West Fraser Timber Co. Ltd. reported a larger second-quarter loss as weaker sales and continued market pressures weighed on its financial performance, while the company also faces uncertainty surrounding new U.S. tariffs on Canadian wood products.
The Vancouver-based manufacturer posted a net loss of US$61 million for the second quarter, compared with a US$24 million loss during the same period last year.
The quarterly result translated into a loss of US$0.78 per diluted share, widening from a US$0.38 per diluted share loss reported a year earlier.
Revenue also declined during the quarter. West Fraser generated US$1.43 billion in sales, down from US$1.53 billion in the second quarter of the previous year.
The results come as the North American forest products industry prepares for additional trade uncertainty. Earlier in July, the U.S. government announced plans to introduce a 50% tariff on hundreds of categories of Canadian products, including several types of plywood, paper and other wood-based materials. The proposed measures are scheduled to take effect on August 19.
West Fraser said it is closely monitoring both the scope of the new tariffs and how their implementation could affect its operations and market conditions.
Despite the short-term challenges, President and CEO Sean McLaren expressed confidence in the company’s long-term outlook. He said West Fraser continues to view the U.S. residential construction market positively, pointing to the ongoing housing supply shortage as a key driver of future demand for building materials.
