Newsroom
Weyerhaeuser Reports Net Earnings of $395 Million for 2006, or $1.61 Per Diluted Share, on Net Sales of $21.9 Billion
PRNewswire-FirstCall
FEDERAL WAY, Wash.
Feb 9, 2007
Weyerhaeuser Company (NYSE: WY) today reported net earnings of $395 million for 2006, or $1.61 per diluted share, on net sales of $21.9 billion. This compares with net earnings of $733 million, or $2.98 per diluted share, on net sales of $22 billion for 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b )
For the fourth quarter 2006, Weyerhaeuser reported net earnings of $450 million, or $1.88 per diluted share, on net sales of $5.7 billion. Last year, Weyerhaeuser reported a fourth quarter net loss of $211 million, or 86 cents per diluted share, on net sales of $5.7 billion.
Fourth quarter 2006 earnings include 14 weeks of results compared to 13 weeks for the same quarter last year and contain the following after-tax items:
-- A gain of $227 million, or 95 cents per diluted share, for the refund
of countervailing and anti-dumping duties on Canadian softwood lumber
sold in the United States.
-- A gain of $43 million, or 18 cents per diluted share, from the sale of
the company's composite panels assets in Ireland.
-- Charges of $36 million, or 15 cents per diluted share, for asset
impairments and costs associated with closure of facilities, primarily
in Wood Products.
-- Charges of $13 million, or 5 cents per diluted share, for impairment of
real estate assets.
The loss for fourth quarter 2005 included the following after-tax items:
-- Charges of $438 million, or $1.78 per diluted share, for facility
closures primarily in the Fine Paper, Cellulose Fiber and
Containerboard businesses
-- Charges of $32 million, or 13 cents per diluted share, for asset
impairment charges, including a charge associated with a California
land development.
-- A charge of $25 million, or 10 cents per diluted share, associated with
the settlement of litigation.
-- A loss of $10 million, or 4 cents per diluted share, for early
extinguishment of debt.
-- A gain of $34 million, or 13 cents per diluted share, on the sale of
the company's composite panels assets in France.
-- Income of $28 million, or 12 cents per diluted share, for the
cumulative effect of a change to begin capitalizing Weyerhaeuser
interest to assets of Weyerhaeuser Real Estate Company.
During fourth quarter 2006, Weyerhaeuser repurchased 5.5 million shares of common stock. As of the end of the fourth quarter, Weyerhaeuser has repurchased 11 million shares of the 18 million-share repurchase previously authorized by the company's board of directors.
"This past year was a time of ongoing dynamic change as we took steps to further improve shareholder value," said Steven R. Rogel, chairman, president and chief executive officer. "These efforts included our work to significantly restructure containerboard packaging and wood products, two of our major segments. To focus our portfolio, we entered into an agreement to combine our fine paper business and related assets with Domtar and began the complex process of implementing this landmark transaction. As part of our growth strategy, we expanded our real estate business and increased our timberlands position in South America. We continue to improve our efficiency by implementing significant changes in how we manage our supply chains and continuing to migrate to a single information technology platform. While we haven't finished our work on many of these efforts, and we may not see their full benefit for several quarters, our continued focus on these initiatives will benefit our shareholders despite challenging market conditions."
DOMTAR TRANSACTION
On Feb. 2, Weyerhaeuser announced an offer to its shareholders for the exchange of some or all of their shares of Weyerhaeuser common stock or exchangeable shares of Weyerhaeuser Company Limited (TSE: WYL) for shares of Domtar Corp. common stock.
The exchange is expected to be tax-free to participating Weyerhaeuser shareholders for U.S. federal income tax purposes. The offer will expire at 12:00 midnight, New York City time, on March 2, unless extended or terminated.
As previously announced on Aug. 23, Weyerhaeuser and Domtar Inc. (NYSE: DTC)(TSE: DTC) entered into a definitive agreement to combine Weyerhaeuser's fine paper business and related assets with Domtar Inc. to form Domtar Corp., which will become North America's largest producer of fine paper.
The Registration Statement on Form S-4 and S-1 filed by Weyerhaeuser with the Securities and Exchange Commission more fully describes the terms and conditions of the exchange offer.
SUMMARY OF FOURTH QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 4Q 2006 4Q 2005 Change
(14 weeks) (13 weeks)
Net earnings (loss) $450 ($211) $661
Earnings (loss) per diluted share $1.88 ($0.86) $2.74
Net sales $5,655 $5,717 ($62)
SUMMARY OF ANNUAL FINANCIAL HIGHLIGHTS
Millions (except per share data) 2006 2005 Change
(53 weeks) (52 weeks)
Net earnings $395 $733 ($338)
Earnings per diluted share $1.61 $2.98 ($1.37)
Net sales $21,896 $22,046 ($150)
SEGMENT RESULTS FOR FOURTH QUARTER
(Contributions to Pre-Tax Earnings)
Millions 4Q 2006 4Q 2005 Change
(14 weeks) (13 weeks)
Timberlands $167 $183 ($16)
Wood Products $110 $26 $84
Cellulose Fiber and White Papers $120 ($477) $597
Containerboard, Packaging and
Recycling $71 ($188) $259
Real Estate and Related Assets $293 $250 $43
TIMBERLANDS
4Q 2006 3Q 2006 Change
(14 weeks) (13 weeks)
Contribution to pre-tax
earnings (millions) $167 $178 ($11)
Fourth quarter earnings decreased from the third quarter mainly due to lower domestic log prices, primarily in the West. Higher fee harvest volumes in the South partially offset the decline in log prices. Costs were slightly higher in the fourth quarter due to weather and curtailment of operations in the West to balance harvest with customer demand.
Weyerhaeuser expects the first quarter earnings to be slightly lower for the segment compared to the fourth quarter due to lower demand for lumber resulting in lower domestic log prices, and lower fee harvest volumes in the South.
WOOD PRODUCTS
4Q 2006 3Q 2006 Change
(14 weeks) (13 weeks)
Contribution to pre-tax
earnings (millions) $110 $11 $99
Excluding the third and fourth quarter items noted below, fourth quarter contribution to earnings decreased $140 million from the third quarter.
Fourth quarter included the following pre-tax items:
-- A refund of $344 million countervailing and anti-dumping duties
resulting from the settlement of the Canadian Softwood Lumber dispute.
