West Fraser Timber Co. says its earnings declined to $216 million in the third quarter of 2022, as inflationary cost pressures and slowing demand for the company's products took a bite out of its financial results.

The Vancouver-based company says it earned $2.50 per diluted share for the period ended Sept. 30, 2022, compared to $460 million, or $4.20 per diluted share in the same period of 2021.

The company reported total revenue from sales of $2.09 billion, compared to $2.36 billion in the prior year's quarter.

West Fraser says it is experiencing inflationary cost pressures across much of its supply chain, as well as availability constraints for labour and raw materials such as resins and chemicals, transportation and energy.

The company also announced Wednesday plans to redevelop its facility in Henderson, Texas by constructing a new mill next to the existing mill.

Capital investment for the new mill is an estimated $255 million with the start of construction expected to take place in the fourth quarter of this year.