West Fraser(US:WFG)2022-08-26 14:25Q2 2022 Financial Performance - West Fraser's Q2 2022 sales were $2.887 billion, compared to $3.110 billion in Q1 2022[7] - The company's Q2 2022 earnings were $762 million, down from $1.090 billion in Q1 2022[7] - Adjusted EBITDA for Q2 2022 was $1.124 billion, with an adjusted EBITDA margin of 39%, compared to $1.592 billion and 51% respectively in Q1 2022[7] - Lumber shipments increased to 1.599 billion board feet in Q2 2022 from 1.369 billion board feet in Q1 2022[15] - North American OSB shipments increased to 1.568 billion square feet (3/8") in Q2 2022 from 1.429 billion square feet (3/8") in Q1 2022[15] Outlook and Strategy - West Fraser anticipates SPF shipments of 2.8 to 3.0 billion board feet and SYP shipments of 3.0 to 3.2 billion board feet for 2022[21] - The company expects North American OSB shipments of 5.9 to 6.2 billion square feet (3/8") and Europe OSB shipments of 1.0 to 1.2 billion square feet (3/8") for 2022[21] - Capital expenditures for 2022 are projected to be between $500 million and $600 million[21] - West Fraser repurchased 16.0 million shares for $1.48 billion and raised the quarterly dividend to $0.30 per share[26] Market and Industry Position - West Fraser is North America's largest lumber producer, with a 2021 capacity of 7.0 billion board feet[181, 184] - The company is a leading OSB producer with a total capacity of 9.6 billion square feet (3/8"), with 50% in the US, 34% in Canada and 16% in Europe[187, 188] - Mass timber is projected to drive an additional 3.8 to 6.8 billion board feet of lumber demand in North America between 2025 and 2035[99]