-- Costs of $48 million for facility closures and related asset
impairments.
Third quarter items included the following:
-- A gain of $51 million on the sale of the company's North American
composites business.
-- Income of $23 million related to a reduction in the reserve for
hardboard siding claims.
-- Charges of $17 million for the impairment of fixed assets associated
with mill closures and curtailments.
The downturn in residential housing construction, combined with normal seasonal construction slowing in the fourth quarter, caused a significant reduction in demand and prices for wood products which led to lower earnings. Lumber sales realizations, on average, declined 8 percent from third quarter. Combined with lower sales volume, this decrease accounts for nearly half of the quarter-to-quarter decrease in operating earnings for the segment. On average, sales realizations for oriented strand board declined 17 percent from third quarter and average weekly shipment volumes declined 3 percent. This change in structural panels accounts for 25 percent of the quarter-to-quarter decrease in segment earnings. Shipment volumes for engineered products also declined. To adjust operations to match customer demands, Weyerhaeuser curtailed production at 70 percent of its wood products facilities during the quarter.
Weyerhaeuser anticipates some improvement in market conditions in the first quarter 2007, but still expects to experience significant losses in its wood products business. Weyerhaeuser will continue to balance production to demand which may result in further curtailments.
CELLULOSE FIBER AND WHITE PAPERS
4Q 2006 3Q 2006 Change
(14 weeks) (13 weeks)
Contribution to pre-tax
earnings (millions) $120 $115 $5
Fine paper sales volumes in the fourth quarter remained unchanged on a per-day basis from third quarter while average sales realizations declined $3 per scale weight ton. Pulp sales volume and prices improved during the fourth quarter.
Fourth quarter manufacturing costs increased slightly due to rising raw material costs and a seasonal increase in energy costs. Lower freight and chemical costs, combined with a favorable effect from a weakening Canadian dollar partially, partially offset the higher material and energy costs.
Weyerhaeuser expects that first quarter market conditions for this segment will remain favorable. The company anticipates that fine paper prices will remain relatively unchanged and demand will strengthen. Market conditions for pulp are expected to improve and lead to stronger prices. Weyerhaeuser expects the scheduled completion of the announced Domtar transaction the first week of March to affect first quarter earnings. Upon closing, this transaction will eliminate the earnings of the fine paper business and certain related cellulose fiber assets from this segment. Excluding the assets transferring to Domtar, this segment contributed earnings of approximately $44 million in the fourth quarter. Additionally, Weyerhaeuser expects manufacturing costs to increase due to scheduled annual maintenance outages at several facilities, which will be accounted for on an actual expense incurred basis.
CONTAINERBOARD, PACKAGING AND RECYCLING
4Q 2006 3Q 2006 Change
(14 weeks) (13 weeks)
Contribution to pre-tax earnings (millions) $71 $96 ($25)
Fourth quarter earnings decreased from the third quarter primarily due to a higher spending at packaging facilities on maintenance and modernizations, and seasonally higher natural gas consumption at the containerboard mills.
Packaging prices decreased slightly due to mix and containerboard prices increased due to higher realizations on export shipments. Packaging shipments declined slightly on a workday basis while containerboard shipments increased 17 percent on a per day basis with strong growth occurring in export markets. During fourth quarter, Weyerhaeuser adjusted containerboard operating rates to match customer demand.
The company expects first quarter earnings to be slightly lower compared with fourth quarter. Price realizations for containerboard and packaging are expected to increase in the first quarter. Weyerhaeuser expects packaging shipments to decline on a workday basis due to the effect of California's cold weather on produce markets. Prices for OCC and wood chips are increasing rapidly from fourth quarter levels. The company expects its cost reduction initiatives to partially offset lower packaging shipments and higher fiber related costs.
REAL ESTATE AND RELATED ASSETS
4Q 2006 3Q 2006 Change
(14 weeks) (13 weeks)
Contribution to pre-tax earnings (millions) $293 $135 $158
Fourth quarter earnings include approximately $138 million from sales of land, lots and an apartment project. In addition, fourth quarter earnings benefited from seasonally increased single-family home closings and higher average sales prices compared to the prior quarter. Fourth quarter includes asset impairment charges of $19 million compared with $14 million in the third quarter.
New orders for single-family homes declined compared with the third quarter. The backlog of homes sold, but not closed, at the end of the fourth quarter is approximately three months' sales compared with five months' sales a year ago. Traffic declined 29 percent from the fourth quarter last year. The single-family cancellation rate was 36 percent, up from 22 percent at year-end 2005.
Weyerhaeuser expects first quarter real estate earnings to decline significantly from the fourth quarter. During the quarter, Weyerhaeuser anticipates seasonally lower single-family home closings. Discounting and sales concessions in the near term are expected to affect home prices and margins. There are no expected significant land sales transactions in the first quarter.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2006, sales were $21.9 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/.
EARNINGS CALL INFORMATION
The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Feb. 9 to discuss fourth quarter results.
To access the conference call from within North America, dial 1-800-218-0530 at least 15 minutes prior to the call. Those calling from outside North America should dial 1-303-262-2050. Replays will be available for one week at 1-800-405-2236 (access code - 11080278#) from within North America and at 1-303-590-3000 (access code - 11080278#) from outside North America.
The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ by clicking on the "Q4 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's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected site, StreetEvents (http://www.streetevents.com/).
ADDITIONAL INFORMATION
This announcement is for informational purposes only and is neither an offer to sell nor an offer to buy any securities or a recommendation as to whether you should participate in the exchange offer announced previously. The offer is made solely by a Prospectus-Offer to Exchange and related letters of transmittal.
Investors and shareholders are urged to read the Prospectus-Offer to Exchange, and any other relevant documents filed with the Securities and Exchange Commission, when they become available and before making any investment decisions. None of Weyerhaeuser, Weyerhaeuser Company Limited, Domtar Inc., Domtar Corporation or any of their respective directors or officers makes any recommendation as to whether you should participate in the exchange offer. You can obtain a free copy of the Prospectus-Offer to Exchange and other related documents filed by Weyerhaeuser or Domtar Corporation with the Securities and Exchange Commission at www.sec.gov.
