Newsroom
Weyerhaeuser Reports Third Quarter Net Earnings of $82 Million; Reduces Debt by $360 Million During Quarter
PRNewswire
FEDERAL WAY, Wash.
Oct 24, 2003
Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $82 million, or 37 cents per share, on net sales of $5.2 billion. This compares with $13 million, or 6 cents per share, on net sales of $4.9 billion for the third quarter of 2002.
Third quarter 2003 earnings include the following after-tax items:
-- A charge of $32 million, or 14 cents per share, for closure of
facilities;
-- A charge of $15 million, or 7 cents per share, associated with the
settlement of a class action linerboard antitrust lawsuit;
-- A charge of $15 million, or 7 cents per share, for integration and
restructuring activities.
Third quarter 2002 earnings include the following after-tax items:
-- A charge of $11 million, or 5 cents per share, for integration and
restructuring activities;
-- A charge of $20 million, or 9 cents per share, for business disruption
costs following a recovery boiler incident at the Plymouth, N.C., paper
facility.
Other significant third quarter financial matters include:
-- Reduced Weyerhaeuser Company debt to $12.4 billion as of the end of the
third quarter. Total company debt, which includes Real Estate and
related operations, was reduced approximately $360 million to $13.2
billion at the end of the quarter.
-- Capital spending, excluding Real Estate and related operations, for the
first nine months was approximately $471 million, in line with a
revised estimate of $720 million for the entire year.
-- Incurred approximately $25 million in countervailing and anti-dumping
duties and related costs on Canadian softwood lumber the company
imports into the United States. This compares with $26 million
incurred in the second quarter.
"The strength of the structural panel and softwood lumber markets provided the long-awaited improvement of our Wood Products segment, but our fine paper and containerboard packaging businesses face challenges from weak demand and deteriorating prices," said Steven R. Rogel, chairman, president and chief executive officer. "Real estate continues to be a strong performer. In addition, we continue to make progress on paying down the debt associated with the Willamette acquisition.
"We see some bright spots in the fourth quarter," Rogel said. "Our home building businesses continue to operate with a strong backlog and wood products pricing is expected to decline seasonally, but remain strong relative to fourth quarter last year. Market pulp prices are improving modestly, but paper and packaging markets are expected to remain weak."
SUMMARY OF THIRD QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 3Q 2003 3Q 2002 Change
Net earnings $82 $13 $69
Earnings per share $0.37 $0.06 $0.31
Net sales $5,184 $4,890 $294
SEGMENT RESULTS FOR THIRD QUARTER 2003
(Contributions to Pre-Tax Earnings)
Millions 3Q 2003 3Q 2002 Change
Timberlands $143 $133 $10
Wood Products $151 ($18) $169
Pulp and Paper ($18) $10 ($28)
Containerboard, Packaging and
Recycling $42 $88 ($46)
Real Estate and Related Assets $97 $85 $12
TIMBERLANDS
3Q 2003 2Q 2003 Change
Contribution to earnings
(millions) $143 $300 ($157)
Excluding a pre-tax gain of $144 million in the second quarter on the sales of Western Washington timberlands, third quarter earnings were slightly lower than the previous quarter. Lower harvest levels resulting from fire danger in the West and unseasonable wet weather in the South affected third quarter earnings. The segment benefited, however, from a stronger export market aided by a strengthening Japanese housing market.
The fourth quarter outlook for Timberlands earnings, excluding previously announced timberland sales in the Carolinas and Tennessee, is expected to decline slightly from the third quarter due to lower southern fee harvest.
WOOD PRODUCTS
3Q 2003 2Q 2003 Change
Contribution (charge) to
earnings (millions) $151 ($53) $204
An exceptionally strong market for oriented strand board and plywood, as well as an improving lumber market, produced the segment's first quarterly earnings since second quarter in 2002. Third quarter results reflect a pre-tax charge of $31 million for costs associated with the closure of the Dierks, Ark., veneer operations and the engineered lumber mill in Junction City, Ore.
Fourth quarter results are expected to be lower than third quarter due primarily to lower lumber and structural panel prices.
PULP AND PAPER
3Q 2003 2Q 2003 Change
Contribution (charge) to
earnings (millions) ($18) ($7) ($11)
Pulp prices rebounded late in the quarter, but a weak paper market hurt third quarter results. Costs associated with approximately 64,000 tons of market-related downtime for fine paper also negatively affected the third quarter performance. Third quarter results include pre-tax charges totaling $9 million for costs associated with staff reductions at a number of facilities.
