Weyerhaeuser reports first-quarter net earnings of $156 million on net sales of $1.7 billion and Adjusted EBITDA of $308 million, up from $140 million in the fourth quarter. Excluding special items, net earnings total $77 million, reflecting an after-tax special items benefit of $79 million. Weyerhaeuser Company reported the results.
The company says Adjusted EBITDA improves across each business segment from the fourth quarter despite what it calls elevated macroeconomic uncertainty. Management says it is encouraged by a recent increase in lumber pricing as it looks ahead.
In Wood Products, higher pricing supports a quarter-on-quarter improvement. Lumber sales realizations rise 13% from fourth-quarter averages and oriented strand board realizations rise 8%. Lumber sales volumes rise to 1,081 million board feet and production totals 1,100 million board feet. Oriented strand board sales volumes total 707 million square feet (3/8") and production totals 742 million square feet.
Engineered wood products realizations run lower for most products, while volumes increase in several lines. Engineered solid section sales volumes total 5.6 million cubic feet and production totals 5.7 million cubic feet, with realizations of $2,790. Engineered I-joist sales volumes total 31 million lineal feet and production totals 35 million lineal feet, with realizations of $2,307. Medium density fiberboard sales volumes total 26 million square feet (3/4") and production totals 28 million square feet, with realizations of $1,172. Softwood plywood sales volumes total 86 million square feet (3/8") and production totals 77 million square feet, with realizations of $442.
In Timberlands, fee harvest volumes total 2,178 thousand tons in the West, 5,915 thousand tons in the South and 278 thousand tons in the North, with weather affecting harvest levels by region. Delivered log realizations average $106.76 per ton in the West, $37.26 per ton in the South and $70.65 per ton in the North.
For the second quarter, the company expects Timberlands earnings before special items and Adjusted EBITDA to be comparable with the first quarter, with moderately higher West harvest volumes and slightly higher realizations and slightly higher South harvest volumes with comparable realizations, alongside higher log and haul costs and seasonally higher forestry and road costs. Wood Products results are expected to be comparable with the first quarter excluding changes in average lumber and oriented strand board realizations, with higher sales volumes for lumber and oriented strand board and higher oriented strand board manufacturing and fiber costs.
