Weyerhaeuser swings to profit in Q1
Forest products and building materials manufacturer Weyerhaeuser reported first quarter sales increased 6% to $1.7 billion from first quarter sales of $1.6 billion last year.
The Seattle, Wash.-based company also posted net earnings of $150 million for the period as compared to a net loss of $289 million in the first quarter 2019.
Excluding an after-tax benefit of $12 million for special items, the company reported first quarter net earnings of $138 million.
Net sales from timberlands increased 1.3% to $510 million in the first quarter from sales of $503 million in the fourth quarter 2019.
Wood product sales fell nearly 10% to $1.12 billion from sales of $1.24 billion in the fourth quarter 2019.
Weyerhaeuser said that it expects significantly wood product sales in the second quarter as a result of the COVID-19 crisis.
The company has made production reductions as a result of the current business environment. For April, operating capacity was reduced by 20% for lumber and 15% for oriented strand board.
Weyerhaeuser said it will extend the reductions at similar levels in May and will continue to adjust as market conditions evolve.
In engineered wood products, the company reduced operating capacity across its product lines by 15% to 25% in April. Additional reductions are on the way this month with operating capacity being lowered by an additional 10%.
During the quarter, Weyerhaeuser completed the sale of 630,000 acres of Montana timberlands in a $145 million cash deal.
The Bottom Line: Sales rise 6% while Weyerhaeuser swings to a profit of $150 million.
What the CEO said: In late March, we took steps to enhance financial flexibility and position Weyerhaeuser's businesses for changing market dynamics," said Devin Stockfish, Weyerhaeuser president and CEO. "During the second quarter, customer market conditions have deteriorated across our businesses, consistent with the broader macroeconomic environment.”
"Weyerhaeuser's favorable cost structure, customer focus and financial resources position the company well to navigate this unprecedented economic disruption,” he added.
Company info: Click here to read the full first quarter 2020 report from Weyerhaeuser.
The Seattle, Wash.-based company also posted net earnings of $150 million for the period as compared to a net loss of $289 million in the first quarter 2019.
Excluding an after-tax benefit of $12 million for special items, the company reported first quarter net earnings of $138 million.
Net sales from timberlands increased 1.3% to $510 million in the first quarter from sales of $503 million in the fourth quarter 2019.Wood product sales fell nearly 10% to $1.12 billion from sales of $1.24 billion in the fourth quarter 2019.
Weyerhaeuser said that it expects significantly wood product sales in the second quarter as a result of the COVID-19 crisis.
The company has made production reductions as a result of the current business environment. For April, operating capacity was reduced by 20% for lumber and 15% for oriented strand board.
Weyerhaeuser said it will extend the reductions at similar levels in May and will continue to adjust as market conditions evolve.
In engineered wood products, the company reduced operating capacity across its product lines by 15% to 25% in April. Additional reductions are on the way this month with operating capacity being lowered by an additional 10%.
During the quarter, Weyerhaeuser completed the sale of 630,000 acres of Montana timberlands in a $145 million cash deal.
###
The Bottom Line: Sales rise 6% while Weyerhaeuser swings to a profit of $150 million.What the CEO said: In late March, we took steps to enhance financial flexibility and position Weyerhaeuser's businesses for changing market dynamics," said Devin Stockfish, Weyerhaeuser president and CEO. "During the second quarter, customer market conditions have deteriorated across our businesses, consistent with the broader macroeconomic environment.”
"Weyerhaeuser's favorable cost structure, customer focus and financial resources position the company well to navigate this unprecedented economic disruption,” he added.
Company info: Click here to read the full first quarter 2020 report from Weyerhaeuser.