Newsroom
Weyerhaeuser Reports Fourth Quarter Net Earnings of $126 Million, Or 57 Cents Per Share, on Net Sales of $4.7 Billion
PRNewswire-FirstCall
FEDERAL WAY, Wash.
Feb 3, 2003
Weyerhaeuser Company (NYSE: WY) today reported net earnings for the fourth quarter of $126 million, or 57 cents per share, which includes the net benefit of unusual after-tax items of $38 million, or 16 cents per share.
This compares with a loss of $15 million, or 7 cents per share, for the same period last year. Last year's fourth quarter net earnings included unusual after-tax charges of $20 million, or 9 cents per share, associated with the closure of three wood products facilities.
For the full year, Weyerhaeuser reported net earnings of $241 million, or $1.09 per share, including unusual after tax charges of $55 million, or 25 cents, on net sales of $18.5 billion. This compares with net earnings of $354 million, or $1.61 per share, including unusual after tax charges of $57 million, or 26 cents per share, on net sales of $14.5 billion for 2001.
The unusual items for the fourth quarter 2002 include:
-- $65 million after tax, or 29 cents per share, gain on the sale of
timberlands in Washington state, net of costs associated with the
sale and the closure of related Wood Products and Timberlands
operations.
-- $26 million after tax, or 11 cents per share, benefit from insurance
proceeds covering business disruption costs at the Plymouth, N.C.,
paper facility for previous quarters. The facility resumed normal
operation in the third quarter.
-- $23 million after tax, or 10 cents per share, charge for the
termination of the former MacMillan Bloedel pension plan for U.S.
employees.
-- $19 million after tax, or 9 cents per share, cost associated with
the acquisition and integration of Willamette Industries.
Weyerhaeuser said it continues to make progress on capturing
synergies following the Willamette acquisition. At the end of the
fourth quarter, Weyerhaeuser estimates it has achieved an annualized
run rate of $184 million in pretax synergies. The company is
confident it will achieve $300 million in pretax annual synergies by
the end of first quarter 2005.
-- $15 million after tax, or 7 cents per share, net charge associated
with the closure of other facilities.
-- $4 million, or 2 cents per share, after-tax net reduction in
depreciation resulting from an adjustment to the preliminary
purchase price allocation for the Willamette acquisition.
In addition, Weyerhaeuser incurred approximately $26 million in countervailing and anti-dumping duties, and related costs on Canadian softwood lumber the company imports into the United States. During 2002, the company incurred approximately $64 million in countervailing and anti-dumping duties, and related costs.
"We're delighted with how well our employees worked to bring two great companies together to create a strong foundation for the future," said Steven R. Rogel, chairman, president and chief executive officer. "During the fourth quarter, our Pulp and Paper, and Containerboard, Packaging and Recycling businesses produced improved operating results in difficult markets. Strong residential construction continues to drive excellent performance in our Real Estate business and demand for timber. Wood Products, however, continues to be a problem due to oversupplied markets and the uncertainty created by the Canadian softwood lumber issue.
"While the timing and strength of an economic recovery remains uncertain, Weyerhaeuser is well positioned to benefit from an economic recovery due to our efforts to reduce costs, rationalize production capacity, increase operating efficiency, and improve our service to customers," Rogel said.
Summary of fourth quarter financial highlights:
Millions (except per share data) 4Q 2002 4Q 2001 Change
Net earnings $126 ($15) $141
Earnings per share (EPS) $0.57 ($0.07) $0.64
Net earnings excluding unusual items $88 $5 $83
EPS excluding unusual items $0.41 $0.02 $0.39
Net sales $4,718 $3,398 $1,320
Summary of financial highlights for the full year:
Millions (except per share data) 2002 2001 Change
Net earnings $241 $354 ($113)
Earnings per share (EPS) $1.09 $1.61 ($0.52)
Net earnings excluding unusual items $296 $411 ($115)
EPS excluding unusual items $1.34 $1.87 ($0.53)
Net sales $18,521 $14,545 $3,976
SEGMENT RESULTS FOR FOURTH QUARTER 2002
(Contributions to Pretax Earnings)
Millions 4Q 2002 4Q 2001 Change
Timberlands $318 $109 $209
Wood Products ($75) ($107) $32
Pulp and Paper $86 ($3) $89
Containerboard, Packaging, Recycling $114 $59 $55
Real estate and related assets $81 $58 $23
Timberlands
4Q 2002 3Q 2002 Change
Contribution to earnings (millions) $318 $138 $180
Timberland dispositions and a stronger operating performance contributed to the increase from third quarter. Compared with the third quarter, domestic and export log prices were stable on higher volumes. Fourth quarter contributions include a pretax gain of $117 million from the previously announced sale of approximately 115,000 acres of Washington state timberlands. The purchase and sale agreement for the sale of an additional 100,000 acres of timberlands in Western Washington to a nonprofit trust announced in the first quarter 2002 has expired. Weyerhaeuser is discussing the potential sale of this property with several parties, including the trust, and expects to complete the sale this year.
