Weyerhaeuser (WY, Financial), a leading American forest products company, reported an 88% decline in third-quarter profits as demand for its products weakened due to a sluggish housing market. The slowdown is attributed to high mortgage rates and elevated home prices, which have driven U.S. existing home sales to their lowest level in 14 years.
Despite some improvement in housing supply, entry-level homes remain scarce across most regions in the U.S., keeping prices out of reach for many first-time homebuyers. This affordability issue has negatively impacted sales performances for companies like Weyerhaeuser.
The company's largest revenue-generating segment, wood products, saw a 19.6% drop in net sales, falling to $1.24 billion. This decline was further intensified by rising manufacturing costs.
