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Weyerhaeuser Reports Second Quarter Net Earnings of $314 Million, or $1.26 Per Diluted Share, on Net Sales of $5.7 Billion

PRNewswire-FirstCall
FEDERAL WAY, Wash.
Jul 25, 2006

Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $314 million, or $1.26 per diluted share, on net sales of $5.7 billion. This compares with $420 million, or $1.71 per diluted share, on net sales of $5.7 billion for the second quarter 2005.

  /Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a
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  Second quarter 2006 earnings include the following after-tax items:

  -- A charge of $12 million, or 5 cents per diluted share, related to the
     restructuring of the Containerboard, Packaging and Recycling business
     model.
  -- A charge of $11 million, or 4 cents per diluted share, related to the
     closure of facilities.

In addition, net earnings for second quarter 2006 include a one-time tax benefit of $48 million, or 19 cents per diluted share, related to a change in Texas state income tax law, a reduction in the Canadian federal income tax rate and a deferred tax adjustment related to the Medicare Part D subsidy.

  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.
  -- The recognition of $37 million, or 15 cents per diluted share of a
     deferred gain from previous timberlands sales.
  -- A charge of $12 million, or 5 cents per diluted share, related to
     litigation.

"The recovery in the paper markets was welcomed after a period of challenging quarters for those businesses," said Steven R. Rogel, chairman, president and chief executive officer. "At the same time, we can't rely on market conditions to improve our earnings performance. That's why we're being proactive and taking steps such as changing the business model of our integrated packaging business. This exciting initiative is starting to pay dividends and provides a glimpse into other changes we're making in how we go to market."

  SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS

  Millions (except per share data)
                                   2Q 2006        2Q 2005        Change
  Net earnings                       $314            $420        ($106)
  Earnings per diluted share        $1.26           $1.71       ($0.45)
  Net sales                        $5,687          $5,713         ($26)


  SEGMENT RESULTS FOR SECOND QUARTER
  (Contributions to Pre-Tax Earnings)

  Millions                        2Q 2006         2Q 2005        Change
  Timberlands                        $224            $210           $14
  Wood Products                      $131            $204         ($73)
  Cellulose Fiber and White Papers    $23             $16            $7
  Containerboard, Packaging and
   Recycling                          $74             $99         ($25)
  Real Estate and Related Assets     $123            $156         ($33)


  TIMBERLANDS
                                  2Q 2006         1Q 2006        Change
  Contribution to pre-tax
   earnings (millions)               $224            $198           $26


Second quarter earnings improved from first quarter due to the realization of slightly higher log prices and the timing of portfolio improvement sales of non-strategic properties. Operating costs increased in both the West and South primarily due to higher fuel prices.

Third quarter earnings are expected to be lower than the second quarter due to seasonally reduced harvest and sales activity, softening domestic log prices and lower sales of non-strategic properties.

  WOOD PRODUCTS

                                  2Q 2006         1Q 2006        Change
  Contribution to pre-tax
   earnings (millions)               $131            $117           $14


Earnings in the second quarter of 2006 improved from first quarter due to seasonal increases in shipment volumes for all major product lines despite a decline in residential construction activity. Average prices realized for oriented strand board and engineered lumber declined from the first quarter, partially offset by an increase for composite panels. Average prices realized for lumber were unchanged from first quarter.

Manufacturing costs for lumber and oriented strand board remained constant quarter to quarter, and manufacturing costs for composite products declined, primarily due to moderating natural gas and resin prices.

The company incurred $10 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 of 2006, compared with $11 million in the first quarter.

Weyerhaeuser expects substantially lower third quarter earnings from ongoing wood products operations compared with second quarter due to declining prices. The company expects to recognize a gain on the sale of the North American composite mills during the third quarter.

  CELLULOSE FIBER AND WHITE PAPERS
                                  2Q 2006         1Q 2006        Change
  Contribution (charge) to
   pre-tax earnings (millions)        $23          ($763)          $786


First quarter 2006 results included a $746 million impairment of fine paper goodwill. Second quarter included pre-tax charges of $11 million associated with the closure of the Prince Albert facility. Excluding these items, earnings improved $51 million from first quarter.

Fine paper and cellulose fiber products both experienced stronger market conditions, resulting in the realization of higher prices. Fine paper sales volumes reflected the closures of the Prince Albert and Dryden No.1 paper machine operations. Cellulose fiber sales volumes were flat compared to first quarter.

