FOURTH QUARTER AND 2021 ANNUAL RESULTS; DECLARES DIVIDEND VANCOUVER, BC, Feb. 15, 2022 /PRNewswire/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") (TSX andNYSE: WFG) reported today the fourth quarter and annual results of 2021. All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.
The results of operations presented and discussed below include those of Norbord from February 1, 2021 and those of Angelina Forest Products from December 1, 2021.
Fourth Quarter Highlights
- Sales of $2.038 billion and earnings of $334 million, or $3.13 per diluted share
- Adjusted EBITDA1 of $615 million, representing 30% of sales
- Lumber segment Adjusted EBITDA1 of $240 million
- North America Engineered Wood Products ("NA EWP") segment Adjusted EBITDA1 of $343 million
- Pulp & Paper segment Adjusted EBITDA1 of negative $14 million
- Europe Engineered Wood Products ("Europe EWP") segment Adjusted EBITDA1 of $61 million
Annual Highlights
- Sales of $10.518 billion and earnings of $2.947 billion, or $27.03 per diluted share
- Adjusted EBITDA1 of $4.569 billion, representing 43% of sales
- Lumber segment Adjusted EBITDA1 of $1.973 billion
- NA EWP segment Adjusted EBITDA1 of $2.414 billion
- Pulp & Paper segment Adjusted EBITDA1 of $15 million
- Europe EWP segment Adjusted EBITDA1 of $201 million
| 1. Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Non-GAAP and Other Specified Financial Measures" section of this document for more information on this measure. |
"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 & 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 EBITDA1 improvement from our Lumber business helped to offset declines in our North America and Europe Engineered Wood Products segments."
"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."