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Weyerhaeuser 2Q surges
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July 14, 1999: 12:27 p.m. ET
Earnings more than double to 82 cents a share, beating expectations
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NEW YORK (CNNfn) - Weyerhaeuser Co.'s earnings for the second quarter more than doubled, surpassing analysts' expectations, on strong demand for wood products from home builders and renovators, the forestry company reported on Wednesday.
Earnings for the quarter ended June 30 were $164 million, or 82 cents a share, more than double the $69 million, or 34 cents a share posted by the Federal Way, Wash.-based company in the year-earlier period. The company was expected to earn 70 cents, based on the average of analysts' estimates from First Call Corp.
Sales for the 13-week period rose 14 percent to $3.04 billion from $2.68 billion.
Strong demand in the residential construction market coupled with rising prices for wood products helped Weyerhaeuser post a solid earnings performance in the latest quarter, said Steven Rogel, Weyerhaeuser's chief executive officer.
Steadily increasing demand from Japan, where the construction market has lagged for the better part of the decade, also helped boost quarterly earnings, Rogel said.
Unexpected downtime at some of the company's pulp and containerboard facilities partially offset the otherwise stellar quarterly performance, the company said. Still, further downtime scheduled for the company's Plymouth, N.C. facility and a labor dispute at its Dryden, Ontario paper mill, which has halted production, may make it difficult for the company to repeat its earnings performance in the third quarter, the company said.
The company's $2.45 billion stock swap related to its June purchase of Canadian forestry giant MacMillan Bloedel Inc. won't impact earnings until the fourth quarter, when the deal closes, Weyerhaeuser said.
For the first six months, Weyerhaeuser posted earnings of $266 million, or $1.33 a share, compared to $154 million, or 77 cents in the first six months of 1998.
The 1999 results included a $60 million, or 30-cent-a-share nonrecurring charge related to the sale of the company's composite products business, and an additional $90 million, or 45-cent-a-share, charge related to a change in the company's accounting practices.
In midday trade, Weyerhaeuser (WY) shares traded on the New York Stock Exchange were up 11/16 at 64-3/16. 
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Weyerhaeuser
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