( GP) said Friday it badly missed Wall Street's significantly lowered estimates, citing rising energy costs, a downturn in the economy and a one-time charge in the fourth quarter.
Georgia-Pacific Group, the part of
that handles the paper manufacturing and distribution, lost $187 million, or 98 cents a share, well below the $175 million, or $1 share, the company earned in the year-ago period. Excluding unusual items, the company lost $3 million, or 2 cents a share.
Ten analysts polled by
First Call/Thomson Financial
were expecting Georgia-Pacific to earn 32 cents in the quarter. The company warned in December that earnings for the quarter would be "substantially"
below Wall Street's expectations because of market-related downtime, higher energy costs and a weaker demand for products. The consensus estimate was 58 cents at the time.
The company said it incurred a one-time charge of $184 million, or 96 cents a share, associated with a write-down of the Georgia-Pacific Tissue assets and the closing of a paper mill in Kalamazoo, Mich.
"Late in the fourth quarter, we began to experience weak market conditions that could persist for the next several months," the company said in a statement. "Looking ahead, we expect market conditions to remain depressed in nearly all our businesses with the exception of consumer products, which we believe will weather the current economic downturn."
, the component of Georgia-Pacific Corp. engaged in the business of growing and marketing timber, said it beat Wall Street's fourth-quarter earnings expectations.
Timber Co. said net income totaled $56 million, or 69 cents a share, up from $40 million, or 48 cents a share, in the year-ago period, excluding one-time gains on timberland sales. Six analysts polled by First Call were anticipating earnings of 61 cents.
Shares of Georgia-Pacific Group were down $1.31, or 4.3%, to $29.44, and Timber gained 6 cents, or 0.2%, to $31 in recent
New York Stock Exchange