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
January 23, 2004
----------------------------------
(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 January 23, 2004, Weyerhaeuser Company issued a press release as follows:
FEDERAL WAY, Wash.-- Weyerhaeuser Company (NYSE: WY) today reported fourth
quarter net earnings of $92 million, or 41 cents per share, on net sales of
$5.1 billion. This compares with $126 million, or 57 cents per share, on net
sales of $4.7 billion for the fourth quarter of 2002.
Fourth quarter 2003 earnings include the following after-tax items:
* A charge of $29 million, or 14 cents per share, for closure of
facilities.
* A charge of $17 million, or 8 cents per share, for integration and
restructuring activities.
* A charge of $5 million, or 2 cents per share, associated with the
settlement of litigation.
* A gain of $40 million, or 18 cents per share, on the sale of
timberlands in Tennessee and the Carolinas.
Fourth quarter 2002 earnings include the following after-tax items:
* Gains of $95 million, or 42 cents per share, on the sale of timberlands
in Washington state net of costs associated with the closure of related
Wood Products and Timberlands operations, a reduction in depreciation
resulting from an adjustment to the preliminary purchase price
allocation for the Willamette acquisition and the benefit from
insurance proceeds covering a business disruption.
* Charges of $57 million, or 26 cents per share, for the termination of
the former MacMillan Bloedel pension plan for U.S. employees,
acquisition and integration of Willamette Industries and the closure of
other facilities.
Net sales in 2003 were $19.9 billion compared with $18.5 billion in 2002.
For the full year 2003, Weyerhaeuser reported net earnings of $277 million, or
$1.25 per share, compared with $241 million, or $1.09 per share for the full
year 2002.
Significant 2003 accomplishments:
* Reduced Weyerhaeuser Company debt, excluding Real Estate and Related
Assets, by approximately $1.1 billion to $11.6 billion. Total company
debt, which includes Real Estate and Related Assets, was reduced by
approximately $1.1 billion to $12.5 billion at year-end. Weyerhaeuser
continues to make excellent progress toward achieving its target
financial ratios.
* Captured $300 million in synergies from the Willamette acquisition in
half the projected time.
-- Sold approximately 444,000 acres of non-strategic timberlands.
-- Reduced capital spending, excluding Real Estate and Related Assets, to
approximately $626 million, a 35 percent decrease from $960 million the
prior year.
-- Continued to rationalize the company's manufacturing system by closing
12 facilities. In addition, Weyerhaeuser significantly improved the
productivity of its remaining manufacturing operations.
"Thanks to the hard work of our employees, during 2003 we successfully
completed the integration of Willamette, captured the synergies and continued to
reduce debt despite very challenging economic conditions," said Steven R. Rogel,
chairman, president and chief executive officer. "Continuing consolidation and
a changing customer base are driving significant changes within the forest
products industry. These changes underscore the importance of the strategies we
pursued in 2003 to aggressively reduce costs, increase productivity, and
maintain strong relationships with our customers and suppliers. We're pleased
with the progress we made this year, but we recognize that we must constantly
improve if we are going to successfully respond to these market challenges.
"In 2004, we plan to become even more efficient and to continue working
closely with customers to meet their needs," Rogel said. "This will mean
developing the most productive manufacturing system in the industry. We'll also
continue reducing debt and maximizing our return on assets to position
Weyerhaeuser to compete successfully in our evolving industry."
SUMMARY OF FOURTH QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 4Q 2003 4Q 2002 Change
Net earnings $92 $126 ($34)
Earnings per share $0.41 $0.57 ($0.16)
Net sales $5,145 $4,718 $427
SUMMARY OF 2003 FINANCIAL HIGHLIGHTS
Millions (except per share data) 2003 2002 Change
Net earnings $277 241 $36
Earnings per share $1.25 $1.09 $0.16
Net sales $19,873 $18,521 $1,352
SEGMENT RESULTS FOR FOURTH QUARTER 2003
(Contributions to Pre-Tax Earnings)
Millions 4Q 2003 4Q 2002 Change
Timberlands $185 $300 ($115)
Wood Products $111 ($75) $186
Pulp and Paper ($67) $86 ($153)
Containerboard, Packaging
and Recycling $32 $114 ($82)
Real Estate and Related Assets $109 $81 $28
TIMBERLANDS
4Q 2003 3Q 2003 Change
Contribution to earnings
(millions) $185 $143 $42
Excluding the pre-tax gain of $61 million in the fourth quarter on the sale
of non-strategic timberlands in Tennessee and the Carolinas, fourth quarter
earnings were down slightly from third quarter. Stronger log prices and
improved export markets in the West were offset by lower seasonal fee harvest
and lower domestic sales volumes. Log prices in the South remained flat, but
lower seasonal fee harvest caused a reduction in earnings.
