Weyerhaeuser Co. (WY) slashed its quarterly dividend by 80% as it continues to reel under the impact of the housing market slump.
The forest products major declared a dividend of 5 cents per share, down from 25 cents earlier. In December, the company had cut dividend to 25 cents per share from 60 cents.
“Although our guidance for the recently completed quarter remains unchanged, the economic outlook for our businesses continues to be challenged and uncertain,” said CEO Dan Fulton.
Analysts, on average, expect the company to post a loss of 69 cents per share in the second quarter, which has worsened by a penny over the past 2 months.
Weyerhaeuser, which suffered losses in recent quarters amid recessionary conditions, has taken initiatives such as deferring timber harvest, as well as shutting and curtailing facilities, in an effort to save costs.
Meanwhile, in a separate statement, the company announced the closure of its lumber mill near Taylor, Louisiana, with immediate effect. The mill employs about 39 employees.
WY, a Zacks #3 Rank (“Hold”) stock, has declined about 5% today on volume of almost 2.1 million, which is close to the average daily volume.
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