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West Fraser Announces 2021 First Quarter Results VANCOUVER , BC , May 6 , 2021 / CNW / - West Fraser Timber Co. Ltd. ( " West Fraser " or the " Company " ) ( TSX : WFG ) ( NYSE : WFG ) reported today the first quarter results of 2021. All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise . The results of operations presented and discussed below include those of Norbord from February 1 , 2021 , the date of the completion of the acquisition of Norbord . First Quarter Highlights • Sales increased 81 % from the prior quarter to $ 2.343 billion • Earnings increased to $ 665 million , or 28 % of sales , from $ 282 million in the prior quarter Completed the acquisition of Norbord on February 1 , 2021 • Adjusted EBITDA increased to $ 1.008 billion from $ 453 million in the prior quarter • • Commenced commissioning at the new lumber mill in Dudley , Georgia and shipments commenced from the recently re - started OSB mill in Chambord , Quebec • Repurchased $ 102 million of WFG shares for cancellation under Normal Course Issuer Bid • Executing on plan to redeem Norbord Notes and retire $ 665 million of debt • Finished the quarter with liquidity at $ 2.551 billion and net debt to capital ratio of ( 3 % ) Results Compared to Previous Periods ( $ millions except earnings per share ( " EPS " ) ) Sales Q1-21 Q4-20 Q1-20 2,343 1,294 890 Adjusted EBITDA1 1,0082 453 68 Operating earnings 879 395 9 Earnings 665 282 9 Basic EPS ( $ ) 6.96 Diluted EPS ( $ ) 6.96 4.09 4.09 0.13 ( 0.09 ) Throughout this news release , reference is made to Adjusted EBITDA , and liquidity ( collectively " Non - IFRS measures " ) . For information on 1. these Non - IFRS measures see below under the heading " Non - IFRS Measures " . 2 . Cost of products sold was increased and Adjusted EBITDA decreased by a one - time charge of $ 93 million related to inventory purchase price accounting . Operational Results Summary The acquisition of Norbord was completed on February 1 , 2021. As a result of the acquisition , we have combined the North American operations of Norbord and our Panels segment and renamed that segment North America ( " NA " ) Engineered Wood Products ( " EWP " ) . In addition , we have created a Europe EWP segment that includes the results from the United Kingdom ( " U.K. " ) and Belgium operations . Our Lumber segment generated operating earnings in the quarter of $ 607 million ( Q4-20 - $ 385 million ) and Adjusted EBITDA of $ 646 million ( Q4-20 - $ 425 million ) . Prior quarter operating earnings included a $ 95 million duty recovery related to the AR1 duty rate finalization . Adjusted EBITDA , which includes duties , increased due to higher lumber prices , partially offset by lower shipment volumes that were negatively impacted by seasonal railcar shortages in Canada and a period of extreme winter conditions in the U.S. South . Higher SPF log costs resulting from B.C. fiber shortages and higher B.C. and Alberta stumpage rates also negatively impacted Adjusted EBITDA compared to the prior quarter . Commissioning at Dudley continues on track and all major machine centres have now been operationalized . Our NA EWP segment generated operating earnings in the quarter of $ 299 million ( Q4-20 - $ 44 million ) and Adjusted EBITDA of $ 353 million ( Q4-20 - $ 48 million ) . Segment operating earnings and Adjusted EBITDA were decreased by a one - time charge of $ 86 million related to inventory fair value adjustments from purchase price accounting . The addition of our OSB operations from the date of the Norbord acquisition , higher plywood pricing and robust plywood demand positively impacted the NA EWP operating earnings for the quarter . These positive drivers of operating earnings were partially offset by purchase price accounting related to the Norbord acquisition that increased cost of products sold and increased levels of amortization . Higher log costs from increased B.C. , Alberta and Ontario stumpage rates , higher resin costs and increased costs from the extreme weather in the U.S. south also negatively impacted operating earnings . Production levels at Chambord continue to gradually increase toward targeted levels in line with expectations . Our Pulp & Paper segment generated operating earnings in the quarter of $ 2 million ( Q4-20 - loss of $ 28 million ) and Adjusted EBITDA of $ 11 million ( Q4-20 - negative $ 20 million ) while the Europe EWP segment