News Room
Weyerhaeuser Reports Second Quarter Net Earnings of $420 Million, or $1.71 Per Diluted Share, on Net Sales of $5.8 Billion
PRNewswire-FirstCall
FEDERAL WAY, Wash.
Jul 21, 2005
Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $420 million, or $1.71 per diluted share, on net sales of $5.8 billion. This compares with $369 million, or $1.57 per diluted share, on net sales of $5.7 billion for the second quarter of 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b ) Second quarter 2005 earnings include the following after-tax items:
-- A gain of $110 million, or 45 cents per diluted share, related to the sale of the company's operations in coastal British Columbia.
-- A charge of $44 million, or 18 cents per diluted share, related to a planned repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004.
-- A gain of $37 million, or 15 cents per diluted share, related to the recognition of a deferred gain from previous timberlands sales.
-- A charge of $12 million, or 5 cents per diluted share, related to litigation.
Second quarter 2004 earnings included the following after-tax items:
-- A charge of $14 million, or 6 cents per diluted share, for early extinguishment of debt.
-- A charge of $10 million, or 4 cents per diluted share, for an adverse judgment in a lawsuit.
"This year's overall results are good, despite conditions that were more difficult than second quarter of last year," said Steven R. Rogel, chairman, president and chief executive officer. "We're pleased with this short-term performance, but we also recognize that many of our businesses face significant long-term challenges. We remain focused on finding ways to enhance the earnings performance of our entire portfolio, regardless of market conditions."
SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 2Q 2005 2Q 2004 Change
Net earnings $420 $369 $51
Earnings per diluted share $1.71 $1.57 $0.14
Net sales $5,838 $5,728 $110
SEGMENT RESULTS FOR SECOND QUARTER
(Contributions to Pre-Tax Earnings)
Millions 2Q 2005 2Q 2004 Change
Timberlands $210 $201 $9
Wood Products $204 $448 ($244)
Cellulose Fiber and White Papers $16 $14 $2
Containerboard, Packaging and
Recycling $99 $62 $37
Real Estate and Related Assets $156 $118 $38
DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT
TIMBERLANDS
2Q 2005 1Q 2005 Change
Contribution to earnings
(millions) $210 $200 $10
Second quarter earnings increased slightly from the first quarter due primarily to higher domestic log prices. Export prices were flat quarter to quarter. Fee harvest was down slightly.
Third quarter earnings are expected to be slightly lower than the second quarter, due to reduced harvest and sales activity from normal seasonal shutdowns. Export prices are expected to be modestly higher, but not enough to offset anticipated declines in domestic log prices.
WOOD PRODUCTS
2Q 2005 1Q 2005 Change
Contribution to earnings
(millions) $204 $131 $73
Earnings increased significantly from first quarter due primarily to higher shipment volumes for all core product lines. The overall effect of price on earnings quarter to quarter was minor, with higher prices for engineered wood products offset by lower prices in oriented strand board and plywood. Average lumber prices realized were flat. Second quarter earnings included $18 million in pre-tax charges related to litigation.
The segment incurred $27 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, compared with $22 million in the first quarter.
Prices for commodity building products are expected to drop seasonally in the third quarter. Shipment volumes are expected to be flat. As a result, third quarter earnings are expected to decline to a level closer to the first quarter.
CELLULOSE FIBER AND WHITE PAPERS (Formerly Pulp and Paper)
2Q 2005 1Q 2005 Change
Contribution to earnings
(millions) $16 $19 ($3)
Segment earnings declined slightly from first quarter, due primarily to scheduled maintenance downtime and higher chip, chemical and freight costs.
Fluff pulp pricing improved during the quarter. Oversupply and weak demand in Europe resulted in lower papergrade pulp prices and shipment volumes. Fine paper prices improved in all major product lines and sales volume increased modestly.
Price declines are expected for papergrade pulp and fine paper product lines in the coming months. However, the company expects that minimal scheduled maintenance downtime will result in lower costs and higher third quarter earnings.
