West Fraser release third quarter results

Highlights for West Fraser Timber Co Ltd in the third quarter of 2018 include a strong operating cash flow and earnings despite lower lumber and panel prices, continued progress on finished goods inventory reduction, the repurchase of 3.5 million shares for CAD$301 million (US$229.6 million) at an average price of CAD$85.96 (US$65.57), and the start up of a new sawmill in Opelika, Alabama, United States (U.S.).

The addition of six Gilman sawmills in September of 2017 as well as strong product pricing in the first half of 2018 has contributed to a 29 per cent increase in sales, and 73 per cent increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). Moreover, the company has experienced a cash flow from operations of CAD$897 million (US$684.27 million) year to date with two dividend increases representing an increase of 82 per cent in the annual payout.

The third quarter ending for West Fraser can also boast a net debt to capital ratio of 11 per cent and available liquidity of CAD$838 million (US$639.26 million). On top of that, West Fraser now shares trade on the Toronto Stock Exchange.