The following is a summary of the West Fraser Timber Co. Ltd. (WFG) Q3 2024 Earnings Call Transcript:

Financial Performance:

• West Fraser reported Q3 2024 adjusted EBITDA of $62 million, down due to a $32 million lumber export duty expense.

• On a trailing 4-quarter basis, adjusted EBITDA was $630 million, an improvement from $561 million at year-end 2023.

• The North America Engineered Wood Products (EWP) segment generated $121 million of adjusted EBITDA, with overall performance impacted by lower prices.

Business Progress:

• West Fraser focused on cost control and optimizing mill operations.

• Indefinite curtailment of 110 million board feet at the Lake Butler lumber mill and reduction of shifts at other mills.

• Continued ramping production at the Allendale OSB mill, expected to be one of the lowest cost facilities.

• Adjusted volume targets upwards for SPF shipments due to better-than-expected demand, maintaining guidance for SYP shipments, and increasing North American OSB shipment expectations.

Opportunities:

• Anticipates supportive industry demand due to end of the Fed's rate hiking cycle and stabilization in the supply-demand balance.

• Plans to leverage modernization investments in mills to enhance cost efficiency and product competitiveness.

Risks:

• Persistent challenges in the repair and remodeling markets could impact demand for SYP lumber.

• Softwood lumber duties with a combined rate of approximately 11.9% affecting financial performance.

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