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Weyerhaeuser returns to profitability

09.08.2019 − 

Weyerhaeuser was back in the black with a US$128m profit in the second quarter of 2019 after booking a sizeable net loss of US$286m in the first three months. However, the net profit was much smaller between April and June than in the same stretch last year. The company had incurred exceptional charges of US$369m in the first quarter due to factors mainly including its acquisition of pension liabilities. Adjusted for exceptional items, Weyerhaeuser had recorded a net profit of US$80m. Adjusted EBITDA plunged 46% in the second quarter compared with the prior-year period to US$343m. Group revenues were down 18% at US$1.692bn.

Revenues from the Wood Products division tumbled around 21% in a year-on-year comparison to US$1.210bn. Lumber revenues dropped 27% to US$495m because of lower average sales prices. However, lumber production and sales were both higher than the prior-year period at US$1.193bn bdft and 1.274bn bdft respectively.

By contrast, other product segments saw their sales volumes worsen. OSB shipments (3/8” basis) were 3% lower at 733 million sqft. OSB revenues even took a 44% slide to US$156m in the wake of a 42% reduction in prices. Softwood plywood revenues (-20% to US$44m) and MDF revenues (-4% to US$45m) headed lower because of reduced prices. By contrast, lower sales volumes were partially offset by higher average prices for engineered solid section (-4% to US$134m) and I-joists (-7% to US$86m).

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