VANCOUVER — Western Forest Products Inc. beat expectations as the company earned $8.5 million in its latest quarter on a 17-per-cent drop in revenues over uncertainty related to COVID-19.
The Vancouver-based company says it earned two cents per share in the second quarter, compared with zero cents per share or a loss of $700,000 a year earlier.
Revenues for the three months ended June 30 were $256.3 million, down from $310.3 million in the prior year.
Western Forest Products was expected to report no profits on $153.5 million of revenues, according to financial markets data firm Refinitiv.
Lumber and log sales fell 19 per cent to $188.8 million on market uncertainty and delayed shipments due to COVID-19 with volumes decreasing 28 per cent to 152 million board feet. Prices increased 12 per cent as a result of higher specialty product mix and a weaker Canadian dollar.
Western Forest Products says $10.7 million of Canada Emergency Wage Subsidy funding prevented curtailments and layoffs in the quarter.
"We successfully re-established our business after the lengthy strike and despite considerable uncertainty caused by COVID-19," said CEO Don Demens, referring to a strike by the United Steelworkers union that ended in the first quarter with restarting of its Cowichan Bay sawmill.
This report by The Canadian Press was first published Aug. 7, 2020.
Companies in this story: (TSX:WEF)
The Canadian Press