West Fraser Timber's Q1 2023 sales were $1.627 billion, compared to $1.615 billion in the Q4 2022. Q1 2023 earnings were $(42) million, or $(0.52) per diluted share, compared to $(94) million, or $(1.13) per diluted share in the Q4 2022. Q1 2023 Adjusted EBITDA was $58 million compared to $70 million in the Q4 2022.
“In the Q1 2023, we faced challenging demand markets due in part to seasonal effects as well as higher mortgage rates that continued to moderate new home construction activity in the U.S. Our Lumber and North America EWP businesses were most impacted by these factors. As in the prior quarter, the product and geographic diversification of our European Engineered Wood Panels and Pulp & Paper segments provided positive EBITDA contributions that helped to offset some of the weakness in North American residential construction markets,” said Ray Ferris, West Fraser’s President & CEO.
Cash and short-term investments decreased to $847 million at March 31, 2023 from $1.162 billion at December 31, 2022, largely owing to typical seasonal working capital build. Capital expenditures in the Q1 2023 were $99 million.
West Fraser is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom, and Europe. The Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, other residuals and renewable energy.
