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Weyerhaeuser Reports 1st Quarter Net Earnings of $755 Million on Gain Realized in Connection With Domtar Transaction

PRNewswire-FirstCall
FEDERAL WAY, Wash.
May 4, 2007

Weyerhaeuser Company (NYSE: WY) today reported net earnings of $755 million for the first quarter of 2007, or $3.22 per diluted share, on sales of $3.9 billion.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-a )
  (Logo:  http://www.newscom.com/cgi-bin/prnh/20040116/WYLOGO-b )
  First quarter 2007 earnings include the following after-tax items:

  -- A gain of $756 million, or $3.22 per diluted share, on the distribution
     of the fine paper business and related assets to Weyerhaeuser
     shareholders. The gain includes a Canadian tax benefit of $74 million.
  -- A charge of $49 million, or 20 cents per diluted share, for asset
     impairments and closure costs.

Excluding these charges, the company earned $48 million, or 20 cents per diluted share.

First quarter 2006 results have been recast to reflect the fine paper business and related assets included in the Domtar transaction as discontinued operations and to apply a new accounting pronouncement to expense planned major maintenance costs as incurred.

For first quarter 2006, Weyerhaeuser reported a net loss of $576 million, or $2.34 per diluted share, on net sales of $4.5 billion. First quarter 2006 earnings include the following after-tax items:

  -- A charge of $746 million, or $3.03 per diluted share, for a write-off
     of goodwill associated with the fine paper business.
  -- Income of $12 million in the Real Estate business, or 5 cents per
     diluted share, associated with insurance recoveries and recognition of
     deferred income in connection with partnership restructurings.

  SUMMARY OF FIRST QUARTER BUSINESS PERFORMANCE

  -- Timberlands -- Log prices improved due to lower supply in the West.
  -- Wood Products -- Market conditions remained difficult.
  -- Containerboard, Packaging and Recycling -- Higher fiber and energy
     costs, combined with lower demand affected performance.
  -- Cellulose Fibers -- Prices continued to be strong for absorbent fibers,
     which is the segment's focus following the completion of the Domtar
     transaction.
  -- Real Estate and Related Assets -- The segment experienced fewer
     closings, lower margins, and decreased land and lot activity.
  -- Corporate and Other -- Results reflect the gain from the Domtar
     transaction.

  REVIEW OF STRATEGIC ALTERNATIVES FOR CBPR BUSINESS

Earlier this morning, the company announced that its board of directors has authorized a process to consider a broad range of strategic alternatives for its Containerboard, Packaging and Recycling business. Alternatives range from continuing to hold and operate the assets to a possible sale or combination. Weyerhaeuser will not speculate on the outcome of the review or whether it will result in any specific course of action.

STEVE ROGEL COMMENTS ON FIRST AND SECOND QUARTER

"During the first quarter, we delivered an installment on our commitment to focus Weyerhaeuser on those businesses where we have scale and scope to succeed," said Steven R. Rogel, chairman, president and chief executive officer. "By completing the innovative Domtar transaction, we created significant value for shareholders through a tax-free transaction and by reducing our outstanding shares by more than 25 million. But the quarter also saw us facing significant market challenges. In response, we aggressively managed production, costs and inventory levels.

"As we look to the second quarter, we see continued challenges in many of our markets, especially in wood products where we expect to see a weaker than normal increase in seasonal demand," Rogel said. "These conditions only underscore the need for us to continue to improve our operating performance and maintain our sharp focus on the strategic initiatives we're implementing to create more value for our shareholders."

  SUMMARY OF FIRST QUARTER FINANCIAL HIGHLIGHTS

  Millions (except per            1Q 2007         1Q 2006        Change
   share data)
  Net earnings (loss)                $755          ($576)        $1,331
  Earnings (loss) per diluted
   share                            $3.22         ($2.34)         $5.56
  Net sales                        $3,891          $4,452        ($561)

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

  Millions                        1Q 2007         1Q 2006        Change
  Timberlands                        $175            $198         ($23)
  Wood Products                    ($167)            $117        ($284)
  Cellulose Fibers(1)                 $22            ($5)           $27
  Fine Paper(2)                       $20          ($756)          $776
  Containerboard, Packaging
   and Recycling                      $67          $26           $41
  Real Estate and Related Assets      $58            $172        ($114)
  Corporate and Other                $633          ($102)          $735

