Newsroom
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:
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/