Weyerhaeuser posts loss, sees 'erosion'

Lumber company swings to a loss on housing weakness, predicts difficulties will continue through 2008.

NEW YORK (AP) -- Weyerhaeuser Co. said Friday it swung to a fourth-quarter loss as the deteriorating U.S. housing market cut into demand for lumber - a downturn the paper and wood products company expects will continue through 2008.
Federal Way, Wash.-based Weyerhaeuser (WY, Fortune 500) reported a loss of $63 million, or 30 cents per share, compared with a profit of $507 million, or $2.12 per share, a year earlier. Excluding write-downs from housing-related business, restructuring costs and other special items, Weyerhaueser would have earned $90 million, or 42 cents per share, in the latest period.
Revenue fell 18% to $3.94 billion from $4.8 billion.
Analysts polled by Thomson Financial had expected a profit of 35 cents per share excluding items, but forecast higher revenue of $4.13 billion.
Chief Executive Steven Rogel called 2007 a "challenging year" for the paper and wood products industry. Paper demand has been gradually weakened by a shift to the Internet for news, billing, mailing and other information that was once communicated on paper. The housing downturn has made it more difficult for the industry to maintain profits.
"The continuing erosion of the U.S. housing market created very unfavorable market conditions," Rogel said in a statement. He added that the company expects those conditions to continue through 2008.