Newsroom
Weyerhaeuser Reports Record Second Quarter Net Earnings of $369 Million, or $1.57 Per Share, on Net Sales of $5.9 Billion
PRNewswire-FirstCall
FEDERAL WAY, Wash.
Jul 23, 2004
Weyerhaeuser Company (NYSE: WY) today reported record second quarter net earnings of $369 million, or $1.57 per share, on net sales of $5.9 billion. This compares with $157 million, or 71 cents per share, on net sales of $4.9 billion for the second quarter of 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b ) Second quarter 2004 earnings include the following after-tax items: * A charge of $14 million, or 6 cents per share, for early extinguishment of debt. * A charge of $10 million, or 4 cents per share, for an adverse judgment in a lawsuit. Second quarter 2003 earnings included 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. Other significant second quarter financial matters include: * Proceeds from an equity offering in the second quarter allowed the company, including Real Estate and Related Assets, to reduce outstanding debt by approximately $1.0 billion to approximately $11.6 billion at the end of the quarter. Strong cash flow from operations also contributed to a net second quarter increase in cash and short-term investments of approximately $650 million, which is expected to be applied to future debt repayment. These debt repayments are expected to reduce interest expense beginning in the third quarter. * Capital spending, excluding acquisitions and Real Estate and Related Assets, for the first six months was approximately $177 million. The company's capital spending budget remains $750 million for the year.
"Our record quarterly earnings reflect favorable market conditions for Wood Products and Timberlands, combined with hard work by our employees to improve efficiency and streamline operations," said Steven R. Rogel, chairman, president and chief executive officer. "The robust housing market drove strong earnings in both Wood Products and Real Estate. In addition, the performance of the company's paper-related businesses is improving.
"As we look to the third quarter, our businesses are well positioned to take advantage of continued strong market conditions. Despite recent price weakness in some product lines, Wood Products earnings are expected to remain healthy and our single-family home building business has a record backlog of orders. Price increases in pulp, paper and packaging continue to be implemented."
SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 2Q 2004 2Q 2003 Change
Net earnings $369 $157 $212
Earnings per share $1.57 $0.71 $0.86
Net sales $5,893 $4,930 $963
SEGMENT RESULTS FOR SECOND QUARTER
(Contributions to Pre-Tax Earnings)
Millions 2Q 2004 2Q 2003 Change
Timberlands $201 $300 ($99)
Wood Products $448 ($53) $501
Pulp and Paper $14 ($7) $21
Containerboard, Packaging and Recycling $62 $108 ($46)
Real Estate and Related Assets $118 $91 $27
DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT
TIMBERLANDS
2Q 2004 1Q 2004 Change
Contribution to earnings (millions) $201 $159 $42
Second quarter earnings increased from the first quarter primarily due to seasonally higher fee harvest volume and higher prices for logs in both export and domestic markets. Third quarter earnings, excluding the previously announced sale of 304,000 acres of timberlands in Georgia, are expected to be slightly lower than the second quarter, with reduced harvest and sales activity due to normal seasonal shutdowns.
WOOD PRODUCTS
2Q 2004 1Q 2004 Change
Contribution to earnings (millions) $448 $173 $275
Second quarter earnings of $448 million include a $16 million pre-tax charge resulting from an adverse judgment in a lawsuit. This compares to first quarter earnings of $173 million, which included a pre-tax gain of $33 million on the sale of the company's oriented strand board mill in Slave Lake, Alberta, and a pre-tax charge of $49 million for the settlement of litigation.
Strong demand for lumber, structural panels and engineered wood products continued into the second quarter with U.S. housing starts staying near the 2 million seasonally adjusted annual level through the quarter. High industry operating rates in OSB and plywood, combined with transportation issues affecting all products, kept prices at very high levels for much of the quarter. Prices for hardwood lumber, particleboard and medium density fiberboard also increased in response to strong demand from industrial manufacturers.
The segment incurred $34 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the second quarter. This compares to $26 million in the first quarter.
Third quarter earnings are expected to be lower than second quarter, but to remain healthy. Prices for lumber and structural panels are expected to be lower as supply and demand begins to balance and transportation issues abate. Average realizations for engineered lumber and industrial panels are expected to improve.
