Earnings Preview: Weyerhaeuser Company

Weyerhaeuser Company (WY) is expected to report Q4 earnings Friday with a conference call scheduled for 10:00 a.m. ET.

Guidance

The consensus estimate is 35c for EPS and revenue $4.13B, according to First Call. The paper manufacturer is expected to post a drop in its quarterly profitability. The results from several of its sector peers has been mixed. The global paper and forest products industry is going through a decline caused by the move to the Web from printed products, a faltering U.S. housing market, and a weaker dollar increasing cost pressures because the sector has significant lumber operations in Canada.

Analyst Views

CIBC said structural declines in paper demand for newsprint and uncoated free sheet continue to pressure producers. That, they said, may lead to deteriorating profits for most of the forest-products industry, signaling a rough year ahead.

Key issues for the conference call: An update on industry demand and pricing; alternatives for its commercial construction sales division, including selling off parts, and an update on the recent plans to sell its iLevel European engineered wood products operation to Finnforest of Finland.