Weyerhaeuser's profit slumps on weak sales amid tepid demand

Weyerhaeuser

24/10/2024 22:29

Oct 24 (Reuters) - U.S. forest products firm
Weyerhaeuser  WY.N  reported an 88% fall in third-quarter profit
on Thursday due to low demand for its products amid a weakness
in the housing market.
U.S. existing home sales declined to a 14-year low in September,
hurt by high mortgage rates and house prices. 
    Though house supplies have improved, entry-level homes
remain scarce in most regions of the country, keeping home
prices at an unaffordable level for first-time buyers and
hurting sales of companies such as Weyerhaeuser. 
Net sales in its wood products unit, the largest in terms of
revenue, declined by 19.6% to $1.24 billion, also hurt by higher
manufacturing costs.  
    In the fourth quarter, the company forecast sequentially
higher core profit for the wood products segment. 
Sales in the Timberlands segment also declined by 5.4% to $493
million in the third quarter, hurt by lower harvests due to
wildfire risks in its northern assets and wet weather in the
south. 
The company reported a net income of $28 million, or 4 cents per
share, for the quarter ended Sept. 30, compared with $239
million, or 33 cents per share, last year. 

(Reporting by Sourasis Bose in Bengaluru; editing by Alan
Barona)
((mailto:Sourasis.Bose@thomsonreuters.com))