Weyerhaeuser backtracks in the second quarter
Weyerhaeuser Company pointed to a 34% earnings increase compared with the first quarter, but the second-quarter performance was behind last year's second quarter.
Net sales for the three months ended June 30 were $1.81 billion, down 7.7% from $1.96 billion in the year-ago period.
Growth in Wood Products and Cellulose Fibers was offset by decreases in Timberlands, with Western domestic and export log sales realizations down. Weyerhaeuser also expects slightly lower earnings from the Timberlands segment in the third quarter.
Net earnings of $133 million also represented a sharp decline from last year's $280 million.
"Each of our businesses delivered solid second quarter operating results, as operational excellence efforts helped mitigate the delayed arrival of the spring building season and the continuing challenge of a strong U.S. dollar," said Doyle Simons, president and CEO. "In addition, we repurchased over $150 million of common shares in the quarter and neared completion of our existing authorization. Looking forward, we are well positioned to capitalize on the improving housing market, and we remain relentlessly focused on driving value for our shareholders through operational improvements and disciplined capital allocation."
Newell’s Q2 performance leads to raised guidance
Newell Rubbermaid considered its second-quarter performance to be strong enough for a raised full-year outlook.
Net sales for the quarter were $1.56 billion, up 3.9% from $1.50 billion in the year-ago period.
Net income decreased, however, from $150.6 million in the second quarter of 2014 to $148.5 million this year.
The company also netted 5.1% core sales growth and a 40.0% normalized gross margin (a 10 basis point improvement from last year).
“We have posted a strong set of second quarter results with core sales growth of 5.1% and normalized earnings per share growth of 8.5%, despite unprecedented foreign exchange pressure on earnings,” said Michael Polk, president and CEO. “Core sales grew in all five of our segments and in all four geographic regions."
Full-year core sales guidance was revised up to 4% to 5% (from a range of 3.5% to 4.5%), and normalized EPS guidance was revised to $2.14 to $2.20 from $2.10 to $2.18.
“Our strong second quarter results represent another milestone in our journey to establish Newell’s story of both category leading growth and margin development," said Polk. "Our current growth momentum, our plans for strong innovation and increased brand support in the second half and continued cost benefits from Project Renewal give us the confidence to raise our guidance for full year 2015 core sales growth to 4 to 5 percent and normalized EPS to $2.14 to $2.20, or 7 to 10 percent above prior year.”