Weyerhaeuser has posted improved second quarter profits of US$420m on the back of higher domestic log prices.
The company’s profits were up from US$369m in the second quarter of 2004, while sales grew to US$5.8bn from US$5.7bn.
Weyerhaeuser’s wood product earnings soared by US$73m to US$204m due primarily to larger shipment volumes for all core product lines. Higher prices for engineered wood products were offset by lower prices for OSB and plywood, while average lumber prices were “flat”.
Third quarter profits are expected to be slightly lower, due to reduced harvests and sales activity from normal seasonal shutdowns.
Canada-based wood panel giant Norbord saw its second quarter profits drop to US$67m from US$127m a year earlier because of increased resin and wood costs, plus a fall in panel prices.
The company’s net sales declined to US$369m from US$439m.
It said overall demand for OSB was down in the first half compared to 2004. But it expects business to pick up during the second half.
