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NEW YORK — Weyerhaeuser Co., one of the largest U.S. timberlands and wood products producers, surprised investors by beating Wall Street's earnings expectations. During a conference call with top management, officials said a big part of their ability to top analyst estimates was the "increased sales of non-strategic lands." That refers to a $31 million contribution from the company's sizable timberlands business.
QUESTION: Can you provide any details about exactly how much money you got from the "increased sales of non-strategic lands"?
RESPONSE: Tom Gideon, executive vice president, said most of the timberland sales in the second quarter came from the divestiture of "about 14,000 acres in the southwest Washington state area. Weyerhaeuser got some $34 million for the acreage, or approximately $2,500 per acre."
Later, the chief financial officer added that the company netted a little less than $30 million on the sale.
The disclosure illuminates the difference between what Wall Street expected — a loss of $141.4 million, according to a Thomson Reuters survey — and the adjusted loss of $125 million that Weyerhaeuser reported. In other words, without the land sale, the timber producer may not have beaten Wall Street's earnings expectations.