The first quarter outlook for Timberlands earnings from operations is expected to be down from the fourth quarter due to slightly weaker prices in the West for domestic and export logs, and lower timberland dispositions.
Wood Products
4Q 2002 3Q 2002 Change
Contribution to earnings (millions) ($75) ($18) ($57)
Depressed prices and the effects of the countervailing and anti-dumping duties continued to affect the Wood Products segment during the fourth quarter. Results also include a year-to-date reduction of $13 million in depreciation resulting from an adjustment to the preliminary purchase price allocation for the Willamette acquisition. Excluding unusual items, including the depreciation adjustment, the fourth quarter loss was $51 million compared with a loss of $18 million for the third quarter.
As part of the company's focus on improving the efficiency of its softwood lumber operations, Weyerhaeuser previously announced the closure of three facilities, which will eliminate 368 million board feet of sawmill capacity and associated finishing operations when they close in the first quarter.
The first quarter earnings outlook for Wood Products remains very uncertain due to continued oversupply in the market. Based on current prices, the company would expect losses from operations in the Wood Products segment in the first quarter to be consistent with the fourth quarter. Weyerhaeuser continues to work with the U.S. and Canadian governments in an attempt to develop a long-term solution on the softwood lumber issue. The company believes government and industry officials from both sides are making a good faith effort to reach a solution.
Pulp and Paper
4Q 2002 3Q 2002 Change
Contribution to earnings (millions) $86 $10 $76
Fourth quarter earnings were up from the third quarter primarily due to higher prices for uncoated freesheet products, significantly increased pulp shipments and the insurance recovery for business interruption costs at the Plymouth, N.C., mill. These increases, however, were partially offset by seasonally lower shipments of uncoated freesheet and a year-to-date increase in depreciation of $19 million resulting from an adjustment to the preliminary purchase price allocation for the Willamette acquisition.
After adjusting fourth quarter results for the insurance recovery of $40 million, first quarter earnings are expected to be similar to fourth quarter levels. Uncoated freesheet markets are anticipated to remain steady while the company expects improvement in pulp prices to be offset by lower shipments.
Containerboard, Packaging and Recycling
4Q 2002 3Q 2002 Change
Contribution to earnings (millions) $114 $88 $26
Increased earnings between the third and fourth quarters were primarily due to lower costs for recycled fiber used in the production of containerboard, higher box prices and a decrease in year-to-date depreciation of $14 million resulting from an adjustment to the preliminary purchase price allocation for the Willamette acquisition. Partially offsetting these increases were seasonally lower box shipments, 35,000 tons of market-related downtime and $14 million in pretax charges associated with previously announced plant closures.
As part of the company's focus on rationalizing its containerboard production, Weyerhaeuser previously announced the closure of the Sturgeon Falls, Ontario, containerboard mill during the fourth quarter which will eliminate approximately 100,000 tons of production.
First quarter operating earnings are expected to be lower than fourth quarter earnings due to higher anticipated levels of maintenance and market-related downtime, currently planned to be approximately 140,000 tons. Market conditions are expected to remain relatively stable.
Real estate and related assets
4Q 2002 3Q 2002 Change
Contribution to earnings (millions) $81 $85 ($4)
The fourth quarter results are primarily from sales of single family homes, while third quarter earnings included a $14 million gain from the sale of an apartment complex. The improved earnings in the fourth quarter from sales of single family homes resulted from higher closings and margins.
First quarter earnings are expected to be unchanged from the fourth quarter.
Other
Pension Fund -- During 2002, Weyerhaeuser recognized non-cash pension income of $107 million after tax associated with its qualified defined benefit plans in the United States and Canada. In 2003, Weyerhaeuser expects to incur a non-cash $20 million after tax charge. This change is due to the poor performance of the financial markets, changes in pension fund benefits, a lower assumed rate of return on future earnings of the pension funds, lower discount rates on fund liabilities in the United States and Canada, and changes in assumptions on previously unamortized pension fund gains. These non-cash benefits and charges will be allocated as follows:
Business Segment 2002 Income 2003 Charge
(Actual) (Estimated)
Timberlands 6% 2%
Wood Products 38% 61%
Pulp and Paper 31% 33%
Containerboard, Packaging and Recycling 14% 0%
Real Estate and related assets 3% 0%
Corporate 8% 4%
Total 100% 100%
Weyerhaeuser also recorded a $110 million non-cash charge to Shareholders' Interest in 2002 for additional minimum pension liability adjustments, primarily related to Canadian pension plans.
