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Weyerhaeuser Reports Record Second Quarter Net Earnings of $369 Million, or $1.57 Per Share, on Net Sales of $5.9 Billion

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Jul 23, 2004

Weyerhaeuser Company (NYSE: WY) today reported record second quarter net earnings of $369 million, or $1.57 per share, on net sales of $5.9 billion. This compares with $157 million, or 71 cents per share, on net sales of $4.9 billion for the second quarter of 2003.

  (Logo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
         http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b )
  Second quarter 2004 earnings include the following after-tax items:

   *    A charge of $14 million, or 6 cents per share, for early
        extinguishment of debt.
   *    A charge of $10 million, or 4 cents per share, for an adverse
        judgment in a lawsuit.

  Second quarter 2003 earnings included the following after-tax items:

   *    A charge of $19 million, or 8 cents per share, for closure or
        impending sale of facilities.
   *    A charge of $17 million, or 8 cents per share, for integration and
        restructuring activities.
   *    A gain of $95 million, or 43 cents per share, for the sale of
        timberlands in Western Washington.
   *    A gain of $7 million, or 3 cents per share, for the settlement of an
        insurance claim relating to the company's Cemwood litigation.

  Other significant second quarter financial matters include:

   *    Proceeds from an equity offering in the second quarter allowed the
        company, including Real Estate and Related Assets, to reduce
        outstanding debt by approximately $1.0 billion to approximately
        $11.6 billion at the end of the quarter. Strong cash flow from
        operations also contributed to a net second quarter increase in cash
        and short-term investments of approximately $650 million, which is
        expected to be applied to future debt repayment. These debt
        repayments are expected to reduce interest expense beginning in the
        third quarter.
   *    Capital spending, excluding acquisitions and Real Estate and Related
        Assets, for the first six months was approximately $177 million. The
        company's capital spending budget remains $750 million for the year.

"Our record quarterly earnings reflect favorable market conditions for Wood Products and Timberlands, combined with hard work by our employees to improve efficiency and streamline operations," said Steven R. Rogel, chairman, president and chief executive officer. "The robust housing market drove strong earnings in both Wood Products and Real Estate. In addition, the performance of the company's paper-related businesses is improving.

"As we look to the third quarter, our businesses are well positioned to take advantage of continued strong market conditions. Despite recent price weakness in some product lines, Wood Products earnings are expected to remain healthy and our single-family home building business has a record backlog of orders. Price increases in pulp, paper and packaging continue to be implemented."

   SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS

   Millions (except per share data)      2Q 2004   2Q 2003    Change
   Net earnings                             $369      $157      $212
   Earnings per share                      $1.57     $0.71     $0.86
   Net sales                              $5,893    $4,930      $963

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

   Millions                              2Q 2004   2Q 2003    Change
   Timberlands                              $201      $300     ($99)
   Wood Products                            $448     ($53)      $501
   Pulp and Paper                            $14      ($7)       $21
   Containerboard, Packaging and Recycling   $62      $108     ($46)
   Real Estate and Related Assets           $118       $91       $27

   DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT
   TIMBERLANDS
                                         2Q 2004   1Q 2004    Change
   Contribution to earnings (millions)      $201      $159       $42

Second quarter earnings increased from the first quarter primarily due to seasonally higher fee harvest volume and higher prices for logs in both export and domestic markets. Third quarter earnings, excluding the previously announced sale of 304,000 acres of timberlands in Georgia, are expected to be slightly lower than the second quarter, with reduced harvest and sales activity due to normal seasonal shutdowns.

   WOOD PRODUCTS
                                         2Q 2004   1Q 2004    Change
   Contribution to earnings (millions)      $448      $173      $275

Second quarter earnings of $448 million include a $16 million pre-tax charge resulting from an adverse judgment in a lawsuit. This compares to first quarter earnings of $173 million, which included a pre-tax gain of $33 million on the sale of the company's oriented strand board mill in Slave Lake, Alberta, and a pre-tax charge of $49 million for the settlement of litigation.

Strong demand for lumber, structural panels and engineered wood products continued into the second quarter with U.S. housing starts staying near the 2 million seasonally adjusted annual level through the quarter. High industry operating rates in OSB and plywood, combined with transportation issues affecting all products, kept prices at very high levels for much of the quarter. Prices for hardwood lumber, particleboard and medium density fiberboard also increased in response to strong demand from industrial manufacturers.

