Weyerhaeuser Reports Earnings, Net Sales Down $300 Million
Press release from the issuing company
FEDERAL WAY, Wash., April 17, 2001 — Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $107 million, or 49 cents per share, that include a nonrecurring after-tax charge of $26 million associated with the decision to outsource certain information technology services as part of the company’s program to streamline support services. Excluding the charge, first quarter 2001 earnings were $133 million, or 61 cents per common share. This compares with $244 million, or $1.04 per share, 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.
"Our results reflect the challenging market conditions we faced during the first quarter," said Steven R. Rogel, chairman, president and chief executive officer. "At the same time, we benefited from the hard work of our people who are improving our operating efficiencies and successfully integrating our recent acquisitions. As we look to the future, all of us are focused on taking the steps necessary to ensure that Weyerhaeuser generates solid shareholder returns regardless of market conditions."
Weyerhaeuser also said that during the first quarter it achieved an additional $33 million in synergies related to the integration of MacMillan Bloedel and Trus Joist. Charges during the first quarter for the integration were $7 million. To date, Weyerhaeuser has achieved $173 million in synergies from these two acquisitions and remains ahead of its goal of achieving $200 million before the end of 2002.
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