West Fraser Timber Co Ltd T.WFG

Amazing Q4 results

[Nystrom]

" Q4 2020 - C$366 million, or C$5.34 per share, in the period, compared with a loss of C$42 million, or C$0.61, in  Q4 2019. Adjusted profit, which excludes most one-time items, were C$388 million, or C$4.92, topping the average analyst estimate for the measure of C$4.53, according to Capital IQ.

Sales rose 50% to C$1.69 billion.


Norbord's results were similarly impressive...

"The oriented-strand board (OSB) manufacturer said it earned US$246 million in the period, compared with a loss of US$12 million in Q4 of 2019."


Remarkable results considering Q4 is the slow time of year for their industry.

[JohnnyTSX]

I agree. Just wait until Q1 2021. Results will be even better!

[Nystrom]

Can anyone confirm if WFG wiped out part or all of Norbord's debt upon merger? Thats what I take away from reading the recent quarterly report but it wasn't clear to me. 

[dosperros]

Yes.  That was a question asked by one of the analysts in the CC today, along the lines of "as you are largely cash-positive...." Pro forma combined net debt after Q3 was $946M.  With WFT coming in a $544M in Q4 and OSB doing $380 or so, that largely takes care of it.  Page 22 below. https://www.westfraser.com/sites/default/files/presentations/pdfs/West%20Fraser

[Nystrom]

Makes sense they would want to hold onto cash until the merger was fully complete.  Next quarter we'll get the news about div increase, special div etc. If lumber and osb prices stay this high or go higher (seems unbelieveable yet likely) heading into building season its going to rain money for shareholders this year.