Weyerhaeuser Investor Relations

Weyerhaeuser Reports First Quarter Loss of $54 Million, or 24 Cents Per Share, On Net Sales of $4.6 Billion

PRNewswire
FEDERAL WAY, Wash.
Apr 25, 2003

Weyerhaeuser Company (NYSE: WY) today reported a loss for the first quarter of $54 million, or 24 cents per share, which includes after-tax charges of $11 million, or 5 cents per share, for the cumulative effect of a required change in the accounting principle relating to asset retirement obligations; $52 million, or 23 cents per share, for a lawsuit involving Pacific Northwest alder logs; $19 million, or 8 cents per share, associated with integration and restructuring activities; and $15 million, or 7 cents per share, for the closure of facilities.

Last year, Weyerhaeuser reported first quarter net earnings of $30 million, or 14 cents per share, that included an after-tax charge of $23 million for costs associated with the bridge financing of the acquisition of Willamette Industries, an after-tax charge of $17 million for the closure of facilities, and an after-tax benefit of $12 million for the reversal of previously-accrued countervailing duties.

During the first quarter of 2003, the company experienced tough market conditions for all of its lines of business, except real estate and Timberlands. Weyerhaeuser also incurred approximately $24 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company imports into the United States compared with the $26 million Weyerhaeuser incurred in the prior quarter. During the first quarter of 2003, Weyerhaeuser benefited from the synergies of the Willamette acquisition and continued to experience improvements in manufacturing performance.

At the end of the first quarter, Weyerhaeuser estimates it has achieved an annualized run rate of $261 million in pre-tax synergies. The company is confident it will achieve $300 million in pre-tax annual synergies sooner than expected.

Comments from Steven R. Rogel, chairman, president and chief executive officer, on first quarter results:

   "This was an extremely difficult quarter, and our results reflect the
   challenging business conditions we faced.  But it also was a quarter that
   demonstrates the progress we're making toward creating a more efficient
   Weyerhaeuser.  Although increased energy costs, weak building material
   prices and sluggish economic conditions offset the improvements we've
   made, we're extremely pleased with our increasing manufacturing
   efficiency and continued progress toward our synergy goal.  In the coming
   quarters, we expect to see additional benefits from the steps we've
   already taken.  Our focus remains on reducing our debt, disciplined
   capital spending and the adherence to the improvement initiatives we have
   in place.  We will continue to do whatever is necessary to further
   improve our company's ability to perform well regardless of market
   conditions.  This may require us to make additional difficult decisions
   regarding the ongoing operation of some of our facilities."

  SUMMARY OF FIRST QUARTER FINANCIAL HIGHLIGHTS

   Millions (except per share data)   1Q 2003       1Q 2002        Change
   Net earnings (loss)                  ($54)           $30         ($84)
   Earnings (loss) per share          ($0.24)         $0.14       ($0.38)
   Net sales                           $4,614        $3,991          $623

  SEGMENT RESULTS FOR FIRST QUARTER 2003
  (Contributions to Pre-Tax Earnings)

   Millions                           1Q 2003       1Q 2002        Change
   Timberlands                           $149          $107           $42
   Wood Products                       ($150)            $9        ($159)
   Pulp and Paper                         $10            $1            $9
   Containerboard, Packaging
    and Recycling                         $80           $58           $22
   Real estate and related assets         $95           $91            $4

  TIMBERLANDS
                                      1Q 2003       4Q 2002        Change
   Contribution to earnings (millions)   $149          $300        ($151)

Excluding the fourth quarter pre-tax gain of $117 million from the sale of 115,000 acres of Washington state timberlands, first quarter earnings were slightly lower than the fourth quarter.

Second quarter earnings from operations are expected to be similar to the first quarter. Slightly lower prices are expected to offset higher volumes in both the export and domestic markets. During the quarter, Weyerhaeuser also expects to book an estimated pre-tax gain of $143 million on the sale of timberlands in Western Washington to Hancock Timber Resources. Proceeds will be used to help pay down the debt associated with the Willamette acquisition.

