Weyerhaeuser posts Q2 declines

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Weyerhaeuser posts Q2 declines

By HBSDealer Staff - 07/26/2019
Market and weather-related challenges affected Seattle-based Weyerhaeuser’s second-quarter performance, in which it posted sales and earnings declines.

The forest products giant reported second quarter net earnings of $128 million, on net sales of $1.7 billion. This compares with net earnings of $317 million on net sales of $2.1 billion for the same period last year.

CEO Devin Stockfish pointed to “a strong operating performance … despite various market and weather-related challenges.”

Weyerhaeuser’s wood products business generated $1.21 billion in second quarter sales, up 10% from the first quarter. It saw earnings increase compared to the first quarter due to seasonally higher sales volumes and improved per unit manufacturing costs in engineered wood products. Those gains were partially offset by a modest decline in average sales realizations for oriented strand board and slightly lower average sales realizations for lumber, the company said.

In the company’s timberlands business, forestry and road spending increased seasonally in the West, and average log sales realizations decreased. In the South, average log sales realizations were comparable, with a modest reduction in fee harvest volumes due to continued wet weather. In the North, fee harvest volumes were seasonally lower due to spring breakup, the company said.

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Bottom line: Second quarter net earnings declined to $128 million, down from $317 million in the same period last year.

What the CEO said: “Although record-setting rainfall has held back U.S. housing activity in the first half of 2019, we see solid underlying market conditions and continue to expect the housing market will follow a modest growth trajectory,” said Devin Stockfish, president and CEO.

Company information: Read Weyerhaeuser’s second quarter earnings release here.

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