Fourth quarter earnings are expected to be lower than third quarter due to weak paper markets that will offset expected increases in pulp prices.
CONTAINERBOARD, PACKAGING AND RECYCLING
3Q 2003 2Q 2003 Change
Contribution to earnings
(millions) $42 $108 ($66)
Eroding packaging and containerboard prices produced third quarter results that were lower than second quarter levels. During the quarter, Weyerhaeuser took approximately 89,000 tons of market-related downtime. Third quarter results include pre-tax charges of $40 million for costs associated primarily with the settlement of a class action linerboard antitrust lawsuit and the closure of the North Bend, Ore., containerboard mill.
Excluding the third quarter charges for settlement of the class action linerboard antitrust lawsuit and closures, fourth quarter earnings are expected to be lower than third quarter due primarily to eroding prices and seasonally lower packaging shipments.
REAL ESTATE AND RELATED ASSETS
3Q 2003 2Q 2003 Change
Contribution to earnings
(millions) $97 $91 $6
Real estate benefited from the continued strong housing market to produce record quarterly earnings. Closings increased from second quarter levels and traffic during the third quarter remained strong.
Fourth quarter earnings are expected to be slightly higher than third quarter due to increased closings of single-family homes. The company currently has a backlog in excess of 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 Oct. 24 to discuss the third quarter results.
To access the conference call, listeners calling from within North America should dial 1-800-446-4472 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-416-695-5261. Replays of the call will be available for one week following completion of the live call and can be accessed at 1-866-518-1010 within North America and at 1-416-695-5275 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 Cdn$29.1 billion (US$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. 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 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 fourth quarter; expected earnings and performance of the company's business segments during the fourth quarter 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 253-924-3047
Analysts - Kathryn McAuley 253-924-2058
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
(unaudited)
CONSOLIDATED EARNINGS(A) Q1 Q2 Q3
(in millions) March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
Net sales and revenues:
Weyerhaeuser(B) $4,169 $3,595 $4,498 $4,501 $4,650 $4,422
Real estate and related
assets 445 396 432 421 534 468
Total net sales and
revenues 4,614 3,991 4,930 4,922 5,184 4,890
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,322 2,831 3,611 3,519 3,598 3,576
Depreciation,
amortization and fee
stumpage 321 264 313 311 320 304
Selling expenses 107 103 111 116 117 116
General and
administrative
expenses 231 186 232 231 249 201
Research and
development expenses 12 12 12 13 10 11
Taxes other than
payroll and income
taxes 47 38 48 53 45 48
Charges for
integration and
restructuring 29 2 25 23 24 17
Charges for closure of
facilities 22 27 12 28 48 --
Other operating costs,
net©(D) 37 4 (205) (27) 16 19
4,128 3,467 4,159 4,267 4,427 4,292
Real estate and related
assets:
Costs and operating
expenses 330 291 316 317 406 359
Depreciation and
amortization 3 2 2 1 3 1
Selling expenses 24 21 25 24 27 23
General and
administrative
expenses 14 10 14 11 15 14
Taxes other than
payroll and income
taxes 1 1 1 1 -- 1
Other operating costs,
net (7) (8) -- 2 2 6
365 317 358 356 453 404
Total costs and expenses 4,493 3,784 4,517 4,623 4,880 4,696
Operating income 121 207 413 299 304 194
Interest expense and other:
Weyerhaeuser:
Interest expense
incurred(E) (208) (178) (205) (222) (200) (214)
Less interest
capitalized 5 4 6 16 3 16
Equity in income
(loss) of affiliates (5) (4) 3 (2) (3) (6)
Interest income and
other 6 5 6 6 3 9
Real estate and related
assets:
Interest expense
incurred (14) (13) (13) (13) (13) (12)
Less interest
capitalized 14 13 13 13 13 12
Equity in income of
unconsolidated
entities 5 6 7 6 11 10
Interest income and
other 11 6 8 8 6 11
Earnings before income
taxes and cumulative
effect of a change in
accounting principle (65) 46 238 111 124 20
Income taxes 22 (16) (81) (39) (42) (7)
Earnings before cumulative
effect of a change in
accounting principle (43) 30 157 72 82 13
Cumulative effect of a
change in accounting
principle, net of
applicable taxes of $6(F) (11) -- -- -- -- --
Net earnings (loss) $(54) $30 $157 $72 $82 $13
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 $0.37 $0.06
Cumulative effect of a
change in accounting
principle (0.05) -- -- -- -- --
Net earnings (loss) $(0.24) $0.14 $0.71 $0.32 $0.37 $0.06
Dividends paid per share $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Year
CONSOLIDATED EARNINGS (A) Year-to-date Q4 ended
(in millions) Sept. Sept. Dec. Dec.