The segment incurred $34 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the second quarter. This compares to $26 million in the first quarter.

Third quarter earnings are expected to be lower than second quarter, but to remain healthy. Prices for lumber and structural panels are expected to be lower as supply and demand begins to balance and transportation issues abate. Average realizations for engineered lumber and industrial panels are expected to improve.

   PULP AND PAPER
                                         2Q 2004   1Q 2004    Change
   Contribution (charge) to earnings
    (millions)                               $14     ($25)       $39

Earnings improved during the quarter as general improvement in the world economy and a weakening dollar increased demand for all products, resulting in higher prices. Transportation disruptions slowed product shipments during the quarter.

The segment expects to report improved earnings in the third quarter. Overall prices for pulp are expected to increase modestly. Improvements in fine paper prices are anticipated as demand continues to grow.

   CONTAINERBOARD, PACKAGING AND RECYCLING
                                         2Q 2004   1Q 2004    Change
   Contribution to earnings (millions)       $62       $24       $38

Earnings increased over first quarter levels primarily due to higher box shipments coupled with rising prices for both containerboard and boxes. Increased productivity also contributed to higher earnings, partially offset by cost increases for recycled fiber during the quarter.

Customer demand is expected to remain strong in the third quarter, with industry operating rates remaining high and industry inventories near historic lows. This should result in continued favorable business conditions for this segment. As a result, the company expects higher third quarter earnings due primarily to increasing box prices.

   REAL ESTATE AND RELATED ASSETS
                                         2Q 2004   1Q 2004    Change
   Contribution to earnings (millions)      $118      $120      ($2)

Second quarter earnings benefited from increases in single-family home sale closings and margins. First quarter earnings included a $22 million pre- tax gain on a land sale.

Housing sales remain strong with a backlog of homes sold, but not closed, exceeding seven months. Third quarter earnings from new home sales are expected to be comparable to the second quarter. Total segment earnings for the third quarter are expected to be higher due to an $18 million pre-tax gain from the sale of a multi-family site.

Other

The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 23 to discuss the second quarter results.

To access the conference call, listeners calling from within North America should dial 1-888-221-5699 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-706-643-3795. Replays of the call will be available for 48 hours following completion of the live call and can be accessed at 1-800-642-1687 (access code: 8362614) within North America and at 1-706-645-9291 (access code: 8362614) 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, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2003, sales were $19.9 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. 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 expectations regarding the company's markets in the third quarter; expected earnings and performance of the company's business segments during the third quarter, demand and pricing for the company's products in the third quarter, market capacity, anticipated debt repayment and interest expense reduction, anticipated capital spending, reduced timber harvest in the third quarter, transportation and new home 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; disruption of transportation and legal proceedings. 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.

   For more information contact:
   Media - Bruce Amundson 253-924-3047
   Analysts - Kathryn McAuley 253-924-2058


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  CONSOLIDATED EARNINGS                        Q1                Q2
     (in millions)                     March 28, March 30, June 27, June 29,
                                          2004     2003     2004     2003
  Net sales and revenues:
     Weyerhaeuser (1)                    $4,568   $4,169   $5,369   $4,498
     Real Estate and Related Assets         469      445      524      432
  Total net sales and revenues            5,037    4,614    5,893    4,930

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold             3,539    3,322    3,922    3,611
       Depreciation, amortization and
        fee stumpage                        325      321      328      313
       Selling expenses                     121      107      122      111
       General and administrative
        expenses                            241      231      235      232
       Research and development
        expenses                             12       12       13       12
       Taxes other than payroll and
        income taxes                         48       47       48       48
       Charges for integration and
        restructuring                        15       29       13       25
       Charges for closure of
        facilities                            1       22       --       12
       Other operating costs,
        net (2) (3)                          14       37       42     (205)
                                          4,316    4,128    4,723    4,159
     Real Estate and Related Assets:
       Costs and operating expenses         321      330      381      316
       Depreciation and amortization          2        3        4        2
       Selling expenses                      27       24       30       25
       General and administrative
        expenses                             17       14       19       14
       Taxes other than payroll and
        income taxes                          1        1       --        1
       Other operating costs, net             1       (7)       1       --
                                            369      365      435      358
  Total costs and expenses                4,685    4,493    5,158    4,517