Second quarter manufacturing costs for fine paper increased significantly due to extended annual maintenance mill shutdowns and major power interruptions at Plymouth, N.C. Energy and chip costs improved across the segment; however this was partially offset by the continued negative effect of the Canadian exchange rate on the cost of Canadian operations.

Weyerhaeuser expects the segment to show continued improved performance in third quarter. The company expects to realize the full effect of price increases implemented during second quarter and the additional benefit of price increases announced for third quarter. Manufacturing costs are expected to decrease due to fewer scheduled maintenance shutdowns and improved operating performance.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                  2Q 2006         1Q 2006        Change
  Contribution to pre-tax
   earnings (millions)                $74             $22           $52


Second quarter 2006 results included pre-tax charges of $18 million for charges associated with changes to the segment's business model and pre-tax charges of $5 million related to facility closures. Excluding these items, earnings improved $75 million compared with first quarter.

Second quarter earnings improved primarily due to the realization of containerboard and packaging price increases coupled with higher packaging shipments. Packaging shipments increased despite the closure of seven packaging facilities since December. Manufacturing costs declined from first quarter levels mainly due to moderating natural gas costs and increased asset utilization. The market conditions for OCC (old corrugated containers) drove costs significantly higher during the second quarter.

Weyerhaeuser expects continued earnings improvement from this segment in the third quarter due primarily to the full realization of previous price increases, partially offset by escalating OCC costs.

  REAL ESTATE AND RELATED ASSETS
                                  2Q 2006         1Q 2006        Change
  Contribution to pre-tax
   earnings (millions)               $123            $172         ($49)


First quarter results included pre-tax land sales earnings of approximately $33 million and pre-tax gains related to insurance recoveries and partnership restructuring of $17 million. Excluding these items, total earnings were relatively unchanged from first quarter.

The number of single-family homes closed in second quarter increased seasonally compared with first quarter. Despite lower margins, single family earnings increased seasonally but were offset by higher operating costs. The backlog of homes sold, but not closed, at the end of the second quarter represents more than five months' sales.

Weyerhaeuser expects third quarter real estate and related earnings to approximate second quarter activity.

ABOUT WEYERHAEUSER

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/ .

EARNINGS CALL INFORMATION

The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 25 to discuss second quarter results.

To access the conference call from within North America, dial 1-888-221-5699 at least 15 minutes prior to 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 -- 2336060) from within North America and at 1-706-645-9291 (access code -- 2336060) from outside North America.

The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ by clicking on the "Q2 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/ ).

FORWARD LOOKING STATEMENT

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 2006; expected earnings and performance of the company's business segments during the third quarter 2006, demand and pricing for the company's products in the third quarter 2006, reduced harvest and sales activity from normal seasonal shutdowns, softening domestic log prices and lower sales of non-strategic properties in the third quarter 2006, lower prices for lumber, oriented strand board, and some engineered lumber products in the third quarter 2006, the expected closing of the sale of the North American composite mills during the third quarter 2006, reduction in scheduled annual maintenance outages and improved operating performance in the Cellulose Fiber and White Paper segment, 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:

  -- 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;
  -- Raw material prices;
  -- Chemical prices;
  -- Performance of the company's manufacturing operations including
     unexpected maintenance requirements;
  -- 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, and changes in accounting regulations;
  -- The effect of weather;
  -- The risk of loss from fires, floods, windstorms, hurricanes and other
     natural disasters;
  -- Transportation costs;
  -- Legal proceedings;
  -- The effect of timing of retirements and changes in the market price of
     company stock on charges for stock-based compensation; and
  -- 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     Q1                 Q2           Year-to-date
                    March 26,  March 27, June 25, June 26, June 25, June 26,
                      2006       2005     2006     2005     2006      2005

  Net sales and revenues:
   Weyerhaeuser (1) $4,596    $4,629    $4,941   $5,065    $9,537  $9,694
   Real Estate and
  Related Assets       690       655       746      648     1,436   1,303
  Total net sales
   and revenues      5,286     5,284     5,687    5,713    10,973  10,997

