clarinews@clarinet.com (02/02/90)
TACOMA, Wash. (UPI) -- Weyerhaeuser Co. Thursday reported a fourth-quarter net loss of $128.7 million resulting from the timber giant's campaign to divest itself of many subsidiaries. Before accounting for costs related to the sale of numerous subsidiaries and closure of some facilities, Weyerhaeuser said it had fourth-quarter earnings of $141.7 million, or 67 cents a share, compared to $155.3 million, or 73 cents a share, in the same period a year ago. Sales for the quarter were $2.56 billion, compared to $2.38 billion in 1988's fourth quarter. For the year, Weyerhaeuser said its earnings after the writeoffs were $341 million, or $1.56 a share. Before the extraordinary expenses, the company said it earned $601 million, or $2.83 a share, on sales of $10.1 billion. In 1988 Weyerhaeuser earned $850.7 million, or $2.68 a share, on sales of $9.32 billion. George H. Weyerhaeuser, chairman and chief executive officer, said he does not expect the restructuring costs to have a long-term impact on the financial strength of the company. ``The process we have been engaged in clearly established that Weyerhaeuser has major opportunities and plans to improve its competitive position as we move into the 1990s, and provides the specific routes to get there,'' he said. Weyerhaeuser said the impact of weaknesses in fine paper markets and high costs of maintenance for some paper and pulp operations during the quarter were offset by strength in export markets a the close of the quarter and higher prices for structural panels. He said the weakening of the dollar over the past several years, along with strong demand for lumber in overseas markets, has allowed the United States to regain its position as the world's low-cost pulp, paper and lumber producer.