PULP AND PAPER
2Q 2004 1Q 2004 Change
Contribution (charge) to earnings
(millions) $14 ($25) $39
Earnings improved during the quarter as general improvement in the world economy and a weakening dollar increased demand for all products, resulting in higher prices. Transportation disruptions slowed product shipments during the quarter.
The segment expects to report improved earnings in the third quarter. Overall prices for pulp are expected to increase modestly. Improvements in fine paper prices are anticipated as demand continues to grow.
CONTAINERBOARD, PACKAGING AND RECYCLING
2Q 2004 1Q 2004 Change
Contribution to earnings (millions) $62 $24 $38
Earnings increased over first quarter levels primarily due to higher box shipments coupled with rising prices for both containerboard and boxes. Increased productivity also contributed to higher earnings, partially offset by cost increases for recycled fiber during the quarter.
Customer demand is expected to remain strong in the third quarter, with industry operating rates remaining high and industry inventories near historic lows. This should result in continued favorable business conditions for this segment. As a result, the company expects higher third quarter earnings due primarily to increasing box prices.
REAL ESTATE AND RELATED ASSETS
2Q 2004 1Q 2004 Change
Contribution to earnings (millions) $118 $120 ($2)
Second quarter earnings benefited from increases in single-family home sale closings and margins. First quarter earnings included a $22 million pre- tax gain on a land sale.
Housing sales remain strong with a backlog of homes sold, but not closed, exceeding seven months. Third quarter earnings from new home sales are expected to be comparable to the second quarter. Total segment earnings for the third quarter are expected to be higher due to an $18 million pre-tax gain from the sale of a multi-family site.
Other
The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 23 to discuss the second quarter results.
To access the conference call, listeners calling from within North America should dial 1-888-221-5699 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-706-643-3795. Replays of the call will be available for 48 hours following completion of the live call and can be accessed at 1-800-642-1687 (access code: 8362614) within North America and at 1-706-645-9291 (access code: 8362614) 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 2003, sales were $19.9 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/ .
This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "believes," "should," "approximately," anticipates," "estimates," and "plans," and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expectations regarding the company's markets in the third quarter; expected earnings and performance of the company's business segments during the third quarter, demand and pricing for the company's products in the third quarter, market capacity, anticipated debt repayment and interest expense reduction, anticipated capital spending, reduced timber harvest in the third quarter, transportation and new home sales. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts; market demand for the company's products, which may be tied to the relative strength of various U.S. business segments; energy prices; performance of the company's manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; disruption of transportation and legal proceedings. The company is also a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan, and by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar; and restrictions on international trade or tariffs imposed on imports, including the countervailing and dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
For more information contact:
Media - Bruce Amundson 253-924-3047
Analysts - Kathryn McAuley 253-924-2058
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS Q1 Q2
(in millions) March 28, March 30, June 27, June 29,
2004 2003 2004 2003
Net sales and revenues:
Weyerhaeuser (1) $4,568 $4,169 $5,369 $4,498
Real Estate and Related Assets 469 445 524 432
Total net sales and revenues 5,037 4,614 5,893 4,930
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,539 3,322 3,922 3,611
Depreciation, amortization and
fee stumpage 325 321 328 313
Selling expenses 121 107 122 111
General and administrative
expenses 241 231 235 232
Research and development
expenses 12 12 13 12
Taxes other than payroll and
income taxes 48 47 48 48
Charges for integration and
restructuring 15 29 13 25
Charges for closure of
facilities 1 22 -- 12
Other operating costs,
net (2) (3) 14 37 42 (205)
4,316 4,128 4,723 4,159
Real Estate and Related Assets:
Costs and operating expenses 321 330 381 316
Depreciation and amortization 2 3 4 2
Selling expenses 27 24 30 25
General and administrative
expenses 17 14 19 14
Taxes other than payroll and
income taxes 1 1 -- 1
Other operating costs, net 1 (7) 1 --
369 365 435 358
Total costs and expenses 4,685 4,493 5,158 4,517
Operating income 352 121 735 413
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (4) (195) (208) (218) (205)
Less interest capitalized 3 5 1 6
Equity in income (loss) of
affiliates -- (5) 7 3
Interest income and other 3 6 5 6
Real Estate and Related Assets:
Interest expense incurred (15) (14) (14) (13)
Less interest capitalized 15 14 14 13
Equity in income of
unconsolidated entities 9 5 20 7
Interest income and other 11 11 9 8
Earnings before income taxes and
cumulative effect of a change in
accounting principle 183 (65) 559 238
Income taxes (62) 22 (190) (81)
Earnings before cumulative effect of
a change in accounting principle 121 (43) 369 157
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6 (5) -- (11) -- --
Net earnings (loss) $121 $(54) $369 $157
Basic net earnings (loss) per share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $0.54 $(0.19) $1.57 $0.71
Cumulative effect of a change in
accounting principle -- (0.05) -- --
Net earnings (loss) $0.54 $(0.24) $1.57 $0.71
Diluted net earnings (loss) per
share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $0.54 $(0.19) $1.57 $0.71
Cumulative effect of a change in
accounting principle -- (0.05) -- --
Net earnings (loss) $0.54 $(0.24) $1.57 $0.71
Dividends paid per share $0.40 $0.40 $0.40 $0.40
Year
Year-to-date Q3 Q4 ended
June June Sept. Dec. Dec.
