Weyerhaeuser Q3 2011 results: net earnings fall 86% from Q3 2010 to $157M

Weyerhaeuser Company have reported net earnings of $157m for Q3 (29 cents per diluted share) on net sales from continuing operations of $1.6 billion. This compares with net earnings of $1.116 billion on net sales from continuing operations of $1.5 billion for Q3 last year.

Earnings for Q3 2011 include after-tax gains of $91 million from special items, including an $83 million benefit relating to foreign tax credits. If we exclude these items, the company reported net earnings of $66 million (12 cents per diluted share). This compares with net earnings before special items of $81 million in Q3 of 2010.

Earnings for Q3 2010 included special items of $1.035 billion, mainly income tax adjustments related to Weyerhaeuser's conversion to a real estate investment trust (REIT).

Timberlands outlook for Q4

Lower earnings are expected in this segment in the fourth quarter due to reduced fee harvest volumes and lower selling prices for Western logs. It’s also anticipated there will be seasonally higher road and silviculture costs. 

Wood Products outlook for Q4

A larger loss is anticipated in the fourth quarter, due to seasonally weaker market conditions. Lower selling prices for lumber and oriented strand board is also expected as are reduced sales volumes and operating rates across all product lines.

Cellulose Fibers outlook for Q4

Slightly lower earnings are expected for this segment in the fourth quarter. Lower selling prices are expected for pulp, along with slightly higher shipment volumes.

Real Estate outlook for Q4

Higher earnings are anticipated from single-family homebuilding in the fourth quarter due to seasonality.

Posted Date: 09th Nov 2011