“In the fourth quarter of 2022, we faced a challenging demand market as rising interest rates dampened new home construction activity in the U.S., most acutely impacting our Lumber business.
Despite these market conditions, West Fraser delivered another strong year of performance in 2022, recording more than $3.2 billion of adjusted EBITDA for the period and returning nearly $2.1 billion of capital to shareholders through share repurchases and dividends. We continued to benefit from our product and geographic diversification, particularly in the fourth quarter when our North American and European Engineered Wood Panels and Pulp & Paper segments each made significant positive EBITDA contributions,” said Ray Ferris, West Fraser’s President & CEO.
"Over the near term, we anticipate that the business will continue to experience moderating costs, although we expect continued labour constraints and potentially muted product demand as housing affordability and demand find a new equilibrium. Importantly, the West Fraser team has a proven track record of effectively managing through market cycles while maintaining a strong balance sheet, reinvesting in our operations and returning capital to shareholders. As we execute on our core strategy of being a low-cost producer in the key wood building products markets we serve, we will continue to prioritize financial discipline to ensure we capitalize on the favourable demand environment we expect over the medium and longer term.”
VANCOUVER, B.C., February 14, 2023 – West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the fourth quarter results of 2022 ("Q4-22"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
Fourth Quarter Highlights
- Sales of $1.615 billion and earnings of $(94) million, or $(1.13) per diluted share
- Adjusted EBITDA1 of $70 million, representing 4% of sales
- Lumber segment Adjusted EBITDA1 of $(77) million, including $39 million of inventory write-downs
- North America Engineered Wood Products (“NA EWP”) segment Adjusted EBITDA1 of $109 million
- Pulp & Paper segment Adjusted EBITDA1 of $15 million
- Europe Engineered Wood Products (“Europe EWP”) segment Adjusted EBITDA1 of $30 million
- Repurchased 1.557 million shares for aggregate consideration of $117 million
Annual Highlights
- Sales of $9.701 billion and earnings of $1.975 billion, or $20.86 per diluted share
- Adjusted EBITDA1 of $3.212 billion, representing 33% of sales
- Lumber segment Adjusted EBITDA1 of $1.328 billion
- NA EWP segment Adjusted EBITDA1 of $1.677 billion
- Pulp & Paper segment Adjusted EBITDA1 of $26 million
- Europe EWP segment Adjusted EBITDA1 of $186 million
- Repurchased 22.373 million shares for aggregate consideration of $1.990 billion
Source: West Fraser
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