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Western Forest Products Inc T.WEF

Alternate Symbol(s):  WFSTF

Western Forest Products Inc. is a Canada-based integrated forest products company building a margin-focused log and lumber business to compete in global softwood markets. The Company’s primary business is the sale of lumber and logs, which includes timber harvesting, sawmilling logs into specialty lumber, value-added lumber and glulam remanufacturing, and wholesaling purchased lumber. It has a lumber capacity of approximately 885 million board feet from six sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities. The Company's product categories include outdoor living, exterior appearance, LIFESTYLE CEDAR, interior living, structural, industrial and WFP engineered products. Its outdoor living products include decking, timbers and fencing products. Its LIFESTYLE CEDAR products include LIFESTYLE CEDAR Decking and LIFESTYLE CEDAR Fencing. Its WFP Engineered Products include curved and arched glulams, straight glulams, and fabricated trusses.


TSX:WEF - Post by User

Bullboard Posts
Post by louelon Nov 07, 2019 12:12pm
123 Views
Post# 30321960

A point or two

A point or two
In Japan, we expect demand to remain flat for our Douglas fir products, however increased competition from European engineered wood products may pressure pricing. We expect market share erosion and weaker pricing for BC coastal Hemlock lumber in Japan, due to the supply shortages as a result of the Strike and increased competition
 
Given the current uncertainty created by the ongoing labour dispute, unfavourable investment conditions in BC and our near-term focus on managing cash flow, we have scaled back our strategic capital investment. ,   The Company has halted all material non-committed strategic capital investment in BC.

Our strategic capital program is focused on the installation of technology that will deliver top quartile performance and improve our ability to manufacture targeted products that yield the best margin.  ( automating to reduce workforce )
 

We are committed to reaching a reasonable collective agreement that creating certainty for our employees, while maintaining our globally competitive position.  We are seeking an agreement that is similar to those achieved in the Northern and Southern Interior of BC, where the United Steelworkers have ratified new collective agreements.  
   (No reason why this should be unacceptable)

The Strike is expected to have a negative impact on our fourth quarter results , we are unable to determine the magnitude of that impact at this time.
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   There is no indication of capitulating on outlandish demands.  Still  financially  Management planned ahead probably expecting a strike.   The purchase of Columbia Vista insured there would still be a revenue stream supporting the company if strike action occured.   Log exports from partnered TFL's also a corporate benifet.

  However the shutdown continues,  causing uncertainty.   The $8.2M in Dividends is still going to be paid. Eroding the company finances during a lower revenue period with higher costs described.   So I would expect a bit of a share price pull back.   Offering a slightly better entry position than present.
    
   The Union could end this by accepting an equal settlement their Brotherhood has rattified in interior mills.    It is the same Province,  No reason coastal workers should be remunerated higher than their inland counterparts.    

  From the report, The company is reasonably firm in it's position.  WEF's key Management,  
Chair Lee Doney,  Previous Govt. official & Former Mediator himself,

CEO Don Demmons From a sawmill familly with a degree in Economics & Finance,  

CFO Steven Williams who after helping to build  International Forest Products   Was enticed to come over to WEF by Brookfield..

  These are among the highest qualified individuals in the industry.   Their leadership has made WEF the company what it is today.  One of only a couple in the Canadian forest industry which is financially secure,  growing,  a benifet to the Island economy and still paying it's share holders a dividend.
     The reason why Institutional holdings constantly range in the 45% +- bracket
 


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