West Fraser Timber Co. Ltd. · TSX:WFG
West Fraser Timber — Q4 2010 Earnings Presentation
12 slides from West Fraser Timber's earnings presentation, Feb 17, 2011
Slide 1: Fourth Quarter 2010 Results
Fourth Quarter 2010 Results February 17, 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: Fourth Quarter 2010 Highlights
Fourth Quarter 2010 Highlights Summary Financial Results Lumber Panels Pulp & Paper Discontinued Operations Consolidated Outlook 3 3
Slide 4: Q4 2010 Highlights
Q4 2010 Highlights Financial Continuing positive earnings and cash flows despite lower pulp and plywood prices Net cash balance of $163 million at end of Q4 Capital spending approval for $230 million mainly in lumber business Committed revolving facility extended to 2014 Canadian dollar strengthened
Slide 5: Lumber
Lumber (Canadian $ millions) Q4/10 Q3/10 Q4/09 Sales 418 423 324 EBITDA 39 49 11 EBITDA Margin - % 9.3 11.5 3.5 Lumber price summary SPF 2X4 benchmark price up 21% - US$269 (Q3 - US$222) SYP 2X4 #2 West benchmark price up 9% - US$270 (Q3 - US$248) Shipments down 3% - 1,187 MMfbm (Q3 - 1,219 MMfbm) P
Slide 6: Panels
Panels (Canadian $ millions) Q4/10 Q3/10 Q4/09 Sales 94 107 94 EBITDA 6 20 17 EBITDA Margin - % 6.6 18.3 18.1 Plywood Benchmark prices decreased 8% - Cdn$301 (Q3 - Cdn$327) Shipments down 5% at 208 Mmsf (Q3 - 218 Mmsf) Production down 6% at 190 Mmsf (Q3 - 203 Mmsf) MDF Benchmark prices down 3% at US
Slide 7: Pulp & Paper
Pulp & Paper (Canadian $ millions) Q4/10 Q3/10 Q4/09 Sales 230 204 177 EBITDA 44 55 31 EBITDA Margin - % 19.1 26.8 17.2 Benchmark NBSK pulp prices down 3% - US$967 (Q3 - US$1,000) Shipments up 23% at 349,000 tonnes (Q3 - 284,000 tonnes) Production comparable at 336,000 tonnes (Q3 - 337,000 tonnes) R
Slide 8: Discontinued Operations
Discontinued Operations (Canadian $ millions) Q4/10 Q3/10 Q4/09 Earnings from discontinued operations 12 (2) (28) Eurocan mill closed January 2010 Product sales from inventory nearly complete Paper machines sold – further asset dispositions expected to continue through 2011 8 8
Slide 9: Consolidated Financial Results
Consolidated Financial Results Revenue and Earnings (Canadian $ millions) Q4/10 Q3/10 Q4/09 Sales 719 707 570 Operating earnings 38 63 (2) Earnings from continuing operations 27 46 8 Net Earnings 39 45 (20) Diluted EPS from continuing operations - $ 0.61 1.07 0.18 Diluted EPS after discontinued oper
Slide 10: Consolidated Financial Results: Cash Flows
Consolidated Financial Results Cash Flows (from continuing operations) (Canadian $ millions) Q4/10 Q3/10 Q4/09 Cash from Operations 23 79 25 Working Capital Changes (63) 37 (71) Capital Spending (13) (10) (7) Dividends (3) (3) (1) Other - 3 3 Change in cash from continuing operations, excluding debt
Slide 11: Consolidated Financial Results: Balance Sheet
Consolidated Financial Results Balance Sheet (Canadian $ millions) End of Q4/10 Q3/10 Q4/09 Working Capital, excluding net debt 273 226 398 Property, Plant & Equipment 1,502 1,531 1,624 Other Assets 513 471 485 Other Liabilities 375 378 384 Total Debt, net 148 113 505 Shareholders’ Equity 1,765 1,73
Slide 12: Outlook
Outlook Lumber Continued low U.S. housing starts and lumber demand will put downward pressure on lumber prices Demand in China supporting increased shipments Panels U.S. plywood imports will likely continue until the Canadian dollar weakens or U.S. housing improves Pulp Prices expected to strengthen