Federal Way , WA, October 21, 2005-- Weyerhaeuser said Friday third-quarter profit plunged 52% amid difficult business conditions.
Earnings declined to $285 million, or $1.16 per share, down sharply from $594 million, or $2.45 per share, last year. Total net sales and revenue edged down to $5.6 billion from $5.68 billion.
Weyerhaeuser said its latest results included several special items, including charges amounting to 14 cents per share and gains of 37 cents per share. Last year's results were boosted by gains totaling 83 cents per share.
Excluding the items, earnings for the latest quarter were 93 cents per share. Analysts had forecast adjusted earnings for the latest quarter excluding items of 98 cents per share and revenue of $5.7 billion, according to a Thomson Financial poll.
"Our results in the third quarter reflect the difficult business conditions we face in certain segments," Chief Executive Steven Rogel said in a statement.
Rogel said that while the recent hurricanes didn't significantly hurt the company's operations, it expects to continue feeling the residual effects of the storms in terms of higher energy, chemical and transportation costs. "This will put additional pressure on our businesses in the fourth quarter," Rogel said.
Rogel said the company will continue to take actions to make Weyerhaeuser more competitive while returning cash to investors, including a new stock buyback plan of up to 18 million shares, or 7.4% of the company's outstanding common stock.
Separately Friday, the company said it is closing two mills in Washington that are no longer viable because of their high cost and small scale.
