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Weyerhaeuser Reports Second Quarter Net Earnings of $420 Million, or $1.71 Per Diluted Share, on Net Sales of $5.8 Billion

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Jul 21, 2005

Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $420 million, or $1.71 per diluted share, on net sales of $5.8 billion. This compares with $369 million, or $1.57 per diluted share, on net sales of $5.7 billion for the second quarter of 2004.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
          http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b )

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

-- A gain of $110 million, or 45 cents per diluted share, related to the sale of the company's operations in coastal British Columbia.

-- A charge of $44 million, or 18 cents per diluted share, related to a planned repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004.

-- A gain of $37 million, or 15 cents per diluted share, related to the recognition of a deferred gain from previous timberlands sales.

-- A charge of $12 million, or 5 cents per diluted share, related to litigation.

Second quarter 2004 earnings included the following after-tax items:

-- A charge of $14 million, or 6 cents per diluted share, for early extinguishment of debt.

-- A charge of $10 million, or 4 cents per diluted share, for an adverse judgment in a lawsuit.

"This year's overall results are good, despite conditions that were more difficult than second quarter of last year," said Steven R. Rogel, chairman, president and chief executive officer. "We're pleased with this short-term performance, but we also recognize that many of our businesses face significant long-term challenges. We remain focused on finding ways to enhance the earnings performance of our entire portfolio, regardless of market conditions."

  SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS

  Millions (except per share data)  2Q 2005        2Q 2004       Change
  Net earnings                         $420           $369          $51
  Earnings per diluted share          $1.71          $1.57        $0.14
  Net sales                          $5,838         $5,728         $110

  SEGMENT RESULTS FOR SECOND QUARTER
  (Contributions to Pre-Tax Earnings)
  Millions                          2Q 2005        2Q 2004       Change
  Timberlands                          $210           $201           $9
  Wood Products                        $204           $448       ($244)
  Cellulose Fiber and White Papers      $16            $14           $2
  Containerboard, Packaging and
   Recycling                            $99            $62          $37
  Real Estate and Related Assets       $156           $118          $38


  DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT

  TIMBERLANDS
                                    2Q 2005        1Q 2005       Change
  Contribution to earnings
   (millions)                          $210           $200          $10

Second quarter earnings increased slightly from the first quarter due primarily to higher domestic log prices. Export prices were flat quarter to quarter. Fee harvest was down slightly.

Third quarter earnings are expected to be slightly lower than the second quarter, due to reduced harvest and sales activity from normal seasonal shutdowns. Export prices are expected to be modestly higher, but not enough to offset anticipated declines in domestic log prices.

  WOOD PRODUCTS
                                    2Q 2005        1Q 2005       Change
  Contribution to earnings
   (millions)                          $204           $131          $73

Earnings increased significantly from first quarter due primarily to higher shipment volumes for all core product lines. The overall effect of price on earnings quarter to quarter was minor, with higher prices for engineered wood products offset by lower prices in oriented strand board and plywood. Average lumber prices realized were flat. Second quarter earnings included $18 million in pre-tax charges related to litigation.

The segment incurred $27 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, compared with $22 million in the first quarter.

Prices for commodity building products are expected to drop seasonally in the third quarter. Shipment volumes are expected to be flat. As a result, third quarter earnings are expected to decline to a level closer to the first quarter.

  CELLULOSE FIBER AND WHITE PAPERS (Formerly Pulp and Paper)
                                    2Q 2005        1Q 2005       Change
  Contribution to earnings
   (millions)                           $16            $19         ($3)

Segment earnings declined slightly from first quarter, due primarily to scheduled maintenance downtime and higher chip, chemical and freight costs.

Fluff pulp pricing improved during the quarter. Oversupply and weak demand in Europe resulted in lower papergrade pulp prices and shipment volumes. Fine paper prices improved in all major product lines and sales volume increased modestly.

