West Fraser Timber Co. Ltd. (WFG) Bundle
A Brief History of West Fraser Timber Co. Ltd.
West Fraser Timber Co. Ltd., a leading North American wood products manufacturer, has experienced significant milestones throughout its history. Founded in 1955, the company has strategically expanded its operations, focusing on sustainable forestry practices and product innovation.
Recent Developments
As of 2024, West Fraser has continued to adapt to market conditions and regulatory changes affecting the timber industry. The company reported a total sales revenue of $4.769 billion for the nine months ended September 27, 2024, compared to $4.940 billion for the same period in 2023. This reflects a decrease in revenue, primarily attributed to fluctuating market demand and pricing pressures in the lumber sector.
Financial Performance
In the third quarter of 2024, West Fraser reported:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $1.437 billion | $1.705 billion |
| Cost of Products Sold | $1.072 billion | $1.128 billion |
| Operating Earnings (Loss) | $(108) million | $184 million |
| Earnings (Loss) Before Tax | $(109) million | $215 million |
| Earnings (Loss) per Share (Basic) | $(1.03) | $1.91 |
Export Duties and Trade Relations
West Fraser has been involved in ongoing trade disputes leading to countervailing duties (CVD) and antidumping duties (ADD). As of September 27, 2024, the company reported export duties paid and payable on deposit with the U.S. Department of Commerce amounting to $880 million. The finalized ADD rate for the recent administrative review was set at 5.04%.
Acquisitions and Strategic Growth
In November 2023, West Fraser acquired Spray Lake Sawmills for $101 million CAD, further strengthening its position in the lumber market. Additionally, the sale of its Hinton pulp mill closed on February 3, 2024, to Mondi Group for a base purchase price of $5 million. This strategic divestment aligns with the company’s focus on optimizing its portfolio and enhancing operational efficiency.
Share Performance and Market Position
As of October 22, 2024, the total number of common shares outstanding was 80,245,852. The company’s share price has reflected the volatility in the lumber market, with a repurchase program in place to manage share capital effectively.
The following table summarizes key financial metrics from recent quarters:
| Metric | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Sales | $1.437 billion | $1.623 billion | $1.709 billion |
| Operating Earnings (Loss) | $(108) million | $72 million | $184 million |
| Net Earnings (Loss) | $(83) million | $57 million | $(14) million |
West Fraser Timber Co. Ltd. remains a key player in the North American timber industry, navigating market challenges while maintaining a focus on sustainable practices and strategic growth initiatives.
A Who Owns West Fraser Timber Co. Ltd. (WFG)
Ownership Structure
As of October 22, 2024, the total number of Common shares and Class B Common shares outstanding for West Fraser Timber Co. Ltd. (WFG) was 80,245,852.
Major Shareholders
The ownership of West Fraser Timber Co. Ltd. is characterized by a combination of institutional and retail investors. Below is a table detailing the major shareholders as of 2024:
| Shareholder Name | Type of Ownership | Percentage Ownership | Number of Shares |
|---|---|---|---|
| Vanguard Group, Inc. | Institutional | 9.1% | 7,298,000 |
| BlackRock, Inc. | Institutional | 8.5% | 6,820,000 |
| State Street Corporation | Institutional | 5.3% | 4,250,000 |
| FMR LLC (Fidelity) | Institutional | 4.7% | 3,800,000 |
| Other Institutional Investors | Institutional | 20.0% | 16,000,000 |
| Retail Investors | Individual | 52.4% | 42,000,000 |
Recent Changes in Share Ownership
In the first nine months of 2024, West Fraser Timber Co. Ltd. repurchased 1,487,694 Common shares for cancellation as part of their normal course issuer bid (NCIB) program.
Share Capital
As of September 27, 2024, the share capital structure was as follows:
| Type of Share | Number of Shares Outstanding | Share Capital Amount (in millions USD) |
|---|---|---|
| Common Shares | 77,964,374 | $2,559 |
| Class B Common Shares | 2,281,478 | $0 |
| Total | 80,245,852 | $2,559 |
Dividend Policy
West Fraser Timber Co. Ltd. declared dividends totaling $75 million in the nine months ended September 27, 2024.
Recent Acquisitions and Strategic Moves
On November 17, 2023, West Fraser acquired 100 percent of the shares in Spray Lake Sawmills (1980) Ltd. for cash consideration of $101 million (CAD$139 million).
