Federal Way, WA, United States (4E) – Weyerhaeuser Co. reported on Friday that profit in the fourth quarter dropped due to charges for some items.
Fourth-quarter net earnings attributed to common shareholders fell significantly to $43mn or $0.07 a share from $143mn or $0.26 a share in the year-earlier period. The latest results included after-tax charges of $114mn for special items.
A pickup in the housing market has resulted to strong performance in the company’s wood products division, its biggest unit by sales, a reversal from the $926mn decline from $ 1.03bn in the third quarter. The timber conglomerate said the drop was partially because of the “unusually severe weather”.
In the latest quarter, Weyerhaeuser also said that it used funds the company received in the purchase of Longview Timber LLC to repay debt it obtained in the acquisition.
Weyerhaeuser expects to see in the current quarter sharply higher earnings from the Timberlands unit, excluding dispositions of non-strategic timberlands, and improved earnings from the Wood Products segment. The company predicts average selling prices for lumber will rise, better operating rates and seasonally improved sales volumes.