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 first quarter 2007; expected earnings and performance of the company's business segments during the first quarter 2007, demand and pricing for the company's products in the first quarter 2007, lower domestic log prices in the first quarter 2007, lower to timber fee harvest volumes in the South during the first quarter 2007, timing of closing of transaction with Domtar; increases in manufacturing costs in the Cellulose Fiber and White Paper Business due to scheduled annual maintenance outages at certain facilities in first quarter 2007; decline of packaging shipments due to the effect of California's weather on produce markets; increases in prices for OCC and wood chips, expectations for cost reduction initiatives, 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 including cost
reduction initiatives;
-- The level of competition from domestic and foreign producers;
-- The effect of forestry, land use, environmental and other governmental
policies and 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 failure to obtain governmental approvals of the Domtar transaction
on the proposed terms and schedule; the failure to obtain approval by
shareholders and option holders of Domtar and a material adverse change
in the business, assets, financial condition or results of operations
of Domtar, or the portion of the Company's Cellulose Fiber and White
Papers Business to be combined with Domtar;
-- 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. 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 Q3
(in millions) March 26, March 27, June 25, June 26, Sept. 24, Sept. 25,
2006 2005 2006 2005 2006 2005
Net sales and
revenues:
Weyerhaeuser (1) $4,566 $4,577 $4,911 $5,017 $4,579 $4,836
Real Estate and
Related Assets 690 655 746 648 749 596
Total net sales and
revenues 5,256 5,232 5,657 5,665 5,328 5,432
Costs and expenses:
Weyerhaeuser:
Costs of products
sold (2) 3,652 3,544 3,855 3,871 3,628 3,841
Depreciation,
depletion and
amortization 306 316 305 319 305 320
Selling expenses 109 115 126 117 123 116
General and
administrative
expenses 259 225 228 219 237 239
Research and
development
expenses (3) 16 14 15 12 23 18
Charges for
restructuring (4) -- 5 18 4 4 2
Charges for
closure of
facilities (5) 1 5 17 3 43 29
Impairment of
goodwill (6) 746 -- 3 -- -- --
Refund of
countervailing
and anti-dumping
duties -- -- -- -- -- --
Other operating
costs, net
(2)(7)(8) 31 9 (23) (39) (34) (33)
5,120 4,233 4,544 4,506 4,329 4,532
Real Estate and
Related Assets:
Costs and
operating
expenses (9) 482 426 553 441 539 401
Depreciation and
amortization 3 3 4 4 10 4
Selling expenses 37 34 43 36 44 36
General and
administrative
expenses 30 24 35 25 30 28
Other operating
costs, net (3) -- 3 (2) (2) (2)
Impairment of
long-lived
assets -- -- 3 -- 14 --
549 487 641 504 635 467
Total costs and
expenses 5,669 4,720 5,185 5,010 4,964 4,999
Operating income (413) 512 472 655 364 433
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred (10) (152) (196) (152) (179) (149) (193)
Less: interest
capitalized (2) 16 -- 20 2 21 3
Interest income
and other (11) 19 27 15 20 17 143
Equity in income
(loss) of
affiliates (12) 3 -- 6 4 -- 2
Real Estate and
Related Assets:
Interest expense
incurred (14) (14) (14) (14) (12) (13)
Less: interest
capitalized 14 14 14 14 12 13
Interest income
and other 10 5 3 (2) 7 4
Equity in income
of unconsolidated
entities (13) 21 10 15 13 14 14
Earnings (loss) from
continuing
operations before
income taxes (496) 358 379 513 274 406
Income tax (expense)
benefit (14) (87) (125) (82) (225) (89) (119)
Earnings (loss) from
continuing
operations (583) 233 297 288 185 287
Earnings (loss) from
discontinued
operations, net of
taxes (15) 3 6 17 132 26 (2)
Net earnings (loss) $(580) $239 $314 $420 $211 $285
Basic net earnings
(loss) per share:
Continuing
operations $(2.37) $0.96 $1.20 $1.18 $0.75 $1.17
Discontinued
operations 0.01 0.02 0.07 0.54 0.10 (0.01)
Net earnings
(loss) per
share $(2.36) $0.98 $1.27 $1.72 $0.85 $1.16
Diluted net earnings
(loss) per share:
Continuing
operations $(2.37) $0.96 $1.19 $1.17 $0.75 $1.17
Discontinued
operations 0.01 0.02 0.07 0.54 0.10 (0.01)
Net earnings
(loss) per
share $(2.36) $0.98 $1.26 $1.71 $0.85 $1.16
Dividends paid per
share $0.50 $0.40 $0.50 $0.50 $0.60 $0.50
Weighted average
shares outstanding
(in thousands)
Basic 245,794 242,863 248,147 244,702 247,428 245,009
Diluted 245,794 244,185 249,194 245,881 247,900 246,190
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED
EARNINGS Q4 Year-to-date
(in millions) Dec. 31, Dec. 25, Dec. 31, Dec. 25,
2006 2005 2006 2005
Net sales and
revenues:
Weyerhaeuser (1) $4,505 $4,701 $18,561 $19,131
Real Estate and
Related Assets 1,150 1,016 3,335 2,915
Total net sales and
revenues 5,655 5,717 21,896 22,046
Costs and expenses:
Weyerhaeuser:
Costs of products
sold (2) 3,665 3,877 14,800 15,133
Depreciation,
depletion and
amortization 331 326 1,247 1,281
Selling expenses 134 107 492 455
General and
administrative
expenses 266 224 990 907
Research and
development
expenses (3) 15 17 69 61
Charges for
restructuring (4) -- 10 22 21
Charges for
closure of
facilities (5) 51 656 112 693
Impairment of
goodwill (6) -- -- 749 --
Refund of
countervailing
and anti-dumping
duties (344) -- (344) --
Other operating
costs, net
(2) (7)(8) (12) 19 (38) (44)
4,106 5,236 18,099 18,507
Real Estate and
Related Assets:
Costs and
operating
expenses (9) 764 678 2,338 1,946
Depreciation and
amortization 8 5 25 16
Selling expenses 56 46 180 152
General and
administrative
expenses 29 28 124 105
Other operating
costs, net (1) 1 (3) (3)
Impairment of
long-lived
assets 19 33 36 33
875 791 2,700 2,249
Total costs and
expenses 4,981 6,027 20,799 20,756
Operating income 674 (310) 1,097 1,290
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred (10) (162) (171) (615) (739)
Less: interest
capitalized (2) 28 54 85 59
Interest income
and other (11) 19 24 70 214
Equity in income
(loss) of
affiliates (12) (2) (12) 7 (6)
Real Estate and
Related Assets:
Interest expense
incurred (15) (14) (55) (55)
Less: interest
capitalized 15 14 55 55