  Operating income                          352      121      735      413

  Interest expense and other:
     Weyerhaeuser:
       Interest expense incurred (4)       (195)    (208)    (218)    (205)
       Less interest capitalized              3        5        1        6
       Equity in income (loss) of
        affiliates                           --       (5)       7        3
       Interest income and other              3        6        5        6
     Real Estate and Related Assets:
       Interest expense incurred            (15)     (14)     (14)     (13)
       Less interest capitalized             15       14       14       13
       Equity in income of
        unconsolidated entities               9        5       20        7
       Interest income and other             11       11        9        8
  Earnings before income taxes and
   cumulative effect of a change in
   accounting principle                     183      (65)     559      238
  Income taxes                              (62)      22     (190)     (81)
  Earnings before cumulative effect of
   a change in accounting principle         121      (43)     369      157
  Cumulative effect of a change in
   accounting principle, net of
   applicable taxes of $6 (5)                --      (11)      --       --
  Net earnings (loss)                      $121     $(54)    $369     $157

  Basic net earnings (loss) per share:
     Net earnings (loss) before
      cumulative effect of a change
      in accounting principle             $0.54   $(0.19)   $1.57    $0.71

     Cumulative effect of a change in
      accounting principle                   --    (0.05)      --       --
     Net earnings (loss)                  $0.54   $(0.24)   $1.57    $0.71

  Diluted net earnings (loss) per
   share:
     Net earnings (loss) before
      cumulative effect of a change
      in accounting principle             $0.54   $(0.19)   $1.57    $0.71

     Cumulative effect of a change in
      accounting principle                   --    (0.05)      --       --
     Net earnings (loss)                  $0.54   $(0.24)   $1.57    $0.71

  Dividends paid per share                $0.40    $0.40    $0.40    $0.40



                                                                     Year
                                     Year-to-date     Q3      Q4     ended
                                     June    June    Sept.   Dec.    Dec.
                                      27,     29,     28,     28,     28,
                                     2004    2003    2003    2003    2003
  Net sales and revenues:
     Weyerhaeuser (1)               $9,937  $8,667  $4,650  $4,527  $17,844
     Real Estate and Related Assets    993     877     534     618    2,029
  Total net sales and revenues      10,930   9,544   5,184   5,145   19,873

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold        7,461   6,933   3,598   3,547   14,078
       Depreciation, amortization
        and fee stumpage               653     634     320     353    1,307
       Selling expenses                243     218     117     122      457
       General and administrative
        expenses                       476     463     249     238      950
       Research and development
        expenses                        25      24      10      17       51
       Taxes other than payroll and
        income taxes                    96      95      45      45      185
       Charges for integration and
        restructuring                   28      54      24      25      103
       Charges for closure of
        facilities                       1      34      48      45      127
       Other operating costs, net
        (2) (3)                         56    (168)     16     (92)    (244)
                                     9,039   8,287   4,427   4,300   17,014
     Real Estate and Related
      Assets:
       Costs and operating expenses    702     646     406     464    1,516
       Depreciation and
        amortization                     6       5       3       3       11
       Selling expenses                 57      49      27      31      107
       General and administrative
        expenses                        36      28      15      20       63
       Taxes other than payroll and
        income taxes                     1       2       0       1        3
       Other operating costs, net        2      (7)      2      (4)      (9)
                                       804     723     453     515    1,691
  Total costs and expenses           9,843   9,010   4,880   4,815   18,705

  Operating income                   1,087     534     304     330    1,168

  Interest expense and other:
     Weyerhaeuser:
       Interest expense incurred (4)  (413)   (413)   (200)   (202)    (815)
       Less interest capitalized         4      11       3       5       19
       Equity in income (loss) of
        affiliates                       7      (2)     (3)     (1)      (6)
       Interest income and other         8      12       3       2       17
     Real Estate and Related
      Assets:
       Interest expense incurred       (29)    (27)    (13)    (13)     (53)
       Less interest capitalized        29      27      13      13       53
       Equity in income of
        unconsolidated entities         29      12      11      (3)      20
       Interest income and other        20      19       6       8       33
  Earnings before income taxes and
   cumulative effect of a change
   in accounting principle             742     173     124     139      436
  Income taxes                        (252)    (59)    (42)    (47)    (148)
  Earnings before cumulative effect
   of a change in accounting principle 490     114      82      92      288
  Cumulative effect of a change in
   accounting principle, net of
   applicable taxes of $6 (5)           --     (11)     --      --      (11)
  Net earnings (loss)                 $490    $103     $82     $92     $277

