Weyerhaeuser Reports Decline in Q2 Sales
Originally Published by: HBS Dealer — July 26, 2024
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Seattle-based Weyerhaeuser Company reported second-quarter net sales of $1.939 billion, down 2.9 percent from 1.997 billion in the same quarter last year.
Earnings declined 24.8 percent to $173 million for the three months ended June 30.
The company’s second-quarter earnings release coincided with an acquisition announcement. The company made strategic timberland acquisitions in Alabama, totaling 84,300 acres for $244 million.
“Despite ongoing challenges in the lumber market, adjusted EBITDA improved across each of our business segments compared to first quarter 2024,” said Weyerhaeuser President andCEO Devin W. Stockfish. “In addition, we continue to make meaningful progress toward our multi-year growth targets with the high-quality timberland acquisitions we announced today.”
Including these transactions, the company will have completed approximately $775 million against the target to grow its Timberlands portfolio through $1.0 billion of investments by the end of 2025.
Looking ahead, Weyerhaeuser anticipates the following:
- For lumber, the company expects lower sales volumes, slightly lower log costs, and higher unit manufacturing costs;
- For oriented strand board, the company anticipates comparable sales volumes, slightly higher fiber costs, and moderately higher unit manufacturing costs; and
- For engineered wood products, the company expects comparable sales volumes, lower raw material costs, and moderately lower sales realizations, primarily for plywood and medium density fiberboard.
Weyerhaeuser is one of the world’s largest private owners of timberlands.