Weyerhaeuser reported net earnings of US$395m for 2006, down from US$733m the previous year, on sales of US$21.9bn.
The company’s wood products business – currently being restructured – reported pre-tax earnings in the fourth quarter of 2006, down US$140m from the third quarter.
The company blamed the downturn in residential housing construction, combined with the normal seasonal slowdown in construction, for a significant reduction in demand and prices for wood products.
Deltic Timber Corporation also blamed the difficult economic conditions, although it said it had managed to maintain stable prices for its pine sawn timber, as well as improving efficiencies in the manufacturing process.
Sales for the fourth quarter were US$26.7m, down from US$46m in the same period in 2005, while the company reported a loss of US$2m. Net income for the year was US$11.3m (US$14.5m: 2005) on sales of US$153m.
Boosted by a C$118.9m duty refund – the outcome of the long-running Canada-US softwood lumber dispute, International Forest Products reported EBITDA of C$117m in the fourth quarter of 2006, compared with C$14.5m in the previous quarter and C$19.7m in the same period last year. Total sales for the year were C$824m with net earnings of C$95.5m.
Meanwhile volumes at TimberWest were hit by weather-related production problems, which meant less product to sell into domestic and export markets.
The company said it expected prices for logs and timber to remain weak in the US market while performing stronger in other markets.
