Q3 2024 West Fraser Timber Co Ltd Earnings Call Transcript
Key Points
- West Fraser Timber Co.Ltd (WFG) generated $62 million of adjusted EBITDA in Q3 2024, despite a $32 million lumber export duty expense.
- The company maintained a trailing four-quarter EBITDA above $500 million, showing resilience during a down cycle.
- West Fraser Timber Co.Ltd (WFG) has over $2 billion in total liquidity, providing financial flexibility for consistent capital allocation.
- The North American engineered wood product segment showed relative strength, with stronger than expected demand for SPF lumber.
- The company is optimistic about the longer-term demand prospects, supported by expected rate cuts and stabilized costs across the supply chain.
- The lumber segment posted an adjusted loss of $62 million in Q3 2024, impacted by a $32 million export duty expense.
- There was a sequential decline in EBITDA across North American engineered wood products and lumber businesses due to lower prices.
- The pulp and paper segment generated only $2 million of adjusted EBITDA in Q3, down from $9 million in the previous quarter.
- The European business reported a decline in adjusted EBITDA to $1 million in Q3 from $6 million in Q2.
- Market conditions for Southern Yellow Pine (SYP) lumber remain challenging, with shipments down nearly 12% versus the prior quarter.
Good morning, ladies and gentlemen and welcome to the West Fraser Q3 2024 results conference call at this time. (Operator instructions) This call is being recorded on Thursday, October 24, 2024.
During this conference call, West Fraser's representatives will be making certain statements about West Fraser's future financial and operational performance, business outlook and capital plans. These statements may constitute forward-looking information or forward-looking statements within the meaning of Canadian and United States securities laws.
Such statements involve certain risks, uncertainties and assumptions which may cause West Fraser's actual or future results and performance to be materially different from those expressed or implied in these statements. Additional information about these risk factors and assumptions is included both in the accompanying webcast presentation and in our 2023 annual MDNA and annual information form which can be accessed on the West Fraser website or through CDAR Plus for canadian investors and Edgar for United States investors.
I would now like
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
