Weyerhaeuser Company Announces COVID-19 Business Update

SEATTLE (Scrap Monster):  Weyerhaeuser Company has provided an update on actions taken by the company in response to the COVID-19 pandemic.

The company has decided to adjust operating capacity at certain manufacturing facilities in the month of April this year. Accordingly, operating capacity of its lumber facilities will be reduced by approximately 20%. The OSB and engineered wood products facilities will also see capacity cuts by 15% and 15-20% respectively. This will be achieved through a combination of mill curtailments and shift reductions, the company said.

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As part of efforts to strengthen its balance sheet, Weyerhaeuser has decided to limit or defer non-essential operating expenses. The capital expenditure for 2020 will be reduced by approximately $70-90 million. The company will review its capital allocation plans in response to evolving market conditions. In addition, it has also decided to increase cash on hand by $550 million through a draw on its revolving credit facility.

Weyerhaeuser cited minor supply chain disruptions in connection with transportation and delivery of export logs to certain Asian markets. Devin W. Stockfish, president and chief executive officer expressed confidence that the company will be able to manage through the disruption and create long-term value for its shareholders.