Newsroom
Weyerhaeuser Reports Second Quarter Net Earnings of $157 Million; Achieves Synergy Goal from Willamette Acquisition
PRNewswire
FEDERAL WAY, Wash.
Jul 25, 2003
Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $157 million, or 71 cents per share, on net sales of $4.9 billion. This compares with $72 million, or 32 cents per share, on net sales of $4.9 billion for the second quarter of 2002.
Second quarter 2003 earnings include the following after-tax items:
-- A charge of $19 million, or 8 cents per share, for closure or impending
sale of facilities;
-- A charge of $17 million, or 8 cents per share, for integration and
restructuring activities;
-- A gain of $95 million, or 43 cents per share, for the sale of
timberlands in Western Washington;
-- A gain of $7 million, or 3 cents per share, for the settlement of an
insurance claim relating to the company's Cemwood litigation.
Second quarter 2002 earnings include the following after-tax items:
-- A charge of $18 million, or 8 cents per share, for closure or impending
closure of facilities;
-- A charge of $17 million, or 8 cents per share, for integration and
restructuring activities;
-- A gain of $19 million, or 9 cents per share, for the reversal of a
countervailing duty accrual.
The company also announced that it has achieved its annualized run rate goal of $300 million in pre-tax synergies related to the acquisition of Willamette Industries. Weyerhaeuser originally estimated it would reach this synergy goal by first quarter 2005.
Other significant second quarter financial matters include:
-- Reduced total company debt, which includes Real Estate and related
operations, to approximately $13.6 billion at the end of the quarter.
This is a reduction of approximately $334 million from the prior
quarter.
-- Maintained capital spending discipline. Capital spending, excluding
acquisitions and Real Estate and related operations, for the first six
months was approximately $319 million, in line with the annual goal of
$750 million.
-- Incurred approximately $26 million in countervailing and anti-dumping
duties and related costs in the second quarter on Canadian softwood
lumber the company imports into the United States compared with the
$24 million Weyerhaeuser incurred in the first quarter.
"Our ability to achieve our synergy goal more than one year ahead of schedule, despite challenging market conditions, is a tribute to our employees," said Steven R. Rogel, chairman, president and chief executive officer. "They have embraced the concept of increased frugality and have made substantial progress in improving the overall efficiency of our manufacturing systems. Through their hard work, we are positioned to take advantage of future improvements in the economy.
"Late in the second quarter we saw some promising signs in the prices for wood products, a trend that should continue into the third quarter," Rogel said. "Unfortunately, the markets for pulp, uncoated free sheet and containerboard are expected to remain challenging."
SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 2Q 2003 2Q 2002 Change
Net earnings $157 $72 $85
Earnings per share $0.71 $0.32 $0.39
Net sales $4,930 $4,922 $8
SEGMENT RESULTS FOR SECOND QUARTER 2003
(Contributions to Pre-Tax Earnings)
Millions 2Q 2003 2Q 2002 Change
Timberlands $300 $162 $138
Wood Products ($53) $64 ($117)
Pulp and Paper ($7) ($15) $8
Containerboard, Packaging
and Recycling $108 $75 $33
Real estate and related assets $91 $79 $12
TIMBERLANDS
2Q 2003 1Q 2003 Change
Contribution to earnings (millions) $300 $149 $151
Excluding a pre-tax gain of $144 million from the sale of timberlands in Western Washington to Hancock Timber Resources, second quarter earnings were up slightly from the first quarter due to increased log sales volumes in the West in both export and domestic markets on somewhat lower prices. In the South, slightly higher prices partially offset lower harvest volumes due to weather conditions.
Third quarter harvest results are expected to be lower than second quarter due to normal reductions in harvest levels during the fire season, which is expected to result in slightly lower earnings in the segment.