  (1)  Segment previously known as Cellulose Fiber and White Papers
  (2)  Reflects two months of operations before transitioning to Domtar
       Corp. on March 7, 2007


  TIMBERLANDS

                                  1Q 2007         4Q 2006        Change
                               (13 weeks)      (14 weeks)
  Contribution to pre-tax
   earnings (millions)               $175            $167            $8


1Q 2007 Performance -- Earnings were stable as log prices were relatively unchanged throughout the quarter. Southern harvest levels declined due, in part, to the effects of damage to timberlands in Louisiana and Mississippi from Hurricane Katrina.

2Q 2007 Outlook -- Weyerhaeuser expects slightly lower earnings from this segment compared with first quarter as log supply increases seasonally and housing starts remain weak. Sales of non-strategic timberlands also will be lower in the second quarter due to timing of transaction closings.

  WOOD PRODUCTS
                                    1Q 2007        4Q 2006        Change
                                 (13 weeks)     (14 weeks)
  Contribution (charge) to pre-tax
   earnings (millions)               ($167)           $205        ($372)

1Q 2007 Performance -- Excluding the first quarter 2007 and fourth quarter 2006 items noted below, the segment's net loss decreased from the fourth quarter but still reflects the difficult market conditions.

First quarter 2007 included a pre-tax item of $56 million for impairment charges associated with the intended sales of the Canadian distribution business and Miramichi, New Brunswick oriented strand board mill.

  Fourth quarter 2006 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.
  -- Income of $95 million for reversal of the alder litigation reserve.
  -- Charges of $48 million for facility closures and related asset
     impairments.

Weak demand resulted in a five-year low for oriented strand board prices and modestly lower prices for engineered products compared with fourth quarter. Average lumber prices improved slightly from fourth quarter.

2Q 2007 Outlook -- The company expects a weak spring building season. Weyerhaeuser foresees some improvement in earnings compared with first quarter, but still expects the segment to operate at a significant loss.

  CELLULOSE FIBERS
                                   1Q 2007        4Q 2006         Change
                                (13 weeks)     (14 weeks)
  Contribution to pre-tax
   earnings (millions)                 $22            $58          ($36)


1Q 2007 Performance -- The first quarter was one of transition for the former Cellulose Fiber and White Papers segment. The company completed the Domtar transaction which included the fine paper business and the Kamloops, British Columbia pulp mill. Fine paper is now reported in a separate segment. Cellulose Fibers segment results included earnings of $9 million in first quarter 2007 from the Kamloops mill compared with $10 million in fourth quarter 2006.

During the first quarter, market conditions for absorbent fibers continued to improve. The segment's earnings were affected by costs for scheduled, annual maintenance downtime at the New Bern, N.C., Columbus, Miss., and Longview, Wash. mills. Weyerhaeuser now expenses those costs in the quarter they occur. Previously, the company had amortized planned major maintenance costs over the year.

2Q 2007 Outlook -- Weyerhaeuser expects stronger earnings from this segment compared with first quarter as prices for absorbent fibers continue to improve. The company plans to take routine, annual maintenance downtime at two mills during the quarter.

  CONTAINERBOARD, PACKAGING AND RECYCLING
                                   1Q 2007          4Q 2006        Change
                                (13 weeks)       (14 weeks)
  Contribution to pre-tax
   earnings (millions)                 $67              $71          ($4)

1Q 2007 Performance - Higher fiber and energy costs, combined with reduced sales volume resulted in slightly lower earnings compared with fourth quarter. During the quarter, prices for old corrugated containers and wood chips continued to increase. The California freeze reduced produce box demand. An ice storm caused a five-day curtailment at the Cedar River, Iowa containerboard mill. The segment benefited from its intense focus on reducing supply chain costs.

2Q 2007 Outlook -- Earnings for the segment are expected to increase from first quarter levels. The company expects that the benefits from seasonally higher box shipments will be partially offset by continued high fiber prices and costs for scheduled, annual maintenance downtime.

