Weyerhaeuser said today that its third-quarter profit nearly tripled on hefty gains from the August sale of its $6 billion packaging business...
Weyerhaeuser said today that its third-quarter profit nearly tripled on hefty gains from the August sale of its $6 billion packaging business. But sales tumbled 37 percent and the Federal Way-based timber and pulp company warned of continued challenges in the fourth quarter.
For the three months ended Sept. 28, net income rose to $280 million, or $1.33 a share, from $101 million, or 47 cents a share, a year ago. But excluding $461 million in divestiture gains and other items, the company posted a loss of $3 million, or 1 cent a share.
Sales fell to $2.62 billion from $4.15 billion.
The results beat estimates of analysts polled by Thomson Reuters, who had expected a wider loss of 6 cents a share on revenue of $2.56 billion.
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The company, one of the world’s largest timberland and wood products manufacturers, issued a cautionary outlook for the rest of the year. Weyerhaeuser expects fourth-quarter earnings in its timberlands segment to decline from the third quarter, and losses in its homebuilding operations are expected to rise due to continuing weakness in the housing market.
Operating losses in its wood products business are expected to worsen as prices and volumes decline in the seasonally slower fourth quarter. Profit in its cellulose fibers segment also are expected to fall sequentially, hurt by lower pulp prices.
“We expect housing market conditions will remain difficult, and our businesses will continue to aggressively manage costs and inventory accordingly,” Chief Executive Dan Fulton said in a statement. “As a result of actions we’ve already taken, we have a strong balance sheet and good liquidity.”
Weyerhaeuser stock closed down 46 cents, or 1.2 percent, at $38.22.