SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
October 24, 2003
----------------------------------
(Date of earliest event report)
WEYERHAEUSER COMPANY
(Exact name of registrant as specified in charter)
Washington 1-4825 91-0470860
---------- ------ ----------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
Federal Way, Washington 98063-9777
(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(253) 924-2345
TABLE OF CONTENTS
Item 12. Results of Operations and Financial Condition
---------------------------------
SIGNATURES
----------
Item 12. Results of Operations and Financial Condition
On October 24, 2003, Weyerhaeuser Company issued a press release as follows:
FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported
third quarter net earnings of $82 million, or 37 cents per share,
on net sales of $5.2 billion. This compares with $13 million, or 6 cents
per share, on net sales of $4.9 billion for the third quarter of 2002.
Third quarter 2003 earnings include the following after-tax items:
A charge of $32 million, or 14 cents per share, for closure of
facilities;
A charge of $15 million, or 7 cents per share, associated with
the settlement of a class action linerboard antitrust lawsuit;
A charge of $15 million, or 7 cents per share, for integration
and restructuring activities.
Third quarter 2002 earnings include the following after-tax items:
A charge of $11 million, or 5 cents per share, for integration
and restructuring activities;
A charge of $20 million, or 9 cents per share, for business
disruption costs following a recovery boiler incident at the
Plymouth, N.C., paper facility.
Other significant third quarter financial matters include:
Reduced Weyerhaeuser Company debt to $12.4 billion as of the
end of the third quarter. Total company debt, which includes
Real Estate and related operations, was reduced approximately
$360 million to $13.2 billion at the end of the quarter.
Capital spending, excluding Real Estate and related
operations, for the first nine months was approximately $471
million, in line with a revised estimate of $720 million for
the entire year.
Incurred approximately $25 million in countervailing and
anti-dumping duties and related costs on Canadian softwood
lumber the company imports into the United States. This
compares with $26 million incurred in the second quarter.
"The strength of the structural panel and softwood lumber markets
provided the long-awaited improvement of our Wood Products segment,
but our fine paper and containerboard packaging businesses face
challenges from weak demand and deteriorating prices," said Steven R.
Rogel, chairman, president and chief executive officer. "Real estate
continues to be a strong performer. In addition, we continue to make
progress on paying down the debt associated with the Willamette
acquisition.
"We see some bright spots in the fourth quarter," Rogel said. "Our
home building businesses continue to operate with a strong backlog and
wood products pricing is expected to decline seasonally, but remain
strong relative to fourth quarter last year. Market pulp prices are
improving modestly, but paper and packaging markets are expected to
remain weak. "
SUMMARY OF THIRD QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 3Q 2003 3Q 2002 Change
Net earnings $82 $13 $69
Earnings per share $0.37 $0.06 $0.31
Net sales $5,184 $4,890 $294
SEGMENT RESULTS FOR THIRD QUARTER 2003
(Contributions to Pre-Tax Earnings)
Millions 3Q 2003 3Q 2002 Change
Timberlands $143 $133 $10
Wood Products $151 ($18) $169
Pulp and Paper ($18) $10 ($28)
Containerboard, Packaging and Recycling $42 $88 ($46)
Real Estate and Related Assets $97 $85 $12
TIMBERLANDS
3Q 2003 2Q 2003 Change
Contribution to earnings (millions) $143 $300 ($157)
Excluding a pre-tax gain of $144 million in the second quarter on
the sales of Western Washington timberlands, third quarter earnings
were slightly lower than the previous quarter. Lower harvest levels
resulting from fire danger in the West and unseasonable wet weather in
the South affected third quarter earnings. The segment benefited,
however, from a stronger export market aided by a strengthening
Japanese housing market.
The fourth quarter outlook for Timberlands earnings, excluding
previously announced timberland sales in the Carolinas and Tennessee,
is expected to decline slightly from the third quarter due to lower
southern fee harvest.
WOOD PRODUCTS
3Q 2003 2Q 2003 Change
Contribution (charge) to earnings (millions) $151 ($53) $204
An exceptionally strong market for oriented strand board and
plywood, as well as an improving lumber market, produced the segment's
first quarterly earnings since second quarter in 2002. Third quarter
results reflect a pre-tax charge of $31 million for costs associated
with the closure of the Dierks, Ark., veneer operations and the
engineered lumber mill in Junction City, Ore.
