Dec 31, 2019

Weyerhaeuser Q4 2019 Earnings Report

Weyerhaeuser reported a net loss for the fourth quarter of 2019, but highlighted strong execution and operational excellence amid market headwinds.

Key Takeaways

Weyerhaeuser Company reported a net loss of $14 million, or two cents per diluted share, on net sales of $1.5 billion for the fourth quarter of 2019. Excluding special items, the company reported net earnings of $23 million, or three cents per diluted share. The company's 2019 performance was impacted by a sluggish housing market, global trade uncertainty, and challenged commodity prices.

Net sales for Q4 2019 were $1.5 billion, compared to $1.6 billion for the same period last year.

The company reported a net loss of $14 million, or two cents per diluted share, for Q4 2019.

Adjusted EBITDA for the fourth quarter of 2019 was $260 million, compared to $346 million for the same period last year.

Weyerhaeuser expects modest growth will drive improvement across its markets as the year progresses.

Total Revenue
$1.55B
Previous year: $1.64B
-5.4%
EPS
$0.03
Previous year: $0.1
-70.0%
Gross Profit
$247M
Previous year: $291M
-15.1%
Cash and Equivalents
$139M
Previous year: $334M
-58.4%
Total Assets
$16.4B
Previous year: $17.2B
-4.9%

Weyerhaeuser

Weyerhaeuser

Weyerhaeuser Revenue by Segment

Forward Guidance

Weyerhaeuser expects first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter.

Positive Outlook

  • Higher domestic and export log sales volumes are anticipated in the West.
  • Modestly higher average domestic log sales realizations are expected in the West.
  • Lower road spending is anticipated in the West.
  • Seasonally improved operating rates for engineered wood products are expected.
  • Slightly higher sales volumes for lumber and oriented strand board are anticipated.

Challenges Ahead

  • Seasonally lower fee harvest volumes are expected in the South.
  • Average log sales realizations comparable with the fourth quarter average are expected in the South.
  • No specific negative factors were explicitly mentioned for the company as a whole.
  • No specific negative factors were explicitly mentioned for the company as a whole.
  • No specific negative factors were explicitly mentioned for the company as a whole.

Revenue & Expenses

Visualization of income flow from segment revenue to net income