  REAL ESTATE AND RELATED ASSETS
                                    1Q 2007          4Q 2006       Change
                                 (13 weeks)       (14 weeks)
  Contribution to pre-tax
   earnings (millions)                  $58             $293        ($235)

1Q 2007 Performance -- Earnings decreased from fourth quarter due to lower margins and the seasonal decline in single-family home closings was amplified by a weak housing market. In addition, the fourth quarter included earnings of approximately $138 million from sales of land, lots and an apartment project. The backlog of homes sold, but not closed, is approximately five months.

2Q 2007 Outlook -- Weyerhaeuser expects earnings from this segment to be slightly lower than the first quarter as single-family margins continue to decline. Potential earnings from sale of land, lots or other real estate related assets may result in an improved earnings outlook.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest 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

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on May 4 to discuss first quarter results.

To access the conference call from within North America, dial 1-800-218-0530 at least 15 minutes before the call. Those calling from outside North America should dial 1-303-205-0033. Replays will be available for one week at 1-800-405-2236 (access code - 11087925#) from within North America and at 1-303-590-3000 (access code - 11087925#) from outside North America.

The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com/ by clicking on the "Q1 2007 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/).

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 second quarter 2007; expected earnings and performance of the company's business segments during the second quarter 2007, demand and pricing for the company's products in the second quarter 2007, seasonal increase in OCC and fiber costs in the second quarter 2007 and annual maintenance outages in the second quarter 2007; 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, pest
     infestation 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. 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                                                      Year-to-
  EARNINGS                    Q1           Q2       Q3       Q4       date
    (in millions)       April    March     June     Sept.    Dec.     Dec.
                          1,       26,      25,      24,      31,      31,
                         2007     2006     2006     2006     2006     2006
  Net sales and
   revenues:
    Weyerhaeuser        $3,404   $3,762   $4,122   $3,805   $3,649  $15,338
    Real Estate and
     Related Assets        487      690      746      749    1,150    3,335
  Total net sales and
   revenues              3,891    4,452    4,868    4,554    4,799   18,673

  Costs and expenses:
    Weyerhaeuser:
     Costs of products
      sold (1)           2,785    2,948    3,191    3,038    3,007   12,184
     Depreciation,
      depletion and
      amortization         232      233      232      232      252      949
     Selling expenses      109      100      116      112      123      451
     General and
      administrative
      expenses             200      235      205      214      241      895
     Research and
      development
      expenses (2)          16       16       15       23       15       69
     Charges (reversals)
      for restructuring
      (3)                    3       (1)      18        4      -         21
     Charges for
      closure of
      facilities (4)         5        2        5       15       50       72
     Impairment of
      goodwill (5)          22      -        -        -        -        -
     Refund of
      countervailing
      and anti-dumping
      duties               -        -        -        -       (344)    (344)
     Other operating
      costs (income),
      net (6) (7)           21       31      (26)     (36)    (107)    (138)
                         3,393    3,564    3,756    3,602    3,237   14,159
    Real Estate and
     Related Assets:
     Costs and
      operating
      expenses (8)         379      482      553      539      764    2,338
     Depreciation and
      amortization           6        3        4       10        8       25
     Selling expenses       41       37       43       44       56      180
     General and
      administrative
      expenses              28       30       35       30       29      124
     Other operating
      costs (income),
      net                   (4)      (3)       3       (2)      (1)      (3)
     Impairment of
      long-lived
      assets               -        -          3       14       19       36
                           450      549      641      635      875    2,700
  Total costs and
   expenses              3,843    4,113    4,397    4,237    4,112   16,859