  Costs and expenses:
  Weyerhaeuser:
   Costs of products
    sold (2)         3,638     3,550     3,838    3,869     7,476   7,419
    Depreciation,
     depletion and
     amortization      308       318       307      321       615     639
    Selling expenses   110       116       126      117       236     233
    General and
     administrative
     expenses          256       221       224      217       480     438
    Research and
     development
     expenses           16        14        15       12        31      26
    Taxes other than
     payroll and
     income taxes       44        46        46       48        90      94
    Charges for
     restructuring (3)  --         5        18        4        18       9
    Charges for closure
     of facilities       1         5        17        3        18       8
    Impairment
     of goodwill (4)   746        --         3       --       749      --
    Other operating costs,
     net (5) (6)        30         9       (23)     (40)        7     (31)
                     5,149     4,284     4,571    4,551     9,720   8,835
   Real Estate and Related Assets:
    Costs and operating
     expenses (7)      481       426       555      441     1,036     867
    Depreciation
     and amortization    3         3         4        4         7       7
    Selling expenses    37        33        43       36        80      69
    General and
     administrative
     expenses           30        24        34       25        64      49
    Taxes other than
     payroll and
     income taxes        1         1         2       --         3       1
    Other operating
     costs, net         (3)       --         3       (2)       --      (2)
    Impairment of
     long-lived assets  --        --        --       --        --      --
                       549       487       641      504     1,190     991

  Total costs
   and expenses      5,698     4,771     5,212    5,055    10,910   9,826

  Operating income    (412)      513       475      658        63   1,171

  Interest expense and other:
   Weyerhaeuser:
    Interest expense
     incurred (8)     (152)     (196)     (152)    (179)    (304)    (375)
    Less interest
     capitalized (2)    16        --        20        2        36       2
    Interest income
     and other          19        27        15       20        34      47
    Equity in income
     (loss) of
     affiliates (9)      3        --         6        4         9       4
   Real Estate and
    Related Assets:
    Interest expense
     incurred          (14)      (14)      (14)     (14)     (28)     (28)
    Less interest
     capitalized        14        14        14       14        28      28
    Interest income
     and other          10         5         3       (2)       13       3
    Equity in income
     of unconsolidated
     entities (10)      21        10        15       13        36      23
  Earnings before
   income taxes       (495)      359       382      516     (113)     875
  Income taxes (11)    (87)     (125)      (82)    (225)    (169)    (350)
  Earnings from
   continuing
   operations         (582)      234       300      291     (282)     525
  Earnings from
   discontinued
   operations, net
   of taxes (12)         2         5        14      129        16     134
  Net earnings       $(580)     $239      $314     $420    $(266)    $659

  Basic net earnings per share:
    Continuing
     operations     $(2.37)    $0.96     $1.21    $1.20    $(1.15)  $2.15
    Discontinued
     operations       0.01      0.02      0.06     0.52      0.07    0.55
    Net earnings
     per share      $(2.36)    $0.98     $1.27    $1.72    $(1.08)  $2.70

  Diluted net earnings per share:
    Continuing
     operations     $(2.37)    $0.96     $1.20    $1.19    $(1.15)  $2.15
    Discontinued
     operations       0.01      0.02      0.06     0.52      0.07    0.54
    Net earnings
     per share      $(2.36)    $0.98     $1.26    $1.71    $(1.08)  $2.69

  Dividends paid
   per share         $0.50     $0.40     $0.50    $0.50     $1.00   $0.90

  Weighted average
   shares outstanding (in thousands)
    Basic          245,794   242,863   248,147  244,702   246,971 243,782
    Diluted        245,794   244,185   249,194  245,881   246,971 244,959


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  CONSOLIDATED EARNINGS               Q3              Q4      Year-to-date
  (in millions)                    Sept. 25,       Dec. 25,     Dec. 25,
                                     2005            2005         2005
  Net sales and revenues:
   Weyerhaeuser (1)                $4,898          $4,764       $19,356
   Real Estate and Related Assets     596           1,016         2,915
  Total net sales and revenues      5,494           5,780        22,271

  Costs and expenses:
   Weyerhaeuser:
    Costs of products sold (2)      3,833           3,894        15,146
    Depreciation, depletion
     and amortization                 322             328         1,289
    Selling expenses                  117             350           457
    General and
     administrative expenses          235             222           895
    Research and development expenses  18              17            61
    Taxes other than
     payroll and income taxes          69              16           179
    Charges for restructuring (3)       2              10            21
    Charges for closure of facilities  29             656           693
    Impairment of goodwill (4)         --              --            --
    Other operating costs, net(5) (6) (32)              3           (60)
                                    4,593           5,253        18,681
   Real Estate and Related Assets:
    Costs and operating expenses (7)  401             677         1,945
    Depreciation and amortization       4               5            16
    Selling expenses                  360              46           151
    General and
     administrative expenses           27              28           104
    Taxes other than
     payroll and income taxes           1               1             3
    Other operating costs, net         (2)              1            (3)
    Impairment of long-lived assets    --              33            33
                                      467             791         2,249
  Total costs and expenses          5,060           6,044        20,930