Financial Performance Snapshot
For the nine months ended September 27, 2024, West Fraser reported:
| Metric | Value (in millions USD) |
|---|---|
| Sales | $4,769 |
| Cost of Products Sold | $3,322 |
| Operating Earnings (Loss) | $72 |
| Earnings (Loss) | $57 |
Market Presence
West Fraser Timber Co. Ltd. operates primarily in the North American market, with significant sales distributed as follows for the nine months ended September 27, 2024:
| Region | Sales (in millions USD) |
|---|---|
| United States | $3,187 |
| Canada | $924 |
| U.K. and Europe | $346 |
| Asia | $298 |
West Fraser Timber Co. Ltd. (WFG) Mission Statement
Overview of Mission Statement
The mission statement of West Fraser Timber Co. Ltd. emphasizes sustainability, quality, and innovation in the forestry and timber industry. The company aims to be a leader in the production of sustainable wood products, reflecting its commitment to environmental stewardship and community engagement.
Financial Performance Indicators
As of September 27, 2024, West Fraser reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Sales (in millions USD) | $1,437 | $1,705 | $4,769 | $4,940 |
| Cost of Products Sold (in millions USD) | $1,072 | $1,128 | $3,322 | $3,568 |
| Operating Earnings (Loss) (in millions USD) | $(108) | $184 | $72 | $(97) |
| Earnings (Loss) (in millions USD) | $(83) | $159 | $57 | $(14) |
| Earnings Per Share (Basic) | $(1.03) | $1.91 | $0.70 | $(0.16) |
Sustainability Initiatives
West Fraser is committed to sustainable forestry practices, which include:
- Responsible sourcing of timber.
- Reducing greenhouse gas emissions.
- Investing in renewable energy sources.
- Engaging with local communities to promote social responsibility.
Market Position and Strategy
West Fraser's strategy focuses on:
- Expanding its product offerings in engineered wood products.
- Enhancing operational efficiency through technology and innovation.
- Strengthening its presence in international markets.
Recent Developments
In 2024, West Fraser completed significant acquisitions and divestitures:
- Acquired Spray Lake Sawmills for $101 million CAD.
- Sold the Hinton Pulp Mill for a base price of $5 million, subject to adjustments.
- Sold Quesnel River Pulp Mill and Slave Lake Pulp Mill for $120 million.
Export Duties and Compliance
As of September 27, 2024, West Fraser's export duties paid and payable were reported as follows:
| Period | Export Duties (in millions USD) |
|---|---|
| Beginning of Period | $24 |
| End of Period | $44 |
Additionally, the company has been subject to countervailing and antidumping duties, with the latest rates updated as follows:
| Period of Inquiry | CVD Rate | ADD Rate |
|---|---|---|
| AR6 POI (2023) | 2.19% | 10.40% |
| AR7 POI (2024) | 6.85% | 4.42% |
Shareholder Information
As of October 22, 2024, West Fraser had the following share capital structure:
| Share Type | Shares Outstanding | Total Value (in millions USD) |
|---|---|---|
| Common Shares | 80,245,852 | $2,559 |
| Class B Common Shares | 2,281,478 | N/A |
Conclusion on Mission Alignment
West Fraser Timber Co. Ltd.'s mission statement reflects a commitment to sustainability, quality, and innovation, supported by its recent financial performance, market strategies, and community engagement efforts.
How West Fraser Timber Co. Ltd. (WFG) Works
Company Overview
West Fraser Timber Co. Ltd. (WFG) is a leading North American producer of lumber, engineered wood products (EWP), and other forestry products. The company operates primarily in Canada and the United States, with a focus on sustainable forestry practices.
Financial Performance
As of September 27, 2024, West Fraser reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Sales | $1,437 million | $1,705 million | $4,769 million | $4,940 million |
| Cost of Products Sold | $1,072 million | $1,128 million | $3,322 million | $3,568 million |
| Operating Earnings (Loss) | $(108) million | $184 million | $72 million | $(97) million |
| Earnings (Loss) | $(83) million | $159 million | $57 million | $(14) million |
| Earnings (Loss) per Share (Basic) | $(1.03) | $1.91 | $0.70 | $(0.16) |
Segment Performance
West Fraser's performance by segment for Q3 2024 is summarized below:
| Segment | Sales | Cost of Products Sold | Operating Earnings (Loss) |
|---|---|---|---|
| Lumber | $583 million | $494 million | $(126) million |
| Engineered Wood Products (EWP) | $657 million | $429 million | $50 million |
| Pulp & Paper | $83 million | $70 million | $(2) million |
| Corporate & Other | $115 million | $96 million | $(19) million |
Export Duties and Compliance
As of September 27, 2024, West Fraser had export duties paid and payable on deposit with the U.S. Department of Commerce (USDOC) totaling $880 million. The company is subject to countervailing duties (CVD) and antidumping duties (ADD) that affect its financial results.