Weyerhaeuser anticipates it will not be required to make a cash contribution to its U.S. pension fund in 2003. The company expects to contribute approximately $13 million in cash to its Canadian fund.
Debt -- At year-end, total debt for Weyerhaeuser Company, excluding Real Estate and related assets, was $12.7 billion compared with $13.2 billion at the end of the third quarter. Total debt, including Real Estate and related assets, was $13.6 billion compared with $14.2 billion at the end of the third quarter. The company remains on target to achieve its debt reduction goals.
Capital Spending -- Capital spending was $960 million in 2002 and is expected to be approximately $750 million in 2003.
The company will hold a conference call at 8 a.m. PST (11 a.m. EST) on Jan. 22 to discuss the fourth quarter results.
To access the conference call, listeners calling from within North America should dial 1-888-789-0089 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-416-695-5259. Replays of the call will be available for 48 hours following completion of the call and can be accessed at 1-888-509-0082 within North America and at 1-416-695-9731 from outside North America.
The call may also be accessed through Weyerhaeuser's Internet site at http://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 2002, sales were $18.5 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/.
This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "believes," "should," "approximately," anticipates," "estimates," and "plans," and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expected synergies from the Willamette acquisition, expected earnings and performance of the company's business segments during the first quarter, expected pension expenses and cash contributions, anticipated debt reduction, anticipated capital spending and expected timberland sales. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts; market demand for the company's products, which may be tied to the relative strength of various U.S. business segments; performance of the company's manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; the company's ability to successfully integrate and manage acquired businesses and to realize anticipated cost savings and synergies from this acquisition; the ability of acquired businesses to perform in accordance with the company's expectations; legal proceedings; performance of pension fund assets; and uncertainties related to execution of timberland sale agreements. 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.
CONTACT: press, Bruce Amundson, +1-253-924-3047, or analysts, Kathryn McAuley, +1-253-924-2058, both of Weyerhaeuser Company.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS (A) Q1 Q2
(in millions) March 31, April 1, June 30, July 1,
2002 2001 2002 2001
Net sales and revenues:
Weyerhaeuser (B) $3,595 $3,219 $4,501 $3,471
Real estate and related assets 396 334 421 371
Total net sales and revenues 3,991 3,553 4,922 3,842
Costs and expenses:
Weyerhaeuser:
Costs of products sold 2,831 2,492 3,519 2,644
Depreciation, amortization
and fee stumpage © 264 211 311 214
Selling expenses 103 91 116 100
General and
administrative expenses 186 171 231 182
Research and development expenses 12 13 13 14
Taxes other than
payroll and income taxes 38 37 53 38
Other operating costs
(income) net (D)(E)(F) 4 32 (27) 21
Charges for integration
of facilities 2 9 23 10
Charges for closure
of facilities (G) (H) 27 -- 28 --
3,467 3,056 4,267 3,223
Real estate and related assets:
Costs and operating expenses 291 243 317 280
Depreciation and amortization 2 1 1 2
Selling expenses 21 19 24 19
General and
administrative expenses 10 13 11 13
Taxes other than
payroll and income taxes 1 2 1 1
Other operating costs, net (8) (1) 2 (1)
317 277 356 314
Total costs and expenses 3,784 3,333 4,623 3,537
Operating income 207 220 299 305
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (I) (178) (88) (222) (87)
Less interest capitalized 4 4 16 6
Equity in income
(loss) of affiliates (4) 15 (2) 15
Interest income and other 5 6 6 4
Real estate and related assets:
Interest expense incurred (13) (19) (13) (18)
Less interest capitalized 13 16 13 17
Equity in income of
unconsolidated entities 6 14 6 3
Interest income and other 6 2 8 3
Earnings before income taxes 46 170 111 248
Income taxes (J) (16) (63) (39) (77)
Net earnings $30 $107 $72 $171
Per share:
Basic net earnings $0.14 $0.49 $0.32 $0.78
Diluted net earnings $0.14 $0.49 $0.32 $0.78
Dividends paid $0.40 $0.40 $0.40 $0.40
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS (A) Q3 Q4