  Operating income          48      339      471      317      687    1,814

  Interest expense and
   other:
    Weyerhaeuser:
     Interest expense
      incurred            (131)    (128)    (129)    (126)    (136)    (519)
     Less: interest
      capitalized           30       16       20       21       26       83
     Interest income
      and other             20       19       14       18       19       70
     Equity in income
      (loss) of
      affiliates (9)        (1)       3        7       (1)      (1)       8
    Real Estate and
     Related Assets:
     Interest expense
      incurred             (12)     (14)     (14)     (12)     (15)     (55)
     Less: interest
      capitalized           12       14       14       12       15       55
     Interest income
      and other              3       10        3        7       10       30
     Equity in income
      of unconsolidated
      entities              18       21       15       14        8       58
  Earnings (loss) from
   continuing operations
   before income taxes     (13)     280      401      250      613    1,544
  Income taxes (1) (10)     (3)    (100)     (91)     (84)    (202)    (477)
  Earnings (loss) from
   continuing operations   (16)     180      310      166      411    1,067
  Earnings (loss) from
   discontinued
   operations, net of
   taxes (11)              771     (756)     (13)      59       96     (614)
  Net earnings
   (loss) (1)             $755    $(576)    $297     $225     $507     $453

  Basic net earnings
   (loss) per share:
    Continuing
     operations         $(0.07)   $0.73    $1.25    $0.67    $1.72    $4.36
    Discontinued
     operations           3.31    (3.07)   (0.05)    0.24     0.40    (2.51)
    Net earnings
     (loss) per share    $3.24   $(2.34)   $1.20    $0.91    $2.12    $1.85

  Diluted net earnings
   (loss) per share:
    Continuing
     operations         $(0.07)   $0.73    $1.24    $0.67    $1.72    $4.34
    Discontinued
     operations           3.29    (3.07)   (0.05)    0.24     0.40    (2.50)
    Net earnings
     (loss) per share    $3.22   $(2.34)   $1.19    $0.91    $2.12    $1.84

  Dividends paid per
   share                 $0.60    $0.50    $0.50    $0.60    $0.60    $2.20

  Weighted average
   shares outstanding
   (in thousands):
    Basic              233,242  245,794  248,147  247,428  238,824  244,931
    Diluted            234,679  245,794  249,194  247,900  239,525  245,707
  Common and
   exchangeable shares
   outstanding at end
   of period (in
   thousands)          217,726  247,555  248,269  242,929  238,008  238,008


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  FOOTNOTES TO
   CONSOLIDATED
   EARNINGS
    (in millions)

  (1)  The following adjustments were made to 2006 quarterly results to
       apply a new accounting pronouncement to expense planned major
       maintenance costs as incurred:


                                                                    Year-to-
                                                                      date
                       Q1 2007   Q1 2006  Q2 2006  Q3 2006  Q4 2006   2006

    Cellulose Fibers      $-        $(5)    $(10)     $13       $2     $-
    Fine Paper             -          7      (10)       6       (3)     -
    Containerboard,
     Packaging, and
     Recycling             -          4       (5)       1      -        -
                           -          6      (25)      20       (1)     -
    Income taxes           -         (2)       8       (6)     -        -
    Net earnings
     (loss)               $-         $4     $(17)     $14      $(1)    $-


  (2)  The third quarter of 2006 includes a $9 million charge related to the
       acquisition of OrganicID, a research and development company.
  (3)  The second quarter of 2006 includes an $18 million charge related to
       the restructuring of the Containerboard, Packaging and Recycling
       business model.
  (4)  See detail of closure charges by segment on page 4.
  (5)  The first quarter of 2007 includes a charge of $22 for the impairment
       of goodwill associated with Canadian wood products distribution
       facilities.


                                                                    Year-to-
                                                                      date
                        Q1 2007  Q1 2006  Q2 2006  Q3 2006  Q4 2006   2006
  (6)  Includes net
        foreign exchange
        gains (losses),
        primarily from
        fluctuations in
        Canadian and New
        Zealand exchange
        rates:             $7     $(26)     $21      $17      $15      $27