WOOD PRODUCTS
2Q 2003 1Q 2003 Change
Contribution (charge)
to earnings (millions) ($53) ($150) $97
Excluding a $79 million pre-tax first quarter charge taken for damages awarded by a jury on April 18 in U.S. District Court in Oregon, operating losses in the second quarter were lower than first quarter. The improvement was due to significantly stronger prices late in the quarter for oriented strand board and plywood. Market conditions for structural softwood lumber also improved late in the quarter, leading to stronger prices and higher sales volumes. The improvements were offset by higher costs in the company's Canadian operations associated with the strengthening Canadian dollar. Wood Products recognized pre-tax charges of $24 million in the first quarter and $29 million in the second quarter for integration and restructuring, and closure or impending sale of facilities.
Third quarter results for Wood Products are expected to be better than second quarter due primarily to the continued strength in the wood products markets. Weyerhaeuser will continue to be adversely affected by countervailing and anti-dumping duties, and related costs on Canadian softwood lumber the company imports into the United States.
PULP AND PAPER
2Q 2003 1Q 2003 Change
Contribution (charge)
to earnings (millions) ($7) $10 ($17)
Pulp prices benefited from the weaker U.S. dollar, but the benefits from this increase were more than offset by a decrease in fine paper prices. Weyerhaeuser took approximately 60,000 tons of combined market and annual maintenance downtime during the second quarter. Costs associated with the downtime and higher costs in the company's Canadian operations associated with the strengthening Canadian dollar negatively affected the second quarter performance. In addition, the second quarter earnings include charges of approximately $10 million for an impending facility closure and costs associated with work force reductions. First quarter earnings included integration and restructuring costs of $6 million.
Third quarter earnings are expected to be lower than second quarter due to weak demand for pulp and fine paper.
CONTAINERBOARD, PACKAGING AND RECYCLING
2Q 2003 1Q 2003 Change
Contribution to earnings (millions) $108 $80 $28
A seasonal increase in the demand for packaging resulted in higher second quarter earnings compared with first quarter results. This increase was partially offset by lower prices for corrugated boxes and higher costs for old corrugated containers, commonly referred to as OCC. During the quarter, Weyerhaeuser took 70,000 tons of market and maintenance downtime.
Third quarter earnings are expected to be lower than second quarter due to continued weak markets.
REAL ESTATE AND RELATED ASSETS
2Q 2003 1Q 2003 Change
Contribution to earnings (millions) $91 $95 ($4)
The business benefited from the continued strong housing market and a $12 million pre-tax gain on a commercial property sale in Southern California in the second quarter. First quarter earnings included a pre-tax gain of $18 million for the sale of an apartment complex and two office buildings.
Third quarter earnings are expected to be higher than second quarter due to increased closings of single-family homes. The company currently has a backlog of more than six months of homes sold, but not closed.
OTHER
The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 25 to discuss the second quarter results.
To access the conference call, listeners calling from within North America should dial 1-877-888-3490 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-416-695-9757. Replays of the call will be available for 48 hours following completion of the live call and can be accessed at 1-866-518-1010 within North America and at 1-416-252-1143 from outside North America.
The call may also be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link.
Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2002, sales were $29.1 billion ($18.5 billion US). It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Weyerhaeuser Company Limited, a wholly owned subsidiary, has Exchangeable Shares listed on the Toronto Stock Exchange under the symbol WYL. Additional information about Weyerhaeuser's businesses, products and practices is available at 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, anticipated debt reduction and anticipated capital spending. 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; 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, +1-253-924-3047
Analysts - Kathryn McAuley, +1-253-924-2058
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS (1) Q1 Q2
(in millions) March 30, March 31, June 29, June 30,
2003 2002 2003 2002
Net sales and revenues:
Weyerhaeuser (2) $4,169 $3,595 $4,498 $4,501
Real estate and related assets 445 396 432 421
Total net sales and revenues 4,614 3,991 4,930 4,922
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,322 2,831 3,611 3,519
Depreciation, amortization
and fee stumpage 321 264 313 311
Selling expenses 107 103 111 116
General and administrative
expenses 231 186 232 231
Research and development
expenses 12 12 12 13
Taxes other than payroll and
income taxes 47 38 48 53
Charges for integration and
restructuring 29 2 25 23
Charges for closure of
facilities 22 27 12 28
Other operating costs, net (3)(4) 37 4 (205) (27)
4,128 3,467 4,159 4,267
Real estate and related assets:
Costs and operating expenses 330 291 316 317
Depreciation and amortization 3 2 2 1
Selling expenses 24 21 25 24
General and administrative
expenses 14 10 14 11
Taxes other than payroll and
income taxes 1 1 1 1
Other operating costs, net (7) (8) -- 2
365 317 358 356
Total costs and expenses 4,493 3,784 4,517 4,623
Operating income 121 207 413 299
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (5) (208) (178) (205) (222)
Less interest capitalized 5 4 6 16
Equity in income (loss) of
affiliates (5) (4) 3 (2)
Interest income and other 6 5 6 6
Real estate and related assets:
Interest expense incurred (14) (13) (13) (13)
Less interest capitalized 14 13 13 13
Equity in income of
unconsolidated entities 5 6 7 6
Interest income and other 11 6 8 8
Earnings before income taxes and
cumulative effect of a change
in accounting principle (65) 46 238 111
Income taxes 22 (16) (81) (39)
Earnings before cumulative effect
of a change in accounting principle (43) 30 157 72
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6 (6) (11) -- -- --
Net earnings (loss) $(54) $30 $157 $72
Basic and diluted net earnings (loss)
per share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $(0.19) $0.14 $0.71 $0.32
Cumulative effect of a change in
accounting principle (0.05) -- -- --
Net earnings (loss) $(0.24) $0.14 $0.71 $0.32
Dividends paid per share $0.40 $0.40 $0.40 $0.40
CONSOLIDATED EARNINGS(1) Q3 Q4 Year ended
(in millions) Sept. Sept. Dec. Dec. Dec. Dec.
28, 29, 28, 29, 28, 29,
2003 2002 2003 2002 2003 2002
Net sales and revenues:
Weyerhaeuser(2) $4,422 $4,253 $16,771
Real estate
and related assets 468 465 1,750
Total net sales and revenues 4,890 4,718 18,521
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,576 3,285 13,211
Depreciation, amortization
and fee stumpage 304 335 1,214
Selling expenses 116 115 450
General and administrative
expenses 201 229 847
Research and development
expenses 11 16 52
Taxes other than payroll
and income taxes 48 39 178
Charges for integration
and restructuring 17 30 72
Charges for closure of
facilities -- 40 95
Other operating
costs, net(3)(4) 19 (135) (139)
4,292 3,954 15,980
Real estate and related
assets:
Costs and operating
expenses 359 359 1,326
Depreciation and
amortization 1 7 11
Selling expenses 23 22 90
General and administrative
expenses 14 13 48
Taxes other than payroll
and income taxes 1 1 4
Other operating costs, net 6 (1) (1)
404 401 1,478
Total costs and expenses 4,696 4,355 17,458
Operating income 194 363 1,063
Interest expense and other:
Weyerhaeuser:
Interest expense incurred(5) (214) (207) (821)
Less interest capitalized 16 14 50
Equity in income (loss) of
affiliates (6) (1) (13)
Interest income and other 9 8 28
Real estate and related
assets:
Interest expense incurred (12) (15) (53)
Less interest capitalized 12 15 53
Equity in income of
unconsolidated entities 10 9 31
Interest income and other 11 8 33
Earnings before income taxes
and cumulative effect of a
change in accounting principle 20 194 371
Income taxes (7) (68) (130)
Earnings before cumulative
effect of a change in
accounting principle 13 126 241
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6(6) -- -- --
Net earnings (loss) $13 $126 $241
Basic and diluted net earnings
(loss) per share:
Net earnings (loss) before
cumulative effect of a
change in accounting
principle $0.06 $0.57 $1.09
Cumulative effect of a
change in accounting
principle -- -- --
Net earnings (loss) $0.06 $0.57 $1.09
Dividends paid per share $0.40 $0.40 $1.60
(1) Certain reclassifications have been made to conform prior period data with the current presentation.
