West Fraser Timber reports loss in Q4 as interest rates weigh on U.S. construction

VANCOUVER – West Fraser Timber Co. Ltd. says it saw losses of US$94 million in the fourth quarter of 2022, down more than 128 per cent from earnings of US$334 million during the same quarter a year earlier.

The company, which reports in U.S. dollars, says in the fourth quarter it faced dampened new home construction in the U.S. due to high interest rates, which weighed on its lumber business in particular.

Sales in the fourth quarter were US$1.62 billion, down more than 20 per centfrom US$2.04 billion a year earlier, while earnings per diluted share were negative US$1.13, down from US$3.13 a year earlier.

The company says for the full financial year, it earned US$1.98 billion, down almost 33 per cent per cent from $2.95 billion in 2021.

Last week, the company announced it would temporarily curtail operations at its mill in Quesnel, B.C., after announcing in January it was indefinitely curtailing its Perry Sawmill in Florida due to high fibre costs and softening lumber markets.

President and CEO Ray Ferris says the company anticipates moderating costs will continue to have an impact on the business.

This report by The Canadian Press was first published Feb. 14, 2023.

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