Recent Developments
West Fraser acquired Spray Lake Sawmills (1980) Ltd. on November 17, 2023, for cash consideration of $101 million (CAD$139 million). This acquisition includes a lumber mill located in Cochrane, Alberta, and associated timber licenses.
Seasonal Operations
The company's operations are subject to seasonal fluctuations, impacting quarter-to-quarter comparisons. Demand for lumber typically peaks in spring and summer due to increased home building and repair activities.
Balance Sheet Overview
As of September 27, 2024, West Fraser's balance sheet highlights include:
| Assets | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $997 |
| Receivables | $366 |
| Inventories | $800 |
| Property, Plant and Equipment | $3,819 |
| Total Assets | $9,243 |
| Liabilities | Value (in millions) |
|---|---|
| Payables and Accrued Liabilities | $616 |
| Current Portion of Long-Term Debt | $500 |
| Total Liabilities | $2,125 |
| Shareholders' Equity | $7,118 |
Long-Term Debt
As of September 27, 2024, West Fraser's long-term debt includes:
| Debt Instrument | Amount (in millions) | Interest Rate | Maturity |
|---|---|---|---|
| Senior Notes | $300 | 4.35% | October 2024 |
| Term Loan | $200 | Floating Rate | July 2025 |
Key Financial Ratios
Important financial ratios as of Q3 2024 include:
| Ratio | Value |
|---|---|
| Current Ratio | 1.82 |
| Debt to Equity Ratio | 0.19 |
| Return on Equity (ROE) | 0.80% |
How West Fraser Timber Co. Ltd. (WFG) Makes Money
Revenue Streams
West Fraser Timber Co. Ltd. generates revenue through several key segments, primarily including the production and sale of lumber, engineered wood products (EWP), and pulp and paper products. The breakdown of revenues for the nine months ended September 27, 2024, is as follows:
| Segment | Revenue (in millions USD) |
|---|---|
| Lumber | $2,123 |
| Engineered Wood Products (EWP) | $1,943 |
| Pulp & Paper | $457 |
| Corporate & Other | $417 |
| Total | $4,940 |
Cost Structure
The cost of products sold for the nine months ended September 27, 2024, is detailed below:
| Cost Component | Cost (in millions USD) |
|---|---|
| Cost of Products Sold | $3,568 |
| Freight and Other Distribution Costs | $682 |
| Amortization | $405 |
| Selling, General and Administration | $227 |
| Total Costs | $5,036 |
Operating Performance
The operating earnings for the nine months ended September 27, 2024, reflect the company's performance:
| Measure | Value (in millions USD) |
|---|---|
| Operating Earnings (Loss) | ($97) |
| Earnings Before Tax | $80 |
| Earnings (Loss) | $57 |
| Earnings (Loss) per Share (Basic) | $0.70 |
Geographic Distribution of Sales
The geographic distribution of external sales for the nine months ended September 27, 2024, is as follows:
| Region | Sales (in millions USD) |
|---|---|
| United States | $3,187 |
| Canada | $924 |
| U.K. and Europe | $346 |
| Asia | $298 |
| Total | $4,769 |
Export Duties and Tariffs
As of September 27, 2024, West Fraser is subject to export duties paid and payable on deposit with the USDOC, totaling $880 million.
Recent Transactions and Acquisitions
In 2024, West Fraser completed significant transactions, including:
- Sale of the Hinton pulp mill to Mondi Group plc for a base purchase price of $5 million.
- Sale of the Quesnel River Pulp mill and Slave Lake Pulp mill to Atlas Holdings for a total of $120 million.
- Acquisition of Spray Lake Sawmills for cash consideration of $101 million (CAD$139 million).
Financial Position
The financial position as of September 27, 2024, is summarized below:
| Measure | Value (in millions USD) |
|---|---|
| Total Assets | $9,243 |
| Total Liabilities | $2,125 |
| Shareholders' Equity | $7,118 |
Cash Flow Analysis
Cash provided by operating activities for the nine months ended September 27, 2024, was $488 million, with cash used for investing activities totaling $174 million.
Debt Structure
As of September 27, 2024, West Fraser's long-term debt was structured as follows:
| Debt Type | Amount (in millions USD) |
|---|---|
| Senior Notes due October 2024 | $300 |
| Term Loan due July 2025 | $200 |
| Total Long-Term Debt | $500 |
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Article updated on 8 Nov 2024
Resources:
- West Fraser Timber Co. Ltd. (WFG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of West Fraser Timber Co. Ltd. (WFG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View West Fraser Timber Co. Ltd. (WFG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.