CONTAINERBOARD, PACKAGING AND RECYCLING
2Q 2005 1Q 2005 Change
Contribution to earnings
(millions) $99 $48 $51
Earnings increased over first quarter levels primarily due to a seasonal increase in box shipments and lower manufacturing costs at the containerboard mills. Lower manufacturing costs were due primarily to increased production in the second quarter when compared to first quarter. The first quarter included a pre-tax charge of $12 million associated with the settlement of a linerboard antitrust lawsuit and $4 million for costs associated with the closure of a packaging facility in Bowling Green, Ky.
The company expects third quarter earnings to decrease as both containerboard and box prices are currently under pressure.
REAL ESTATE AND RELATED ASSETS
2Q 2005 1Q 2005 Change
Contribution to earnings
(millions) $156 $183 ($27)
Earnings declined as expected from the prior quarter as contributions from land sales declined $36 million. Single-family home closings and average prices increased. The backlog of homes sold, but not closed, represents approximately six months' sales.
The company's key real estate markets continue to be strong and Weyerhaeuser expects single-family closings to remain steady in the third quarter.
OTHER
The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 21 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: 7576930) within North America and at 1-706-645-9291 (access code: 7576930) from outside North America.
The call may also be accessed through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ .
Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 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, supply, raw material and freight costs, reduced timber harvest in the third quarter maintenance downtime, and land 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 27, March 28, June 26, June 27,
2005 2004 2005 2004
Net sales and revenues:
Weyerhaeuser (1) $4,749 $4,442 $5,190 $5,204
Real Estate and Related Assets 655 469 648 524
Total net sales and revenues 5,404 4,911 5,838 5,728
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,652 3,432 3,974 3,790
Depreciation, amortization and
fee stumpage 325 317 326 318
Selling expenses 118 120 119 122
General and administrative
expenses 223 239 218 233
Research and development expenses 14 12 12 13
Taxes other than payroll and
income taxes 46 48 48 47
Charges for integration and
restructuring 5 15 4 13
Charges for closure of facilities 5 4 3 --
Other operating costs, net (2)(3) 9 17 (40) 43
4,397 4,204 4,664 4,579
Real Estate and Related Assets:
Costs and operating expenses 426 321 441 381
Depreciation and amortization 3 2 4 4
Selling expenses 33 27 36 30
General and administrative
expenses 24 17 25 19
Taxes other than payroll and
income taxes 1 1 -- --
Other operating costs, net -- 1 (2) 1
487 369 504 435
Total costs and expenses 4,884 4,573 5,168 5,014
Operating income 520 338 670 714
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (4) (196) (195) (179) (218)
Less interest capitalized -- 3 2 1
Equity in income (loss) of
affiliates -- -- 4 7
Interest income and other 27 3 20 5
Real Estate and Related Assets:
Interest expense incurred (14) (15) (14) (14)
Less interest capitalized 14 15 14 14
Equity in income of
unconsolidated entities 10 9 13 20
Interest income and other 5 11 (2) 9
Earnings before income taxes 366 169 528 538
Income taxes (5) (128) (57) (229) (183)
Earnings from continuing operations 238 112 299 355
Earnings from discontinued operations,
net of taxes (6) 1 9 121 14
Net earnings $239 $121 $420 $369
Basic net earnings per share:
Continuing operations $0.98 $0.50 $1.23 $1.51
Discontinued operations -- 0.04 0.49 0.06
Net earnings per share $0.98 $0.54 $1.72 $1.57
Diluted net earnings per share:
Continuing operations $0.98 $0.50 $1.22 $1.51
Discontinued operations -- 0.04 0.49 0.06
Net earnings per share $0.98 $0.54 $1.71 $1.57
Dividends paid per share $0.40 $0.40 $0.50 $0.40
Weighted average shares outstanding
(in thousands)
Basic 242,863 223,728 244,702 234,494
Diluted 244,185 225,072 245,881 235,475
Year
CONSOLIDATED EARNINGS Year-to-date Q3 Q4 ended
(in millions) June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
2005 2004 2004 2004 2004
Net sales and revenues:
Weyerhaeuser (1) $9,939 $9,646 $5,088 $4,804 $19,538
Real Estate and Related
Assets 1,303 993 591 911 2,495
Total net sales and revenues 11,242 10,639 5,679 5,715 22,033
