Weyerhaeuser's Posts Revenue Decline in All Segments -- Update
05 Février 2016 - 4:27PM
Dow Jones News
By Austen Hufford
Weyerhaeuser Co. reported a decline in fourth-quarter profit as
revenue decreased across all of units amid lower prices.
Shares of Weyerhaeuser fell 0.7% to $25.55 in morning trading in
New York. The timberland manager and wood producer did beat revenue
estimates and match earnings estimates.
In November, Weyerhaeuser said it would buy Plum Creek Timber
Co., creating a company that would hold the largest private
ownership of timberland in the U.S. Lumber futures have risen 2% in
the past three months but are still below recent 2013 highs.
Revenue in its wood products unit, its largest business, fell
2.5% to $943 million as sales in its cellulose fibers unit
decreased 1.5% because of lower prices. Revenue in its timberland
segment fell 7.2% as fee-harvest volumes decreased because of wet
weather.
The company expects "significantly lower earnings" in its
cellulose fibers segment because of decreased sales in pulp,
seasonally lower pulp volumes and additional maintenance expenses
due to a scheduled outage.
The company said, as previously announced, it was continuing the
strategic review of the cellulose fibers unit.
Weyerhaeuser also wrote down the value of a joint venture and
took a resulting $84 million accounting charge.
Fourth-quarter profit fell to $59 million, or 11 cents a share,
from $166 million, or 31 a share, a year earlier. Excluding
charges, including the asset impairment and Plum Creek
merger-related costs, the company earned 24 cents a share, compared
with 27 cents a year earlier. Sales fell 3% to $1.73 billion.
Analysts polled by Thomson Reuters had predicted 24 cents a
share in profit on revenue of $1.73 billion.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 05, 2016 10:12 ET (15:12 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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