VANCOUVER, B.C., February 14, 2024 – West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the fourth quarter results of 2023 ("Q4-23").
All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
Fourth Quarter Highlights
- Sales of $1.514 billion and loss of $153 million, or $(1.87) per diluted share
- Adjusted EBITDA1 of $97 million, representing 6% of sales
- Lumber segment Adjusted EBITDA1 of $(51) million
- North America Engineered Wood Products (“NA EWP”) segment Adjusted EBITDA1 of $143 million
- Pulp & Paper segment Adjusted EBITDA1 of $2 million
- Europe Engineered Wood Products (“Europe EWP”) segment Adjusted EBITDA1 of $3 million
- Repurchased 1.495 million shares for aggregate consideration of $104 million
- Completed acquisition of Spray Lake Sawmills located in Cochrane, Alberta and associated timber tenures
Annual Highlights
- Sales of $6.454 billion and loss of $167 million, or $(2.01) per diluted share
- Adjusted EBITDA1 of $561 million, representing 9% of sales
- Lumber segment Adjusted EBITDA1 of $2 million, including $62 million of export duty recovery attributable to finalization of AR4
- NA EWP segment Adjusted EBITDA1 of $589 million
- Pulp & Paper segment Adjusted EBITDA1 of $(77) million
- Europe EWP segment Adjusted EBITDA1 of $46 million
- Repurchased 1.835 million shares for aggregate consideration of $129 million
Subsequent to Quarter End
- Effective January 1, 2024, Sean McLaren succeeded Ray Ferris as President and Chief Executive Officer and joined the Board of Directors
- Announced permanent closure of lumber mill in Maxville, Florida and indefinite curtailment of operations at lumber mill in Huttig, Arkansas
- Announced permanent closure of lumber mill in Fraser Lake, B.C., following an orderly wind-down
- Completed sale of Hinton pulp mill
Sean McLaren“The fourth quarter of 2023 saw continued weakness in demand for our North American lumber and European panel products. In contrast, demand for our North American OSB, plywood and other engineered products experienced resilient demand as new home construction markets were surprisingly robust with mortgage rates showing signs of stabilizing after moving meaningfully higher earlier in the year,” said Sean McLaren, West Fraser’s President and CEO. "On balance, while 2023 was a challenging year financially, it was also a period marked by significant progress in our ongoing portfolio optimization strategy, which we advanced through acquisitions, announced divestitures, mill curtailments and major capital investments."
"Although demand markets face a measure of uncertainty in the near term, we will continue to look for opportunities that improve West Fraser over the longer term. We have been prudent and purposeful in preparing the Company for what may lie ahead as we transition into 2024. And we believe our people and our culture combined with our diversified manufacturing platform and financial flexibility will continue to provide competitive advantages that are important to the business and our stakeholders, and that will allow us to continue to successfully execute our business strategy.”
Source: West Fraser
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