Weyerhaeuser's profit falls amid slowdown in home sales

Weyerhaeuser

25/07/2024 21:49

July 25 (Reuters) - U.S. forest products firm
Weyerhaeuser  WY.N  reported a fall in second-quarter profit on
Thursday due to low demand for its products amid a weakness in
the housing market.
    Record-high home prices and mortgage rates during the second
quarter weighed in on home sales, which hit its lowest level
since December.
    Seattle-based Weyerhaeuser's adjusted core profit from its
wood products segment was at $225 million, down 16.7% from the
previous year.
    The company's adjusted core profit from its timberlands
segment was at $147 million, down 14.5% from the previous year.
    The weakness in construction activity has weighed in on
lumber prices, which were on a downward trend during the
quarter. 
    The company also said it will acquire 84,300 acres of
timberlands in Alabama for $244 million and expects an adjusted
core profit of about $12.5 million annually from its timber
operations over the first 10 years.
    The company reported a net income of $173 million, or 24
cents per share, for the quarter ended June 30, compared with
$230 million, or 31 cents, last year.
    

 (Reporting by Sourasis Bose and Tanay Dhumal in Bengaluru;
Editing by Alan Barona)
 ((Sourasis.Bose@thomsonreuters.com;))