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Weyerhaeuser Reports First Quarter Earnings, Including Fine Paper Business Goodwill Impairment

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Apr 26, 2006

Weyerhaeuser Company (NYSE: WY) today reported a net loss of $580 million for first quarter 2006, or $2.36 per diluted share, on net sales of $5.4 billion. This includes an impairment of goodwill associated with the company's fine paper business.

Excluding the goodwill impairment of $746 million, the company earned $166 million, or 67 cents per diluted share. This compares with net earnings of $239 million, or 98 cents per diluted share, on net sales of $5.4 billion for the same period last year.

The company also announced today that, as a part of its previously announced strategic review, it is considering alternatives for its fine paper business. The alternatives range from continuing to hold and operate the assets to a possible sale or other disposition. The company said it is in active discussions with several parties, but there is no assurance that these discussions will lead to an agreement or result in a transaction.

"This announcement marks an important milestone in our ongoing strategic review," said Steven R. Rogel, chairman, president and chief executive officer. "We remain committed to seeking the best alternatives to create value for shareholders."

  First quarter 2006 earnings include the following after-tax items:

  o A charge of $746 million, or $3.03 per diluted share, for the estimated
    amount of a write-off of goodwill associated with the fine paper
    business. This estimate represents the full amount of goodwill
    associated with that business. This estimate is undergoing further
    evaluation and will be adjusted, if necessary, prior to the filing of
    the company's 10-Q.
  o Income of $12 million in the Real Estate business, or 5 cents per
    diluted share, associated with insurance recoveries and recognition of
    deferred income in connection with partnership restructurings.
  o A charge of $17 million, or 7 cents per diluted share, for foreign
    exchange losses.
  o A charge of $14 million, or 6 cents per diluted share for stock-based
    compensation.  The company adopted the provisions of FASB Statement
    123R, the stock-based compensation accounting standard, in the first
    quarter.

  First quarter 2005 earnings include the following after-tax items:

  o A charge of $8 million, or 3 cents per diluted share, associated with
    the settlement of a linerboard antitrust lawsuit.
  o A charge of $5 million, or 2 cents per diluted share associated with the
    closure of facilities.

"During the quarter we began to see some improvement in market conditions for our cellulose fiber, fine paper, containerboard and packaging businesses which resulted in price improvement in the first quarter," said Steven R. Rogel, chairman, president and chief executive officer. "We believe this trend will continue and have a positive effect upon our second quarter earnings."

  SUMMARY OF FIRST QUARTER FINANCIAL HIGHLIGHTS

  Millions (except per share data)         1Q 2006    1Q 2005     Change
  Net earnings (loss)                        ($580)      $239      ($819)
  Earnings (loss) per diluted share         ($2.36)     $0.98     ($3.34)
  Net sales                                 $5,376     $5,371         $5

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

  Millions                                 1Q 2006    1Q 2005     Change
  Timberlands                                 $198       $200        ($2)
  Wood Products                               $117       $131       ($14)
  Cellulose Fiber and White Papers           ($763)       $19      ($782)
  Containerboard, Packaging and Recycling      $22        $48       ($26)
  Real Estate and Related Assets              $172       $183       ($11)

  TIMBERLANDS
                                           1Q 2006    4Q 2005     Change
  Contribution to pre-tax earnings (millions) $198       $183        $15

First quarter earnings increased slightly from the fourth quarter 2005 due to increasing Western log prices and lower first quarter operating costs in the West and South. Fourth quarter 2005 included a $6 million pre-tax charge due to the effects of Hurricane Katrina.

Weyerhaeuser expects second quarter market conditions and earnings to be similar to first quarter.

  WOOD PRODUCTS
                                           1Q 2006    4Q 2005     Change
  Contribution to pre-tax earnings (millions) $117        $26        $91

Earnings in the first quarter of 2006 were comparable to fourth quarter 2005 after excluding $91 million of pre-tax charges associated with facility closures taken in the fourth quarter of 2005. Construction activity remained healthy during the first quarter and prices were mixed.

Prices for oriented strand board were slightly lower than fourth quarter 2005 and shipment volumes were comparable.

Lumber prices trended up during the quarter. However, shipment volume decreased 7 percent.

Prices and shipment volumes for engineered lumber products were comparable to the prior quarter.

