Weyerhaeuser Co’s net earnings and sales declined year-on-year in the third quarter as wood products continued to experience weakened demand.
Net earnings were down US$123m year-on-year to US$101m in the third quarter, with net sales down from US$4.6bn in 2006 to US$4.1bn in 2007.
Wood products was the only sector to contribute a loss to the third-quarter results, US$131m compared with a US$123m loss in the second quarter and US$11m profits in 2006. Weyerhaeuser’s timberlands contributed US$165m to the company’s pre-tax earnings, up US$23m on the second quarter but down US$13m on the same period in 2006.
“An already weak wood products market deteriorated during the third quarter,” said chairman, president and chief executive officer Steven Rogel.
“We were adjusting our production to meet our reduced order level, but we took additional action in the quarter as demand and prices slid. We will continually adjust our operating posture as necessary to balance production demand.”
Weyerhaeuser said that it expects losses in the fourth quarter for its wood products sector to be higher “due to the traditional seasonal slowdown”, with lower log sales and weak housing markets hitting the company’s timberlands.
