Weyerhaeuser‘s profits more than doubled in the fourth quarter of 2004 to US$199m but warnings about the impact of bad weather on the current quarter’s earnings sent the company’s share price tumbling 3.1%.
Fourth quarter profits were up 116% from US$92m a year earlier, while sales were up from US$5.15bn to US$5.89bn.
Weyerhaeuser’s wood products division saw its profits dip to US$72m from US$111m a year ago.
Softwood lumber and structural panel prices were significantly lower than in the third quarter, while higher delivered log costs caused by weather-related transport disruptions and shortages also affected the division.
Higher resin and energy costs and a stronger Canadian dollar hit the business, with key product volumes down by about 6% due to seasonal market conditions. The business also carried out extended maintenance at several facilities, including its largest OSB plant.
Bad weather in southern California could impact the division due to slower housing starts in the region.