Fourth quarter results are expected to be lower than third quarter
due primarily to lower lumber and structural panel prices.
PULP AND PAPER
3Q 2003 2Q 2003 Change
Contribution (charge) to earnings (millions) ($18) ($7) ($11)
Pulp prices rebounded late in the quarter, but a weak paper market
hurt third quarter results. Costs associated with approximately 64,000
tons of market-related downtime for fine paper also negatively
affected the third quarter performance. Third quarter results include
pre-tax charges totaling $9 million for costs associated with staff
reductions at a number of facilities.
Fourth quarter earnings are expected to be lower than third
quarter due to weak paper markets that will offset expected increases
in pulp prices.
CONTAINERBOARD, PACKAGING AND RECYCLING
3Q 2003 2Q 2003 Change
Contribution to earnings (millions) $42 $108 ($66)
Eroding packaging and containerboard prices produced third quarter
results that were lower than second quarter levels. During the
quarter, Weyerhaeuser took approximately 89,000 tons of market-related
downtime. Third quarter results include pre-tax charges of $40 million
for costs associated primarily with the settlement of a class action
linerboard antitrust lawsuit and the closure of the North Bend, Ore.,
containerboard mill.
Excluding the third quarter charges for settlement of the class
action linerboard antitrust lawsuit and closures, fourth quarter
earnings are expected to be lower than third quarter due primarily to
eroding prices and seasonally lower packaging shipments.
REAL ESTATE AND RELATED ASSETS
3Q 2003 2Q 2003 Change
Contribution to earnings (millions) $97 $91 $6
Real estate benefited from the continued strong housing market to
produce record quarterly earnings. Closings increased from second
quarter levels and traffic during the third quarter remained strong.
Fourth quarter earnings are expected to be slightly higher than
third quarter due to increased closings of single-family homes. The
company currently has a backlog in excess of six months of homes sold,
but not closed.
OTHER
The company will hold a live conference call at 7 a.m. PDT (10
a.m. EDT) on Oct. 24 to discuss the third quarter results.
To access the conference call, listeners calling from within North
America should dial 1-800-446-4472 at least 15 minutes prior to the
start of the conference call. Those wishing to access the call from
outside North America should dial 1-416-695-5261. Replays of the call
will be available for one week following completion of the live call
and can be accessed at 1-866-518-1010 within North America and at
1-416-695-5275 from outside North America.
The call may also be accessed through Weyerhaeuser's Internet site
at www.weyerhaeuser.com by clicking on the "Listen to our conference
call" link.
Weyerhaeuser Company, one of the world's largest integrated forest
products companies, was incorporated in 1900. In 2002, sales were
$18.5 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.
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 fourth quarter; expected earnings and performance of the company's
business segments during the fourth quarter and anticipated capital
spending. 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; performance of the company's
manufacturing operations; 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; fires, floods and other natural disasters;
and legal proceedings. 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, including the countervailing and dumping duties
imposed on the company's softwood lumber shipments from Canada to the
United States. 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.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS(1) Q1 Q2 Q3
(in millions) --------------- --------------- ---------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- --------------- ---------------
Net sales and revenues:
Weyerhaeuser (2) $4,169 $3,595 $4,498 $4,501 $4,650 $4,422
Real estate and
related assets 445 396 432 421 534 468
--------------- --------------- ---------------
Total net sales and
revenues 4,614 3,991 4,930 4,922 5,184 4,890
