Federal Way, WA, April 22--Weyerhaeuser reported first-quarter earnings that nearly doubled on higher sales and fewer legal and restructuring costs. The company also raised its quarterly dividend by 25 percent.
The company earned $239 million, or $0.98 per share, up from $121 million, or $0.54 per share, a year ago. Excluding items such as legal settlements, restructuring and asset sales, the company's earnings would have been $1.03 per share in the latest period, up from $0.62 per share in the 2004 first quarter.
Revenue grew 10 percent to $5.55 billion from $5.04 billion, as sales increased across business units. Favorable foreign exchange rates contributed $13 million.
However, analysts were looking for profit of $1.14 per share on sales of $5.68 billion.
The company said its core timberland and real estate businesses contributed most significantly to the first-quarter profit jump, though both units posted earnings below fourth-quarter results. Weyerhaeuser said timberlands earnings fell $17 million from the fourth quarter, mostly because of lower sales of non-strategic timberlands. Real estate profit was down from the fourth quarter because of seasonally lower single-family home closings.
Meanwhile, Weyerhaeuser's wood products earnings fell 24 percent to $131 million from a year earlier. The company's pulp and paper unit swung to a profit of $19 million and its containerboard and packaging business doubled its earnings from a year ago to $48 million.
The company boosted its quarterly dividend to 50 cents from 40 cents, citing confidence in its financial strength. The dividend will be payable May 31 to shareholders as of May 6.