  Operating income                    434            (264)        1,341

  Interest expense and other:
   Weyerhaeuser:
    Interest expense incurred (8)    (193)           (171)         (739)
    Less interest capitalized (2)       3               4             9
    Interest income and other         143              24           214
    Equity in income
     (loss) of affiliates (9)           2             (12)           (6)
    Real Estate and Related Assets:
    Interest expense incurred         (13)            (14)          (55)
    Less interest capitalized          13              14            55
    Interest income and other           4               5            12
    Equity in income of unconsolidated
     entities (10)                     14              20            57
  Earnings before income taxes        407            (394)          888
  Income taxes (11)                  (119)            151          (318)
  Earnings from
   continuing operations              288            (243)          570
  Earnings from discontinued
   operations, net of taxes (12)       (3)             32           163
  Net earnings                       $285           $(211)         $733

  Basic net earnings per share:
    Continuing operations           $2.47          $(0.99)        $2.33
    Discontinued operations         (0.01)           0.13          0.67
    Net earnings per share          $2.46          $(0.86)        $3.00

  Diluted net earnings per share:
    Continuing operations           $2.46         $ (0.99)        $2.32
    Discontinued operations         (0.01)           0.13          0.66
    Net earnings per share          $2.45          $(0.86)        $2.98

  Dividends paid per share          $0.50           $0.50         $1.90

  Weighted average shares outstanding (in thousands)
    Basic                         245,009         245,215       244,447
    Diluted                       246,190         246,198       245,559


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  FOOTNOTES TO CONSOLIDATED EARNINGS
   (in millions)
                                                  YTD  YTD
                            Q1   Q1   Q2    Q2   Q2   Q2   Q3   Q4   YE
                           2006 2005 2006  2005 2006 2005 2005 2005 2005
  (1) Countervailing and
      anti-dumping duties and
      related costs per quarter
      were charges of:     $11  $22  $10   $27  $21  $49  $19  $16 $84

  (2) Weyerhaeuser capitalized interest for the first and second quarters of
      2006 include $14 million and $15 million, respectively, for the
      capitalization of Weyerhaeuser interest on WRECO assets. Weyerhaeuser
      cost of products sold includes $7 million in each of the first and
      second quarters of 2006 to expense previously capitalized interest in
      connection with the sale of the related real estate assets. See Note 6
      for 2005 information.

  (3)   The second quarter of 2006 includes an $18 million dollar charge
      related to the restructuring of the Containerboard, Packaging and
      Recycling business model.

  (4)   The first and second quarters of 2006 include write-offs of goodwill
      associated with the fine paper business of $746 million and $3
      million, respectively.

                                                  YTD  YTD
                            Q1   Q1    Q2    Q2    Q2   Q2     Q3   Q4   YE
                           2006 2005  2006  2005  2006 2005   2005 2005 2005
  (5) Net foreign exchange
      gains (losses),
      primarily from
      fluctuations in
      Canadian and
      New Zealand
      exchange rates:      $(26)  $13  $21   $(13)  $(5) $--  $37 $(21) $16

  (6) 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.


  (7) The first quarter of 2006 includes income of $8 million related to a
      warranty insurance recovery.

  (8) The third and fourth quarters of 2005 include charges of $21 million
      and $15 million, respectively, for the early extinguishment of debt.

  (9) The fourth quarter of 2005 includes a $15 million charge related to
      the impairment of an investment in an equity affiliate.

  (10) The first quarter of 2006 includes recognition of $9 million of
       deferred income in connection with partnership restructurings.


  (11) The second quarter of 2006 includes a one-time tax benefit of $48
       million related to a change in Texas state income tax law, a
       reduction in the Canadian federal income tax rate and a deferred tax
       adjustment related to the Medicare Part D subsidy. 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.