Costs and expenses:
Weyerhaeuser:
Costs of products sold 7,626 7,222 3,758 3,735 14,715
Depreciation,
amortization and fee
stumpage 651 635 316 320 1,271
Selling expenses 237 242 123 119 484
General and
administrative expenses 441 472 226 247 945
Research and development
expenses 26 25 13 17 55
Taxes other than payroll
and income taxes 94 95 51 48 194
Charges for integration
and restructuring 9 28 8 3 39
Charges for closure of
facilities 8 4 13 0 17
Other operating costs,
net (2) (3) (31) 60 (300) 36 (204)
9,061 8,783 4,208 4,525 17,516
Real Estate and Related
Assets:
Costs and operating
expenses 867 702 414 647 1,763
Depreciation and
amortization 7 6 3 5 14
Selling expenses 69 57 31 37 125
General and
administrative expenses 49 36 19 26 81
Taxes other than payroll
and income taxes 1 1 1 0 2
Other operating costs,
net (2) 2 (19) 0 (17)
991 804 449 715 1,968
Total costs and expenses 10,052 9,587 4,657 5,240 19,484
Operating income 1,190 1,052 1,022 475 2,549
Interest expense and other:
Weyerhaeuser:
Interest expense
incurred (4) (375) (413) (184) (241) (838)
Less interest
capitalized 2 4 0 5 9
Equity in income (loss)
of affiliates 4 7 4 3 14
Interest income and
other 47 8 7 9 24
Real Estate and Related
Assets:
Interest expense
incurred (28) (29) (14) (14) (57)
Less interest
capitalized 28 29 14 14 57
Equity in income of
unconsolidated
entities 23 29 12 11 52
Interest income and
other 3 20 1 10 31
Earnings before income taxes 894 707 862 272 1,841
Income taxes (5) (357) (240) (293) (94) (627)
Earnings from continuing
operations 537 467 569 178 1,214
Earnings from discontinued
operations, net of taxes (6) 122 23 25 21 69
Net earnings $659 $490 $594 $199 $1,283
Basic net earnings per share:
Continuing operations $2.20 $2.04 $2.36 $0.73 $5.16
Discontinued operations 0.50 0.10 0.10 0.09 0.29
Net earnings per share $2.70 $2.14 $2.46 $0.82 $5.45
Diluted net earnings per
share:
Continuing operations $2.19 $2.03 $2.35 $0.73 $5.14
Discontinued operations 0.50 0.10 0.10 0.09 0.29
Net earnings per share $2.69 $2.13 $2.45 $0.82 $5.43
Dividends paid per share $0.90 $0.80 $0.40 $0.40 $1.60
Weighted average shares
outstanding (in thousands)
Basic 243,782 229,111 241,621 242,114 235,453
Diluted 244,959 230,242 242,649 243,472 236,546
(1) The first and second quarters of 2005 include charges of $22 million and $27 million, respectively, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million and $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti-dumping duties and related costs.
(2) The first and second quarters of 2005 include net foreign exchange gains (losses) of $13 million and ($13) million, respectively, for a year-to-date net effect of zero. The first, second, third and fourth quarters of 2004 include net foreign exchange gains (losses) of ($9) million, ($7) million, $16 million and $27 million, respectively, for a total year-to-date net gain of $27 million. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates.
(3) The first quarter of 2005 includes a $12 million charge for the settlement of a linerboard antitrust lawsuit. The second quarter of 2005 includes an $18 million charge related to alder litigation and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. 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 of 2004 includes a $16 million charge resulting from an adverse judgment in a lawsuit involving the market for Pacific Northwest alder logs. The third quarter of 2004 includes a $271 million gain on the sale of timberlands in Georgia, a $25 million gain from a tenure reallocation agreement with the British Columbia government, and a $20 million gain due to the reduction of the reserve for hardboard siding claims. The fourth quarter of 2004 includes a net gain of $36 million on the sale of facilities, and charges of $29 million for the impairment of assets in the company's European manufacturing operations, $24 million recognized in connection with a change in the method of estimating workers' compensation liabilities and $23 million for the net book value of technology donated to a university.
(4) The second and fourth quarters of 2004 include charges of $21 million and $52 million, respectively, for the early extinguishment of debt.
(5) The second quarter of 2005 includes a charge of $44 million related to a planned repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004.
