Analyst Note| Spencer Liberman |
No-moat-rated Weyerhaeuser reported fourth-quarter results that were largely in line with our expectations. Softening housing demand in the United States and falling lumber prices in the fourth quarter led to a decline in Weyerhaeuser’s financial results. Revenue declined 17% year over year, with much of the decline concentrated in the company’s wood products business. Consolidated operating margins dropped over 1,400 basis points from a year ago to 12.7% due to a decline in lumber prices, lower production volumes, and higher unit manufacturing costs.