(2) The first and second quarters of 2003 include charges of $24 million and $26 million, respectively, for countervailing and anti-dumping duties and related costs. 2002 first quarter includes $13 million of charges for countervailing and anti-dumping duties and related costs and a credit of $18 million for the reversal of countervailing and anti-dumping duties accrued in 2001. The 2002 second quarter includes $7 million of charges for countervailing and anti-dumping duties and related costs, a credit of $29 million for the reversal of charges accrued in 2001 and a credit of $13 million for charges accrued in the first quarter of 2002. The 2002 third and fourth quarters include charges of $31 million and $26 million, respectively, for countervailing and anti-dumping duties and related costs. The 2002 impact of countervailing and anti-dumping duties and related costs is a net charge of $17 million which includes current year charges of $64 million and $47 million of credits related to the reversal of charges accrued in 2001.
(3) 2003 first and second quarters include net foreign exchange gains of $35 million and $47 million, respectively. 2002 includes $33 million in net foreign exchange gains. Gains of $8 million, $27 million and $14 million are included in the first, second and fourth quarters, respectively. A loss of $16 million is included in the third quarter.
(4) The first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs. 2003 second quarter includes a $144 million gain on the sale of timberlands in Washington state and a $25 million gain for the settlement of an insurance claim relating to the Cemwood litigation. 2002 fourth quarter includes a $117 million gain on the sale of timberlands in Washington state.
(5) 2002 first quarter includes a $35 million charge to write off debt issue costs in connection with the refinancing of debt in connection with the acquisition of Willamette Industries.
(6) Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations, was adopted as of the beginning of 2003. Results for 2002 were not impacted by the change in accounting principle.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Q1 Q2
March 30, March 31, June 29, June 30,
2003 2002 2003 2002
Timberlands:
Raw materials (logs, timber
and chips) $203 $142 $213 $184
Other products 21 19 24 21
224 161 237 205
Wood Products:
Softwood lumber 752 692 846 901
Plywood and veneer 174 158 182 203
Oriented strand board, composite
and other panels 257 240 331 320
Hardwood lumber 80 76 86 81
Engineered lumber products 254 253 308 315
Raw materials (logs, timber and
chips) 81 106 82 129
Other products 174 176 221 198
1,772 1,701 2,056 2,147
Pulp and Paper:
Pulp 309 280 321 297
Paper 596 416 546 563
Coated groundwood 36 30 32 30
Bleached board 47 40 52 51
Other products 10 6 7 10
998 772 958 951
Containerboard, Packaging and
Recycling:
Containerboard 77 73 81 90
Packaging 879 758 922 935
Recycling 60 48 63 51
Bags 20 10 20 20
Other products 33 10 35 34
1,069 899 1,121 1,130
Real Estate and Related Assets 445 396 432 421
Corporate and Other 106 62 126 68
$4,614 $3,991 $4,930 $4,922
Contribution (charge) Q1 Q2
to earnings(1):
(in millions) March 30, March 31, June 29, June 30,
2003 2002 2003 2002
Timberlands(2) $149 $107 $300 $162
Wood Products(3)(4)(5) (150) 9 (53) 64
Pulp and Paper(6)(7) 10 1 (7) (15)
Containerboard, Packaging and
Recycling(8) 80 58 108 75
Real Estate and Related Assets(9) 95 91 91 79
Corporate and Other(10)(11)(12) (46) (46) (2) (48)
$138 $220 $437 $317
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in
millions): Q3 Q4 Year ended
Sept. Sept. Dec. Dec. Dec. Dec.
