Weyerhaeuser Company’s (WY) first quarter net loss was $20 million compared with a net loss of $264 million in the year-ago quarter. Reported net loss per share was 10 cents compared with a net loss per share of $1.25 in the first quarter of 2009, and 24 cents anticipated by the Zacks Consensus Estimate. The company has showed improvements since 2009 based on an increase in net sales during the quarter, which is attributable to improved economic conditions.
Net sales were $1,419 million, representing an increase of 11.3% from $1,275 million during the year-ago quarter. Revenue from the Timberland segment was $202 million, 28.7% up from $157 million during the same period in 2009.
The Wood Products segment reported net revenues of $604 million compared with $542 million in the first quarter of 2009, representing an increase of 11.4%. Cellulose Fibers’ net revenues were $410 million, an increase of 12.6% from $364 million in the year-ago quarter.
Real Estate reported net revenues of $151 million, a decline of 12.2% from $172 million in the first quarter of the previous year due to lower average home prices. Corporate & Other segment’s revenues were $52 million compared with $40 million in the year-ago quarter.
During the first quarter, operating loss was $84 million from a loss of $330 million in the first quarter of fiscal 2009. At the end of the quarter, cash and cash equivalents were $2,150 million, up from $1,869 million at the end of the previous quarter. Long-term debt decreased to $5,671 million from $5,683 million at the end of the fourth quarter of 2009.
The global economic crisis has caused downturns in several markets, including the construction and residential markets. Moreover, the industry in which Weyerhaeuser operates is highly cyclical in nature. However, the company is well positioned to increase operating efficiencies and decrease manufacturing costs by conservation of energy. We reiterate our Neutral recommendation.
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