Interest income
and other 10 5 30 12
Equity in income
of unconsolidated
entities (13) 8 20 58 57
Earnings (loss) from
continuing
operations before
income taxes 575 (390) 732 887
Income tax (expense)
benefit (14) (177) 151 (435) (318)
Earnings (loss) from
continuing
operations 398 (239) 297 569
Earnings (loss) from
discontinued
operations, net of
taxes (15) 52 28 98 164
Net earnings (loss) $450 $(211) $395 $733
Basic net earnings
(loss) per share:
Continuing
operations $1.67 $(0.98) $1.21 $2.33
Discontinued
operations 0.21 0.12 0.40 0.67
Net earnings
(loss) per
share $1.88 $(0.86) $1.61 $3.00
Diluted net earnings
(loss) per share:
Continuing
operations $1.67 $(0.98) $1.21 $2.32
Discontinued
operations 0.21 0.12 0.40 0.66
Net earnings
(loss) per
share $1.88 $(0.86) $1.61 $2.98
Dividends paid per
share $0.60 $0.50 $2.20 $1.90
Weighted average
shares outstanding
(in thousands)
Basic 238,824 245,215 244,931 244,447
Diluted 239,525 246,198 245,707 245,559
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS
(in millions)
Q1 Q1 Q2 Q2 Q3 Q3
2006 2005 2006 2005 2006 2005
(1) Includes countervailing and
anti-dumping duties and
related costs: $11 $22 $10 $27 $7 $19
(2) In the fourth quarter of 2005, Weyerhaeuser began capitalizing
interest on qualifying assets of Weyerhaeuser Real Estate Company
(WRECO). These amounts are included in Weyerhaeuser capitalized
interest. Weyerhaeuser cost of products sold includes amounts
recognized to expense previously capitalized interest in connection
with the sale of WRECO assets. The year-to-date 2005 amounts were
recorded in the fourth quarter of 2005. The net cumulative effect
for years prior to 2005 was recorded in Weyerhaeuser other operating
costs, net. Weyerhaeuser results include the following related to
capitalized interest on WRECO assets:
Q1 Q1 Q2 Q2 Q3 Q3
2006 2005 2006 2005 2006 2005
Cost of products sold: $7 $-- $7 $-- $8 $--
Interest capitalized: (14) -- (15) -- (17) --
Other operating costs, net: -- -- -- -- -- --
$(7) $-- $(8) $-- $(9) $--
(3) The third quarter of 2006 includes a $9 million charge related to the
acquisition of OrganicID, a research and development company.
(4) The second quarter of 2006 includes an $18 million charge related to
the restructuring of the Containerboard, Packaging and Recycling
business model.
(5) See detail of closure charges by segment on page 4.
(6) The first and second quarters of 2006 include charges of $746 million
and $3 million, respectively, for the impairment of goodwill
associated with the fine paper business.
Q1 Q1 Q2 Q2 Q3 Q3
2006 2005 2006 2005 2006 2005
(7) Includes net foreign exchange
gains (losses), primarily
from fluctuations in
Canadian and New Zealand
exchange rates: $(26) $13 $21 $(13) $17 $37
(8) The third quarter of 2006 includes $23 million of income related to a
reduction of the reserve for hardboard siding claims and charges of
$7 million for the impairment of fixed assets related to production
curtailments. The first quarter of 2005 includes a $12 million
charge related to 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 fourth
quarter of 2005 includes a $38 million charge related to the
settlement of linerboard antitrust litigation.
(9) The first quarter of 2006 includes income of $8 million related to
a warranty insurance recovery.
(10) The third and fourth quarters of 2005 include charges of $21 million
and $15 million, respectively, related to the early extinguishment of
debt.
(11) The third quarter of 2005 includes a $115 million gain on the sale
of an investment in a joint venture.
(12) The third quarter of 2006 includes a $2 million charge and the fourth
quarter of 2005 includes a $15 million charge related to the
impairment of investments in equity affiliates.
(13) The first quarter of 2006 includes recognition of $9 million of
deferred income in connection with partnership restructurings.
(14) 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.
(15) Discontinued operations includes the net operating results of the
company's coastal British Columbia operations and its North
American and European composites operations. The third quarter of
2006 includes a pretax gain of $51 million and related tax expense of
$18 million associated with the sale of the North American composites
operations and an $8 million charge to write off additional goodwill
associated with the coastal British Columbia operations. The fourth
quarter of 2006 includes a pretax gain of $45 million and related tax
expense of $4 million associated with the sale of the Irish
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)
FOOTNOTES TO CONSOLIDATED EARNINGS
(in millions)
Q4 Q4 Year-to-date
2006 2005 2006 2005
(1) Includes countervailing and
anti-dumping duties and related
costs: $-- $16 $28 $84
(2) In the fourth quarter of 2005, Weyerhaeuser began capitalizing
interest on qualifying assets of Weyerhaeuser Real Estate Company
(WRECO). These amounts are included in Weyerhaeuser capitalized
interest. Weyerhaeuser cost of products sold includes amounts
recognized to expense previously capitalized interest in connection
with the sale of WRECO assets. The year-to-date 2005 amounts were
recorded in the fourth quarter of 2005. The net cumulative effect
for years prior to 2005 was recorded in Weyerhaeuser other operating
costs, net. Weyerhaeuser results include the following related to
capitalized interest on WRECO assets:
Q4 Q4 Year-to-date
2006 2005 2006 2005
Cost of products sold: $13 $32 $35 $32
Interest capitalized: (22) (50) (68) (50)
Other operating costs, net: -- (25) -- (25)
$(9) $(43) $(33) $(43)
(3) The third quarter of 2006 includes a $9 million charge related to the
acquisition of OrganicID, a research and development company.
(4) The second quarter of 2006 includes an $18 million charge related to
the restructuring of the Containerboard, Packaging and Recycling
business model.
(5) See detail of closure charges by segment on page 4.
(6) The first and second quarters of 2006 include charges of $746 million
and $3 million, respectively, for the impairment of goodwill
associated with the fine paper business.
