Weyerhaeuser's second-quarter 2014 adjusted earnings came in at
$0.40 per share, up 21% year over year and 17.6% above the Zacks
Consensus Estimate. Revenues grew 4.8% driven by solid performance
in the Timberlands, Wood Products and Cellulose Fibers segments.
Divested real estate business, WRECO, contributed $317 million in
revenues, while 50 million shares retirement associated with the
divestiture will boost earnings per share in the third quarter.
Management intends to capitalize on its core forest products based
businesses going forward. For the third quarter, weak domestic and
export log demand will impact Timberlands performance. Cellulose
Fibers will suffer from planned maintenance work. Considering the
above factors, we currently maintain a Neutral recommendation on
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.
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