SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 23, 2002
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(Date of earliest event report)
WEYERHAEUSER COMPANY
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(Exact name of registrant as specified in charter)
Washington 1-4825 91-0470860
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
Federal Way, Washington 98063-9777
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(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(253) 924-2345
Item 5. Other Events
On January 23, 2002, Weyerhaeuser Company issued a press release stating the
following:
FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today announced a
fourth-quarter loss of $15 million, or a loss of 7 cents per share. This
compares with earnings of $194 million, or 88 cents per share, for the same
period last year.
The 2001 fourth quarter results include a previously announced nonrecurring
$20 million after-tax charge, or 9 cents per share, associated with the
closure of three wood products facilities.
Net sales for the fourth quarter were $3.4 billion compared with $4.0 billion
last year.
For the year 2001, Weyerhaeuser reported earnings of $354 million, or $1.61
per share, compared with $840 million, or $3.72 per share, in 2000. Excluding
nonrecurring after-tax items in both years, results were $397 million, or
$1.81 per share, in 2001, compared with $922 million, or $4.08 per share,
for 2000. Results for 2000 reflect 53 weeks of operations compared with 52
weeks in 2001.
Net sales for the year were $14.5 billion. This compares with net sales of
$16 billion the prior year.
"There is little doubt that our entire industry faced significant challenges
during the fourth quarter," said Steven R. Rogel, chairman, president and
chief executive officer. "The worst industry conditions since 1975 affected
most of our major product lines. We responded by taking significant downtime
in pulp, paper and wood product operations to balance our inventories with
lower order levels. The sustainable operational improvements we have made
over the past several years and the performance in our real estate markets
helped minimize the effect that downtime had on our earnings.
"Unfortunately, with the global economy still in recession, we see few signs
of improvement for most of our markets in the first quarter of 2002," Rogel
said. "We will take appropriate actions to manage to these market conditions
including adjusting production schedules, continuing to close marginal
performers and aggressively managing costs."
Results by segment for the fourth quarter were:
. Timberlands - Operating earnings were $102 million compared with $139
million for the same quarter last year. The log markets weakened in the
U.S. and Japan in the fourth quarter and Weyerhaeuser expects this trend to
continue into the first quarter. Timberland earnings in the first quarter
of 2002 are expected to be slightly lower than the 2001 fourth quarter.
. Wood Products - An operating loss of $47 million before the pre-tax charge
of $32 million associated with the announced closure of three facilities
and $21 million accrued for countervailing duties and anti-dumping
penalties on lumber shipped to the United States from Canada. This
compares with operating earnings of $19 million for fourth quarter 2000.
Prices for nearly all product lines in the fourth quarter were weak. In
response to market conditions, Weyerhaeuser's wood products operations
took significant downtime or adjusted operating schedules during the
fourth quarter. Demand and pricing for engineered wood products was
slightly better than other product lines. Wood products markets improved
modestly toward the end of the quarter and some seasonal improvement is
expected in the first quarter of 2002. Weyerhaeuser expects that losses
in this segment will narrow in the first quarter.
. Pulp, Paper and Packaging - Operating earnings for fourth quarter were $56
million compared with $263 million last year. Improved operating
efficiencies contributed to the results despite extensive market-related
downtime taken during the quarter. Market conditions for many products
weakened during the quarter, putting additional pressure on most prices.
Earnings for the Pulp, Paper and Packaging sector in the first quarter
of 2002 are expected to be somewhat lower when compared to fourth
quarter 2001.
. Real estate and related assets - Operating earnings were $58 million
compared with $78 million the same quarter in 2000. Strong housing markets
in the sector's operating areas contributed to the earnings. At year-end,
these housing markets remained steady and the company reported a strong
backlog of orders that should contribute to slightly higher earnings in the
first quarter.
In other fourth quarter items, Weyerhaeuser said:
. It has achieved its goal of $200 million in pre-tax synergies related to
the integration of MacMillan Bloedel and Trus Joist one year ahead of
schedule.
. At the end of 2001, the company had achieved approximately $100 million in
ongoing annual savings through its initiatives to improve the delivery of
support services. Cumulative one-time costs for these initiatives were $82
million.
. On Jan. 21, the company announced an agreement in principle to acquire
Willamette Industries. Forward-looking statements are for Weyerhaeuser on
a stand-alone basis.
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Weyerhaeuser will hold a conference call on Jan. 23 to discuss results of the
fourth quarter at 8 a.m. PST (11 a.m. EST). The call may be accessed through
Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the
"Listen to our conference call" link.
Listeners may also access the conference call from within North America by
dialing 1-877-888-4210 at least 15 minutes prior to the start of the
conference. Those wishing to access the call from outside North America
should dial 1-416-695-9757. Replays of the call will be available for 48
hours following completion of the live call and can be accessed
at 1-888-509-0081 within North America and at 1-416-695-9728 from outside
North America.
Weyerhaeuser Company, one of the world's largest integrated forest products
companies, was incorporated in 1900. In 2001, sales were $14.5 billion. It
has offices or operations in 17 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
www.weyerhaeuser.com.
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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. 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; performance of the company's manufacturing
operations; the level of competition from foreign producers; the effect of
forestry, land use, environmental and other governmental regulations; and the
risk of losses from terrorist activity, fires, floods and other natural
disasters. 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 and the Euro, and restrictions on international trade or tariffs
imposed on imports. These and other factors that could cause or contribute to
actual results differing materially from such forward looking statements are
discussed in greater detail in the company's Securities and Exchange
Commission filings.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WEYERHAEUSER COMPANY
By /s/ Steven J. Hillyard
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Its: Vice President and Controller
Date: January 24, 2002