Manufacturing costs for lumber products remained constant quarter to quarter, and manufacturing costs for engineered products declined slightly primarily due to higher productivity.

The company incurred $11 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the first quarter of 2006, compared with $16 million in the fourth quarter of 2005.

Weyerhaeuser expects higher second quarter earnings compared with first quarter due to seasonal increase in building activity and stable raw materials and manufacturing costs.

  CELLULOSE FIBER AND WHITE PAPERS
                                           1Q 2006    4Q 2005    Change
  Contribution (charge)
   to pre-tax earnings (millions)           ($763)     ($477)    ($286)

First quarter includes a goodwill impairment charge of $746 million. Fourth quarter 2005 includes closure related costs of $427 million for the Cosmopolis, Wash. pulp operations; Prince Albert, Saskatchewan pulp and paper operations; and a paper machine at Dryden, Ontario.

Excluding the charges, first quarter performance improved from fourth quarter 2005.

Fine paper and cellulose fiber products both experienced stronger market conditions, with prices increasing on a quarter-to-quarter basis. Fine paper sales volumes declined modestly with the January closure of Prince Albert paper operations while cellulose fiber volume improved slightly. Improved productivity and lower freight costs were offset by increases in raw materials and chemicals. Energy costs remained stable at their high level.

Weyerhaeuser expects the segment to show improved earnings in second quarter despite a seasonal increase in annual scheduled maintenance.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                           1Q 2006    4Q 2005     Change
  Contribution (charge)
   to pre-tax earnings (millions)              $22     ($188)       $210

Earnings improved from the fourth quarter due to containerboard and packaging price increases. Packaging shipments declined from the strong fourth quarter levels, but were higher compared with the first quarter of last year. Fourth quarter 2005 results included pre-tax charges of $130 million for facility closures and $38 million for a settlement of containerboard antitrust lawsuits.

The company expects continued improvement in earnings from this segment in the second quarter.

  REAL ESTATE AND RELATED ASSETS
                                           1Q 2006    4Q 2005     Change
  Contribution to pre-tax earnings (millions) $172       $250      ($78)

Earnings decreased from fourth quarter due to decreased margins and seasonally lower single-family home closings. The number of single-family homes closed in first quarter declined 40 percent as compared to fourth quarter. First quarter results included land sales earnings of approximately $33 million and $17 million from insurance recoveries and partnership restructurings. Fourth quarter results included a $33 million pre-tax impairment charge related to unimproved land in Northern California. The backlog of homes sold, but not closed, at the end of the first quarter represents more than five months' sales. This level is similar to the backlog at the end of the fourth quarter.

Weyerhaeuser expects increased single-family closing activity in the second quarter. Total real estate and related earnings, however, are expected to decline slightly from the first quarter due to lower land sales.

The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 26 to discuss the first quarter results.

To access the conference call from within North America, dial 1-888-221- 5699 at least 15 minutes before the call. Those calling from outside North America should dial 1-706-643-3795. Replays will be available for one week at 1-800-642-1687 (access code - 7766499) from within North America and at 1-706- 645-9291 (access code - 7766499) from outside North America.

The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ by clicking on the "Q1 2006 Earnings Conference Call" link.

The webcast is available through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com/, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected site, StreetEvents (http://www.streetevents.com/).

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were $22.6 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 second quarter 2006; expected earnings and performance of the company's business segments during the second quarter 2006, demand and pricing for the company's products in the second quarter 2006, stable raw material and manufacturing costs in the second quarter 2006, seasonal increase in building activity in the second quarter of 2006, seasonal increase in annual maintenance outages in the second quarter 2006, increased single-family housing closings in second quarter 2006, lower land sales in the second quarter of 2006, the completion of a transaction involving the fine paper business; and related matters. 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:

  o The effect of general economic conditions, including the level of
    interest rates and housing starts;
  o Market demand for the company's products, which may be tied to the
    relative strength of various U.S. business segments;
  o Energy prices;
  o Raw material prices;
  o Chemical prices;
  o Performance of the company's manufacturing operations including
    unexpected maintenance requirements;
  o The successful execution of internal performance plans;
  o The level of competition from domestic and foreign producers;
  o The effect of forestry, land use, environmental and other governmental
    regulations, and changes in accounting regulations;
  o The effect of weather;
  o The risk of loss from fires, floods, windstorms, hurricanes and other
    natural disasters;
  o Transportation costs;
  o Legal proceedings;
  o The effect of timing of retirements and changes in the market price of
    company stock on charges for stock-based compensation; and
  o Performance of pension fund investments and related derivatives.

