Weyerhaeuser Net Earnings Increase to $790 Million for 2007
* Includes Gain on Fine Paper Divestiture
* Housing Market Remains Challenged
FEDERAL WAY, Wash.--(BUSINESS WIRE)--Feb. 8, 2008--Weyerhaeuser
Company (NYSE:WY) today reported net earnings of $790 million for
2007, or $3.59 per diluted share, on net sales of $16.3 billion. This
compares with net earnings of $453 million for 2006, or $1.84 per
diluted share, on net sales of $18.7 billion.
For the fourth quarter 2007, Weyerhaeuser reported a net loss of
63 million, or 30 cents per diluted share, on net sales of $3.9
billion. Last year, Weyerhaeuser reported fourth quarter net earnings
of $507 million, or $2.12 per diluted share, on net sales of $4.8
billion.
SIGNIFICANT FOURTH QUARTER 2007 AFTER-TAX ITEMS
After-Tax Gain Gain (Charge) per
(Charge) diluted share
($ millions) (cents)
Real Estate impairments ($85) (40)
Wood Products closures, restructuring
and asset impairments ($73) (35)
True-up deferred taxes on Domtar
transaction ($22) (10)
Sales of operating facilities and New
Zealand joint venture $27 13
Canadian federal tax rate and Mexican
tax law changes $13 6
Corporate restructuring, Packaging
closure and Timberlands wind storm
casualty loss charges ($13) (6)
Excluding these items, the company earned $90 million, or 42 cents per
diluted share, in the fourth quarter 2007.
SIGNIFICANT FOURTH QUARTER 2006 AFTER-TAX ITEMS
After-Tax Gain Gain (Charge) per
(Charge) diluted share
($ millions) (cents)
Canadian softwood lumber duty refund $227 95
Alder antitrust litigation reserve
reversal $58 24
Sale of composite panels assets in
Ireland $43 18
Asset impairments and closure costs,
primarily in Wood Products ($36) (15)
Real Estate impairments ($13) (5)
Excluding these items, the company earned $228 million, or 95 cents
per diluted share, in the fourth quarter of 2006.
"Two-thousand seven was a challenging year for our industry and
another busy one for Weyerhaeuser," said Steven R. Rogel, chairman and
chief executive officer. "We continued implementing international
repositioning and growth strategies in timberlands, improved our
Containerboard Packaging business operating performance and focused
our Cellulose Fibers business on specialty grades of pulp. In
addition, we completed our Fine Paper transaction with Domtar, which
created meaningful value for our shareholders.
"But the continuing erosion of the U.S. housing market created
very unfavorable market conditions for our Timberlands, Wood Products
and Real Estate businesses," Rogel said. "Despite difficult market
conditions, which we expect to continue through 2008, Weyerhaeuser
remains focused on managing through the downturn and positioning the
company to take full advantage of stronger markets once conditions
improve."
SUMMARY OF FOURTH QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 4Q 2007 4Q 2006 Change
(13 weeks) (14 weeks)
Net earnings (loss) ($63) $507 ($570)
Earnings (loss) per diluted share ($0.30) $2.12 ($2.42)
Net sales $3,937 $4,799 ($862)
SUMMARY OF ANNUAL FINANCIAL HIGHLIGHTS
Millions (except per share data) 2007 2006 Change
(52 weeks) (53 weeks)
Net earnings $790 $453 $337
Earnings per diluted share $3.59 $1.84 $1.75
Net sales $16,308 $18,671 ($2,363)
2006 sales have been recast to exclude the fine paper business and
related assets of the March 2007 Domtar transaction. These results are
reported as discontinued operations.
SEGMENT RESULTS FOR FOURTH QUARTER
(Contributions to Pre-Tax Earnings)
Millions 4Q 2007 4Q 2006 Change
(13 weeks) (14 weeks)
Timberlands $152 $167 ($15)
Wood Products ($313) $205 ($518)
Cellulose Fibers $80 $58 $22
Fine Paper $0 $61 ($61)
Containerboard, Packaging and Recycling $99 $71 $28
Real Estate $22 $293 ($271)
TIMBERLANDS
4Q 2007 3Q 2007 Change
Contribution to pre-tax earnings
(millions) $152 $165 ($13)
4Q 2007 Performance - Excluding the fourth quarter items noted
below, fourth quarter contribution to earnings decreased $30 million
from the third quarter.
Fourth quarter included the following pre-tax items: a gain of $27
million on the sale of a Washington log export facility and a charge
of $10 million for casualty losses resulting from a severe December
wind storm on the West Coast.
In the West, log prices declined significantly in both export and
domestic markets and volumes were modestly lower compared with third
quarter. Prices were slightly lower in the South. Logging costs
increased due to lower fee harvest and higher fuel costs. Fewer fourth
quarter sales of non-strategic timberlands also contributed to lower
earnings.
1Q 2008 Outlook - Weyerhaeuser expects Timberlands earnings to be
lower in the first quarter of 2008 compared with fourth quarter of
2007. The continued weakness in the housing market, particularly in
California, and the effect of the December storm are expected to
negatively affect Western operations. The company also anticipates
fewer sales of non-strategic timberlands in the first quarter.
WOOD PRODUCTS
4Q 2007 3Q 2007 Change
Contribution to pre-tax earnings (millions) ($313) ($131) ($182)
4Q 2007 Performance - Excluding the pre-tax items noted below, the
segment's net loss from operations increased $109 million from the
third quarter.
Fourth quarter 2007 includes charges of $98 million for facility
closures, asset impairments and restructuring costs.
Third quarter 2007 includes charges of $25 million for facility
closures, asset impairments and restructuring costs.
U.S. single-family housing starts declined 16% in the fourth
quarter and continued to negatively affect segment results. Average
prices and sales volumes for building products declined.
1Q 2008 Outlook - Weyerhaeuser expects no improvement in market
conditions in first quarter 2008, and expects to incur significant
losses in the Wood Products segment. The company will continue to
balance production to demand, which may result in further production
curtailments and mill closures.
CELLULOSE FIBERS
4Q 2007 3Q 2007 Change
Contribution to pre-tax earnings (millions) $80 $79 $1
4Q 2007 Performance - Average pulp price realizations increased as
a result of continued high demand and the weakening U.S. dollar.
Shipment volumes were up slightly and costs for annual maintenance
outages declined. These benefits were primarily offset by higher
chemical and energy costs.
1Q 2008 Outlook - Weyerhaeuser expects slightly lower earnings for
the segment in the first quarter of 2008. The company anticipates
market conditions for this segment will remain favorable and prices
for both pulp and liquid packaging are expected to increase. However,
these benefits are expected to be more than offset by higher costs and
lower production associated with annual maintenance outages. In
addition, the company expects higher chemical, fiber and energy costs.