(6) Includes the net operating results of the company's operations in coastal British Columbia. The second quarter of 2005 also includes a gain of $110 million, including a tax benefit of $46 million, related to the sale of these operations.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues Q1 Q2
(in millions): March 27, March 28, June 26, June 27,
2005 2004 2005 2004
Timberlands:
Logs $182 $193 $195 $211
Other products 82 58 63 66
264 251 258 277
Wood Products:
Softwood lumber 892 819 1,032 1,106
Plywood 183 221 196 263
Veneer 13 11 10 12
Composite panels 120 108 132 133
OSB 288 338 306 456
Hardwood lumber 94 90 102 100
Engineered I-Joists 160 134 213 178
Engineered Solid Section 190 148 241 194
Logs 27 23 24 38
Other products 272 255 339 312
2,239 2,147 2,595 2,792
Cellulose Fiber and White Papers:
Pulp 376 339 355 371
Paper 599 535 611 538
Coated groundwood 42 36 47 37
Liquid packaging board 47 49 52 53
Other products 14 10 12 13
1,078 969 1,077 1,012
Containerboard, Packaging and
Recycling:
Containerboard 117 81 101 80
Packaging 898 853 969 918
Recycling 92 80 92 91
Bags 22 19 21 18
Other products 34 33 40 34
1,163 1,066 1,223 1,141
Real Estate and Related Assets 655 469 648 524
Corporate and Other 149 135 151 147
Less sales of discontinued operations (144) (126) (114) (165)
$5,404 $4,911 $5,838 $5,728
Contribution (charge) to earnings: Q1 Q2
(in millions) March 27, March 28, June 26, June 27,
2005 2004 2005 2004
Timberlands (1) (2) $200 $159 $210 $201
Wood Products (3) (4) (5) (6) 131 173 204 448
Cellulose Fiber and White Papers (7) 19 (25) 16 14
Containerboard, Packaging and
Recycling (8) (9) 48 24 99 62
Real Estate and Related Assets (10) 183 120 156 118
Corporate and Other (11) (12) (13) (17) (76) 99 (67)
$564 $375 $784 $776
Net sales and revenues Year
(in millions): Year-to-date Q3 Q4 ended
June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
2005 2004 2004 2004 2004
Timberlands:
Logs $377 $404 $197 $221 $822
Other products 145 124 51 105 280
522 528 248 326 1,102
Wood Products:
Softwood lumber 1,924 1,925 1,089 901 3,915
Plywood 379 484 237 208 929
Veneer 23 23 11 10 44
Composite panels 252 241 138 122 501
OSB 594 794 341 255 1,390
Hardwood lumber 196 190 89 86 365
Engineered I-Joists 373 312 189 177 678
Engineered Solid Section 431 342 203 189 734
Logs 51 61 32 32 125
Other products 611 567 315 280 1,162
4,834 4,939 2,644 2,260 9,843
Cellulose Fiber and White
Papers:
Pulp 731 710 381 380 1,471
Paper 1,210 1,073 583 570 2,226
Coated groundwood 89 73 39 44 156
Liquid packaging board 99 102 53 53 208
Other products 26 23 15 16 54
2,155 1,981 1,071 1,063 4,115
Containerboard, Packaging and
Recycling:
Containerboard 218 161 94 113 368
Packaging 1,867 1,771 916 897 3,584
Recycling 184 171 87 89 347
Bags 43 37 20 23 80
Other products 74 67 43 46 156
2,386 2,207 1,160 1,168 4,535
Real Estate and
Related Assets 1,303 993 591 911 2,495
Corporate and Other 300 282 135 158 575
Less sales of discontinued
operations (258) (291) (170) (171) (632)
$11,242 $10,639 $5,679 $5,715 $22,033
Contribution (charge) to Year
earnings: Year-to-date Q3 Q4 ended
(in millions) June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
2005 2004 2004 2004 2004
Timberlands (1) (2) $410 $360 $450 $217 $1,027
Wood Products (3) (4) (5) (6) 335 621 362 72 1,055
Cellulose Fiber and White
Papers (7) 35 (11) 80 35 104
Containerboard, Packaging
and Recycling (8) (9) 147 86 82 81 249
Real Estate and
Related Assets (10) 339 238 155 217 610
Corporate and
Other (11) (12) (13) 82 (143) (45) (83) (271)
$1,348 $1,151 $1,084 $539 $2,774
(1) The 2004 third quarter includes a $271 million gain on the sale of timberlands in Georgia and a $5 million gain from a tenure reallocation agreement with the British Columbia government.
