Weyerhaeuser Corporate WY reported fourth-quarter 2021 effects, through which profits and revenues surpassed the respective Zacks Consensus Estimate regardless of chronic supply-chain demanding situations and the continuing pandemic.
Devin W. Stockfish, president and leader govt officer of Weyerhaeuser, said, “As we input 2022, we proceed to be inspired via sturdy call for basics that may pressure expansion for our companies and stay thinking about growing awesome price for shareholders via our unrivaled portfolio of belongings, industry-leading working efficiency, sturdy ESG basis and disciplined capital allocation.”
Throughout the Headlines
For the fourth quarter, the corporate reported adjusted profits of 49 cents according to percentage, beating the consensus mark via a penny. The base line additionally greater from the year-ago adjusted determine of 48 cents according to percentage.
Internet gross sales for the quarter got here in at $2,206 million, surpassing the consensus mark of $2,129 million. The determine additionally greater 6.9% from $2,063 million reported within the prior-year quarter.
For the fourth quarter, adjusted EBITDA got here in at $674 million, up from $657 million within the year-ago length.
Phase Main points
Timberlands: Internet gross sales (together with inter-segment gross sales of $136 million) from the phase got here in at $565 million, up 12.5% from the year-ago determine of $502 million.
Within the West, fee-harvest volumes had been upper sequentially, and according to unit log and haul prices lowered. Export-sales realizations greater from the 0.33 quarter and home gross sales realizations had been sequentially related. Within the South, gross sales realizations for sawlogs and fiber logs advanced, and fee-harvest volumes greater fairly. In step with unit log and haul prices grew fairly on a sequential foundation, given upper transportation prices.
Adjusted EBITDA got here in at $176 million, up from $167 million within the year-ago quarter.
Actual Property, Power and Herbal Sources: For the fourth quarter, the phase’s internet gross sales amounted to $59 million, up from $30 million a yr in the past. Additionally, adjusted EBITDA got here in at $49 million, reflecting an build up from $23 million a yr in the past. Sequentially, profits and changed EBITDA had been down because of decrease actual property gross sales. The collection of actual property acres offered lowered because of the timing of actual property transactions, in part offset via an build up within the reasonable worth according to acre because of the combination of homes offered.
Picket Merchandise: For the 0.33 quarter, phase gross sales totaled $1,718 million, up 4% from $1,652 million within the prior-year length. Adjusted EBITDA got here in at $517 million, down from $530 million a yr in the past.
For the fourth quarter, gross sales realizations for lumber grew 15% on a sequential foundation. But, the similar for orientated strand board or OSB plummmeted 29% from the 0.33 quarter. Gross sales volumes had been decrease considerably for lumber and modestly declined for OSG from their respective third-quarter ranges. Uncooked subject material prices for engineered wooden merchandise or EWP dropped sequentially however gross sales realization for EWP advanced.
Adjusted profits got here in at $3.37 according to percentage, reflecting an build up of 161.2% from $1.29 reported in 2020. Revenues had been $10.2 billion as opposed to $7.35 billion in 2020. Adjusted EDITDA of $4.09 billion greater 86% from 2020.
As of Dec 31, 2021, Weyerhaeuser had money and money equivalents of $1.88 billion, up from $495 million at 2020-end. The long-term debt used to be $5.1 billion million at quarter-end, down from $5.33 billion at 2020-end.
Internet money from operations used to be $3.16 billion for 2021 when compared with $1.53 billion within the year-ago length.
For first-quarter 2022, the corporate expects profits and changed EBITDA within the Timberland phase to be upper than fourth-quarter 2021. Within the West, it expects upper fee-harvest volumes, home gross sales realizations, fairly advanced export-sales realization, and forestry and street prices. It additionally expects according to unit log and haul prices to say no reasonably sequentially. Within the South, the corporate expects gross sales realizations to be consistent with fourth-quarter 2021. It additionally anticipates seasonally decrease forestry and street prices within the area. In the meantime, WY expects marginally decrease fee-harvest volumes and better according to unit log and haul prices.
Within the Actual Property, Power and Herbal Sources phase, Weyerhaeuser anticipates profits and changed EBITDA to be upper than fourth-quarter 2021. For 2022, it expects adjusted EBITDA to be $300 million.
Inside the Picket Merchandise phase, the corporate predicts profits and changed EBITDA to be consistent with fourth-quarter 2021.
Weyerhaeuser these days carries a Zacks Rank #1 (Robust Purchase).
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