CONTAINERBOARD, PACKAGING AND RECYCLING
4Q 2007 3Q 2007 Change
Contribution to pre-tax earnings (millions) $99 $104 ($5)
4Q 2007 Performance - During the fourth quarter, average packaging
and containerboard price realizations increased. Packaging shipments
declined seasonally and containerboard production volumes decreased as
the company matched its supply with customer demand. Energy costs
increased due to seasonally higher consumption and higher prices for
natural gas. Wood chip costs continued to increase.
1Q 2008 Outlook - Weyerhaeuser expects first quarter earnings for
the segment to be lower than fourth quarter. Packaging shipments are
expected to decline as a result of exiting low-margin business and
from seasonally lower demand. Packaging and containerboard price
realizations are expected to improve. The company expects higher fiber
and energy costs in the first quarter.
REAL ESTATE
4Q 2007 3Q 2007 Change
Contribution to pre-tax earnings (millions) $22 $60 ($38)
4Q 2007 Performance - Excluding the pre-tax items noted below, the
segment's earnings increased $60 million from third quarter.
Fourth quarter 2007 includes charges of $121 million for the
impairment of assets and investments.
Third quarter 2007 includes asset impairment charges of $23
million.
Gains from land sales increased $49 million. The segment's
homebuilding operations had seasonally higher closings of 1,244 units,
a 9 percent increase over third quarter. Net sales (orders) for the
period were 595 units, a decrease of 19 percent from third quarter.
The backlog of homes sold, but not closed, was 1,224 units, a decrease
of 35 percent compared to third quarter.
1Q 2008 Outlook - Weyerhaeuser expects a loss from this segment
due to difficult market conditions for selling new homes, a seasonal
reduction in single-family closings, and lower single-family margins.
The backlog of homes sold, but not closed, represents approximately
three months of single-family sales. Weyerhaeuser does not anticipate
any significant land or lot sales in first quarter 2008.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest forest products
companies, was incorporated in 1900. In 2007, sales were $16.3
billion. It has offices or operations in 13 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. 8 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 1-303-275-2170. Replays will be
available for one week at 1-800-405-2236 (access code - 11105215#)
from within North America and at 1-303-590-3000 (access code -
11105215#) from outside North America.
The call is being webcast through Weyerhaeuser's Internet site at
http://investor.weyerhaeuser.com by clicking on the "Q4 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 for first quarter 2008 regarding the
company's markets, earnings and performance of the company's business
segments, price realizations, demand, sales volumes and pricing for
the company's products, continued difficult housing markets, lower
timber fee harvest volumes and higher costs in the West, losses from
operations in Wood Products as a result of the continued poor market
conditions, increases in manufacturing costs in Cellulose Fiber due to
annual maintenance outages in certain facilities, decline of packaging
shipments, reduced land sales, product mix, increases in prices for
OCC and fiber, higher chemical and energy costs, operating postures
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 and
cost reduction initiatives;
* 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.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
(unaudited)
-------------------
CONSOLIDATED EARNINGS REVISED (1)
------------------- -------------------
(in millions) Q1 Q2
------------------- -------------------
April 1, March 26, July 1, June 25,
2007 2006 2007 2006
------------------- -------------------
Net sales and revenues:
Weyerhaeuser $ 3,404 $ 3,761 $ 3,775 $ 4,121
Real Estate and Related
Assets 487 690 559 746
------------------- -------------------
Total net sales and revenues 3,891 4,451 4,334 4,867
------------------- -------------------
Costs and expenses:
Weyerhaeuser:
Costs of products sold
(2) 2,785 2,947 3,085 3,190
Depreciation,
depletion and
amortization 232 233 223 231
Selling expenses 109 100 109 117
General and
administrative
expenses 200 235 199 205
Research and
development expenses
(3) 16 16 18 15
Charges (reversals)
for restructuring (4) 3 (1) 2 18
Charges for closure of
facilities (5) 5 2 19 5
Impairment of goodwill
(6) 22 - - -
Refund of
countervailing and
anti-dumping duties - - - -
Other operating costs
(income), net (7) (8) 21 31 5 (26)
------------------- -------------------
3,393 3,563 3,660 3,755
------------------- -------------------
Real Estate and Related
Assets:
Costs and operating
expenses (9) 379 482 415 553
Depreciation and
amortization 6 3 5 4
Selling expenses 41 37 45 43
General and
administrative
expenses 28 30 27 35
Other operating costs
(income), net (4) (3) 4 3
Impairment of long-
lived assets - - 12 3
------------------- -------------------
450 549 508 641
------------------- -------------------
Total costs and expenses 3,843 4,112 4,168 4,396
------------------- -------------------
Operating income 48 339 166 471
Interest expense and other:
Weyerhaeuser:
Interest expense
incurred (10) (131) (128) (179) (129)
Less: interest
capitalized 30 16 29 20
Interest income and
other 20 19 25 15
Equity in income
(loss) of affiliates
(11) (1) 3 1 6
Real Estate and Related
Assets:
Interest expense
incurred (12) (14) (16) (14)
Less: interest
capitalized 12 14 16 14
Interest income and
other (12) 3 10 1 3
Equity in income of
unconsolidated
entities (13) 18 21 12 15
------------------- -------------------
Earnings (loss) from
continuing operations before
income taxes (13) 280 55 401
Income taxes (2) (14) (3) (100) (18) (92)
------------------- -------------------
Earnings (loss) from
continuing operations (16) 180 37 309
Earnings (loss) from
discontinued operations, net
of taxes (15) 736 (756) (5) (11)
------------------- --------- ---------
Net earnings (loss) (2) $ 720 $ (576) $ 32 $ 298
=================== ===================
Basic net earnings (loss) per
share:
Continuing operations $ (0.07) $ 0.73 $ 0.17 $ 1.24
Discontinued operations 3.16 (3.07) (0.02) (0.04)
------------------- -------------------
Net earnings (loss) per
share $ 3.09 $ (2.34) $ 0.15 $ 1.20
=================== ===================
Diluted net earnings (loss)
per share:
Continuing operations $ (0.07) $ 0.73 $ 0.17 1.23
Discontinued operations 3.16 (3.06) (0.02) (0.04)
------------------- -------------------
Net earnings (loss) per
share $ 3.09 $ (2.33) $ 0.15 $ 1.19
=================== ===================
Dividends paid per share $ 0.60 $ 0.50 $ 0.60 $ 0.50
=================== ===================
Weighted average shares
outstanding (in thousands):
Basic 233,242 245,794 217,688 248,147
Diluted 233,242 246,970 218,743 249,194
Common and exchangeable shares