  WOOD PRODUCTS
                                      1Q 2003       4Q 2002        Change
   Contribution (charge) to
    earnings (millions)                ($150)         ($75)         ($75)

First quarter results include a $79 million pre-tax charge to cover damages awarded by a jury on April 18 in U.S. District Court in Oregon. Excluding this charge, operating losses were comparable to the fourth quarter loss due to depressed prices and severe weather in the East that were offset by improved operating efficiencies.

As part of the company's focus on improving the efficiency of its operations Weyerhaeuser announced the closure of its Millport, Ala., plywood mill. The company said it would continue to review its Wood Products portfolio and make adjustments if necessary to improve its efficiency. In addition, the company took downtime at five mills due to raw material constraints in the South.

Second quarter results for Wood Products are expected to be better than first quarter due to seasonal increases in demand for lumber, engineered lumber, and panels. Weyerhaeuser will continue to be adversely affected by countervailing and anti-dumping duties, and related costs on Canadian softwood lumber the company imports into the United States.

  PULP AND PAPER
                                    1Q 2003         4Q 2002        Change
  Contribution to earnings (millions)   $10             $86         ($76)

Softening fine paper prices and increased energy, transportation and fiber costs offset higher prices for pulp. As a result, earnings were lower than the prior quarter. In addition, fourth quarter results for 2002 benefited from $40 million pre-tax in business interruption insurance recoveries related to a boiler outage in Plymouth, N.C.

Second quarter earnings are expected to be higher than first quarter due to higher pulp prices and lower energy costs. The company will take an estimated 40,000 tons of fine paper downtime to offset increased production efficiencies and perform normal maintenance.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                    1Q 2003         4Q 2002        Change
  Contribution to earnings (millions)   $80            $114         ($34)

Due to improved manufacturing efficiencies and flat demand, the company took 141,000 tons of downtime in containerboard to balance production with orders and 40,000 tons for normal maintenance. In addition, higher energy costs adversely affected the quarter. This resulted in weaker first quarter earnings compared with the fourth quarter.

Second quarter earnings are expected to be higher than first quarter due to modestly improving market conditions and seasonal increases in demand for packaging. Increasing costs for old corrugated containers (OCC) will partially offset the effects of the seasonal improvements in markets. The company expects to take approximately 68,000 tons of downtime during the quarter.

  REAL ESTATE AND RELATED ASSETS
                                    1Q 2003         4Q 2002        Change
  Contribution to earnings (millions)   $95             $81           $14

First quarter results increased from fourth quarter levels due to the sale of an apartment project and two office buildings. The backlog of homes sold, but not closed, increased slightly to nearly six months.

Second quarter earnings are expected to be lower due to planned second quarter closings of single-family housing shifting into the second half of the year.

OTHER

The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on April 25 to discuss the first quarter results.

To access the conference call, listeners calling from within North America should dial 1-888-789-0089 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-416-695-5259. Replays of the call will be available for 48 hours following completion of the live call and can be accessed at 1-866-518- 1010 within North America and at 1-416-252-1143 from outside North America.

The call may also be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link.

Weyerhaeuser Company (NYSE: WY), one of the world's largest integrated forest products companies, was incorporated in 1900. In 2002, sales were Cdn$29.1 billion (US$18.5 billion). It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Weyerhaeuser Company Limited, a wholly owned subsidiary, has Exchangeable Shares listed on the Toronto Stock Exchange under the symbol WYL. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/.