(2) The first quarter of 2005 includes $3 million of charges for the closure of facilities.
(3) The first and second quarters of 2005 include charges of $22 million and $27 million, respectively, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million and $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti- dumping duties and related costs.
(4) The second quarter of 2005 includes an $18 million charge related to alder litigation. 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 third quarter of 2004 includes a $20 million gain due to the reduction of the reserve for hardboard siding claims.
(5) The second quarter of 2005 includes a $6 million gain related to a tenure reallocation agreement with the British Columbia government. The third quarter of 2004 includes a $20 million gain from a tenure reallocation agreement with the British Columbia government.
(6) The first and second quarters of 2005 include charges of $1 million and $1 million, respectively, associated with the sale or closure of facilities. 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 third quarter of 2004 includes a $2 million net gain on the sale or closure of facilities. The fourth quarter of 2004 includes charges of $3 million for the closure of facilities and a gain of $36 million on the sale of facilities.
(7) The 2004 second quarter includes a $2 million asset impairment charge related to assets held for sale.
(8) The first quarter of 2005 includes a $12 million charge associated with the settlement of a linerboard antitrust lawsuit.
(9) The first and second quarters of 2005 include charges of $4 million and $2 million, respectively, for the closure of facilities. 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 third quarter of 2004 includes closure costs of $12 million, including a pension termination charge of $9 million related to a closure that occurred in a previous year. The fourth quarter of 2004 includes a credit of $3 million for the reversal of closure costs accrued in prior years.
(10) The first and second quarters of 2005 include net gains on land and lot sales of $57 million and $21 million, respectively. The first quarter of 2004 includes a $22 million gain on a land sale. The third quarter of 2004 includes a gain of $18 million on the sale of a multi-family site. The fourth quarter of 2004 includes a $24 million net gain on land and lot sales.
(11) The second quarter of 2005 includes a $64 million pretax gain on the sale of the company's operations in coastal British Columbia and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The fourth quarter of 2004 includes a $7 million gain for the settlement of an insurance claim relating to the Cemwood litigation.
(12) The fourth quarter of 2004 includes charges of $29 million for the impairment of assets in the company's European manufacturing operations, $24 million recognized in connection with a change in the method of estimating workers' compensation liabilities and $23 million for the net book value of technology donated to a university.
(13) The first and second quarters of 2005 include net foreign exchange gains (losses) of $13 million and ($13) million, respectivley, for a year-to- date net effect of zero. The first, second, third and fourth quarters of 2004 include net foreign exchange gains (losses) of ($10) million, ($6) million, $16 million and $26 million, respectivley, for a $26 million net gain year-to- date. 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 27, March 28, June 26, June 27,
2005 2004 2005 2004
Timberlands (thousands):
Logs - cunits 864 1,044 863 954
Wood Products (millions):
Softwood lumber - board feet 2,057 2,054 2,355 2,393
Plywood - square feet (3/8") 537 642 600 668
Veneer - square feet (3/8") 60 55 59 60
Composite panels - square feet
(3/4") 299 301 317 324
Oriented strand board - square
feet (3/8") 908 981 1,041 1,143
Hardwood lumber - board feet 102 103 114 117
Engineered I-Joists - LF 108 108 138 132
Engineered Solid Section - CF 9 8 10 10
Logs - cunits (in thousands) 187 170 177 279
Cellulose Fiber and White Papers
(thousands):
Pulp - air-dry metric tons 629 624 587 642
Paper - tons 736 741 742 718
Coated groundwood - tons 58 59 62 61
