West Fraser Timber announces 1Q 2017 results

Photo: West Fraser

West Fraser Timber Co. Ltd. reports 1Q 2017 earnings of $123 million, up from $42 million a year ago, on sales up 10.4% to $1.19 billion.

Lumber segment generated operating earnings of $152 million (4Q 2016 - $107 million) and Adjusted EBITDA of $191 million (4Q 2016 - $144 million). Improved product pricing was the primary driver of improved results. SPF shipments were lower than production due in part to weather-related transportation delays.

Panels segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $12 million (4Q 2016 - $17 million) and Adjusted EBITDA of $15 million (4Q 2016 - $20 million). Improved product pricing was offset by increased costs associated with its WestPine MDF plant restart.

Pulp & paper segment generated operating earnings of $31 million (4Q 2016 - $20 million) and Adjusted EBITDA of $40 million (4Q 2016 - $30 million). Higher pulp prices, higher BCTMP shipments and lower NBSK production costs were the primary drivers of improved results. Both Hinton Pulp and Slave Lake Pulp set quarterly production records.

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.