27, 29, 28, 28, 28,
2004 2003 2003 2003 2003
Net sales and revenues:
Weyerhaeuser (1) $9,937 $8,667 $4,650 $4,527 $17,844
Real Estate and Related Assets 993 877 534 618 2,029
Total net sales and revenues 10,930 9,544 5,184 5,145 19,873
Costs and expenses:
Weyerhaeuser:
Costs of products sold 7,461 6,933 3,598 3,547 14,078
Depreciation, amortization
and fee stumpage 653 634 320 353 1,307
Selling expenses 243 218 117 122 457
General and administrative
expenses 476 463 249 238 950
Research and development
expenses 25 24 10 17 51
Taxes other than payroll and
income taxes 96 95 45 45 185
Charges for integration and
restructuring 28 54 24 25 103
Charges for closure of
facilities 1 34 48 45 127
Other operating costs, net
(2) (3) 56 (168) 16 (92) (244)
9,039 8,287 4,427 4,300 17,014
Real Estate and Related
Assets:
Costs and operating expenses 702 646 406 464 1,516
Depreciation and
amortization 6 5 3 3 11
Selling expenses 57 49 27 31 107
General and administrative
expenses 36 28 15 20 63
Taxes other than payroll and
income taxes 1 2 0 1 3
Other operating costs, net 2 (7) 2 (4) (9)
804 723 453 515 1,691
Total costs and expenses 9,843 9,010 4,880 4,815 18,705
Operating income 1,087 534 304 330 1,168
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (4) (413) (413) (200) (202) (815)
Less interest capitalized 4 11 3 5 19
Equity in income (loss) of
affiliates 7 (2) (3) (1) (6)
Interest income and other 8 12 3 2 17
Real Estate and Related
Assets:
Interest expense incurred (29) (27) (13) (13) (53)
Less interest capitalized 29 27 13 13 53
Equity in income of
unconsolidated entities 29 12 11 (3) 20
Interest income and other 20 19 6 8 33
Earnings before income taxes and
cumulative effect of a change
in accounting principle 742 173 124 139 436
Income taxes (252) (59) (42) (47) (148)
Earnings before cumulative effect
of a change in accounting principle 490 114 82 92 288
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6 (5) -- (11) -- -- (11)
Net earnings (loss) $490 $103 $82 $92 $277
Basic net earnings (loss) per
share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $2.14 $0.52 $0.37 $0.41 $1.30
Cumulative effect of a change
in accounting principle -- (0.05) -- -- (0.05)
Net earnings (loss) $2.14 $0.47 $0.37 $0.41 $1.25
Diluted net earnings (loss) per
share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $2.13 $0.52 $0.37 $0.41 $1.30
Cumulative effect of a change
in accounting principle -- (0.05) -- -- (0.05)
Net earnings (loss) $2.13 $0.47 $0.37 $0.41 $1.25
Dividends paid per share $0.80 $0.80 $0.40 $0.40 $1.60
(1) The first and second quarters of 2004 include charges of $26 million
and $34 million, respectively, or $60 million year-to-date, for
countervailing and anti-dumping duties and related costs. The
first, second, third and fourth quarters of 2003 include charges of
$24 million, $26 million, $25 million, and $22 million,
respectively, or a total of $97 million for the year, for
countervailing and anti-dumping duties and related costs.
