See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
UFP Industries, Inc. (UFPI) - free report >>
Weyerhaeuser Company (WY) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UFP Industries, Inc. (UFPI) - free report >>
Weyerhaeuser Company (WY) - free report >>
Image: Bigstock
Weyerhaeuser (WY) Sells Liquid Packaging Facility to Nippon
Forest product manufacturer and supplier Weyerhaeuser Company (WY - Free Report) announced that it has completed divesting its liquid packaging board business to Nippon Paper Industries Co., Ltd. The assets sold were part of the company’s previous business segment, Cellulose Fibers, now treated as a discontinued item.
As revealed, the sold-off assets included Weyerhaeuser’s Longview, WA-based mill, which has an annual capacity of 280,000 tons. The company intends to use the divestment-proceeds of approximately $285 million in cash or $225 million after-tax for repaying debts.
The disposition is part of Weyerhaeuser’s strategic decision to help it concentrate on its core timber, land, and forest products business. In addition, in May, the company agreed to sell its Cellulose Fibers pulp mills for approximately $2.2 billion cash to International Paper Company (IP - Free Report) . However, the company is still working on finding a suitable alternative for its publishing papers joint venture facility. Also, the company is in the process of permanently shutting down its lumber and plywood mill in Columbia Falls, MT.
We believe such strategic decisions will enable Weyerhaeuser to boost its profitability in the quarters ahead. Currently, the Zacks Consensus Estimate for the stock is pegged at 81 cents per share for 2016 and $1.18 per share for 2017.
WEYERHAEUSER CO Price and Consensus
WEYERHAEUSER CO Price and Consensus | WEYERHAEUSER CO Quote
Zacks Rank & Other Stocks to Consider
Weyerhaeuser, with a market capitalization of $23.9 billion, currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the building products industry include Potlatch Corporation (PCH - Free Report) and Universal Forest Products Inc. (UFPI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>