Weyerhaeuser first quarter net income declines
by May 10, 2016 1:42 pm 118 views
Weyerhaeuser Company, the Washington state-based manufacturer of wood and cellulose fibers products with a facility in Dierks, recently announced a decline in net earnings for the first quarter of 2016.
The number fell to $70 million, or 11 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $90 million, or 17 cents per diluted share, on net sales of $1.7 billion for the same period last year.
Excluding after-tax charges of $80 million for special items, the company reported net earnings of $150 million, or 24 cents per diluted share for the first quarter. This compares with net earnings before special items of $99 million for the same period last year and $121 million for fourth quarter 2015.
Special items for the first quarter of 2016 are primarily comprised of $98 million of after-tax merger related costs, partially offset by a $22 million after-tax gain on the sale of the company’s Federal Way headquarters campus.
“I am extremely proud of the work of our employees in the first quarter, as we closed the Plum Creek merger, delivered solid operating performance across each of our businesses, and completed about 35 percent of our $2.5 billion share repurchase authorization,” Doyle Simons, president and CEO, said in the earnings report.
Weyerhaeuser announced an agreement to sell its Cellulose Fibers pulp mills to International Paper for $2.2 billion in cash on May 2. This announcement completed the first phase of the company’s review of the Cellulose Fibers business. The transaction with International Paper did not include Weyerhaeuser’s liquid packaging board facility or newsprint and publishing papers venture. The company’s review of those assets is ongoing.
Weyerhaeuser expects to use a substantial portion of the estimated $1.6 billion after-tax proceeds for repayment of term loans issued in conjunction with the company’s previously announced $2.5 billion share repurchase program.
Founded in 1900, Weyerhaeuser owns or controls more than 13 million acres of timberlands, primarily in the U.S. It also manages timberlands under long-term licenses in Canada. The company is a real estate investment trust. In February 2016, Weyerhaeuser merged with Plum Creek Timber Company. In 2015, Weyerhaeuser and Plum Creek, on a combined basis, generated approximately $8.5 billion in net sales and employed nearly 14,000 people.