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Alphonse Quenneville

Housing crisis slashes results at Weyerhaeuser - Net profit crumbles into loss of $63 million U.S. - Associated Press

SEATTLE–Weyerhaeuser Co., one of the world's largest lumber and packaging producers, has reported a fourth-quarter loss as the deteriorating United States housing market cut into demand for lumber.

Weyerhaeuser is based in Federal Way, Wash., and has plants in British Columbia and other parts of Canada.

The company lost $63 million (U.S.), or 30 cents per share, after a profit of $507 million, or $2.12 per share, a year earlier, Weyerhaeuser said yesterday.

Excluding writedowns from housing-related business, restructuring costs and other special items, Weyerhaeuser would have earned $90 million, or 42 cents per share, in the quarter.

Revenue fell 18 per cent to $3.94 billion, from $4.8 billion a year earlier.

"Until the housing market recovers, our real estate, wood-products and timberlands businesses will struggle," Daniel Fulton, Weyerhaeuser's president, said during a conference call.

Weyerhaeuser owns home-builder operations in the greater Seattle area; Houston; Scottsdale, Ariz.; Southern California; Las Vegas and suburban areas around Washington.

The company also invests in residential real estate development and sells forest land as home sites.

Real estate segment earnings sank 93 per cent to $22 million in the fourth quarter as the U.S. housing market crumbled.

Published Sunday, February 10, 2008 10:55 AM by Alphonse Quenneville

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