  Basic net earnings (loss) per
   share:
     Net earnings (loss) before
      cumulative effect of a change
      in accounting principle        $2.14   $0.52   $0.37   $0.41    $1.30
     Cumulative effect of a change
      in accounting principle           --   (0.05)     --      --    (0.05)
     Net earnings (loss)             $2.14   $0.47   $0.37   $0.41    $1.25

  Diluted net earnings (loss) per
   share:
     Net earnings (loss) before
      cumulative effect of a change
      in accounting principle        $2.13   $0.52   $0.37   $0.41    $1.30
     Cumulative effect of a change
      in accounting principle           --   (0.05)     --      --    (0.05)
     Net earnings (loss)             $2.13   $0.47   $0.37   $0.41    $1.25

  Dividends paid per share           $0.80   $0.80   $0.40   $0.40    $1.60


   (1)  The first and second quarters of 2004 include charges of $26 million
        and $34 million, respectively, or $60 million year-to-date, for
        countervailing and anti-dumping duties and related costs.  The
        first, second, third and fourth quarters of 2003 include charges of
        $24 million, $26 million, $25 million, and $22 million,
        respectively, or a total of $97 million for the year, for
        countervailing and anti-dumping duties and related costs.
   (2)  The first and second quarters of 2004 include net foreign exchange
        losses of $9 million and $7 million, respectively, or a total net
        loss of $16 million year-to-date.  The 2003 first, second, third and
        fourth quarters include net foreign exchange gains (losses) of $35
        million, $47 million, ($4) million, and $30 million, respectively,
        for a total net gain of $108 million for the year. These gains and
        losses result primarily from fluctuations in Canadian and New
        Zealand exchange rates.
   (3)  The first quarter of 2004 includes a $49 million charge for the
        settlement of lawsuits involving the market for Pacific Northwest
        alder logs and a $33 million gain on the sale of an oriented strand
        board mill in Slave Lake, Alberta. The second quarter includes a $16
        million charge resulting from an adverse judgment in a lawsuit
        involving the market for Pacific Northwest alder logs. The first
        quarter of 2003 includes a $79 million charge for a lawsuit
        involving the market for Pacific Northwest alder logs.  2003 second
        quarter includes a $144 million gain on the sales of timberlands in
        Washington state and a $25 million gain for the settlement of an
        insurance claim relating to the Cemwood litigation.  2003 third
        quarter includes a $23 million charge associated with the settlement
        of a class action linerboard antitrust lawsuit.  2003 fourth quarter
        includes a $61 million gain on the sales of timberlands in Tennessee
        and the Carolinas and an $8 million charge associated with the
        settlement of litigation related to workers compensation claims.
   (4)  The second quarter of 2004 includes a $21 million charge for the
        early extinguishment of debt.
   (5)  Statement of Financial Accounting Standards No. 143, Accounting for
        Asset Retirement Obligations,was adopted as of the beginning of
        2003.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues (in millions):         Q1                Q2
                                       March 28, March 30, June 27, June 29,
                                           2004     2003     2004     2003
  Timberlands:
     Logs                                  $193     $162     $211     $185
     Other products                          58       80       66       61
                                            251      242      277      246
  Wood Products:
     Softwood lumber                        819      752    1,106      846
     Plywood                                221      165      263      173
     Veneer                                  11        9       12        9
     Composite panels                       108       90      133      104
     OSB                                    338      167      456      227
     Hardwood lumber                         81       80       94       86
     Engineered lumber products             298      254      396      308
     Logs                                    23       25       38       33
     Other products                         248      216      294      262
                                          2,147    1,758    2,792    2,048
  Pulp and Paper:
     Pulp                                   339      309      371      321
     Paper                                  535      596      538      546
     Coated groundwood                       36       36       37       32
     Liquid packaging board                  49       47       53       52
     Other products                          10        6       13        6
                                            969      994    1,012      957

