West Fraser Timb Stock Price, News & Analysis

West Fraser Timber Co. Ltd. (WFG) has declared a quarterly dividend of US$0.30 per share, up from US$0.25, effective July 8, 2022, to shareholders on record by June 22, 2022. This increase reflects a commitment to returning capital to investors amidst a reduced share count due to recent issuer bids. The company emphasizes the sustainability of its dividend strategy as key to capital allocation. Dividends can be taken in Canadian dollars, and details can be found on their website.

West Fraser Timber Co. Ltd. (WFG) completed its substantial issuer bid, purchasing 11,898,205 common shares at US$95.00 each, totaling approximately US$1.130 billion. This represents about 11.7% of its outstanding shares. Following this buyback, West Fraser now has 87,473,547 common shares and 2,281,478 Class B shares outstanding. Since acquiring Norbord in February 2021, the company has repurchased 33,542,183 shares for a total of approximately US$2.812 billion. This reflects West Fraser's commitment to returning capital to shareholders while maintaining financial flexibility.

West Fraser Timber Co. Ltd. (TSX: WFG, NYSE: WFG) announced the preliminary results of its substantial issuer bid, offering to repurchase up to US$1.25 billion of common shares. The bid expired on June 2, 2022, with preliminary calculations indicating that approximately 11.898 million shares will be purchased at about US$95 each, totaling approximately US$1.130 billion. All shareholders who participated in the auction tenders and purchase price tenders are expected to have their shares purchased. The repurchase may have Canadian tax implications as a deemed dividend.

West Fraser Timber reported Q1 2022 sales of $3.110 billion and net earnings of $1,090 million ($10.25 per diluted share), marking significant growth from Q4 2021. Adjusted EBITDA also surged to $1.592 billion, representing 51% of sales. Although transportation challenges impacted supply, strong product demand mitigated these issues. The company increased its dividend to $0.25 per share and launched a substantial issuer bid of up to $1.25 billion for share repurchase. Concerns about rising interest rates could affect housing demand in North America.

On April 20, 2022, West Fraser Timber Co. Ltd. (WFG) held its Annual General and Special Meeting in Quesnel, BC, where 79.68% of shares were voted. Shareholders approved the election of all director nominees with strong support. Hank Ketcham and Reid E. Carter received 97.10% and 98.12% of votes in favor, respectively. Other key approvals included appointing PricewaterhouseCoopers LLP as the auditor and a corporate Articles amendment with 99.37% support. The Company continues to focus on diversified wood products across various markets.

West Fraser Timber Co. Ltd. (WFG) announced a substantial issuer bid to purchase up to US$1.25 billion of its common shares via a modified Dutch auction. Shareholders can submit tenders at prices between US$80.00 and US$95.00 per share, with the offer starting on April 26, 2022 and expiring on June 2, 2022. The offer aims to repurchase approximately 15% of outstanding shares. West Fraser will fund these repurchases through available cash, and any shares not purchased will be returned to shareholders.

West Fraser Timber Co. Ltd. (WFG) announced a strategic shift at its Hinton, Alberta pulp mill, permanently reducing capacity by ceasing one production line. The remaining line will transition to producing Unbleached Kraft Pulp (UKP) instead of Northern Bleached Softwood Kraft Pulp (NBSK). This change aims to reduce operational costs and greenhouse gas emissions by approximately 35%. The adjustment will lower staffing from 345 to 270, with plans to mitigate impacts through attrition and redeployment. An impairment charge of about US$13 million is anticipated in Q1 2022 due to equipment write-downs.

West Fraser Timber Co. Ltd. (WFG) announced a conference call scheduled for April 29, 2022, at 8:30 a.m. PT to discuss its first quarter 2022 financial and operational results. Interested participants can join via phone or webcast. The results will be released on April 28, 2022. West Fraser operates over 60 facilities across Canada, the U.S., the U.K., and Europe, producing a range of wood products and renewable energy from sustainably sourced resources. The company focuses on markets including home construction, industrial applications, and packaging materials.

West Fraser Timber Co. Ltd. (WFG) will participate in the Raymond James 43rd Annual Institutional Investors Conference on March 7, 2022. The event features a conversation with President & CEO Ray Ferris at 3:25 p.m. Eastern Time. Interested parties can access the live webcast on the company's website, with a replay available afterward. West Fraser is a diversified wood products company operating over 60 facilities across Canada, the U.S., the U.K., and Europe, producing a wide array of wood products for construction, industrial applications, and renewable energy.