Weyerhaeuser has reported a US$1.21bn loss for the fourth quarter of 2008.

Company CEO Dan Fulton said the result, which includes a US$827m goodwill impairment charge, reflects the “speed and severity of the deterioration of market conditions”.

Weyerhaeuser’s net loss for the whole year was US$1.17bn from continuing sales of US$8bn. This compares with net profits of US$790m and sales of US$10.8bn in 2007.

The wood products division made a loss of US$960m during the fourth quarter, mainly due to a US$733m good will impairment charge.

“The increased loss from operations is primarily due to significantly lower prices for lumber and oriented strand board, and reduced sales volumes as a result of the continued decline in the housing market,” the company said.

Operating losses in the division are expected to be similar for the first quarter of 2009.