Price declines are expected for papergrade pulp and fine paper product lines in the coming months. However, the company expects that minimal scheduled maintenance downtime will result in lower costs and higher third quarter earnings.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                    2Q 2005        1Q 2005       Change
  Contribution to earnings
   (millions)                           $99            $48          $51

Earnings increased over first quarter levels primarily due to a seasonal increase in box shipments and lower manufacturing costs at the containerboard mills. Lower manufacturing costs were due primarily to increased production in the second quarter when compared to first quarter. The first quarter included a pre-tax charge of $12 million associated with the settlement of a linerboard antitrust lawsuit and $4 million for costs associated with the closure of a packaging facility in Bowling Green, Ky.

The company expects third quarter earnings to decrease as both containerboard and box prices are currently under pressure.

  REAL ESTATE AND RELATED ASSETS
                                     2Q 2005        1Q 2005       Change
  Contribution to earnings
   (millions)                           $156           $183        ($27)

Earnings declined as expected from the prior quarter as contributions from land sales declined $36 million. Single-family home closings and average prices increased. The backlog of homes sold, but not closed, represents approximately six months' sales.

The company's key real estate markets continue to be strong and Weyerhaeuser expects single-family closings to remain steady in the third quarter.

OTHER

The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 21 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: 7576930) within North America and at 1-706-645-9291 (access code: 7576930) from outside North America.

The call may also be accessed through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ .

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 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, supply, raw material and freight costs, reduced timber harvest in the third quarter maintenance downtime, and land 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 27, March 28, June 26, June 27,
                                          2005     2004     2005     2004
  Net sales and revenues:
     Weyerhaeuser (1)                    $4,749   $4,442   $5,190   $5,204
     Real Estate and Related Assets         655      469      648      524
  Total net sales and revenues            5,404    4,911    5,838    5,728

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold             3,652    3,432    3,974    3,790
       Depreciation, amortization and
        fee stumpage                        325      317      326      318
       Selling expenses                     118      120      119      122
       General and administrative
        expenses                            223      239      218      233
       Research and development expenses     14       12       12       13
       Taxes other than payroll and
        income taxes                         46       48       48       47
       Charges for integration and
        restructuring                         5       15        4       13
       Charges for closure of facilities      5        4        3       --
       Other operating costs, net (2)(3)      9       17     (40)       43
                                          4,397    4,204    4,664    4,579
     Real Estate and Related Assets:
       Costs and operating expenses         426      321      441      381
       Depreciation and amortization          3        2        4        4
       Selling expenses                      33       27       36       30
       General and administrative
        expenses                             24       17       25       19
       Taxes other than payroll and
        income taxes                          1        1       --       --
       Other operating costs, net            --        1      (2)        1
                                            487      369      504      435
  Total costs and expenses                4,884    4,573    5,168    5,014

  Operating income                          520      338      670      714

  Interest expense and other:
     Weyerhaeuser:
       Interest expense incurred (4)      (196)    (195)    (179)    (218)
       Less interest capitalized             --        3        2        1
       Equity in income (loss) of
        affiliates                           --       --        4        7
       Interest income and other             27        3       20        5
     Real Estate and Related Assets:
       Interest expense incurred           (14)     (15)      (14)    (14)
       Less interest capitalized             14       15       14       14
       Equity in income of
        unconsolidated entities              10        9       13       20
       Interest income and other              5       11      (2)        9

  Earnings before income taxes              366      169      528      538
  Income taxes (5)                        (128)      (57)    (229)   (183)
  Earnings from continuing operations       238      112      299      355
  Earnings from discontinued operations,
   net of taxes (6)                           1        9      121       14
  Net earnings                             $239     $121     $420     $369


  Basic net earnings per share:
     Continuing operations                $0.98    $0.50    $1.23    $1.51
     Discontinued operations                 --     0.04     0.49     0.06
     Net earnings per share               $0.98    $0.54    $1.72    $1.57

  Diluted net earnings per share:
     Continuing operations                $0.98    $0.50    $1.22    $1.51
     Discontinued operations                 --     0.04     0.49     0.06
     Net earnings per share               $0.98    $0.54    $1.71    $1.57

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

  Weighted average shares outstanding
   (in thousands)
     Basic                              242,863  223,728  244,702  234,494
     Diluted                            244,185  225,072  245,881  235,475


