Federal Way, WA, October 25, 2006--Weyerhaeuser said its third-quarter profit fell 26 percent as the downturn in the housing market drove wood product prices and demand down sharply.
Net income fell to $211 million, or 85 cents per share, from $285 million, or $1.16 per share, a year ago. Revenue slipped 2 percent to $5.33 billion from $5.43 billion last year.
Analysts polled by Thomson Financial had expected a profit of 87 cents per share on $5.57 million in revenue.
"While anticipated, the housing market decline was more abrupt and drove wood products prices and demand into a deeper plunge than expected," said Steven R. Rogel, chairman, president and chief executive officer, in a statement. "We are taking the necessary actions to match our production to demand and over the long-term, remain confident about the residential housing market."
The latest quarter included charges of $58 million, or 23 cents per share, related to the closure of a Canadian facility and asset impairments and costs related to facility closures or curtailments.
The charges were partially offset by a gain of $31 million, or 13 cents per share, from the sale of its North American composites business, and a gain of $15 million, or 6 cents per share, due to a reduction of the reserve for hardboard siding claims.
Last year's earnings included a gain of $75 million, or 31 cents per share, for the sale of MAS Capital Management Partners, a joint venture; a charge for closing facilities of $19 million, or 8 cents per share. and a loss of $14 million, or 6 cents per share, for the early repayment of debt.
