Oregon Public Broadcasting

Timber giant Weyerhaeuser got some good news Monday.  The federal government approved the sale of its cardboard business to a Tennessee paper company. That deal will give Weyerhaeuser a much-needed cash infusion.

The Tacoma-based company says it lost almost $150 million in the past three months. And as Ethan Lindsey reports, the losses are here to stay, as long as the housing slump continues.

Weyerhaeuser makes a lot of its money cutting down trees and turning them into paper and  homes.

The paper business hasn't really slowed down. But in order to truck the trees to the mill - and ship paper to your office - well, that requires gas. And as we all know, gas isn't cheap right now. 

More trouble for Weyerhaeuser comes from the housing bust. When times were good, the company grew its construction and real estate business.

Larry Burrows: “Housing markets continue to struggle.”

Larry Burrows is the company's chief operating officer.

Larry Burrows: “The industry's spring-selling season has not materialized. This is normally the time of year when prospective homebuyers are most active in the market."

The further weakening of the wood products market may force Weyerhaeuser to shutter more of its Pacific Northwest sawmills. The company now employs 4000 workers in Oregon.