Weyerhaeuser's third quarter profit skids 55 percent

Weyerhaeuser's third quarter profit skids 55 percent

A logging truck passes the Weyerhaeuser Pulp Mill in Cosmopolis, Wash. file photo.

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Story Published: Oct 31, 2007 at 8:09 AM PDT

Story Updated: Oct 31, 2007 at 8:09 AM PDT

By Associated Press

FEDERAL WAY, Wash. (AP) - Weyerhaeuser Co., one of the world's largest lumber and paper producers, said Wednesday its third-quarter profit sank 55 percent on charges and weakness in the housing construction market that hurt its real estate business.

It said it expects earnings from the timberland segment to be lower this quarter than in the third quarter.

Net income fell to $101 million, or 47 cents per share, in the three months ended Sept. 30 from $224 million, or 91 cents per share, a year ago.

Excluding one-time items, the company earned $118 million, or 55 cents per share, in the latest quarter.

Revenue fell nearly 10 percent to $4.15 billion from $4.55 billion a year ago.

Analysts surveyed by Thomson Financial expected earnings of 49 cents per share on revenue of $4.39 billion. The estimates typically exclude one-time items.

Weyerhaeuser said weak demand in housing hurt results, and the company said it expects fourth-quarter earnings in its timberland segment to come in lower than in the third quarter.

"An already weak wood products market deteriorated further during the third quarter," Chief Executive Steven R. Rogel said in a statement.

Its shares fell 81 cents to $73.50 in premarket trading.

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