  (7)  The first quarter of 2007 includes $34 million in asset impairments
       related to wood products facilities. 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
       fourth quarter of 2006 includes $95 million of income related to a
       reversal of the reserve for alder litigation claims.
  (8)  The first quarter of 2006 includes income of $8 million related to a
       warranty insurance recovery.
  (9)  The third quarter of 2006 includes a $2 million charge related to the
       impairment of investments in equity affiliates.
  (10) 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.
  (11) Discontinued operations includes the net operating results of the
       operations of Fine Paper and Related Assets and the North American
       and European composite panels operations. The first quarter of 2007
       includes a pretax gain of $682 million and related tax benefit of $74
       million on the distribution of the fine paper business and related
       assets to Weyerhaeuser shareholders. 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. 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 composite panels 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 composite panels
       operations.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Net sales and
   revenues (in                                                     Year-to-
   millions): (1)(2)          Q1             Q2       Q3       Q4      date
                         April     March    June     Sept.    Dec.     Dec.
                           1,       26,      25,      24,      31,      31,
                          2007     2006     2006     2006     2006     2006
  Timberlands:
    Logs                  $170     $201     $198     $200     $182     $781
    Other products          63       62       71       46       56      235
                           233      263      269      246      238    1,016
  Wood Products:
    Softwood lumber        574      782      857      733      625    2,997
    Plywood                100      135      147      134      113      529
    Veneer                   9       13       13        9        7       42
    Composite panels        24      121      140       71       25      357
    Oriented strand board  152      287      273      203      176      939
    Hardwood lumber         90       99      105       96       98      398
    Engineered I-Joists    117      169      202      162      137      670
    Engineered solid
     section               155      204      231      190      169      794
    Logs                     6        7        5        5        6       23
    Other products         243      256      327      302      268    1,153
                         1,470    2,073    2,300    1,905    1,624    7,902
  Cellulose Fibers:
    Pulp                   405      394      402      404      457    1,657
    Liquid packaging
     board                  56       46       62       59       62      229
    Other products          21       13       16       19       22       70
                           482      453      480      482      541    1,956

  Fine Paper: (2)
    Paper                  432      613      601      604      652    2,470
    Coated groundwood       26       40       44       42       45      171
    Other products           1        1        1        2      -          4
                           459      654      646      648      697    2,645

  Containerboard,
   Packaging and
   Recycling:
    Containerboard         119       82       84       92      119      377
    Packaging              951      911    1,002      997    1,021    3,931
    Recycling               94       80       85       89       91      345
    Bags                    23       20       20       23       25       88
    Other products          39       34       46       44       47      171
                         1,226    1,127    1,237    1,245    1,303    4,912

  Real Estate and
   Related Assets          487      690      746      749    1,150    3,335

  Corporate and Other       97      116      117      123      128      484

  Less: sales of
   discontinued
   operations             (563)    (924)    (927)    (844)    (882)  (3,577)

                        $3,891   $4,452   $4,868   $4,554   $4,799  $18,673


  (1)  The fourth quarter of 2006 includes 14 weeks of operations compared
       to 13 weeks in all other quarters.
  (2)  First quarter 2007 results include 9 weeks of operations for Fine
       Paper and related assets, prior to the distribution of these assets
       to Weyerhaeuser shareholders.


  Contribution
   (charge) to pre-tax                                              Year-to-
   earnings:                   Q1            Q2       Q3       Q4      date
    (in millions)        April    March     June     Sept.    Dec.     Dec.
                           1,       26,      25,      24,      31,      31,
                          2007     2006     2006     2006     2006     2006

  Timberlands (1) (2)     $175     $198     $224     $178     $167     $767
  Wood Products (1)
   (2) (5)                (167)     117      131       11      205      464
  Cellulose Fibers
   (1) (2) (4)              22       (5)      23       66       58      142
  Fine Paper (1) (2)
   (4) (6)                  20     (756)     (20)      68       61     (647)
  Containerboard,
   Packaging and
   Recycling (1) (2)
   (4) (7)                  67       26       69       97       71      263
  Real Estate and
   Related Assets (2) (8)   58      172      123      135      293      723
  Corporate and Other
   (1) (2) (3) (9)         633     (102)     (40)     (78)      (3)    (223)
                          $808    $(350)    $510     $477     $852   $1,489


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  FOOTNOTES TO
   CONTRIBUTION
   (CHARGE) TO PRE-TAX
   EARNINGS
  (in millions)

                                                                    Year-to-
  (1) Closure charges by                                                date
       segment:         Q1 2007  Q1 2006  Q2 2006  Q3 2006   Q4 2006    2006

      Timberlands         $-       $-       $-       $-         $1       $1
      Wood Products          3      -          1       10       48       59
      Cellulose Fibers     -         (1)     -          1       (3)      (3)
      Fine Paper             2      -         11        3        1       15
      Containerboard,
       Packaging and
       Recycling             2        2        5        3        4       14
      Corporate and
       Other               -        -        -         26      -         26
                            $7       $1      $17      $43      $51     $112


The above closure charges include costs incurred within the company's discontinued operations.

