Weyerhaeuser Company has announced a net loss of US$148m during the first quarter, with both its timberland and wood products divisions seeing a decline.
Timberlands’ contribution to net earnings was down by US$59, year-on-year to US$116m, while wood products saw a US$167m loss in the first quarter of 2007 extend to a US$277m loss in 2008.
The company said its timberlands had incurred US$10m of damages due to December storms, while the wood products division had been impaired by closures and curtailments throughout the quarter.
Overall, the company recorded net sales across its operations of US$3.93bn, which had fallen from US$4.45bn a year go.
“Business conditions are extremely challenging,” said newly appointed president and chief executive officer Daniel Fulton.
“The number of single-family housing starts is now below the previous lows of 1979-82. Since many of our products are dependent upon single-family housing starts, we’ve experienced record low product prices when adjusted for inflation.”
Mr Fulton added the Weyerhaeuser would continue to adjust production to met demand at its OSB and softwood interests.
