Weyerhaeuser reported fourth quarter 2020 sales jumped 40% to $2.1 billion compared to fourth quarter 2019 sales of $1.5 billion.
Sales for fiscal 2020 increased 15% to $7.53 billion from sales of $6.55 billion in the prior year.
The Seattle-based forest and wood products giant posted net earnings of $292 million for the fourth quarter, marking a big swing from a net loss of $14 million during same period a year ago.
Net earnings for the year climbed to $797 million from a loss of $76 million in 2019.
The company said that it expects improved manufacturing costs across product lines and slightly higher sales volumes, primarily for lumber and engineered wood products.
To date, first quarter benchmark pricing for lumber and oriented strand board is significantly higher than the fourth quarter average, Weyerhaeuser said.
The Bottom Line: Weyerhaeuser swings to big profits and reports fourth quarter 2020 net earnings of $292 million compared to a loss of $14 million in the fourth quarter of 2019.
What the CEO said: "In 2020 each of our businesses delivered remarkable results in the face of unprecedented operating and market challenges," said Devin Stockfish, president and CEO. "Our teams delivered the highest wood products adjusted EBITDA on record, achieved record low cost performance in lumber, and captured approximately $100 million of operational excellence improvements across our businesses, all while demonstrating an unwavering commitment to safety. In addition, we reduced gross debt by more than $900 million, implemented a new dividend framework, strategically upgraded our Oregon timberland holdings and launched a new sustainability strategy.”
“As we embark on 2021, we are encouraged by the macroeconomic tailwinds that continue to bolster strong U.S. housing and repair and remodel markets, and we remain focused on creating value for shareholders through our unrivaled portfolio of assets, industry-leading operating performance and disciplined capital allocation,” Stockfish added.
Company info: The full fourth quarter 2020 report from Weyerhaeuser can be read here.