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "believes," "should," "approximately," anticipates," "estimates," and "plans," and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expected synergies from the Willamette acquisition, expected improvements in manufacturing performance, downtime; expected earnings and performance of the company's business segments during the second quarter, anticipated debt reduction, anticipated capital spending and expected timberland sales. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts; market demand for the company's products, which may be tied to the relative strength of various U.S. business segments; energy prices; performance of the company's manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; the company's ability to successfully integrate and manage acquired businesses and to realize anticipated cost savings and synergies from this acquisition; the ability of acquired businesses to perform in accordance with the company's expectations; legal proceedings; performance of pension fund assets; and uncertainties related to closure of timberland sales. The company is also a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan, and by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar; and restrictions on international trade or tariffs imposed on imports, including the countervailing and dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

   Media - Bruce Amundson 253-924-3047
   Analysts - Kathryn McAuley 253-924-2058


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  CONSOLIDATED EARNINGS (1)          Q1             Q2             Q3
                                March   March  June    June   Sept.  Sept.
    (in millions)                30,     31,    29,     30,    28,    29,
                                2003    2002   2003    2002   2003   2002
  Net sales and revenues:
    Weyerhaeuser (2)           $4,169  $3,595         $4,501        $4,422
    Real estate and related
     assets                       445     396            421           468
  Total net sales and revenues  4,614   3,991          4,922         4,890

  Costs and expenses:
    Weyerhaeuser:
      Costs of products sold    3,322   2,831          3,519         3,576
      Depreciation,
       amortization and fee
       stumpage                   321     264            311           304
      Selling expenses            107     103            116           116
      General and
       administrative expenses    231     186            231           201
      Research and development
       expenses                    12      12             13            11
      Taxes other than payroll
       and income taxes            47      38             53            48
      Other operating costs
       (income), net (3) (4 )      37       4            (27)           19
      Charges for integration
       of facilities               29       2             23            17
      Charges for closure of
       facilities                  22      27             28            --
                                4,128   3,467          4,267         4,292
    Real estate and related
     assets:
      Costs and operating
       expenses                   330     291            317           359
      Depreciation and
       amortization                 3       2              1             1
      Selling expenses             24      21             24            23
      General and
       administrative expenses     14      10             11            14
      Taxes other than payroll
       and income taxes             1       1              1             1
      Other operating costs,
       net                         (7)     (8)             2             6
                                  365     317            356           404
  Total costs and expenses      4,493   3,784          4,623         4,696

  Operating income                121     207            299           194

  Interest expense and other:
    Weyerhaeuser:
      Interest expense
       incurred (5)              (208)   (178)          (222)         (214)
      Less interest
       capitalized                  5       4             16            16
      Equity in income (loss)
       of affiliates               (5)     (4)            (2)           (6)
      Interest income and
       other                        6       5              6             9
    Real estate and related
     assets:
      Interest expense
       incurred                   (14)    (13)           (13)          (12)
      Less interest
       capitalized                 14      13             13            12
      Equity in income of
       unconsolidated
          entities                  5       6              6            10
      Interest income and
       other                       11       6              8            11
  Earnings before income taxes
   and cumulative effect of
   a change in accounting
   principle                      (65)     46            111            20
  Income taxes                     22     (16)           (39)           (7)
  Earnings before cumulative
   effect of a change in
   accounting principle           (43)     30             72            13
  Cumulative effect of a
   change in accounting
   principle, net of applicable
   taxes of $6 (6)                (11)     --             --            --
  Net earnings (loss)            $(54)    $30            $72           $13

  Basic and diluted net
   earnings (loss) per share:
    Net earnings before
     cumulative effect of a
     change in accounting
     principle                 ($0.19)  $0.14          $0.32         $0.06
    Cumulative effect of a
     change in accounting
     principle                  (0.05)     --             --            --
    Net earnings (loss)        ($0.24)  $0.14          $0.32         $0.06

  Dividends paid                $0.40   $0.40          $0.40         $0.40


  CONSOLIDATED EARNINGS (1)                    Q4            Year ended
     (in millions)                      Dec. 28, Dec. 29,  Dec. 28, Dec. 29,
                                          2003     2002      2003     2002
  Net sales and revenues:
     Weyerhaeuser (2)                             $4,253           $16,771
     Real estate and related assets                  465             1,750
  Total net sales and revenues                     4,718            18,521