  (2) Share-based
       compensation
       charges (income)                                             Year-to-
       recognized by                                                    date
       segment:         Q1 2007  Q1 2006  Q2 2006  Q3 2006  Q4 2006     2006

      Timberlands           $1       $1     $-       $-       $-         $1
      Wood Products          2        2      -        -          1        3
      Cellulose Fibers       2        1      -        -          1        2
      Fine Paper           -        -        -          1      -          1
      Containerboard,
       Packaging and
       Recycling             1        2       (1)       1      -          2
      Real Estate and
       Related Assets        2      -          2      -        -          2
      Corporate and
       Other                14       15       (5)       1        7       18
                           $22      $21      $(4)      $3       $9      $29


  (3) Net foreign
       exchange gains                                               Year-to-
       (losses) included                                                date
       in Corporate and   Q1 2007  Q1 2006  Q2 2006  Q3 2006  Q4 2006   2006

       Other:                $7     $(26)     $20      $17      $14      $25

  (4)  See detail of quarterly adjustments made to apply a new accounting
       pronouncement to expense planned major maintenance costs as incurred
       on page 2.
  (5)  Additional Wood Products notes:

       (a) The first quarter of 2007 includes charges of $22 for the
           impairment of goodwill associated with Canadian distribution
           facilities and $34 million in asset impairments related to wood
           products facilities.
       (b) The third quarter of 2006 includes $23 million of income related
           to a reduction of the reserves for hardboard siding claims.
       (c) The third quarter of 2006 includes a $51 million gain on the sale
           of the company's North American composite panels operations.
       (d) The third quarter of 2006 includes charges of $7 million for the
           impairment of fixed assets related to production curtailments.
       (e) The fourth quarter of 2006 includes $344 million of income from
           the refund of countervailing and anti-dumping duties.
       (f) The fourth quarter of 2006 includes $95 million of income related
           to a reversal of the reserves for alder litigation claims.

  (6) Additional Fine Paper 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.

  (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 quarter of 2007 includes net gains on land and lot
           sales of $3 million. 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 also
           includes a $28 million gain on the sale of an apartment building.
       (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.

  (9) Additional Corporate and Other notes:

       (a) The first quarter of 2007 includes a $682 million pretax gain on
           the distribution of the Fine Paper business and related assets to
           Weyerhaeuser shareholders.
       (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 $9 million charge related to
           the acquisition of OrganicID, a research and development company.
       (d) The fourth quarter of 2006 includes a $45 million pretax gain on
           the sale of the company's Irish composite panels operations.


  WEYERHAEUSER COMPANY
  STATISTICAL INFORMATION  (unaudited)

  Third party sales                                                 Year-to-
   volumes: (1)(2)            Q1             Q2       Q3       Q4     date
                         April    March     June     Sept.    Dec.    Dec.
                           1,       26,      25,      24,      31,     31,
                          2007     2006     2006     2006     2006    2006
  Timberlands
   (thousands):
    Logs - cunits          750      935      808      850      843    3,436

  Wood Products
   (millions):
    Softwood lumber -
     board feet          1,657    1,921    2,113    1,974    1,863    7,871
    Plywood  - square
     feet (3/8")           310      389      458      437      379    1,663
    Veneer - square
     feet (3/8")            57       61       63       48       43      215
    Composite panels -
     square feet
     (3/4")                 36      302      324      139       37      802
    Oriented strand
     board - square
     feet (3/8")           942    1,000    1,069      989    1,038    4,096
    Hardwood lumber -
     board feet             89      103      110      100       99      412
    Engineered I-Joists
     - lineal feet          82      114      137      110       95      456
    Engineered solid
     section - cubic
     feet                    7        9       11        9        7       36
    Logs - cunits (in
     thousands)             46       55       46       26       42      169

