Weyerhaeuser, a prominent lumber company based in Seattle, posted a significant increase in profit for the fourth quarter, despite a slight decline in sales. This decline can be attributed to lower volumes for lumber and higher manufacturing costs for wood products.
For the quarter, Weyerhaeuser reported a profit of $219 million, or 30 cents per share, compared to $11 million, or 2 cents per share, during the same period last year. The company's profit growth was partially driven by an after-tax benefit of $98 million from special items.
Adjusted earnings, excluding one-time items, stood at 16 cents per share. This exceeded analysts' expectations of 14 cents per share, according to FactSet.
Quarterly revenue dropped to $1.77 billion from $1.82 billion last year, falling short of analyst projections for a repeat of $1.82 billion.
In the company's timberlands business, domestic sales volumes decreased while export volumes saw a significant increase, particularly in the Chinese market. This strategic shift aimed to capitalize on higher margin opportunities.
Despite facing moderately lower volumes, the wood products segment experienced higher manufacturing costs due to a decrease in production levels.
Overall, Weyerhaeuser's fourth-quarter performance demonstrates strong profit growth, even amidst challenges in sales volume and manufacturing costs.
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