--------------- --------------- ---------------
Costs and expenses:
Weyerhaeuser:
Costs of products
sold 3,322 2,831 3,611 3,519 3,598 3,576
Depreciation,
amortization and
fee stumpage 321 264 313 311 320 304
Selling expenses 107 103 111 116 117 116
General and
Administrative
expenses 231 186 232 231 249 201
Research and
Development
expenses 12 12 12 13 10 11
Taxes other than
payroll and income
taxes 47 38 48 53 45 48
Charges for
integration and
restructuring 29 2 25 23 24 17
Charges for closure
of facilities 22 27 12 28 48 -
Other operating
costs, net (3)(4) 37 4 (205) (27) 16 19
--------------- --------------- ---------------
4,128 3,467 4,159 4,267 4,427 4,292
--------------- --------------- ---------------
Real estate and
related assets:
Costs and operating
expenses 330 291 316 317 406 359
Depreciation and
amortization 3 2 2 1 3 1
Selling expenses 24 21 25 24 27 23
General and
Administrative
expenses 14 10 14 11 15 14
Taxes other than
payroll and income
taxes 1 1 1 1 - 1
Other operating
costs, net (7) (8) - 2 2 6
--------------- --------------- ---------------
365 317 358 356 453 404
--------------- --------------- ---------------
Total costs and
expenses 4,493 3,784 4,517 4,623 4,880 4,696
--------------- --------------- ---------------
Operating income 121 207 413 299 304 194
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred(5) (208) (178) (205) (222) (200) (214)
Less interest
capitalized 5 4 6 16 3 16
Equity in income
(loss) of
affiliates (5) (4) 3 (2) (3) (6)
Interest income and
other 6 5 6 6 3 9
Real estate and
related assets:
Interest expense
incurred (14) (13) (13) (13) (13) (12)
Less interest
capitalized 14 13 13 13 13 12
Equity in income of
Unconsolidated
entities 5 6 7 6 11 10
Interest income and
other 11 6 8 8 6 11
--------------- --------------- ---------------
Earnings before income
taxes and cumulative
effect of a change in
accounting principle (65) 46 238 111 124 20
Income taxes 22 (16) (81) (39) (42) (7)
--------------- --------------- ---------------
Earnings before
cumulative effect of
a change in
accounting principle (43) 30 157 72 82 13
Cumulative effect of a
change in accounting
principle, net of
applicable taxes
of $6 (6) (11) - - - - -
--------------- --------------- ---------------
Net earnings (loss) $ (54) $ 30 $ 157 $ 72 $ 82 $ 13
=============== =============== ===============
Basic and diluted net
earnings (loss) per
share:
Net earnings (loss)
before cumulative
effect of a
change in
accounting principle $(0.19) $ 0.14 $ 0.71 $ 0.32 $ 0.37 $ 0.06
Cumulative effect of
a change in
accounting principle (0.05) - - - - -
--------------- --------------- ---------------
Net earnings (loss) $(0.24) $ 0.14 $ 0.71 $ 0.32 $ 0.37 $ 0.06
=============== =============== ===============
Dividends paid per
share $ 0.40 $ 0.40 $ 0.40 $ 0.40 $ 0.40 $ 0.40
=============== =============== ===============
CONSOLIDATED EARNINGS(1) Year-to-date Q4 Year ended
(in millions) ----------------------- ---------- ----------
Sept. 28, Sept. 29, Dec. 29, Dec. 29,
2003 2002 2002 2002
----------------------- ---------- ----------
Net sales and revenues:
Weyerhaeuser (2) $ 13,317 $ 12,518 $ 4,253 $ 16,771
Real estate and
related assets 1,411 1,285 465 1,750
----------------------- ---------- ----------
Total net sales and
revenues 14,728 13,803 4,718 18,521
----------------------- ---------- ----------
Costs and expenses:
Weyerhaeuser:
Costs of products
sold 10,531 9,926 3,285 13,211
Depreciation,
amortization and
fee stumpage 954 879 335 1,214
Selling expenses 335 335 115 450
General and
Administrative
expenses 712 618 229 847
Research and
Development
expenses 34 36 16 52
Taxes other than
payroll and income
taxes 140 139 39 178
Charges for
integration and
restructuring 78 42 30 72
Charges for closure
of facilities 82 55 40 95
Other operating
costs, net (3)(4) (152) (4) (135) (139)
----------------------- ---------- ----------
12,714 12,026 3,954 15,980
----------------------- ---------- ----------
Real estate and
related assets:
Costs and operating
expenses 1,052 967 359 1,326
Depreciation and
amortization 8 4 7 11
Selling expenses 76 68 22 90