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 anti-dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors could cause or contribute to actual results differing materially from such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will occur, or if any of them occurs, what effect they will have on the company's results of operations or financial condition. The company expressly declines any obligation to publicly revise any forward-looking statements that have been made to reflect the occurrence of events after the date of this news release.

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


   WEYERHAEUSER COMPANY
   STATISTICAL INFORMATION  (unaudited)

   CONSOLIDATED EARNINGS
   (in millions)
                              Q1            Q2       Q3       Q4    Year End
                    ___________________ ________ ________  ________ ________
                    March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
                         2006     2005     2005     2005     2005     2005
                    _________ _________ ________ ________  ________ ________

  Net sales and revenues:
   Weyerhaeuser (1)    $4,686  $4,716    $5,160   $4,986   $4,852   $19,714
   Real Estate
    and Related Assets    690     655       648      596    1,016     2,915
  Total net sales
   and revenues         5,376   5,371     5,808    5,582    5,868    22,629

  Costs and expenses:
   Weyerhaeuser:
    Costs of
     products sold      3,719   3,621     3,947    3,912    3,980    15,460
    Depreciation,
     depletion and
     amortization         312     323       325      327      332     1,307
    Selling expenses      111     117       118      118      108       461
    General and
     administrative
     expenses             257     222       218      236      223       899
    Research and
     development expenses  16      14        12       18       17        61
    Taxes other than
     payroll and
     income taxes          44      46        48       69       16       179
    Charges for
     integration and
     restructuring         --       5         4        2       10        21
    Charges for closure
     of facilities          1       5         3       29      656       693
    Impairment of
     goodwill (2)         746      --        --       --       --        --
    Other operating
     costs, net (3)(4)     30       9       (40)     (32)       3       (60)
                        5,236   4,362     4,635    4,679    5,345    19,021
   Real Estate and
    Related Assets:
    Costs and operating
     expenses (5)         481     426       441      401      677     1,945
    Depreciation
     and amortization       3       3         4        4        5        16
    Selling expenses       37      33        36       36       46       151
    General and
     administrative
     expenses              30      24        25       27       28       104
    Taxes other than
     payroll and
     income taxes           1       1        --        1        1         3
    Other operating
     costs, net            (3)     --        (2)      (2)       1        (3)
    Impairment of
     long-lived assets     --      --        --       --       33        33
                          549     487       504      467      791     2,249
  Total costs
   and expenses         5,785   4,849     5,139    5,146    6,136    21,270

  Operating income       (409)    522       669      436     (268)    1,359

  Interest expense and other:
   Weyerhaeuser:
    Interest expense
     incurred (6)        (152)   (196)     (179)    (193)    (171)     (739)
    Less interest
     capitalized           16      --         2        3        4         9
    Interest income
     and other             19      27        20      143       24       214
    Equity in income
     (loss) of
     affiliates (7)         3      --         4        2      (12)       (6)
   Real Estate and
    Related Assets:
    Interest expense
     incurred             (14)    (14)      (14)     (13)     (14)      (55)
    Less interest
     capitalized           14      14        14       13       14        55
    Interest income
     and other             10       5        (2)       4        5        12
    Equity in income
     of unconsolidated
     entities (8)          21      10        13       14       20        57

  Earnings before
   income taxes          (492)    368       527      409     (398)      906
  Income taxes (9)        (88)   (129)     (228)    (120)     153      (324)
  Earnings from
   continuing operations (580)    239       299      289     (245)      582
  Earnings from
   discontinued
   operations,
   net of taxes (10)       --      --       121       (4)      34       151
  Net earnings          $(580)   $239      $420     $285    $(211)     $733


  Basic net earnings per share:
    Continuing
     operations        $(2.36)   $0.98    $1.23    $1.17   $(1.00)    $2.38
    Discontinued
     operations            --      --      0.49    (0.01)    0.14      0.62
    Net earnings
     per share         $(2.36)   $0.98    $1.72    $1.16   $(0.86)    $3.00

