Weyerhaeuser posts Q1 gains
Braced by strong sales of wood products, Federal Way, Wash.-based Weyerhaeuser Co. reported net earnings of $144 million for the first quarter. This compares with net earnings before special items of $9 million for the same period last year.
Net sales for the first quarter of 2013 rose 33% to $2.0 billion, compared with net sales of $1.5 billion for the first quarter of 2012.
"Our Wood Products business reported its strongest quarterly earnings since 2005, as we effectively leveraged operational improvements in a strengthening housing market," said Dan Fulton, president and CEO.
The Wood Products segement’s contribution to earnings soared to $178 million in the first quarter, compared with $38 million the fourth quarter last year.
The company’s business segments are timberlands, wood products, fiber and real estate.
Fulton added that the improved performance was matched by an 18% increase to the company’s quarterly dividend.
Weyerhaeuser said it expects higher sales volumes across all product lines of its Wood Products segment in the second quarter, offset by slightly lower average selling prices for lumber and oriented strand board and slightly higher raw material costs.
Builders FirstSource posts inflation-aided sales gain
Dallas-based Builders FirstSource saw sales surge in the first quarter — up 45.7% to $319.7 million.
"We were able to achieve top-line growth of greater than 30% for a sixth consecutive quarter," said CEO Floyd Sherman. "Our sales increase once again exceeded the increase in residential construction activity, as actual single-family housing starts in the South Region increased 27.4% and single-family units under construction increased 23.2%."
Despite the top-line success, the company faced downward pressure on margins due to rising prices of commodity lumber, according to Chad Crow, senior VP and CFO. "While we were able to obtain price increases from many of our customers during the quarter, they were not enough to offset the continued commodity price inflation," he said.
Net loss for the first quarter of 2013 was $11.8 million, compared with a net loss of $19.2 million in the first quarter of 2012.
Sherman added: "We are excited about the prospects for the home-building industry, and the outlook continues to suggest favorable opportunities for Builders FirstSource. The National Association of Homebuilders is now predicting a 24.2% increase in single-family housing starts for 2013, and an additional 28.8% increase in 2014. We believe Builders FirstSource is well positioned to take advantage of this recovery. Our strategy remains focused on increasing our market share and improving our operating margins as we move into the spring and summer building season."
Lumberyard hits six-decade milestone
Cascade, Iowa-based Cascade Lumber Company, a family-owned and operated retail lumberyard, is celebrating its 60th year of operation in 2013. Operating from a single location in eastern Iowa, Cascade Lumber operates a lumberyard in addition to a full-service home center serving retail and contactor customers. In addition, floor covering sales and installation are conducted from the Cascade location and a second outlet in nearby Monticello, Iowa.
Cascade Lumber Company has a subsidiary company, Cascade Manufacturing Company, which furnishes wood and cold-formed steel truss and wall panels for residential, commercial and agricultural projects throughout the Midwest.
The yard is holding a Founders Day Friday, May 17, which is for the community and customers. And an employee appreciation day with new and former emplyoyees is set for Sunday, May 19.
Cascade Manufacturing also operates an engineered wood distribution center carrying a complete line of I-joists, LVL and LSL products.
The diversity in products and markets has allowed for continued growth during the company’s 60-year history.