First quarter earnings are expected to be higher than the fourth quarter
-- adjusted for the sale of non-strategic timberlands in the fourth quarter
-- due to higher domestic log sales volumes and prices in the West, and higher
planned fee harvest in the South.
WOOD PRODUCTS
4Q 2003 3Q 2003 Change
Contribution to earnings
(millions) $111 $151 ($40)
The net reduction in earnings from the third quarter was due primarily due
to volatile prices for wood products. Prices increased for oriented strand
board and plywood before declining sharply late in the quarter. Declines in
Western lumber prices, lower volumes and higher raw material costs reduced
lumber results. Higher OSB prices negatively affected margins for engineered
wood products. The late quarter decline in structural panel prices negatively
affected earnings in the company's building products distribution centers. Wood
Products recognized pre-tax charges of $13 million in the fourth quarter
compared with $31 million in the third quarter for the closure of facilities.
The segment also incurred $22 million in countervailing and anti-dumping duties
and related costs on Canadian softwood lumber the company sold into the United
States in the fourth quarter. This compares to
$25 million in the third quarter. For the year, Weyerhaeuser incurred
$97 million in countervailing and anti-dumping duties.
First quarter results are expected to be lower than fourth quarter due
primarily to price decreases in lumber and structural panels. The company
expects the Canadian softwood lumber issue to continue to affect earnings.
PULP AND PAPER
4Q 2003 3Q 2003 Change
Contribution (charge)
to earnings (millions) ($67) ($18) ($49)
A weak paper market combined with pre-tax charges of $30 million associated
with the closure of the paper machine at Longview, Wash., resulted in
significantly lower earnings compared with the prior quarter. Paper prices were
slightly lower during the quarter. To balance supply to demand, the paper
business took 96,000 tons of market-related downtime during the quarter. Pulp
earnings were steady as higher pulp prices were mostly offset by higher
manufacturing costs.
First quarter losses are expected to narrow from fourth quarter due to
increased demand for fine paper and improving softwood pulp prices.
CONTAINERBOARD, PACKAGING AND RECYCLING
4Q 2003 3Q 2003 Change
Contribution to earnings (millions) $32 $42 ($10)
Excluding pre-tax charges of $40 million in the third quarter associated
with the closure of facilities and settlement of litigation, fourth quarter
earnings were down $50 million from third quarter. Prices for boxes and
containerboard declined through the quarter. Packaging volumes declined
seasonally, but were higher than levels a year ago. Manufacturing costs rose
modestly during the quarter. The mills took 71,000 tons of market-related
downtime to adjust production to the seasonal decline in shipments.
Earnings in the first quarter are expected to be down slightly due primarily
to higher raw material costs for old corrugated containers (OCC). This is
expected to be partially offset by anticipated containerboard price increases
late in the quarter. Volumes should improve seasonally and
year-over-year. Increases in operating rates are expected to result in lower
manufacturing costs.
REAL ESTATE AND RELATED ASSETS
4Q 2003 3Q 2003 Change
Contribution to earnings (millions) $109 $97 $12
A continued strong housing market, low interest rates and a quarterly record
for closings produced increased earnings from the prior quarter.
Continued strong markets are expected to produce first quarter earnings that
are comparable to fourth quarter. The company currently has a backlog of
approximately six months of homes sold, but not closed.
OTHER
The company will hold a live conference call at 7 a.m. PST (10 a.m. EST) on
Jan. 23 to discuss the fourth quarter results.
