VANCOUVER – West Fraser Timber Co. Ltd. says the addition of Norbord elevated its third-quarter results from a 12 months in the past but B.C. wildfires and decrease lumber costs contributed to a weakening from the second quarter.
The Vancouver-based lumber, oriented strand board and paper producer says it earned US$460 million or US$4.20 per diluted share for the three months ended Sept. 30.
That’s up from US$262 million or US$3.82 per share in the third quarter of 2020, but down from US$1.45 billion or US$12.32 per share in the prior quarter.
Gross sales practically doubled to US$2.36 billion from US$1.27 billion, but have been down 37.6 per cent from the second quarter.
The corporate says wildfires slowed orders for forest merchandise whereas output was lowered as a result of availability of resins for panel merchandise, transportation interruptions and stock ranges.
About 869,000 hectares of space have been burned from wildfires in British Columbia in the second and third quarters, trailing solely the provincial space misplaced from wildfires in 2017 and 2018.
“Regardless of plenty of challenges, the third quarter of 2021 was certainly one of West Fraser’s strongest quarter ever,” said CEO Ray Ferris.
“We operated responsibly throughout the enterprise, managing the complexities of transportation and mill disruptions in the face of upper duties and B.C. stumpage and softer demand in a cyclical commodity atmosphere.”
This report by The Canadian Press was first printed Oct. 27, 2021.
Firms in this story: (TSX:WFG)
West Fraser sees big gain in Q3 from Norbord addition, but results weaker than Q2 Source link West Fraser sees big gain in Q3 from Norbord addition, but results weaker than Q2