LUMBERYARDS

Weyerhaeuser chooses ATFS for preferred supplier

BY Brae Canlen

Weyerhaeuser Co. has announced its official preference for purchasing wood that is certified under the American Tree Farm System (ATFS), a program of the American Forest Foundation. More than 89,000 family forest owners managing 27 million acres of forestland are part of the American Tree Farm System.

“Weyerhaeuser’s announcement is just what certified tree farmers have been waiting for," said Tom Martin, president and CEO of the American Forest Foundation. "Healthy forests need healthy markets because protecting your trees against insects, disease and catastrophic fire can be expensive. These landowners are hardworking people who want to keep their forests as forests, and keep them in their family."

All the timberlands Weyerhaeuser owns or manages in North America are certified to the Sustainable Forestry Initiative (SFI) system. In addition, all the company’s manufacturing facilities in North America are certified to the SFI Certified Sourcing Standard.

"Buyers want to know their wood comes from sustainably managed forests," Fulton added. "To give our customers what they want, we need more wood from certified Tree Farms."

The preference for American Tree Farm System-certified wood will be implemented at Weyerhaeuser through a number of measures, including:

 Incentives: The company will maintain a priority market for material from certified Tree Farms, especially when suppliers are put on quotas.

• Procurement decisions: Where a Vendor Management Plan is used (which scores wood suppliers on a number of metrics) Tree Farm certification will be a positive attribute.

• Policies and Tracking: The company will declare support for the American Tree Farm System in its wood procurement policy and it will track its use of wood from certified Tree Farms.

• Support expansion of the American Tree Farm System: The company will offer landowner assistance to encourage Tree Farm certification and the management of forests to American Tree Farm System Standards of Sustainability.

"Most of our customers want certified wood and paper products," said Dan Fulton, president and CEO of Weyerhaeuser. "There is widespread understanding of the value of certification, and encouraging best practices remains by far the most important role for certification.

"Buyers want to know their wood comes from sustainably managed forests," Fulton added. "To give our customers what they want, we need more wood from certified tree farms."

Based in Federal Way, Wash., Weyerhaeuser is one of the world’s largest forest products companies, with $6.2 billion in sales last year from continuing operations.

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KB Home Q2 net loss narrows

BY HBSDealer Staff

Los Angeles-based KB Home reported a second quarter net loss of $24.1 million, compared with a net loss of $68.5 million in the year-earlier quarter.

For the second quarter ended May 31, revenues totaled $302.9 million, up 11% from $271.7 million for the second quarter of 2011. The company pointed to an increase in the number of homes delivered and a higher average selling price.

Three of the company’s four home-building regions posted year-over-year growth, with revenues up 24% in the West Coast region, 5% in the Southeast region and 4% in the Central region.

KB Home delivered 1,290 homes, up 2% from the year-earlier quarter, with increases of 13% and 5% in the company’s Central and Southeast regions, respectively, partly offset by decreases in the West Coast and Southwest regions.

"Our second-quarter results reflect the continued repositioning of our operations and investments to stronger, highly desirable, land-constrained submarkets that support sales of larger, higher-priced homes to our core first-time and first move-up customers," said Jeffrey Mezger, president and CEO. "The impact of our strategic product and community placement can be seen in our improved financial and operating results in the quarter as we pursue our goal of returning to profitability.

"Entering the second half of 2012, we have a strong backlog of homes with higher selling prices and better margins to help restore profitability, and we anticipate achieving further gains in our margin performance as our revenue growth and cost-management efforts take hold.”

For the six months ended May 31, the company reported a net loss of $69.9 million, compared with a net loss of $183.0 million in the first six months of 2011. Revenues totaled $557.4 million, up 19% from $468.7 million for the year-earlier period. 

Homes delivered increased 10% to 2,440, up from 2,214 homes delivered in the year-earlier period. 

The home builder was recently recognized by the U.S. Environmental Protection Agency with a company-record 14 Energy Star Leadership in Housing Awards. The company has built more than 68,000 Energy Star homes since joining the program in 2000.

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GSC becomes stocking distributor for Georgia-Pacific engineered lumber

BY HBSDealer Staff

Georgia Structural Components (GSC), the newly formed wholesale division of Short & Paulk Supply in Tifton, Ga., has recently become a stocking distributor for Georgia Pacific engineered lumber products.

"We’ve been making roof trusses in our Tifton Truss plant for years," said S&P CEO Jay Short. "It just makes sense to expand our offering to the wholesale trade with engineered wood products like GP’s Wood I Beam joists and Laminated Veneer Lumber. Now we have our customers’ needs covered from floor to roof with these trustworthy structural wood products."

GSC distributes roof trusses and Georgia-Pacific engineered wood products through the four Short & Paulk retail locations and its growing network of dealer locations. There are currently more than 15 dealer locations within 150 miles of GSC’s Tifton manufacturing facility.

In addition to its Tifton location, Short & Paulk operates lumberyards in Albany, Sylvester and Dawson.

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