Mixed Q1 results for Weyerhaeuser
Forest products giant Weyerhaeuser reported first quarter 2023 sales dropped to $1.88 billion compared to first quarter 2022 sales of $3.1 billion.
For the fourth quarter of 2022, Weyerhaeuser posted net sales of $1.82 billion.
The Seattle, Washington-based company also reported net earnings of $151 million for the period, down drastically from first quarter 2022 net earnings of $771 million.
But profits are well above net earnings of $11 million in the fourth quarter 2022.
Sales realizations for lumber and oriented strand board (OSB) decreased 9% and 20% compared to the fourth quarter 2022.
Weyerhaeuser said sales and production volumes for lumber were significantly higher than the fourth quarter, which had one month of operations affected by the work stoppage at mills in the Northwest.
Timberland fee harvest volumes were significantly higher than the fourth quarter which had one month of operations affected by the work stoppage. Sales volumes were significantly higher, particularly for export volumes to China. Sales realizations were lower, driven by domestic and Japanese export sales.
Weyerhaeuser said it owns or controls approximately 11 million acres of timberlands in the U.S. and manages additional timberlands under long-term licenses in Canada.
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The Bottom Line: While sales and profits fall significantly in the first quarter compared to the same period a year ago, they beat the benchmarks from the fourth quarter of 2022.
What the CEO said: “Looking forward, we remain constructive on the longer-term demand fundamentals that will drive growth for our businesses, notwithstanding the current macroeconomic headwinds,” said Devin Stockfish, Weyerhaeuser president and CEO. “Our financial position is exceptionally strong, and we remain focused on driving operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation."
Company info: Click here to read the full fourth quarter 2023 financial report from Weyerhaeuser.