(2) The first and second quarters of 2004 include net foreign exchange
losses of $9 million and $7 million, respectively, or a total net
loss of $16 million year-to-date. The 2003 first, second, third and
fourth quarters include net foreign exchange gains (losses) of $35
million, $47 million, ($4) million, and $30 million, respectively,
for a total net gain of $108 million for the year. These gains and
losses result primarily from fluctuations in Canadian and New
Zealand exchange rates.
(3) The first quarter of 2004 includes a $49 million charge for the
settlement of lawsuits involving the market for Pacific Northwest
alder logs and a $33 million gain on the sale of an oriented strand
board mill in Slave Lake, Alberta. The second quarter includes a $16
million charge resulting from an adverse judgment in a lawsuit
involving the market for Pacific Northwest alder logs. 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. 2003 fourth quarter
includes a $61 million gain on the sales of timberlands in Tennessee
and the Carolinas and an $8 million charge associated with the
settlement of litigation related to workers compensation claims.
(4) The second quarter of 2004 includes a $21 million charge for the
early extinguishment of debt.
(5) Statement of Financial Accounting Standards No. 143, Accounting for
Asset Retirement Obligations,was adopted as of the beginning of
2003.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Q1 Q2
March 28, March 30, June 27, June 29,
2004 2003 2004 2003
Timberlands:
Logs $193 $162 $211 $185
Other products 58 80 66 61
251 242 277 246
Wood Products:
Softwood lumber 819 752 1,106 846
Plywood 221 165 263 173
Veneer 11 9 12 9
Composite panels 108 90 133 104
OSB 338 167 456 227
Hardwood lumber 81 80 94 86
Engineered lumber products 298 254 396 308
Logs 23 25 38 33
Other products 248 216 294 262
2,147 1,758 2,792 2,048
Pulp and Paper:
Pulp 339 309 371 321
Paper 535 596 538 546
Coated groundwood 36 36 37 32
Liquid packaging board 49 47 53 52
Other products 10 6 13 6
969 994 1,012 957
Containerboard, Packaging and
Recycling:
Containerboard 81 77 80 81
Packaging 853 879 918 922
Recycling 80 60 91 63
Bags 19 20 18 20
Other products 33 33 34 35
1,066 1,069 1,141 1,121
Real Estate and Related Assets 469 445 524 432
Corporate and Other 135 106 147 126
$5,037 $4,614 $5,893 $4,930
Year
Year-to-date Q3 Q4 ended
June June Sept. Dec. Dec.
27, 29, 28, 28, 28,
2004 2003 2003 2003 2003
Timberlands:
Logs $404 $347 $184 $199 $730
Other products 124 141 62 61 264
528 488 246 260 994
Wood Products:
Softwood lumber 1,925 1,598 890 793 3,281
Plywood 484 338 219 227 784
Veneer 23 18 9 12 39
Composite panels 241 194 100 99 393
OSB 794 394 345 370 1,109
Hardwood lumber 175 166 75 79 320
Engineered lumber products 694 562 329 288 1,179
Logs 61 58 19 28 105
Other products 542 478 251 246 975
4,939 3,806 2,237 2,142 8,185
Pulp and Paper:
Pulp 710 630 333 342 1,305
Paper 1,073 1,142 530 510 2,182
Coated groundwood 73 68 39 33 140
Liquid packaging board 102 99 50 49 198
Other products 23 12 5 9 26
1,981 1,951 957 943 3,851
Containerboard, Packaging and
Recycling:
Containerboard 161 158 73 73 304
Packaging 1,771 1,801 898 845 3,544
Recycling 171 123 60 64 247
Bags 37 40 19 21 80
Other products 67 68 40 39 147
2,207 2,190 1,090 1,042 4,322
Real Estate and Related Assets 993 877 534 618 2,029
Corporate and Other 282 232 120 140 492
$10,930 $9,544 $5,184 $5,145 $19,873
Contribution (charge) to earnings: Q1 Q2
(in millions) March 28, March 30, June 27, June 29,
2004 2003 2004 2003
Timberlands (1) $159 $149 $201 $300
Wood Products (2) (3) (4) 173 (150) 448 (53)
Pulp and Paper (5) (25) 10 14 (7)
Containerboard, Packaging and
Recycling (6) (7) 24 80 62 108
Real Estate and Related Assets (8) 120 95 118 91
Corporate and Other (9) (10) (11) (76) (46) (67) (2)
$375 $138 $776 $437
Year
Year-to-date Q3 Q4 ended
June June Sept. Dec. Dec.