  (12) Includes the net operating results of the company's coastal British
       Columbia operations and its North American 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 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           Year-to-date
                    March 26,  March 27, June 25, June 26, June 25, June 26,
                      2006       2005     2006     2005     2006      2005
  Timberlands:
    Logs              $201      $182    $198     $195      $399    $377
    Other products      62        82      71       63       133     145
                       263       264     269      258       532     522
  Wood Products:
    Softwood lumber    782       892     857    1,032     1,639   1,924
    Plywood            135       183     147      196       282     379
    Veneer              13        13      13       10        26      23
    Composite panels   121       120     140      132       261     252
    OSB                287       288     273      306       560     594
    Hardwood lumber     99        94     105      102       204     196
    Engineered
     I-Joists          183       160     216      213       399     373
    Engineered
    Solid Section      221       190     249      241       470     431
    Logs                 7        27       5       24        12      51
    Other products     225       272     295      339       520     611
                     2,073     2,239   2,300    2,595     4,373   4,834
  Cellulose Fiber and White Papers:
    Pulp               394       376     402      355       796     731
    Paper              613       599     601      611     1,214   1,210
    Coated groundwood   40        42      44       47        84      89
    Liquid
     packaging board    46        47      62       52       108      99
    Other products      14        14      16       12        30      26
                     1,107     1,078   1,125    1,077     2,232   2,155
  Containerboard, Packaging and Recycling:
    Containerboard      82       117      84      101       166     218
    Packaging          911       898   1,002      969     1,913   1,867
    Recycling           80        92      85       92       165     184
    Bags                20        22      20       21        40      43
    Other products      34        34      46       40        80      74
                     1,127     1,163   1,237    1,223     2,364   2,386

  Real Estate
   and Related Assets  690       655     747      648     1,437   1,303

  Corporate and Other  116       149     117      151       233     300
  Less sales
   of discontinued
   operations          (90)     (264)   (108)    (239)     (198)   (503)

                    $5,286    $5,284  $5,687   $5,713   $10,973 $10,997

  Contribution (charge) to earnings:
  (in millions)
                             Q1                 Q2           Year-to-date
                    March 26,  March 27, June 25, June 26, June 25, June 26,
                      2006       2005     2006     2005     2006      2005

  Timberlands
   (1) (2) (4)        $198      $200    $224     $210      $422    $410
  Wood Products
   (1) (2) (5)         117       131     131      204       248     335
  Cellulose Fiber
   and White Papers
   (1) (2) (6)        (763)       19      23       16      (740)     35
  Containerboard,
   Packaging and
   Recycling
   (1) (2) (7)          22        48      74       99        96     147
  Real Estate
   and Related Assets
   (2) (8)             172       183     123      156       295     339
  Corporate and Other
  (1) (2) (3) (9)     (102)      (17)    (40)      99      (142)     82
                     $(356)     $564    $535     $784      $179  $1,348


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and revenues (in millions):
                                     Q3               Q4      Year-to-date
                                  Sept. 25,        Dec. 25,     Dec. 25,
                                     2005            2005         2005
  Timberlands:
    Logs                             $188            $196          $761
    Other products                     65              76           286
                                      253             272         1,047
  Wood Products:
    Softwood lumber                   889             811         3,624
    Plywood                           184             172           735
    Veneer                              9              12            44
    Composite panels                  122             123           497
    OSB                               267             303         1,164
    Hardwood lumber                    95              99           390
    Engineered I-Joists               202             181           756
    Engineered Solid Section          244             221           896
    Logs                                6               5            62
    Other products                    326             290         1,227
                                    2,344           2,217         9,395
  Cellulose Fiber and White Papers:
    Pulp                              381             370         1,482
    Paper                             604             603         2,417
    Coated groundwood                  45              46           180
    Liquid packaging board             50              54           203
    Other products                     16              12            54
                                    1,096           1,085         4,336
  Containerboard, Packaging and Recycling:
    Containerboard                     86              91           395
    Packaging                         929             914         3,710
    Recycling                          87              81           352
    Bags                               20              20            83
    Other products                     47              46           167
                                    1,169           1,152         4,707

  Real Estate and Related Assets      596           1,016         2,915

  Corporate and Other                 146             154           600

  Less sales of
   discontinued operations           (110)           (116)         (729)

                                   $5,494          $5,780       $22,271

  Contribution (charge) to earnings:
  (in millions)                     Q3               Q4      Year-to-date
                                 Sept. 25,       Dec. 25,       Dec. 25,
                                     2005           2005            2005

  Timberlands (1) (2) (4)            $191            $183          $784
  Wood Products (1) (2) (5)           124              26           485
  Cellulose Fiber and White Papers
   (1) (2) (6)                         (2)           (477)         (444)
  Containerboard, Packaging
   and Recycling (1) (2) (7)           36            (188)           (5)
  Real Estate and
   Related Assets (2) (8)             145             250           734
  Corporate and Other
  (1) (2) (3) (9)                     101              33           216
                                     $595           $(173)       $1,770