Liquid packaging board - tons 60 66 65 72
Paper converting - tons 475 467 494 459
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 295 250 259 221
Packaging - MSF 17,354 18,146 18,600 18,917
Recycling - tons 692 678 695 701
Kraft bags and sacks - tons 23 24 22 23
Real Estate and Related Assets:
Single-family homes sold 1,378 1,506 1,525 1,564
Single-family homes closed 1,189 1,065 1,279 1,216
Single-family homes sold but not
closed at end of period 2,561 2,702 2,807 3,050
Total production volumes: Q1 Q2
March 27, March 28, June 26, June 27,
2005 2004 2005 2004
Timberlands (thousands):
Fee Depletion - cunits 2,248 2,265 2,231 2,404
Wood Products (millions):
Softwood lumber - board feet 1,821 1,760 1,869 1,881
Plywood - square feet (3/8") 303 422 302 405
Veneer - square feet (3/8") (1) 517 585 529 609
Composite panels - square feet
(3/4") 267 268 282 281
Oriented strand board - square
feet (3/8") 1,007 1,031 1,019 1,056
Hardwood lumber - board feet 92 89 96 96
Engineered I-Joists - LF 133 110 132 124
Engineered Solid Section - CF 11 9 10 11
Cellulose Fiber and White Papers
(thousands):
Pulp - air-dry metric tons 621 619 614 636
Paper - tons (2) 763 743 752 736
Coated groundwood - tons 55 55 59 61
Liquid packaging board - tons 60 61 64 67
Paper converting - tons 475 460 487 442
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (3) 1,503 1,503 1,581 1,598
Packaging - MSF 18,628 19,493 19,915 20,208
Recycling - tons (4) 1,624 1,607 1,673 1,707
Kraft bags and sacks - tons 23 24 22 23
Year
Third party sales volumes: Year-to-date Q3 Q4 ended
June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
2005 2004 2004 2004 2004
Timberlands (thousands):
Logs - cunits 1,727 1,998 904 1,018 3,920
Wood Products (millions):
Softwood lumber -
boardfeet 4,412 4,447 2,299 2,144 8,890
Plywood -
squarefeet(3/8") 1,137 1,310 672 647 2,629
Veneer - square feet
(3/8") 119 115 55 55 225
Composite panels -
square feet (3/4") 616 625 315 294 1,234
Oriented strand board -
square feet (3/8") 1,949 2,124 1,078 1,011 4,213
Hardwood lumber -
board feet 216 220 102 95 417
Engineered I-Joists - LF 246 240 133 123 496
Engineered Solid Section -
CF 19 18 10 9 37
Logs - cunits
(in thousands) 364 449 237 248 934
Cellulose Fiber and White Papers
(thousands):
Pulp - air-dry
metric tons 1,216 1,266 633 659 2,558
Paper - tons 1,478 1,459 737 680 2,876
Coated groundwood - tons 120 120 60 63 243
Liquid packaging board -
tons 125 138 69 69 276
Paper converting - tons 969 926 470 443 1,839
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 554 471 245 285 1,001
Packaging - MSF 35,954 37,063 18,287 17,535 72,885
Recycling - tons 1,387 1,379 645 670 2,694
Kraft bags and sacks -
tons 45 47 23 25 95
Real Estate and Related Assets:
Single-family homes
sold 2,903 3,070 1,313 992 5,375
Single-family homes
closed 2,468 2,281 1,345 1,638 5,264
Single-family homes sold
but not closed at
end of period 2,807 3,050 3,018 2,372 2,372
Total production volumes: Year
Year-to-date Q3 Q4 ended
June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
2005 2004 2004 2004 2004
Timberlands (thousands):
Fee Depletion - cunits 4,479 4,669 2,189 2,155 9,013
Wood Products (millions):
Softwood lumber -
boardfeet 3,690 3,641 1,819 1,727 7,187
Plywood -
square feet (3/8") 605 827 405 396 1,628
Veneer-
square feet (3/8")(1) 1,046 1,194 592 600 2,386
Composite panels -
square feet (3/4") 549 549 272 245 1,066
Oriented strand board -
square feet (3/8") 2,026 2,087 1,022 972 4,081
Hardwood lumber -
board feet 188 185 84 80 349
Engineered I-Joists - LF 265 234 136 134 504
Engineered Solid Section -
CF 21 20 11 10 42
Cellulose Fiber and White Papers
(thousands):
Pulp - air-dry metric
tons 1,235 1,255 652 639 2,546
Paper - tons (2) 1,515 1,479 766 761 3,006
Coated groundwood - tons 114 116 62 62 240
Liquid packaging board -
tons 124 128 71 67 266
Paper converting - tons 962 902 471 465 1,838
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons(3) 3,084 3,101 1,604 1,586 6,291
Packaging - MSF 38,543 39,701 19,473 18,648 77,822
Recycling - tons (4) 3,297 3,314 1,703 1,701 6,718
Kraft bags and sacks -
tons 45 47 23 24 94
(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 and kraft bags and sacks by company facilities.
