Weyerhaeuser has posted an impressive Q3, with net income increasing seven-fold on the back of sustained wood prices and timberland sales.
Net income for the quarter soared to $549 million up from $82 million in the same period in 2003. About $195 million of the increase came from the sale of timberlands in Georgia and a woodland re-allocation agreement with the government of British Columbia, Canada.
Sales went up to $5.85 billion, from $5.18 billion in last year’s Q3.
But the company warned that wood and paper prices were currently going down, which would lower profits in the months ahead.
Steve Rogel, chairman and CEO, said: "While we expect to see normal seasonal downturns in the fourth quarter, we are well positioned in our markets."
Weyerhaeuser also announced that it had boosted its limited South American operations by acquiring a two-third ownership in Brazilian company Aracruz Productos de Madeira (APM), a subsidiary of Aracruz Cellulose, for an undisclosed amount.
Federal Way (WA)