(in millions) Sept. 29, Sept. 30, Dec. 29, Dec. 30,
2002 2001 2002 2001
Net sales and revenues:
Weyerhaeuser (B) $4,422 $3,360 $4,253 $3,034
Real estate and related assets 468 392 465 364
Total net sales and revenues 4,890 3,752 4,718 3,398
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,576 2,659 3,285 2,488
Depreciation, amortization
and fee stumpage © 304 223 335 221
Selling expenses 116 95 115 94
General and
administrative expenses 201 148 229 162
Research and development expenses 11 11 16 17
Taxes other than
payroll and income taxes 48 38 39 35
Other operating costs
(income), net (D) (E) (F) 19 24 (135) (9)
Charges for integration
of facilities 17 4 30 (2)
Charges for closure
of facilities (G) (H) -- 32 40 32
4,292 3,234 3,954 3,038
Real estate and related assets:
Costs and operating expenses 359 301 359 284
Depreciation and amortization 1 2 7 2
Selling expenses 23 23 22 20
General and
administrative expenses 14 4 13 12
Taxes other than payroll
and income taxes 1 1 1 1
Other operating costs, net 6 (2) (1) (2)
404 329 401 317
Total costs and expenses 4,696 3,563 4,355 3,355
Operating income 194 189 363 43
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (I) (214) (93) (207) (90)
Less interest capitalized 16 6 14 3
Equity in income
(loss) of affiliates (6) 5 (1) (2)
Interest income and other 9 4 8 9
Real estate and related assets:
Interest expense incurred (12) (17) (15) (14)
Less interest capitalized 12 16 15 14
Equity in income of
unconsolidated entities 10 4 9 6
Interest income and other 11 8 8 7
Earnings before income taxes 20 122 194 (24)
Income taxes (J) (7) (31) (68) 9
Net earnings $13 $91 $126 $(15)
Per share:
Basic net earnings $0.06 $0.41 $0.57 ($0.07)
Diluted net earnings $0.06 $0.41 $0.57 ($0.07)
Dividends paid $0.40 $0.40 $0.40 $0.40
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS (A) Year ended
(in millions) Dec. 29, Dec. 30,
2002 2001
Net sales and revenues:
Weyerhaeuser (B) $16,771 $13,084
Real estate and related assets 1,750 1,461
Total net sales and revenues 18,521 14,545
Costs and expenses:
Weyerhaeuser:
Costs of products sold 13,211 10,283
Depreciation, amortization
and fee stumpage © 1,214 869
Selling expenses 450 380
General and administrative expenses 847 663
Research and development expenses 52 55
Taxes other than payroll and income taxes 178 148
Other operating costs
(income), net (D) (E) (F) (139) 68
Charges for integration of facilities 72 21
Charges for closure of facilities (G) (H) 95 64
15,980 12,551
Real estate and related assets:
Costs and operating expenses 1,326 1,108
Depreciation and amortization 11 7
Selling expenses 90 81
General and administrative expenses 48 42
Taxes other than payroll and income taxes 4 5
Other operating costs, net (1) (6)
1,478 1,237
Total costs and expenses 17,458 13,788
Operating income 1,063 757
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (I) (821) (358)
Less interest capitalized 50 19
Equity in income (loss) of affiliates (13) 33
Interest income and other 28 23
Real estate and related assets:
Interest expense incurred (53) (68)
Less interest capitalized 53 63
Equity in income of unconsolidated entities 31 27
Interest income and other 33 20
Earnings before income taxes 371 516
Income taxes (J) (130) (162)
Net earnings $241 $354
Per share:
Basic net earnings $1.09 $1.61
Diluted net earnings $1.09 $1.61
Dividends paid $1.60 $1.60
(A) Certain reclassifications have been made to conform prior periods'
data with the current presentation.
(B) 2002 first quarter includes $13 million of charges for
countervailing and anti-dumping duties and related costs and a
credit of $18 million for the reversal of countervailing and
anti-dumping duties accrued in 2001. The 2002 second quarter
includes $7 million of charges for countervailing and anti-dumping
duties and related costs, a credit of $29 million for the reversal
of charges accrued in 2001 and a credit of $13 million for charges
accrued in the first quarter of 2002. The 2002 third quarter
includes charges of $31 million and the 2002 fourth quarter includes
charges of $26 million for countervailing and anti-dumping duties
and related costs. The year-to-date impact from countervailing and
anti-dumping duties and related costs is a net charge of
$17 million, including current year charges of $64 million, net of
$47 million of credits related to the reversal of charges accrued in
2001. 2001 includes charges for countervailing and anti-dumping
duties and related costs of $30 million and $20 million in the third
and fourth quarters respectively.
