Weyerhaeuser Reports Third Quarter Results

Weyerhaeuser Company (NYSE: WY) today reported net earnings of $1.116 billion for the third quarter, or $3.50 per diluted share, on net sales of $1.7 billion. This compares with essentially break-even results on net sales of $1.4 billion for the same period last year. Earnings for the...

Weyerhaeuser Reports Third Quarter Results

β€” Weyerhaeuser Company (NYSE: WY) today reported net earnings of $1.116 billion for the third quarter, or $3.50 per diluted share, on net sales of $1.7 billion.

This compares with essentially break-even results on net sales of $1.4 billion for the same period last year.

Earnings for the third quarter of 2010 include $1.035 billion from income tax adjustments, primarily related to the reversal of deferred taxes as a result of Weyerhaeusers conversion to a real estate investment trust (REIT). Excluding the income tax adjustments, the company reported net earnings of $81 million, or 25 cents per diluted share, in the third quarter of 2010, a $137 million increase compared with the $56 million loss before special items reported in the third quarter of 2009.

Calculations of third quarter 2010 earnings per share are based upon approximately 318 million weighted average shares, on a diluted basis, compared with 212 million shares in second quarter 2010.  Weyerhaeusers shares outstanding increased to approximately 536 million shares as of the end of the third quarter, or 537 million shares on a diluted basis, following the companys Sept. 1 payment of a previously announced special dividend. The dividend consisted of approximately 324 million shares of common stock and $560 million in cash in conjunction with the companys conversion to a REIT.

Cellulose Fibers reported a record performance, as it benefited from stronger production levels, lower costs and higher prices, said Dan Fulton, president and chief executive officer.  Meanwhile, the work done by our real estate business to restructure its operations and product offerings resulted in an operating profit despite challenging market conditions. Its obvious, however, that the overall housing market remains in an uncertain state as the expiration of the housing tax credit led to a precipitous drop in prices and volume for our Wood Products business. The housing market also affects our Timberlands business, where we continue to defer harvest due to lower log demand.

SUMMARY OF THIRD QUARTER FINANCIAL HIGHLIGHTS

Millions (except per share data)

3Q 2010

3Q 2009

Change

Net earnings

$1,116

$0

$1,116

Earnings per diluted share

$3.50

$0

$3.50

Net sales

$1,664

$1,407

$257

  SEGMENT RESULTS FOR THIRD QUARTER

(Contributions (Charges) to Pre-Tax Earnings) 

Millions

3Q 2010

3Q 2009*

Change

Timberlands

$75

$219

($144)

Wood Products

($100)

($97)

($3)

Cellulose Fibers

$181

$166

$15

Real Estate

$20

($64)

$84

* Segment earnings for the third quarter of 2009 included the following pre-tax items:

  • Timberlands: a gain of $163 million on sale of 140,000 acres of non-strategic timberlands

SOURCE

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