West Fraser Announces Third Quarter 2024 Results

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VANCOUVER, BC, Oct. 23, 2024 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX and NYSE: WFG) reported today the third quarter results of 2024 ("Q3-24"). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.

Third Quarter Highlights

  • Sales of $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 EBITDA1 of $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

"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 Sean McLaren, West Fraser's President and CEO.

"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."

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.

Results Summary

Third quarter sales were $1.437 billion, compared to $1.705 billion in the second quarter of 2024. Third quarter earnings were $(83) million, or $(1.03) per diluted share, compared to $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.

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