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.
Weyerhaeuser Divests Cellulose Fibers Business for $2.2B
Read MoreHide Full Article
Weyerhaeuser Co. (WY - Free Report) completed the divestiture of its Cellulose Fibers business to International Paper Company (IP - Free Report) for $2.2 billion cash, subject to post-closing modifications. Weyerhaeuser declared that the move is in sync with its aim of lowering debt and attaining a more focused growth in business.
Over the last 30 days, Weyerhaeuser’s shares recorded an average return of 6.88% – outperforming 4.96% returns provided by the S&P 500 index.
However, this Zacks Rank #3 (Hold) stock underperformed the Zacks-categorized Building Products- Wood industry that boasts an average return of 9.32% during the comparable period.
Spin-Off Insights
Weyerhaeuser sold five pulp and two modified fiber mills to International Paper.
The company’s divested pump mills are located in Columbus, MS, Flint River and Port Wentworth, GA, New Bern, NC, and Grand Prairie, Alberta. These mills have an annual operating capacity of roughly 1.9 million metric tons.
The two modified fiber mills of the company are located in Gdansk, Poland and Columbus, MS.
Weyerhaeuser intends to substantially use $1.6 billion after tax proceeds of the transaction for repaying its debt.
Moving Ahead
Weyerhaeuser plans to focus on growth in business, provide higher shareholders’ return and lower debt burden from the proceeds of the above-mentioned divestiture.
Prior to this, the company had sold its liquid packaging board trade to Nippon Paper Industries Co., Ltd. (Jun 2016) and its publishing papers business to One Rock Capital Partners, LLC. (Oct 2016).
Weyerhaeuser aims to become the most prominent land, forest and timber products company in the market following these diligent moves.
Our View
Weyerhaeuser’s stock was valued at $30.61 per share as of Dec 1, 2016. The stock has gained roughly 2.1% since the third-quarter 2016 earnings release on Oct 28, 2016. The company’s quarterly earnings surpassed the Zacks Consensus Estimate by 4.5%
Weyerhaeuser intends to fortify its business on meaningful divestitures, cost-control measures and recovering U.S. housing market. However, risks arising from adverse forex movements, global uncertainties and cutthroat competition might impact the company's profitability.
Over the last 60 days, the Zacks Consensus Estimate for this stock remained unchanged for 2016 and marginally moved north 0.9% for 2017, reflecting brokers’ neutral sentiments.
Stocks to Consider
Some better-ranked stocks in the industry are Willdan Group, Inc. (WLDN - Free Report) and MasTec, Inc. (MTZ - Free Report) .
Willdan Group delivered an average positive earnings surprise of 18.72% over the trailing four quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MasTec currently carries a Zacks Rank #2 (Buy). It posted an average positive earnings surprise of 61.27% over the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Weyerhaeuser Divests Cellulose Fibers Business for $2.2B
Weyerhaeuser Co. (WY - Free Report) completed the divestiture of its Cellulose Fibers business to International Paper Company (IP - Free Report) for $2.2 billion cash, subject to post-closing modifications. Weyerhaeuser declared that the move is in sync with its aim of lowering debt and attaining a more focused growth in business.
Over the last 30 days, Weyerhaeuser’s shares recorded an average return of 6.88% – outperforming 4.96% returns provided by the S&P 500 index.
However, this Zacks Rank #3 (Hold) stock underperformed the Zacks-categorized Building Products- Wood industry that boasts an average return of 9.32% during the comparable period.
Spin-Off Insights
Weyerhaeuser sold five pulp and two modified fiber mills to International Paper.
The company’s divested pump mills are located in Columbus, MS, Flint River and Port Wentworth, GA, New Bern, NC, and Grand Prairie, Alberta. These mills have an annual operating capacity of roughly 1.9 million metric tons.
The two modified fiber mills of the company are located in Gdansk, Poland and Columbus, MS.
Weyerhaeuser intends to substantially use $1.6 billion after tax proceeds of the transaction for repaying its debt.
Moving Ahead
Weyerhaeuser plans to focus on growth in business, provide higher shareholders’ return and lower debt burden from the proceeds of the above-mentioned divestiture.
Prior to this, the company had sold its liquid packaging board trade to Nippon Paper Industries Co., Ltd. (Jun 2016) and its publishing papers business to One Rock Capital Partners, LLC. (Oct 2016).
Weyerhaeuser aims to become the most prominent land, forest and timber products company in the market following these diligent moves.
Our View
Weyerhaeuser’s stock was valued at $30.61 per share as of Dec 1, 2016. The stock has gained roughly 2.1% since the third-quarter 2016 earnings release on Oct 28, 2016. The company’s quarterly earnings surpassed the Zacks Consensus Estimate by 4.5%
WEYERHAEUSER CO Price
WEYERHAEUSER CO Price | WEYERHAEUSER CO Quote
Weyerhaeuser intends to fortify its business on meaningful divestitures, cost-control measures and recovering U.S. housing market. However, risks arising from adverse forex movements, global uncertainties and cutthroat competition might impact the company's profitability.
Over the last 60 days, the Zacks Consensus Estimate for this stock remained unchanged for 2016 and marginally moved north 0.9% for 2017, reflecting brokers’ neutral sentiments.
Stocks to Consider
Some better-ranked stocks in the industry are Willdan Group, Inc. (WLDN - Free Report) and MasTec, Inc. (MTZ - Free Report) .
Willdan Group delivered an average positive earnings surprise of 18.72% over the trailing four quarters. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MasTec currently carries a Zacks Rank #2 (Buy). It posted an average positive earnings surprise of 61.27% over the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>