Sector: Real Estate|Industry: REIT - Specialty|Market Cap: $20.61B|Employees: 9.3K
Weyerhaeuser Company is one of the world's largest private owners of timberlands, managing millions of acres in the U.S. and Canada. They also manufacture and distribute wood products, including structural lumber and engineered wood. The company's core business model focuses on sustainable forestry and maximizing the long-term value of their timberlands, supplying products primarily to the residential and commercial construction markets.
Net sales decreased by 3% YoY to $1.939 billion, primarily due to a $79 million decrease in Wood Products net sales, which was partially offset by a $29 million increase in Real Estate, Energy and Natural Resources net sales. This indicates a mixed performance across different segments.
Operating income decreased by 15% YoY to $270 million, primarily due to a $65 million decrease in consolidated gross margin. This decline was partially offset by a $25 million product remediation recovery recorded in the second quarter.
Net earnings decreased by 25% YoY to $173 million, driven by a $49 million decrease in operating income and an $8 million increase in income tax expense. This indicates a substantial decline in profitability compared to the previous year.