Oct 26, 2006. /Lesprom Network/. Weyerhaeuser Company reported on October 25 third quarter net earnings of $211 million, or $0.85 per diluted share, on net sales of $5.3 billion. This compares with $285 million, or $1.16 per diluted share, on net sales of $5.4 billion for the third quarter 2005. Third quarter 2006 earnings include the following after-tax items: - A gain of $31 million, or $0.13 per diluted share, from the sale of the North American composites business. - A gain of $15 million, or $0.06 per diluted share, due to a reduction of the reserve for hardboard siding claims. - A charge of $25 million, or $0.10 per diluted share, for the additional impairment of assets related to the closure of the Prince Albert, Saskatchewan facility and the write-off of additional goodwill associated with the former BC Coastal business. - A charge of $18 million, or $0.07 per diluted share, for asset impairments and costs associated with facility closures or curtailments, primarily in the Wood Products segment. - A charge of $9 million, or $0.04 per diluted share, for impairment of real estate assets. - A charge of $6 million, or $0.02 per diluted share, related to the previously announced acquisition of OrganicID, a research and development company. Third quarter 2005 earnings include the following after-tax items: - A gain of $75 million, or $0.31 per diluted share, for the sale of MAS Capital Management Partners, LP, a joint venture. - A charge of $19 million, or $0.08 per diluted share, for closure of facilities. - A loss of $14 million, or $0.06 per diluted share, for the early extinguishment of debt. "We anticipated the downturn in the housing market and transformed Weyerhaeuser into a more focused company to position it to be a strong performer during this market cycle," said Steven R. Rogel, chairman, president and chief executive officer. "While anticipated, the housing market decline was more abrupt and drove wood products prices and demand into a deeper plunge than expected. We are taking the necessary actions to match our production to demand and over the long-term, remain confident about the residential housing market. We have the right strategies and combination of businesses to succeed and add value for shareholders. "Our cellulose fiber, white papers and packaging businesses showed continued improved performance during the quarter," Mr. Rogel said. "Some of this was the result of stronger pricing, but we also benefited from the decisive action we have taken to improve the ability of these businesses to meet customer demand. Such steps take time, but we are starting to benefit from the long-term changes they are creating within Weyerhaeuser." Weyerhaeuser expects fourth quarter earnings for the segment to be comparable with third quarter results. Shipments are expected to increase and OCC costs are expected to decline from third quarter levels. Rapidly rising wood chip costs, primarily on the West Coast, and seasonally higher energy usage are expected to offset higher packaging shipments and lower OCC costs. Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were $22.6 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.