VANCOUVER, British Columbia -- West Fraser Timber Co. Ltd. reported negative earnings of $131 million (U.S.) on revenues of $1.6 billion in the second quarter.

Ray Ferris, president and CEO of West Fraser, noted that the challenging market demand for the company’s pulp and paper segment was the most significant factor for the company’s Q2 loss.

Despite economic headwinds tied to inflation and increased mortgage rates, the company remains optimistic for the future, particularly for its building products segment. 

“The most significant uses for our North America lumber, OSB and wood panel products are residential construction, repair and remodeling, and industrial applications,” the company said. “Over the medium term, we expect that an aging housing stock and greater entrenchment of work-from-home flexibility will help to offset near-term headwinds from higher interest rates and spur repair and renovation spending that supports lumber, plywood and OSB demand. Over the longer term, growing market penetration of mass timber in industrial and commercial applications is also expected to become a more significant source of demand growth for wood building products in North America.”