Tuesday June 26, 9:03 am Eastern Time
Weyerhauser says earnings to be higher than expected
biz.yahoo.com
FEDERAL WAY, Wash., June 26 (Reuters) - Forestry products company Weyerhaeuser Co. (NYSE:WY - news) on Tuesday said its second-quarter earnings would surpass Wall Street forecasts due to high wood products prices and a tax-rate adjustment.
The company, which is in the midst of a $5.5 billion hostile takeover bid for smaller rival Willamette Industries Inc. (NYSE:WLL - news), forecast earnings per share of 70 to 75 cents, significantly above the Thomson Financial/First Call estimate of 56 cents. The boost comes from higher-than-expected prices for wood products and a one-time adjustment from a change in the Canadian tax rate, Weyerhaeuser said. However, the company, based in Federal Way, Wash., also said positive factors will be somewhat offset by costs associated with a strike at four of its operations on the West Coast, ``extensive market downtime'' in the pulp, paper and packaging segment, and the cost of the Westwood Shipping Line's transition to a new charter fleet.
Weyerhaeuser will hold a conference call at 11 a.m. EDT to discuss the revised earnings outlook. |