© 2001 includes $35 million of goodwill amortization through December.
Goodwill amortization ceased as of the beginning of 2002.
(D) 2002 includes $33 million in net foreign exchange gains. Gains of
$8 million and $27 million are included in the first and second
quarters, respectively. A loss of $16 million is included in the
third quarter and a gain of $14 million is included in the fourth
quarter. Net foreign exchange losses through the fourth quarter of
2001 were $12 million.
(E) 2002 fourth quarter includes a $117 million gain on the sale of
timberlands in Washington state.
(F) 2001 costs include $10 million for costs associated with Westwood
Shipping Line's transition to a new charter fleet, one-time costs of
$41 million associated with information systems outsourcing and
$21 million of additional costs to streamline and improve delivery
of internal support services. 2001 fourth quarter also includes an
$8 million benefit related to recovery of hardboard siding claims.
(G) 2002 includes $27 million for first quarter costs associated with
the closure of three facilities, $28 million for second quarter
costs associated with the closure, or impending closure, of four
additional facilities and $40 million for fourth quarter costs
associated with the closure of three additional facilities, the
outsourcing of Canadian logging operations and adjustments to prior
closure costs.
(H) 2001 includes $32 million for third quarter costs associated with
machine closures at Springfield, Ore., and Longview, Wash. and
$32 million for fourth quarter charges associated with the closure
of three North American wood products facilities.
(I) 2002 first quarter includes a $35 million charge to write off debt
issue costs in connection with the refinancing of debt in connection
with the acquisition of Willamette Industries.
(J) 2001 year-to-date includes $29 million in benefits reflecting
one-time reductions in deferred taxes. This includes a $14 million
benefit due to a lower British Columbia provincial corporate tax
rate that was enacted during the third quarter and a $15 million
benefit due to a lower Canadian corporate tax rate that was enacted
during the second quarter.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Q1 Q2
March 31, April 1, June 30, July 1,
2002 2001 2002 2001
Timberlands:
Raw materials
(logs, timber and chips) $144 $175 $186 $155
Other products 44 37 49 39
188 212 235 194
Wood products:
Softwood lumber 692 605 901 783
Softwood plywood and veneer 135 102 173 125
Oriented strand board, composite
and other panels 240 159 320 195
Hardwood lumber 76 78 81 75
Engineered lumber products 253 218 315 309
Raw materials
(logs, timber and chips) 106 112 129 118
Other products 199 165 228 205
1,701 1,439 2,147 1,810
Pulp and Paper:
Pulp 280 321 297 277
Paper 416 287 563 246
Coated groundwood 30 35 30 35
Bleached paperboard 40 50 51 45
Other products 6 18 10 6
772 711 951 609
Containerboard, Packaging and Recycling:
Containerboard 73 92 90 87
Packaging 731 618 899 634
Recycling 48 63 51 57
Other products 47 43 90 39
899 816 1,130 817
Real estate and related assets 396 334 421 371
Corporate and other 35 41 38 41
$3,991 $3,553 $4,922 $3,842
Earnings before interest
expense and income taxes (A) Q1 Q2
(in millions) March 31, April 1, June 30, July 1,
2002 2001 2002 2001
Timberlands (B) $119 $134 $175 $137
Wood products © (D) (E) 9 (26) 64 102
Pulp and Paper (F) (G) 1 73 (15) 27
Containerboard Packaging and
Recycling (H) (I) 58 94 75 68
Real estate and related assets (J) 91 69 79 62
Corporate and other (K) (L) (M) (58) (90) (61) (67)
$220 $254 $317 $329
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Q3 Q4
Sept. 29, Sept. 30, Dec. 29, Dec. 30,
2002 2001 2002 2001
Timberlands:
Raw materials
(logs, timber and chips) $196 $140 $256 $147
Other products 138 44 107 48
334 184 363 195
Wood products:
Softwood lumber 845 743 748 620
Softwood plywood and veneer 169 124 157 105
Oriented strand board, composite
and other panels 217 210 251 177
Hardwood lumber 72 70 77 69
Engineered lumber products 324 299 256 244
Raw materials
(logs, timber and chips) 120 107 117 96
Other products 210 198 181 182
1,957 1,751 1,787 1,493
Pulp and Paper:
Pulp 300 261 319 275
Paper 590 266 594 238
Coated groundwood 32 45 34 33
Bleached paperboard 37 55 51 48
Other products 8 10 10 8
967 637 1,008 602
Containerboard, Packaging and Recycling:
Containerboard 101 88 86 79
Packaging 877 588 831 545
Recycling 67 43 63 49
Other products 82 36 76 35
1,127 755 1,056 708
