Weyerhaeuser Company has warned that further cutbacks may be necessary to balance the supply of wood products with demand.
Closures, curtailments and operating restrictions may take place across the company’s wood products facilities, after the forest products firm revealed that the market was unlikely to improve in the third quarter.
Weyerhaeuser has undertaken a number of sales and purchases in recent months, including the sale of its Canadian distribution centres, the sale of Weyerhaeuser New Zealand and taking full of control of the Nelson Joint Venture.
In addition, the company recorded second quarter earnings of US$32m, down from US$273m a year earlier, with a number of one-off after-tax items stop-ping the company recording profits of US$104m for the quarter.