                                                                     Year
  CONSOLIDATED EARNINGS           Year-to-date      Q3       Q4      ended
     (in millions)             June 26, June 27, Sept. 26, Dec. 26, Dec. 26,
                                 2005     2004     2004     2004     2004
  Net sales and revenues:
     Weyerhaeuser (1)           $9,939    $9,646   $5,088   $4,804  $19,538
     Real Estate and Related
      Assets                     1,303       993      591      911    2,495
  Total net sales and revenues  11,242    10,639    5,679    5,715   22,033

  Costs and expenses:
     Weyerhaeuser:
       Costs of products sold    7,626     7,222    3,758    3,735   14,715
       Depreciation,
        amortization and fee
        stumpage                   651       635      316      320    1,271
       Selling expenses            237       242      123      119      484
       General and
        administrative expenses    441       472      226      247      945
       Research and development
        expenses                    26        25       13       17       55
       Taxes other than payroll
        and income taxes            94        95       51       48      194
       Charges for integration
        and restructuring            9        28        8        3       39
       Charges for closure of
        facilities                   8         4       13        0       17
       Other operating costs,
        net  (2) (3)              (31)        60    (300)       36     (204)
                                 9,061     8,783    4,208    4,525   17,516
     Real Estate and Related
      Assets:
       Costs and operating
        expenses                   867       702      414      647    1,763
       Depreciation and
        amortization                 7         6        3        5       14
       Selling expenses             69        57       31       37      125
       General and
        administrative expenses     49        36       19       26       81
       Taxes other than payroll
        and income taxes             1         1        1        0        2
       Other operating costs,
        net                        (2)         2     (19)        0      (17)
                                   991       804      449      715    1,968
  Total costs and expenses      10,052     9,587    4,657    5,240   19,484

  Operating income               1,190     1,052    1,022      475    2,549

  Interest expense and other:
     Weyerhaeuser:
       Interest expense
        incurred (4)             (375)      (413)   (184)     (241)    (838)
       Less interest
        capitalized                  2         4        0        5        9
       Equity in income (loss)
        of affiliates                4         7        4        3       14
       Interest income and
        other                       47         8        7        9       24
     Real Estate and Related
      Assets:
       Interest expense
        incurred                  (28)       (29)    (14)      (14)     (57)
       Less interest
        capitalized                 28        29       14       14       57
       Equity in income of
        unconsolidated
        entities                    23        29       12       11       52
       Interest income and
        other                        3        20        1       10       31

  Earnings before income taxes     894       707      862      272    1,841
  Income taxes (5)               (357)      (240)   (293)      (94)    (627)
  Earnings from continuing
   operations                      537       467      569      178    1,214
  Earnings from discontinued
   operations, net of taxes (6)    122        23       25       21       69
  Net earnings                    $659      $490     $594     $199   $1,283


  Basic net earnings per share:
     Continuing operations       $2.20     $2.04    $2.36    $0.73    $5.16
     Discontinued operations      0.50      0.10     0.10     0.09     0.29
     Net earnings per share      $2.70     $2.14    $2.46    $0.82    $5.45

  Diluted net earnings per
   share:
     Continuing operations       $2.19     $2.03    $2.35    $0.73    $5.14
     Discontinued operations      0.50      0.10     0.10     0.09     0.29
     Net earnings per share      $2.69     $2.13    $2.45    $0.82    $5.43

  Dividends paid per share       $0.90     $0.80    $0.40    $0.40    $1.60

  Weighted average shares
   outstanding (in thousands)
     Basic                     243,782   229,111  241,621  242,114  235,453
     Diluted                   244,959   230,242  242,649  243,472  236,546

(1) The first and second quarters of 2005 include charges of $22 million and $27 million, respectively, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million and $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti-dumping duties and related costs.

(2) The first and second quarters of 2005 include net foreign exchange gains (losses) of $13 million and ($13) million, respectively, for a year-to-date net effect of zero. The first, second, third and fourth quarters of 2004 include net foreign exchange gains (losses) of ($9) million, ($7) million, $16 million and $27 million, respectively, for a total year-to-date net gain of $27 million. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates.

