Georgia-Pacific Group

( 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

Georgia-Pacific Corp.

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."

Timber Co.

(TGP) - Get Report

, 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

trading.