Nov 01, 2007. /Lesprom Network/. Weyerhaeuser Company reported on October 31, 2007 net earnings of $101 million for the third quarter of 2007, or $0.47 per diluted share, on sales of $4.1 billion. Third quarter 2007 earnings include the following after-tax items: A charge of $17 million, or $0.08 per diluted share, for closures, restructuring and asset impairments in our Wood Products segment. A charge of $17 million, or $0.08 per diluted share related to the restructuring of administrative functions, including a Canadian regional office, and one-time costs to transition to a new information technology provider. A charge of $16 million, or $0.07 per diluted share, for the impairment of real estate assets; A net gain of $26 million, or $0.12 per diluted share, related to legal settlements. A gain of $7 million, or $0.03 per diluted share, on the sale of operations and previously closed plant sites. Excluding these items, the company earned $118 million, or $0.55 per diluted share, in the third quarter of 2007. Third quarter 2006 results have been recast to reflect the fine paper business and related assets included in the Domtar transaction as discontinued operations and to apply the new accounting pronouncement to expense planned major maintenance costs as incurred. For third quarter 2006, Weyerhaeuser net earnings were $224 million, or $0.91 per diluted share, on net sales of $4.6 billion. 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. Excluding these items, the company earned $236 million, or $0.95 per diluted share, in the third quarter of 2006. "An already weak wood products market deteriorated further during the third quarter," said Steven R. Rogel, chairman, president and chief executive officer. "We were adjusting our production to meet our reduced order level, but we took additional action in the quarter as demand and prices slid. We will continually adjust our operating posture as necessary to balance production with demand. "Meanwhile, the work we've done to operate more efficiently resulted in improved mill productivity in our Cellulose Fibers and Containerboard Packaging businesses. We expect improved price realizations in both businesses in the fourth quarter." Outlook Weyerhaeuser expects Timberlands earnings to be lower in the fourth quarter compared with third quarter due to expectations that: The continued weakness in housing markets will result in lower prices in both the export and domestic markets, and lower log sales volumes in the West. The company will complete fewer non-strategic timberlands transactions in the fourth quarter. The company expects operating loss of Wood Products segment to increase in fourth quarter compared with the third quarter due to the traditional seasonal slowdown and continuing pressures on volumes and prices. Weyerhaeuser expects favorable market conditions to continue in Cellulose Fiber segment, resulting in slightly higher earnings from the segment in fourth quarter. Weyerhaeuser expects fourth quarter earnings for Containerboard, Packaging And Recycling segment to be comparable to third quarter due to expectations that: Packaging and containerboard price realizations will improve. OCC costs will moderate. Additional scheduled maintenance downtime and higher seasonal energy costs will offset the improved price realizations. Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2006, sales were $21.9 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.