18:39:43 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



West Fraser Timber Co Ltd
Symbol WFT
Shares Issued 83,081,165
Close 2014-07-15 C$ 50.30
Market Cap C$ 4,178,982,600
Recent Sedar Documents

West Fraser Timber earns $74-million in Q2

2014-07-16 17:18 ET - News Release

Mr. Larry Hughes reports

WEST FRASER ("WFT") ANNOUNCES SECOND QUARTER RESULTS

West Fraser Timber Co. Ltd. had earnings of $74-million, or 87 cents per share, on sales of $1,053-million in the second quarter of 2014.

Operational results

In the quarter the company's lumber operations generated operating earnings of $81-million (first quarter: $79-million) and EBITDA (earnings before interest, taxes, depreciation and amortization) of $106-million (first quarter: $107-million). The results were substantially similar to the previous quarter as significantly higher shipments were offset by lower prices.

In the quarter the company's panel segment generated operating earnings of $10-million (first quarter: $7-million) and EBITDA of $13-million (first quarter: $11-million) as plywood prices and shipments improved.

In the quarter the company's pulp and paper operations generated operating earnings of $19-million (first quarter: $22-million) and EBITDA of $30-million (first quarter: $32-million). Although shipments were higher and prices were relatively similar to the previous quarter, increased costs contributed to the decline in earnings.

Outlook

Shipments of lumber increased sharply in the second quarter after the settlement of the 28-day strike at the port of Vancouver that occurred during March, and both SPF and SYP prices declined. As the strike-related lumber inventory backlog continues to clear and U.S. housing continues to gradually recover, lumber prices have stabilized and shown some improvement in early July. However, the company expects them to remain fairly volatile. Log costs are expected to trend higher in British Columbia as competition for purchased wood increases, but lumber productivity and cost reductions throughout the company's sawmills are expected to continue to improve over the next few quarters as it completes various major capital projects.

"We've expanded our lumber capacity with our acquisition of two sawmills in the second quarter and one in the first," said Ted Seraphim, West Fraser Timber's president and chief executive officer. "We are pleased with the integration of those operations and the contributions they will continue to make to our earnings."

Management's discussion & analysis

The company's management's discussion and analysis is available on the company's website and on SEDAR under the company's profile.

Conference call

Investors are invited to listen to the quarterly conference call on Thursday, July 17, 2014, at 8:30 a.m. (Pacific Time)(11:30 a.m. (Eastern Time)) by dialling 1-800-769-8320 (toll-free in North America). The call may also be accessed through the company's website.

   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS 
               (in millions of dollars, except where indicated)       
                                                                            
                                        April 1 to June 30,  Jan. 1 to June 30, 
                                             2014      2013      2014      2013 
                                                                            
Sales                                     $ 1,053   $   900   $ 1,862   $ 1,763 
Costs and expenses                                                          
Cost of products sold                         709       576     1,225     1,117 
Freight and other distribution costs          158       126       267       243 
Amortization                                   40        37        82        77 
Selling, general and administration            38        32        73        64 
Equity-based compensation                       2       (12)        3        20 
                                          -------   -------   -------   -------
                                              947       759     1,650     1,521 
                                          -------   -------   -------   -------
Operating earnings                            106       141       212       242 
Finance (expense)                              (8)       (7)      (14)      (14)
Exchange gain (loss) on long-term debt         12       (11)       (1)      (17)
Other income (expense)                         (7)       10         6         7 
                                          -------   -------   -------   -------
Earnings before tax                           103       133       203       218 
Tax provision                                 (29)      (24)      (57)      (42)
                                          -------   -------   -------   -------
Earnings                                  $    74   $   109   $   146   $   176 
                                          -------   -------   -------   -------
Earnings per share (dollars)                                                                   
Basic                                     $  0.87   $  1.27   $  1.71   $  2.06 
Diluted                                   $  0.87   $  1.12   $  1.66   $  2.06 
Comprehensive earnings                                                      
Earnings                                  $    74   $   109   $   146   $   176 
Other comprehensive earnings                                                
Translation gain (loss) on 
foreign operations                            (16)       11         1        16 
Actuarial gain (loss) on 
postretirement benefits                       (45)       58       (49)        6 
                                          -------   -------   -------   -------
Comprehensive earnings                    $    13   $   178   $    98   $   198 
                                  

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