West Fraser reports 3Q 2017 earnings of $120 million, up from $107 million a year ago. Lumber segment generated operating earnings of $126 million and Adjusted EBITDA of $195 million. This quarter’s results were negatively impacted by lower product pricing and lower SPF production as a result of the British Columbia forest fires. Countervailing and antidumping duties, which commenced in the previous quarter, resulted in an expense of $31 million for the current quarter.
Panels segment generated operating earnings in the quarter of $45 million and Adjusted EBITDA of $48 million. Improved plywood pricing was the primary driver of improved results.
Pulp & paper segment generated operating earnings of $21 million and Adjusted EBITDA of $30 million. The major factors contributing to the decrease in operating earnings were lower Canadian dollar pulp prices and increased maintenance costs from its Hinton pulp mill major maintenance shutdown.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.
