Revenue and earnings fell at Weyerhaeuser ( WY), and the timber harvester said it plans to close two Washington-state operations as part of its business review.

The company, based in Federal Way, Wash., reported third-quarter earnings of $285 million, or $1.16 a share, on net sales of $5.6 billion. A year ago, Weyerhaeuser had a profit of $594 million, or $2.45 a share, with sales of $5.7 billion.

Both quarters included various gains and charges. Shares of Weyerhaeuser were down 4 cents at $61.83.

On Friday, citing poor markets, aging machinery and high operating costs, Weyerhaeuser said it's shutting down a specialty pulp mill in Cosmopolis, Wash., and a large-log sawmill in Aberdeen, Wash. About 342 workers will be affected.

"These are the first, but by no means the final steps," Steven R. Rogel, chairman, president and chief executive, said in a statement. "We will continue to take the actions necessary to make Weyerhaeuser a more competitive company and generate greater returns while returning cash to our shareholders."

With that in mind, the company's board authorized the repurchase of up to 18 million shares, or 7.4% of Weyerhaeuser's stock outstanding.

"Our results in the third quarter reflect the difficult business conditions we face in certain segments," Rogel said. "Although the recent hurricanes did not significantly affect our operations, we expect to experience residual effects of the storms in terms of higher energy, chemical and transportation costs. This will put additional pressure on our businesses in the fourth quarter."

Weyerhaeuser said fourth-quarter earnings will likely decline in its timberlands, wood products, cellulose fiber and containerboard segments.

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