  Diluted net earnings per share:
    Continuing
     operations        $(2.36)   $0.98    $1.22    $1.17   $(1.00)    $2.36
    Discontinued
     operations            --      --      0.49    (0.01)    0.14      0.62
    Net earnings
     per share         $(2.36)   $0.98    $1.71    $1.16   $(0.86)    $2.98

  Dividends paid
   per share            $0.50   $0.40     $0.50    $0.50    $0.50     $1.90

  Weighted average shares outstanding (in thousands)
    Basic             245,794 242,863   244,702  245,009  245,215   244,447
    Diluted           245,794 244,185   245,881  246,190  246,198   245,559


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  FOOTNOTES TO CONSOLIDATED EARNINGS
     (in millions)
                        Q1 2006  Q1 2005 Q2 2005  Q3 2005  Q4 2005 YE 2005
  (1) Countervailing and
      anti-dumping duties
      and related costs
      per quarter were
      charges of:         $11      $22     $27      $19      $16     $84

  (2) The first quarter of 2006 includes the estimated amount of a write-off
      of goodwill associated with the fine paper business.

                        Q1 2006  Q1 2005 Q2 2005  Q3 2005  Q4 2005 YE 2005
   (3) Net foreign
       exchange gains
       (losses), primarily
       from fluctuations
       in Canadian and
       New Zealand
       exchange rates:  $(26)     $13   $(13)      $37    $(21)     $ 16

  (4) 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 third quarter of 2005 includes a
      $115 million gain on the sale of an investment in a joint venture.
      The fourth quarter of 2005 includes a $38 million charge for the
      settlement of linerboard antitrust litigation and $43 million of
      income for the cumulative effect of a change to begin capitalizing
      Weyerhaeuser interest to assets of Weyerhaeuser Real Estate Company.

  (5) The first quarter of 2006 includes income of $8 million related to a
      warranty insurance recovery.

  (6) The third and fourth quarters of 2005 include charges of $21 million
      and $15 million, respectively, for the early extinguishment of debt.

  (7) The fourth quarter of 2005 includes a $15 million charge related to
      the impairment of an investment in an equity affiliate.

  (8) The first quarter of 2006 includes recognition of $10 million of
      deferred income in connection with partnership restructurings.

  (9) The second quarter of 2005 includes a charge of $44 million related to
      the repatriation of $1.1 billion of eligible Canadian earnings under
      the provisions of the American Jobs Creation Act of 2004. The third
      quarter of 2005 includes a one-time tax benefit of $14 million related
      to a change in the Ohio state income tax law.

  (10) Includes the net operating results of the company's coastal British
       Columbia and French composites operations. The second quarter of 2005
       includes a gain of $110 million, including a tax benefit of $46
       million, related to the sale of the coastal British Columbia
       operations.  The third quarter of 2005 includes a $1 million charge
       related to the termination of pension plans associated with these
       operations.  The fourth quarter of 2005 includes a pretax gain of $57
       million and related tax expense of $23 million associated with the
       sale of the French composites operations.

   WEYERHAEUSER COMPANY
   STATISTICAL INFORMATION  (unaudited)


   Net sales and revenues (in millions):
                              Q1            Q2       Q3       Q4    Year End
                    ___________________ ________ ________  ________ ________
                    March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
                         2006     2005     2005     2005     2005     2005
                    _________ _________ ________ ________  ________ ________
  Timberlands:
    Logs                  $201     $182     $195     $188    $196     $761
    Other products          62       82       63       65      76      286
                           263      264      258      253     272    1,047
  Wood Products:
    Softwood lumber        782      892    1,032      889     811    3,624
    Plywood                135      183      196      184     172      735
    Veneer                  13       13       10        9      12       44
    Composite panels       121      120      132      122     123      497
    OSB                    287      288      306      267     303    1,164
    Hardwood lumber         99       94      102       95      99      390
    Engineered I-Joists    183      160      213      202     181      756
    Engineered Solid
     Section               221      190      241      244     221      896
    Logs                     7       27       24        6       5       62
    Other products         225      272      339      326     290    1,227
                         2,073    2,239    2,595    2,344   2,217    9,395

  Cellulose Fiber and White Papers:
    Pulp                   394      376      355      381     370    1,482
    Paper                  613      599      611      604     603    2,417
    Coated groundwood       40       42       47       45      46      180
    Liquid packaging
     board                  46       47       52       50      54      203
    Other products          14       14       12       16      12       54
                         1,107    1,078    1,077    1,096   1,085    4,336