28, 29, 28, 29, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands:
Raw materials (logs, timber
and chips) $193 $254 $773
Other products 18 39 97
211 293 870
Wood Products:
Softwood lumber 845 748 3,186
Plywood and veneer 195 178 734
Oriented strand board,
composite and other panels 217 251 1,028
Hardwood lumber 72 77 306
Engineered lumber products 324 256 1,148
Raw materials (logs, timber
and chips) 120 117 472
Other products 184 160 718
1,957 1,787 7,592
Pulp and Paper:
Pulp 300 319 1,196
Paper 590 594 2,163
Coated groundwood 32 34 126
Bleached board 37 51 179
Other products 8 10 34
967 1,008 3,698
Containerboard, Packaging and
Recycling:
Containerboard 101 86 350
Packaging 909 864 3,466
Recycling 67 63 229
Bags 22 23 75
Other products 28 20 92
1,127 1,056 4,212
Real Estate and Related Assets 468 465 1,750
Corporate and Other 160 109 399
$4,890 $4,718 $18,521
Contribution (charge)
to earnings(1): Q3 Q4 Year ended
Sept. Sept. Dec. Dec. Dec. Dec.
(in millions) 28, 29, 28, 29, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands(2) $133 $300 $702
Wood Products(3)(4)(5) (18) (75) (20)
Pulp and Paper(6)(7) 10 86 82
Containerboard, Packaging and
Recycling(8) 88 114 335
Real Estate and Related Assets(9) 85 81 336
Corporate and Other(10)(11)(12) (80) (119) (293)
$218 $387 $1,142
(1) Certain reclassifications have been made to conform prior period data with the current presentation.
(2) 2003 second quarter includes a $144 million gain on the sale of timberlands in Washington state. 2002 fourth quarter includes a $117 million gain on the sale of timberlands in Washington state.
(3) The first and second quarters of 2003 include charges of $24 million and $26 million, respectively, for countervailing and anti-dumping duties and related costs. 2002 first quarter includes $13 million of charges for countervailing and anti-dumping duties and related costs and a credit of $18 million for the reversal of countervailing and anti-dumping duties accrued in 2001. The 2002 second quarter includes $7 million of charges for countervailing and anti-dumping duties and related costs, a credit of $29 million for the reversal of charges accrued in 2001 and a credit of $13 million for charges accrued in the first quarter of 2002. The 2002 third and fourth quarters include charges of $31 million and $26 million, respectively, for countervailing and anti-dumping duties and related costs. The 2002 impact of countervailing and anti-dumping duties and related costs is a net charge of $17 million which includes current year charges of $64 million and $47 million of credits related to the reversal of charges accrued in 2001.
(4) The first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs.
(5) 2003 first and second quarters include costs for the closure of facilities of $22 million and $11 million, respectively. 2003 second quarter also includes a charge of $16 million to recognize impairment associated with an impending facility sale. 2002 includes closure costs of $51 million ($17 million in the first quarter and $34 million in the fourth quarter).
(6) 2002 includes $12 million in net business disruption costs associated with the recovery boiler explosion at the Plymouth, N.C., paper facility. Costs of $22 million and $30 million are included in the second and third quarters, respectively. Net recoveries of $40 million are included in the fourth quarter.
(7) 2003 second quarter includes $3 million of closure costs. 2002 fourth quarter results include an $8 million benefit resulting from adjustments to closure reserves established in 2001.
(8) 2003 second quarter includes the reversal of an accrual for closure charges of $2 million. 2002 includes closure costs of $52 million ($10 million in the first quarter, $28 million in the second quarter and $14 million in the fourth quarter).
(9) 2003 first quarter includes gains of $8 million for the sale of two office buildings and $10 for the sale of an apartment complex. 2003 second quarter includes a gain of $12 million for the sale of commercial property. 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.
(10) 2003 second quarter includes a $6 million charge to reflect the final settlement in connection with the termination of the former MacMillan Bloedel pension plan for U.S. employees. 2002 results include a $35 million charge in the fourth quarter related to the termination of this pension plan.
