Posted November 8, 2018
Western Forest Products Inc. reported adjusted EBITDA of $32.3 million in the 3Q 2018, compared to adjusted EBITDA of $32.6 million in the 3Q 2017, and $50.2 million reported in the 2Q 2018. Operating income prior to restructuring and other income was $23.4 million in the 3Q 2018, compared to $25.1 million in 3Q 2017, and $39.7 million reported in the 2Q 2018.
Higher realized average lumber pricing and lower manufacturing costs in the 3Q 2018 offset the impacts of $11.5 million of US export lumber duty expense, higher stumpage costs, declining commodity markets and fire-related operating curtailments.
Western Forest Products' 3Q 2018 net income rises to $15.1 million from year-ago $13.6 million on revenue of $292.5 million, up from $285.2 million.
“Well positioned opening log inventory and efficiencies in our supply chain allowed us to partly mitigate the impact of the worst fire season in coastal BC history. Despite harvest challenges and market volatility, our specialty-focused lumber business continues to deliver revenue growth and higher price realizations,” said Don Demens, President and CEO. “Looking ahead, we expect to leverage the investments in our flexible operating platform to overcome challenging market conditions, ongoing lumber duty expense and increased stumpage costs.”
Adjusted EBITDA for the first nine months of 2018 was $125.5 million, a 10% improvement from the same period in 2017. Operating income prior to restructuring items and other income increased to $95.7 million from $86.7 million in the same period last year.
Net income for the first nine months of 2018 was $63.9 million, as compared to $55.4 million for the same period of 2017. Improved operating margins and reduced operating restructuring items were partly offset by higher income tax expense.
Western Forest Products Inc. is an integrated Canadian forest products company and the largest coastal British Columbia timberlands operator and lumber producer.