West Fraser Timber Co. Ltd. (NYSE:WFG) Q2 2022 Earnings Conference Call July 28, 2022 11:30 AM ET
Company Participants
Ray Ferris - President and Chief Executive Officer
Chris Virostek - Chief Financial Officer
Chris McIver - Senior Vice President, Marketing and Corporate Development
Conference Call Participants
Sean Steuart - TD
Hamir Patel - CIBC
Mark Wilde - BMO
Paul Quinn - RBC
Operator
Good morning, ladies and gentlemen, and welcome to the West Fraser Q2 2022 Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions]
During this conference call, West Fraser's representatives will be making certain statements about West Fraser's future financial and operational performance, business outlook capital plans. These statements may contain forward-looking information or forward-looking statements within the meaning of Canadian and United States securities law. Such statements involve certain risks, uncertainties and assumptions which may cause West Fraser's actual or future results and performance to be materially different from those expressed or implied in these statements. Additional information about these risks, factors and assumptions is included both in the accompanying webcast presentation and in our 2021 annual MD7A and annual information form, which can be accessed on West Fraser's website or through SEDAR for Canadian investors and EDGAR for United States Investors. This call is being recorded on Thursday, July 28, 2022.
And I would like to turn the conference over to Mr. Ray Ferris. Please go ahead, sir.
Ray Ferris
Thank you, Sylvie, and well done. So listen, good morning, everyone, and thank you for joining our second quarter 2022 earnings call today. So I'm Ray Ferris, President and CEO of West Fraser, and I'm joined by Chris Virostek, our Chief Financial Officer; and Chris McIver, our Senior VP, Marketing, Corporate Development; and several other members of our executive team. I'll begin with review of key highlights of West Fraser's second quarter results and then pass the call to Chris for additional comments.
In the second quarter, West Fraser achieved strong financial results in the face of ongoing transportation and logistics challenges. As you may recall, to recent quarters, transportation challenges had been particularly acute and a longer duration than we and others had originally expected.
However, we did see a start of the signs of improvement in the second quarter, and that trend has continued early into the third quarter. Demand for wood base building products was robust in the second quarter, generating USD 1.12 billion of adjusted EBITDA, representing a margin of 39% of sales.