Weyerhaeuser Posts Lower Q1 Earnings

reported a drop in its earnings for the first quarter. The Federal Way, Washington-based company's quarterly net income slipped to $90 million, or $0.17 per share, versus a year-ago profit of $183 million, or $0.31 per share. Excluding certain items, the company's earnings from continuing operations came in at $0.19 per share. Its sales declined to $1.72 billion from $1.74 billion. However, analysts were estimating a profit of $0.25 per share on revenue of $1.77 billion. Sales for the Timberlands segment came in at $351 million in the quarter, while sales for the Wood Products segment totaled $923 million. Sales for the Cellulose Fibers segment came in at $447 million in the quarter. During the quarter, the company repurchased over $250 million of common shares. "We are pleased with our first quarter performance in Timberlands and Wood Products, as operational excellence efforts resulted in higher earnings compared with the fourth quarter in both businesses despite weaker market conditions," said Doyle Simons, president and chief executive officer. "Our Cellulose Fibers business was challenged by a strengthening U.S. dollar, West Coast port disruptions, and a slower than expected restart of our largest fluff mill after a scheduled maintenance outage in the quarter." Weyerhaeuser shares fell 0.69 percent to close at $31.51 yesterday.