West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q2 2010 Earnings Presentation
13 slides from West Fraser Timber's earnings presentation, Jul 23, 2010
Slide 1: Second Quarter 2010 Results
Second Quarter 2010 Results July 23, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains historical information, descriptions of current circumstances and statements about potential future developments and anticipated financial results. The latter, which are forward-looking statements, are presented to provide reasonable guidance to
Slide 3: Q2 2010 Results
Q2 2010 Results Q2 2010 Highlights Lumber Panels Pulp & Paper Eurocan Summary Financial Results Summary Debt Position Outlook 3
Slide 4: Q2 2010 Highlights
Q2 2010 Highlights (Canadian $ millions) Q2/10 Q1/10 Q2/09 Earnings From continuing operations 62 35 (23) After discontinued operations 63 20 (39) EBITDA 151 103 8 EBITDA Margin 20% 15% 1% All segments contributed to earnings in the quarter 4
Slide 5: Lumber
Lumber (Canadian $ millions) Q2/10 Q1/10 Q2/09 EBITDA 75 66 1 EBITDA Margin 16% 16% 0% Lumber price summary SPF 2X4 benchmark price - US$264 (Q1 - US$269) SYP 2X4 #2 West benchmark price - US$377 (Q1 - US$322) Shipments up 8% over Q1 Operating rate improved Production up 11% at 1,223 Mmfbm (Q1 –1,10
Slide 6: Panels
Panels (Canadian $ millions) Q2/10 Q1/10 Q2/09 EBITDA 20 11 5 EBITDA Margin 19% 11% 5% Plywood Benchmark prices increased to Cdn$377 (Q1 - Cdn$332) Shipments up 6% at 192 Msf (Q1 – 181 Msf) Production up 8% at 207 Msf (Q1 – 191 Msf) MDF Benchmark prices increased to US$536 (Q1 - US$473) Shipments do
Slide 7: Pulp & Paper
Pulp & Paper (Canadian $ millions) Q2/10 Q1/10 Q2/09 EBITDA 49 39 1 EBITDA Margin 22% 19% 1% Benchmark NBSK pulp prices up to US$993 (Q1 - US$880) BCTMP showed similar increases Shipments up 5% at 288,000 tonnes (Q1 - 274,000 tonnes) Pulp production down 9% at 255,000 tonnes (Q1 - 280,000 tonnes) du
Slide 8: Eurocan
Eurocan (Canadian $ millions) Q2/10 Q1/10 Q2/09 Earnings from discontinued operations 1 (15) (17) Eurocan mill closed January 2010 Product sales from inventory nearly complete Process for asset disposal expected to continue through 2010 8
Slide 9: Summary Quarterly Financial Results
Summary Quarterly Financial Results Revenue and Earnings (from continuing operations) (Canadian $ millions) Q2/10 Q1/10 Q2/09 Sales 772 688 612 Operating earnings (loss) 103 53 (50) Amortization 48 50 58 EBITDA 151 103 8 9
Slide 10: Summary Quarterly Financial Results: Cash Flows
Summary Quarterly Financial Results Cash Flows (from continuing operations) (Canadian $ millions) Q2/10 Q1/10 Q2/09 Cash from Operations 130 89 (6) Working Capital Changes 83 (8) 82 Capital Spending (6) (28) (5) Dividends (1) (1) (1) Other 1 (5) 2 Change in cash, excluding debt 207 47 72 10
Slide 11: Summary Quarterly Financial Results: Balance Sheet
Summary Quarterly Financial Results Balance Sheet (Canadian $ millions) End of Q2/10 Q1/10 Q2/09 Working Capital, excluding net debt 283 393 467 Property Plant & Equipment 1,572 1,599 1,906 Other Assets 477 481 524 Other Liabilities 393 394 423 Total Debt, net 235 452 589 Shareholders’ Equity 1,704
Slide 12: Summary Debt Position
Summary Debt Position (Canadian $ millions) Q2/10 Q1/10 Q2/09 Cash, net of cheques issued 94 (15) 1 Operating Debt 9 131 8 Long Term Debt 320 306 582 Total Debt, net 235 452 589 Debt Ratings Rating Outlook Dominion Bond Rating Service BB(high) Negative Moody’s Ba1 Negative Standard & Poor’s BB Stabl
Slide 13: Q3 - 2010 Outlook
Q3 - 2010 Outlook Lumber Continued low U.S. housing starts and lumber demand Prices lower in second half of 2010 Panels Canadian housing starts should support plywood prices Possible increase in U.S. plywood imports Pulp China demand is subsiding Prices will be under pressure in third quarter 13