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold                      3,285            13,211
       Depreciation, amortization and
        fee stumpage                                 335             1,214
       Selling expenses                              115               450
       General and administrative
        expenses                                     229               847
       Research and development
        expenses                                      16                52
       Taxes other than payroll and
        income taxes                                  39               178
       Other operating costs (income),
        net  (3) (4)                                (135)             (139)
       Charges for integration of
        facilities                                    30                72
       Charges for closure of
        facilities                                    40                95
                                                   3,954            15,980
     Real estate and related assets:
       Costs and operating expenses                  359             1,326
       Depreciation and amortization                   7                11
       Selling expenses                               22                90
       General and administrative
        expenses                                      13                48
       Taxes other than payroll and
        income taxes                                   1                 4
       Other operating costs, net                     (1)               (1)
                                                     401             1,478
  Total costs and expenses                         4,355            17,458

  Operating income                                   363             1,063

  Interest expense and other:
     Weyerhaeuser:
       Interest expense incurred (5)                (207)             (821)
       Less interest capitalized                      14                50
       Equity in income (loss) of
        affiliates                                    (1)              (13)
       Interest income and other                       8                28
     Real estate and related assets:
       Interest expense incurred                     (15)              (53)
       Less interest capitalized                      15                53
       Equity in income of unconsolidated
        entities                                       9                31
       Interest income and other                       8                33
  Earnings before income taxes and
   cumulative effect of
   a change in accounting principle                  194               371
  Income taxes                                       (68)             (130)
  Earnings before cumulative effect of
   a change in accounting principle                  126               241
  Cumulative effect of a change in
   accounting principle, net of applicable
   taxes of $6 (6)                                    --                --
  Net earnings (loss)                               $126              $241

  Basic and diluted net earnings (loss)
   per share:
     Net earnings before cumulative
      effect of a change in accounting principle   $0.57             $1.09

     Cumulative effect of a change in
      accounting principle                            --                --
     Net earnings (loss)                           $0.57             $1.09

  Dividends paid                                   $0.40             $1.60

   (1)  Certain reclassifications have been made to conform prior period
        data with the current presentation.
   (2)  The first quarter of 2003 includes $24 million of charges for
        countervailing and anti-dumping duties and related costs.  2002
        first quarter includes $13 million of charges for countervailing and
        anti-dumping duties and related costs and a credit of $18 million
        for the reversal of countervailing and anti-dumping duties accrued
        in 2001.  The 2002 second quarter includes $7 million of charges for
        countervailing and anti-dumping duties and related costs, a credit
        of $29 million for the reversal of charges accrued in 2001 and a
        credit of $13 million for charges accrued in the first quarter of
        2002.  The 2002 third quarter includes charges of $31 million and
        the 2002 fourth quarter includes charges of $26 million for
        countervailing and anti-dumping duties and related costs.  The 2002
        impact of countervailing and anti-dumping duties and related costs
        is a net charge of $17 million, including current year charges of
        $64 million, net of $47 million of credits related to the reversal
        of charges accrued in 2001.
   (3)  The first quarter of 2003 includes $35 million of net foreign
        exchange gains.  2002 includes $33 million in net foreign exchange
        gains.  Gains of $8 million and $27 million are included in the
        first and second quarters, respectively.  A loss of $16 million is
        included in the third quarter and a gain of $14 million is included
        in the fourth quarter.
   (4)  The first quarter of 2003 includes a $79 million charge for a
        lawsuit involving the market for Pacific Northwest alder logs.  2002
        fourth quarter includes a $117 million gain on the sale of
        timberlands in Washington state.
   (5)  2002 first quarter includes a $35 million charge to write off debt
        issue costs in connection with the refinancing of debt in connection
        with the acquisition of Willamette Industries.
   (6)  Statement of Financial Accounting Standards No. 143, Accounting for
        Asset Retirement Obligations, was adopted as of the beginning of
        2003.  Results for 2002 were not impacted by the change in
        accounting principle.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues
  (in millions):                     Q1             Q2             Q3
                               March   March   June    June   Sept.   Sept.
                                 30,     31,    29,     30,    28,     29,
                                2003    2002   2003    2002   2003    2002
  Timberlands:
    Raw materials (logs,
     timber and chips)           $203    $142           $184          $193
    Other products                 21      19             21            18
                                  224     161            205           211
  Wood products:
    Softwood lumber               752     692            901           845
    Plywood and veneer            174     158            203           195
    Oriented strand board,
     composite and other
     panels                       257     240            320           217
    Hardwood lumber                80      76             81            72
    Engineered lumber products    254     253            315           324
    Raw materials (logs,
     timber and chips)             81     106            129           120
    Other products                174     176            198           184
                                1,772   1,701          2,147         1,957
  Pulp and Paper:
    Pulp                          309     280            297           300
    Paper                         596     416            563           590
    Coated groundwood              36      30             30            32
    Bleached paperboard            47      40             51            37
    Other products                 10       6             10             8
                                  998     772            951           967