General and
Administrative
expenses 43 35 13 48
Taxes other than
payroll and income
taxes 2 3 1 4
Other operating
costs, net (5) - (1) (1)
----------------------- ---------- ----------
1,176 1,077 401 1,478
----------------------- ---------- ----------
Total costs and
expenses 13,890 13,103 4,355 17,458
----------------------- ---------- ----------
Operating income 838 700 363 1,063
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred (5) (613) (614) (207) (821)
Less interest
capitalized 14 36 14 50
Equity in income
(loss) of
affiliates (5) (12) (1) (13)
Interest income and
other 15 20 8 28
Real estate and
related assets:
Interest expense
incurred (40) (38) (15) (53)
Less interest
capitalized 40 38 15 53
Equity in income of
Unconsolidated
entities 23 22 9 31
Interest income and
other 25 25 8 33
----------------------- ---------- ----------
Earnings before income
taxes and cumulative
effect of a change in
accounting principle 297 177 194 371
Income taxes (101) (62) (68) (130)
----------------------- ---------- ----------
Earnings before
cumulative effect of
a change in
accounting principle 196 115 126 241
Cumulative effect of a
change in accounting
principle, net of
applicable taxes
of $6 (6) (11) - - -
----------------------- ---------- ----------
Net earnings (loss) $ 185 $ 115 $ 126 $ 241
====================== ========== ==========
Basic and diluted net
earnings (loss) per
share:
Net earnings (loss)
before cumulative
effect of a
change in
accounting principle $ 0.88 $ 0.52 $ 0.57 $ 1.09
Cumulative effect of
a change in
accounting principle (0.05) - - -
----------------------- ---------- ----------
Net earnings (loss) $ 0.83 $ 0.52 $ 0.57 $ 1.09
====================== ========== ==========
Dividends paid per
share $ 1.20 $ 1.20 $ 0.40 $ 1.60
====================== ========== ==========
(1) Certain reclassifications have been made to conform prior period
data with the current presentation.
(2) The first, second and third quarters of 2003 include charges of
$24 million, $26 million and $25 million, respectively, for
countervailing and anti-dumping duties and related costs. 2002
first quarter includes $13 million of charges for countervailing
and anti-dumping duties and related costs and a credit of $18
million for the reversal of countervailing and anti-dumping duties
accrued in 2001. The 2002 second quarter includes $7 million of
charges for countervailing and anti-dumping duties and related
costs, a credit of $29 million for the reversal of charges accrued
in 2001 and a credit of $13 million for charges accrued in the
first quarter of 2002. The 2002 third and fourth quarters include
charges of $31 million and $26 million, respectively, for
countervailing and anti-dumping duties and related costs. The 2002
impact of countervailing and anti-dumping duties and related costs
is a net charge of $17 million which includes current year charges
of $64 million and $47 million of credits related to the reversal
of charges accrued in 2001.
(3) 2003 first, second and third quarters include net foreign exchange
gains (losses) of $35 million, $47 million and ($4) million,
respectively. 2002 includes $33 million in net foreign exchange
gains. Gains of $8 million, $27 million and $14 million are
included in the first, second and fourth quarters, respectively. A
loss of $16 million is included in the third quarter.
(4) The first quarter of 2003 includes a $79 million charge for a
lawsuit involving the market for Pacific Northwest alder logs.
2003 second quarter includes a $144 million gain on the sales of
timberlands in Washington state and a $25 million gain for the
settlement of an insurance claim relating to the Cemwood
litigation. 2003 third quarter includes a $23 million charge
associated with the settlement of a class action linerboard
antitrust lawsuit. 2002 fourth quarter includes a $117 million
gain on the sale of timberlands in Washington state.
(5) 2002 first quarter includes a $35 million charge to write off debt
issue costs in connection with the refinancing of debt in
connection with the acquisition of Willamette Industries.
