Newsroom
Weyerhaeuser Reports First Quarter Earnings, Including Fine Paper Business Goodwill Impairment
PRNewswire-FirstCall
FEDERAL WAY, Wash.
Apr 26, 2006
Weyerhaeuser Company (NYSE: WY) today reported a net loss of $580 million for first quarter 2006, or $2.36 per diluted share, on net sales of $5.4 billion. This includes an impairment of goodwill associated with the company's fine paper business.
Excluding the goodwill impairment of $746 million, the company earned $166 million, or 67 cents per diluted share. This compares with net earnings of $239 million, or 98 cents per diluted share, on net sales of $5.4 billion for the same period last year.
The company also announced today that, as a part of its previously announced strategic review, it is considering alternatives for its fine paper business. The alternatives range from continuing to hold and operate the assets to a possible sale or other disposition. The company said it is in active discussions with several parties, but there is no assurance that these discussions will lead to an agreement or result in a transaction.
"This announcement marks an important milestone in our ongoing strategic review," said Steven R. Rogel, chairman, president and chief executive officer. "We remain committed to seeking the best alternatives to create value for shareholders."
First quarter 2006 earnings include the following after-tax items:
o A charge of $746 million, or $3.03 per diluted share, for the estimated
amount of a write-off of goodwill associated with the fine paper
business. This estimate represents the full amount of goodwill
associated with that business. This estimate is undergoing further
evaluation and will be adjusted, if necessary, prior to the filing of
the company's 10-Q.
o Income of $12 million in the Real Estate business, or 5 cents per
diluted share, associated with insurance recoveries and recognition of
deferred income in connection with partnership restructurings.
o A charge of $17 million, or 7 cents per diluted share, for foreign
exchange losses.
o A charge of $14 million, or 6 cents per diluted share for stock-based
compensation. The company adopted the provisions of FASB Statement
123R, the stock-based compensation accounting standard, in the first
quarter.
First quarter 2005 earnings include the following after-tax items:
o A charge of $8 million, or 3 cents per diluted share, associated with
the settlement of a linerboard antitrust lawsuit.
o A charge of $5 million, or 2 cents per diluted share associated with the
closure of facilities.
"During the quarter we began to see some improvement in market conditions for our cellulose fiber, fine paper, containerboard and packaging businesses which resulted in price improvement in the first quarter," said Steven R. Rogel, chairman, president and chief executive officer. "We believe this trend will continue and have a positive effect upon our second quarter earnings."
SUMMARY OF FIRST QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 1Q 2006 1Q 2005 Change
Net earnings (loss) ($580) $239 ($819)
Earnings (loss) per diluted share ($2.36) $0.98 ($3.34)
Net sales $5,376 $5,371 $5
SEGMENT RESULTS FOR FIRST QUARTER
(Contributions to Pre-Tax Earnings)
Millions 1Q 2006 1Q 2005 Change
Timberlands $198 $200 ($2)
Wood Products $117 $131 ($14)
Cellulose Fiber and White Papers ($763) $19 ($782)
Containerboard, Packaging and Recycling $22 $48 ($26)
Real Estate and Related Assets $172 $183 ($11)
TIMBERLANDS
1Q 2006 4Q 2005 Change
Contribution to pre-tax earnings (millions) $198 $183 $15
First quarter earnings increased slightly from the fourth quarter 2005 due to increasing Western log prices and lower first quarter operating costs in the West and South. Fourth quarter 2005 included a $6 million pre-tax charge due to the effects of Hurricane Katrina.
Weyerhaeuser expects second quarter market conditions and earnings to be similar to first quarter.
WOOD PRODUCTS
1Q 2006 4Q 2005 Change
Contribution to pre-tax earnings (millions) $117 $26 $91
Earnings in the first quarter of 2006 were comparable to fourth quarter 2005 after excluding $91 million of pre-tax charges associated with facility closures taken in the fourth quarter of 2005. Construction activity remained healthy during the first quarter and prices were mixed.
