Weyerhaeuser Profit Surges On Gain - Update

(RTTNews) - Forest products company Weyerhaeuser Co. (WY) Friday reported a sharp increase in the third quarter profit, reflecting a gain from divestiture of its homebuilding business.

For the third quarter, net earnings attributable to common shareholders surged to $1.15 billion or $2.15 per share from $157 million or $0.27 per share in the previous year.

The latest-quarter earnings included a $966 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $9 million from special items. Earnings from continuing operations increased to $0.35 per share from $0.23 per share a year ago.

Excluding items, net earnings were $178 million or $0.33 per share for the third quarter, compared with net earnings from continuing operations before special items of $136 million for the same period last year.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales from continuing operations for the quarter increased to $1.92 billion from $1.86 billion last year. Street analysts estimated revenues of $1.97 billion.

For the fourth quarter, the firm expects lower earnings from Timberlands segment, mainly due to reduced earnings from disposition of non-strategic timberlands.

Earnings from Wood Products segment is anticipated to be significantly lower than the third quarter, and comparable to fourth quarter 2013. The company anticipates weaker realizations in lumber and oriented strand board, and seasonally lower sales volumes across all product line.

WY closed Thursday's trading at $33.54.