(6) Statement of Financial Accounting Standards No. 143, Accounting
for Asset Retirement Obligations, was adopted as of the beginning
of 2003. Results for 2002 were not impacted by the change in
accounting principle.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues Q1 Q2 Q3
(in millions):
--------------- --------------- ---------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- --------------- ---------------
Timberlands:
Raw materials
(logs, timber and
chips) $ 203 $ 142 $ 213 $ 184 $ 212 $ 193
Other products 21 19 24 21 18 18
--------------- --------------- ---------------
224 161 237 205 230 211
--------------- --------------- ---------------
Wood Products:
Softwood lumber 752 692 846 901 890 845
Plywood and veneer 174 158 182 203 228 195
Oriented strand
board, composite
and other panels 257 240 331 320 445 217
Hardwood lumber 80 76 86 81 75 72
Engineered lumber
products 254 253 308 315 329 324
Raw materials
(logs, timber and
chips) 81 106 82 129 72 120
Other products 174 176 221 198 213 184
--------------- --------------- ---------------
1,772 1,701 2,056 2,147 2,252 1,957
--------------- --------------- ---------------
Pulp and Paper:
Pulp 309 280 321 297 333 300
Paper 596 416 546 563 530 590
Coated groundwood 36 30 32 30 39 32
Bleached board 47 40 52 51 50 37
Other products 10 6 7 10 6 8
--------------- --------------- ---------------
998 772 958 951 958 967
--------------- --------------- ---------------
Containerboard, Packaging
and Recycling:
Containerboard 77 73 81 90 73 101
Packaging 879 758 922 935 898 909
Recycling 60 48 63 51 60 67
Bags 20 10 20 20 19 22
Other products 33 10 35 34 40 28
--------------- --------------- ---------------
1,069 899 1,121 1,130 1,090 1,127
--------------- --------------- ---------------
Real Estate and
Related Assets 445 396 432 421 534 468
Corporate and Other 106 62 126 68 120 160
--------------- --------------- ---------------
$4,614 $3,991 $4,930 $4,922 $5,184 $4,890
=============== =============== ===============
Contribution (charge) Q1 Q2 Q3
to earnings (1): --------------- --------------- ---------------
(in millions) March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- --------------- ---------------
Timberlands (2) $ 149 $ 107 $ 300 $ 162 $ 143 $ 133
Wood Products
(3)(4)(5) (150) 9 (53) 64 151 (18)
Pulp and Paper (6)(7) 10 1 (7) (15) (18) 10
Containerboard,
Packaging and
Recycling (8)(9) 80 58 108 75 42 88
Real Estate and
Related Assets (10) 95 91 91 79 97 85
Corporate and Other
(11)(12)(13) (46) (46) (2) (48) (94) (80)
--------------- --------------- ---------------
$ 138 $ 220 $ 437 $ 317 $ 321 $ 218
=============== =============== ===============
Net sales and revenues Year-to-date Q4 Year ended
(in millions):
----------------------- ---------- ----------
Sept. 28, Sept. 29, Dec. 29, Dec. 29,
2003 2002 2002 2002
----------------------- ---------- ----------
Timberlands:
Raw materials (logs,
timber and chips) $ 628 $ 519 $ 254 $ 773
Other products 63 58 39 97
----------------------- ---------- ----------
691 577 293 870
----------------------- ---------- ----------
Wood Products:
Softwood lumber 2,488 2,438 748 3,186
Plywood and veneer 584 556 178 734
Oriented strand
board, composite and
other panels 1,033 777 251 1,028
Hardwood lumber 241 229 77 306
Engineered lumber
products 891 892 256 1,148
Raw materials (logs,
timber and chips) 235 355 117 472
Other products 608 558 160 718
----------------------- ---------- ----------
6,080 5,805 1,787 7,592
----------------------- ---------- ----------
Pulp and Paper:
Pulp 963 877 319 1,196
Paper 1,672 1,569 594 2,163
Coated groundwood 107 92 34 126
Bleached board 149 128 51 179
Other products 23 24 10 34
----------------------- ---------- ----------
2,914 2,690 1,008 3,698
----------------------- ---------- ----------
Containerboard, Packaging
and Recycling:
Containerboard 231 264 86 350
Packaging 2,699 2,602 864 3,466
Recycling 183 166 63 229
Bags 59 52 23 75
Other products 108 72 20 92
----------------------- ---------- ----------
3,280 3,156 1,056 4,212
----------------------- ---------- ----------
Real Estate and
Related Assets 1,411 1,285 465 1,750
Corporate and Other 352 290 109 399
----------------------- ---------- ----------
$ 14,728 $ 13,803 $ 4,718 $ 18,521
=========== =========== ========== ==========
Contribution (charge) Year-to-date Q4 Year ended
to earnings (1):
----------------------- ---------- ----------
(in millions) Sept. 28, Sept. 29, Dec. 29, Dec. 29,
2003 2002 2002 2002
----------------------- ---------- ----------
Timberlands (2) $ 592 $ 402 $ 300 $ 702
Wood Products
(3)(4)(5) (52) 55 (75) (20)
Pulp and Paper (6)(7) (15) (4) 86 82
Containerboard,
Packaging and
Recycling (8)(9) 230 221 114 335
Real Estate and
Related Assets (10) 283 255 81 336
Corporate and Other
(11)(12)(13) (142) (174) (119) (293)
----------------------- ---------- ----------
$ 896 $ 755 $ 387 $ 1,142
=========== =========== ========== ==========
(1)Certain reclassifications have been made to conform prior
period data with the current presentation.
