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."