  Containerboard, Packaging
   and Recycling:
    Containerboard                 77      73             90           101
    Packaging                     879     758            935           909
    Recycling                      60      48             51            67
    Bags                           20      10             20            22
    Other products                 33      10             34            28
                                1,069     899          1,130         1,127

  Real estate and related
   assets                         445     396            421           468

  Corporate and other             106      62             68           160

                               $4,614  $3,991         $4,922        $4,890


  Earnings before interest
   expense, income taxes, and
   a cumulative effect of a
   change in accounting
   principle (1)                     Q1             Q2             Q3
   (in millions)                 March   March  June    June   Sept.   Sept.
                                  30,     31,    29,     30,    28,     29,
                                 2003    2002   2003    2002   2003    2002
  Timberlands (2)                $149    $107           $162          $133
  Wood products (3) (4)          (150)      9             64           (18)
  Pulp and Paper (5) (6)           10       1            (15)           10
  Containerboard Packaging and
   Recycling (7)                   80      58             75            88
  Real estate and related
   assets (8)                      95      91             79            85
  Corporate and other  (9)
   (10)                           (46)    (46)           (48)          (80)
                                 $138    $220           $317          $218


  Net sales and revenues (in millions):        Q4            Year ended
                                        Dec. 28, Dec. 29,  Dec. 28, Dec. 29,
                                          2003     2002      2003     2002
  Timberlands:
     Raw materials (logs, timber and chips)         $254              $773
     Other products                                   39                97
                                                     293               870
  Wood products:
     Softwood lumber                                 748             3,186
     Plywood and veneer                              178               734
     Oriented strand board, composite
      and other panels                               251             1,028
     Hardwood lumber                                  77               306
     Engineered lumber products                      256             1,148
     Raw materials (logs, timber and chips)          117               472
     Other products                                  160               718
                                                   1,787             7,592
  Pulp and Paper:
     Pulp                                            319             1,196
     Paper                                           594             2,163
     Coated groundwood                                34               126
     Bleached paperboard                              51               179
     Other products                                   10                34
                                                   1,008             3,698

  Containerboard, Packaging and
   Recycling:
     Containerboard                                   86               350
     Packaging                                       864             3,466
     Recycling                                        63               229
     Bags                                             23                75
     Other products                                   20                92
                                                   1,056             4,212