  Containerboard, Packaging and
   Recycling:
     Containerboard                          81       77       80       81
     Packaging                              853      879      918      922
     Recycling                               80       60       91       63
     Bags                                    19       20       18       20
     Other products                          33       33       34       35
                                          1,066    1,069    1,141    1,121

  Real Estate and Related Assets            469      445      524      432

  Corporate and Other                       135      106      147      126

                                         $5,037   $4,614   $5,893   $4,930


                                                                      Year
                                     Year-to-date      Q3      Q4     ended
                                      June    June    Sept.   Dec.    Dec.
                                       27,     29,     28,     28,     28,
                                      2004    2003    2003    2003    2003
  Timberlands:
     Logs                             $404    $347    $184    $199     $730
     Other products                    124     141      62      61      264
                                       528     488     246     260      994
  Wood Products:
     Softwood lumber                 1,925   1,598     890     793    3,281
     Plywood                           484     338     219     227      784
     Veneer                             23      18       9      12       39
     Composite panels                  241     194     100      99      393
     OSB                               794     394     345     370    1,109
     Hardwood lumber                   175     166      75      79      320
     Engineered lumber products        694     562     329     288    1,179
     Logs                               61      58      19      28      105
     Other products                    542     478     251     246      975
                                     4,939   3,806   2,237   2,142    8,185
  Pulp and Paper:
     Pulp                              710     630     333     342    1,305
     Paper                           1,073   1,142     530     510    2,182
     Coated groundwood                  73      68      39      33      140
     Liquid packaging board            102      99      50      49      198
     Other products                     23      12       5       9       26
                                     1,981   1,951     957     943    3,851

  Containerboard, Packaging and
   Recycling:
     Containerboard                    161     158      73      73      304
     Packaging                       1,771   1,801     898     845    3,544
     Recycling                         171     123      60      64      247
     Bags                               37      40      19      21       80
     Other products                     67      68      40      39      147
                                     2,207   2,190   1,090   1,042    4,322

  Real Estate and Related Assets       993     877     534     618    2,029

  Corporate and Other                  282     232     120     140      492

                                   $10,930  $9,544  $5,184  $5,145  $19,873


  Contribution (charge) to earnings:           Q1                Q2
     (in millions)                     March 28, March 30, June 27, June 29,
                                           2004     2003     2004     2003
  Timberlands (1)                          $159     $149     $201     $300
  Wood Products (2) (3) (4)                 173     (150)     448      (53)
  Pulp and Paper (5)                        (25)      10       14       (7)
  Containerboard, Packaging and
   Recycling (6) (7)                         24       80       62      108
  Real Estate and Related Assets (8)        120       95      118       91
  Corporate and Other  (9) (10) (11)        (76)     (46)     (67)      (2)
                                           $375     $138     $776     $437


                                                                       Year
                                       Year-to-date    Q3      Q4     ended
                                      June    June    Sept.   Dec.     Dec.
                                       27,     29,     28,     28,      28,
                                      2004    2003    2003    2003     2003
  Timberlands (1)                     $360    $449    $143    $185     $777
  Wood Products (2) (3) (4)            621    (203)    151     111       59
  Pulp and Paper (5)                   (11)      3     (18)    (67)     (82)
  Containerboard, Packaging and
   Recycling (6) (7)                    86     188      42      32      262
  Real Estate and Related Assets
   (8)                                 238     186      97     109      392
  Corporate and Other  (9) (10) (11)  (143)    (48)    (94)    (34)    (176)
                                    $1,151    $575    $321    $336   $1,232