28, 29, 29, 29,
2003 2002 2002 2002
Net sales and revenues:
Weyerhaeuser (B) $13,317 $12,518 $4,253 $16,771
Real estate and related assets 1,411 1,285 465 1,750
Total net sales and revenues 14,728 13,803 4,718 18,521
Costs and expenses:
Weyerhaeuser:
Costs of products sold 10,531 9,926 3,285 13,211
Depreciation, amortization and fee
stumpage 954 879 335 1,214
Selling expenses 335 335 115 450
General and administrative
expenses 712 618 229 847
Research and development expenses 34 36 16 52
Taxes other than payroll and
income taxes 140 139 39 178
Charges for integration and
restructuring 78 42 30 72
Charges for closure of facilities 82 55 40 95
Other operating costs, net©(D) (152) (4) (135) (139)
12,714 12,026 3,954 15,980
Real estate and related assets:
Costs and operating expenses 1,052 967 359 1,326
Depreciation and amortization 8 4 7 11
Selling expenses 76 68 22 90
General and administrative expenses 43 35 13 48
Taxes other than payroll and
income taxes 2 3 1 4
Other operating costs, net (5) -- (1) (1)
1,176 1,077 401 1,478
Total costs and expenses 13,890 13,103 4,355 17,458
Operating income 838 700 363 1,063
Interest expense and other:
Weyerhaeuser:
Interest expense incurred(E) (613) (614) (207) (821)
Less interest capitalized 14 36 14 50
Equity in income (loss) of affiliates (5) (12) (1) (13)
Interest income and other 15 20 8 28
Real estate and related assets:
Interest expense incurred (40) (38) (15) (53)
Less interest capitalized 40 38 15 53
Equity in income of unconsolidated
entities 23 22 9 31
Interest income and other 25 25 8 33
Earnings before income taxes and
cumulative effect of a change in
accounting principle 297 177 194 371
Income taxes (101) (62) (68) (130)
Earnings before cumulative effect of a
change in accounting principle 196 115 126 241
Cumulative effect of a change in
accounting principle, net of applicable
taxes of $6(F) (11) -- -- --
Net earnings (loss) $185 $115 $126 $241
Basic and diluted net earnings (loss)
per share:
Net earnings (loss) before cumulative
effect of a change in accounting
principle $0.88 $0.52 $0.57 $1.09
Cumulative effect of a change in
accounting principle (0.05) -- -- --
Net earnings (loss) $0.83 $0.52 $0.57 $1.09
Dividends paid per share $1.20 $1.20 $0.40 $1.60
(A) Certain reclassifications have been made to conform prior period data
with the current presentation.
(B) The first, second and third quarters of 2003 include charges of $24
million, $26 million and $25 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.
© 2003 first, second and third quarters include net foreign exchange
gains (losses) of $35 million, $47 million and ($4) 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.
(D) The first quarter of 2003 includes a $79 million charge for a lawsuit
involving the market for Pacific Northwest alder logs. 2003 second
quarter includes a $144 million gain on the sales of timberlands in
Washington state and a $25 million gain for the settlement of an
insurance claim relating to the Cemwood litigation. 2003 third
quarter includes a $23 million charge associated with the settlement
of a class action linerboard antitrust lawsuit. 2002 fourth quarter
includes a $117 million gain on the sale of timberlands in Washington
state.
(E) 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.
