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Weyerhaeuser continues to benefit from high OSB prices

30.07.2018 − 

US-American Weyerhaeuser Group increased its OSB sales in the second quarter by 19% year-on-year to US$509m. Average sales prices increased by 24%, exceeding the level achieved in the first quarter by 17%. According to Weyerhaeuser, prices have thus risen continuously by a total of 92% since the second quarter of 2015. Sales volumes, including volumes purchased via the distribution business, declined by 2% in the same period, with deliveries of 754m sqft (3/8'' basis) in the second quarter down 1% year-on-year.

The sales volume of the MDF/HDF plant at Columbia Falls/Montana fell short of the previous year's level by 8 % to 55m sqft (basis 3/4'') in the second quarter. As average selling prices also fell by 1 %, MDF revenues fell by 8 % to US$47m.

Both prices (+23%) and sales volumes (+4%) for sawnwood increased, resulting in a 27% increase in sales to US$681 (538)m. In the other product segments of the "Wood Products" division, stagnating or declining delivery volumes could be more than offset by higher sales prices, as was the case with OSB. Sales in Engineered Solid Section (+7 % to US$139m), I-Joists (+8 % to US$92m) and softwood (+17 % to US$55m) also increased.

Total consolidated sales of the Wood Products Business Group rose 18% to US$1.525bn in the second quarter. EBITDA adjusted for extraordinary factors improved by 41.0% to US$385m, the highest figure in the company's history. Operating earnings, which were impacted by high warranty costs in the I-Joist product segment in the prior-year quarter, even increased by 86% to US$329m.

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