West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q1 2011 Earnings Presentation
12 slides from West Fraser Timber's earnings presentation, May 3, 2011
Slide 1: First Quarter 2011 Results
First Quarter 2011 Results May 3, 2011
Slide 2: Forward-Looking Statements, EBITDA and Benchmark Prices
Forward-Looking Statements, EBITDA and Benchmark Prices Please see our cautionary statements concerning forward-looking statements, EBITDA and benchmark prices contained in our 2010 Management’s Discussion and Analysis which is on our website (www.westfraser.com) and on SEDAR (www.sedar.com). These
Slide 3: First Quarter 2011 Highlights
First Quarter 2011 Highlights Summary Financial Results Lumber Panels Pulp & Paper Consolidated Outlook 3 3
Slide 4: Q1 2011 Highlights
Q1 2011 Highlights Financial This is the first quarter of reporting under the new international accounting standards (“IFRS”) Continuing positive earnings and cash flows Canadian dollar averaged over par – $1.015 Markets Prices stable in Q1 Lumber markets softened toward end of the quarter Lower shi
Slide 5: Lumber
Lumber (Canadian $ millions) Q1/11 Q4/10 Q1/10 Sales 411 418 409 EBITDA 55 41 66 EBITDA Margin 13% 10% 16% Lumber price summary SPF 2X4 benchmark price up 10% - US$296 (Q4 - US$269) SYP 2X4 #2 West benchmark price up 14% - US$308 (Q4 - US$270) Shipments down 6% - 1,112 MMfbm (Q4 - 1,187 MMfbm) Produ
Slide 6: Panels
Panels (Canadian $ millions) Q1/11 Q4/10 Q1/10 Sales 91 94 100 EBITDA 4 6 11 EBITDA Margin 4% 7% 11% Plywood Benchmark prices up marginally - Cdn$307 (Q4 - Cdn$301) Shipments down 14% at 178 Mmsf (Q4 - 208 Mmsf) Production up slightly at 196 Mmsf (Q4 - 190 Mmsf) MDF Benchmark prices down 2% at US$53
Slide 7: Pulp & Paper
Pulp & Paper (Canadian $ millions) Q1/11 Q4/10 Q1/10 Sales 209 230 204 EBITDA 47 49 42 EBITDA Margin 22% 21% 21% Benchmark NBSK pulp prices basically unchanged - US$970 (Q4 - US$967) Shipments down 9% at 319,000 tonnes (Q4 – 349,000 tonnes) Production down 4% at 323,000 tonnes (Q4 - 336,000 tonnes)
Slide 8: Consolidated Financial Results
Consolidated Financial Results Revenue and Earnings (Canadian $ millions) Q1/11 Q4/10 Q1/10 Sales 687 719 688 Operating earnings 35 43 57 Earnings from continuing operations 20 28 38 Earnings 19 43 29 Diluted EPS from continuing operations $0.46 $0.65 $0.89 Diluted EPS after discontinued operations
Slide 9: Consolidated Financial Results: Cash Flows
Consolidated Financial Results Cash Flows (from continuing operations) (Canadian $ millions) Q1/11 Q4/10 Q1/10 Cash from Operations 33 31 186 Non-Cash Working Capital Changes (89) (53) (112) Capital Spending, net of GTP (12) (12) (28) Financing (6) (14) (46) Dividends (6) (3) (1) Other 1 (1) (3) Cha
Slide 10: Consolidated Financial Results: Balance Sheet
Consolidated Financial Results Balance Sheet (Canadian $ millions) End of Q1/11 Q4/10 Q1/10 Working Capital 447 400 231 Property, Plant, Equipment & Timber 1,401 1,434 1,511 Other Assets 400 387 403 Other Liabilities 383 387 382 Long-term Debt 292 300 305 Shareholders’ Equity 1,573 1,534 1,458 Net D
Slide 11: Short-term Outlook
Short-term Outlook Lumber Demand very soft due to continued low U.S. housing starts Lumber prices will remain under pressure as a result Demand in China should continue to increase Panels U.S. plywood imports will most likely continue until the Canadian dollar weakens or U.S. housing improves Plywoo
Slide 12: Longer-term Outlook
Longer-term Outlook Lumber Positive outlook for lumber as demand improves due to § US home construction returns to trend levels § Growing demand in new markets (China, India, etc.) Sustained higher lumber prices should reduce trade friction with U.S. Pulp Growing demand in Asia should offset growth