Weyerhaeuser sees profits fall in Q2

Weyerhaeuser reported second quarter sales increased 4.7% to $3.11 billion from second quarter 2021 sales of $2.97 billion.

But net earnings for the quarter dropped more than 23% to $788 billion compared to net earnings of $1.03 billion in the second quarter of 2021.

The Seattle, Wash.-based lumber and forest products producer said fee harvest volumes were moderately lower in the West due to unseasonably wet weather. Additionally, export sales were moderately higher and export sales volumes were significantly higher, driven by strong demand in Japan. 

In the South, sales realizations for sawlogs and fiber logs were slightly higher as fee harvest volumes increased moderately. 

The company also noted that road and forestry costs were higher this quarter in the South and the West with the trend continuing into the third quarter 2022.

Weyerhaeuser reported that sales volumes for lumber were significantly higher due to seasonal inventory drawdown and improved production, while unit manufacturing costs and log costs were slightly higher. Sales volumes for oriented strand board (OSB) were also higher in the second quarter.

On a quarter-over-quarter basis, wood product sales fell 7% to $2.34 billion compared to sales of $2.52 in the first quarter of 2022.

Sales and production volumes for most engineered wood products saw a significant increase during the quarter as well.