(4) Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March 27, June 26, Dec. 26,
Assets 2005 2005 2004
Weyerhaeuser
Current assets:
Cash and short-term investments $402 $1,704 $1,044
Receivables, less allowances 1,840 2,008 1,558
Inventories 2,122 2,018 1,891
Prepaid expenses 634 612 592
Assets of business held for
sale 1,119 -- 1,129
Total current assets 6,117 6,342 6,214
Property and equipment 11,447 11,175 11,672
Construction in progress 324 451 268
Timber and timberlands at cost,
less fee stumpage charged
to disposals 3,712 3,709 3,733
Investments in and advances to
equity affiliates 491 495 489
Goodwill 2,997 2,977 2,996
Deferred pension and other assets 1,197 1,249 1,201
Restricted assets held by special
purpose entitites 914 916 909
27,199 27,314 27,482
Real Estate and Related Assets
Cash and short-term investments 5 11 153
Receivables, less allowances 60 57 43
Real estate and land for sale and
development 2,083 2,333 1,947
Other assets 323 278 329
2,471 2,679 2,472
Total assets $29,670 $29,993 $29,954
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial
paper $2 $2 $3
Current maturities of long-term
debt 96 75 489
Accounts payable 1,150 1,225 1,159
Accrued liabilities 1,313 1,655 1,432
Liabilities of business held
for sale 308 -- 297
Total current liabilities 2,869 2,957 3,380
Long-term debt 9,263 9,076 9,277
Deferred income taxes 4,315 4,320 4,312
Deferred pension, other
postretirement benefits
and other liabilities 1,494 1,560 1,500
Liabilities not owned,
consolidated under FIN 46R 820 784 815
18,761 18,697 19,284
Real Estate and Related Assets
Notes payable and commercial
paper 2 5 2
Long-term debt 869 854 867
Other liabilities 533 588 546
1,404 1,447 1,415
Total liabilities 20,165 20,144 20,699
Shareholders' interest 9,505 9,849 9,255
Total liabilities and
shareholders' interest $29,670 $29,993 $29,954
STATEMENT OF CASH FLOWS Q1 Q2
SELECTED INFORMATION (unaudited) March 27, March 28, June 26, June 27,
(in millions) 2005 2004 2005 2004
(Weyerhaeuser only, excludes Real
Estate & Related Assets)
Net cash from operations $(203) $(89) $713 $787
Cash paid for property and
equipment (117) (79) (196) (80)
Cash paid for timberlands
reforestation (12) (12) (6) (6)
Cash received from issuances
of debt -- -- 1 --
Revolving credit facilities,
notes and commercial paper
borrowings, net 19 67 23 (80)
Payments on debt (404) (60) (206) (813)
Proceeds from equity offering -- -- -- 954
Proceeds from the sale of BC
Coastal operations -- -- 1,107 --
STATEMENT OF CASH FLOWS Year
SELECTED INFORMATION Year-to-date Q3 Q4 ended
(unaudited) June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
(in millions) 2005 2004 2004 2004 2004
(Weyerhaeuser only,
excludes Real Estate &
Related Assets)
Net cash from
operations $510 $698 $592 $745 $2,035
Cash paid for property
and equipment (313) (159) (93) (222) (474)
Cash paid for
timberlands re-
forestation (18) (18) (5) (7) (30)
Cash received from
issuances of debt 1 -- -- 1 1
Revolving credit
facilities, notes
and commercial paper
borrowings, net 42 (13) (6) 35 16
Payments on debt (610) (873) (253) (742) (1,868)
Proceeds from equity
offering -- 954 -- -- 954
Proceeds from the sale
of BC Coastal
operations 1,107 -- -- -- --
Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-ahttp://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
Web site: http://www.weyerhaeuser.com/