Weyerhaeuser's fourth-quarter 2014 earnings of $0.27 came in below
the Zacks Consensus Estimate of $0.28. Revenues of $1,788 million
inched up 1.1% year over year but missed the Zacks Consensus
Estimate of $1,809 million. Timberland revenues fell 1.4% due to
lower earnings from sale of non-strategic timberland, while Wood
Products and Cellulose Fibers gained 2.3% and 0.8%, respectively.
For first-quarter 2015, the company expects sequentially higher
earnings from the Timberlands and Wood Products businesses. On the
other hand, it projects lower earnings from its Cellulose Fibers
segment due to reduced pulp realizations, higher maintenance
expenses and lower liquid packaging board shipment volumes.
Considering all these, we have downgraded our recommendation on the
stock to Neutral from Outperform.
Based in Washington, Weyerhaeuser Company (WY) is one of the
leading U.S. forest product companies with operations primarily
concentrated in Southern California, Nevada, Washington, Texas,
Maryland and Virginia. Weyerhaeuser caters to a diverse clientele
spread over the U.S., Canada, Japan, Europe and other regions. The
company grows and harvests trees, builds homes and manufactures
forest products worldwide, primarily to be used as lumber, pulp and
paper, and other wood and building products. It offers logs,
hardwood lumber, timber, poles and plywood, as well as minerals,
oil, gas, seeds and seedlings. The company operates its businesses
through the segments listed below:
The Wood Products segment produces softwood lumber, plywood and
veneer, oriented strand board (OSB), composite and other panels,
and other products.
The Cellulose Fibers segment produces pulp, a range of both
coated and uncoated papers and bleached board used in the
production of liquid containers. The company operates six mills and
two converting facilities.
The Timberlands segment owns and manages roughly 7.0 million
acres of timberland in North America, post the acquisition of
Longview Timber LLC.
Weyerhaeuser Company (WY): Read the Full Research
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