(3) The first quarter of 2005 includes a $12 million charge for the settlement of a linerboard antitrust lawsuit. The second quarter of 2005 includes an $18 million charge related to alder litigation and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The 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 of 2004 includes a $16 million charge resulting from an adverse judgment in a lawsuit involving the market for Pacific Northwest alder logs. The third quarter of 2004 includes a $271 million gain on the sale of timberlands in Georgia, a $25 million gain from a tenure reallocation agreement with the British Columbia government, and a $20 million gain due to the reduction of the reserve for hardboard siding claims. The fourth quarter of 2004 includes a net gain of $36 million on the sale of facilities, and charges of $29 million for the impairment of assets in the company's European manufacturing operations, $24 million recognized in connection with a change in the method of estimating workers' compensation liabilities and $23 million for the net book value of technology donated to a university.

(4) The second and fourth quarters of 2004 include charges of $21 million and $52 million, respectively, for the early extinguishment of debt.

(5) The second quarter of 2005 includes a charge of $44 million related to a planned repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004.

(6) Includes the net operating results of the company's operations in coastal British Columbia. The second quarter of 2005 also includes a gain of $110 million, including a tax benefit of $46 million, related to the sale of these operations.

  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues                       Q1                 Q2
  (in millions):                       March 27, March 28, June 26, June 27,
                                         2005     2004      2005     2004
  Timberlands:
     Logs                                $182      $193     $195     $211
     Other products                        82        58       63       66
                                          264       251      258      277
  Wood Products:
     Softwood lumber                      892       819    1,032    1,106
     Plywood                              183       221      196      263
     Veneer                                13        11       10       12
     Composite panels                     120       108      132      133
     OSB                                  288       338      306      456
     Hardwood lumber                       94        90      102      100
     Engineered I-Joists                  160       134      213      178
     Engineered Solid Section             190       148      241      194
     Logs                                  27        23       24       38
     Other products                       272       255      339      312
                                        2,239     2,147    2,595    2,792
  Cellulose Fiber and White Papers:
     Pulp                                 376       339      355      371
     Paper                                599       535      611      538
     Coated groundwood                     42        36       47       37
     Liquid packaging board                47        49       52       53
     Other products                        14        10       12       13
                                        1,078       969    1,077    1,012

  Containerboard, Packaging and
   Recycling:
     Containerboard                       117        81      101       80
     Packaging                            898       853      969      918
     Recycling                             92        80       92       91
     Bags                                  22        19       21       18
     Other products                        34        33       40       34
                                        1,163     1,066    1,223    1,141

  Real Estate and Related Assets          655       469      648      524

  Corporate and Other                     149       135      151      147

  Less sales of discontinued operations  (144)     (126)    (114)    (165)

                                       $5,404    $4,911   $5,838   $5,728


  Contribution (charge) to earnings:          Q1                 Q2
     (in millions)                    March 27, March 28, June 26,  June 27,
                                         2005      2004     2005     2004

  Timberlands (1) (2)                    $200      $159     $210     $201
  Wood Products (3) (4) (5) (6)           131       173      204      448
  Cellulose Fiber and White Papers (7)     19       (25)      16       14
  Containerboard, Packaging and
   Recycling (8) (9)                       48        24       99       62
  Real Estate and Related Assets (10)     183       120      156      118
  Corporate and Other  (11) (12) (13)     (17)      (76)      99      (67)
                                         $564      $375     $784     $776


  Net sales and revenues                                              Year
   (in millions):                Year-to-date      Q3        Q4      ended
                              June 26, June 27, Sept. 26, Dec. 26,  Dec. 26,
                                2005     2004     2004      2004      2004
  Timberlands:
     Logs                        $377     $404     $197     $221      $822
     Other products               145      124       51      105       280
                                  522      528      248      326     1,102
  Wood Products:
     Softwood lumber            1,924    1,925    1,089      901     3,915
     Plywood                      379      484      237      208       929
     Veneer                        23       23       11       10        44
     Composite panels             252      241      138      122       501
     OSB                          594      794      341      255     1,390
     Hardwood lumber              196      190       89       86       365
     Engineered I-Joists          373      312      189      177       678
     Engineered Solid Section     431      342      203      189       734
     Logs                          51       61       32       32       125
     Other products               611      567      315      280     1,162
                                4,834    4,939    2,644    2,260     9,843
  Cellulose Fiber and White
   Papers:
     Pulp                         731      710      381      380     1,471
     Paper                      1,210    1,073      583      570     2,226
     Coated groundwood             89       73       39       44       156
     Liquid packaging board        99      102       53       53       208
     Other products                26       23       15       16        54
                                2,155    1,981    1,071    1,063     4,115