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)
  FOOTNOTES TO CONTRIBUTION (CHARGE) TO EARNINGS
  (in millions)

  (1) Closure charges by segment:
                                                 YTD  YTD
                            Q1   Q1   Q2    Q2   Q2   Q2   Q3   Q4   YE
                           2006 2005 2006  2005 2006 2005 2005 2005 2005
  Timberlands              $--   $3  $--   $--  $--   $3  $--   $3   $6
  Wood Products             --    1    1     1    1    2    6   91   99
  Cellulose Fiber
  and White Papers          (1)  --   11    --   10   --   22  427  449
  Containerboard,
  Packaging and
  Recycling                  2    4    5     2    7    6    1  130  137
  Corporate and Other       --   --   --    --   --   --   --    5    5
                            $1   $8  $17    $3  $18  $11  $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:

                                                YTD  YTD
                            Q1   Q1   Q2    Q2   Q2   Q2   Q3   Q4   YE
                           2006 2005 2006  2005 2006 2005 2005 2005 2005

  Timberlands               $1  $--  $--  $--   $1  $--  $--  $--  $--
  Wood Products              2   --   --   --    2   --   --   --   --
  Cellulose Fiber
   and White Papers          1   --   --   --    1   --   --   --   --
  Containerboard,
  Packaging and
  Recycling                  2   --   (1)  --    1   --   --   --   --
  Real Estate and
  Related Assets            --   --    1   --    1   --   --   --   --
  Corporate and Other       15    2   (4)  (6)  11   (4)   3   12   11
                           $21   $2  $(4) $(6) $17  $(4)  $3  $12  $11

                                                  YTD  YTD
                            Q1   Q1   Q2    Q2   Q2   Q2   Q3   Q4   YE
                           2006 2005 2006  2005 2006 2005 2005 2005 2005
  (3) Net foreign
      exchange gains (losses)
      included in Corporate
      and Other were:     $(26) $13  $20 $(12) $(6)  $1  $38 $(20) $19

  (4) Additional Timberlands notes:
      (a) Hurricane related losses were $5 million in third quarter 2005 and
          $6 million in fourth quarter 2005.

  (5) Additional 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 and second quarters of 2006 include write-offs of
          goodwill associated with the fine paper business of $746 million
          and $3 million, respectively.

  (7) Additional Containerboard, Packaging and Recycling notes:
      (a) The second quarter of 2006 includes a charge of $18 million
          related to the restructuring of the Containerboard, Packaging and
          Recycling business model.
      (b) The first and fourth quarters of 2005 include charges of $12
          million and $38 million, respectively, associated with the
          settlement of linerboard antitrust lawsuits.
      (c) 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 $9 million related to
          recognition of deferred income in connection with partnership
          restructurings.
      (b) The first and second quarters of 2006 includes net gains (losses)
          on land and lot sales of $33 million and ($1) million,
          respectively.  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        Year-to-date
                             March   March   June    June   June   June
                              26,     27,     25,     26,    25,    26,
                            2006    2005    2006    2005    2006   2005

  Timberlands (thousands):
    Logs - cunits            935     864     808     863   1,743  1,727

  Wood Products (millions):
    Softwood lumber
     - board feet          1,921   2,057   2,113   2,355   4,034  4,412
    Plywood - square
     feet (3/8")             389     537     458     600     847  1,137
    Veneer - square
     feet (3/8")              61      60      63      59     124    119
    Composite panels
     - square feet (3/4")    302     299     324     317     626    616
    Oriented strand board
     - square feet (3/8")  1,000     908   1,069   1,041   2,069  1,949
    Hardwood lumber
     - board feet            103     102     110     114     213    216
    Engineered I-Joists
     - lineal feet           114     108     137     138     251    246
    Engineered Solid Section
     - cubic feet              9       9      11      10      20     19
    Logs - cunits
     (in thousands)           55     187      46     177     101    364

  Cellulose Fiber and White Papers (thousands):
    Pulp - air-dry
     metric tons             651     629     647     587   1,298  1,216
    Paper - tons             753     736     662     742   1,415  1,478
    Coated groundwood - tons  52      58      59      62     111    120
    Liquid packaging
     board - tons             56      60      71      65     127    125
    Paper converting - tons  511     475     474     494     985    969

  Containerboard, Packaging and Recycling (thousands):
    Containerboard - tons    211     295     189     259     400    554
    Packaging - MSF       18,342  17,354  19,168  18,600  37,510 35,954
    Recycling - tons         733     692     719     695   1,452  1,387
    Kraft bags and
     sacks - tons             20      23      20      22      40     45