Real estate and related assets 468 392 465 364
Corporate and other 37 33 39 36
$4,890 $3,752 $4,718 $3,398
Earnings before interest
expense and income taxes (A) Q3 Q4
(in millions) Sept. 29, Sept. 30, Dec. 29, Dec. 30,
2002 2001 2002 2001
Timberlands (B) $138 $107 $318 $109
Wood products © (D) (E) (18) 47 (75) (107)
Pulp and Paper (F) (G) 10 (28) 86 (3)
Containerboard Packaging and
Recycling (H) (I) 88 69 114 59
Real estate and related assets (J) 85 75 81 58
Corporate and other (K) (L) (M) (85) (61) (137) (54)
$218 $209 $387 $62
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Year ended
Dec. 29, Dec. 30,
2002 2001
Timberlands:
Raw materials (logs, timber and chips) $782 $617
Other products 338 168
1,120 785
Wood products:
Softwood lumber 3,186 2,751
Softwood plywood and veneer 634 456
Oriented strand board,
composite and other panels 1,028 741
Hardwood lumber 306 292
Engineered lumber products 1,148 1,070
Raw materials (logs, timber and chips) 472 433
Other products 818 750
7,592 6,493
Pulp and Paper:
Pulp 1,196 1,134
Paper 2,163 1,037
Coated groundwood 126 148
Bleached paperboard 179 198
Other products 34 42
3,698 2,559
Containerboard, Packaging and Recycling:
Containerboard 350 346
Packaging 3,338 2,385
Recycling 229 212
Other products 295 153
4,212 3,096
Real estate and related assets 1,750 1,461
Corporate and other 149 151
$18,521 $14,545
Earnings before interest
expense and income taxes (A) Year ended
(in millions) Dec. 29, Dec. 30,
2002 2001
Timberlands (B) $750 $487
Wood products © (D) (E) (20) 16
Pulp and Paper (F) (G) 82 69
Containerboard Packaging and
Recycling (H) (I) 335 290
Real estate and related assets (J) 336 264
Corporate and other (K) (L) (M) (341) (272)
$1,142 $854
(A) Certain reclassifications have been made to conform prior periods'
data with the current presentation.
(B) 2002 fourth quarter includes a $117 million gain on the sale of
timberlands in Washington state.
© 2002 first quarter includes $13 million of charges for
countervailing and anti-dumping duties and related costs and a
credit of $18 million for the reversal of countervailing and
anti-dumping duties accrued in 2001. The 2002 second quarter
includes $7 million of charges for countervailing and anti-dumping
duties and related costs, a credit of $29 million for the reversal
of charges accrued in 2001 and a credit of $13 million for charges
accrued in the first quarter of 2002. The 2002 third quarter
includes charges of $31 million and the 2002 fourth quarter includes
charges of $26 million for countervailing and anti-dumping duties
and related costs. The year-to-date impact from countervailing and
anti-dumping duties and related costs is a net charge of
$17 million, including current year charges of $64 million, net of
$47 million of credits related to the reversal of charges accrued in
2001. 2001 includes charges for countervailing and anti-dumping
duties and related costs of $30 million and $20 million in the third
and fourth quarters respectively.
(D) 2002 includes $17 million in first quarter costs associated with the
permanent closure of an oriented strand board facility in Canada and
$34 million in fourth quarter charges associated with the closure of
two additional wood products facilities and the outsourcing of
Canadian logging operations.
(E) 2001 includes $32 million for fourth quarter charges associated with
the closure of three North American wood products facilities.
(F) 2002 year-to-date includes $12 million in net business disruption
costs associated with the recovery boiler explosion at the Plymouth,
N.C., paper facility. Costs of $22 million and $30 million are
included in the second and third quarters, respectively. Net
recoveries of $40 million are included in the fourth quarter.
(G) 2001 results include $19 million of third quarter costs associated
with a machine closure at Longview, Wash. 2002 fourth quarter
results include an $8 million benefit resulting from adjustments to
these 2001 closure charges.
(H) 2002 year-to-date results include $52 million in costs associated
with the closure, or impending closure of seven facilities,
including $10 million of first quarter costs, $28 million of second
quarter costs and $14 million of fourth quarter costs.
(I) 2001 results include $13 million of third quarter costs associated
with a machine closure at Springfield, Ore.
(J) 2002 includes $21 million in gains from sales of apartment
complexes, including $7 million in the second quarter and
$14 million in the third quarter.