(F) 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 Q3
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands:
Raw materials (logs,
timber and chips) $203 $142 $213 $184 $212 $193
Other products 21 19 24 21 18 18
224 161 237 205 230 211
Wood Products:
Softwood lumber 752 692 846 901 890 845
Plywood and veneer 174 158 182 203 228 195
Oriented strand board,
composite and other
panels 257 240 331 320 445 217
Hardwood lumber 80 76 86 81 75 72
Engineered lumber
products 254 253 308 315 329 324
Raw materials (logs,
timber and chips) 81 106 82 129 72 120
Other products 174 176 221 198 213 184
1,772 1,701 2,056 2,147 2,252 1,957
Pulp and Paper:
Pulp 309 280 321 297 333 300
Paper 596 416 546 563 530 590
Coated groundwood 36 30 32 30 39 32
Bleached board 47 40 52 51 50 37
Other products 10 6 7 10 6 8
998 772 958 951 958 967
Containerboard, Packaging
and Recycling:
Containerboard 77 73 81 90 73 101
Packaging 879 758 922 935 898 909
Recycling 60 48 63 51 60 67
Bags 20 10 20 20 19 22
Other products 33 10 35 34 40 28
1,069 899 1,121 1,130 1,090 1,127
Real Estate and Related
Assets 445 396 432 421 534 468
Corporate and Other 106 62 126 68 120 160
$4,614 $3,991 $4,930 $4,922 $5,184 $4,890
Year
Net sales and revenues (in millions): Year-to-date Q4 ended
Sept. Sept. Dec. Dec.
28, 29, 29, 29,
2003 2002 2002 2002
Timberlands:
Raw materials (logs, timber and chips) $628 $519 $254 $773
Other products 63 58 39 97
691 577 293 870
Wood Products:
Softwood lumber 2,488 2,438 748 3,186
Plywood and veneer 584 556 178 734
Oriented strand board, composite and
other panels 1,033 777 251 1,028
Hardwood lumber 241 229 77 306
Engineered lumber products 891 892 256 1,148
Raw materials (logs, timber and chips) 235 355 117 472
Other products 608 558 160 718
6,080 5,805 1,787 7,592
Pulp and Paper:
Pulp 963 877 319 1,196
Paper 1,672 1,569 594 2,163
Coated groundwood 107 92 34 126
Bleached board 149 128 51 179
Other products 23 24 10 34
2,914 2,690 1,008 3,698
Containerboard, Packaging and Recycling:
Containerboard 231 264 86 350
Packaging 2,699 2,602 864 3,466
Recycling 183 166 63 229
Bags 59 52 23 75
Other products 108 72 20 92
3,280 3,156 1,056 4,212
Real Estate and Related Assets 1,411 1,285 465 1,750
Corporate and Other 352 290 109 399
$14,728 $13,803 $4,718 $18,521
Contribution (charge) to
earnings(A): Q1 Q2 Q3
(in millions) March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands(B) $149 $107 $300 $162 $143 $133
Wood Products©(D)(E) (150) 9 (53) 64 151 (18)
Pulp and Paper(F)(G) 10 1 (7) (15) (18) 10
Containerboard, Packaging
and Recycling(H)(I) 80 58 108 75 42 88
Real Estate and Related
Assets(J) 95 91 91 79 97 85
Corporate and Other(K)(L)(M) (46) (46) (2) (48) (94) (80)
$138 $220 $437 $317 $321 $218
Contribution (charge) to
earnings(A): Year-to-date Q4 Year ended
(in millions) Sept. Sept. Dec. Dec.
28, 29, 29, 29,
2003 2002 2002 2002
Timberlands(B) $592 $402 $300 $702
Wood Products©(D)(E) (52) 55 (75) (20)
Pulp and Paper(F)(G) (15) (4) 86 82
Containerboard, Packaging and
Recycling(H)(I) 230 221 114 335
Real Estate and Related Assets(J) 283 255 81 336
Corporate and Other(K)(L)(M) (142) (174) (119) (293)
$896 $755 $387 $1,142
(A) Certain reclassifications have been made to conform prior period data
with the current presentation.
(B) 2003 second quarter includes a $144 million gain on the sales of
timberlands in Washington state. 2002 fourth quarter includes a $117
million gain on the sale of timberlands in Washington state.
© The first, second and third quarters of 2003 include charges of
$24 million, $26 million and $25 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.
(D) The first quarter of 2003 includes a $79 million charge for a lawsuit
involving the market for Pacific Northwest alder logs.
(E) 2003 first, second and third quarters include costs for the closure
of facilities of $22 million, $11 million and $31 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).
(F) 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.
(G) 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.
(H) The third quarter of 2003 includes a $23 million charge associated
with the settlement of a class action linerboard antitrust lawsuit.
(I) 2003 second quarter includes the reversal of an accrual for closure
charges of $2 million. 2003 third quarter includes closure costs of
$17 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).