  Containerboard, Packaging and Recycling:
    Containerboard          82      117      101       86      91      395
    Packaging              911      898      969      929     914    3,710
    Recycling               80       92       92       87      81      352
    Bags                    20       22       21       20      20       83
    Other products          34       34       40       47      46      167
                         1,127    1,163    1,223    1,169   1,152    4,707

  Real Estate and Related
   Assets                  690      655      648      596   1,016    2,915

  Corporate and Other      116      149      151      146     154      600

  Less sales of
   discontinued
   operations               --     (177)    (144)     (22)    (28)    (371)

                        $5,376   $5,371   $5,808   $5,582  $5,868  $22,629


  Contribution (charge) to earnings:
   (in millions)
                              Q1            Q2       Q3       Q4    Year End
                    ___________________ ________ ________  ________ ________
                    March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
                         2006     2005     2005     2005     2005     2005
                    _________ _________ ________ ________  ________ ________
  Timberlands
   (1)(2)(4)              $198     $200    $210     $191     $183     $784
  Wood
   Products (1)(2)(5)      117      131     204      124       26      485
  Cellulose Fiber
   and White
   Papers (1)(2)(6)       (763)      19      16       (2)    (477)    (444)
  Containerboard,
   Packaging and
   Recycling (1)(2)(7)      22       48      99       36     (188)      (5)
  Real Estate and
   Related Assets (8)      172      183     156      145      250      734
  Corporate and
   Other (1)(2)(3)(9)     (102)     (17)     99      101       33      216
                         $(356)    $564    $784     $595    $(173)  $1,770


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  FOOTNOTES TO CONTRIBUTION (CHARGE) TO EARNINGS
   (in millions)

  (1) Closure charges by segment:
                       Q1 2006  Q1 2005  Q2 2005  Q3 2005 Q4 2005 YE 2005
  Timberlands              $--      $ 3     $--     $--      $3     $6
  Wood Products             --        1       1       6      91     99
  Cellulose Fiber
   and White Papers         (1)      --      --      22     427    449
  Containerboard,
   Packaging and Recycling   2        4       2       1     130    137
  Corporate and Other       --       --      --      --       5      5
                            $1       $8      $3     $29    $656   $696

  The above closure charges for the first quarter and full year 2005 include
  $3 million of costs incurred within the company's discontinued operations.

  (2) Stock-based compensation charges (income) recognized by segment:

                       Q1 2006  Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
  Timberlands               $1      $--     $--     $--     $--   $--
  Wood Products              2       --      --      --      --    --
  Cellulose Fiber
   and White Papers          1       --      --      --      --    --
  Containerboard,
   Packaging and Recycling   2       --      --      --      --    --
  Corporate and Other       15        2      (6)      3      12    11
                           $21      $ 2     $(6)     $3     $12   $11


                       Q1 2006  Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
  (3) Net foreign
      exchange gains
      (losses) included
      in Corporate
      and Other were:     $(26)     $13    $(12)    $38    $(20)  $ 19

  (4) Additonal Timberlands notes:
     (a) Hurricane related losses were $5 million in third quarter 2005 and
         $6 million in fourth quarter 2005.

  (5) Additonal Wood Products notes:
     (a) Refer to footnote 1 to Consolidated Earnings regarding
         countervailing duty and anti-dumping costs included in Wood
         Products.
     (b) The second quarter of 2005 includes an $18 million charge related
         to alder litigation.  The third quarter of 2005 includes $9 million
         of income related to the reduction of reserves for alder litigation
         and an insurance settlement related to product liability claims.
     (c) The second quarter of 2005 includes a $6 million gain related to a
         tenure reallocation agreement with the British Columbia government.

  (6) Additional Cellulose Fiber and White Papers notes:
      (a) The first quarter of 2006 includes a charge of $746 million for
          the estimated amount of a write-off of goodwill associated with
          the fine paper business.

  (7) Additional Containerboard, Packaging and Recycling notes:
      (a) The first and fourth quarters of 2005 include charges of $12
          million and $38 million, respectively, associated with the
          settlement of linerboard antitrust lawsuits.
      (b) The third quarter of 2005 had a charge of $1 million related to
          hurricane damage.

