Weyerhaeuser faces challenging markets, but remains in profit2 November 2011
Weyerhaeuser said all its businesses faced challenging markets in Q3 as the housing market languished and demand slowed from China.
Net profits reached US$157m from sales of US$1.6bn. Last year profits were US$1.16bn, but the vast majority of this was down to income tax adjustments related to the company’s conversion to a real estate investment trust.
The wood products division recorded sales from continuing operations of US$605m and a loss of US$53m.
I-joist and structural lumber production volumes were higher than a year ago but softwood plywood reduced.
The division was hit by Q3 special charges of US$46m, primarily comprised of asset impairments due to the permanent closure of four engineered wood products facilities, restructuring costs and charges related to the sale of hardwood operations.
The company expects lower selling prices for lumber and OSB and reduced sales volumes and operating rates across all product lines.