  Containerboard, Packaging and
   Recycling:
     Containerboard               218      161       94      113       368
     Packaging                  1,867    1,771      916      897     3,584
     Recycling                    184      171       87       89       347
     Bags                          43       37       20       23        80
     Other products                74       67       43       46       156
                                2,386    2,207    1,160    1,168     4,535

  Real Estate and
   Related Assets               1,303      993      591      911     2,495

  Corporate and Other             300      282      135      158       575

  Less sales of discontinued
   operations                    (258)    (291)    (170)    (171)     (632)

                              $11,242  $10,639   $5,679   $5,715   $22,033

  Contribution (charge) to                                            Year
   earnings:                    Year-to-date       Q3        Q4      ended
     (in millions)            June 26, June 27, Sept. 26, Dec. 26,  Dec. 26,
                                 2005    2004     2004      2004      2004

  Timberlands (1) (2)            $410     $360     $450     $217    $1,027
  Wood Products (3) (4) (5) (6)   335      621      362       72     1,055
  Cellulose Fiber and White
   Papers (7)                      35      (11)      80       35       104
  Containerboard, Packaging
   and Recycling (8) (9)          147       86       82       81       249
  Real Estate and
   Related Assets (10)            339      238      155      217       610
  Corporate and
   Other  (11) (12) (13)           82     (143)     (45)     (83)     (271)
                               $1,348   $1,151   $1,084     $539    $2,774

(1) The 2004 third quarter includes a $271 million gain on the sale of timberlands in Georgia and a $5 million gain from a tenure reallocation agreement with the British Columbia government.

(2) The first quarter of 2005 includes $3 million of charges for the closure of facilities.

(3) The first and second quarters of 2005 include charges of $22 million and $27 million, respectively, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million and $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti- dumping duties and related costs.

(4) The second quarter of 2005 includes an $18 million charge related to alder litigation. 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 third quarter of 2004 includes a $20 million gain due to the reduction of the reserve for hardboard siding claims.

(5) The second quarter of 2005 includes a $6 million gain related to a tenure reallocation agreement with the British Columbia government. The third quarter of 2004 includes a $20 million gain from a tenure reallocation agreement with the British Columbia government.

(6) The first and second quarters of 2005 include charges of $1 million and $1 million, respectively, associated with the sale or closure of facilities. 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 third quarter of 2004 includes a $2 million net gain on the sale or closure of facilities. The fourth quarter of 2004 includes charges of $3 million for the closure of facilities and a gain of $36 million on the sale of facilities.

(7) The 2004 second quarter includes a $2 million asset impairment charge related to assets held for sale.

(8) The first quarter of 2005 includes a $12 million charge associated with the settlement of a linerboard antitrust lawsuit.

(9) The first and second quarters of 2005 include charges of $4 million and $2 million, respectively, for the closure of facilities. 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 third quarter of 2004 includes closure costs of $12 million, including a pension termination charge of $9 million related to a closure that occurred in a previous year. The fourth quarter of 2004 includes a credit of $3 million for the reversal of closure costs accrued in prior years.

(10) The first and second quarters of 2005 include net gains on land and lot sales of $57 million and $21 million, respectively. The first quarter of 2004 includes a $22 million gain on a land sale. The third quarter of 2004 includes a gain of $18 million on the sale of a multi-family site. The fourth quarter of 2004 includes a $24 million net gain on land and lot sales.

