Weyerhaeuser reported adjusted earnings of $0.33 per share in
third-quarter 2014, up 43.5% year over year and above the Zacks
Consensus Estimate of $0.30. Revenues climbed 3.1% on the back of
healthy segmental performance. Divestiture of real estate business
resulted in gains worth $1 billion. Roughly 59 million shares were
retired in relation to the divestiture, which combined with buyback
of common shares, lowered the company's share count and hence,
boosted its earnings. For the fourth quarter, the Timberlands and
Wood Products businesses are anticipated to post sequentially lower
earnings while the Cellulose Fibers segment will benefit from lower
maintenance costs. Considering the above factors, we upgrade our
recommendation on Weyerhaeuser to Outperform from Neutral.
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 Co. (WY): Read the Full Research
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