(2)2003 second quarter includes a $144 million gain on the sales of
timberlands in Washington state. 2002 fourth quarter includes a
$117 million gain on the sale of timberlands in Washington state.
(3)The first, second and third quarters of 2003 include charges of
$24 million, $26 million and $25 million, respectively, for
countervailing and anti-dumping duties and related costs. 2002
first quarter includes $13 million of charges for countervailing
and anti-dumping duties and related costs and a credit of $18
million for the reversal of countervailing and anti-dumping duties
accrued in 2001. The 2002 second quarter includes $7 million of
charges for countervailing and anti-dumping duties and related
costs, a credit of $29 million for the reversal of charges accrued
in 2001 and a credit of $13 million for charges accrued in the
first quarter of 2002. The 2002 third and fourth quarters include
charges of $31 million and $26 million, respectively, for
countervailing and anti-dumping duties and related costs. The 2002
impact of countervailing and anti- dumping duties and related
costs is a net charge of $17 million which includes current year
charges of $64 million and $47 million of credits related to the
reversal of charges accrued in 2001.
(4)The first quarter of 2003 includes a $79 million charge for a
lawsuit involving the market for Pacific Northwest alder logs.
(5)2003 first, second and third quarters include costs for the
closure of facilities of $22 million, $11 million and $31 million,
respectively. 2003 second quarter also includes a charge of $16
million to recognize impairment associated with an impending
facility sale. 2002 includes closure costs of $51 million ($17
million in the first quarter and $34 million in the fourth
quarter).
(6)2002 includes $12 million in net business disruption costs
associated with the recovery boiler explosion at the Plymouth,
N.C., paper facility. Costs of $22 million and $30 million are
included in the second and third quarters, respectively. Net
recoveries of $40 million are included in the fourth quarter.
(7)2003 second quarter includes $3 million of closure costs. 2002
fourth quarter results include an $8 million benefit resulting
from adjustments to closure reserves established in 2001.
(8)The third quarter of 2003 includes a $23 million charge associated
with the settlement of a class action linerboard antitrust
lawsuit.
(9)2003 second quarter includes the reversal of an accrual for
closure charges of $2 million. 2003 third quarter includes closure
costs of $17 million. 2002 includes closure costs of $52 million
($10 million in the first quarter, $28 million in the second
quarter and $14 million in the fourth quarter).
(10)2003 first quarter includes gains of $8 million for the sale of
two office buildings and $10 for the sale of an apartment complex.
2003 second quarter includes a gain of $12 million for the sale of
commercial property. 2002 includes $21 million in gains from sales
of apartment complexes, including $7 million in the second quarter
and $14 million in the third quarter.
(11)2003 second quarter includes a $6 million charge to reflect the
final settlement in connection with the termination of the former
MacMillan Bloedel pension plan for U.S. employees. 2002 results
include a $35 million charge in the fourth quarter related to the
termination of this pension plan.
(12)2003 second quarter includes a $25 million gain for the settlement
of an insurance claim relating to the Cemwood litigation.