(11) The second quarter of 2005 includes a $64 million pretax gain on the sale of the company's operations in coastal British Columbia and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The fourth quarter of 2004 includes a $7 million gain for the settlement of an insurance claim relating to the Cemwood litigation.

(12) The fourth quarter of 2004 includes charges of $29 million for the impairment of assets in the company's European manufacturing operations, $24 million recognized in connection with a change in the method of estimating workers' compensation liabilities and $23 million for the net book value of technology donated to a university.

(13) The first and second quarters of 2005 include net foreign exchange gains (losses) of $13 million and ($13) million, respectivley, for a year-to- date net effect of zero. The first, second, third and fourth quarters of 2004 include net foreign exchange gains (losses) of ($10) million, ($6) million, $16 million and $26 million, respectivley, for a $26 million net gain year-to- date. 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 27, March 28, June 26, June 27,
                                         2005      2004      2005     2004
  Timberlands (thousands):
     Logs - cunits                        864     1,044       863      954

  Wood Products (millions):
     Softwood lumber - board feet       2,057     2,054     2,355    2,393
     Plywood  - square feet (3/8")        537       642       600      668
     Veneer - square feet (3/8")           60        55        59       60
     Composite panels - square feet
      (3/4")                              299       301       317      324
     Oriented strand board - square
      feet (3/8")                         908       981     1,041    1,143
     Hardwood lumber - board feet         102       103       114      117
     Engineered I-Joists - LF             108       108       138      132
     Engineered Solid Section - CF          9         8        10       10
     Logs - cunits (in thousands)         187       170       177      279

  Cellulose Fiber and White Papers
   (thousands):
     Pulp - air-dry metric tons           629       624       587      642
     Paper - tons                         736       741       742      718
     Coated groundwood - tons              58        59        62       61
     Liquid packaging board  - tons        60        66        65       72
     Paper converting - tons              475       467       494      459

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons                295       250       259      221
     Packaging - MSF                   17,354    18,146    18,600   18,917
     Recycling - tons                     692       678       695      701
     Kraft bags and sacks - tons           23        24        22       23

  Real Estate and Related Assets:
     Single-family homes sold           1,378     1,506     1,525    1,564
     Single-family homes closed         1,189     1,065     1,279    1,216
     Single-family homes sold but not
      closed at end of period           2,561     2,702     2,807    3,050


  Total production volumes:                   Q1                  Q2
                                      March 27, March 28,  June 26, June 27,
                                         2005      2004      2005     2004
  Timberlands (thousands):
     Fee Depletion  - cunits            2,248     2,265     2,231    2,404

  Wood Products (millions):
     Softwood lumber - board feet       1,821     1,760     1,869    1,881
     Plywood - square feet (3/8")         303       422       302      405
     Veneer - square feet (3/8") (1)      517       585       529      609
     Composite panels - square feet
      (3/4")                              267       268       282      281
     Oriented strand board - square
      feet (3/8")                       1,007     1,031     1,019    1,056
     Hardwood lumber - board feet          92        89        96       96
     Engineered I-Joists - LF             133       110       132      124
     Engineered Solid Section - CF         11         9        10       11

  Cellulose Fiber and White Papers
   (thousands):
     Pulp - air-dry metric tons           621       619       614      636
     Paper - tons (2)                     763       743       752      736
     Coated groundwood - tons              55        55        59       61
     Liquid packaging board  - tons        60        61        64       67
     Paper converting - tons              475       460       487      442

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons (3)          1,503     1,503     1,581    1,598
     Packaging - MSF                   18,628    19,493    19,915   20,208
     Recycling - tons (4)               1,624     1,607     1,673    1,707
     Kraft bags and sacks - tons           23        24        22       23


                                                                     Year
  Third party sales volumes:    Year-to-date       Q3        Q4     ended
                              June 26, June 27, Sept. 26, Dec. 26,  Dec. 26,
                                2005     2004     2004      2004     2004
  Timberlands (thousands):
     Logs - cunits             1,727    1,998      904     1,018    3,920