27, 29, 28, 28, 28,
2004 2003 2003 2003 2003
Timberlands (1) $360 $449 $143 $185 $777
Wood Products (2) (3) (4) 621 (203) 151 111 59
Pulp and Paper (5) (11) 3 (18) (67) (82)
Containerboard, Packaging and
Recycling (6) (7) 86 188 42 32 262
Real Estate and Related Assets
(8) 238 186 97 109 392
Corporate and Other (9) (10) (11) (143) (48) (94) (34) (176)
$1,151 $575 $321 $336 $1,232
(1) The 2003 second quarter includes a $144 million gain on the sales of
timberlands in Washington state. The 2003 fourth quarter includes a
$61 million gain on the sale of timberlands in Tennessee and the
Carolinas.
(2) The first and second quarters of 2004 include charges of $26 million
and $34 million, respectively, or $60 million year-to-date, for
countervailing and anti-dumping duties and related costs. The
first, second, third and fourth quarters of 2003 include charges of
$24 million, $26 million, $25 million, and $22 million,
respectively, or a total of $97 million for the year, for
countervailing and anti-dumping duties and related costs.
(3) The first quarter of 2004 includes a $49 million charge for the
settlement of lawsuits involving the market for Pacific Northwest
alder logs. The second quarter of 2004 includes a $16 million charge
resulting from an adverse judgment in a lawsuit involving the market
for Pacific Northwest alder logs. The first quarter of 2003 includes
a $79 million charge for a lawsuit involving the market for Pacific
Northwest alder logs.
(4) The first quarter of 2004 includes a credit of $2 million for the
reversal of closure costs accrued in prior years and a $33 million
gain on the sale of an oriented strand board mill in Slave Lake,
Alberta. The second quarter of 2004 includes a $5 million net loss
on the sale of facilities. The 2003 first, second, third and fourth
quarters include costs for the closure of facilities of $22 million,
$11 million, $31 million, and $14 million, respectively. 2003
second quarter also includes a charge of $16 million to recognize
impairment associated with an impending facility sale that closed in
the fourth quarter of 2003.
(5) The 2004 second quarter includs a $2 million asset impairment charge
related to assets held for sale. 2003 second quarter includes $3
million of closure costs. 2003 fourth quarter includes $30 million
of closure costs.
(6) The third quarter of 2003 includes a $23 million charge associated
with the settlement of a class action linerboard antitrust lawsuit.
(7) The first quarter of 2004 includes closure costs of $3 million. The
second quarter of 2004 includes a net gain of $1 million on the
sales of a facility and a joint venture investment. The 2003 second
quarter includes the reversal of an accrual for closure charges of
$2 million. The 2003 third and fourth quarters include closure
costs of $17 million and $1 million, respectively.
(8) The first quarter of 2004 includes a $22 million gain on a land
sale. The 2003 first quarter includes gains of $8 million for the
sale of two office buildings and $10 for the sale of an apartment
complex. The 2003 second quarter includes a gain of $12 million for
the sale of commercial property. The 2003 fourth quarter includes a
$7 million gain on an acreage sale.
(9) The 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.
(10) The 2003 second quarter includes a $25 million gain for the
settlement of an insurance claim relating to the Cemwood litigation.
The 2003 fourth quarter includes an $8 million charge for the
settlement of litigation related to workers compensation claims.
