Weyerhaeuser Company reported third quarter net income of $ 482 million, or 64 cents per diluted share, on net sales of $ 2.3 billion. That compares to net income of $ 283 million, or 38 cents per diluted share, on net sales of $ 2.1 billion for the same period last year.
Weyerhaeuser operates a sawmill near Emerson and a nursery in the community of Calhoun. He owns extensive logging operations in southern Arkansas.
Excluding an after-tax benefit of $ 32 million for special items related to a gain on the sale of timberland, the company reported third quarter net income of $ 450 million, or 60 cents per diluted share. This compares to net income before special items of $ 386 million for the same period last year and $ 1.0 billion for the second quarter of 2021.
Adjusted EBITDA for the third quarter of 2021 was $ 746 million, compared to $ 745 million for the same period last year and $ 1.6 billion for the second quarter of 2021.
“In the third quarter, we delivered strong results in each of our businesses despite weather-related operational disruptions, continued supply chain challenges and the ongoing pandemic,” said Devin W. Stockfish, president and chief Executive Officer.
“Our teams have done an exceptional job in the face of these headwinds and I am extremely proud of their collective focus on safety, solid execution and continued service to our customers. Since the start of the year, we have generated over $ 3.4 billion in adjusted EBITDA and $ 2.4 billion We expect this generation of record cash flow will translate into a significant additional dividend payout to shareholders in the first quarter of 2022. We are optimistic about the fundamentals of the underlying demand for housing in the United States and the growth opportunities for our businesses and remain resolutely focused on creating superior shareholder value. ”
Q3 2021 performance
In the West, paid harvest volumes were slightly lower than in the second quarter due to continued salvage operations and harvest restrictions resulting from regional wildfire activity. Unit costs for logs and transportation increased as harvesting activity in the West shifted to higher elevation units. Export sales achievements were slightly higher, driven by strong demand. In the South, sawlog and fiber log sales performance improved and fresh harvest volumes increased slightly, but harvest activity was affected by persistent wet conditions and weather events. . Unit costs of logs and transport and forestry and road costs were slightly higher.
Q4 2021 outlook
Weyerhaeuser expects fourth quarter earnings and adjusted EBITDA to be comparable to third quarter. In the West, the company expects moderately higher royalty harvest volumes and lower per unit log and haul costs as the salvage harvest will decrease. Domestic sales are expected to be slightly lower than in the third quarter. In the South, the company expects slightly higher fresh crop volumes due to improved weather conditions as well as slightly higher sales achievements as factories rebuild from lower inventory levels. to normal. This should be offset by slightly higher log and transport costs per unit as well as slightly higher forestry and road costs.
Wood products – Performance Q3 2021
Lumber and oriented strand board sales were down 52% and 24%, respectively, from second quarter averages. Lumber sales volumes increased moderately due to improved take-out food at home improvement centers, partially offset by weather-related downtime. Oriented strand board production and sales volumes were slightly higher due to reduced downtime for scheduled maintenance. Sales significantly improved for most engineered wood products, and the company continued to benefit from previously announced price increases for solid sections and I-joists. Raw material costs for the products of wood increased, mainly for oriented strand strips, resin and veneer.
Q4 2021 outlook
Weyerhaeuser expects fourth quarter earnings and adjusted EBITDA to be higher than third quarter, excluding the effect of changes in average sales for lumber and oriented strand board. The company expects higher sales volumes, primarily for oriented strand board, as well as improved manufacturing costs due to reduced planned maintenance downtime. Raw material costs are expected to be lower, primarily for oriented strand board strips.