FEDERAL WAY (dpa-AFX) - Forest products company Weyerhaeuser Co. (WY) reported Friday a sharp decline in first-quarter profit, despite a slight increase in net sales. Adjusted earnings, excluding items, topped analysts expectations, while revenues were below view.
Dan Fulton, president and chief executive officer of the company said, 'Even as indicators of a modestly improving U.S. housing market begin to emerge, we remain relentlessly focused on improving our financial performance. We will take full advantage of recovering markets while positioning Weyerhaeuser for future growth, to the benefit of our shareholders.'
Looking ahead to the second quarter, the company expects modestly higher earnings from Timberlands segment and sees nearly breakeven results from Wood Products segment.
Weyerhaeuser said it anticipates slightly higher earnings from Cellulose Fibers segment in the second quarter due to improved selling prices for pulp, partly offset by higher planned annual maintenance expense.
In addition, it expects a slight profit from Real Estate segment. The company anticipates a small loss from single family home-building operations, but sees home closings to increase seasonally.
In the first quarter, net earnings attributable to shareholders fell to $41 million or $0.08 per share from $99 million or $0.18 per share reported last year.
However, excluding special items, quarterly earnings were $0.02, compared to a breakeven per share in the prior-year quarter. On average, 12 analysts polled by Thomson Reuters expected breakeven per share for the quarter. Analysts' estimates typically exclude one-time items.
Net sales and revenues slightly increased to $1.49 billion from $1.42 billion in the same quarter last year, but was below analysts' estimate of $1.53 billion.
WY closed Thursday's regular trading at $20.88 on the NYSE.
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