(J) 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.
(K) 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.
(L) 2003 second quarter includes a $25 million gain for the settlement of
an insurance claim relating to the Cemwood litigation.
(M) 2003 results include net foreign exchange gains (losses) of
$36 million in the first quarter, $51 million in the second quarter
and ($6) million in the third 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 Q3
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands (millions):
Raw materials - cubic feet 96 67 110 102 102 91
Wood Products (millions):
Softwood lumber - board
feet 2,175 1,845 2,385 2,262 2,298 2,362
Softwood plywood and
veneer - square feet
(3/8") 726 624 760 815 744 792
Composite panels - square
feet (3/4") 278 308 317 445 313 95
Oriented strand board -
square feet (3/8") 1,025 945 1,206 1,095 1,129 1,117
Hardwood lumber - board
feet 106 108 113 113 103 104
Raw materials - cubic
feet 128 143 118 164 112 161
Pulp and Paper (thousands):
Pulp - air-dry metric tons 623 563 596 618 632 561
Paper - tons 737 546 690 717 707 749
Coated groundwood - tons 61 48 55 49 64 55
Bleached board - tons 60 53 67 61 64 47
Paper converting - tons 502 375 472 488 478 499
Containerboard, Packaging
and Recycling (thousands)
Containerboard - tons 221 209 233 260 214 283
Packaging - MSF 17,752 15,001 18,577 19,285 18,545 18,553
Recycling - tons 593 604 566 552 538 539
Kraft bags and sacks -
tons 25 13 24 26 25 26
Year
Third party sales volumes: Year-to-date Q4 ended
Sept. Sept. Dec. Dec.
28, 29, 29, 29,
2003 2002 2002 2002
Timberlands (millions):
Raw materials - cubic feet 308 260 110 370
Wood Products (millions):
Softwood lumber - board feet 6,858 6,469 2,154 8,623
Softwood plywood and veneer -
square feet (3/8") 2,230 2,231 672 2,903
Composite panels - square feet
(3/4") 908 848 299 1,147
Oriented strand board - square
feet (3/8") 3,360 3,157 1,048 4,205
Hardwood lumber - board feet 322 325 102 427
Raw materials - cubic feet 358 468 127 595
Pulp and Paper (thousands):
Pulp - air-dry metric tons 1,851 1,742 636 2,378
Paper - tons 2,134 2,012 730 2,742
Coated groundwood - tons 180 152 58 210
Bleached board - tons 191 161 68 229
Paper converting - tons 1,452 1,362 497 1,859
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 668 752 231 983
Packaging - MSF 54,874 52,839 17,491 70,330
Recycling - tons 1,697 1,695 597 2,292
Kraft bags and sacks - tons 74 65 28 93
Total production volumes: Q1 Q2 Q3
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
Timberlands (millions):
Logs - cubic feet 182 153 152 191 147 164
Wood Products (millions):
Softwood lumber - board
feet 1,842 1,530 1,825 1,702 1,742 1,728
Softwood plywood and
veneer - square feet
(3/8") 672 471 557 649 596 638
Composite panels -
square feet (3/4") 231 218 252 183 253 235
Oriented strand board -
square feet (3/8") 1,011 957 1,051 944 1,061 1,115
Hardwood lumber - board
feet 108 96 102 99 103 107
Pulp and Paper
(thousands):
Pulp - air-dry metric tons 654 607 619 492 604 630
Paper - tons 757 510 712 667 706 704
Coated groundwood - tons 62 48 55 60 61 43
Bleached board - tons 56 63 68 67 72 31
Paper converting - tons 516 353 479 496 472 502
Containerboard, Packaging
and Recycling (thousands)
Containerboard - tons 1,429 1,250 1,568 1,600 1,512 1,621
Packaging - MSF 18,977 16,174 19,955 20,521 19,865 19,596
Recycling - tons 1,528 1,387 1,644 1,588 1,507 1,551
Kraft bags and sacks -
tons 25 13 25 25 23 27
Total production volumes: Year
Year-to-date Q4 ended
Sept. Sept. Dec. Dec.
