For Immediate Release |
For More Information E-Mail. |
April 15, 1997 |
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Weyerhaeusers Lower Earnings for First
Quarter of 1997 Reflect Lower Pulp, Paper and
Packaging Prices
FEDERAL WAY, Wash., April 15, 1997
Weyerhaeuser today reported net earnings of $46
million or 22 cents per common share for the
first quarter of 1997 before a special after tax
net charge of $25 million or 12 cents per common
share, which the company announced in February.
The 1997 first quarter net earnings of $21
million or 10 cents per share compares with net
earnings of $142 million, or 72 cents per common
share for the same period of 1996. Net sales
in the first quarter of 1997 were $2.6 billion,
equaling the amount reported for the first
quarter of 1996.
The after tax charge reflects the
companys on-going efforts to narrow its
portfolio and upgrade the quality of assets in
its core businesses. The charge includes losses
from the anticipated consolidation, closure or
disposition of certain recycling facilities; from
the completed, permanent closure of the
corrugated medium machine at Longview, Wash.; and
from the sale of Shemin Nurseries, a wholesale
nursery business based in Danbury, Conn. These
were somewhat offset by interest income from the
favorable federal tax decision relating to
casualty losses associated with the eruption of
Mount St. Helens in 1980.
Timberlands and Wood Products segment
operating earnings for the first quarter of 1997
were $171 million compared to $152 million for
the same period of 1996 as a result of strong
lumber prices in the United States. Earnings were
higher than year-ago levels despite significantly
lower oriented strand board prices in the United
States and lower prices and log shipments to
Japan caused by a slowdown in Japanese housing
demand.
Weyerhaeusers Pulp, Paper and Packaging
segment operating earnings were $6 million for
the first quarter of 1997, before the effect of
the special charge, compared to $162 million for
the first quarter of 1996. Including the pretax
charge of $49 million for closure of the medium
machine and the consolidation of the recycling
centers, the segment reported an operating loss
of $43 million.
Weyerhaeuser Real Estate Company and
Weyerhaeuser Financial Services earned $6 million
in the quarter, compared to $10 million for the
same period of last year.
"Our 1997 first quarter earnings were
strongly depressed by lower prices for pulp,
paper and packaging products compared to year-ago
levels," said John W. Creighton, Jr.,
president and chief executive officer of
Weyerhaeuser Company. "Pulp, paper and
packaging markets are still difficult, but we are
continuing to focus on our business improvement
plans, which will strengthen our long-term
competitive position."
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