West Fraser Timber Co. Ltd. reported results for the 1Q 2020. Sales were $1.195 billion, up 6% on prior quarter. 1Q 2020 Adjusted EBITDA was $127 million, $47 million higher than prior quarter.
Lumber segment generated operating earnings of $19 million and Adjusted EBITDA of $106 million. The improvement was due primarily to higher product pricing for specific grades of SPF lumber, favourable foreign exchange movements, and lower log costs. The current quarter included temporary curtailments of SPF and SYP production of 50 MMfbm compared to the 63 MMfbm of SPF temporarily curtailed in the previous quarter.
West Fraser Timber's panels segment generated operating earnings in the quarter of $4 million and Adjusted EBITDA of $8 million. Panel segment results declined as lower plywood and LVL shipment volumes offset higher plywood pricing. The current quarter included temporary plywood curtailments of 10 MMsf as plywood sales in Canada were among the first of its commodities affected by the impact of COVID-19.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips, other residuals, and energy with facilities in western Canada and the southern United States.
