Vancouver, B.C. - West Fraser Timber Co. Ltd. ("West Fraser", "we", "us", "our", or the "Company") (TSX and NYSE both under the trading symbol WFG) today reported the fourth quarter and annual results of 2020. All dollar amounts in this news release are expressed in Canadian dollars.
Despite a year filled with uncertainty, West Fraser maintained its strategy and delivered strong results. We minimized COVID-19 related business disruptions, thanks to our focus on workplace safety and the agility of our people and operations, and benefitted from strong demand for our products. The acquisition of Norbord Inc. ("Norbord") was completed on February 1, 2021. Norbord's complementary products and operations expand West Fraser's geographic and product diversification and positions the Company as a leading wood-based building products producer. Except where specifically noted, the financial information set out in this news release relates solely to West Fraser prior to giving effect to the acquisition of Norbord.
Fourth Quarter
- Sales of $1.689 billion in the quarter
- Earnings of $366 million or 22% of sales
- Adjusted EBITDA of $544 million
- A quarterly cash dividend of $0.20 declared
- Additional export duty recovery of $124 million for the finalization of the 2017 and 2018 administrative review
2020
- Sales of $5.850 billion in the year
- Earnings of $776 million or 13% of sales
- Adjusted EBITDA of $1.460 billion
- Cash provided by operating activities of $1.295 billion
- Invested $241 million in capital projects
- Year-end liquidity strong at $1.619 billion and net debt to capital ratio at 2%
Recent Developments
On February 1, 2021, we completed the acquisition of Norbord in an all-stock transaction. Norbord's OSB production further diversifies West Fraser's product portfolio and expands our reach into the European market. For additional information, refer to the section titled "Norbord Acquisition" in our 2020 Management's Discussion& Analysis ("2020 MD&A").Concurrent with the completion of the Norbord acquisition, the Common shares of West Fraser commenced trading on the New York Stock Exchange ("NYSE") on February 1, 2021 under the symbol WFG. In addition, the trading symbol for the Common shares on the Toronto Stock Exchange ("TSX") was changed to WFG on February 1, 2021.
On November 24, 2020, the U.S. Department of Commerce ("USDOC") issued its final duty rates for the first Administrative Review ("AR") Period of Investigation ("POI") dated April 28, 2017 to December 31, 2018. The cash deposit rate for shipments is a combined 8.97%, which marks a significant decrease from the 23.56% deposit rate previously required by the USDOC. The AR2 for the 2019 fiscal period is continuing, and the USDOC has initiated AR3 for the 2020 fiscal period. Preliminary results for AR2 are expected in May 2021 and final results in November 2021. For additional information, refer to the section titled "Discussion & Analysis of Annual Results by Product Segment -Lumber -Softwood Lumber Dispute" in our 2020 MD&A.
Source: West Fraser
