA of $900 million. West Fraser finished the quarter with liquidity of $3.130 billion, while the net debt to total capital ratio was 27%.

According to company press release, the lumber segment operating earnings for the quarter was $52 million. The adjusted segment EBITDA dropped to $93 million, mainly due to lower lumber prices, reduced shipment volumes and higher duty rates. It was also impacted by higher manufacturing costs on account of input cost inflation and increased employee costs in the U.S. South. Meantime, the pulp and paper segment operating earnings and adjusted EBITDA were negative $15 million and negative $7 million respectively.

The available liquidity declined marginally to $3,130 million at the end of the third quarter.

Commenting on the results, Ray Ferris, President and CEO, West Fraser said that Q3 2021 was one of the company’s strongest quarters ever, despite a series of challenges. The demand for a number of its products softened during the quarter, he noted.