  Real Estate and Related Assets:
    Single-family
     homes sold            1,472   1,378   1,325   1,525   2,797  2,903
    Single-family
     homes closed          1,161   1,189   1,483   1,279   2,644  2,468
    Single-family
     homes sold but not
     closed at
     end of period         3,105   2,561   2,947   2,807   2,947  2,807


  Total production volumes:      Q1               Q2        Year-to-date
                            March   March   June    June    June   June
                             26,     27,     25,     26,     25,    26,
                            2006    2005    2006    2005    2006   2005
  Timberlands (thousands):
  Fee Depletion - cunits   2,132   2,248   2,083   2,231   4,215  4,479

  Wood Products (millions):
    Softwood lumber
     - board feet          1,663   1,821   1,650   1,869   3,313  3,690
    Plywood
     - square feet (3/8")    241     303     245     302     486    605
    Veneer - square
     feet (3/8") (1)         455     517     455     529     910  1,046
    Composite panels
     - square feet (3/4")    278     267     288     282     566    549
    Oriented strand board
     - square feet (3/8")  1,073   1,007   1,062   1,019   2,135  2,026
    Hardwood lumber
     - board feet             82      92      83      96     165    188
    Engineered
     I-Joists - LF           121     133     136     132     257    265
    Engineered Solid
     Section - CF             11      11      12      10      23     21

  Cellulose Fiber and White Papers (thousands):
    Pulp - air-dry
     metric tons             676     621     588     614   1,264  1,235
    Paper - tons (2)         724     763     672     752   1,396  1,515
    Coated groundwood - tons  56      55      56      59     112    114
    Liquid packaging
     board - tons             61      60      75      64     136    124
    Paper converting - tons  498     475     461     487     959    962

  Containerboard, Packaging and Recycling (thousands):
    Containerboard
     - tons (3)            1,575   1,503   1,533   1,581   3,108  3,084
    Packaging - MSF       19,550  18,628  20,290  19,915  39,840 38,543
    Recycling - tons (4)   1,716   1,624   1,684   1,673   3,400  3,297
    Kraft bags and sacks
     - tons                   19      23      20      22      39     45


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Third party sales volumes:                 Q3           Q4    Year-to-date
                                       Sept. 25,    Dec. 25,   Dec. 25,
                                            2005        2005       2005


  Timberlands (thousands):
    Logs - cunits                            886         939      3,552

  Wood Products (millions):
    Softwood lumber - board feet           2,179       2,059      8,650
    Plywood - square feet (3/8")             558         485      2,180
    Veneer - square feet (3/8")               51          61        231
    Composite panels - square feet (3/4")    308         305      1,229
    Oriented strand board
     - square feet (3/8")                  1,008         991      3,948
    Hardwood lumber - board feet             105         106        427
    Engineered I-Joists - lineal feet        125         113        484
    Engineered Solid Section - cubic feet     10           9         38
    Logs - cunits (in thousands)              41          46        451

  Cellulose Fiber and White Papers (thousands):
    Pulp - air-dry metric tons               653         633      2,502
    Paper - tons                             757         761      2,996
    Coated groundwood - tons                  56          56        232
    Liquid packaging board - tons             64          69        258
    Paper converting - tons                  494         501      1,964

  Containerboard, Packaging and Recycling (thousands):
    Containerboard - tons                    238         254      1,046
    Packaging - MSF                       18,560      19,117     73,631
    Recycling - tons                         665         676      2,728
    Kraft bags and sacks - tons               22          22         89

  Real Estate and Related Assets:
    Single-family homes sold               1,608       1,174      5,685
    Single-family homes closed             1,257       1,922      5,647
    Single-family homes sold but
     not closed at end of period           3,158       2,410      2,410


  Total production volumes:                 Q3           Q4     Year-to-date
                                       Sept. 25,    Dec. 25,   Dec. 25,
                                            2005        2005       2005

  Timberlands (thousands):
    Fee Depletion - cunits                 2,098       2,153      8,730

  Wood Products (millions):
    Softwood lumber - board feet           1,651       1,645      6,986
    Plywood - square feet (3/8")             296         254      1,155
    Veneer - square feet (3/8") (1)          486         447      1,979
    Composite panels - square feet (3/4")    268         263      1,080
    Oriented strand board
     - square feet (3/8")                  1,017       1,035      4,078
    Hardwood lumber - board feet              91          85        364
    Engineered I-Joists - LF                 108         110        483
    Engineered Solid Section - CF             10          10         41

