By Canadian Press

Western Forest Products Q2 profit soars to $78.3 million on surging lumber prices

Aug 6, 2021 | 6:51 AM

VANCOUVER — Western Forest Products Inc. beat expectations as surging lumber prices strongly boosted its second-quarter results. 

The Vancouver-based company says its net income soared to $78.3 million or 21 cents per share, up from $8.5 million or two cents per share a year earlier.

Revenues for the three months ended June 30 rose nearly 62 per cent to $414.4 million from $256.3 million in the second quarter of 2020.

Lumber revenue rose 87 per cent on a 45-per-cent increase in volumes while log revenue declined 23 per cent to $46.3 million.

The company says it realized record quarterly average lumber prices of $1,598 per thousand board feet, up 29 per cent from the prior year.

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Analysts on average expected Western Forest Products to earn 17 cents per share on $372 million of revenues, according to financial data firm Refinitiv.

“We successfully increased North American lumber production and shipments in the first half of the year to benefit from record commodity pricing,” stated CEO Don Demens.

“Looking ahead, we will continue to leverage our flexible operating platform by directing volume to the highest margin alternatives.”

This report by The Canadian Press was first published Aug. 6, 2021.

Companies in this story: (TSX:WEF)

The Canadian Press