  Wood Products (millions):
     Softwood lumber -
      boardfeet                4,412    4,447    2,299     2,144    8,890
     Plywood  -
      squarefeet(3/8")         1,137    1,310      672       647    2,629
     Veneer - square feet
      (3/8")                     119      115       55        55      225
     Composite panels -
      square feet (3/4")         616      625      315       294    1,234
     Oriented strand board -
      square feet (3/8")       1,949    2,124    1,078     1,011    4,213
     Hardwood lumber -
      board feet                 216      220      102        95      417
     Engineered I-Joists - LF    246      240      133       123      496
     Engineered Solid Section -
      CF                          19       18       10         9       37
     Logs - cunits
      (in thousands)             364      449      237       248      934

  Cellulose Fiber and White Papers
   (thousands):
     Pulp - air-dry
      metric tons              1,216    1,266      633       659    2,558
     Paper - tons              1,478    1,459      737       680    2,876
     Coated groundwood - tons    120      120       60        63      243
     Liquid packaging board -
      tons                       125      138       69        69      276
     Paper converting - tons     969      926      470       443    1,839

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons       554      471      245       285    1,001
     Packaging - MSF          35,954   37,063   18,287    17,535   72,885
     Recycling - tons          1,387    1,379      645       670    2,694
     Kraft bags and sacks -
      tons                        45       47       23        25       95

  Real Estate and Related Assets:
     Single-family homes
      sold                     2,903    3,070    1,313       992    5,375
     Single-family homes
      closed                   2,468    2,281    1,345     1,638    5,264
     Single-family homes sold
      but not closed at
      end of period            2,807    3,050    3,018     2,372    2,372


  Total production volumes:                                          Year
                                Year-to-date       Q3        Q4     ended
                              June 26, June 27, Sept. 26, Dec. 26,  Dec. 26,
                                2005     2004     2004      2004     2004
  Timberlands (thousands):
     Fee Depletion  - cunits   4,479    4,669    2,189     2,155    9,013

  Wood Products (millions):
     Softwood lumber -
      boardfeet                3,690    3,641    1,819     1,727    7,187
     Plywood -
      square feet (3/8")         605      827      405       396    1,628
     Veneer-
      square feet (3/8")(1)    1,046    1,194      592       600    2,386
     Composite panels -
      square feet (3/4")         549      549      272       245    1,066
     Oriented strand board -
      square feet (3/8")       2,026    2,087    1,022       972    4,081
     Hardwood lumber -
      board feet                 188      185       84        80      349
     Engineered I-Joists - LF    265      234      136       134      504
     Engineered Solid Section -
      CF                          21       20       11        10       42

  Cellulose Fiber and White Papers
   (thousands):
     Pulp - air-dry metric
      tons                     1,235    1,255      652       639    2,546
     Paper - tons (2)          1,515    1,479      766       761    3,006
     Coated groundwood - tons    114      116       62        62      240
     Liquid packaging board -
      tons                       124      128       71        67      266
     Paper converting - tons     962      902      471       465    1,838

  Containerboard, Packaging and
   Recycling (thousands):
     Containerboard - tons(3)  3,084    3,101    1,604     1,586    6,291
     Packaging - MSF          38,543   39,701   19,473    18,648   77,822
     Recycling - tons (4)      3,297    3,314    1,703     1,701    6,718
     Kraft bags and sacks -
      tons                        45       47       23        24       94

(1) Veneer production represents lathe production and includes volumes that are further processed into plywood and engineered lumber products by company mills.

(2) Paper production includes unprocessed rolls and converted paper volumes.

(3) Containerboard production represents machine production and includes volumes that are further processed into packaging and kraft bags and sacks by company facilities.

(4) Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.