Prices for oriented strand board were slightly lower than fourth quarter 2005 and shipment volumes were comparable.
Lumber prices trended up during the quarter. However, shipment volume decreased 7 percent.
Prices and shipment volumes for engineered lumber products were comparable to the prior quarter.
Manufacturing costs for lumber products remained constant quarter to quarter, and manufacturing costs for engineered products declined slightly primarily due to higher productivity.
The company incurred $11 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the first quarter of 2006, compared with $16 million in the fourth quarter of 2005.
Weyerhaeuser expects higher second quarter earnings compared with first quarter due to seasonal increase in building activity and stable raw materials and manufacturing costs.
CELLULOSE FIBER AND WHITE PAPERS
1Q 2006 4Q 2005 Change
Contribution (charge)
to pre-tax earnings (millions) ($763) ($477) ($286)
First quarter includes a goodwill impairment charge of $746 million. Fourth quarter 2005 includes closure related costs of $427 million for the Cosmopolis, Wash. pulp operations; Prince Albert, Saskatchewan pulp and paper operations; and a paper machine at Dryden, Ontario.
Excluding the charges, first quarter performance improved from fourth quarter 2005.
Fine paper and cellulose fiber products both experienced stronger market conditions, with prices increasing on a quarter-to-quarter basis. Fine paper sales volumes declined modestly with the January closure of Prince Albert paper operations while cellulose fiber volume improved slightly. Improved productivity and lower freight costs were offset by increases in raw materials and chemicals. Energy costs remained stable at their high level.
Weyerhaeuser expects the segment to show improved earnings in second quarter despite a seasonal increase in annual scheduled maintenance.
CONTAINERBOARD, PACKAGING AND RECYCLING
1Q 2006 4Q 2005 Change
Contribution (charge)
to pre-tax earnings (millions) $22 ($188) $210
Earnings improved from the fourth quarter due to containerboard and packaging price increases. Packaging shipments declined from the strong fourth quarter levels, but were higher compared with the first quarter of last year. Fourth quarter 2005 results included pre-tax charges of $130 million for facility closures and $38 million for a settlement of containerboard antitrust lawsuits.
The company expects continued improvement in earnings from this segment in the second quarter.
REAL ESTATE AND RELATED ASSETS
1Q 2006 4Q 2005 Change
Contribution to pre-tax earnings (millions) $172 $250 ($78)
Earnings decreased from fourth quarter due to decreased margins and seasonally lower single-family home closings. The number of single-family homes closed in first quarter declined 40 percent as compared to fourth quarter. First quarter results included land sales earnings of approximately $33 million and $17 million from insurance recoveries and partnership restructurings. Fourth quarter results included a $33 million pre-tax impairment charge related to unimproved land in Northern California. The backlog of homes sold, but not closed, at the end of the first quarter represents more than five months' sales. This level is similar to the backlog at the end of the fourth quarter.
Weyerhaeuser expects increased single-family closing activity in the second quarter. Total real estate and related earnings, however, are expected to decline slightly from the first quarter due to lower land sales.
The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 26 to discuss the first quarter results.
To access the conference call from within North America, dial 1-888-221- 5699 at least 15 minutes before the call. Those calling from outside North America should dial 1-706-643-3795. Replays will be available for one week at 1-800-642-1687 (access code - 7766499) from within North America and at 1-706- 645-9291 (access code - 7766499) from outside North America.
The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ by clicking on the "Q1 2006 Earnings Conference Call" link.
The webcast is available through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com/, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected site, StreetEvents (http://www.streetevents.com/).
Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were $22.6 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 second quarter 2006; expected earnings and performance of the company's business segments during the second quarter 2006, demand and pricing for the company's products in the second quarter 2006, stable raw material and manufacturing costs in the second quarter 2006, seasonal increase in building activity in the second quarter of 2006, seasonal increase in annual maintenance outages in the second quarter 2006, increased single-family housing closings in second quarter 2006, lower land sales in the second quarter of 2006, the completion of a transaction involving the fine paper business; and related matters. 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:
o The effect of general economic conditions, including the level of
interest rates and housing starts;
o Market demand for the company's products, which may be tied to the
relative strength of various U.S. business segments;
o Energy prices;
o Raw material prices;
o Chemical prices;
o Performance of the company's manufacturing operations including
unexpected maintenance requirements;
o The successful execution of internal performance plans;
o The level of competition from domestic and foreign producers;
o The effect of forestry, land use, environmental and other governmental
regulations, and changes in accounting regulations;
o The effect of weather;
o The risk of loss from fires, floods, windstorms, hurricanes and other
natural disasters;
o Transportation costs;
o Legal proceedings;
o The effect of timing of retirements and changes in the market price of
company stock on charges for stock-based compensation; and
o Performance of pension fund investments and related derivatives.
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 anti-dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors could cause or contribute to actual results differing materially from such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will occur, or if any of them occurs, what effect they will have on the company's results of operations or financial condition. The company expressly declines any obligation to publicly revise any forward-looking statements that have been made to reflect the occurrence of events after the date of this news release.
For more information contact:
Media - Bruce Amundson (253) 924-3047
Analysts - Kathryn McAuley (253) 924-2058
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
(in millions)
Q1 Q2 Q3 Q4 Year End
___________________ ________ ________ ________ ________
March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
2006 2005 2005 2005 2005 2005
_________ _________ ________ ________ ________ ________
Net sales and revenues:
Weyerhaeuser (1) $4,686 $4,716 $5,160 $4,986 $4,852 $19,714
Real Estate
and Related Assets 690 655 648 596 1,016 2,915
Total net sales
and revenues 5,376 5,371 5,808 5,582 5,868 22,629
Costs and expenses:
Weyerhaeuser:
Costs of
products sold 3,719 3,621 3,947 3,912 3,980 15,460
Depreciation,
depletion and
amortization 312 323 325 327 332 1,307
Selling expenses 111 117 118 118 108 461
General and
administrative
expenses 257 222 218 236 223 899
Research and
development expenses 16 14 12 18 17 61
Taxes other than
payroll and
income taxes 44 46 48 69 16 179
Charges for
integration and
restructuring -- 5 4 2 10 21
Charges for closure
of facilities 1 5 3 29 656 693
Impairment of
goodwill (2) 746 -- -- -- -- --
Other operating
costs, net (3)(4) 30 9 (40) (32) 3 (60)
5,236 4,362 4,635 4,679 5,345 19,021
Real Estate and
Related Assets:
Costs and operating
expenses (5) 481 426 441 401 677 1,945
Depreciation
and amortization 3 3 4 4 5 16
Selling expenses 37 33 36 36 46 151
General and
administrative
expenses 30 24 25 27 28 104
Taxes other than
payroll and
income taxes 1 1 -- 1 1 3
Other operating
costs, net (3) -- (2) (2) 1 (3)
Impairment of
long-lived assets -- -- -- -- 33 33
549 487 504 467 791 2,249
Total costs
and expenses 5,785 4,849 5,139 5,146 6,136 21,270
Operating income (409) 522 669 436 (268) 1,359
Interest expense and other:
Weyerhaeuser:
Interest expense
incurred (6) (152) (196) (179) (193) (171) (739)
Less interest
capitalized 16 -- 2 3 4 9
Interest income
and other 19 27 20 143 24 214
Equity in income
(loss) of
affiliates (7) 3 -- 4 2 (12) (6)
Real Estate and
Related Assets:
Interest expense
incurred (14) (14) (14) (13) (14) (55)
Less interest
capitalized 14 14 14 13 14 55
Interest income
and other 10 5 (2) 4 5 12
Equity in income
of unconsolidated
entities (8) 21 10 13 14 20 57
Earnings before
income taxes (492) 368 527 409 (398) 906
Income taxes (9) (88) (129) (228) (120) 153 (324)
Earnings from
continuing operations (580) 239 299 289 (245) 582
Earnings from
discontinued
operations,
net of taxes (10) -- -- 121 (4) 34 151
Net earnings $(580) $239 $420 $285 $(211) $733
Basic net earnings per share:
Continuing
operations $(2.36) $0.98 $1.23 $1.17 $(1.00) $2.38
Discontinued
operations -- -- 0.49 (0.01) 0.14 0.62
Net earnings
per share $(2.36) $0.98 $1.72 $1.16 $(0.86) $3.00
Diluted net earnings per share:
Continuing
operations $(2.36) $0.98 $1.22 $1.17 $(1.00) $2.36
Discontinued
operations -- -- 0.49 (0.01) 0.14 0.62
Net earnings
per share $(2.36) $0.98 $1.71 $1.16 $(0.86) $2.98
Dividends paid
per share $0.50 $0.40 $0.50 $0.50 $0.50 $1.90
Weighted average shares outstanding (in thousands)
Basic 245,794 242,863 244,702 245,009 245,215 244,447
Diluted 245,794 244,185 245,881 246,190 246,198 245,559
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS
(in millions)
Q1 2006 Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
(1) Countervailing and
anti-dumping duties
and related costs
per quarter were
charges of: $11 $22 $27 $19 $16 $84
(2) The first quarter of 2006 includes the estimated amount of a write-off
of goodwill associated with the fine paper business.
Q1 2006 Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
(3) Net foreign
exchange gains
(losses), primarily
from fluctuations
in Canadian and
New Zealand
exchange rates: $(26) $13 $(13) $37 $(21) $ 16
(4) 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 third quarter of 2005 includes a
$115 million gain on the sale of an investment in a joint venture.
The fourth quarter of 2005 includes a $38 million charge for the
settlement of linerboard antitrust litigation and $43 million of
income for the cumulative effect of a change to begin capitalizing
Weyerhaeuser interest to assets of Weyerhaeuser Real Estate Company.
(5) The first quarter of 2006 includes income of $8 million related to a
warranty insurance recovery.
(6) The third and fourth quarters of 2005 include charges of $21 million
and $15 million, respectively, for the early extinguishment of debt.
(7) The fourth quarter of 2005 includes a $15 million charge related to
the impairment of an investment in an equity affiliate.
(8) The first quarter of 2006 includes recognition of $10 million of
deferred income in connection with partnership restructurings.
(9) The second quarter of 2005 includes a charge of $44 million related to
the repatriation of $1.1 billion of eligible Canadian earnings under
the provisions of the American Jobs Creation Act of 2004. The third
quarter of 2005 includes a one-time tax benefit of $14 million related
to a change in the Ohio state income tax law.
(10) Includes the net operating results of the company's coastal British
Columbia and French composites operations. The second quarter of 2005
includes a gain of $110 million, including a tax benefit of $46
million, related to the sale of the coastal British Columbia
operations. The third quarter of 2005 includes a $1 million charge
related to the termination of pension plans associated with these
operations. The fourth quarter of 2005 includes a pretax gain of $57
million and related tax expense of $23 million associated with the
sale of the French composites operations.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions):
Q1 Q2 Q3 Q4 Year End
___________________ ________ ________ ________ ________
March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
2006 2005 2005 2005 2005 2005
_________ _________ ________ ________ ________ ________
Timberlands:
Logs $201 $182 $195 $188 $196 $761
Other products 62 82 63 65 76 286
263 264 258 253 272 1,047
Wood Products:
Softwood lumber 782 892 1,032 889 811 3,624
Plywood 135 183 196 184 172 735
Veneer 13 13 10 9 12 44
Composite panels 121 120 132 122 123 497
OSB 287 288 306 267 303 1,164
Hardwood lumber 99 94 102 95 99 390
Engineered I-Joists 183 160 213 202 181 756
Engineered Solid
Section 221 190 241 244 221 896
Logs 7 27 24 6 5 62
Other products 225 272 339 326 290 1,227
2,073 2,239 2,595 2,344 2,217 9,395
Cellulose Fiber and White Papers:
Pulp 394 376 355 381 370 1,482
Paper 613 599 611 604 603 2,417
Coated groundwood 40 42 47 45 46 180
Liquid packaging
board 46 47 52 50 54 203
Other products 14 14 12 16 12 54
1,107 1,078 1,077 1,096 1,085 4,336
Containerboard, Packaging and Recycling:
Containerboard 82 117 101 86 91 395
Packaging 911 898 969 929 914 3,710
Recycling 80 92 92 87 81 352
Bags 20 22 21 20 20 83
Other products 34 34 40 47 46 167
1,127 1,163 1,223 1,169 1,152 4,707
Real Estate and Related
Assets 690 655 648 596 1,016 2,915
Corporate and Other 116 149 151 146 154 600
Less sales of
discontinued
operations -- (177) (144) (22) (28) (371)
$5,376 $5,371 $5,808 $5,582 $5,868 $22,629
Contribution (charge) to earnings:
(in millions)
Q1 Q2 Q3 Q4 Year End
___________________ ________ ________ ________ ________
March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
2006 2005 2005 2005 2005 2005
_________ _________ ________ ________ ________ ________
Timberlands
(1)(2)(4) $198 $200 $210 $191 $183 $784
Wood
Products (1)(2)(5) 117 131 204 124 26 485
Cellulose Fiber
and White
Papers (1)(2)(6) (763) 19 16 (2) (477) (444)
Containerboard,
Packaging and
Recycling (1)(2)(7) 22 48 99 36 (188) (5)
Real Estate and
Related Assets (8) 172 183 156 145 250 734
Corporate and
Other (1)(2)(3)(9) (102) (17) 99 101 33 216
$(356) $564 $784 $595 $(173) $1,770
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO EARNINGS
(in millions)
(1) Closure charges by segment:
Q1 2006 Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
Timberlands $-- $ 3 $-- $-- $3 $6
Wood Products -- 1 1 6 91 99
Cellulose Fiber
and White Papers (1) -- -- 22 427 449
Containerboard,
Packaging and Recycling 2 4 2 1 130 137
Corporate and Other -- -- -- -- 5 5
$1 $8 $3 $29 $656 $696
The above closure charges for the first quarter and full year 2005 include
$3 million of costs incurred within the company's discontinued operations.
(2) Stock-based compensation charges (income) recognized by segment:
Q1 2006 Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
Timberlands $1 $-- $-- $-- $-- $--
Wood Products 2 -- -- -- -- --
Cellulose Fiber
and White Papers 1 -- -- -- -- --
Containerboard,
Packaging and Recycling 2 -- -- -- -- --
Corporate and Other 15 2 (6) 3 12 11
$21 $ 2 $(6) $3 $12 $11
Q1 2006 Q1 2005 Q2 2005 Q3 2005 Q4 2005 YE 2005
(3) Net foreign
exchange gains
(losses) included
in Corporate
and Other were: $(26) $13 $(12) $38 $(20) $ 19
(4) Additonal Timberlands notes:
(a) Hurricane related losses were $5 million in third quarter 2005 and
$6 million in fourth quarter 2005.
(5) Additonal Wood Products notes:
(a) Refer to footnote 1 to Consolidated Earnings regarding
countervailing duty and anti-dumping costs included in Wood
Products.
(b) The second quarter of 2005 includes an $18 million charge related
to alder litigation. The third quarter of 2005 includes $9 million
of income related to the reduction of reserves for alder litigation
and an insurance settlement related to product liability claims.
(c) The second quarter of 2005 includes a $6 million gain related to a
tenure reallocation agreement with the British Columbia government.
(6) Additional Cellulose Fiber and White Papers notes:
(a) The first quarter of 2006 includes a charge of $746 million for
the estimated amount of a write-off of goodwill associated with
the fine paper business.
(7) Additional Containerboard, Packaging and Recycling notes:
(a) The first and fourth quarters of 2005 include charges of $12
million and $38 million, respectively, associated with the
settlement of linerboard antitrust lawsuits.
