Federal Way's Weyerhaeuser Co.'s third quarter sales and profits both beat Wall Street estimates, the company reported Friday.
Weyerhaeuser stock closed up 3.6 percent Friday at $31.39 a share.
The timber and wood products company attributed those positive results to higher home sales and new revenues from its acquisition of Longview Timber in the third quarter.
Weyerhaeuser reported net earnings of $157 million, 27 cents a share, compared with average Wall Street analysts' estimates of 21 cents a share and third quarter 2012 results of 22 cents a share.
Revenues likewise beat estimates. Sales amounted to $2.18 billion compared with analysts' average predictions of $2.04 billion. That figure was 23.1 percent greater than in the third quarter last year.
"Solid operating results in the quarter contributed to a significant improvement in our year-over-year earnings," said Weyerhaeuser President Doyle Simons. "In the quarter, we also closed on our previously announced acquisition of Longview Timber and are actively engaged in leveraging our silviculture, logistics and marketing expertise to realize the full potential of this valuable asset."
The company's $2.65 billion purchase of Longview's 645,000 acres of Washington and Oregon timberlands closed in July. Analysts had expected the purchase would allow Weyerhaeuser to accelerate its Pacific Northwest harvests because a significant portion of that timber was due or overdue for harvest.
Weyerhaeuser's real estate division sales increased by $57 million in the quarter to $324 million. Those higher sales increased the real estate division's contribution to overall earnings by $19 million to $33 million.
Fourth quarter home closings will likely exceed those of last year, the company said. At the end of the third quarter, the company had sold, but not closed 1,435 units. That compares with 1,055 units in 2012's fourth quarter.
The company is reportedly shopping its real estate unit, some industry sources say, with reports that the division's sale could come before the end of the year.
John Gillie: 253-597-8663