(11) 2003 second quarter includes a $25 million gain for the settlement of an insurance claim relating to the Cemwood litigation.
(12) 2003 results include net foreign exchange gains of $36 million in the first quarter and $45 million in the second quarter. 2002 results include net foreign exchange gains (losses) of $8 million in the first quarter, $27 million in the second quarter, ($17 million) in the third quarter and $14 million in the fourth quarter, for a 2002 net gain of $32 million. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes: Q1 Q2
March 30, March 31, June 29, June 30,
2003 2002 2003 2002
Timberlands (millions):
Raw materials - cubic feet 96 67 110 102
Wood Products (millions):
Softwood lumber -
board feet 2,175 1,81 2 2,385 2,219
Plywood and veneer -
square feet (3/8") 726 624 760 815
Composite panels -
square feet (3/4") 278 308 317 445
Oriented strand board -
square feet (3/8") 1,025 945 1,206 1,095
Hardwood lumber - board feet 106 108 113 113
Raw materials - cubic feet 128 143 118 164
Pulp and Paper (thousands):
Pulp - air-dry metric tons 623 563 596 618
Paper - tons 737 546 690 717
Coated groundwood - tons 61 48 55 49
Bleached board - tons 60 53 67 61
Paper converting - tons 502 375 472 488
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 221 209 233 260
Packaging - MSF 17,752 15,430 18,577 19,614
Recycling - tons 593 604 566 552
Bags - tons 25 13 24 26
Total production volumes: Q1 Q2
March 30, March 31, June 29, June 30,
2003 2002 2003 2002
Timberlands (millions):
Logs - cubic feet 182 153 152 191
Wood Products (millions):
Softwood lumber - board feet 1,842 1,530 1,825 1,702
Plywood and veneer -
square feet (3/8") 672 471 557 649
Composite panels -
square feet (3/4") 231 218 252 183
Oriented strand board -
square feet (3/8") 1,011 957 1,051 944
Hardwood lumber - board feet 108 96 102 99
Pulp and Paper (thousands):
Pulp - air-dry metric tons 654 607 619 492
Paper - tons 757 510 712 667
Coated groundwood - tons 62 48 55 60
Bleached board - tons 56 63 68 67
Paper converting - tons 516 353 479 496
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 1,429 1,250 1,568 1,600
Packaging - MSF 18,977 16,174 19,955 20,521
Recycling - tons 1,528 1,387 1,644 1,588
Bags - tons 25 13 25 25
Third party sales volumes: Q3 Q4 Year ended
Sept. Sept. Dec. Dec. Dec. Dec.
28, 29, 28, 29, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands (millions):
Raw materials - cubic feet 91 110 370
Wood Products (millions):
Softwood lumber - board feet 2,331 2,140 8,502
Plywood and veneer -
square feet (3/8") 792 672 2,903
Composite panels -
square feet (3/4") 95 299 1,147
Oriented strand board -
square feet (3/8") 1,117 1,048 4,205
Hardwood lumber - board feet 104 102 427
Raw materials - cubic feet 161 127 595
Pulp and Paper (thousands):
Pulp - air-dry metric tons 561 636 2,378
Paper - tons 749 730 2,742
Coated groundwood - tons 55 58 210
Bleached board - tons 47 68 229
Paper converting - tons 499 497 1,859
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 283 231 983
Packaging - MSF 19,007 17,643 71,694
Recycling - tons 539 597 2,292
Bags - tons 26 28 93
Total production volumes: Q3 Q4 Year ended
Sept. Sept. Dec. Dec. Dec. Dec.
