Weyerhaeuser reported a sharp improvement in its wood products segment in the first quarter, supported by higher lumber and panel prices.<\/p>\n
Adjusted EBITDA for wood products rose to $71 million from a loss in the fourth quarter. The increase was driven by stronger pricing, with lumber and oriented strand board (OSB) realizations up 13% and 8%, respectively.<\/p>\n
Lumber sales volumes were slightly higher, while unit manufacturing costs declined and log costs remained broadly stable. In OSB, sales volumes and manufacturing costs were slightly lower, while fiber costs increased modestly.<\/p>\n
Engineered wood products showed mixed performance. Sales volumes increased, particularly for solid section and medium-density fiberboard products, but prices were lower across most product categories. Raw material costs rose, notably for OSB webstock, while manufacturing costs remained broadly unchanged. Distribution results also improved, supported by higher sales volumes.<\/p>\n
For the second quarter, the company expects wood products earnings to remain broadly in line with the first quarter, excluding the effect of price changes. Lumber volumes are projected to increase, with slightly higher log costs and stable manufacturing costs. OSB volumes and manufacturing costs are expected to rise, along with moderately higher fiber costs. Engineered wood products are expected to record higher volumes, stable pricing and slightly higher raw material costs.<\/p>\n
In timberlands, Adjusted EBITDA increased to $120 million from $114 million in the previous quarter. In the U.S. West, fee harvest volumes were slightly higher due to improved weather conditions, while domestic log realizations were moderately higher. Per unit log and haul costs and forestry and road costs were seasonally lower.<\/p>\n
In the U.S. South, fee harvest volumes declined slightly, mainly due to adverse weather early in the quarter. Sales realizations and log and haul costs were broadly unchanged, while forestry and road costs increased.<\/p>\n
Timberlands earnings are expected to remain broadly stable in the second quarter. Harvest volumes are projected to increase moderately in the West and slightly in the South, while log and haul costs and forestry expenses are expected to rise seasonally.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,5204],"tags":[],"class_list":["post-98600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-daily-news","topic-forestry","topic-lumber","topic-sawmilling","topic-wood-products"],"acf":[],"yoast_head":"\n