Weyerhaeuser breaks even in Q3

Federal Way, Wash.-based Weyerhaeuser says it broke even in the third quarter -- it neither lost money, nor made money -- compared with net earnings of $280 million in the same quarter last year.

The major U.S. forest products company reported net sales from continuing operations of $1.407 billion, down from $2.107 billion in the prior year quarter, a 33% decline.

Despite the sales plunge, the company beat Wall Street's expectations, coming in at a loss of 26 cents per share when excluding one-time charges such as an alternative fuel credit, while estimates were for a loss of 45 cents per share.

"With three of our four business segments linked closely to U.S. housing starts, this recession continues to affect our financial performance," said Dan Fulton, president and CEO. "Although we saw signs of improvement in the housing sector early in the third quarter, the market remains fragile. In response, we continue cutting costs and improving operations to weather the prolonged downturn and emerge a stronger company when the housing market eventually recovers."

The latest housing starts report showed residential construction at less than a third of what it was at its peak in January 2006.

The three businesses affected by starts are described as real estate, timberlands and wood products. The company also operates a paper and cellulose fibers business.