Q4 Q4 Year-to-date
2006 2005 2006 2005
(7) Includes net foreign exchange
gains (losses), primarily from
fluctuations in Canadian and New
Zealand exchange rates: $16 $(21) $28 $16
(8) The third quarter of 2006 includes $23 million of income related to a
reduction of the reserve for hardboard siding claims and charges of
$7 million for the impairment of fixed assets related to production
curtailments. The first quarter of 2005 includes a $12 million
charge related to 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 fourth
quarter of 2005 includes a $38 million charge related to the
settlement of linerboard antitrust litigation.
(9) The first quarter of 2006 includes income of $8 million related to
a warranty insurance recovery.
(10) The third and fourth quarters of 2005 include charges of $21 million
and $15 million, respectively, related to the early extinguishment of
debt.
(11) The third quarter of 2005 includes a $115 million gain on the sale
of an investment in a joint venture.
(12) The third quarter of 2006 includes a $2 million charge and the fourth
quarter of 2005 includes a $15 million charge related to the
impairment of investments in equity affiliates.
(13) The first quarter of 2006 includes recognition of $9 million of
deferred income in connection with partnership restructurings.
(14) 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.
(15) Discontinued operations includes the net operating results of the
company's coastal British Columbia operations and its North
American and European composites operations. The third quarter of
2006 includes a pretax gain of $51 million and related tax expense of
$18 million associated with the sale of the North American composites
operations and an $8 million charge to write off additional goodwill
associated with the coastal British Columbia operations. The fourth
quarter of 2006 includes a pretax gain of $45 million and related tax
expense of $4 million associated with the sale of the Irish
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 Q3
March March June June Sept. Sept.
26, 27, 25, 26, 24, 25,
2006 2005 2006 2005 2006 2005
Timberlands:
Logs $201 $182 $198 $195 $200 $188
Other products 62 82 71 63 46 65
263 264 269 258 246 253
Wood Products:
Softwood lumber 782 892 857 1,032 733 889
Plywood 135 183 147 196 134 184
Veneer 13 13 13 10 9 9
Composite panels 121 120 140 132 71 122
OSB 287 288 273 306 203 267
Hardwood lumber 99 94 105 102 96 95
Engineered I-Joists 169 150 202 202 162 186
Engineered Solid
Section 204 179 231 228 190 226
Logs 7 27 5 24 5 6
Other products 256 270 327 340 302 325
2,073 2,216 2,300 2,572 1,905 2,309
Cellulose Fiber and White
Papers:
Pulp 394 376 402 355 404 381
Paper 613 599 601 611 604 604
Coated groundwood 40 42 44 47 42 45
Liquid packaging board 46 47 62 52 59 50
Other products 14 14 17 12 21 16
1,107 1,078 1,126 1,077 1,130 1,096
Containerboard, Packaging
and Recycling:
Containerboard 82 117 84 101 92 86
Packaging 911 898 1,002 969 997 929
Recycling 80 92 85 92 89 87
Bags 20 22 20 21 23 20
Other products 34 34 46 40 44 47
1,127 1,163 1,237 1,223 1,245 1,169
Real Estate and Related
Assets 690 655 746 648 749 596
Corporate and Other 116 149 117 151 123 146
Less: sales of
discontinued operations (120) (293) (138) (264) (70) (137)
$5,256 $5,232 $5,657 $5,665 $5,328 $5,432
Contribution (charge) to
pre-tax earnings:
(in millions) Q1 Q2 Q3
March March June June Sept. Sept.
26, 27, 25, 26, 24, 25,
2006 2005 2006 2005 2006 2005
Timberlands (1) (2) (4) $198 $200 $224 $210 $178 $191
Wood Products (1) (2) (5) 117 131 131 204 11 124
Cellulose Fiber and White
Papers (1) (2) (6) (763) 19 23 16 115 (2)
Containerboard, Packaging
and Recycling
(1) (2) (7) 22 48 74 99 96 36
Real Estate and Related
Assets (2) (8) 172 183 123 156 135 145
Corporate and Other
(1) (2) (3) (9) (102) (17) (40) 99 (78) 101
$(356) $564 $535 $784 $457 $595
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Q4 Year-to-date
Dec. Dec. Dec. Dec.
31, 25, 31, 25,
2006 2005 2006 2005
Timberlands:
Logs $182 $196 $781 $761
Other products 56 76 235 286
238 272 1,016 1,047
Wood Products:
Softwood lumber 625 811 2,997 3,624
Plywood 113 172 529 735
Veneer 7 12 42 44
Composite panels 25 123 357 497
OSB 176 303 939 1,164
Hardwood lumber 98 99 398 390
Engineered I-Joists 137 166 670 704
Engineered Solid
Section 169 200 794 833
Logs 6 5 23 62
Other products 268 290 1,153 1,225
1,624 2,181 7,902 9,278
Cellulose Fiber and White
Papers:
Pulp 457 370 1,657 1,482
Paper 652 603 2,470 2,417
Coated groundwood 45 46 171 180
Liquid packaging board 62 54 229 203
Other products 22 12 74 54
1,238 1,085 4,601 4,336
Containerboard, Packaging
and Recycling:
Containerboard 119 91 377 395
Packaging 1,021 914 3,931 3,710
Recycling 91 81 345 352
Bags 25 20 88 83
Other products 47 46 171 167
1,303 1,152 4,912 4,707
Real Estate and Related
Assets 1,150 1,016 3,335 2,915
Corporate and Other 128 154 484 600
Less: sales of
discontinued operations (26) (143) (354) (837)
$5,655 $5,717 $21,896 $22,046
Contribution (charge) to
pre-tax earnings:
(in millions) Q4 Year-to-date
Dec. Dec. Dec. Dec.