   (1)  The 2003 second quarter includes a $144 million gain on the sales of
        timberlands in Washington state.  The 2003 fourth quarter includes a
        $61 million gain on the sale of timberlands in Tennessee and the
        Carolinas.
   (2)  The first and second quarters of 2004 include charges of $26 million
        and $34 million, respectively, or $60 million year-to-date, for
        countervailing and anti-dumping duties and related costs.  The
        first, second, third and fourth quarters of 2003 include charges of
        $24 million, $26 million, $25 million, and $22 million,
        respectively, or a total of $97 million for the year, for
        countervailing and anti-dumping duties and related costs.
   (3)  The first quarter of 2004 includes a $49 million charge for the
        settlement of lawsuits involving the market for Pacific Northwest
        alder logs. The second quarter of 2004 includes a $16 million charge
        resulting from an adverse judgment in a lawsuit involving the market
        for Pacific Northwest alder logs. The first quarter of 2003 includes
        a $79 million charge for a lawsuit involving the market for Pacific
        Northwest alder logs.
   (4)  The first quarter of 2004 includes a credit of $2 million for the
        reversal of closure costs accrued in prior years and a $33 million
        gain on the sale of an oriented strand board mill in Slave Lake,
        Alberta. The second quarter of 2004 includes a $5 million net loss
        on the sale of facilities. The 2003 first, second, third and fourth
        quarters include costs for the closure of facilities of $22 million,
        $11 million, $31 million, and $14 million, respectively.  2003
        second quarter also includes a charge of $16 million to recognize
        impairment associated with an impending facility sale that closed in
        the fourth quarter of 2003.
   (5)  The 2004 second quarter includs a $2 million asset impairment charge
        related to assets held for sale.  2003 second quarter includes $3
        million of closure costs.  2003 fourth quarter includes $30 million
        of closure costs.
   (6)  The third quarter of 2003 includes a $23 million charge associated
        with the settlement of a class action linerboard antitrust lawsuit.
   (7)  The first quarter of 2004 includes closure costs of $3 million.  The
        second quarter of 2004 includes a net gain of $1 million on the
        sales of a facility and a joint venture investment.  The 2003 second
        quarter includes the reversal of an accrual for closure charges of
        $2 million.  The 2003 third and fourth quarters include closure
        costs of $17 million and $1 million, respectively.
   (8)  The first quarter of 2004 includes a $22 million gain on a land
        sale.  The 2003 first quarter includes gains of $8 million for the
        sale of two office buildings and $10 for the sale of an apartment
        complex.  The 2003 second quarter includes a gain of $12 million for
        the sale of commercial property.  The 2003 fourth quarter includes a
        $7 million gain on an acreage sale.
   (9)  The 2003 second quarter includes a $6 million charge to reflect the
        final settlement in connection with the termination of the former
        MacMillan Bloedel pension plan for U.S. employees.
   (10) The 2003 second quarter includes a $25 million gain for the
        settlement of an insurance claim relating to the Cemwood litigation.
        The 2003 fourth quarter includes an $8 million charge for the
        settlement of litigation related to workers compensation claims.
   (11) The first and second quarters of 2004 include net foreign exchange
        losses of $10 million and $6 million, or a loss of $16 million year-
        to-date.  2003 results include net foreign exchange gains (losses)
        of $35 million in the first quarter, $46 million in the second
        quarter, ($4) million in the third quarter, and $30 million in the
        fourth quarter, for a net 2003 gain of $107 million.  These gains
        and losses result primarily from fluctuations in Canadian and New
        Zealand exchange rates.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)


  Third party sales volumes:                   Q1                Q2
                                       March 28, March 30, June 27, June 29,
                                          2004     2003     2004     2003
  Timberlands (thousands):
     Logs - cunits                        1,044      984      954    1,006

  Wood Products (millions):
     Softwood lumber - board feet         2,054    2,175    2,393    2,385
     Plywood  - square feet (3/8")          642      664      668      697
     Veneer - square feet (3/8")             55       62       60       63
     Composite panels - square feet (3/4")  301      267      324      304
     Oriented strand board - square
      feet (3/8")                           981    1,025    1,143    1,206
     Hardwood lumber - board feet           100      106      116      113
     Logs - cunits (in thousands)           170      170      279      230

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons             624      623      642      596
     Paper - tons                           741      737      718      690
     Coated groundwood - tons                59       61       61       55
     Liquid packaging board  - tons          66       60       72       67
     Paper converting - tons                483      502      472      472

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons                  250      221      221      233
     Packaging - MSF                     18,146   17,752   18,917   18,577
     Recycling - tons                       678      593      701      566
     Kraft bags and sacks - tons             24       25       23       24

