Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (635)	7/28/2001 7:39:55 AM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Tuesday July 24, 2:13 pm Eastern Time Weyerhaueser Q2 earnings fall 43 percent biz.yahoo.com FEDERAL WAY, Wash., July 24 (Reuters) - Timber company Weyerhaeuser Co. (NYSE:WY - news) on Tuesday reported a 43 percent drop in second-quarter operating earnings caused by slumping lumber and paper products prices, a trend company officials expect will continue to hinder profits in the coming months. ``The third quarter is expected to be challenging with earnings declining and little improvement in market conditions,'' said Weyerhaeuser Treasurer Richard Taggart in a conference call with analysts. ................................................................................................................................ TOUGH PRICING ENVIRONMENT U.S. paper companies were hit hard during the second quarter by a combination of slumping product prices and spiraling energy costs, and Weyerhaeuser was no exception. The company said while prices for both lumber and wood products were stronger early in the quarter, both weakened as the quarter ended. ``Due to the economic downturn, we are experiencing soft demand in all of our product segments,'' said Richard Gozon, Weyerhaeuser's executive vice president of pulp, paper and packaging, who said the slowdown resulted in three paper machines being shut down indefinitely. The company now expects lumber harvest levels to be seasonally lower during the third quarter and hurt further by dry conditions in the western United States. Market conditions in the pulp, paper and packaging segment are also expected to remain difficult during the third quarter, given the strong U.S. dollar and weak global economic conditions, the company said. Operating earnings for that segment dropped to $95 million during the second quarter from $237 million a year ago. Uncertainty about the lumber supply is expected to result in a ``volatile'' pricing environment for wood products during the third quarter as well, the company said. However, the wood products segment overall had a relatively strong second quarter, with pricing levels remaining high for much of the quarter because of higher housing starts.