(b) The third quarter of 2005 had a charge of $1 million related to
hurricane damage.
(8) Additional Real Estate and Related Assets notes:
(a) The first quarter of 2006 includes income of $8 million related to
a warranty insurance recovery and income of $10 million related to
recognition of deferred income in connection with partnership
restructurings.
(b) The first quarter of 2006 includes net gains on land and lot sales
of $33 million. The first, second, third and fourth quarters of
2005 include net gains (losses) on land and lot sales of
$57 million, $21 million, ($1) and $2 million, respectively. The
fourth quarter of 2005 also includes a $33 million charge for the
impairment of unimproved land.
(9) Additional Corporate and Other notes:
(a) 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 third quarter of 2005
includes a $115 million gain on the sale of an investment in a
joint venture. The fourth quarter of 2005 includes a $57 million
gain on the sale of the company's French composites operations and
$43 million of income for the cumulative effect of a change to
begin capitalizing Weyerhaeuser interest to assets of Weyerhaeuser
Real Estate Company.
(b) The fourth quarter of 2005 includes charges of $15 million related
to the impairment of an investment in an equity affiliate.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes:
Q1 Q2 Q3 Q4 Year End
___________________ ________ ________ ________ ________
March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
2006 2005 2005 2005 2005 2005
_________ _________ ________ ________ ________ ________
Timberlands
(thousands):
Logs - cunits 935 864 863 886 939 3,552
Wood Products
(millions):
Softwood lumber -
board feet 1,921 2,057 2,355 2,179 2,059 8,650
Plywood - square
feet (3/8") 389 537 600 558 485 2,180
Veneer - square
feet (3/8") 61 60 59 51 61 231
Composite panels -
square feet
(3/4") 302 299 317 308 305 1,229
Oriented strand
board - square
feet (3/8") 1,000 908 1,041 1,008 991 3,948
Hardwood lumber -
board feet 103 102 114 105 106 427
Engineered I-
Joists - LF 114 108 138 125 113 484
Engineered Solid
Section - CF 9 9 10 10 9 38
Logs - cunits (in
thousands) 55 187 177 41 46 451
Cellulose Fiber and
White Papers
(thousands):
Pulp - air-dry
metric tons 651 629 587 653 633 2,502
Paper - tons (1) 753 736 742 757 761 2,996
Coated groundwood
- tons 52 58 62 56 56 232
Liquid packaging
board - tons 56 60 65 64 69 258
Paper converting -
tons 511 475 494 494 501 1,964
Containerboard,
Packaging and
Recycling
(thousands):
Containerboard -
tons 211 295 259 238 254 1,046
Packaging - MSF 18,342 17,354 18,600 18,560 19,117 73,631
Recycling - tons 733 692 695 665 676 2,728
Kraft bags and
sacks - tons 20 23 22 22 22 89
Real Estate and
Related Assets:
Single-family
homes sold 1,472 1,378 1,525 1,608 1,174 5,685
Single-family
homes closed 1,161 1,189 1,279 1,257 1,922 5,647
Single-family
homes sold but
not closed at end
of period 3,104 2,561 2,807 3,158 2,410 2,410
(1) Paper volume includes unprocessed rolls and converted paper volumes.
