Weyerhaeuser Net Earnings Dropped Substantially

SEATTLE (Scrap Monster): Weyerhaeuser Company reported third quarter results. The net earnings dropped to $99 million or $0.13 per diluted share. This compares with the net earnings of $255 million or $0.34 per diluted share during the same period last year. The net sales reported year-on-year decline from $1.9 billion to $1.7 billion.

The company press release said that the adjusted EBITDA for Q3 ’19 was $308 million, compared with $505 million for the same period a year before.

ALSO READ: Lawsuit Alleges Weyerhaeuser of Withholding Evidence in Workplace Injury Case

Weyerhaeuser reported notable decline in average sales realizations for domestic and export logs in the West. The domestic sales volumes remained seasonally lower. Meantime, average sales realizations for OSB and lumber remained more or less unchanged from the prior quarter. The company expects the earnings to decline further in Q4 this year. The lower real estate sales led to decrease in earnings and adjusted EBITDA by the company’s Real Estate, Energy and Natural Resources division.

Devin W. Stockfish, president and chief executive officer noted that the company was able to deliver strong operating performance in the third quarter, despite challenging market conditions. The announced pending sale of 555,000 acres in Michigan will further optimize the company’s timberlands portfolio. The transaction is expected to close in the fourth quarter of 2019. Going forward, the U.S. housing activity is expected to witness modest growth, he added.