  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION

  CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                   (in millions)
                                         March 27,    June 26,    Dec. 26,
  Assets                                   2005         2005        2004

  Weyerhaeuser
     Current assets:
       Cash and short-term investments       $402      $1,704      $1,044
       Receivables, less allowances         1,840       2,008       1,558
       Inventories                          2,122       2,018       1,891
       Prepaid expenses                       634         612         592
       Assets of business held for
        sale                                1,119          --       1,129
             Total current assets           6,117       6,342       6,214
     Property and equipment                11,447      11,175      11,672
     Construction in progress                 324         451         268
     Timber and timberlands at cost,
      less fee stumpage charged
       to disposals                         3,712       3,709       3,733
     Investments in and advances to
      equity affiliates                       491         495         489
     Goodwill                               2,997       2,977       2,996
     Deferred pension and other assets      1,197       1,249       1,201
     Restricted assets held by special
      purpose entitites                       914         916         909
                                           27,199      27,314      27,482

  Real Estate and Related Assets
     Cash and short-term investments            5          11         153
     Receivables, less allowances              60          57          43
     Real estate and land for sale and
      development                           2,083       2,333       1,947
     Other assets                             323         278         329
                                            2,471       2,679       2,472

     Total assets                         $29,670     $29,993     $29,954

  Liabilities and Shareholders' Interest

  Weyerhaeuser
     Current liabilities:
       Notes payable and commercial
        paper                                  $2          $2          $3
       Current maturities of long-term
        debt                                   96          75         489
       Accounts payable                     1,150       1,225       1,159
       Accrued liabilities                  1,313       1,655       1,432
       Liabilities of business held
        for sale                              308          --         297
             Total current liabilities      2,869       2,957       3,380
     Long-term debt                         9,263       9,076       9,277
     Deferred income taxes                  4,315       4,320       4,312
     Deferred pension, other
      postretirement benefits
      and other liabilities                 1,494       1,560       1,500
     Liabilities not owned,
      consolidated under FIN 46R              820         784         815
                                           18,761      18,697      19,284
  Real Estate and Related Assets
     Notes payable and commercial
      paper                                     2           5           2
     Long-term debt                           869         854         867
     Other liabilities                        533         588         546
                                            1,404       1,447       1,415
     Total liabilities                     20,165      20,144      20,699

  Shareholders' interest                    9,505       9,849       9,255

     Total liabilities and
      shareholders' interest              $29,670     $29,993     $29,954


  STATEMENT OF CASH FLOWS                      Q1                 Q2
  SELECTED INFORMATION (unaudited)     March 27, March 28, June 26, June 27,
      (in millions)                      2005      2004      2005     2004
  (Weyerhaeuser only, excludes Real
   Estate & Related Assets)

      Net cash from operations          $(203)     $(89)      $713     $787
      Cash paid for property and
       equipment                         (117)      (79)      (196)    (80)
      Cash paid for timberlands
       reforestation                      (12)      (12)        (6)     (6)
      Cash received from issuances
       of debt                              --        --          1      --
      Revolving credit facilities,
       notes and commercial paper
        borrowings, net                     19        67         23     (80)
      Payments on debt                   (404)      (60)       (206)   (813)
      Proceeds from equity offering         --        --         --      954
      Proceeds from the sale of BC
       Coastal operations                   --        --      1,107       --


  STATEMENT OF CASH FLOWS                                            Year
  SELECTED INFORMATION        Year-to-date       Q3         Q4      ended
   (unaudited)              June 26, June 27, Sept. 26,  Dec. 26,  Dec. 26,
   (in millions)              2005    2004      2004       2004      2004
   (Weyerhaeuser only,
    excludes Real Estate &
    Related Assets)

     Net cash from
      operations               $510    $698      $592       $745    $2,035
     Cash paid for property
      and equipment           (313)   (159)      (93)      (222)     (474)
     Cash paid for
      timberlands re-
      forestation              (18)    (18)       (5)        (7)      (30)
     Cash received from
      issuances of debt           1      --        --          1         1
     Revolving credit
      facilities, notes
      and commercial paper
      borrowings, net            42    (13)       (6)        35        16
     Payments on debt          (610)  (873)     (253)      (742)   (1,868)
     Proceeds from equity
      offering                   --    954         --         --      954
     Proceeds from the sale
      of BC Coastal
      operations              1,107     --         --         --       --
Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com

SOURCE: Weyerhaeuser Company

CONTACT: Media - Bruce Amundson, +1-253-924-3047, or Analysts - Kathryn
McAuley, +1-253-924-2058, both of Weyerhaeuser

Web site: http://www.weyerhaeuser.com/

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