Weyerhaeuser Company (NYSE: WY), Federal Way, WA, reported profit of $10 million for the second quarter on sales of $1.8 billion. This compares with profit of $14 million on net sales of $1.8 billion for the same period last year.
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For the first six months, the forest products company reported profit of $109 million on sales of $3 billion, compared with a year-ago loss of $6 million on sales of $2.9 billion.
\”We are confident that our ongoing efforts to sharpen our focus and reduce costs are positioning us to achieve our goal of generating superior sustainable returns for our shareholders,\” said Dan Fulton, president and CEO. \”The recently announced agreements to sell our hardwoods and Westwood Shipping Lines operations demonstrate the focus we are placing on our strategic direction.\”
Timberlands segment sales increased 21 percent to $422 million, with segment earnings up 60 percent to $112 million in the second quarter. Fee harvest volumes rose, and average selling prices for western logs increased due to strong Chinese export demand through the first half of the quarter. These improvements were partially offset by higher fuel costs.
Second quarter Wood Products segment sales were $726 million, down 10 percent in a year-over-year comparison. The segment recorded a loss of $61 million for the period.
Cellulose Fibers second quarter sales increased 12 percent to $526 million. Sales volumes declined slightly, as market demand weakened late in the second quarter. Segment profit of $80 million increased 8 percent year over year, but declined 7.5 percent from the first quarter.
Real Estate segment earnings increased $9 million compared with the first quarter, primarily due to seasonally higher home sale closings. Home sale closings increased 26 percent compared with the first quarter to 459 single-family homes. Average margins on homes closed improved slightly, but average prices declined due to mix.