28, 29, 28, 29, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands (millions):
Logs - cubic feet 164 155 663
Wood Products (millions):
Softwood lumber - board feet 1,728 1,871 6,831
Plywood and veneer -
square feet (3/8") 638 520 2,278
Composite panels -
square feet (3/4") 235 228 864
Oriented strand board -
square feet (3/8") 1,115 1,033 4,049
Hardwood lumber - board feet 107 104 406
Pulp and Paper (thousands):
Pulp - air-dry metric tons 630 552 2,281
Paper - tons 704 730 2,611
Coated groundwood - tons 43 59 210
Bleached board - tons 31 66 227
Paper converting - tons 502 493 1,844
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 1,621 1,533 6,004
Packaging - MSF 19,596 18,809 75,100
Recycling - tons 1,551 1,566 6,092
Bags - tons 27 28 93
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
Sept. Dec.
March 30, June 29, 28, 28, Dec. 29,
Assets 2003 2003 2003 2003 2002
Weyerhaeuser
Current assets:
Cash and short-term
investments $59 $47 $115
Receivables, less allowances 1,573 1,671 1,413
Inventories 2,167 2,093 1,941
Prepaid expenses 455 427 419
Total current assets 4,254 4,238 3,888
Property and equipment 12,228 12,274 12,278
Construction in progress 709 669 687
Timber and timberlands at cost,
less fee stumpage charged
to disposals 4,450 4,454 4,402
Investments in and advances to
equity affiliates 538 564 578
Goodwill 3,191 3,224 3,131
Deferred pension and other
assets 1,337 1,349 1,285
26,707 26,772 26,249
Real estate and related assets 1,989 2,065 1,970
Total assets $28,696 $28,837 $28,219
Liabilities and Shareholders'
Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial
paper $321 $238 $2
Current maturities of long-
term debt 595 594 786
Accounts payable 975 1,046 983
Accrued liabilities 1,162 1,192 1,223
Total current
liabilities 3,053 3,070 2,994
Long-term debt 12,129 11,866 11,907
Deferred income taxes,
pension, other postretirement
benefits
and other liabilities 5,541 5,612 5,346
20,723 20,548 20,247
Real estate and related assets
Notes payable and commercial
paper 115 130 63
Long-term debt 764 762 814
Other liabilities 466 491 472
1,345 1,383 1,349
Total liabilities 22,068 21,931 21,596
Shareholders' interest 6,628 6,906 6,623
Total liabilities and
shareholders' interest $28,696 $28,837 $28,219
STATEMENT OF CASH FLOWS Q1 Q2
SELECTED INFORMATION (unaudited) March 30, March 31, June 29, June 30,
(in millions) 2003 2002 2003 2002
(Weyerhaeuser only, excludes real
estate & related assets)
Net cash from operations $(126) $(90) $465 $379
Cash paid for property and
equipment (128) (158) (172) (288)
Cash paid for timberlands
reforestation (14) (12) (5) (8)
Cash received from issuances of
debt 1 13,001 -- 100
Revolving credit facilities,
notes and commercial paper
borrowings, net 599 30 (333) (150)
Payments on debt (251) (6,593) (14) (97)
STATEMENT OF CASH FLOWS Q3 Q4 Year ended
Sept. Sept. Dec. Dec. Dec. Dec.
SELECTED INFORMATION (unaudited) 28, 29, 28, 29, 28, 29,
(in millions) 2003 2002 2003 2002 2003 2002
(Weyerhaeuser only, excludes
real estate & related assets)
Net cash from operations $268 $701 $1,258
Cash paid for property and
equipment (237) (241) (924)
Cash paid for timberlands
reforestation (6) (10) (36)
Cash received from issuances
of debt 26 1,015 14,142
Revolving credit facilities,
notes and commercial paper
borrowings, net 122 (230) (228)
Payments on debt (159) (1,375) (8,224)
SOURCE: Weyerhaeuser Company Limited
CONTACT: media, Bruce Amundson, +1-253-924-3047, or analysts, Kathryn
McAuley, +1-253-924-2058, both of Weyerhaeuser Company Limited
Web site: http://www.weyerhaeuser.com/