outstanding at end of period
(in thousands) 217,726 247,555 217,759 248,269
------------------- -------------------
STATISTICAL INFORMATION
(unaudited)
CONSOLIDATED EARNINGS
------------------- -------------------
(in millions) Q3 Q4
------------------- -------------------
Sept. 30, Sept. 24, Dec. 30, Dec. 31,
2007 2006 2007 2006
------------------- -------------------
Net sales and revenues:
Weyerhaeuser $ 3,548 $ 3,805 $ 3,222 $ 3,649
Real Estate and Related
Assets 598 749 715 1,150
------------------- -------------------
Total net sales and revenues 4,146 4,554 3,937 4,799
------------------- -------------------
Costs and expenses:
Weyerhaeuser:
Costs of products sold
(2) 2,845 3,038 2,660 3,007
Depreciation,
depletion and
amortization 230 231 215 252
Selling expenses 102 111 102 123
General and
administrative
expenses 184 214 188 241
Research and
development expenses
(3) 18 23 19 15
Charges (reversals)
for restructuring (4) 16 4 16 -
Charges for closure of
facilities (5) 19 15 81 50
Impairment of goodwill
(6) 1 - 7 -
Refund of
countervailing and
anti-dumping duties - - - (344)
Other operating costs
(income), net (7) (8) 1 (36) (34) (105)
------------------- -------------------
3,416 3,600 3,254 3,239
------------------- -------------------
Real Estate and Related
Assets:
Costs and operating
expenses (9) 451 539 507 764
Depreciation and
amortization 6 10 6 8
Selling expenses 45 44 48 56
General and
administrative
expenses 26 30 18 29
Other operating costs
(income), net (4) (2) 2 (1)
Impairment of long-
lived assets 23 14 93 19
------------------- -------------------
547 635 674 875
------------------- -------------------
Total costs and expenses 3,963 4,235 3,928 4,114
------------------- -------------------
Operating income 183 319 9 685
Interest expense and other:
Weyerhaeuser:
Interest expense
incurred (10) (131) (126) (133) (136)
Less: interest
capitalized 29 21 30 27
Interest income and
other 20 17 18 19
Equity in income
(loss) of affiliates
(11) 5 - (3) (2)
Real Estate and Related
Assets:
Interest expense
incurred (16) (12) (13) (15)
Less: interest
capitalized 16 12 13 15
Interest income and
other (12) 1 7 (6) 10
Equity in income of
unconsolidated
entities (13) 8 14 (13) 8
------------------- -------------------
Earnings (loss) from
continuing operations before
income taxes 115 252 (98) 611
Income taxes (2) (14) (41) (86) 54 (202)
------------------- -------------------
Earnings (loss) from
continuing operations 74 166 (44) 409
Earnings (loss) from
discontinued operations, net
of taxes (15) 27 58 (19) 98
------------------- -------------------
Net earnings (loss) (2) $ 101 $ 224 $ (63) $ 507
=================== ===================
Basic net earnings (loss) per
share:
Continuing operations $ 0.34 $ 0.67 $ (0.21) $ 1.72
Discontinued operations 0.13 0.24 (0.09) 0.40
------------------- -------------------
Net earnings (loss) per
share $ 0.47 $ 0.91 $ (0.30) $ 2.12
=================== ===================
Diluted net earnings (loss)
per share:
Continuing operations $ 0.34 $ 0.67 $ (0.21) $ 1.72
Discontinued operations 0.13 0.24 $ (0.09) 0.40
------------------- -------------------
Net earnings (loss) per
share $ 0.47 $ 0.91 $ (0.30) $ 2.12
=================== ===================
Dividends paid per share $ 0.60 $ 0.60 $ 0.60 $ 0.60
=================== ===================
Weighted average shares
outstanding (in thousands):
Basic 215,154 247,428 211,135 238,824
Diluted 215,828 247,900 211,135 239,525
Common and exchangeable shares
outstanding at end of period
(in thousands) 211,106 242,929 211,147 238,008
------------------- -------------------
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
-------------------
(in millions) Year-to-date
-------------------
Dec. 30, Dec. 31,
2007 2006
-------------------
Net sales and revenues:
Weyerhaeuser $ 13,949 $ 15,336
Real Estate and Related Assets 2,359 3,335
-------------------
Total net sales and revenues 16,308 18,671
-------------------
Costs and expenses:
Weyerhaeuser:
Costs of products sold (2) 11,375 12,182
Depreciation, depletion and amortization 900 947
Selling expenses 422 451
General and administrative expenses 771 895
Research and development expenses (3) 71 69
Charges (reversals) for restructuring (4) 37 21
Charges for closure of facilities (5) 124 72
Impairment of goodwill (6) 30 -
Refund of countervailing and anti-dumping
duties - (344)
Other operating costs (income), net (7)
(8) (7) (136)
-------------------
13,723 14,157
-------------------
Real Estate and Related Assets:
Costs and operating expenses (9) 1,752 2,338
Depreciation and amortization 23 25
Selling expenses 179 180
General and administrative expenses 99 124
Other operating costs (income), net (2) (3)
Impairment of long-lived assets 128 36
-------------------
2,179 2,700
-------------------
Total costs and expenses 15,902 16,857
-------------------
Operating income 406 1,814
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (10) (574) (519)
Less: interest capitalized 118 84
Interest income and other 83 70
Equity in income (loss) of affiliates (11) 2 7
Real Estate and Related Assets:
Interest expense incurred (57) (55)
Less: interest capitalized 57 55
Interest income and other (12) (1) 30
Equity in income of unconsolidated
entities (13) 25 58
-------------------
Earnings (loss) from continuing operations before
income taxes 59 1,544
Income taxes (2) (14) (8) (480)
-------------------
Earnings (loss) from continuing operations 51 1,064
Earnings (loss) from discontinued operations, net
of taxes (15) 739 (611)
-------------------
Net earnings (loss) (2) $ 790 $ 453
===================
Basic net earnings (loss) per share:
Continuing operations $ 0.23 $ 4.35
Discontinued operations 3.37 (2.50)
-------------------
Net earnings (loss) per share $ 3.60 $ 1.85
===================
Diluted net earnings (loss) per share:
Continuing operations $ 0.23 $ 4.33
Discontinued operations $ 3.36 (2.49)
-------------------
Net earnings (loss) per share $ 3.59 $ 1.84
===================
Dividends paid per share $ 2.40 $ 2.20
===================
Weighted average shares outstanding (in
thousands):
Basic 219,305 244,931
Diluted 220,277 245,780
Common and exchangeable shares outstanding at end
of period (in thousands) 211,147 238,008
-------------------
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS
(in millions)
(1) The first quarter of 2007 results have been revised to reflect an
adjustment to reduce the net gain on the Domtar Transaction by
$35 million after-tax. This adjustment is included in
discontinued operations.
(2) 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 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) 9 (7) - -
------- ------- ------- ------- ------------
Net earnings
(loss) $ 4 $ (16) $ 13 $ (1) $ -
======= ======= ======= ======= ============
(3) The third quarter of 2006 includes a $9 million charge related to
the acquisition of OrganicID, a research and development company.
