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West Fraser shares fourth quarter and annual results for 2021


February 22, 2022
By P&PC Staff/West Fraser

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West Fraser Timber Co., recently shared its annual and fourth-quarter results for 2021.

The statement released by the company shows results in U.S. dollar amounts and includes results of operations of Norbord from February 1, 2021, and of Angelina Forest Products from December 1, 2021.

Following are the highlights from the fourth quarter of 2021:

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  • Sales of $2.038 billion and earnings of $334 million, or $3.13 per diluted share
  • Adjusted EBITDA of $615 million, representing 30 percent of sales
  • Lumber segment adjusted EBITDA of $240 million
  • North America Engineered Wood Products segment adjusted EBITDA of $343 million
  • Pulp and paper segment adjusted EBITDA of negative $14 million
  • Europe Engineered Wood Products segment adjusted EBITDA of $61 million

Annual highlights  for 2021 are as follows:

  • Sales of $10.518 billion and earnings of $2.947 billion, or $27.03 per diluted share
  • Adjusted EBITDA of $4.569 billion, representing 43 percent of sales
  • Lumber segment adjusted EBITDA of $1.973 billion
  • North America Engineered Wood Products segment adjusted EBITDA of $2.414 billion
  • Pulp and paper segment adjusted EBITDA of $15 million
  • Europe Engineered Wood Products segment adjusted EBITDA of $201 million

“I am proud of the efforts of the West Fraser team, highlighted by the integration of two leading wood building products companies during the global COVID-19 pandemic,” said Ray Ferris, West Fraser’s president and CEO. “Despite a number of challenges, we posted record earnings in 2021 and another strong result in the fourth quarter. In particular, we managed the complexities of significant transportation and mill disruptions in the face of unprecedented flooding in the B.C. Interior and Vancouver Lower Mainland, which severely disrupted transportation and logistics and the flow to markets of our finished products from Western Canada. The benefits of our product and geographic diversification were evident in the fourth quarter as quarter-over-quarter Adjusted EBITDA improvement from our lumber business helped to offset declines in our North America and Europe Engineered Wood Products segments.”

He further added, “Fundamentals for housing are favourable entering 2022 and we continue to see signs of resilience in repair and remodelling demand in both our North American and European markets. I expect our team to remain agile and creative to navigate the evolving needs of our customers.”