  Real Estate and Related Assets:
     Single-family homes sold             1,506    1,289    1,564    1,321
     Single-family homes closed           1,065    1,010    1,216    1,003
     Single-family homes sold but not
      closed at end of period             2,702    2,161    3,050    2,479


                                                                      Year
                                     Year-to-date     Q3      Q4     ended
                                      June    June    Sept.   Dec.    Dec.
                                       27,     29,     28,     28,     28,
                                      2004    2003    2003    2003    2003
  Timberlands (thousands):
     Logs - cunits                    1,998   1,990     987   1,148   4,125

  Wood Products (millions):
     Softwood lumber - board feet     4,447   4,560   2,298   2,123   8,981
     Plywood  - square feet (3/8")    1,310   1,361     688     616   2,665
     Veneer - square feet (3/8")        115     125      56      58     239
     Composite panels - square
      feet (3/4")                       625     571     302     289   1,162
     Oriented strand board - square
      feet (3/8")                     2,124   2,231   1,129   1,001   4,361
     Hardwood lumber - board feet       216     219     103     105     427
     Logs - cunits (in thousands)       449     400     189     210     799

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons       1,266   1,219     632     628   2,479
     Paper - tons                     1,459   1,427     707     688   2,822
     Coated groundwood - tons           120     116      64      54     234
     Liquid packaging board  - tons     138     127      64      65     256
     Paper converting - tons            955     974     478     430   1,882

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons              471     454     214     222     890
     Packaging - MSF                 37,063  36,329  18,545  17,867  72,741
     Recycling - tons                 1,379   1,159     538     593   2,290
     Kraft bags and sacks - tons         47      49      25      26     100

  Real Estate and Related Assets:
     Single-family homes sold         3,070   2,610   1,239   1,156   5,005
     Single-family homes closed       2,281   2,013   1,182   1,431   4,626
     Single-family homes sold but
      not closed at end of period     3,050   2,479   2,536   2,261   2,261


  Total production volumes:                    Q1                Q2
                                       March 28, March 30, June 27, June 29,
                                           2004     2003     2004     2003
  Timberlands (thousands):
     Fee Depletion  - cunits              2,265    2,555    2,404    2,479

  Wood Products (millions):
     Softwood lumber - board feet         1,760    1,842    1,881    1,825
     Plywood - square feet (3/8")           422      478      405      412
     Veneer - square feet (3/8") (1)        585      593      609      536
     Composite panels - square feet (3/4")  268      231      281      252
     Oriented strand board - square
      feet (3/8")                         1,031    1,011    1,056    1,051
     Hardwood lumber - board feet            89       98       96       93

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons             619      654      636      619
     Paper - tons (2)                       743      757      736      712
     Coated groundwood - tons                55       62       61       55
     Liquid packaging board  - tons          61       56       67       68
     Paper converting - tons                490      516      470      479

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons (3)            1,503    1,429    1,598    1,568
     Packaging - MSF                     19,493   18,977   20,208   19,955
     Recycling - tons (4)                 1,607    1,528    1,707    1,644
     Kraft bags and sacks - tons             24       25       23       25


                                       Year-to-date     Q3      Q4     Year
                                                                      ended
                                       June    June    Sept.   Dec.    Dec.
                                        27,     29,     28,     28,     28,
                                       2004    2003    2003    2003    2003
  Timberlands (thousands):
     Fee Depletion  - cunits          4,669   5,034   2,223   2,171   9,428

  Wood Products (millions):
     Softwood lumber - board feet     3,641   3,667   1,742   1,704   7,113
     Plywood - square feet (3/8")       827     890     414     404   1,708
     Veneer - square feet (3/8") (1)  1,194   1,129     536     534   2,199
     Composite panels - square
      feet (3/4")                       549     483     253     252     988
     Oriented strand board - square
      feet (3/8")                     2,087   2,062   1,061   1,047   4,170
     Hardwood lumber - board feet       185     191      93      89     373

  Pulp and Paper (thousands):
     Pulp - air-dry metric tons       1,255   1,273     604     645   2,522
     Paper - tons (2)                 1,479   1,469     706     658   2,833
     Coated groundwood - tons           116     117      61      61     239
     Liquid packaging board  - tons     128     124      72      65     261
     Paper converting - tons            960     995     472     415   1,882

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons (3)        3,101   2,997   1,512   1,494   6,003
     Packaging - MSF                 39,701  38,932  19,865  19,033  77,830
     Recycling - tons (4)             3,314   3,172   1,507   1,537   6,216
     Kraft bags and sacks - tons         47      50      23      25      98


   (1)  Veneer production represents lathe production and includes volumes
        that are further processed into plywood and engineered lumber
        products by company mills.
   (2)  Paper production includes unprocessed rolls and converted paper
        volumes.

