By Lauren Pollock
Weyerhaeuser Co. (WY) said its third-quarter earnings surged
nearly seven-fold as it recorded a one-time gain from a divestiture
and sales grew across its segments.
The forest-products company's increased focus on its core
wood-products division has paid off, as an improving housing market
has helped the company post strong results. Revenue in the segment
rose 2% to $1.05 billion from a year earlier.
Overall, the company posted a profit of $1.16 billion, or $2.17
a share, up from $167 million, or 27 cents a share, a year
earlier.
The company recorded a gain of $966 million on the divestiture
of Weyerhaeuser Real Estate Co., or Wreco. That move was completed
in July through the combination of the real-estate business and TRI
Pointe Homes Inc. in a Reverse Morris Trust deal.
Excluding the gain and other special items, per-share earnings
rose to 33 cents a share from 23 cents.
Sales rose 3% to $1.92 billion.
Analysts polled by Thomson Reuters had forecast per-share
earnings of 30 cents and revenue of $1.97 billion.
The company's timberlands business posted a 3% increase in
revenue to $364 million, as log sales volumes increased in the
southern part of the U.S.
Sales at the cellulose-fibers division grew 6% to $503 million,
due to higher average price realizations for pulp and liquid
packaging board and improved sales volumes.
Write to Lauren Pollock at Lauren.Pollock@wsj.com
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