WFP Posted Subdued Results in Fourth Quarter 2019

SEATTLE (Scrap Monster): Vancouver, B.C.-headquartered Western Forest Products (WFP) reported negative adjusted EBITDA of $18.1 million in the fourth quarter of 2019. The results were impacted by the ongoing strike action by USW workers as well as weak lumber markets.

The company reported net loss of $29.2 million or $0.09 per diluted share in Q4 last year, compared with net income of $5.3 million or $0.02 per dilutes share during the corresponding quarter in 2018. The operating loss prior to restructuring and other items was $46.7 million in the full year 2019, when matched with operating income of $103.4 million in 2018.

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WFP’s lumber revenue in the fourth quarter recorded substantial decline by 71.4% over the prior year quarter to total $66.1 million. Meantime, lumber shipment volumes collapsed by more than 80% year-on-year. The log revenue of $12.1 million was down by nearly 67% from the same period last year.

The annual lumber revenue dipped by 34% to $628.3 million in 2019. The log revenue dropped by 10% to total $144 million during the previous year. The lumber production was down by 43.2% year-on-year to 491 million board feet. Also, log production registered 49% year-on-year decline to total 2.214 million cubic metres.