(Reuters) – U.S. forest products company Weyerhaeuser (NYSE:) beat first-quarter earnings estimates Thursday thanks to increased demand for home construction.
The tight supply of existing homes in the United States pushed buyers toward newly built homes, which helped forest products companies like Weyerhaeuser.
Seattle-based Weyerhaeuser's adjusted quarterly core profit from its real estate, energy and natural resources segment rose 5.6% to $94 million from a year earlier, and rose 24.3% to $184 million. of dollars from its wood products segment.
The company reported adjusted earnings of 16 cents per share for the quarter ended in March. 31, compared to average analyst estimates of 15 cents per share, according to LSEG data.
Weyerhaeuser owns or controls approximately 10.5 million acres of forest land in the United States and manages additional forest land under long-term licenses in Canada.
It expects higher sales volumes, slightly lower log costs and moderately lower manufacturing unit costs in the second quarter for lumber.
The company reported quarterly revenue of $1.8 billion, a 4.5% drop from a year ago, missing estimates of $1.85 billion.
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