(4) The third quarter of 2007 includes a charge of $7 million related
to the restructuring of administrative functions. The fourth
quarter of 2007 includes a charge of $14 million related to the
restructuring of wood products operations. 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 quarter of 2007 includes a charge of $22 million for the
impairment of goodwill associated with Canadian wood products
distribution facilities and the fourth quarter of 2007 includes a
charge of $7 million associated with U.S. wood products
distribution facilities.
----------- ----------- -----------
Q1 Q1 Q2 Q2 Q3 Q3
2007 2006 2007 2006 2007 2006
----------- ----------- -----------
(7) Includes net foreign exchange
gains (losses), primarily
from fluctuations in Canadian
and New Zealand exchange
rates: $ 7 $(26) $ 29 $ 21 $ 2 $ 17
----------- ----------- -----------
------------
Year-to-date
--------------- ------------
Q4 2007 Q4 2006 2007 2006
--------------- ------------
(7) Includes net foreign exchange gains
(losses), primarily from
fluctuations in Canadian and New
Zealand exchange rates: $ 7 $ 15 $ 45 $ 27
--------------- ------------
(8) (a) The first, second and fourth quarters of 2007 include $34
million, $12 million, and $6 million, respectively, in asset
impairments related to wood products facilities.
(b) The second quarter also includes a $29 million gain on the
sale of a previously closed box plant site, a $40 million
charge for legal settlements and a contract termination, and
$6 million in additional charges related to the sale of
Canadian Wood Products distribution facilities.
(c) The third quarter of 2007 includes gains of $9 million on the
sale of previously closed facility sites, a $4 million
charge for a legal settlement, and charges of $13 million to
transition to a new IT service provider.
(d) The fourth quarter of 2007 includes a charge of $10 million
for storm-related casualty losses, a gain of $27 million on
the sale of an export facility, and gains of $12 million on
sales of operations including our New Zealand joint venture.
(e) 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.
(f) The fourth quarter of 2006 includes $95 million of income
related to a reversal of the reserve for alder litigation
claims.
(9) (a) The fourth quarter of 2007 includes income of $11 million for
a warranty reserve adjustment.
(b) The first quarter of 2006 includes income of $8 million
related to a warranty insurance recovery.
(10) The second quarter of 2007 includes a $42 million charge related
to the early extinguishment of debt.
(11) The third quarter of 2006 includes a $2 million charge related to
the impairment of investments in equity affiliates.
(12) The fourth quarter of 2007 includes loan impairments of $9
million.
(13) The first, second and fourth quarters of 2007 include loan and
equity impairments of $2, $1 and $19 million, respectively, or
$22 million year-to-date.
(14) (a) The fourth quarter of 2007 includes a one-time tax benefit of
$22 million related to a reduction in the Canadian federal
income tax rate and a one-time charge of $9 million related
to a change in Mexican federal income tax laws.
(b) 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.
(15) Discontinued operations includes the net operating results of the
operations of the fine paper business and related assets and the
North American and European composite panels operations.
(a) The first quarter of 2007 includes a pre-tax gain of $629
million and related tax benefit of $92 million, the second
quarter of 2007 includes pre-tax charges of $4 million, and
the fourth quarter of 2007 includes a pre-tax charge of $19
million and related tax expense of $3 million related to the
distribution of the fine paper business and related assets
to Weyerhaeuser shareholders.
(b) The third quarter of 2007 includes pre-tax income of $43
million from the settlement of litigation associated with an
Ontario fine paper mill.
(c) 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.
(d) The third quarter of 2006 includes a pre-tax 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.
(e) The fourth quarter of 2006 includes a pre-tax 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: (1) (2)
------------------ ----------------
(in millions) Q1 Q2
------------------ ----------------
April 1, March 26, July 1, June 25,
2007 2006 2007 2006
------------------ ----------------
Timberlands:
Logs $ 170 $ 201 $ 172 $ 198
Other products 63 62 39 71
------------------ ----------------
233 263 211 269
------------------ ----------------
Wood Products:
Softwood lumber 574 782 647 857
Plywood 100 135 106 147
Veneer 9 13 14 13
Composite panels 24 121 24 140
Oriented strand board 152 287 153 273
Hardwood lumber 90 99 99 105
Engineered I-Joists 117 169 147 202
Engineered solid section 155 204 185 231
Logs 6 7 4 5
Other products 243 256 283 327
------------------ ----------------
1,470 2,073 1,662 2,300
------------------ ----------------
Cellulose Fibers:
Pulp 405 394 370 402
Liquid packaging board 56 46 72 62
Other products 21 13 28 16
------------------ ----------------
482 453 470 480
------------------ ----------------
Fine Paper: (2)
Paper 432 613 - 601
Coated groundwood 26 40 - 44
Other products 1 1 - 1
------------------ ----------------
459 654 - 646
------------------ ----------------
Containerboard, Packaging and
Recycling:
Containerboard 119 82 109 84
Packaging 951 911 1,043 1,002
Recycling 94 80 103 85
Bags 23 20 23 20
Other products 39 34 49 46
------------------ ----------------
1,226 1,127 1,327 1,237
------------------ ----------------
Real Estate and Related Assets 487 690 559 746
Corporate and Other 97 116 105 117
Less: sales of discontinued
operations (563) (925) - (928)
------------------ ----------------
$3,891 $4,451 $4,334 $4,867
================== ================
NET SALES AND REVENUES: (1) (2)
------------------- -----------------
(in millions) Q3 Q4
------------------- -----------------
Sept. 30, Sept. 24, Dec. 30, Dec. 31,
2007 2006 2007 2006
