VANCOUVER — West Fraser Timber Co. Ltd. capped a year of strong growth and record profits with net income surging 18 per cent in the fourth quarter on the addition of Norbord during the COVID-19 pandemic.
The Vancouver-based forestry company says it earned US$334 million or $3.13 per diluted share for the three months ended Dec. 31, compared with US$282 million or $4.09 per share a year earlier.
West Fraser, which reports in U.S. dollars, says revenues increased 57 per cent to US$2.04 billion, from US$1.3 billion in the fourth quarter of 2020.
Financial data firm Refinitiv says company was expected to earn US$3.59 per share on US$2.08 billion of revenues.
For the full-year, West Fraser earned US$2.95 billion or US$27.03 per share on US$10.52 billion of revenues.
That is compared with US$588 million or US$8.56 per share on US$4.37 billion of revenues in 2020.
“Despite a number of challenges, we posted record earnings in 2021 and another strong result in the fourth quarter,” CEO Ray Ferris said in a news release.
“In particular, we managed the complexities of significant transportation and mill disruptions in the face of unprecedented flooding in the B.C. Interior and Vancouver Lower Mainland, which severely disrupted transportation and logistics and the flow to markets of our finished products from Western Canada.”
West Fraser added oriented strandboard producer Norbord in February 2021 and Angelina Forest Products last December.
Ferris said housing fundamentals are favourable and it continues to see signs of resilience in repair and remodelling demand in North America and Europe.
This report by The Canadian Press was first published Feb. 15, 2022.
Companies in this story: (TSX:WFG)
The Canadian Press
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