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Weyerhaeuser 2Q Earnings Decline to $32M
FEDERAL
WAY, Wash. – Weyerhaeuser Co., one of the world’s largest lumber and
paper producers, said Friday its second-quarter profit dropped sharply
due hefty charges and weakness in the housing construction markets.But
its earnings excluding one-time items beat Wall Street expectations,
and its shares rose nearly 3 percent in morning trading.Net income fell
to $32 million, or 15 cents per share, in the three months ended June
30 from $298 million, or $1.19 per share, a year ago.Excluding charges
and gains, the company earned $104 million, or 48 cents per share, in
the latest quarter, compared with $273 million, or $1.09 per share, in
the year-earlier period.Revenue fell to $4.33 billion from
$4.87 billion a year ago.The results still topped consensus estimates
of analysts surveyed by Thomson Financial, who were expecting earnings
of 39 cents per share on revenue of $4.24 billion.Weyerhaeuser
shares rose $2.02, or 2.9 percent, to $70.75 in morning trading.The
company said weak demand in housing continued to affect segment
results. Average prices realized for lumber, plywood, and oriented
strand board increased slightly from the first quarter, partially
offset by decreased prices for engineered lumber.Sales volumes for
lumber and engineered wood products increased, but plywood and oriented
strand board volumes declined. The strengthening Canadian dollar hurt
the contributions from products manufactured in Canada.”In the coming
quarter, we will look for ways to further reduce costs and improve
performance as we face challenges produced by the continuing sluggish
housing market,” said Steven R. Rogel, chairman, president and chief
executive. “Meeting these challenges will require tough decisions and
the focus of every employee.”
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