U.S.-based timber company Weyerhaeuser surpassed Wall Street expectations for first-quarter profit on Thursday, helped by the monetization of timberland development rights that resulted in significant cash flow.
During the quarter, its strategic land solutions unit recorded a $94 million conservation easement transaction, allowing the company to monetize certain non-core assets.
Weyerhaeuser also completed in February the previously announced divestiture of non-core timberlands in Virginia for $192 million. First-quarter pretax special items included a $58 million gain from the sale.
"Looking forward, we are encouraged by the recent increase in lumber pricing and are well positioned to navigate a range of market conditions," President and CEO Devin W. Stockfish said.
The Seattle, Washington-based company posted an adjusted profit of $0.11 per share for the three months ended March 31, compared with analysts' expectations of $0.05 per share, according to data compiled by LSEG.
Weyerhaeuser maintained full-year forecasts for the strategic land solutions business, but anticipates second-quarter adjusted core profit to be about $70 million lower sequentially, in the absence of any large conservation easement transaction.
For the wood products segment, the company expects second-quarter adjusted core profit to be comparable to the first quarter.
Weyerhaeuser shares rose 1.1% in extended trading. As of Thursday's close, the stock was up 3.5% this year.