Weyerhaeuser’s second-quarter earnings from continuing operations rose 28 percent compared with the same quarter a year ago, the forest products company reported Friday.
Excluding discontinued operations and special items, Weyerhaeuser earned $234 million, or 40 cents a share, in the second quarter, exceeding analyst predictions of 35 cents per share. This is up from $183 million, or 33 cents a share, in the same quarter last year.
Net sales from continuing operations rose only 5 percent in the second quarter to $1.96 billion from $1.87 billion a year ago, falling short of analysts’ estimate of $2.27 million.
“Severe winter weather earlier this year dampened the start of the spring building season,” Weyerhaeuser Chief Executive Officer Doyle Simons said in a conference call with analysts Friday morning.
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Last month Weyerhaeuser completed a merger of its home-building subsidiary, Weyerhaeuser Real Estate Co., with TRI Pointe Homes of Irvine, California.
The results from continuing operations don’t include $22 million in earnings from those discontinued operations or $24 million from special items related to its retirement plan.
The company said in a release that its third quarter will include a net gain of approximately $1 billion from the divestiture of its real estate branch.
Simons said the divestiture and last year’s Longview Timber acquisition are the latest steps to narrowing Weyerhaeuser’s focus to timberlands and forest products.
Although the results beat expectations in terms of earnings per share, the low sales didn’t impress investors, who pushed down the stock after Friday’s report.
Weyerhaeuser shares closed down 9 cents, or 0.3 percent, at $31.23.