Weyerhaeuser Co., one of the world's largest lumber and packaging producers, said Friday it swung to a fourth-quarter loss as the deteriorating U.S. housing market cut into demand for lumber — a downturn the paper and wood products company expects will continue through 2008.Investors pushed shares down $2.20, or 3.4 percent, to $62.51 in morning trading. Federal Way, Wash.-based Weyerhaeuser reported a loss of $63 million, or 30 cents per share, compared with a profit of $507 million, or $2.12 per share, a year earlier.

Excluding write-downs from housing-related business, restructuring costs and other special items, Weyerhaeuser would have earned $90 million, or 42 cents per share, in the quarter.

Revenue fell 18 percent to $3.94 billion from $4.8 billion a year ago.



Analysts polled by Thomson Financial forecast a profit of 35 cents per share excluding items, but forecast higher revenue of $4.13 billion.

Chief Executive Steven Rogel called 2007 a "challenging year" for the paper and wood products industry. Paper demand has been gradually weakened by a shift to the Internet for news, billing, mailing and other information that was once communicated on paper. The housing downturn has made it more difficult for the industry to maintain profits.

"The continuing erosion of the U.S. housing market created very unfavorable market conditions," Rogel said in a statement. He added that the company expects those conditions to continue through 2008.

For the full year, Weyerhaeuser's profit rose to $790 million, or $3.59 per share, from $453 million, or $1.84 per share a year ago. Revenue fell 13 percent to $16.3 billion from $18.7 billion in 2006.

———

Business Writer Lauren Tara LaCapra in New York contributed to this report.