(13)2003 results include net foreign exchange gains (losses) of $36
million in the first quarter, $51 million in the second quarter
and ($6) million in the third quarter. 2002 results include net
foreign exchange gains (losses) of $8 million in the first
quarter, $27 million in the second quarter, ($17 million) in the
third quarter and $14 million in the fourth quarter, for a 2002
net gain of $32 million. These gains and losses result primarily
from fluctuations in Canadian and New Zealand exchange rates.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales Q1 Q2 Q3
volumes:
--------------- --------------- ---------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- --------------- ---------------
Timberlands
(millions):
Raw materials -
cubic feet 96 67 110 102 102 91
Wood Products
(millions):
Softwood lumber -
board feet 2,175 1,845 2,385 2,262 2,298 2,362
Softwood plywood
and veneer -
square feet (3/8") 726 624 760 815 744 792
Composite panels -
square feet (3/4") 278 308 317 445 313 95
Oriented strand
board - square
feet (3/8") 1,025 945 1,206 1,095 1,129 1,117
Hardwood lumber -
board feet 106 108 113 113 103 104
Raw materials -
cubic feet 128 143 118 164 112 161
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 623 563 596 618 632 561
Paper - tons 737 546 690 717 707 749
Coated groundwood -
tons 61 48 55 49 64 55
Bleached board -
tons 60 53 67 61 64 47
Paper converting -
tons 502 375 472 488 478 499
Containerboard, Packaging
and Recycling (thousands)
Containerboard -
tons 221 209 233 260 214 283
Packaging - MSF 17,752 15,001 18,577 19,285 18,545 18,553
Recycling - tons 593 604 566 552 538 539
Kraft bags and
sacks - tons 25 13 24 26 25 26
Total production Q1 Q2 Q3
volumes:
--------------- --------------- ---------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- --------------- ---------------
Timberlands
(millions):
Logs - cubic feet 182 153 152 191 147 164
Wood Products
(millions):
Softwood lumber -
board feet 1,842 1,530 1,825 1,702 1,742 1,728
Softwood plywood
and veneer -
square feet (3/8") 672 471 557 649 596 638
Composite panels -
square feet (3/4") 231 218 252 183 253 235
Oriented strand
board - square
feet (3/8") 1,011 957 1,051 944 1,061 1,115
Hardwood lumber -
board feet 108 96 102 99 103 107
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 654 607 619 492 604 630
Paper - tons 757 510 712 667 706 704
Coated groundwood -
tons 62 48 55 60 61 43
Bleached board -
tons 56 63 68 67 72 31
Paper converting -
tons 516 353 479 496 472 502
Containerboard, Packaging
and Recycling (thousands)
Containerboard -
tons 1,429 1,250 1,568 1,600 1,512 1,621
Packaging - MSF 18,977 16,174 19,955 20,521 19,865 19,596
Recycling - tons 1,528 1,387 1,644 1,588 1,507 1,551
Kraft bags and
sacks - tons 25 13 25 25 23 27
Third party sales Year-to-date Q4 Year ended
volumes:
------------------------ ---------- ----------
Sept. 28, Sept. 29, Dec. 29, Dec. 29,
2003 2002 2002 2002
------------------------ ---------- ----------
Timberlands
(millions):
Raw materials -
cubic feet 308 260 110 370
Wood Products
(millions):
Softwood lumber -
board feet 6,858 6,469 2,154 8,623
Softwood plywood
and veneer -
square feet (3/8") 2,230 2,231 672 2,903
Composite panels -
square feet (3/4") 908 848 299 1,147
Oriented strand
board - square
feet (3/8") 3,360 3,157 1,048 4,205
Hardwood lumber -
board feet 322 325 102 427
Raw materials -
cubic feet 358 468 127 595
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 1,851 1,742 636 2,378
Paper - tons 2,134 2,012 730 2,742
Coated groundwood -
tons 180 152 58 210
Bleached board -
tons 191 161 68 229
Paper converting -
tons 1,452 1,362 497 1,859
Containerboard, Packaging and Recycling
(thousands)
Containerboard -
tons 668 752 231 983
Packaging - MSF 54,874 52,839 17,491 70,330
Recycling - tons 1,697 1,695 597 2,292
Kraft bags and
sacks - tons 74 65 28 93
Total production Year-to-date Q4 Year ended
volumes:
------------------------ ---------- ----------
Sept. 28, Sept. 29, Dec. 29, Dec. 29,
2003 2002 2002 2002
------------------------ ---------- ----------
Timberlands
(millions):
Logs - cubic feet 481 508 155 663
Wood Products
(millions):
Softwood lumber -
board feet 5,409 4,960 1,871 6,831
Softwood plywood
and veneer -
square feet (3/8") 1,825 1,758 520 2,278
Composite panels -
square feet (3/4") 736 636 228 864
