West Fraser Timber Co. Ltd. reported a more than US$250 million decline in sales quarter-over-quarter.

West Fraser reports in its new Q3 results sales were $1.437 billion, compared to $1.705 billion in the second quarter of 2024 — a $268 million, or 16 per cent drop.

The third quarter loss totalled $83 million, or $1.03 per diluted share, compared to earning of $105 million, or $1.20 per diluted share in the second quarter of 2024.

Third quarter Adjusted EBITDA was $62 million compared to $272 million in the second quarter of 2024.

“The benefits of our product diversification strategy were apparent once again in the third quarter of 2024, a period marked by uneven demand across our key products.

“North American OSB, plywood and other engineered wood products continued to experience healthy demand and the lumber segment saw unexpected improvement in SPF demand, while SYP markets remained challenging, in part reflecting ongoing softness in repair and remodelling markets,” said said West Fraser president Sean McLaren in a press release.

“The team at West Fraser has been actively improving the cost position across our portfolio of mills, and in particular we continue to make progress within our U.S. South lumber platform.

“We expect to continue working diligently to execute on our strategy of investing capital to modernize mills and lower costs, helping build a more resilient organization.

“We will also continue to return excess capital to shareholders when it is prudent to do so, maintaining our strong balance sheet that continues to allow West Fraser the financial flexibility to take advantage of opportunities that fit our long-term strategy.”

Third Quarter Highlights 

Sales of US$1.437 billion and earnings of $(83) million, or $(1.03) per diluted share
Adjusted EBITDA1 of $62 million, representing 4% of sales
Lumber segment Adjusted EBITDA1 of $(62) million, including $32 million of export duty expense attributable to the finalization of AR5
North America Engineered Wood Products (“NA EWP”) segment Adjusted EBITDA1of $121 million
Pulp & Paper segment Adjusted EBITDA1 of $2 million
Europe Engineered Wood Products (“Europe EWP”) segment Adjusted EBITDA1 of $1 million
Repurchased 446,460 shares for aggregate consideration of $35 million
Announced indefinite curtailment of operations at lumber mill in Lake Butler, Florida
Subsequent to quarter-end, repaid principal and accrued interest on $300 million senior notes on maturity with cash on hand

Source: westfraser.com