the visible hand

it is the theory which decides what can be observed – einstein

Weyerhaeuser second-quarter net down 89% — primarily due to housing slump

Posted by ecoshift on September 10, 2007

Weyerhaeuser could cut back mill operations:
Lumber demand continues to slip as the U.S. housing market deflates
By Christopher Hinton, MarketWatch
Last Update: 11:17 AM ET Sep 10, 2007

NEW YORK (MarketWatch) — Weyerhaeuser Co., the world’s largest producer of plywood for home building, said Monday that it might offset eroding demand for its wood products through mill closures and production curtailments.
In a filing with the Securities and Exchange Commission, the Washington-based company said market conditions for wood products have not improved in the third quarter. In early August, Weyerhaeuser reported second-quarter net earnings plunged more than 89% to $32 million primarily because of the slumping U.S. housing market’s impact on wood product sales.

As market demand erodes so do lumber prices, motivating mill operators across the U.S. to curtail operations to protect their revenue intake. And though traders have been reporting “extremely competitive prices” for lumber, buyers have been more focused on clearing inventories, J.P. Morgan analyst Claudia Shank said in a note.

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