  Real estate and related assets                     465             1,750

  Corporate and other                                109               399

                                                  $4,718           $18,521

  Earnings before interest expense,
   income taxes, and a cumulative effect
   of a change in accounting principle (1)     Q4            Year ended
     (in millions)                      Dec. 28, Dec. 29,  Dec. 28, Dec. 29,
                                          2003     2002      2003     2002
  Timberlands (2)                                   $300              $702
  Wood products (3) (4)                              (75)              (20)
  Pulp and Paper (5) (6)                              86                82
  Containerboard Packaging and
   Recycling (7)                                     114               335
  Real estate and related assets (8)                  81               336
  Corporate and other  (9) (10)                     (119)             (293)
                                                    $387            $1,142

   (1)  Certain reclassifications have been made to conform prior period
        data with the current presentation.
   (2)  2002 fourth quarter includes a $117 million gain on the sale of
        timberlands in Washington state.
   (3)  The first quarter of 2003 includes $24 million of charges for
        countervailing and anti-dumping duties and related costs.  2002
        first quarter includes $13 million of charges for countervailing and
        anti-dumping duties and related costs and a credit of $18 million
        for the reversal of countervailing and anti-dumping duties accrued
        in 2001.  The 2002 second quarter includes $7 million of charges for
        countervailing and anti-dumping duties and related costs, a credit
        of $29 million for the reversal of charges accrued in 2001 and a
        credit of $13 million for charges accrued in the first quarter of
        2002.  The 2002 third quarter includes charges of $31 million and
        the 2002 fourth quarter includes charges of $26 million for
        countervailing and anti-dumping duties and related costs.  The 2002
        impact of countervailing and anti-dumping duties and related costs
        is a net charge of $17 million, including current year charges of
        $64 million, net of $47 million of credits related to the reversal
        of charges accrued in 2001.
   (4)  The first quarter of 2003 includes a $79 million charge for a
        lawsuit involving the market for Pacific Northwest alder logs and
        $22 million in charges for closure costs.  2002 includes closure
        costs of $51 million ($17 million in the first quarter and $34
        million in the fourth quarter).
   (5)  2002 includes $12 million in net business disruption costs
        associated with the recovery boiler explosion at the Plymouth, N.C.,
        paper facility.  Costs of $22 million and $30 million are included
        in the second and third quarters, respectively.  Net recoveries of
        $40 million are included in the fourth quarter.
   (6)  2002 fourth quarter results include an $8 million benefit resulting
        from adjustments to closure reserves established in 2001.
   (7)  2002 includes closure costs of $52 million ($10 million in the first
        quarter, $28 million in the second quarter and $14 million in the
        fourth quarter).
   (8)  2003 includes $8 million for the sale of two office buildings and
        $10 for the sale of an apartment complex.  2002 includes $21 million
        in gains from sales of apartment complexes, including $7 million in
        the second quarter and $14 million in the third quarter.
   (9)  2002 results include a $35 million charge in the fourth quarter for
        the termination of the former MacMillan Bloedel pension plan for
        U.S. employees.
   (10) 2003 results include $36 million of net foreign exchange gains.
        2002 results include net foreign exchange gains (losses) of $20
        million in the second quarter, ($17 million) in the third quarter
        and $1 million in the fourth quarter, for a 2002 net gain of $4
        million.  These gains and losses result primarily from fluctuations
        in Canadian exchange rates.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)


  Third party sales volumes:         Q1             Q2             Q3
                                March   March  June    June   Sept.  Sept.
                                 30,     31,    29,     30,    28,    29,
                                2003    2002   2003    2002   2003   2002
  Timberlands (millions):
    Raw materials - cubic feet     96      67            102            91

  Wood products (millions):
    Softwood lumber - board
     feet                       2,147   1,812          2,295         2,362
    Plywood and veneer -
     square feet (3/8")           726     624            815           792
    Composite panels - square
     feet (3/4")                  278     308            445            95
    Oriented strand board -
     square feet (3/8")         1,025     945          1,095         1,117
    Hardwood lumber - board
     feet                         106     108            113           104
    Raw materials - cubic feet    128     143            164           161

