Weyerhaeuser report significant earnings decrease

Office World News, Jul 2001

Weyerhaeuser Co. reported first quarter net earnings of $107 million, including a nonrecurring after-tax charge of $26 million. Excluding the charge, first quarter 2001 earnings were $133 million. This compares with $244 million, for the first quarter of 2000. Net sales for the first quarter 2001 were $3.6 billion compared with $3.9 billion for the same period last year, said Weyerhaeuser. Pulp, paper, and packaging earnings were $167 million compared with $186 million in the first quarter of 2000.

Declining pulp prices and lower containerboard packaging volumes contributed to the decrease. Pulp prices came under pressure during the first quarter, a trend that is expected to continue into the second quarter. Weyerhaeuser expects the slowing global economy to result in weaker demand for products in all its major pulp, paper, and packaging product lines that will result in additional production curtailments in the second quarter.