  Cellulose Fibers
   (thousands):
    Pulp - air-dry
     metric tons           594      651      647      625      698    2,621
    Liquid packaging
     board  - tons          67       56       71       72       76      275

  Fine Paper
   (thousands): (2)
    Paper - tons           461      753      662      641      693    2,749
    Coated groundwood
     - tons                 38       52       59       59       64      234
    Paper converting -
     tons                  318      511      474      462      485    1,932

  Containerboard,
   Packaging and
   Recycling
   (thousands):
    Containerboard -
     tons                  259      211      189      202      254      856
    Packaging - MSF     17,754   18,342   19,168   18,425   18,932   74,867
    Recycling - tons       654      733      719      678      745    2,875
    Kraft bags and
     sacks - tons           25       20       20       22       27       89

  Real Estate and
   Related Assets:
    Single-family
     homes sold          1,684    1,472    1,325      906      838    4,541
    Single-family
     homes closed          976    1,161    1,483    1,439    1,753    5,836
    Single-family
     homes sold but
     not closed at end
     of period           2,207    3,105    2,947    2,414    1,499    1,499

  (1)  The fourth quarter of 2006 includes 14 weeks of operations compared
       to 13 weeks in all other quarters.
  (2)  First quarter 2007 results include 9 weeks of operations for Fine
       Paper and related assets, prior to the distribution of these assets
       to Weyerhaeuser shareholders.


  WEYERHAEUSER COMPANY
  STATISTICAL
   INFORMATION

  Total production                                                  Year-to-
   volumes: (1)(2)             Q1            Q2       Q3       Q4      date
                         April    March     June     Sept.    Dec.     Dec.
                           1,       26,      25,      24,      31,      31,
                          2007     2006     2006     2006     2006     2006
  Timberlands
   (thousands):
    Fee depletion  -
     cunits              2,140    2,132    2,083    2,040    2,195    8,450

  Wood Products
   (millions):
    Softwood lumber -
     board feet          1,427    1,663    1,650    1,559    1,483    6,355
    Plywood - square
     feet (3/8")           114      241      245      237      177      900
    Veneer - square
     feet (3/8") (3)       298      455      455      494      335    1,739
    Composite panels -
     square feet
     (3/4")                -        278      288      100      -        666
    Oriented strand
     board - square
     feet (3/8")           968    1,073    1,062    1,009    1,022    4,166
    Hardwood lumber -
     board feet             73       82       83       82       77      324
    Engineered I-Joists
     - lineal feet          87      121      136      130       86      473
    Engineered solid
     section - cubic
     feet                    6       11       12       10        8       41

  Cellulose Fibers
   (thousands):
    Pulp - air-dry
     metric tons           539      676      588      660      664    2,588
    Liquid packaging
     board  - tons          60       61       75       73       73      282

  Fine Paper
   (thousands): (2)
    Paper - tons (4)       444      724      672      675      725    2,796
    Coated groundwood
     - tons                 43       56       56       59       59      230
    Paper converting -
     tons                  318      498      461      485      487    1,931

  Containerboard,
   Packaging and
   Recycling
   (thousands):
    Containerboard -
     tons (5)            1,515    1,575    1,533    1,544    1,608    6,260
    Packaging - MSF     19,007   19,550   20,290   19,341   20,670   79,851
    Recycling - tons
     (6)                 1,619    1,716    1,684    1,641    1,788    6,829
    Kraft bags and
     sacks - tons           23       19       20       18       25       82


