Western Forest Products Inc. (“Western”) reported adjusted EBITDA of $15.1 million in the 2Q 2019 compared to adjusted EBITDA of $50.2 million in the 2Q 2018, and $18.1 million reported in the 1Q 2019. Results were impacted by challenging markets which led to production curtailments, and higher British Columbia (“BC”) coastal operating costs, as the company said in the press release received by Lesprom Network.
Operating income prior to restructuring and other income was $1.4 million in the 2Q 2019, compared to $39.7 million in 2Q 2018, and $5.7 million reported in the 1Q 2019.
Net loss of $0.7 million was reported for the 2Q 2019, as compared to net income of $27.1 million for the 2Q 2018 and $1.9 million in the 1Q 2019. The Company generated revenue of $310.3 million in the 2Q 2019, as compared to $327.8 million in the 2Q 2018, and $275.7 million in the 1Q 2019.
“Levering investments in our flexible operating platform allowed us to increase specialty lumber shipments and revenue, partly mitigating the effects of challenging commodity markets and higher coastal BC operating costs,” said Don Demens, President and CEO. “Looking ahead, we expect to resolve the ongoing labour strike and move forward with growing our specialty products business.”
Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.
