Weyerhaeuser Profit Will Beat Expectations

Weyerhaeuser Co., which has made a hostile bid for rival paper and lumber maker Willamette Industries Inc., said second-quarter profit will top forecasts because of rising wood prices and a Canadian tax-rate adjustment.

Weyerhaeuser, the No. 3 forest products company, will earn 70 to 75 cents a share, the company said. The Federal Way, Wash.-based firm had been expected to earn 56 cents, the average estimate of analysts surveyed by First Call/Thomson Financial. Profit from operations was $285 million, or $1.25 a share, in the year-ago second quarter.

Weyerhaeuser has been waiting for Willamette to announce the results of Willamette’s board election. Weyerhaeuser nominated a slate to oppose Willamette’s three candidates. Weyerhaeuser wants to take over the nine-member board to eliminate the company’s takeover defense.

Weyerhaeuser’s shares rose 57 cents to $53.70 on the New York Stock Exchange. They have gained 22% in the last year. Shares of Portland, Ore.-based Willamette rose 82 cents to $48.93, also on the NYSE.