Challenging market continues to affect West Fraser earnings

West Fraser Timber Co. Ltd. had sales of $1.7 billion in the third quarter of 2023, down from sales of $2.09 billion in the third quarter of 2022. Adjusted EBITDA for the quarter was $325 million, representing 19 percent of sales, compared to adjusted EBITDA of $426 million on the year ago period. The lumber segment had EBITDA of $44 million for the quarter; the North America engineered wood products segment had EBITDA of $289 million; and the Europe engineered wood products segment had EBITDA of $4 million. Overall earnings were $159 million compared to $216 million in the year-ago period. “While the third quarter of 2023 marked a continuation of the challenging demand markets we experienced in recent quarters, particularly in the lumber segment where we executed curtailments at several locations for planned capital upgrades and to meet customer needs, our North American EWP business had its best result in several quarters against a backdrop of rising mortgage rates that remain well above year-ago levels,” says Ray Ferris, West Fraser’s president and CEO.