Vancouver, B.C. - West Fraser Timber Co. Ltd. (“West Fraser” or the “Company”) (TSX and NYSE: WFG) reported today the third quarter results of 2021. All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
The results of operations presented and discussed below include those of Norbord from February 1, 2021, the date of the completion of the acquisition of Norbord.
Third Quarter Highlights
- Sales of $2.358 billion and earnings of $460 million, or 20% of sales
- Adjusted EBITDA of $786 million, representing 33% of sales
- Record Adjusted EBITDA of $90 million for Europe EWP segment
- Repurchased $100 million of WFG Common shares for cancellation under normal course issuer bid (“NCIB”)
- Completed CAD$1.0 billion substantial issuer bid (“SIB”)
- Finished the quarter with liquidity at $3.130 billion and net debt to total capital ratio of (27)%
- Hosted virtual Analyst & Investor Event
- Published 2020 Sustainability Report
- Announced agreement to acquire Angelina Forest Products lumber mill for approximately $300 million and Georgia Pacific OSB mill for approximately $280 million, both subsequent to quarter-end
"Despite a number of challenges, the third quarter of 2021 was one of West Fraser's strongest quarter ever," said Ray Ferris, West Fraser's President & CEO. "We operated responsibly across the business, managing the complexities of transportation and mill disruptions in the face of higher duties and B.C. stumpage and softer demand in a cyclical commodity environment."
"The benefits of product and geographic diversification following the Norbord acquisition were especially evident this quarter in the relative strength of our North American OSB results and the record performance from Europe EWP, where Adjusted EBITDA more than doubled quarter-over-quarter. While demand for a number of our products softened in the third quarter, fundamentals for housing remain favourable and we are seeing early signs of a recovery in repair and remodelling demand. As always, we remain focused on the health and safety of our employees and will manage the business to be flexible to meet the changing needs of our customers."
Source: West Fraser