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Weyerhaeuser posts growth from wood products

05.03.2018 − 

US-American Weyerhaeuser has announced that its Wood Products division ended the fourth quarter of 2017 with much better revenues and earnings than one year earlier. Average sales prices had increased in all product segments, with the highest growth rate of almost a third reported for OSB. Sales volumes, which include amounts purchased through the Distribution division, improved for the most part. Softwood plywood (-15.9%) and MDF (-22.4%) were the only products to see lower sales. The division’s consolidated revenues thus rose 19.0% to US$1.228bn.

EBITDA adjusted for extraordinary items from OSB activities leapt to US$104m. The division as a whole saw its EBITDA adjusted for extraordinary items almost double to US$258m. As in the two previous quarters, operating income was hit by high costs for the remediation of defective I-joists and ended up at US$180m. The company created reserves of US$50m to resolve this issue in the fourth quarter. These reserves now add up to US$290m. Weyerhaeuser reported that remediation work had been completed in 99% of affected new buildings by the end of January.

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