   (3)  Containerboard production represents machine production and includes
        volumes that are further processed into packaging by company
        facilities.
   (4)  Recycling production includes volumes processed in Weyerhaeuser
        recycling facilities and brokered volumes.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION

  CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                   (in millions)
                                          March 28,    June 27,    Dec. 28,
 Assets                                     2004         2004        2003

  Weyerhaeuser
     Current assets:
       Cash and short-term investments        $74        $725        $171
       Receivables, less allowances         1,701       1,860       1,484
       Inventories                          2,020       1,936       1,911
       Prepaid expenses                       471         488         455
             Total current assets           4,266       5,009       4,021
     Property and equipment                12,141      11,883      12,243
     Construction in progress                 251         279         403
     Timber and timberlands at cost,
      less fee stumpage charged
       to disposals                         4,279       4,244       4,287
     Investments in and advances to
      equity affiliates                       603         592         603
     Goodwill                               3,232       3,218       3,237
     Deferred pension and other assets      1,287       1,273       1,311
                                           26,059      26,498      26,105

  Real Estate and Related Assets            2,078       2,225       2,004

     Total assets                         $28,137     $28,723     $28,109

  Liabilities and Shareholders' Interest

  Weyerhaeuser
     Current liabilities:
       Notes payable and commercial paper    $103          $2          $4
       Current maturities of long-term debt 1,129         445          90
       Accounts payable                     1,065       1,114       1,041
       Accrued liabilities                  1,212       1,323       1,390
             Total current liabilities      3,509       2,884       2,525
     Long-term debt                        10,399      10,325      11,503
     Deferred income taxes, pension,
      other postretirement benefits
      and other liabilities                 5,694       5,789       5,671
                                           19,602      18,998      19,699
  Real Estate and Related Assets
     Notes payable and commercial paper        78          --           1
     Long-term debt                           887         872         893
     Other liabilities                        356         443         407
                                            1,321       1,315       1,301
     Total liabilities                     20,923      20,313      21,000

     Shareholders' interest                 7,214       8,410       7,109

     Total liabilities and
      shareholders' interest              $28,137     $28,723     $28,109


  STATEMENT OF CASH FLOWS                      Q1                 Q2
  SELECTED INFORMATION (unaudited)     March 28, March 30, June 27, June 29,
     (in millions)                         2004      2003     2004     2003
  (Weyerhaeuser only, excludes Real
   Estate & Related Assets)

     Net cash from operations             $(120)    $(126)    $807     $397
     Cash paid for property and
      equipment                             (79)     (128)     (80)    (172)
     Cash paid for timberlands
      reforestation                         (12)      (14)      (6)      (5)
     Cash received from issuances of debt    --         1       --       --
     Revolving credit facilities,
      notes and commercial paper
       borrowings, net                       98       599     (100)    (333)
     Payments on debt                       (60)     (251)    (813)     (14)
     Proceeds from equity offering           --        --      954       --

                                                                      Year
                                         Year-to-date   Q3     Q4    ended
                                         June   June   Sept.  Dec.    Dec.
                                          27,    29,    28,    28,     28,
                                         2004   2003   2003   2003    2003

     Net cash from operations            $687   $271   $557   $821   $1,649
     Cash paid for property and
      equipment                          (159)  (300)  (146)  (146)    (592)
     Cash paid for timberlands
      reforestation                       (18)   (19)    (6)    (9)     (34)
     Cash received from issuances of
      debt                                 --      1     12     31       44
     Revolving credit facilities, notes
      and commercial paper
       borrowings, net                     (2)   266    166   (750)    (318)
     Payments on debt                    (873)  (265)  (509)   (50)    (824)
     Proceeds from equity offering        954     --     --     --       --
Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Weyerhaeuser Company

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/

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