Weyerhaeuser's (WY) Q1 Earnings In Line, Sales Lag, Down Y/Y
Zacks Investment Research | Apr 25, 2019 11:22PM ET
Weyerhaeuser Company (NYSE:WY) reported first-quarter 2019 results, wherein earnings met the Zacks Consensus Estimate, while net sales missed the same. Adjusted earnings (before special items) of 11 cents were in line with the consensus mark but decreased 69.4% from the year-ago figure of 36 cents. The company has been witnessing unfavorable average sales realizations for oriented strand board, domestic and export logs, and lower volumes.
Revenue Discussion
In the quarter under review, Weyerhaeuser’s net sales of $1,643 million missed the consensus mark of $1,733 million by 5.2%. Also, the reported figure was down 11.9% from $1,865 million in the prior-year quarter.
The company currently operates through three business segments, namely Timberlands, Real Estate, Energy and Natural Resources, and Wood Products.
Net sales in Timberlands (accounting for 33.8% of total net sales) during the first quarter were $556 million, declining 12% from the year-ago figure of $632 million. Adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) came in at $193 million versus $268 million a year ago, reflecting a decline of 28%.
Real Estate, Energy and Natural Resources’ net sales (7.2%) were $118 million. The reported figure increased 131.4% from the year-ago period. Adjusted EBITDA also grew 158.5% to $106 million from $41 million a year ago.
In the Wood Products segment, net sales of $1,094 million (66.6%) decreased 17.4% on a year-over-year basis. Adjusted EBITDA came in at $115 million, decreasing 59.8% from the year-ago figure of $286 million.
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