  Cellulose Fiber and White Papers (thousands):
    Pulp - air-dry metric tons               663         604      2,502
    Paper - tons (2)                         765         780      3,060
    Coated groundwood - tons                  60          60        234
    Liquid packaging board - tons             69          71        264
    Paper converting - tons                  483         505      1,950

  Containerboard, Packaging and Recycling (thousands):
    Containerboard - tons (3)              1,597       1,587      6,268
    Packaging - MSF                       19,416      20,130     78,089
    Recycling - tons (4)                   1,716       1,730      6,743
    Kraft bags and sacks - tons               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,     June 25,   Dec. 25,
  Assets                                    2006         2006       2005
  Weyerhaeuser
    Current assets:
     Cash and short-term investments        $105         $113       $818
     Receivables, less allowances          1,828        1,942      1,727
     Inventories                           2,050        1,911      1,899
     Prepaid expenses                        433          427        414
     Assets of discontinued operations       136          134        136
        Total current assets               4,552        4,527      4,994
    Property and equipment                10,175       10,158     10,397
    Construction in progress                 640          607        528

    Timber and timberlands at cost,
     less fee stumpage
     charged to disposals                  3,702        3,696      3,705
    Investments in and advances
     to equity affiliates                    475          479        486
    Goodwill                               2,235        2,243      2,982
    Deferred pension
     and other assets                      1,284        1,303      1,314
    Restricted assets held by
     special purpose entities                914          916        916
                                          23,977       23,929     25,322

  Real Estate and Related Assets
    Cash and short-term investments           39           36        286
    Receivables, less allowances             143          141         42
    Real estate and land for
     sale and development                  2,639        2,872      2,092
    Other assets                             413          486        357
    Assets not owned,
     consolidated under FIN 46R              170          154        130
                                           3,404        3,689      2,907
    Total assets                         $27,381      $27,618    $28,229

  Liabilities and Shareholders' Interest

  Weyerhaeuser
    Current liabilities:
     Notes payable
      and commercial paper                    $1           $2         $3
     Current maturities
       of long-term debt                     699          603        389
     Accounts payable                      1,193        1,222      1,241
     Accrued liabilities                   1,253        1,327      1,622
        Total current liabilities          3,146        3,154      3,255
    Long-term debt                         6,938        7,025      7,404
    Deferred income taxes                  4,001        3,913      4,035
    Deferred pension, other
     postretirement benefits
     and other liabilities                 1,651        1,674      1,591
    Liabilities (nonrecourse
     to Weyerhaeuser) held by
     special purpose entities                763          765        764
                                          16,499       16,531     17,049
  Real Estate and Related Assets
    Notes payable and commercial paper        63          125          3
    Long-term debt                           878          628        851
    Other liabilities                        598          707        417
    Liabilities not owned,
     consolidated under FIN 46R              114          127        109
                                           1,653        1,587      1,380
  Total liabilities                       18,152       18,118     18,429
  Shareholders' interest                   9,229        9,500      9,800
  Total liabilities
  and shareholders' interest             $27,381      $27,618    $28,229


  STATEMENT OF CASH FLOWS
   SELECTED INFORMATION (unaudited)
   (in millions)
  (Weyerhaeuser only, excludes Real Estate & Related Assets)
                                                                  Year-to-
                       Q1           Q2      Year-to-date  Q3   Q4   date
                  March  March  June  June  June  June  Sept.  Dec.  Dec.
                   26,    27,    25,   26,   25,   26,   25,    25,   25,
                  2006   2005   2006  2005  2006  2005  2005   2005  2005

  Net cash
   from
   operations     $(209) $(203)  $565  $723  $356  $520  $452  $648 $1,620
  Cash paid
   for property
   and equipment   (182)  (117)  (184) (196) (366) (313) (220) (310)  (843)
  Cash paid
   for timberlands
   reforestation    (12)   (12)    (9)   (6)  (21)  (18)   (6)   (8)   (32)
  Cash received
   from issuances
   of debt           --     --     --     1    --     1    --    --      1
  Revolving credit
   facilities,
   notes and
   commercial paper
   borrowings, net  (68)    19     19    23   (49)   42   (40)  170    172
  Payments on debt (158)  (404)   (10) (206) (168) (610) (965) (603)(2,178)
  Proceeds from
   the sale
   of operations     --     --     -- 1,107    -- 1,107    --   102  1,209
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 Company

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

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