31, 25, 31, 25,
2006 2005 2006 2005
Timberlands (1) (2) (4) $167 $183 $767 $784
Wood Products (1) (2) (5) 110 26 369 485
Cellulose Fiber and White
Papers (1) (2) (6) 120 (477) (505) (444)
Containerboard, Packaging
and Recycling
(1) (2) (7) 71 (188) 263 (5)
Real Estate and Related
Assets (2) (8) 293 250 723 734
Corporate and Other
(1) (2) (3) (9) (3) (17) (223) 166
$758 $(223) $1,394 $1,720
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
(in millions)
(1) Closure charges by segment: Q1 Q1 Q2 Q2 Q3 Q3
2006 2005 2006 2005 2006 2005
Timberlands $-- $3 $-- $-- $-- $--
Wood Products -- 1 1 1 10 6
Cellulose Fiber and White Papers (1) -- 11 -- 4 22
Containerboard, Packaging and
Recycling 2 4 5 2 3 1
Corporate and Other -- -- -- -- 26 --
$1 $8 $17 $3 $43 $29
The above closure charges for the third quarter of 2006 includes a
$26 million charge in the Corporate and Other segment for the
impairment of corporate assets related to the Prince Albert pulp and
paper facility. The first quarter and full year 2005 includes
$3 million of costs incurred within the company's discontinued
operations.
(2) Share-based compensation charges Q1 Q1 Q2 Q2 Q3 Q3
(income) recognized by segment: 2006 2005 2006 2005 2006 2005
Timberlands $1 $-- $-- $-- $-- $--
Wood Products 2 -- -- -- -- --
Cellulose Fiber and White Papers 1 -- -- -- 1 --
Containerboard, Packaging and
Recycling 2 -- (1) -- 1 --
Real Estate and Related Assets -- -- 2 -- -- --
Corporate and Other 15 2 (5) (6) 1 3
$21 $2 $(4) $(6) $3 $3
Q1 Q1 Q2 Q2 Q3 Q3
2006 2005 2006 2005 2006 2005
(3) Net foreign exchange gains
(losses) included in Corporate
and Other: $(26) $13 $20 $(12) $17 $38
(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 on page 1 regarding
countervailing duty and anti-dumping costs included in Wood
Products.
(b) The fourth quarter of 2006 includes $344 million of income from
the refund of countervailing and anti-dumping duties.
(c) The third quarter of 2006 includes $23 million of income related
to a reduction of the reserves for hardboard siding claims. 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.
(d) The third quarter of 2006 includes a $51 million gain on the
sale of the company's North American composites operations.
(e) The third quarter of 2006 includes charges of $7 million for
the impairment of fixed assets related to production
curtailments.
(f) 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 charges of
$746 million and $3 million, respectively, for the impairment of
goodwill associated with the fine paper business.
(7) Additional Containerboard, Packaging and Recycling notes:
(a) The second and third quarters of 2006 include charges of
$18 million and $3 million, respectively, 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, second, third and fourth quarters of 2006 include net
gains (losses) on land and lot sales of $33 million,
($1) million, $0, and $110 million, respectively, or $142 million
year-to-date. The fourth quarter of 2006 includes a $28 million
gain on the sale of an apartment building. 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, or $79 million year-to-date.
(c) The second, third, and fourth quarters of 2006 include charges
for the impairment of assets of $3 million, $14 million, and
$19 million, respectively, or $36 million year-to-date.
The fourth quarter of 2005 includes a $33 million charge for the
impairment of unimproved land.
(9) Additional Corporate and Other notes:
(a) The fourth quarter of 2006 includes a $45 million pretax gain on
the sale of the company's Irish composites operations.
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.
(b) The third quarter of 2006 includes an $8 million charge to write
off additional goodwill associated with the coastal British
Columbia operations.
(c) The third quarter of 2006 includes a $2 million charge and the
fourth quarter of 2005 includes a $15 million charge related to
the impairments of investments in equity affiliates.
(d) The third quarter of 2006 includes a $9 million charge related to
the acquisition of OrganicID, a research and development company.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
(in millions)
Q4 Q4 Year-to-date
2006 2005 2006 2005
(1) Closure charges by segment:
Timberlands $1 $3 $1 $6
Wood Products 48 91 59 99
Cellulose Fiber and White Papers (2) 427 12 449
Containerboard, Packaging and
Recycling 4 130 14 137
Corporate and Other -- 5 26 5
$51 $656 $112 $696
The above closure charges for the third quarter of 2006 includes a
$26 million charge in the Corporate and Other segment for the
impairment of corporate assets related to the Prince Albert pulp and
paper facility. The first quarter and full year 2005 includes
$3 million of costs incurred within the company's discontinued
operations.
Q4 Q4 Year-to-date
2006 2005 2006 2005
(2) Share-based compensation charges
(income) recognized by segment:
Timberlands $-- $-- $1 $--
Wood Products 1 -- 3 --
Cellulose Fiber and White Papers 1 -- 3 --
Containerboard, Packaging and
Recycling -- -- 2 --
Real Estate and Related Assets -- -- 2 --
Corporate and Other 7 12 18 11
$9 $12 $29 $11
Q4 Q4 Year-to-date
2006 2005 2006 2005
(3) Net foreign exchange gains
(losses) included in Corporate
and Other: $14 $(20) $25 $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 on page 1 regarding
countervailing duty and anti-dumping costs included in Wood
Products.
(b) The fourth quarter of 2006 includes $344 million of income from
the refund of countervailing and anti-dumping duties.
(c) The third quarter of 2006 includes $23 million of income related
to a reduction of the reserves for hardboard siding claims. 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.
(d) The third quarter of 2006 includes a $51 million gain on the
sale of the company's North American composites operations.
(e) The third quarter of 2006 includes charges of $7 million for
the impairment of fixed assets related to production
curtailments.
(f) 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 charges of
$746 million and $3 million, respectively, for the impairment of
goodwill associated with the fine paper business.
(7) Additional Containerboard, Packaging and Recycling notes:
(a) The second and third quarters of 2006 include charges of
$18 million and $3 million, respectively, 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, second, third and fourth quarters of 2006 include net
gains (losses) on land and lot sales of $33 million,
($1) million, $0, and $110 million, respectively, or $142 million
year-to-date. The fourth quarter of 2006 includes a $28 million
gain on the sale of an apartment building. 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, or $79 million year-to-date.
(c) The second, third, and fourth quarters of 2006 include charges
for the impairment of assets of $3 million, $14 million, and
$19 million, respectively, or $36 million year-to-date. The
fourth quarter of 2005 includes a $33 million charge for the
impairment of unimproved land.
(9) Additional Corporate and Other notes:
(a) The fourth quarter of 2006 includes a $45 million pretax gain on
the sale of the company's Irish composites operations. 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.
(b) The third quarter of 2006 includes an $8 million charge to write
off additional goodwill associated with the coastal British
Columbia operations.
