Western Forest Products (WFP) says the strike that began in July “significantly impacted” its fourth-quarter results in 2019.
The company released it’s financial report Wednesday, saying it recorded a net loss of $29.2 million in the fourth quarter of 2019, compared to a net income of $5.3 million in the same quarter a year earlier.
WFP also had a net loss of $18.7 million in the third quarter of 2019.
The company says generated revenue of $80.1 million in the quarter, well short of the $284.8 million in the fourth quarter of 2018, and $141.6 million in the third quarter of 2019.
In its report, WFP said it partially mitigated the impacts of the strike by selling unencumbered lumber and log inventories during the fourth quarter.
Annual revenue was down in 2019 to $807.7 million in 2019, nearly $400 million short of revenue it reported in 2018.
“In the fourth quarter, we continued to focus on limiting the impact of the USW strike on our customers and
our financial position by managing our debt levels,” WFP President and Chief Executive
Officer Don Demens said in a statement.
“With terms of a tentative collective agreement reached with the USW, we look forward to bringing people back to work following the completion of the ratification process.”
On Monday, a tentative agreement was announced between WFP the United Steelworkers Local 1-1937, after an over seven-month strike.
The union’s members will hold a vote on the proposed deal Thursday in Port Alberni, Ladysmith and Powell River.
Voting will also take place Friday in Port McNeill, Gold River and Campbell River.
No details of the proposed deal have been released.