VANCOUVER — West Fraser Timber Co. Ltd. says its net profit soared 64 per cent from a year ago to US$1.09 billion in its latest quarter on higher revenues despite significant transportation and mill challenges in B.C.
The Vancouver-based company, which reports in U.S. dollars, said it earned US$10.25 per diluted share in the first quarter, up from US$6.96 per share or US$665 million a year earlier.
Revenues for the three months ended March 31 were US$3.11 billion, up 33 per cent from US$2.3 billion in the first quarter of 2021.
West Fraser was expected to earn US$9.45 per share on US$2.93 billion of revenues, according to financial data firm Refinitiv.
Chief executive Ray Ferris said the challenges that were exacerbated by Canadian winter weather were offset by continued strong demand.
However, the company said demand for new home construction and wood building products could be reduced by rising interest rates.
“While we continue to monitor rising mortgage rates and the potential risk to demand for new home construction and our wood building products, fundamentals for housing and repair and remodelling activity appear favourable,” he said in a news release.
This report by The Canadian Press was first published April 28, 2022.
Companies in this story: (TSX:WFG)
The Canadian Press