  Pulp and paper (thousands):
    Pulp - air-dry metric tons    623     563            618           561
    Paper - tons                  737     546            717           749
    Coated groundwood - tons       61      48             49            55
    Bleached paperboard - tons     60      53             61            47
    Paper converting - tons       502     375            488           499

  Containerboard, packaging
   and recycling (thousands)
    Containerboard - tons         221     209            260           283
    Packaging - MSF            17,752  15,430         19,614        19,007
    Recycling - tons              593     604            552           539
    Bags - tons                    25      13             26            26


  Total production volumes:           Q1             Q2             Q3
                                 March   March  June    June   Sept.  Sept.
                                  30,     31,    29,     30,    28,    29,
                                 2003    2002   2003    2002   2003   2002
  Timberlands (millions):
    Logs - cubic feet             182     153            191           164

  Wood products (millions):
    Softwood lumber - board
     feet                       1,842   1,530          1,702         1,728
    Plywood and veneer -
     square feet (3/8")           672     471            649           638
    Composite panels - square
     feet (3/4")                  231     218            183           235
    Oriented strand board -
     square feet (3/8")         1,011     957            944         1,115
    Hardwood lumber - board
     feet                         108      96             99           107
    Logs - cubic feet             260     185            187           204

  Pulp and paper (thousands):
    Pulp - air-dry metric tons    654     607            492           630
    Paper - tons                  757     510            667           704
    Coated groundwood - tons       62      48             60            43
    Paperboard - tons              56      63             67            31
    Paper converting - tons       516     353            496           502

  Containerboard, packaging
   and recycling (thousands)
    Containerboard - tons       1,429   1,250          1,600         1,621
    Packaging - MSF            18,977  16,174         20,521        19,596
    Recycling - tons            1,528   1,387          1,588         1,551
    Bags - tons                    25      13             25            27


  Third party sales volumes:                   Q4             Year ended
                                        Dec. 28,  Dec. 29, Dec. 28, Dec. 29,
                                          2003      2002     2003     2002
  Timberlands (millions):
     Raw materials - cubic feet                       110               370

  Wood products (millions):
     Softwood lumber - board feet                   2,154             8,623
     Plywood and veneer - square feet (3/8")          672             2,903
     Composite panels - square feet (3/4")            299             1,147
     Oriented strand board - square feet (3/8")     1,048             4,205
     Hardwood lumber - board feet                     102               427
     Raw materials - cubic feet                       127               595

  Pulp and paper (thousands):
     Pulp - air-dry metric tons                       636             2,378
     Paper - tons                                     730             2,742
     Coated groundwood - tons                          58               210
     Bleached paperboard - tons                        68               229
     Paper converting - tons                          497             1,859

  Containerboard, packaging and
   recycling (thousands)
     Containerboard - tons                            231               983
     Packaging - MSF                               17,643            71,694
     Recycling - tons                                 597             2,292
     Bags - tons                                       28                93


  Total production volumes:                    Q4             Year ended
                                        Dec. 28,  Dec. 29, Dec. 28, Dec. 29,
                                          2003      2002     2003     2002
  Timberlands (millions):
     Logs - cubic feet                                155               663

  Wood products (millions):
     Softwood lumber - board feet                   1,871             6,831
     Plywood and veneer - square feet (3/8")          520             2,278
     Composite panels - square feet (3/4")            228               864
     Oriented strand board - square feet (3/8")     1,033             4,049
     Hardwood lumber - board feet                     104               406
     Logs - cubic feet                                218               794

  Pulp and paper (thousands):
     Pulp - air-dry metric tons                       552             2,281
     Paper - tons                                     730             2,611
     Coated groundwood - tons                          59               210
     Paperboard - tons                                 66               227
     Paper converting - tons                          493             1,844

  Containerboard, packaging and recycling (thousands)
     Containerboard - tons                          1,533             6,004
     Packaging - MSF                               18,809            75,100
     Recycling - tons                               1,566             6,092
     Bags - tons                                       28                93


