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—
Weyerhaeuser Company (NYSE: WY) today
reported net earnings of $14 million for the second quarter, or 7
cents per diluted share, on net sales of $1.8 billion.
This compares with a net loss of $106 million, or 50 cents per
share, on net sales from continuing operations of $1.4 billion for
the same period last year.
SIGNIFICANT SECOND QUARTER 2010 AFTER-TAX ITEMS
|
|
After-Tax Gain
(Charge)
($ millions)
|
Gain (Charge)
per share
(dollars)
|
|
Loss on early extinguishment of debt
|
($33)
|
($0.16)
|
|
Wood Products asset sales
|
$5
|
$0.03
|
Excluding these items, the company reported
net earnings of $42 million, or 20 cents per diluted share, in the
second quarter of 2010.
SIGNIFICANT SECOND QUARTER 2009 AFTER-TAX
ITEMS
|
|
After-Tax
Charge
($ millions)
|
Charge
per share
(dollars)
|
|
Alternative fuel mixture credits
|
$72
|
$0.34
|
|
Impairments and reserves for Real Estate
assets
|
($36)
|
($0.17)
|
|
Corporate restructuring and asset
impairments
|
($30)
|
($0.14)
|
|
Closures, restructuring and asset
impairments,
primarily for Wood Products
|
($14)
|
($0.07)
|
|
Litigation and insurance settlements
|
$14
|
$0.07
|
|
Gain on sale of closed facilities
|
$13
|
$0.06
|
Excluding these items, the companys net loss
was $125 million, or 59 cents per share, in the second quarter of
2009.
In the second quarter we returned to
profitability and all businesses were cash positive from
operations, said Dan Fulton, president and chief executive officer.
Im encouraged by our ability to profitably manage operations in an
uncertain climate and with the lack of a sustained housing
recovery. On July 11, we announced the final major milestone in our
plan to become a REIT by declaring our special dividend. We look
forward to the benefits that the REIT structure will bring to our
shareholders.
SUMMARY OF SECOND QUARTER FINANCIAL
HIGHLIGHTS
|
Millions (except per share
data)
|
2Q 2010
|
2Q 2009
|
Change
|
|
Net earnings (loss)
|
$14
|
($106)
|
$120
|
|
Earnings (loss) per diluted share
|
$0.07
|
($0.50)
|
$0.57
|
|
Net sales
|
$1,805
|
$1,391
|
$414
|
SEGMENT RESULTS FOR SECOND QUARTER
(Contributions (Charges) to Pre-Tax
Earnings)
|
Millions
|
2Q 2010
|
2Q 2009
|
Change
|
|
Timberlands
|
$70
|
$66
|
$4
|
|
Wood Products
|
($3)
|
($162)
|
$159
|
|
Cellulose Fibers
|
$74
|
$100
|
($26)
|
|
Real Estate
|
$27
|
($50)
|
$77
|
TIMBERLANDS
|
|
2Q 2010
|
1Q 2010
|
Change
|
|
Contribution to pre-tax earnings
(millions)
|
$70
|
$81
|
($11)
|
2Q 2010 Performance The segments
earnings declined in the second quarter compared to the first, as
lower earnings from disposition of non-strategic timberlands were
partially offset by increased earnings from operations.
Second quarter included pre-tax gains of
$14 million from disposition of non-strategic timberlands, compared
to $31 million in the first quarter. Earnings from operations
increased due to improved log price realizations, primarily in the
west. This increase was partially offset by additional silviculture
spending and seasonally higher road expenses for US operations.
Losses related to international operations were $4 million in the
second quarter, unchanged from first quarter levels. Weyerhaeuser
continues to defer timber harvest.
3Q 2010 Outlook Excluding the
disposition of non-strategic timberlands, Weyerhaeuser expects
third quarter operating earnings from the segment to be lower than
second quarter. The company expects lower log prices and seasonally
higher silviculture costs.
WOOD PRODUCTS
|
|
2Q 2010
|
1Q 2010
|
Change
|
|
Charge to pre-tax earnings
(millions)
|
($3)
|
($19)
|
$16
|
2Q 2010 Performance Excluding the
pre-tax items noted below, the segments results improved by
$52 million, resulting in a significantly smaller loss in the
second quarter.
SOURCE