(K) 2002 results include a $35 million charge in the fourth quarter for
the termination of the former MacMillan Bloedel pension plan for
U.S. employees.
(L) 2002 results for corporate and other include net foreign exchange
gains (losses) of $20 million in the second quarter, ($17 million)
in the third quarter and $1 million in the fourth quarter, for a
year-to-date net gain of $4 million. These gains and losses result
primarily from fluctuations in Canadian exchange rates.
2001 results for corporate and other include net foreign exchange
gains (losses) of ($2 million) in the first quarter, $7 million in
the second quarter, ($11 million) in the third quarter and
($6 million) in the fourth quarter, for a year-to-date net loss of
$12 million, resulting primarily from fluctuations in Canadian
exchange rates.
(M) 2001 year-to-date costs include one-time costs of $41 million
associated with information systems outsourcing, $21 million of
additional costs to streamline and improve delivery of internal
support services and includes $10 million incurred in the second
quarter for costs associated with Westwood Shipping Line's
transition to a new charter fleet.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes: Q1 Q2
March 31, April 1, June 30, July 1,
2002 2001 2002 2001
Timberlands (millions):
Raw materials - cubic feet 71 82 105 75
Wood products (millions):
Softwood lumber - board feet 1,812 1,667 2,295 1,792
Softwood plywood and veneer
- square feet (3/8") 575 449 750 491
Composite panels
- square feet (3/4") 308 63 445 59
Oriented strand board
- square feet (3/8") 945 871 1,095 916
Hardwood lumber - board feet 108 106 113 106
Raw materials - cubic feet 143 163 164 150
Pulp and paper (thousands):
Pulp - air-dry metric tons 563 480 618 507
Paper - tons 546 348 717 307
Coated groundwood - tons 48 45 49 48
Bleached paperboard - tons 53 60 61 56
Containerboard, packaging and recycling (thousands)
Containerboard - tons 209 218 260 222
Packaging - MSF 14,540 12,690 18,446 11,856
Recycling - tons 604 826 552 817
Total production volumes: Q1 Q2
March 31, April 1, June 30, July 1,
2002 2001 2002 2001
Timberlands (millions):
Logs - cubic feet 153 132 191 131
Wood products (millions):
Softwood lumber - board feet 1,530 1,406 1,702 1,422
Softwood plywood and veneer
- square feet (3/8") 431 285 562 278
Composite panels
- square feet (3/4") 218 29 183 25
Oriented strand board
- square feet (3/8") 957 783 944 833
Hardwood lumber - board feet 96 111 99 109
Logs - cubic feet 185 174 187 137
Pulp and paper (thousands):
Pulp - air-dry metric tons 607 549 492 448
Paper - tons 510 345 667 289
Coated groundwood - tons 48 55 60 50
Paperboard - tons 63 52 67 61
Containerboard, packaging and recycling (thousands)
Containerboard - tons 1,250 875 1,600 776
Packaging - MSF 16,281 13,355 20,630 13,432
Recycling - tons 1,258 1,192 1,286 1,181
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes: Q3 Q4
Sept. 29, Sept. 30, Dec. 29, Dec. 30,
2002 2001 2002 2001
Timberlands (millions):
Raw materials - cubic feet 97 76 113 68
Wood products (millions):
Softwood lumber - board feet 2,362 1,943 2,154 1,801
Softwood plywood and veneer
- square feet (3/8") 736 494 625 463
Composite panels
- square feet (3/4") 95 61 299 70
Oriented strand board
- square feet (3/8") 1,117 964 1,048 987
Hardwood lumber - board feet 104 99 102 102
Raw materials - cubic feet 161 111 127 125
Pulp and paper (thousands):
Pulp - air-dry metric tons 561 527 636 599
Paper - tons 749 342 730 304
Coated groundwood - tons 55 64 58 49
Bleached paperboard - tons 47 66 68 61
Containerboard, packaging and recycling (thousands)
Containerboard - tons 283 223 231 220
Packaging - MSF 17,902 13,319 16,249 11,668
Recycling - tons 539 548 597 646
Total production volumes: Q3 Q4
Sept. 29, Sept. 30, Dec. 29, Dec. 30,
2002 2001 2002 2001
Timberlands (millions):
Logs - cubic feet 164 129 155 125
Wood products (millions):
Softwood lumber - board feet 1,728 1,315 1,871 1,192
