UPDATE 4-Weyerhaeuser posts oper loss, warns on 4th quarter

* Adjusted loss 1 cent/share; better than expected

* Price rises help wood products, fibers businesses

* Sees Q4 losses from homebuilding, wood products units

* Shares little changed (Adds CEO comments, updates share price)

By Euan Rocha

NEW YORK, Oct 31 (Reuters) - Building products maker and homebuilder Weyerhaeuser Co (WY.N) posted a quarterly operating loss on Friday as demand for its single-family homes and timber products fell due to the slump in the U.S. housing market.

Price increases helped its wood products and fibers businesses, but the company said it expects losses from its real estate and wood products segments to grow in the fourth quarter.

"Although earnings are depressed, the thing about this company is that it has a strong balance sheet, good liquidity and a very strong asset base, and that's going to carry it through this downturn," said Longbow Research analyst Joshua Zaret.

The Federal Way, Washington-based company cautioned that it expects losses from its real estate and wood products segments to grow in the fourth quarter.

The rising number of foreclosures across the country are putting downward pressure on new home prices, and Weyerhaeuser expects the average selling price of its homes to decline in the fourth quarter.

"Recent financial events have caused homebuyers to be especially cautious because of continued uncertainty around home pricing," Chief Executive Dan Fulton said in an interview with Reuters.

"The liquidity they (U.S. government) have provided doesn't seem to be finding its way into the marketplace yet," he said. "I know on the housing side it doesn't seem to be working."

Weyerhaeuser has closed numerous facilities and sold many of its non-core assets in a bid to cope with the market downturn. It recently closed on the $6 billion sale of its packaging business to International Paper (IP.N).

EARNINGS TOP VIEW

Excluding one-time items, the company posted a third-quarter loss of $3 million, or 1 cent a share, compared with a year-earlier profit of $118 million, or 55 cents a share. Analysts on average were expecting a loss of 6 cents a share, according to Reuters Estimates.

Net income rose to $280 million, or $1.33 a share, from $101 million, or 47 cents a share, a year earlier. Net income in the latest quarter was boosted by the sale of the packaging business and its Australian operations. Real estate-related charges and impairment charges offset some of the gains from asset sales.