  (8) Additional Real Estate and Related Assets notes:
      (a) The first quarter of 2006 includes income of $8 million related to
          a warranty insurance recovery and income of $10 million related to
          recognition of deferred income in connection with partnership
          restructurings.
      (b) The first quarter of 2006 includes net gains on land and lot sales
          of $33 million.  The first, second, third and fourth quarters of
          2005 include net gains (losses) on land and lot sales of
          $57 million, $21 million, ($1) and $2 million, respectively.  The
          fourth quarter of 2005 also includes a $33 million charge for the
          impairment of unimproved land.

  (9) Additional Corporate and Other notes:
      (a) 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 third quarter of 2005
          includes a $115 million gain on the sale of an investment in a
          joint venture. The fourth quarter of 2005 includes a $57 million
          gain on the sale of the company's French composites operations and
          $43 million of income for the cumulative effect of a change to
          begin capitalizing Weyerhaeuser interest to assets of Weyerhaeuser
          Real Estate Company.
      (b) The fourth quarter of 2005 includes charges of $15 million related
          to the impairment of an investment in an equity affiliate.


   WEYERHAEUSER COMPANY
   STATISTICAL INFORMATION  (unaudited)


   Third party sales volumes:
                              Q1            Q2       Q3       Q4    Year End
                    ___________________ ________ ________  ________ ________
                    March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
                         2006     2005     2005     2005     2005     2005
                    _________ _________ ________ ________  ________ ________
  Timberlands
   (thousands):
    Logs - cunits          935      864      863      886      939    3,552

  Wood Products
   (millions):
    Softwood lumber -
     board feet          1,921    2,057    2,355    2,179    2,059    8,650
    Plywood  - square
     feet (3/8")           389      537      600      558      485    2,180
    Veneer - square
     feet (3/8")            61       60       59       51       61      231
    Composite panels -
     square feet
     (3/4")                302      299      317      308      305    1,229
    Oriented strand
     board - square
     feet (3/8")         1,000      908    1,041    1,008      991    3,948
    Hardwood lumber -
     board feet            103      102      114      105      106      427
    Engineered I-
     Joists - LF           114      108      138      125      113      484
    Engineered Solid
     Section - CF            9        9       10       10        9       38
    Logs - cunits (in
     thousands)             55      187      177       41       46      451

  Cellulose Fiber and
   White Papers
   (thousands):
    Pulp - air-dry
     metric tons           651      629      587      653      633    2,502
    Paper - tons (1)       753      736      742      757      761    2,996
    Coated groundwood
     - tons                 52       58       62       56       56      232
    Liquid packaging
     board  - tons          56       60       65       64       69      258
    Paper converting -
     tons                  511      475      494      494      501    1,964

  Containerboard,
   Packaging and
   Recycling
   (thousands):
    Containerboard -
     tons                  211      295      259      238      254    1,046
    Packaging - MSF     18,342   17,354   18,600   18,560   19,117   73,631
    Recycling - tons       733      692      695      665      676    2,728
    Kraft bags and
     sacks - tons           20       23       22       22       22       89

  Real Estate and
   Related Assets:
    Single-family
     homes sold          1,472    1,378    1,525    1,608    1,174    5,685
    Single-family
     homes closed        1,161    1,189    1,279    1,257    1,922    5,647
    Single-family
     homes sold but
     not closed at end
     of period           3,104    2,561    2,807    3,158    2,410    2,410

  (1) Paper volume includes unprocessed rolls and converted paper volumes.


  Total production volumes:
                              Q1            Q2       Q3       Q4    Year End
                    ___________________ ________ ________  ________ ________
                    March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
                         2006     2005     2005     2005     2005     2005
                    _________ _________ ________ ________  ________ ________
  Timberlands
   (thousands):
    Fee Depletion  -
     cunits              2,132    2,248    2,231    2,098    2,153    8,730

  Wood Products (millions):
    Softwood lumber -
     board feet          1,663    1,821    1,869    1,651    1,645    6,986
    Plywood - square
     feet (3/8")           241      303      302      296      254    1,155
    Veneer - square
     feet (3/8") (1)       455      517      529      486      447    1,979
    Composite panels -
     square feet
     (3/4")                278      267      282      268      263    1,080
    Oriented strand
     board - square
     feet (3/8")         1,073    1,007    1,019    1,017    1,035    4,078
    Hardwood lumber -
     board feet             82       92       96       91       85      364
    Engineered I-
     Joists - LF           121      133      132      108      110      483
    Engineered Solid
     Section - CF           11       11       10       10       10       41

