The Weyerhaeuser Co. says it may be forced to close plants and cut back its wood products business because of weak conditions in the housing market. The comments came in a Monday afternoon Securities and Exchange Commission (SEC) Form 8-K filing.
On. Aug. 3, Weyerhaeuser, one of the world's largest lumber and paper companies, reported net earnings of $32 million for the second quarter of 2007 compared to $298 million net earnings for the second quarter of 2006. Included in the $266 million second quarter net loss was a $123 million decrease in earnings from the company's wood products division. In the SEC filing, the company said "market conditions for wood products have not improved in the third quarter."
Bruce Amundson, the company's director of communications, told BUILDER Online Tuesday that Weyerhaeuser would not comment beyond its remarks in the SEC filing adding that he "could not speculate" when or where the plant closings would take place.
In the SEC filing, the Federal Way, Wash.-based company said, "the ongoing weak market conditions will likely result in further actions by the company to balance supply with demand through closures, curtailments, and restricted operating postures at the company's wood products facilities."
Although the wood products division is struggling, the company did say that the markets for cellulose fibers and containerboard, packaging, and recycling segments continue to improve.