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Weyerhaeuser Reports Second Quarter Results

Fri, 07/30/2010 - 8:27am
Weyerhaeuser
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.

  • Second quarter included pre-tax gains of $8 million from the sale of assets.

SOURCE

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