High lumber prices provided a big lift to Weyerhaeuser sales and earnings in the first quarter.
Weyerhaeuser reported first quarter sales soared 45% to $2.5 billion from first quarter 2020 sales of $1.7 billion.
The forest products and timberlands company also posted net earnings of $681 million for the quarter, marking a dramatic escalation from net earnings of $150 million for the same period a year ago.
Wood product sales rose more than 22.3% to $2.02 billion for the quarter compared to sales of $1.65 billion in the second quarter of 2020.
Benchmark prices for lumber and oriented strand board (OSB) reached new record levels in the first quarter, and average sales for lumber and oriented strand board increased 42% and 22%, respectively, compared with fourth quarter averages, the company reported.
Timberlands sales rose 2.2% to $513 million for the period.
The Seattle, Wa.-based company also announced that the acquisition of 69,200 acres of Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million.
Separately, the company announced an agreement to sell 145,000 acres of timberlands in the North Cascades region of Washington to Hampton Resources for $266 million.
Weyerhaeuser owns or controls approximately 11 million acres of timberlands in the United States and manages additional timberlands under long-term licenses in Canada.
The Bottom Line: Weyerhaeuser profits skyrocket by 354%to $681 million in the first quarter as sales rise 45% to $2.5 billion.
What the CEO said: "I am extremely pleased with our first quarter results, as our businesses delivered Weyerhaeuser's highest quarterly Adjusted EBITDA on record despite severe winter weather and supply chain disruptions," said Devin Stockfish, president and CEO of Weyerhaeuser. " As 2021 progresses, new residential construction activity is exhibiting remarkable momentum and repair and remodel demand remains very favorable."
Company info: Click here to read the full first quarter 2021 financial report from Weyerhaeuser.