West Fraser Timber Co. Ltd. says it swung to a large profit in the third quarter on higher lumber prices.
The Vancouver-based forestry company says it earned $350 million or $5.09 per share for the three months ended Sept. 30, up from a loss of $45 million or 65 cents per share a year earlier.
Adjusted profits also surged, to $386 million or $5.63 per share, compared with a loss of $15 million or 22 cents per share in the third quarter of 2019.
Sales grew 42 per cent to $1.69 billion, from $1.19 billion in the prior year.
West Fraser was expected to post $4.59 per share in adjusted profits on $1.65 billion of revenues, according to financial data firm Refinitiv.
The company said its lumber segment generated $454 million of $487 million in operating earnings during the quarter.
Third Quarter Highlights
- Sales increased by 32% to $1,690 million in the quarter.
- Adjusted EBITDA increased to $605 million from $184 million in the second quarter.
- Cash flow from operations of $613 million for the third quarter and $930 million year to date.
- Available liquidity improved by $546 million to $1,346 million from June 30, 2020, revolving credit facility repaid in the quarter.
- Growth and margin improvement in the U.S. South as investments continue to show results.