------------------- -----------------
Timberlands:
Logs $ 168 $ 200 $ 149 $ 182
Other products 81 46 68 56
------------------- -----------------
249 246 217 238
------------------- -----------------
Wood Products:
Softwood lumber 580 733 440 625
Plywood 89 134 71 113
Veneer 13 9 8 7
Composite panels 20 71 14 25
Oriented strand board 151 203 133 176
Hardwood lumber 89 96 77 98
Engineered I-Joists 124 162 79 137
Engineered solid section 155 190 113 169
Logs 3 5 4 6
Other products 225 302 179 268
------------------- -----------------
1,449 1,905 1,118 1,624
------------------- -----------------
Cellulose Fibers:
Pulp 345 404 358 457
Liquid packaging board 61 59 58 62
Other products 30 19 28 22
------------------- -----------------
436 482 444 541
------------------- -----------------
Fine Paper: (2)
Paper - 604 - 652
Coated groundwood - 42 - 45
Other products - 2 - -
------------------- -----------------
- 648 - 697
------------------- -----------------
Containerboard, Packaging and
Recycling:
Containerboard 99 92 130 119
Packaging 1,015 997 1,010 1,021
Recycling 106 89 110 91
Bags 23 23 27 25
Other products 50 44 45 47
------------------- -----------------
1,293 1,245 1,322 1,303
------------------- -----------------
Real Estate and Related Assets 598 749 715 1,150
Corporate and Other 121 123 121 128
Less: sales of discontinued
operations - (844) - (882)
------------------- -----------------
$ 4,146 $ 4,554 $ 3,937 $ 4,799
=================== =================
NET SALES AND REVENUES: (1) (2)
-----------------
(in millions) Year-to-date
-----------------
Dec. 30, Dec. 31,
2007 2006
-----------------
Timberlands:
Logs $ 659 $ 781
Other products 251 235
-----------------
910 1,016
-----------------
Wood Products:
Softwood lumber 2,241 2,997
Plywood 366 529
Veneer 44 42
Composite panels 82 357
Oriented strand board 589 939
Hardwood lumber 355 398
Engineered I-Joists 467 670
Engineered solid section 608 794
Logs 17 23
Other products 930 1,153
-----------------
5,699 7,902
-----------------
Cellulose Fibers:
Pulp 1,478 1,657
Liquid packaging board 247 229
Other products 107 70
-----------------
1,832 1,956
-----------------
Fine Paper: (2)
Paper 432 2,470
Coated groundwood 26 171
Other products 1 4
-----------------
459 2,645
-----------------
Containerboard, Packaging and Recycling:
Containerboard 457 377
Packaging 4,019 3,931
Recycling 413 345
Bags 96 88
Other products 183 171
-----------------
5,168 4,912
-----------------
Real Estate and Related Assets 2,359 3,335
Corporate and Other 444 484
Less: sales of discontinued operations (563) (3,579)
-----------------
$16,308 $18,671
=================
(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 the
fine paper business and related assets, prior to the distribution of
these assets to Weyerhaeuser shareholders.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONTRIBUTION (CHARGE) TO PRE-TAX
EARNINGS:
------------------
(in millions) REVISED (1)
------------------ ----------------
Q1 Q2
------------------ ----------------
April 1, March 26, July 1, June 25,
2007 2006 2007 2006
------------------ ----------------
Timberlands (2) (3) (6) $ 175 $ 198 $ 142 $ 224
Wood Products (2) (3) (7) (167) 117 (123) 131
Cellulose Fibers (2) (3) (5) 22 (5) 48 23
Fine Paper (2) (3) (5) (8) 20 (756) - (20)
Containerboard, Packaging and
Recycling (2) (3) (5) (9) 67 26 112 69
Real Estate and Related Assets (3)
(10) 58 172 64 123
Corporate and Other (2) (3) (4)
(11) 580 (102) (44) (40)
------------------ ----------------
$ 755 $ (350) $ 199 $ 510
================== ================
CONTRIBUTION (CHARGE) TO PRE-TAX
EARNINGS:
(in millions)
------------------- -----------------
Q3 Q4
------------------- -----------------
Sept. 30, Sept. 24, Dec. 30, Dec. 31,
2007 2006 2007 2006
------------------- -----------------
Timberlands (2) (3) (6) $ 165 $ 178 $ 152 $ 167
Wood Products (2) (3) (7) (131) 11 (313) 205
Cellulose Fibers (2) (3) (5) 79 66 80 58
Fine Paper (2) (3) (5) (8) - 68 - 61
Containerboard, Packaging and
Recycling (2) (3) (5) (9) 104 97 99 71
Real Estate and Related Assets
(3) (10) 60 135 22 293
Corporate and Other (2) (3) (4)
(11) (16) (78) (52) (3)
------------------- -----------------
$ 261 $ 477 $ (12) $ 852
=================== =================
CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS:
(in millions)
-----------------
Year-to-date
-----------------
Dec. 30, Dec. 31,
2007 2006
-----------------
Timberlands (2) (3) (6) $ 634 $ 767
Wood Products (2) (3) (7) (734) 464
Cellulose Fibers (2) (3) (5) 229 142
Fine Paper (2) (3) (5) (8) 20 (647)
Containerboard, Packaging and Recycling (2) (3) (5)
(9) 382 263
Real Estate and Related Assets (3) (10) 204 723
Corporate and Other (2) (3) (4) (11) 468 (223)
-----------------
$1,203 $1,489
=================
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
(in millions)
(1)The first quarter of 2007 results have been revised to reflect an
adjustment to reduce the pre-tax gain on the Domtar Transaction by
$53 million. This adjustment is included in Corporate and Other.
--------------- --------------- ---------------
(2)Closure charges by
segment: Q1 2007 Q1 2006 Q2 2007 Q2 2006 Q3 2007 Q3 2006
--------------- --------------- ---------------
Timberlands $ - $ - $ - $ - $ - $ -
Wood Products 3 - 15 1 19 10
Cellulose Fibers - (1) - - (1) 1
Fine Paper 2 - - 11 - 3
Containerboard,
Packaging and
Recycling 2 2 3 5 - 3
Corporate and Other - - 1 - 1 26
--------------- --------------- ---------------
$ 7 $ 1 $ 19 $ 17 $ 19 $ 43
=============== =============== ===============
------------
Year-to-date
--------------- ------------
(2)Closure charges by segment: Q4 2007 Q4 2006 2007 2006
--------------- ------------
Timberlands $ - $ 1 $ - $ 1
Wood Products 78 48 115 59
Cellulose Fibers - (3) (1) (3)
Fine Paper - 1 2 15
Containerboard, Packaging and
Recycling 4 4 9 14
Corporate and Other (1) - 1 26
--------------- ------------
$ 81 $ 51 $ 126 $112
=============== ============
The above closure charges include costs incurred within the
company's discontinued operations.