Total production volumes:
Q1 Q2 Q3 Q4 Year End
___________________ ________ ________ ________ ________
March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
2006 2005 2005 2005 2005 2005
_________ _________ ________ ________ ________ ________
Timberlands
(thousands):
Fee Depletion -
cunits 2,132 2,248 2,231 2,098 2,153 8,730
Wood Products (millions):
Softwood lumber -
board feet 1,663 1,821 1,869 1,651 1,645 6,986
Plywood - square
feet (3/8") 241 303 302 296 254 1,155
Veneer - square
feet (3/8") (1) 455 517 529 486 447 1,979
Composite panels -
square feet
(3/4") 278 267 282 268 263 1,080
Oriented strand
board - square
feet (3/8") 1,073 1,007 1,019 1,017 1,035 4,078
Hardwood lumber -
board feet 82 92 96 91 85 364
Engineered I-
Joists - LF 121 133 132 108 110 483
Engineered Solid
Section - CF 11 11 10 10 10 41
Cellulose Fiber and
White Papers (thousands):
Pulp - air-dry
metric tons 676 621 614 663 604 2,502
Paper - tons (2) 724 763 752 765 780 3,060
Coated groundwood
- tons 56 55 59 60 60 234
Liquid packaging
board - tons 61 60 64 69 71 264
Paper converting -
tons 498 475 487 483 505 1,950
Containerboard,
Packaging and
Recycling
(thousands):
Containerboard -
tons (3) 1,575 1,503 1,581 1,597 1,587 6,268
Packaging - MSF 19,550 18,628 19,915 19,416 20,130 78,089
Recycling - tons
(4) 1,716 1,624 1,673 1,716 1,730 6,743
Kraft bags and
sacks - tons 19 23 22 21 22 88
(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 26, Dec. 25,
Assets 2006 2005
Weyerhaeuser
Current assets:
Cash and short-term investments $105 $818
Receivables, less allowances 1,828 1,727
Inventories 2,068 1,917
Prepaid expenses 433 414
Total current assets 4,434 4,876
Property and equipment 10,285 10,510
Construction in progress 648 533
Timber and timberlands at cost, less fee
stumpage charged to disposals 3,702 3,705
Investments in and advances to equity affiliates 475 486
Goodwill 2,235 2,982
Deferred pension and other assets 1,284 1,314
Restricted assets held by
special purpose entities 914 916
23,977 25,322
Real Estate and Related Assets
Cash and short-term investments 39 286
Receivables, less allowances 143 42
Real estate and land for sale and development 2,639 2,092
Other assets 413 357
Assets not owned, consolidated under FIN 46R 170 130
3,404 2,907
Total assets $ 27,381 $28,229
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial paper $1 $ 3
Current maturities of long-term debt 699 389
Accounts payable 1,193 1,241
Accrued liabilities 1,253 1,622
Total current liabilities 3,146 3,255
Long-term debt 6,938 7,404
Deferred income taxes 4,001 4,035
Deferred pension, other postretirement
benefits and other liabilities 1,651 1,591
Liabilities (nonrecourse to Weyerhaeuser)
held by special purpose entities 763 764
16,499 17,049
Real Estate and Related Assets
Notes payable and commercial paper 63 3
Long-term debt 878 851
Other liabilities 598 417
Liabilities not owned, consolidated under FIN 46R 114 109
1,653 1,380
Total liabilities 18,152 18,429
Shareholders' interest 9,229 9,800
Total liabilities and shareholders' interest $ 27,381 $28,229
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
(in millions)
Q1 Q2 Q3 Q4 Year End
___________________ ________ ________ ________ ________
March 26, March 27, June 26, Sept. 25, Dec. 25, Dec. 25,
2006 2005 2005 2005 2005 2005
_________ _________ ________ ________ ________ ________
(Weyerhaeuser only, excludes Real Estate & Related Assets)
Net cash
from operations $(209) $(203) $713 $441 $669 $1,620
Cash paid for
property and equipment (182) (117) (196) (220) (310) (843)
Cash paid for
timberlands
reforestation (12) (12) (6) (6) (8) (32)
Cash received
from issuances of debt -- -- 1 -- -- 1
Revolving credit
facilities, notes
and commercial paper
borrowings, net (68) 19 23 (40) 170 172
Payments on debt (158) (404) (206) (965) (603) (2,178)
Proceeds from the
sale of operations -- -- 1,107 -- 102 1,209
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SOURCE: Weyerhaeuser Company
CONTACT: press, Bruce Amundson, +1-253-924-3047, or analysts, Kathryn
McAuley, +1-253-924-2058, both of Weyerhaeuser Company
Web site: http://www.weyerhaeuser.com/