West Fraser Timber Co. Ltd. reports 2Q 2018 sales of $1,834 million, compared to $1,322 million in the 2Q 2017. Adjusted EBITDA was $593 million, compared to $305 in the 2Q 2017.
Lumber segment generated operating earnings of $358 million and Adjusted EBITDA of $467 million. Improved product pricing and increased shipments of 416 million board feet were largely responsible for the improved results. Countervailing and antidumping duties charged in the quarter were $81 million, of which $68 million was recorded as export duties expense in the earnings statement and $13 was recorded as a long-term duty receivable on the balance sheet.
Panels segment generated operating earnings in the 2Q 2018 $52 million and Adjusted EBITDA of $56 million. Improved plywood pricing and higher shipments boosted results.
Pulp & paper segment generated operating earnings of $56 million and Adjusted EBITDA of $68 million. Higher pulp prices were offset by lost production from a planned maintenance shutdown at Cariboo NBSK mill, transportation related production curtailments at Quesnel BCTMP mill, and a series of operational challenges at Hinton NBSK mill.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.