VANCOUVER, BC, July 27, 2022 - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the second quarter results of 2022 ("Q2 2022").
All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
Second Quarter Highlights
- Sales of $2.887 billion and earnings of $762 million, or $7.59 per diluted share
- Adjusted EBITDA1 of $1,124 million, representing 39% of sales
- Lumber segment Adjusted EBITDA1 of $449 million
- North America Engineered Wood Products ("NA EWP") segment Adjusted EBITDA1 of $623 million
- Pulp & Paper segment Adjusted EBITDA1 of negative $3 million
- Europe Engineered Wood Products ("Europe EWP") segment Adjusted EBITDA1 of $54 million
- Returned $1.475 billion of capital to shareholders through the repurchase of approximately 16.0 million West Fraser common shares
1. Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Specified Financial Measures” section of this document for more information on this measure.
"West Fraser generated strong financial results again in the second quarter of 2022, supporting the return of more than $1.5 billion of capital to shareholders through share repurchases and our quarterly dividend," said Ray Ferris, West Fraser's President & CEO. "The acute transportation challenges facing the company in recent quarters showed signs of improvement in the second quarter, in large part because of the dedication and determination of our people. Even so, our ability to ship products in a timely manner to meet the demands of our customers is not where it needs to be and therefore transportation and logistics remain key focus areas for the company. Inflationary cost pressures persist across our various supply chains, although an environment of strong demand and above-average product pricing has helped to absorb most of these cost increases. And while we recognize the risks of near-term macro headwinds, including rising mortgage rates and elevated energy prices, we also note that demand for our products has been resilient, and we continue to see favourable long-term market fundamentals in support of our wood building products business."
"In 2021, we took important steps toward becoming a sustainability leader, and today we are sharing our progress with the release of our 2021 Sustainability Report," said Ferris. "We understand the importance, and necessity, of doing the right thing for the environment, our communities and our employees while sustainably and profitably growing our business. We are proud of our past, but even more excited about our future."
Second quarter sales were $2.887 billion, compared to $3.110 billion in the first quarter of 2022. Second quarter earnings were $762 million, or $7.59 per diluted share, compared to $1,090 million, or $10.25 per diluted share in the first quarter of 2022. Second quarter Adjusted EBITDA1 was $1,124 million compared to $1,592 million in the first quarter of 2022.
Source: West Fraser
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