--------------- --------------- ---------------
(3)Share-based
compensation
charges (income)
recognized by
segment: Q1 2007 Q1 2006 Q2 2007 Q2 2006 Q3 2007 Q3 2006
--------------- --------------- ---------------
Timberlands $ 1 $ 1 $ - $ - $1 $ -
Wood Products 2 2 2 - 1 -
Cellulose Fibers 2 1 - - - -
Fine Paper - - - - - 1
Containerboard,
Packaging and
Recycling 1 2 2 (1) 1 1
Real Estate and
Related Assets 2 - 1 2 - -
Corporate and Other 14 15 5 (5) - 1
--------------- --------------- ---------------
$22 $ 21 $10 $(4) $3 $ 3
=============== =============== ===============
--------------- --------------- ---------------
Q1 2007 Q1 2006 Q2 2007 Q2 2006 Q3 2007 Q3 2006
--------------- --------------- ---------------
(4)Net foreign
exchange gains
(losses) included
in Corporate and
Other: $ 7 $(26) $34 $20 $2 $17
--------------- --------------- ---------------
------------
Year-to-date
--------------- ------------
(3)Share-based compensation charges
(income) recognized by segment: Q4 2007 Q4 2006 2007 2006
--------------- ------------
Timberlands $- $ - $ 2 $ 1
Wood Products 1 1 6 3
Cellulose Fibers 1 1 3 2
Fine Paper - - - 1
Containerboard, Packaging and
Recycling 1 - 5 2
Real Estate and Related Assets 1 - 4 2
Corporate and Other 2 7 21 18
------- ------- ------- ----
$6 $ 9 $41 $29
======= ======= ======= ====
------------
Year-to-date
--------------- ------------
Q4 2007 Q4 2006 2007 2006
--------------- ------- ----
(4)Net foreign exchange gains (losses)
included in Corporate and Other: $6 $14 $49 $25
--------------- ------------
(5)See detail of quarterly adjustments made to apply a new accounting
pronouncement to expense planned major maintenance costs as
incurred on page 2.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS (CONTINUED)
(in millions)
(6) Additional Timberlands notes:
2007:
(a) The fourth quarter includes a charge of $10 million for
storm-related casualty losses and a gain of $27 million on
the sale of an export facility.
(7) Additional Wood Products notes:
2007:
(a) The first quarter includes charges of $22 million for the
impairment of goodwill associated with Canadian distribution
facilities and $34 million in asset impairments related to
wood products facilities.
(b) The second quarter includes a charge of $17 million for
expected settlement of litigation.
(c) The second quarter includes charges of $12 million in asset
impairments related to wood products facilities and $6
million in additional charges related to the sale of
Canadian distribution facilities.
(d) The third quarter includes $7 million of income from the sale
of a veneer facility and a previously closed distribution
center site.
(e) The third quarter includes charges of $4 million for the
settlement of litigation, $4 million for restructuring
activities and $1 million in goodwill impairment.
(f) The fourth quarter includes charges of $14 million for
restructuring activities, $7 million in goodwill impairments
and $6 million in asset impairments.
(g) The fourth quarter includes a gain of $3 million on the sale
of a facility.
2006:
(h) The third quarter includes $23 million of income related to a
reduction of the reserves for hardboard siding claims.
(i) The third quarter includes a $51 million gain on the sale of
the company's North American composite panels operations.
(j) The third quarter includes charges of $7 million for the
impairment of fixed assets related to production
curtailments.
(k) The fourth quarter includes $344 million of income from the
refund of countervailing and anti-dumping duties.
(l) The fourth quarter includes $95 million of income related to
a reversal of the reserves for alder litigation claims.
(8) Additional Fine Paper notes:
2006:
(a) The first and second quarters include charges of $746 million
and $3 million, respectively, for the impairment of goodwill
associated with the fine paper business.
(9) Additional Containerboard, Packaging and Recycling notes:
2007:
(a) The second quarter includes a $29 million gain on the sale of
a previously closed box plant site in California and $3
million in charges related to a fire at the Closter, NJ box
plant.
(b) The third quarter includes $3 million of income related to
the sale of a previously closed box plant site.
2006:
(c) The second and third quarters include charges of $18 million
and $3 million, respectively, related to the restructuring
of the Containerboard, Packaging and Recycling business
model.
(10) Additional Real Estate and Related Assets notes:
2007:
(a) The first, second, third and fourth quarters include net
gains (losses) on land and lot sales of $3 million, $3
million, $30 million, and $79 million, respectively, or $115
million year-to-date.
(b) The second quarter includes a gain of $42 million on the sale
of an apartment project.
(c) The first, second, third and fourth quarters include charges
for the impairment of long-lived assets and investments of
$2 million, $13 million, $23 million, and $121 million,
respectively, or $159 million year-to-date.
(d) The fourth quarter of 2007 includes income of $11 million for
a warranty reserve adjustment.
2006:
(e) The first quarter of 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.
(f) The first, second, third and fourth quarters 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.
(g) 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.
(h) The fourth quarter includes a $28 million gain on the sale of
an apartment building.
(11) Additional Corporate and Other notes:
2007:
(a) The first quarter includes a $629 million pre-tax gain, the
second quarter includes charges of $4 million, and the
fourth quarter includes charges of $19 million related to
the distribution of the fine paper business and related
assets to Weyerhaeuser shareholders.
(b) The second quarter includes a $23 million charge for legal
settlements and a contract termination.
(c) The third quarter includes a $43 million gain on the
settlement of litigation.
(d) The third quarter includes charges of $20 million for
restructuring activities and the transition to a new IT
service provider.
(e) The fourth quarter includes a gain of $9 million on the sale
of our New Zealand joint venture.
2006:
(f) The third quarter includes an $8 million charge to write off
additional goodwill associated with the coastal British
Columbia operations.
(g) The third quarter includes a $9 million charge related to the
acquisition of OrganicID, a research and development
company.