  Cellulose Fiber and
   White Papers (thousands):
    Pulp - air-dry
     metric tons           676      621      614      663      604    2,502
    Paper - tons (2)       724      763      752      765      780    3,060
    Coated groundwood
     - tons                 56       55       59       60       60      234
    Liquid packaging
     board  - tons          61       60       64       69       71      264
    Paper converting -
     tons                  498      475      487      483      505    1,950

  Containerboard,
   Packaging and
   Recycling
   (thousands):
    Containerboard -
     tons (3)            1,575    1,503    1,581    1,597    1,587    6,268
    Packaging - MSF     19,550   18,628   19,915   19,416   20,130   78,089
    Recycling - tons
     (4)                 1,716    1,624    1,673    1,716    1,730    6,743
    Kraft bags and
     sacks - tons           19       23       22       21       22       88

  (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 26,      Dec. 25,
  Assets                                             2006          2005

  Weyerhaeuser
    Current assets:
      Cash and short-term investments                 $105           $818
      Receivables, less allowances                   1,828          1,727
      Inventories                                    2,068          1,917
      Prepaid expenses                                 433            414
        Total current assets                         4,434          4,876
    Property and equipment                          10,285         10,510
    Construction in progress                           648            533
    Timber and timberlands at cost, less fee
     stumpage charged to disposals                   3,702          3,705
    Investments in and advances to equity affiliates   475            486
    Goodwill                                         2,235          2,982
    Deferred pension and other assets                1,284          1,314
    Restricted assets held by
     special purpose entities                          914            916
                                                    23,977         25,322

  Real Estate and Related Assets
    Cash and short-term investments                     39            286
    Receivables, less allowances                       143             42
    Real estate and land for sale and development    2,639          2,092
    Other assets                                       413            357
    Assets not owned, consolidated under FIN 46R       170            130
                                                     3,404          2,907

    Total assets                                  $ 27,381        $28,229

  Liabilities and Shareholders' Interest

  Weyerhaeuser
    Current liabilities:
      Notes payable and commercial paper                $1            $ 3
      Current maturities of long-term debt             699            389
      Accounts payable                               1,193          1,241
      Accrued liabilities                            1,253          1,622
        Total current liabilities                    3,146          3,255
    Long-term debt                                   6,938          7,404
    Deferred income taxes                            4,001          4,035
    Deferred pension, other postretirement
     benefits and other liabilities                  1,651          1,591
    Liabilities (nonrecourse to Weyerhaeuser)
     held by special purpose entities                  763            764
                                                    16,499         17,049

  Real Estate and Related Assets
    Notes payable and commercial paper                  63              3
    Long-term debt                                     878            851
    Other liabilities                                  598            417
    Liabilities not owned, consolidated under FIN 46R  114            109
                                                     1,653          1,380

    Total liabilities                               18,152         18,429

  Shareholders' interest                             9,229          9,800

    Total liabilities and shareholders' interest  $ 27,381        $28,229



  STATEMENT OF CASH FLOWS
  SELECTED INFORMATION (unaudited)
   (in millions)
                              Q1            Q2       Q3       Q4    Year End
                    ___________________ ________ ________  ________ ________
                    March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
                         2006     2005     2005     2005     2005     2005
                    _________ _________ ________ ________  ________ ________

   (Weyerhaeuser only, excludes Real Estate & Related Assets)

  Net cash
   from operations       $(209)   $(203)   $713    $441     $669    $1,620
  Cash paid for
   property and equipment (182)    (117)   (196)   (220)    (310)     (843)
  Cash paid for
   timberlands
   reforestation           (12)     (12)     (6)     (6)      (8)      (32)
  Cash received
   from issuances of debt   --       --       1      --       --         1
  Revolving credit
   facilities, notes
   and commercial paper
   borrowings, net         (68)      19      23     (40)     170       172
  Payments on debt        (158)    (404)   (206)   (965)    (603)   (2,178)
  Proceeds from the
   sale of operations       --       --   1,107      --      102     1,209
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: press, 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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