Weyerhaeuser Q4 profits swing ahead
Weyerhaeuser reported fourth quarter 2023 sales of $1.8 billion, which are flat compared to fourth quarter 2022 sales.
For the full year, Weyerhaeuser reported sales of $7.7 billion, falling 24.5% from 2022 sales of $10.2 billion.
During the fourth quarter, sales realizations for lumber and oriented strand board (OSB) decreased 14% and 17%, respectively, compared with third quarter averages, Weyerhaeuser said.
Sales volumes for lumber were moderately lower for the quarter but unit manufacturing costs were moderately higher due to a decrease in production levels, partially driven by holiday downtime taken at the company's Pacific Northwest mills.
In December, Weyerhaeuser completed previously announced transactions in its Southern Timberlands portfolio, including the acquisition of “mature and highly productive acreage” in the Carolinas and Mississippi that is well-integrated with the company's existing operations, and the divestiture of less strategic acreage in South Carolina.
The Seattle, Washington-based company also posted fourth quarter net earnings of $219 million, marking a big swing from earnings of $11 million for the same period last year.
For the full year, Weyerhaeuser reported net earnings declined 55% to $839 million compared to 2022 full-year earnings of $1.88 billion.
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The Bottom Line: Weyerhaeuser’s fourth quarter 2023 earnings see a significant swing to $219 million from $11 million for the same period a year ago.
What the CEO said: "Our performance in 2023 reflects solid execution across all businesses, notwithstanding challenging market conditions," said Devin Stockfish, president and CEO. "In addition, our teams drove meaningful improvements across each of the value levers of our investment thesis in 2023. Notably, we optimized our timberlands holdings through strategic transactions in the Carolinas and Mississippi, captured additional operational excellence improvements, grew our Natural Climate Solutions business and sold our first forest carbon credits in the voluntary market.”
Company info: Click here to read the full fourth quarter 2023 financial report from Weyerhaeuser.