28, 29, 29, 29,
2003 2002 2002 2002
Timberlands (millions):
Logs - cubic feet 481 508 155 663
Wood Products (millions):
Softwood lumber - board feet 5,409 4,960 1,871 6,831
Softwood plywood and veneer -
square feet (3/8") 1,825 1,758 520 2,278
Composite panels - square feet
(3/4") 736 636 228 864
Oriented strand board - square
feet (3/8") 3,123 3,016 1,033 4,049
Hardwood lumber - board feet 313 302 104 406
Pulp and Paper (thousands):
Pulp - air-dry metric tons 1,877 1,729 552 2,281
Paper - tons 2,175 1,881 730 2,611
Coated groundwood - tons 178 151 59 210
Bleached board - tons 196 161 66 227
Paper converting - tons 1,467 1,351 493 1,844
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 4,509 4,471 1,533 6,004
Packaging - MSF 58,797 56,291 18,809 75,100
Recycling - tons 4,679 4,526 1,566 6,092
Kraft bags and sacks - tons 73 65 28 93
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March June Sept. Dec.
30, 29, 28, 29,
Assets 2003 2003 2003 2002
Weyerhaeuser
Current assets:
Cash and short-term investments $59 $47 $57 $115
Receivables, less allowances 1,573 1,671 1,661 1,413
Inventories 2,167 2,093 1,959 1,941
Prepaid expenses 455 427 436 419
Total current assets 4,254 4,238 4,113 3,888
Property and equipment 12,228 12,274 12,235 12,278
Construction in progress 709 669 514 687
Timber and timberlands at cost, less
fee stumpage charged to disposals 4,450 4,454 4,440 4,402
Investments in and advances to
equity affiliates 538 564 560 578
Goodwill 3,191 3,224 3,221 3,131
Deferred pension and other assets 1,337 1,349 1,300 1,285
26,707 26,772 26,383 26,249
Real estate and related assets 1,989 2,065 2,064 1,970
Total assets $28,696 $28,837 $28,447 $28,219
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial paper $321 $238 $155 $2
Current maturities of long-term
debt 595 594 92 786
Accounts payable 975 1,046 975 983
Accrued liabilities 1,162 1,192 1,214 1,223
Total current liabilities 3,053 3,070 2,436 2,994
Long-term debt 12,129 11,866 12,120 11,907
Deferred income taxes, pension,
other postretirement benefits and
other liabilities 5,541 5,612 5,632 5,346
20,723 20,548 20,188 20,247
Real estate and related assets
Notes payable and commercial paper 115 130 100 63
Long-term debt 764 762 762 814
Other liabilities 466 491 476 472
1,345 1,383 1,338 1,349
Total liabilities 22,068 21,931 21,526 21,596
Shareholders' interest 6,628 6,906 6,921 6,623
Total liabilities and shareholders'
interest $28,696 $28,837 $28,447 $28,219
STATEMENT OF CASH FLOWS Q1 Q2 Q3
SELECTED INFORMATION (unaudited) March March June June Sept. Sept.
(in millions) 30, 31, 29, 30, 28, 29,
(Weyerhaeuser only, excludes real 2003 2002 2003 2002 2003 2002
estate & related assets)
Net cash from operations $(126) $(90) $465 $379 $489 $268
Cash paid for property and
equipment (128) (158) (172) (288) (146) (237)
Cash paid for timberlands
reforestation (14) (12) (5) (8) (6) (6)
Cash received from issuances of
debt 1 13,001 -- 100 12 26
Revolving credit facilities,
notes and commercial paper
borrowings, net 599 30 (333) (150) 166 122
Payments on debt (251) (6,593) (14) (97) (509) (159)
STATEMENT OF CASH FLOWS Year
SELECTED INFORMATION (unaudited) Year-to-date Q4 ended
(in millions) Sept. Sept. Dec. Dec.
(Weyerhaeuser only, excludes real 28, 29, 29, 29,
estate & related assets) 2003 2002 2002 2002
Net cash from operations $828 $557 $701 $1,258
Cash paid for property and
equipment (446) (683) (241) (924)
Cash paid for timberlands
reforestation (25) (26) (10) (36)
Cash received from issuances of
debt 13 13,127 1,015 14,142
Revolving credit facilities, notes
and commercial paper borrowings,
net 432 2 (230) (228)
Payments on debt (774) (6,849) (1,375) (8,224)
SOURCE: Weyerhauser Company Limited
CONTACT: media, Bruce Amundson, +1-253-924-3047, or analysts, Kathryn
McAuley, +1-253-924-2058, both of Weyerhauser Company
Web site: http://www.weyerhaeuser.com/