West Fraser announced its financial results for the third quarter of 2024, reporting sales of US$1.437 billion, a decrease from US$1.705 billion in the previous quarter. Earnings for the third quarter amounted to US$83 million, or US$1.03 per diluted share, in contrast to US$105 million, or US$1.20 per diluted share, reported in the second quarter. The company’s Adjusted EBITDA also declined, standing at US$62 million for the third quarter, compared to US$272 million in the second quarter.
“The benefits of our product diversification strategy were apparent once again in the third quarter of 2024, a period marked by uneven demand across our key products. North American OSB, plywood and other engineered wood products continued to experience healthy demand, and the Lumber segment saw unexpected improvement in SPF demand, while SYP markets remained challenging, in part reflecting ongoing softness in repair and remodeling markets”, stated Sean McLaren, president and CEO of West Fraser.
McLaren also highlighted the company’s efforts to optimize costs: “The team at West Fraser has been actively improving the cost position across our portfolio of mills, and we continue to make progress within our U.S. South lumber platform. We expect to continue working diligently to execute our strategy of investing capital to modernize mills and lower costs, helping build a more resilient organization. We will also continue to return excess capital to shareholders when it is prudent to do so, maintaining our strong balance sheet that continues to allow West Fraser the financial flexibility to take advantage of opportunities that fit our long-term strategy”.