(h) The fourth quarter includes a $45 million pre-tax gain on the
sale of the company's Irish composite panels operations.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
THIRD PARTY SALES VOLUMES: (1) (2)
(in millions)
------------------ ----------------
Q1 Q2
------------------ ----------------
April 1, March 26, July 1, June 25,
2007 2006 2007 2006
------------------ ----------------
Timberlands (thousands):
Logs - cunits 750 935 762 808
Wood Products (millions):
Softwood lumber - board feet 1,657 1,921 1,805 2,113
Plywood - square feet (3/8") 310 389 305 458
Veneer - square feet (3/8") 57 61 82 63
Composite panels - square feet
(3/4") 36 302 35 324
Oriented strand board - square
feet (3/8") 942 1,000 899 1,069
Hardwood lumber - board feet 89 103 99 110
Engineered I-Joists - lineal
feet 82 114 108 137
Engineered solid section -
cubic feet 7 9 10 11
Logs - cunits (in thousands) 46 55 33 46
Cellulose Fibers (thousands):
Pulp - air-dry metric tons 594 651 524 647
Liquid packaging board - tons 67 56 82 71
Fine Paper (thousands): (2)
Paper - tons 461 753 - 662
Coated groundwood - tons 38 52 - 59
Paper converting - tons 318 511 - 474
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 259 211 230 189
Packaging - MSF 17,754 18,342 18,965 19,168
Recycling - tons 654 733 656 719
Kraft bags and sacks - tons 25 20 23 20
Real Estate and Related Assets:
Single-family homes sold 1,684 1,472 1,139 1,325
Single-family homes closed 976 1,161 1,062 1,483
Single-family homes sold but
not closed at end of period 2,207 3,105 2,284 2,947
------------------ ----------------
------------------- -----------------
Q3 Q4
------------------- -----------------
Sept. 30, Sept. 24, Dec. 30, Dec. 31,
2007 2006 2007 2006
------------------- -----------------
Timberlands (thousands):
Logs - cunits 805 850 764 843
Wood Products (millions):
Softwood lumber - board feet 1,654 1,974 1,422 1,863
Plywood - square feet (3/8") 240 437 194 379
Veneer - square feet (3/8") 73 48 50 43
Composite panels - square
feet (3/4") 29 139 21 37
Oriented strand board -
square feet (3/8") 835 989 790 1,038
Hardwood lumber - board feet 93 100 82 99
Engineered I-Joists - lineal
feet 92 110 56 95
Engineered solid section -
cubic feet 8 9 5 7
Logs - cunits (in thousands) 34 26 30 42
Cellulose Fibers (thousands):
Pulp - air-dry metric tons 470 625 482 698
Liquid packaging board -
tons 72 72 65 76
Fine Paper (thousands): (2)
Paper - tons - 641 - 693
Coated groundwood - tons - 59 - 64
Paper converting - tons - 462 - 485
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 205 202 263 254
Packaging - MSF 18,751 18,425 18,102 18,932
Recycling - tons 632 678 638 745
Kraft bags and sacks - tons 25 22 26 27
Real Estate and Related Assets:
Single-family homes sold 734 906 595 838
Single-family homes closed 1,145 1,439 1,244 1,753
Single-family homes sold but
not closed at end of period 1,873 2,414 1,224 1,499
------------------- -----------------
-----------------
Year-to-date
-----------------
Dec. 30, Dec. 31,
2007 2006
-----------------
Timberlands (thousands):
Logs - cunits 3,081 3,436
Wood Products (millions):
Softwood lumber - board feet 6,538 7,871
Plywood - square feet (3/8") 1,049 1,663
Veneer - square feet (3/8") 262 215
Composite panels - square feet (3/4") 121 802
Oriented strand board - square feet (3/8") 3,466 4,096
Hardwood lumber - board feet 363 412
Engineered I-Joists - lineal feet 338 456
Engineered solid section - cubic feet 30 36
Logs - cunits (in thousands) 143 169
Cellulose Fibers (thousands):
Pulp - air-dry metric tons 2,070 2,621
Liquid packaging board - tons 286 275
Fine Paper (thousands): (2)
Paper - tons 461 2,749
Coated groundwood - tons 38 234
Paper converting - tons 318 1,932
Containerboard, Packaging and Recycling (thousands):
Containerboard - tons 957 856
Packaging - MSF 73,572 74,867
Recycling - tons 2,580 2,875
Kraft bags and sacks - tons 99 89
Real Estate and Related Assets:
Single-family homes sold 4,152 4,541
Single-family homes closed 4,427 5,836
Single-family homes sold but not closed at end
of period 1,224 1,499
-----------------
(1) The fourth quarter of 2006 inlcudes 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 (unaudited)
TOTAL PRODUCTION VOLUMES: (1) (2)
(in millions)
------------------ ----------------
Q1 Q2
------------------ ----------------
April 1, March 26, July 1, June 25,
2007 2006 2007 2006
------------------ ----------------
Timberlands (thousands):
Fee depletion - cunits 2,140 2,132 2,038 2,083
Wood Products (millions):
Softwood lumber - board feet 1,427 1,663 1,451 1,650
Plywood - square feet (3/8") 114 241 115 245
Veneer - square feet (3/8")
(3) 298 455 338 455
Composite panels - square
feet (3/4") - 278 - 288
Oriented strand board -
square feet (3/8") 968 1,073 847 1,062
Hardwood lumber - board feet 73 82 75 83
Engineered I-Joists - lineal
feet 87 121 114 136
Engineered solid section -
cubic feet 6 11 9 12
Cellulose Fibers (thousands):
Pulp - air-dry metric tons 539 676 419 588
Liquid packaging board - tons 60 61 77 75
Fine Paper (thousands): (2)
Paper - tons (4) 444 724 - 672
Coated groundwood - tons 43 56 - 56
Paper converting - tons 318 498 - 461
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (5) 1,515 1,575 1,506 1,533
Packaging - MSF 19,007 19,550 19,721 20,290
Recycling - tons (6) 1,619 1,716 1,589 1,684
Kraft bags and sacks - tons 23 19 23 20
------------------ ----------------
------------------- -----------------
Q3 Q4
------------------- -----------------
Sept. 30, Sept. 24, Dec. 30, Dec. 31,
2007 2006 2007 2006
------------------- -----------------
Timberlands (thousands):
Fee depletion - cunits 2,029 2,040 1,937 2,195
Wood Products (millions):
Softwood lumber - board
feet 1,405 1,559 1,207 1,483
Plywood - square feet
(3/8") 110 237 84 177
Veneer - square feet (3/8")
(3) 297 494 217 335
Composite panels - square
feet (3/4") - 100 - -
Oriented strand board -
square feet (3/8") 834 1,009 779 1,022
Hardwood lumber - board
feet 80 82 66 77
Engineered I-Joists -
lineal feet 91 130 47 86
Engineered solid section -
cubic feet 8 10 5 8
Cellulose Fibers (thousands):
Pulp - air-dry metric tons 445 660 448 664
Liquid packaging board -
tons 72 73 74 73
Fine Paper (thousands): (2)
Paper - tons (4) - 675 - 725
Coated groundwood - tons - 59 - 59
Paper converting - tons - 485 - 487
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (5) 1,575 1,544 1,510 1,608
Packaging - MSF 19,547 19,341 18,946 20,670
Recycling - tons (6) 1,838 1,641 1,609 1,788
Kraft bags and sacks - tons 23 18 24 25
------------------- -----------------
-----------------
Year-to-date
-----------------
Dec. 30, Dec. 31,
2007 2006
-----------------
Timberlands (thousands):
Fee depletion - cunits 8,144 8,450
Wood Products (millions):
Softwood lumber - board feet 5,490 6,355