(c) The third quarter of 2006 includes a $2 million charge and the
fourth quarter of 2005 includes a $15 million charge related to
the impairments of investments in equity affiliates.
(d) The third quarter of 2006 includes a $9 million charge related to
the acquisition of OrganicID, a research and development company.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party Q1 Q2 Q3
sales volumes: March 26, March 27, June 25, June 26, Sept. 24, Sept. 25,
2006 2005 2006 2005 2006 2005
Timberlands
(thousands):
Logs - cunits 935 864 808 863 850 886
Wood Products
(millions):
Softwood lumber
- board feet 1,921 2,057 2,113 2,355 1,974 2,179
Plywood - square
feet (3/8") 389 537 458 600 437 558
Veneer - square
feet (3/8") 61 60 63 59 48 51
Composite panels
- square
feet (3/4") 302 299 324 317 139 308
Oriented strand
board - square
feet (3/8") 1,000 908 1,069 1,041 989 1,008
Hardwood lumber
- board feet 103 102 110 114 100 105
Engineered
I-Joists -
lineal feet 114 108 137 138 110 125
Engineered Solid 1
Section - cubic
feet 9 9 11 10 9 10
Logs - cunits
(in thousands) 55 187 46 177 26 41
Cellulose Fiber
and White Papers
(thousands):
Pulp - air-dry
metric tons 651 629 647 587 625 653
Paper - tons 753 736 662 742 641 757
Coated
groundwood
- tons 52 58 59 62 59 56
Liquid packaging
board - tons 56 60 71 65 72 64
Paper converting
- tons 511 475 474 494 462 494
Containerboard,
Packaging and
Recycling
(thousands):
Containerboard
- tons 211 295 189 259 202 238
Packaging
- MSF 18,342 17,354 19,168 18,600 18,425 18,560
Recycling
- tons 733 692 719 695 678 665
Kraft bags and
sacks - tons 20 23 20 22 22 22
Real Estate and
Related Assets:
Single-family
homes sold 1,472 1,378 1,325 1,525 906 1,608
Single-family
homes closed 1,161 1,189 1,483 1,279 1,439 1,257
Single-family
homes sold
but not
closed at end
of period 3,105 2,561 2,947 2,807 2,414 3,158
Total Q1 Q2 Q3
production March 26, March 27, June 25, June 26, Sept. 24, Sept. 25,
volumes 2006 2005 2006 2005 2006 2005
Timberlands
(thousands):
Fee Depletion
- cunits 2,132 2,248 2,083 2,231 2,040 2,098
Wood Products
(millions):
Softwood
lumber
- board feet 1,663 1,821 1,650 1,869 1,559 1,651
Plywood
- square
feet (3/8") 241 303 245 302 237 296
Veneer
- square feet
(3/8") (1) 455 517 455 529 494 486
Composite panels
- square feet
(3/4") 278 267 288 282 100 268
Oriented strand
board - square
feet (3/8") 1,073 1,007 1,062 1,019 1,009 1,017
Hardwood lumber
- board feet 82 92 83 96 82 91
Engineered
I-Joists
- lineal feet 121 133 136 132 130 108
Engineered
Solid Section
- cubic feet 11 11 12 10 10 10
Cellulose Fiber
and White Papers
(thousands):
Pulp - air-dry
metric tons 676 621 588 614 660 663
Paper - tons (2) 724 763 672 752 675 765
Coated
groundwood
- tons 56 55 56 59 59 60
Liquid packaging
board - tons 61 60 75 64 73 69
Paper converting
- tons 498 475 461 487 485 483
Containerboard,
Packaging and
Recycling
(thousands):
Containerboard
- tons (3) 1,575 1,503 1,533 1,581 1,544 1,597
Packaging
- MSF 19,550 18,628 20,290 19,915 19,341 19,416
Recycling
- tons (4) 1,716 1,624 1,684 1,673 1,641 1,716
Kraft bags and
sacks - tons 19 23 20 22 18 21
(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 (unaudited)
Third party Q4 Year-to-date
sales volumes: Dec. 31, Dec. 25, Dec. 31, Dec. 25,
2006 2005 2006 2005
Timberlands
(thousands):
Logs - cunits 843 939 3,436 3,552
Wood Products
(millions):
Softwood lumber
- board feet 1,863 2,059 7,871 8,650
Plywood - square
feet (3/8") 379 485 1,663 2,180
Veneer - square
feet (3/8") 43 61 215 231
Composite panels
- square
feet (3/4") 37 305 802 1,229
Oriented strand
board - square
feet (3/8") 1,038 991 4,096 3,948
Hardwood lumber
- board feet 99 106 412 427
Engineered
I-Joists -
lineal feet 95 113 456 484
Engineered Solid
Section - cubic
feet 7 9 36 38
Logs - cunits
(in thousands) 42 46 169 451
Cellulose Fiber
and White Papers
(thousands):
Pulp - air-dry
metric tons 698 633 2,621 2,502
Paper - tons 693 761 2,749 2,996
Coated
groundwood
- tons 64 56 234 232
Liquid packaging
board - tons 76 69 275 258
Paper converting
- tons 485 501 1,932 1,964
Containerboard,
Packaging and
Recycling
(thousands):
Containerboard
- tons 254 254 856 1,046
Packaging
- MSF 18,932 19,117 74,867 73,631
Recycling
- tons 745 676 2,875 2,728
Kraft bags and
sacks - tons 27 22 89 89
Real Estate and
Related Assets:
Single-family
homes sold 838 1,174 4,541 5,685
Single-family
homes closed 1,753 1,922 5,836 5,647
Single-family
homes sold
but not
closed at end
of period 1,499 2,410 1,499 2,410
Total Q4 Year-to-date
production Dec. 31, Dec. 25, Dec. 31, Dec. 25,
volumes: 2006 2005 2006 2005
Timberlands
(thousands):
Fee Depletion
- cunits 2,195 2,153 8,450 8,730
Wood Products
(millions):
Softwood
lumber
- board feet 1,483 1,645 6,355 6,986
Plywood
- square
feet (3/8") 177 254 900 1,155
Veneer
- square feet
(3/8") (1) 335 447 1,739 1,979
Composite panels
- square feet
(3/4") 0 263 666 1,080
Oriented strand
board - square
feet (3/8") 1,022 1,035 4,166 4,078
Hardwood lumber
- board feet 77 85 324 364
Engineered
I-Joists
- lineal feet 86 110 473 483
Engineered
