Sales and earnings fall at Weyerhaeuser
Weyerhaeuser reported second quarter net sales declined to $2 billion from net sales of $3 billion for the second quarter 2022.
The timberlands owner and forest and building products provider also posted second quarter net earnings of $230 million compared to net earnings of $788 million for the same period a year ago.
In July, Weyerhaeuser acquired 22,000 acres of timberlands in Mississippi for approximately $60 million. The “highly productive timberlands are strategically located to deliver immediate synergies with existing Weyerhaeuser operations,” the Seattle-based company said in a press release.
In a statement issued by the company, CEO and President Devin Stockfish said, “We continue to make meaningful progress towards our multi-year growth targets with the recent acquisition of high-quality timberlands in Mississippi.”
The company noted that sales realizations for lumber and oriented strand board (OSB) increased 6% and 11%, respectively, compared with first quarter averages. Sales volumes for lumber were moderately higher and log costs were slightly lower, primarily for western logs.
OSB sales and production volumes were moderately lower and unit manufacturing costs were moderately higher due to planned downtime for annual maintenance as well as a temporary period of unplanned downtime resulting from wildfire activity near the company's facility in Alberta, Weyerhaeuser said.
Sales and production volumes were significantly higher for most engineered wood products, driven by improving demand from the homebuilding segment.
“Looking forward, we are encouraged by recent improvements in the housing market, and maintain a favorable longer-term outlook for the demand fundamentals that will drive growth for our businesses,” Stockfish said.
Click here to read the full second quarter 2023 financial report from Weyerhaeuser.