Softwood plywood and veneer
- square feet (3/8") 584 275 701 261
Composite panels
- square feet (3/4") 235 21 228 18
Oriented strand board
- square feet (3/8") 1,115 912 1,033 915
Hardwood lumber - board feet 107 99 104 91
Logs - cubic feet 204 166 218 171
Pulp and paper (thousands):
Pulp - air-dry metric tons 630 553 552 590
Paper - tons 704 300 730 310
Coated groundwood - tons 43 57 59 49
Paperboard - tons 31 69 66 58
Containerboard, packaging and recycling (thousands)
Containerboard - tons 1,621 1,065 1,533 983
Packaging - MSF 20,432 13,077 20,563 12,338
Recycling - tons 1,252 1,210 1,288 1,143
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes: Year ended
Dec. 29, Dec. 30,
2002 2001
Timberlands (millions):
Raw materials - cubic feet 386 301
Wood products (millions):
Softwood lumber - board feet 8,623 7,203
Softwood plywood and veneer
- square feet (3/8") 2,686 1,897
Composite panels - square feet (3/4") 1,147 253
Oriented strand board - square feet (3/8") 4,205 3,738
Hardwood lumber - board feet 427 413
Raw materials - cubic feet 595 549
Pulp and paper (thousands):
Pulp - air-dry metric tons 2,378 2,113
Paper - tons 2,742 1,301
Coated groundwood - tons 210 206
Bleached paperboard - tons 229 243
Containerboard, packaging and recycling (thousands)
Containerboard - tons 983 883
Packaging - MSF 67,137 49,533
Recycling - tons 2,292 2,837
Total production volumes: Year ended
Dec. 29, Dec. 30,
2002 2001
Timberlands (millions):
Logs - cubic feet 663 517
Wood products (millions):
Softwood lumber - board feet 6,831 5,335
Softwood plywood and veneer
- square feet (3/8") 2,278 1,099
Composite panels - square feet (3/4") 864 93
Oriented strand board - square feet (3/8") 4,049 3,443
Hardwood lumber - board feet 406 410
Logs - cubic feet 794 648
Pulp and paper (thousands):
Pulp - air-dry metric tons 2,281 2,140
Paper - tons 2,611 1,244
Coated groundwood - tons 210 211
Paperboard - tons 227 240
Containerboard, packaging and recycling (thousands)
Containerboard - tons 6,004 3,699
Packaging - MSF 77,906 52,202
Recycling - tons 5,084 4,726
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March 31, June 30, Sept. 29, Dec. 29, Dec. 31,
Assets 2002 2002 2002 2002 2001
Weyerhaeuser
Current assets:
Cash and
short-term
investments $127 $141 $119 $115 $202
Receivables,
less allowances 1,599 1,649 1,604 1,413 1,024
Inventories 2,072 2,012 1,951 1,941 1,428
Prepaid expenses 509 550 485 412 407
Total current assets 4,307 4,352 4,159 3,881 3,061
Property and equipment 12,454 12,362 12,235 12,426 8,309
Construction in progress 1,169 1,360 1,338 686 428
Timber and timberlands
at cost, less fee
stumpage charged
to disposals 4,457 4,472 4,436 4,401 1,789
Investments in
and advances to
equity affiliates 542 547 541 578 541
Goodwill 2,741 2,778 2,812 3,042 1,095
Deferred pension
and other assets 1,170 1,239 1,239 1,285 1,053
26,840 27,110 26,760 26,299 16,276
Real estate
and related assets 2,078 2,100 2,035 1,970 2,017
Total assets $28,918 $29,210 $28,795 $28,269 $18,293
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and
commercial paper $260 $110 $231 $2 $4
Current maturities
of long-term debt 214 368 791 786 8
Accounts payable 1,072 1,125 1,059 983 809
Accrued liabilities 1,177 1,320 1,189 1,223 1,042
Total current
liabilities 2,723 2,923 3,270 2,994 1,863
Long-term debt 12,927 12,779 12,224 11,907 5,095
Deferred income taxes,
pension, other
postretirement
benefits and
other liabilities 5,274 5,326 5,307 5,398 3,254
20,924 21,028 20,801 20,299 10,212
Real estate and related assets
Notes payable
and commercial paper 262 357 80 63 358
Long-term debt 596 576 856 814 620
Other liabilities 451 467 432 472 408
1,309 1,400 1,368 1,349 1,386
Total liabilities 22,233 22,428 22,169 21,648 11,598
Shareholders' interest 6,685 6,782 6,626 6,621 6,695
Total liabilities
and shareholders'
interest $28,918 $29,210 $28,795 $28,269 $18,293
SOURCE: Weyerhaeuser Company Limited
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/