Oriented strand
board - square
feet (3/8") 3,123 3,016 1,033 4,049
Hardwood lumber -
board feet 313 302 104 406
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 1,877 1,729 552 2,281
Paper - tons 2,175 1,881 730 2,611
Coated groundwood -
tons 178 151 59 210
Bleached board -
tons 196 161 66 227
Paper converting -
tons 1,467 1,351 493 1,844
Containerboard, Packaging and
Recycling (thousands)
Containerboard -
tons 4,509 4,471 1,533 6,004
Packaging - MSF 58,797 56,291 18,809 75,100
Recycling - tons 4,679 4,526 1,566 6,092
Kraft bags and
sacks - tons 73 65 28 93
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March 30, June 29, Sept. 28, Dec. 29,
Assets 2003 2003 2003 2002
------ --------- --------- ---------- --------
Weyerhaeuser
Current assets:
Cash and short-term
investments $ 59 $ 47 $ 57 $ 115
Receivables, less
allowances 1,573 1,671 1,661 1,413
Inventories 2,167 2,093 1,959 1,941
Prepaid expenses 455 427 436 419
--------- --------- ---------- --------
Total current assets 4,254 4,238 4,113 3,888
Property and equipment 12,228 12,274 12,235 12,278
Construction in progress 709 669 514 687
Timber and timberlands at
cost, less fee stumpage
charged to disposals 4,450 4,454 4,440 4,402
Investments in and advances
to equity affiliates 538 564 560 578
Goodwill 3,191 3,224 3,221 3,131
Deferred pension and other
assets 1,337 1,349 1,300 1,285
--------- --------- ---------- --------
26,707 26,772 26,383 26,249
--------- --------- ---------- --------
Real estate and related
assets 1,989 2,065 2,064 1,970
--------- --------- ---------- --------
Total assets $ 28,696 $ 28,837 $ 28,447 $28,219
========= ========= ========== ========
Liabilities and Shareholders' Interest
--------------------------------------
Weyerhaeuser
Current liabilities:
Notes payable and
commercial paper $ 321 $ 238 $ 155 $ 2
Current maturities of
long-term debt 595 594 92 786
Accounts payable 975 1,046 975 983
Accrued liabilities 1,162 1,192 1,214 1,223
--------- --------- ---------- --------
Total current
liabilities 3,053 3,070 2,436 2,994
Long-term debt 12,129 11,866 12,120 11,907
Deferred income taxes,
pension, other
postretirement benefits
and other liabilities 5,541 5,612 5,632 5,346
--------- --------- ---------- --------
20,723 20,548 20,188 20,247
--------- --------- ---------- --------
Real estate and related
assets
Notes payable and
commercial paper 115 130 100 63
Long-term debt 764 762 762 814
Other liabilities 466 491 476 472
--------- --------- ---------- --------
1,345 1,383 1,338 1,349
--------- --------- ---------- --------
Total liabilities 22,068 21,931 21,526 21,596
Shareholders' interest 6,628 6,906 6,921 6,623
--------- --------- ---------- --------
Total liabilities and
shareholders' interest $ 28,696 $ 28,837 $ 28,447 $28,219
========= ========= ========== ========
STATEMENT OF CASH FLOWS Q1 Q2 Q3
--------------- ------------- -------------
SELECTED INFORMATION March March June June Sept. Sept.
(unaudited) 30, 31, 29, 30, 28, 29,
(in millions) 2003 2002 2003 2002 2003 2002
--------------- ------------- -------------
(Weyerhaeuser only,
excludes real estate &
related assets)
Net cash from operations $(126) $ (90) $ 465 $ 379 $ 489 $ 268
Cash paid for property
and equipment (128) (158) (172) (288) (146) (237)
Cash paid for
timberlands
reforestation (14) (12) (5) (8) (6) (6)
Cash received from
issuances of debt 1 13,001 - 100 12 26
Revolving credit
facilities, notes and
commercial paper
borrowings, net 599 30 (333) (150) 166 122
Payments on debt (251) (6,593) (14) (97) (509) (159)
STATEMENT OF CASH FLOWS Year-to-date Q4 Year ended
--------------------- ---------- ----------
SELECTED INFORMATION Sept. 28, Sept. 29, Dec. 29, Dec. 29,
(unaudited) 2003 2002 2002 2002
(in millions) --------------------- ---------- ----------
(Weyerhaeuser only,
excludes real estate &
related assets)
Net cash from operations $ 828 $ 557 $ 701 $ 1,258
Cash paid for property
and equipment (446) (683) (241) (924)
Cash paid for
timberlands
reforestation (25) (26) (10) (36)
Cash received from
issuances of debt 13 13,127 1,015 14,142
Revolving credit
facilities, notes and
commercial paper
borrowings, net 432 2 (230) (228)
Payments on debt (774) (6,849) (1,375) (8,224)
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
Its: Vice President and
Chief Accounting Officer
Date: October 24, 2003