West Fraser announces First Quarter 2023 results

Press Release

VANCOUVER, B.C., April 25, 2023 – West Fraser Timber Co. Ltd. (“West Fraser” or the “Company”) (TSX and NYSE: WFG) reported today the first quarter results of 2023 (“Q1-23”). All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.

First Quarter Highlights

• Sales of $1.627 billion and earnings of $(42) million, or $(0.52) per diluted share
• Adjusted EBITDA1 of $58 million, representing 4% of sales
• Lumber segment Adjusted EBITDA1 of $0 million
• North America Engineered Wood Products (“NA EWP”) segment Adjusted EBITDA1 of $31 million, including $15 million of inventory write-downs
• Pulp & Paper segment Adjusted EBITDA1 of $7 million
• Europe Engineered Wood Products (“Europe EWP”) segment Adjusted EBITDA1 of $20 million

“In the first quarter of 2023, we faced challenging demand markets due in part to seasonal effects as well as higher mortgage rates that continued to moderate new home construction activity in the U.S. Our Lumber and North America EWP businesses were most impacted by these factors. As in the prior quarter, the product and geographic diversification of our European Engineered Wood Panels and Pulp & Paper segments provided positive EBITDA contributions that helped to offset some of the weakness in North American residential construction markets,” said Ray Ferris, West Fraser’s President & CEO.

“The West Fraser team is diligently managing through the market cycle and will continue to operate with financial discipline as we leverage our strong balance sheet to reinvest in our operations and return capital to shareholders. Importantly, our financial flexibility allows us to continue our core strategy of being a low-cost producer of wood building products while also positioning us to capitalize on opportunities as the demand environment becomes more favourable over the medium and longer term.”

Investor Contact
Robert B. Winslow, CFA
Director, Investor Relations & Corporate Development
Tel. (416) 777-4426
shareholder@westfraser.com

Media Contact
Joyce Wagenaar
Director, Communications
Tel. (604) 817-5539
media@westfraser.com

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