Weyerhaeuser reports 2Q net earnings of $84 million

Jul 27, 2012. /Lesprom Network/. Weyerhaeuser Company reported net earnings of $84 million for the 2Q, or 16 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $10 million on net sales from continuing operations of $1.6 billion for the same period last year, as the company said in the press release received by Lesprom Network. Earnings for the 2Q 2012 include after-tax gains of $37 million from special items. Excluding these items, the company reported net earnings of $47 million, or 9 cents per diluted share. This compares with net earnings before special items of $32 million, or 6 cents per diluted share, in the 2Q 2011. "We are seeing signs of a rebound in the U.S. housing market, and as markets strengthen, the operational improvements within our Wood Products business are yielding clear results," said Dan Fulton, President and CEO. "Our ongoing work to improve performance across all businesses is positioning us to capture the full benefit of the market recovery as it unfolds." Weyerhaeuser began reporting elimination of intersegment profit on inventory and the LIFO reserve as part of Unallocated Items during second quarter 2012. Previously these company-level adjustments were recorded in the business segments. This change provides a better understanding of business segment operating results. For consistency, segment contributions to pre-tax earnings for prior periods have been adjusted to classify these amounts as part of Unallocated Items. There was no change to Weyerhaeuser's consolidated net earnings. The Timberlands segment's earnings increased $7 million compared with the 1Q, primarily due to seasonally higher fee harvest in the West and South and increased demand for domestic and export logs. Average selling prices for export logs declined, and domestic prices for Western and Southern logs rose slightly. The Wood Products segment's 2Q results before special items improved $43 million compared with the 1Q, primarily due to higher selling prices for lumber and oriented strand board and operational improvements. Lumber prices increased 13 percent, and prices for oriented strand board improved 9 percent. Sales volumes increased substantially. The Cellulose Fibers segment's 2Q earnings declined $12 million. Average selling prices for pulp were approximately flat compared with 1Q. Planned maintenance costs increased and sales volumes declined due to timing of shipments and reduced pulp production resulting from operational issues experienced during the quarter. 1Q and 2Q each included two scheduled annual maintenance outages. Weyerhaeuser Company, one of the world's largest forest products companies, began operations in 1900.