Plywood - square feet (3/8") 423 900
Veneer - square feet (3/8") (3) 1,150 1,739
Composite panels - square feet (3/4") - 666
Oriented strand board - square feet (3/8") 3,428 4,166
Hardwood lumber - board feet 294 324
Engineered I-Joists - lineal feet 339 473
Engineered solid section - cubic feet 28 41
Cellulose Fibers (thousands):
Pulp - air-dry metric tons 1,851 2,588
Liquid packaging board - tons 283 282
Fine Paper (thousands): (2)
Paper - tons (4) 444 2,796
Coated groundwood - tons 43 230
Paper converting - tons 318 1,931
Containerboard, Packaging and Recycling (thousands):
Containerboard - tons (5) 6,106 6,260
Packaging - MSF 77,221 79,851
Recycling - tons (6) 6,655 6,829
Kraft bags and sacks - tons 93 82
-----------------
(1) The fourth quarter of 2006 inlcudes 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, July 1, Sept. 30, Dec. 30, Dec. 31,
Assets 2007 2007 2007 2007 2006
------------------------- -------- ------- --------- -------- --------
Weyerhaeuser
Current assets:
Cash and cash equivalents $1,172 $208 $72 $93 $223
Receivables, less
allowances 1,394 1,508 1,419 1,333 1,183
Inventories 1,437 1,308 1,323 1,255 1,355
Prepaid expenses 356 378 406 333 385
Assets held for sale 114 - - 105
Current assets of
discontinued operations - - - - 870
-------- ------- --------- -------- --------
Total current assets 4,473 3,402 3,220 3,014 4,121
Property and equipment 6,836 6,761 6,880 6,817 7,061
Construction in progress 467 544 412 442 395
Timber and timberlands at
cost, less fee stumpage
charged to disposals 3,705 3,721 3,736 3,769 3,681
Investments in and
advances to equity
affiliates 498 510 497 356 499
Goodwill 2,158 2,181 2,200 2,207 2,185
Deferred pension and
other assets 1,378 1,470 1,525 2,505 1,368
Restricted assets held by
special purpose entities 915 916 915 916 917
Noncurrent assets of
discontinued operations - - - 3,011
-------- ------- --------- -------- --------
20,430 19,505 19,385 20,026 23,238
-------- ------- --------- -------- --------
Real Estate and Related
Assets
Cash and cash equivalents 13 7 8 21 20
Receivables, less
allowances 77 75 72 63 144
Real estate in process of
development and for sale 1,540 1,561 1,587 1,270 1,449
Land being processed for
development 1,427 1,476 1,528 1,622 1,365
Investments in
unconsolidated entities,
less reserves 81 83 77 58 72
Other assets 396 383 423 473 423
Consolidated assets not
owned 264 287 277 273 151
-------- ------- --------- -------- --------
3,798 3,872 3,972 3,780 3,624
-------- ------- --------- -------- --------
Total assets $24,228 $23,377 $23,357 $23,806 $26,862
======== ======= ========= ======== ========
Liabilities
-------------------------
Weyerhaeuser
Current liabilities:
Notes payable and
commercial paper $163 $92 $92 $54 $72
Current maturities of
long-term debt 70 63 262 507 488
Accounts payable 920 1,010 894 869 948
Accrued liabilities 1,220 1,145 1,185 1,177 1,363
Current liabilities of
discontinued operations - - - - 258
-------- ------- --------- -------- --------
Total current
liabilities 2,373 2,310 2,433 2,607 3,129
Long-term debt 6,849 5,980 6,428 6,059 7,069
Deferred income taxes 2,886 2,895 2,852 3,290 3,011
Deferred pension, other
postretirement benefits
and other liabilities 1,730 1,814 1,819 1,669 1,759
Liabilities (nonrecourse
to Weyerhaeuser) held by
special purpose entities 763 765 764 765 765
Noncurrent liabilities of
discontinued operations - - - - 717
-------- ------- --------- -------- --------
14,601 13,764 14,296 14,390 16,450
-------- ------- --------- -------- --------
Real Estate and Related
Assets
Notes payable and
commercial paper 427 412 - - -
Long-term debt 605 605 900 775 606
Other liabilities 565 539 497 432 606
Consolidated liabilities
not owned 232 246 237 228 115
-------- ------- --------- -------- --------
1,829 1,802 1,634 1,435 1,327
-------- ------- --------- -------- --------
Shareholders' Interest
-------------------------
Total liabilities 16,430 15,566 15,930 15,825 17,777
Shareholders' interest 7,798 7,811 7,427 7,981 9,085
-------- ------- --------- -------- --------
Total liabilities and
shareholders' interest $24,228 $23,377 $23,357 $23,806 $26,862
======== ======= ========= ======== ========
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
STATEMENT OF CASH FLOWS
------------------ -----------------
SELECTED INFORMATION (unaudited) Q1 Q2
------------------ -----------------
(in millions) April 1, March 26, July 1, June 25,
(Weyerhaeuser only, excludes Real
Estate & Related Assets) 2007 2006 2007 2006
------------------ -----------------
Net cash from operations $ (187) $ (210) $ 171 $ 566
Cash paid for property and
equipment $ (114) $ (182) $ (140) $(184)
Cash paid for timberlands
reforestation $ (12) $ (12) $ (12) $ (9)
Cash received from issuances
of debt $ - $ - $ - $ -
Revolving credit facilities,
notes and commercial paper
borrowings, net $ (162) $ (68) $ 194 $ 19
Payments on debt $ (466) $ (158) $(1,090) $ (10)
Proceeds from the sale of
operations $ 1,350 $ - $ 100 $ -
Repurchases of common stock $ - $ - $ (22) $ -
------------------ -----------------
STATEMENT OF CASH FLOWS
------------------- -----------------
SELECTED INFORMATION (unaudited) Q3 Q4
------------------- -----------------
(in millions) Sept. 30, Sept. 24, Dec. 30, Dec. 31,
(Weyerhaeuser only, excludes
Real Estate & Related Assets) 2007 2006 2007 2006
------------------- -----------------
Net cash from operations $ 285 $ 252 $ 411 $ 940
Cash paid for property and
equipment $ (176) $ (173) $ (232) $ (273)
Cash paid for timberlands
reforestation $ (8) $ (6) $ (12) $ (10)
Cash received from issuances
of debt $ 451 $ 3 $ - $ 1
Revolving credit facilities,
notes and commercial paper
borrowings, net $ 148 $ 195 $ (158) $ (95)
Payments on debt $ (54) $ (58) $ (3) $ (5)
Proceeds from the sale of
operations $ 7 $ 187 $ 172 $ 86
Repurchases of common stock $ (441) $ (332) $ (10) $ (340)
------------------- -----------------
STATEMENT OF CASH FLOWS
-----------------
SELECTED INFORMATION (unaudited) Year-to-date
-----------------
(in millions) Dec. 30, Dec. 31,
(Weyerhaeuser only, excludes Real Estate & Related
Assets) 2007 2006
-----------------
Net cash from operations $ 680 $1,548
Cash paid for property and equipment $ (662) $ (812)
Cash paid for timberlands reforestation $ (44) $ (37)
Cash received from issuances of debt $ 451 $ 4
Revolving credit facilities, notes and
commercial paper borrowings, net $ 22 $ 51
Payments on debt $(1,613) $ (231)
Proceeds from the sale of operations $ 1,629 $ 273
Repurchases of common stock $ (473) $ (672)
-----------------
CONTACT:
Weyerhaeuser Company
Media
Bruce Amundson, 253-924-3047
Analysts
Kathryn McAuley, 253-924-2058
SOURCE:
Weyerhaeuser Company
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Weyerhaeuser Co.
