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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

Comment by ACarrotherson Dec 04, 2021 5:14am
173 Views
Post# 34197933

RE:Help me Understand -- Lumber duty re q4

RE:Help me Understand -- Lumber duty re q4No not quite. I wondered the same

See page #32 of WEF's Q3 earnings report. They paid 20.23% in cash deposits combined for 2019 which includes both CV & AD duty rates

Link: https://www.westernforest.com/wp-content/uploads/2021/05/Quarterly-Report-2021-Q3.pdf

What Phoenix shared is just the final determination of the CV piece at 6.31%. We still need to know the final detemintation on the AD piece to get to the combined total.

The preliminary rate total (AD + CV) = 18.32% vs. the 20.23% paid is cash deposits. 

In theory this means we recover (20.23% - 18.32%) = 1.91% of the portion of 2019 sales that were impacted by US duties. 

Total revenue for FY 2019 = ~$807M (strike impacted). If you assume ~25% (conservative?) of that was impacted by US duties our recovery in Q4 might be roughly $807 *0.25 * 0.0191 = $3.9M. Still something. 
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