|Bid||0.00 x 2200|
|Ask||0.00 x 900|
|Day's Range||83.05 - 86.52|
|52 Week Range||24.86 - 88.48|
|Beta (5Y Monthly)||2.26|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul. 26, 2021 - Jul. 30, 2021|
|Forward Dividend & Yield||0.64 (0.75%)|
|Ex-Dividend Date||Mar. 17, 2021|
|1y Target Est||N/A|
CALGARY — West Fraser Timber Co. Ltd. is reporting higher first-quarter sales and earnings on higher prices and production of lumber and building panels after completing its $4-billion all-stock takeover of Norbord Inc. on Feb. 1. The Vancouver-based company, which reports its financials in U.S. dollars, says earnings increased to US$665 million on $2.3 billion in sales in the first three months of 2021, up from earnings of $9 million on sales of $890 million in the same period of 2020. Earnings were also up from $282 million on sales of $1.29 billion in the fourth quarter of 2020. West Fraser says its lumber segment generated adjusted earnings before interest, taxes, depreciation and amortization of $646 million, up from $53 million in the year-earlier period, as higher commodity prices were partly offset by lower shipment volumes due to seasonal railcar shortages in Canada and extreme winter conditions in the U.S. South. Its engineered wood products segment, formed after the Norbord takeover, had adjusted EBITDA of $353 million, compared with $6 million from its panels division in the first quarter of 2020, thanks to the addition of Norbord oriented strand board panel volumes and higher prices and demand for plywood. The company says the outlook for its building and panel products is robust and it plans to maximize capacity utilization this year given ongoing high demand from residential home construction, repair and remodelling. This report by The Canadian Press was first published May 6, 2021. Companies in this story: (TSX:WFG) The Canadian Press
(Bloomberg) -- West Fraser Timber Co. plans to expand capacity at five of its lumber mills in the U.S. South as a home-building boom fuels lumber demand.The pandemic-fueled surge in home construction last year took North American sawmills by surprise, sending lumber prices to new records. U.S. futures this week hit $1,600 per 1,000 board feet for the first time, a four-fold increase from a year ago. While production has since ramped up, demand continues to outpace supplies as home-buying and renovations continue.“In the lumber segment we expect to invest approximately $150 million at five of our U.S. South lumber mills under the strategic capital program,” the company said Thursday in a statement. “Investments at the target mills will expand their capacity, increase the mix of higher-margin 2x4s and reduce fixed and variable production costs.”Key TakeawaysThe Vancouver-based company acquired Norbord Inc., one of the world’s biggest makers of oriented strand board, in February. West Fraser said it will invest $30 million at two OSB mills to improve productivity.Log costs for the company’s Canadian and engineered wood product operations are expected to remain elevated as long as demand exceeds available log supply in B.C.Higher Canadian stumpage rates and increased costs from extreme weather in the U.S. south, negatively impacted adjusted EBITDA compared to the prior quarter, the company said.Adjusted EBITDA for lumber in the last three months of 2020, when prices were unseasonably high due to strong home building and renovation demand, was $425 million. This jumped to $646 million in the first three months of 2021.West Fraser said it will move forward with roughly $180 million of additional capital projects in the second half of 2021 through 2023, and reiterated its capital expenditure target of roughly $450 million this year.Market ReactionWest Fraser shares are up 28% this year through Thursday’s close, after reaching a record high at C$106.42 last month in Toronto, outperforming the nearly 11% gain of Canada’s benchmark S&P/TSX Composite Index.Get MoreFirst-quarter adjusted EBITDA was $1 billion or $6.96 a share, missing the C$1.18 billion average estimate in a Bloomberg survey.Read more about West Fraser’s quarterly results here.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX: WFG) (NYSE: WFG) reported today the first quarter results of 2021. All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.