Solid Section
- cubic feet 8 10 41 41
Cellulose Fiber
and White Papers
(thousands):
Pulp - air-dry
metric tons 664 604 2,588 2,502
Paper - tons (2) 725 780 2,796 3,060
Coated
groundwood
- tons 59 60 230 234
Liquid packaging
board - tons 73 71 282 264
Paper converting
- tons 487 505 1,931 1,950
Containerboard,
Packaging and
Recycling
(thousands):
Containerboard
- tons (3) 1,608 1,587 6,260 6,268
Packaging
- MSF 20,670 20,130 79,851 78,089
Recycling
- tons (4) 1,788 1,730 6,829 6,743
Kraft bags and
sacks - tons 25 22 82 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 SHEETS (unaudited)
(in millions)
March 26, June 25, Sept. 24, Dec. 31, Dec. 25,
Assets 2006 2006 2006 2006 2005
Weyerhaeuser
Current assets:
Cash and short-term
investments $105 $113 $114 $223 $818
Receivables, less
allowances 1,807 1,920 1,816 1,569 1,707
Inventories 2,036 1,899 1,983 1,929 1,885
Prepaid expenses 433 427 440 437 414
Assets of discontinued
operations 53 51 36 -- 52
Total current
assets 4,434 4,410 4,389 4,158 4,876
Property and
equipment 10,124 10,107 9,926 10,009 10,345
Construction in
progress 640 607 640 407 527
Timber and timberlands
at cost, less fee
stumpage charged
to disposals 3,702 3,696 3,665 3,682 3,705
Investments in and
advances to equity
affiliates 475 479 490 499 486
Goodwill 2,235 2,243 2,254 2,203 2,982
Deferred pension
and other assets 1,284 1,303 1,265 1,400 1,314
Restricted assets
held by special
purpose entities 914 916 914 917 916
Non current assets
of discontinued
operations 169 168 52 171
23,977 23,929 23,595 23,275 25,322
Real Estate and Related
Assets
Cash and short-term
investments 39 36 13 20 286
Receivables, less
allowances 143 141 145 144 42
Real estate in
process of
development and
for sale 1,341 1,590 1,636 1,449 1,055
Land being processed
for development 1,298 1,282 1,355 1,365 1,037
Investments in
unconsolidated
entities, less
reserves 60 66 74 72 61
Other assets 353 420 422 423 296
Assets not owned,
consolidated under
FIN 46R 170 154 132 151 130
3,404 3,689 3,777 3,624 2,907
Total assets $27,381 $27,618 $27,372 $26,899 $28,229
Liabilities and
Shareholders'
Interest
Weyerhaeuser
Current liabilities:
Notes payable and
commercial paper $1 $2 $222 $72 $3
Current maturities
of long-term debt 693 551 492 494 381
Accounts payable 1,181 1,210 1,142 1,048 1,227
Accrued liabilities 1,252 1,326 1,098 1,515 1,622
Liabilities of
business held
for sale 19 15 14 -- 22
Total current
liabilities 3,146 3,104 2,968 3,129 3,255
Long-term debt 6,938 7,075 7,082 7,069 7,404
Deferred income
taxes 3,998 3,909 3,848 3,691 4,032
Deferred pension,
other
postretirement
benefits and
other liabilities 1,651 1,674 1,628 1,891 1,591
Liabilities
(nonrecourse to
Weyerhaeuser) held
by special purpose
entities 763 765 762 765 764
Non current
liabilities of
discontinued
operations 3 4 4 3
16,499 16,531 16,292 16,545 17,049
Real Estate and
Related Assets
Notes payable and
commercial paper 63 125 385 -- 3
Long-term debt 878 628 601 606 851
Other liabilities 568 707 766 606 417
Liabilities not
owned, consolidated
under FIN 46R 144 127 107 115 109
1,653 1,587 1,859 1,327 1,380
Total liabilities 18,152 18,118 18,151 17,872 18,429
Shareholders'
interest 9,229 9,500 9,221 9,027 9,800
Total liabilities
and shareholders'
interest $27,381 $27,618 $27,372 $26,899 $28,229
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
(in millions) Q1 Q2 Q3
March 26, March 27, June 25, June 26, Sept. 24, Sept. 25,
2006 2005 2006 2005 2006 2005
(Weyerhaeuser only,
excludes Real
Estate & Related
Assets)
Net cash from
operations $(209) $(203) $565 $723 $102 $452
Cash paid for
property and
equipment $(182) $(117) $(184) $(196) $(173) $(220)
Cash paid for
timberlands
reforestation $(12) $(12) $(9) $(6) $(6) $(6)
Cash received
from issuances
of debt $-- $-- $-- $1 $3 $--
Revolving credit
facilities,
notes and
commercial
paper
borrowings,
net $(68) $19 $19 $23 $195 $(40)
Payments on
debt $(158) $(404) $(10) $(206) $(58) $(986)
Proceeds from
the sale of
operations $-- $-- $-- $1,107 $187 $--
Repurchases of
common stock $-- $-- $-- $-- $(332) $--
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
(in millions) Q4 Year-to-date
Dec. 31, Dec. 25, Dec. 31, Dec. 25,
2006 2005 2006 2005
(Weyerhaeuser only,
excludes Real
Estate & Related
Assets)
Net cash from
operations $771 $648 $1,229 $1,620
Cash paid for
property and
equipment $(273) $(310) $(812) $(843)
Cash paid for
timberlands
reforestation $(10) $(8) $(37) $(32)
Cash received
from issuances
of debt $1 $172 $4 $173
Revolving credit
facilities,
notes and
commercial
paper
borrowings,
net $(95) $73 $51 $75
Payments on
debt $(5) $(582) $(231) $(2,178)
Proceeds from
the sale of
operations $86 $102 $273 $1,209
Repurchases of
common stock $(340) $(11) $(672) $(11)
Photo: http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-ahttp://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com
SOURCE: Weyerhaeuser Company
CONTACT: media, Bruce Amundson, +1-253-924-3047, or investors, Kathryn
McAuley, +1-253-924-2058, both of Weyerhaeuser Company
Web site: http://www.weyerhaeuser.com/