Oct 28, 2011. /Lesprom Network/. Weyerhaeuser Company reported net earnings of $157 million for the 3Q on net sales from continuing operations of $1.6 billion. This compares with net earnings of $1.116 billion on net sales from continuing operations of $1.5 billion for the same period last year, as the company said in a press release received by Lesprom Network. Earnings for the 3Q 2011 include after-tax gains of $91 million from special items, including an $83 million benefit related to foreign tax credits. Excluding these items, the company reported net earnings of $66 million. This compares with net earnings before special items of $81 million in the 3Q 2010. Earnings for the 3Q 2010 included special items of $1.035 billion, primarily income tax adjustments related to Weyerhaeuser's conversion to a real estate investment trust (REIT). “All of our businesses faced challenging markets in the third quarter, as the U.S. housing market languished and we experienced a slowdown in demand from China,” said Dan Fulton, President and CEO. "We remain focused on improving performance with today's level of demand, while being prepared to flex all of our operations as markets improve.” Timberlands segment's earnings declined $50 million in the 3Q compared with the 2Q. Earnings from disposition of non-strategic timberlands declined to $4 million, compared with $32 million in the 2Q. Average selling prices for Western logs were lower due to weakening Chinese and domestic markets. Selling prices for Southern logs also declined. The segment's silviculture and road costs increased seasonally. Fee harvest increased slightly compared with the second quarter, as a decline in Western harvest volume was offset by increased volume in the South. Wood Products segment's results from continuing operations improved $10 million compared with the 2Q, as reduced log costs were partially offset by slightly lower sales volumes across most product lines. Operating results for the discontinued hardwoods operations declined $5 million compared with the 2Q. Weyerhaeuser completed the sale of the hardwoods operations in the 3Q. Cellulose Fibers segment's 3Q earnings improved $55 million compared with 2Q. Maintenance costs decreased and production increased as the segment had no annual maintenance outages, compared with four planned outages in the 2Q. These improvements were partially offset by lower selling prices for pulp. Weyerhaeuser Company is one of the world's largest forest products companies, began operations in 1900.