Weyerhaeuser earnings and sales fall in Q2
Weyerhaeuser reported net sales of $1.6 million for the second quarter, a 5.8% drop from net sales of $.17 billion in the second quarter 2019.
Net earnings for the quarter dropped to $72 million as compared to net earnings of $128 million in the second quarter last year.
In a quarter-over-quarter comparison, wood product sales fell to $1.207 billion in the second quarter from sales of $1.235 billion in the first quarter of 2020.
Weyerhaeuser said that market demand for wood products declined sharply in April due to the economic impact of COVID-19 but rebounded later in the quarter.
The Seattle-based company reduced production volumes across its manufacturing facilities to align with customer demand. As the quarter progressed, Weyerhaeuser adjusted operating rates in response to improving market conditions.
The Bottom Line: While sales decreased 5.8% in the second quarter, net earnings declined more than 40% to $72 million.
What the CEO said: “I am extremely proud of the dedication and focus of our teams as they safely adapted business practices, efficiently pivoted operating postures, and capitalized on operational excellence opportunities while navigating unprecedented fluctuations in market demand,” said Devin Stockfish, president and CEO of Weyerhaeuser. “This includes delivering record low cost performance in lumber despite significant production curtailments.”
Company info: Weyerhaeuser’s full second quarter 2020 report can be accessed here.