Weyerhaeuser Posted Strong Results Despite Challenges

SEATTLE (Scrap Monster): Weyerhaeuser Company reported second quarter net earnings of $128 million of 17 cents per diluted share on net sales of $1.7 billion. The company had reported net earnings of $317 million or 42 cents per diluted share on net sales of $2.1 billion during the corresponding quarter in 2018. The adjusted EBITDA for Q2 2019 was $343 million, as compared with $637 million for the same period last year.

According to company press release, forestry and road spending increased seasonally in the West, whereas average log sales realizations and export log realizations dropped. The average log realizations remained more or less flat in the South. The fee harvest volumes were seasonally lower in the North.

Weyerhaeuser Company expects Timberlands earnings and adjusted EBITDA in Q3 to remain lower than the second quarter. It anticipates seasonally lower harvest volumes and higher road costs in the West. The company expects seasonally higher forestry expenses and increased fee harvest volumes in the South. The average log sales realizations are likely to be comparable to Q2.

The third quarter earnings and adjusted EBITDA from Real Estate, Energy and Natural Resources business segment will be lower than second quarter. Meantime, Wood Products segment earnings and adjusted EBITDA are likely to be comparable to Q2.

Commenting on the results, Devin W. Stockfish, president and chief executive officer noted that the business delivered strong Q2 operating performance despite various market and weather related challenges. Looking forward, it expects solid underlying market conditions and modest recovery in the U.S. housing market. The company is hopeful of delivering industry leading performance, he added.