(11) The first and second quarters of 2004 include net foreign exchange
losses of $10 million and $6 million, or a loss of $16 million year-
to-date. 2003 results include net foreign exchange gains (losses)
of $35 million in the first quarter, $46 million in the second
quarter, ($4) million in the third quarter, and $30 million in the
fourth quarter, for a net 2003 gain of $107 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 28, March 30, June 27, June 29,
2004 2003 2004 2003
Timberlands (thousands):
Logs - cunits 1,044 984 954 1,006
Wood Products (millions):
Softwood lumber - board feet 2,054 2,175 2,393 2,385
Plywood - square feet (3/8") 642 664 668 697
Veneer - square feet (3/8") 55 62 60 63
Composite panels - square feet (3/4") 301 267 324 304
Oriented strand board - square
feet (3/8") 981 1,025 1,143 1,206
Hardwood lumber - board feet 100 106 116 113
Logs - cunits (in thousands) 170 170 279 230
Pulp and Paper (thousands):
Pulp - air-dry metric tons 624 623 642 596
Paper - tons 741 737 718 690
Coated groundwood - tons 59 61 61 55
Liquid packaging board - tons 66 60 72 67
Paper converting - tons 483 502 472 472
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 250 221 221 233
Packaging - MSF 18,146 17,752 18,917 18,577
Recycling - tons 678 593 701 566
Kraft bags and sacks - tons 24 25 23 24
Real Estate and Related Assets:
Single-family homes sold 1,506 1,289 1,564 1,321
Single-family homes closed 1,065 1,010 1,216 1,003
Single-family homes sold but not
closed at end of period 2,702 2,161 3,050 2,479
Year
Year-to-date Q3 Q4 ended
June June Sept. Dec. Dec.
27, 29, 28, 28, 28,
2004 2003 2003 2003 2003
Timberlands (thousands):
Logs - cunits 1,998 1,990 987 1,148 4,125
Wood Products (millions):
Softwood lumber - board feet 4,447 4,560 2,298 2,123 8,981
Plywood - square feet (3/8") 1,310 1,361 688 616 2,665
Veneer - square feet (3/8") 115 125 56 58 239
Composite panels - square
feet (3/4") 625 571 302 289 1,162
Oriented strand board - square
feet (3/8") 2,124 2,231 1,129 1,001 4,361
Hardwood lumber - board feet 216 219 103 105 427
Logs - cunits (in thousands) 449 400 189 210 799
Pulp and Paper (thousands):
Pulp - air-dry metric tons 1,266 1,219 632 628 2,479
Paper - tons 1,459 1,427 707 688 2,822
Coated groundwood - tons 120 116 64 54 234
Liquid packaging board - tons 138 127 64 65 256
Paper converting - tons 955 974 478 430 1,882
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 471 454 214 222 890
Packaging - MSF 37,063 36,329 18,545 17,867 72,741
Recycling - tons 1,379 1,159 538 593 2,290
Kraft bags and sacks - tons 47 49 25 26 100
Real Estate and Related Assets:
Single-family homes sold 3,070 2,610 1,239 1,156 5,005
Single-family homes closed 2,281 2,013 1,182 1,431 4,626
Single-family homes sold but
not closed at end of period 3,050 2,479 2,536 2,261 2,261
Total production volumes: Q1 Q2
March 28, March 30, June 27, June 29,
2004 2003 2004 2003
Timberlands (thousands):
Fee Depletion - cunits 2,265 2,555 2,404 2,479
Wood Products (millions):
Softwood lumber - board feet 1,760 1,842 1,881 1,825
Plywood - square feet (3/8") 422 478 405 412
Veneer - square feet (3/8") (1) 585 593 609 536
Composite panels - square feet (3/4") 268 231 281 252
Oriented strand board - square
feet (3/8") 1,031 1,011 1,056 1,051
Hardwood lumber - board feet 89 98 96 93
Pulp and Paper (thousands):
Pulp - air-dry metric tons 619 654 636 619
Paper - tons (2) 743 757 736 712
Coated groundwood - tons 55 62 61 55
Liquid packaging board - tons 61 56 67 68
Paper converting - tons 490 516 470 479
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (3) 1,503 1,429 1,598 1,568
Packaging - MSF 19,493 18,977 20,208 19,955
Recycling - tons (4) 1,607 1,528 1,707 1,644
Kraft bags and sacks - tons 24 25 23 25
Year-to-date Q3 Q4 Year
ended
June June Sept. Dec. Dec.
