Weyerhaeuser predicts better wood products performance20 February 2012
Weyerhaeuser is predicting a smaller loss in its wood products division for Q1, 2012.
The company said higher selling prices for lumber and OSB and increased sales volumes across all product lines would improve performance.
Its newly published results show the division recorded a pre-tax loss from continuing operations (before special items) of US$61m (2010: US$18m loss).
Weyerhaeuser said the poor performance was down to weak sales volumes and prices, with reduced mill operational levels, resulting in higher per unit manufacturing costs.
Divisional sales totalled US$542m.
For the full year, Weyerhaeuser’s group business reported net profits of US$331m (2010: US$1.28bn) on net sales from continuing operations of US$6.2bn (2010: US$6bn). Profits in 2010 benefited from US$1bn from income tax adjustments related to Weyerhaeuser’s conversion to a real estate investment trust.