SEATTLE – Wood products giant Weyerhaeuser Co. said Tuesday its second-quarter earnings fell 25 percent from year-ago results that were boosted by one-time gains, as performance was hampered in part by the slowing U.S. housing market.
But the Federal Way-based company nevertheless beat Wall Street’s earnings expectations, as it benefited in part from improvements in its paper products business.
Net earnings fell to $314 million, or $1.26 per share, in the three months ended June 25, from $420 million, or $1.71 per share, last year.
The latest period included one-time charges of 9 cents related to restructuring and the closure of some facilities. The company also recorded a one-time tax benefit of 19 cents. Without those items, Weyerhaeuser would have earned $1.16 per share for the quarter.
Results from the year-ago quarter were boosted by a one-time net gain of 37 cents per share.
Sales for the quarter slipped to $5.69 billion, from $5.71 billion a year ago.
Analysts polled by Thomson Financial were expecting earnings of 95 cents per share on revenue of $5.69 billion.
Weyerhaeuser shares rose $1.37, or 2.5 percent, to $56.97 in early afternoon trading on the New York Stock Exchange.
For the current third quarter, Weyerhaeuser said it expects to see softening in the wood products and home building markets. The housing market is expected to slow particularly in areas such as Phoenix and the Washington, D.C., suburbs, executives said, although the company still sees long-term potential in its real estate business.
Weyerhaeuser said it was expecting its containerboard business to pick up in the third quarter.
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