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION

  CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                (in millions)
                                       March    June   Sept.   Dec.   Dec.
                                        30,      29,    28,     28,    29,
  Assets                               2003     2003   2003    2003   2002

  Weyerhaeuser
     Current assets:
       Cash and short-term
        investments                     $59                            $115
       Receivables, less allowances   1,573                           1,413
       Inventories                    2,167                           1,941
       Prepaid expenses                 455                             419
             Total current assets     4,254                           3,888
     Property and equipment          12,228                          12,278
     Construction in progress           709                             687
     Timber and timberlands at
      cost, less fee stumpage
      charged to disposals            4,450                           4,402
     Investments in and advances to
      equity affiliates                 538                             578
     Goodwill                         3,191                           3,131
     Deferred pension and other
      assets                          1,337                           1,285
                                     26,707                          26,249

  Real estate and related assets      1,989                           1,970

     Total assets                   $28,696                         $28,219

  Liabilities and Shareholders' Interest

  Weyerhaeuser
     Current liabilities:
       Notes payable and commercial
        paper                          $321                              $2
       Current maturities of long-
        term debt                       595                             786
       Accounts payable                 975                             983
       Accrued liabilities            1,162                           1,223
             Total current
              liabilities             3,053                           2,994
     Long-term debt                  12,129                          11,907
     Deferred income taxes,
      pension, other postretirement
      benefits and other liabilities  5,541                           5,346
                                     20,723                          20,247
  Real estate and related assets
     Notes payable and commercial
      paper                             115                              63
     Long-term debt                     764                             814
     Other liabilities                  466                             472
                                      1,345                           1,349
     Total liabilities               22,068                          21,596

     Shareholders' interest           6,628                           6,623

     Total liabilities and
      shareholders' interest        $28,696                         $28,219


  STATEMENT OF CASH FLOWS                Q1            Q2           Q3
                                   March   March   June   June   Sept. Sept.
  SELECTED INFORMATION (unaudited)   30,     31,    29,    30,    28,   29,
     (in millions)                  2003    2002   2003   2002   2003  2002
  (Weyerhaeuser only, excludes real
   estate & related assets)

     Net cash from operations       (126)    (90)          379          268
     Cash paid for property and
      equipment                     (128)   (158)         (288)        (237)
     Cash paid for timberlands
      reforestation                  (14)    (12)           (8)          (6)
     Cash received from issuances
      of debt                          1  13,001           100           26
     Revolving credit facilities,
      notes and commercial paper
       borrowings, net               599      30          (150)         122
     Payments on debt               (251) (6,593)          (97)        (159)


  STATEMENT OF CASH FLOWS                      Q4             Year ended
  SELECTED INFORMATION (unaudited)      Dec. 28,  Dec. 29, Dec. 28, Dec. 29,
     (in millions)                        2003      2002     2003     2002
  (Weyerhaeuser only, excludes real
   estate & related assets)

     Net cash from operations                         701             1,258
     Cash paid for property and
      equipment                                      (241)             (924)
     Cash paid for timberlands
      reforestation                                   (10)              (36)
     Cash received from issuances of
      debt                                          1,015            14,142
     Revolving credit facilities, notes
      and commercial paper
       borrowings, net                               (230)             (228)
     Payments on debt                              (1,375)           (8,224)

SOURCE: Weyerhaeuser Company Limited

CONTACT: Media, Bruce Amundson, +1-253-924-3047, or Analysts, Kathryn
McAuley, +1-253-924-2058, both of Weyerhaeuser Company

Web site: http://www.weyerhaeuser.com/


https://investor.weyerhaeuser.com/2003-04-25-Weyerhaeuser-Reports-First-Quarter-Loss-of-54-Million-or-24-Cents-Per-Share-On-Net-Sales-of-4-6-Billion