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.
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).
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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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.
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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