27, 29, 28, 28, 28,
2004 2003 2003 2003 2003
Timberlands (thousands):
Fee Depletion - cunits 4,669 5,034 2,223 2,171 9,428
Wood Products (millions):
Softwood lumber - board feet 3,641 3,667 1,742 1,704 7,113
Plywood - square feet (3/8") 827 890 414 404 1,708
Veneer - square feet (3/8") (1) 1,194 1,129 536 534 2,199
Composite panels - square
feet (3/4") 549 483 253 252 988
Oriented strand board - square
feet (3/8") 2,087 2,062 1,061 1,047 4,170
Hardwood lumber - board feet 185 191 93 89 373
Pulp and Paper (thousands):
Pulp - air-dry metric tons 1,255 1,273 604 645 2,522
Paper - tons (2) 1,479 1,469 706 658 2,833
Coated groundwood - tons 116 117 61 61 239
Liquid packaging board - tons 128 124 72 65 261
Paper converting - tons 960 995 472 415 1,882
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (3) 3,101 2,997 1,512 1,494 6,003
Packaging - MSF 39,701 38,932 19,865 19,033 77,830
Recycling - tons (4) 3,314 3,172 1,507 1,537 6,216
Kraft bags and sacks - tons 47 50 23 25 98
(1) Veneer production represents lathe production and includes volumes
that are further processed into plywood and engineered lumber
products by company mills.
(2) Paper production includes unprocessed rolls and converted paper
volumes.
(3) Containerboard production represents machine production and includes
volumes that are further processed into packaging by company
facilities.
(4) Recycling production includes volumes processed in Weyerhaeuser
recycling facilities and brokered volumes.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March 28, June 27, Dec. 28,
Assets 2004 2004 2003
Weyerhaeuser
Current assets:
Cash and short-term investments $74 $725 $171
Receivables, less allowances 1,701 1,860 1,484
Inventories 2,020 1,936 1,911
Prepaid expenses 471 488 455
Total current assets 4,266 5,009 4,021
Property and equipment 12,141 11,883 12,243
Construction in progress 251 279 403
Timber and timberlands at cost,
less fee stumpage charged
to disposals 4,279 4,244 4,287
Investments in and advances to
equity affiliates 603 592 603
Goodwill 3,232 3,218 3,237
Deferred pension and other assets 1,287 1,273 1,311
26,059 26,498 26,105
Real Estate and Related Assets 2,078 2,225 2,004
Total assets $28,137 $28,723 $28,109
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial paper $103 $2 $4
Current maturities of long-term debt 1,129 445 90
Accounts payable 1,065 1,114 1,041
Accrued liabilities 1,212 1,323 1,390
Total current liabilities 3,509 2,884 2,525
Long-term debt 10,399 10,325 11,503
Deferred income taxes, pension,
other postretirement benefits
and other liabilities 5,694 5,789 5,671
19,602 18,998 19,699
Real Estate and Related Assets
Notes payable and commercial paper 78 -- 1
Long-term debt 887 872 893
Other liabilities 356 443 407
1,321 1,315 1,301
Total liabilities 20,923 20,313 21,000
Shareholders' interest 7,214 8,410 7,109
Total liabilities and
shareholders' interest $28,137 $28,723 $28,109
STATEMENT OF CASH FLOWS Q1 Q2
SELECTED INFORMATION (unaudited) March 28, March 30, June 27, June 29,
(in millions) 2004 2003 2004 2003
(Weyerhaeuser only, excludes Real
Estate & Related Assets)
Net cash from operations $(120) $(126) $807 $397
Cash paid for property and
equipment (79) (128) (80) (172)
Cash paid for timberlands
reforestation (12) (14) (6) (5)
Cash received from issuances of debt -- 1 -- --
Revolving credit facilities,
notes and commercial paper
borrowings, net 98 599 (100) (333)
Payments on debt (60) (251) (813) (14)
Proceeds from equity offering -- -- 954 --
Year
Year-to-date Q3 Q4 ended
June June Sept. Dec. Dec.
27, 29, 28, 28, 28,
2004 2003 2003 2003 2003
Net cash from operations $687 $271 $557 $821 $1,649
Cash paid for property and
equipment (159) (300) (146) (146) (592)
Cash paid for timberlands
reforestation (18) (19) (6) (9) (34)
Cash received from issuances of
debt -- 1 12 31 44
Revolving credit facilities, notes
and commercial paper
borrowings, net (2) 266 166 (750) (318)
Payments on debt (873) (265) (509) (50) (824)
Proceeds from equity offering 954 -- -- -- --
Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-ahttp://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
SOURCE: Weyerhaeuser Company
CONTACT: Media, Bruce Amundson, +1-253-924-3047, or Analysts, Kathryn
McAuley, +1-253-924-2058, both of Weyerhaeuser Company
Web site: http://www.weyerhaeuser.com/