Weyerhaeuser: Strongest Wood Products earnings since 2005

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Weyerhaeuser NR Company
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The net earnings reported today, April 26, by the Weyerhaeuser Company are around $114 million. Net sales for the 1Q of 2013 were around $2 billion. This is quite an impressive increase, if we take into consideration the fact that in the first quarter of 2012, the net sales were of $1,5 billion.

Dan Fulton, the president and chief executive officer said: "Our wood products business reported its strongest quarterly earnings since 2005, as we effectively leveraged operational improvements in a strengthening housing market".

For the first quarter of 2013, Weyerhaeuser says that the "average price realizations for oriented strand board rose 24 percent compared with the fourth quarter, and lumber realizations increased 20 percent. Operating rates improved across all product lines due to stronger market demand and better mill operating performance. These factors were partially offset by higher raw material costs.

Regarding the outlook for the second quarter of 2013, "Weyerhaeuser anticipates comparable earnings from the Wood Products segment in the second quarter. The company expects higher sales volumes across all product lines, offset by slightly lower average selling prices for lumber and oriented strand board and slightly higher raw material costs."

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

4Q 2012

1Q 2013

Change

Net sales to unaffiliated customers

$832

$988

$156

Intersegment sales

16

18

2

Total net sales

$848

$1,006

$158

Contribution to earnings

$38

$178

$140

Source: Weyerhaeuser NR Company

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