WFP Announces 9% Surge in Lumber Output, Shipment in Q4 '18

SEATTLE (Scrap Monster): Vancouver, B.C.-based Western Forest Products Inc. (WFP) announced fourth quarter and fiscal 2018 results. The company reported 9% surge in lumber production and shipments during Q4 ’18. The company reported adjusted EBITDA of $18.0 million. The benefits on account of higher specialty lumber prices and increased lumber shipments were offset by incremental lumber export duty, added stumpage costs and lower commodity lumber prices.

The company reported net income of $5.3 million or $0.02 per diluted share during the quarter. The revenue for the quarter stood at $284.8 million, as compared to $283.1 million in Q4 ’17. The lumber revenue recorded notable jump by 11% over the previous year to total $230.9 million, whereas lumber shipments were up by 9%. Specialty lumber represented 49% of the total quarterly shipments. Lumber production at 200 million board feet was 9% higher than fourth quarter of 2017.

Meantime, the Q4 ’18 log revenue witnessed sharp 36% decline to $36.2 million. Log production reported year-on-year increase by 3% to 1.135 million cubic metres.

For full year 2018, WFP reported adjusted EBITDA of $143.5 million. Net income was $69.2 million, upon comparison with $74.4 million in 2017. Lumber revenue increased by 11% during the year to $952.9 million. The average lumber price realizations were 6% higher when compared to 2017. Lumber production climbed higher by 9% over 2017 to total 864 million board feet. On the contrary, log revenue registered huge decline by 26% year-on-year to $160 million. Log shipments too were down by 9%.