* Q2 adj EPS $0.09 vs est $0.10
* Q2 rev up 11 pct to $1.79 bln
July 27 (Reuters) - Weyerhaeuser Co’s quarterly profit missed analysts’ estimates on higher costs, but the forest products company said it expects “significantly higher” earnings from its cellulose unit in the current quarter.
The company, which converted to a real estate investment trust in 2010, said it was seeing signs of a rebound in the U.S. housing market.
A weak real estate market during the past few years had taken a toll on Weyerhaeuser’s timberlands, construction and wood products sales.
The company expects lower earnings at its wood products segment, its biggest by sales, in the third quarter due to lower selling prices for lumber.
Weyerhaeuser, however, expects lower annual maintenance expense and reduced chemical, energy and fiber costs at its cellulose unit, which accounts for about a fourth of the company’s revenue.
The unit has been the company’s breadwinner and counts Procter & Gamble Co as one its biggest customers. The world’s largest household products maker uses the pulp to make diapers.
Second-quarter profit rose to $84 million, or 16 cents per share, from $10 million, or 2 cents a share, a year earlier.
Excluding one-time items, it earned 9 cents a share.
Analysts on average had expected 10 cents, according to Thomson Reuters I/B/E/S.
Net sales in the quarter rose 10 percent to $1.79 billion, slightly above analysts’ estimates of $1.75 billion.
Cost of products sold rose 13 percent.
Weyerhaeuser shares, which have risen 23 percent so far this year, gained nearly one percent in premarket trade. They had closed at $22.91 on Thursday on the New York Stock Exchange.