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third-quarter profit tumbled as the declining housing market weighed on wood prices and reduced demand for lumber products.

Net income for the timber company dropped to $211 million, or 85 cents a share, from last year's $285 million, or $1.16 a share. In addition, revenue fell to $5.33 billion from $5.43 billion the previous year, a 2% decrease.

Analysts surveyed by Thomson First Call expected earnings of 87 cents and revenue of $5.57 billion.

Though Weyerhaeuser did anticipate the housing market's downturn, it "was more abrupt and drove wood products prices and demand into a deeper plunge than expected," said Steven Rogel, the company's chairman and CEO, in a statement. "We are taking the necessary actions to match our production to demand and over the long-term, remain confident about the residential housing market."

Shares of Weyerhaeuser closed at $63.70 Wednesday, down 3 cents.