  (1)  The fourth quarter of 2006 includes 14 weeks of operations compared
       to 13 weeks in all other quarters.
  (2)  First quarter 2007 results include 9 weeks of operations for Fine
       Paper and related assets, prior to the distribution of these assets
       to Weyerhaeuser shareholders.
  (3)  Veneer production represents lathe production and includes volumes
       that are further processed into plywood and engineered lumber
       products by company mills.
  (4)  Paper production includes unprocessed rolls and converted paper
       volumes.
  (5)  Containerboard production represents machine production and includes
       volumes that are further processed into packaging and kraft bags and
       sacks by company facilities.
  (6)  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)
                       April 1,                                     Dec. 31,
  Assets                  2007                                         2006
  Weyerhaeuser
    Current assets:
     Cash and cash
      equivalents       $1,172                                         $223
     Receivables, less
      allowances         1,394                                        1,183
     Inventories         1,437                                        1,367
     Prepaid expenses      356                                          396
     Assets held for
      sale                 114                                          105
     Current assets of
      discontinued
      operations           -                                            847
           Total
            current
            assets       4,473                                        4,121
    Property and
     equipment           6,850                                        7,067
    Construction in
     progress              467                                          395
    Timber and
     timberlands at
     cost, less fee
     stumpage charged
     to disposals        3,705                                        3,681
    Investments in and
     advances to
     equity affiliates     498                                          499
    Goodwill             2,158                                        2,185
    Deferred pension
     and other assets    1,378                                        1,369
    Restricted assets
     held by special
     purpose entities      915                                          917
    Noncurrent assets
     of discontinued
     operations            -                                          3,004
                        20,444                                       23,238

  Real Estate and
   Related Assets
    Cash and cash
     equivalents            13                                           20
    Receivables, less
     allowances             77                                          144
    Real estate in
     process of
     development and
     for sale            1,540                                        1,449
    Land being
     processed for
     development         1,427                                        1,365
    Investments in
     unconsolidated
     entities, less
     reserves               81                                           72
    Other assets           396                                          423
    Consolidated
     assets not owned      264                                          151
                         3,798                                        3,624
    Total assets       $24,242                                      $26,862

  Liabilities and
   Shareholders'
   Interest

  Weyerhaeuser
    Current
     liabilities:
     Notes payable and
      commercial paper    $163                                          $72
     Current
      maturities of
      long-term debt        70                                          494
     Accounts payable      920                                          948
     Accrued
      liabilities        1,220                                        1,350
     Current
      liabilities of
      discontinued
      operations           -                                            265
           Total
            current
            liabilities  2,373                                        3,129
    Long-term debt       6,849                                        7,069
    Deferred income
     taxes               2,897                                        3,021
    Deferred pension,
     other
     postretirement
     benefits
     and other
      liabilities        1,691                                        1,759
    Liabilities
     (nonrecourse to
     Weyerhaeuser)
     held by
     special purpose
      entities             763                                          765
    Noncurrent
     liabilities of
     discontinued
     operations            -                                            707
                        14,573                                       16,450
  Real Estate and
   Related Assets
    Notes payable and
     commercial paper      427                                          -
    Long-term debt         605                                          606
    Other liabilities      565                                          606
    Consolidated
     liabilities not
     owned                 232                                          115
                         1,829                                        1,327
    Total liabilities   16,402                                       17,777
    Shareholders'
     interest            7,840                                        9,085
    Total liabilities
     and shareholders'
     interest          $24,242                                      $26,862

  WEYERHAEUSER COMPANY
  STATISTICAL
   INFORMATION

  STATEMENT OF CASH
   FLOWS                                                            Year-to-
  SELECTED INFORMATION         Q1            Q2       Q3       Q4      date
   (unaudited)           April    March     June     Sept.    Dec.     Dec.
                           1,       26,      25,      24,      31,      31,
    (in millions)         2007     2006     2006     2006     2006     2006
  (Weyerhaeuser only,
   excludes Real
   Estate & Related
   Assets)

    Net cash from
     operations           $180    $(324)    $292     $373     $887   $1,228
    Cash paid for
     property and
     equipment           $(114)   $(182)   $(184)   $(173)   $(273)   $(812)
    Cash paid for
     timberlands
     reforestation        $(12)    $(12)     $(9)     $(6)    $(10)    $(37)
    Cash received from
     issuances of debt    $-       $-       $-         $3       $1       $4
    Revolving credit
     facilities, notes
     and commercial
     paper
     borrowings, net       $10     $(68)     $19     $195     $(95)     $51
    Payments on debt     $(638)   $(158)    $(10)    $(58)     $(5)   $(231)
    Proceeds from the
     sale of
     operations         $1,350     $-       $-       $187      $86     $273
    Repurchases of
     common stock         $-       $-       $-      $(332)   $(340)   $(672)

First Call Analyst:
FCMN Contact:

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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