To access the conference call, listeners calling from within North America
should dial 1-888-221-5699 at least 15 minutes prior to the start of the
conference call. Those wishing to access the call from outside North America
should dial 1-706-643-3795. Supporting slides are available at
http://www.weyerhaeuser.com by clicking "Listen to Our Webcast and View
Supporting Slides." Replays of the call will be available for one week following
completion of the live call and can be accessed at 1-800-642-1687 (access code
4861240) within North America and at 1-706-645-9291 (access code 4861240) from
outside North America.
Weyerhaeuser Company, one of the world's largest integrated forest products
companies, was incorporated in 1900. In 2003, sales were $19.9 billion. It has
offices or operations in 18 countries, with customers worldwide. Weyerhaeuser
is principally engaged in the growing and harvesting of timber; the manufacture,
distribution and sale of forest products; and real estate construction,
development and related activities. Additional information about Weyerhaeuser's
businesses, products and practices is available at http://www.weyerhaeuser.com .
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 debt reduction, continued savings, increasing
productivity in the manufacturing system, management of asset base, the
company's markets in the first quarter; and expected earnings and performance of
the company's business segments during the first quarter. 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
March March June June Sept. Sept.
(in millions) 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
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS (1) Q4 Year ended
(in millions) Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
Net sales and revenues:
Weyerhaeuser (2) $4,527 $4,253 $17,844 $16,771
Real estate and related assets 618 465 2,029 1,750
Total net sales and revenues 5,145 4,718 19,873 18,521
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,547 3,285 14,078 13,211
Depreciation, amortization and
fee stumpage 353 335 1,307 1,214
Selling expenses 122 115 457 450
General and administrative
expenses 238 229 950 847
Research and development
expenses 17 16 51 52
Taxes other than payroll and
income taxes 45 39 185 178
Charges for integration and
restructuring 25 30 103 72
Charges for closure of
facilities 45 40 127 95
Other operating costs,
net (3) (4) (92) (135) (244) (139)
4,300 3,954 17,014 15,980
Real estate and related assets:
Costs and operating expenses 464 359 1,516 1,326
Depreciation and amortization 3 7 11 11
Selling expenses 31 22 107 90
General and administrative
expenses 20 13 63 48
Taxes other than payroll and
income taxes 1 1 3 4
Other operating costs, net (4) (1) (9) (1)
515 401 1,691 1,478
Total costs and expenses 4,815 4,355 18,705 17,458
Operating income 330 363 1,168 1,063
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (5) (202) (207) (815) (821)
Less interest capitalized 5 14 19 50
Equity in income (loss) of
affiliates (1) (1) (6) (13)
Interest income and other 2 8 17 28
Real estate and related assets:
Interest expense incurred (13) (15) (53) (53)
Less interest capitalized 13 15 53 53
Equity in income of
unconsolidated
entities (3) 9 20 31
Interest income and other 8 8 33 33
Earnings before income taxes and
cumulative effect of a change in
accounting principle 139 194 436 371
Income taxes (47) (68) (148) (130)
Earnings before cumulative effect of
a change in accounting principle 92 126 288 241
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6 (6) -- -- (11) --
Net earnings (loss) $92 $126 $277 $241
Basic and diluted net earnings (loss)
per share:
Net earnings (loss) before
cumulative effect of a change in
accounting principle $0.41 $0.57 $1.30 $1.09
Cumulative effect of a change in
accounting principle -- -- (0.05) --
Net earnings (loss) $0.41 $0.57 $1.25 $1.09
Dividends paid per share $0.40 $0.40 $1.60 $1.60
(1) Certain reclassifications have been made to conform prior period data
with the current presentation.
(2) The first, second, third and fourth quarters of 2003 include charges
of $24 million, $26 million, $25 million, and $22 million,
respectively, or a total of $97 million for the year 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, third and fourth quarters include net foreign
exchange gains (losses) of $35 million, $47 million, ($4) million, and
$30 million, respectively, for a total net gain of $108 million for
the year. 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. 2003 fourth quarter
includes a $61 million gain on the sales of timberlands in Tennessee
and the Carolinas and an $8 million charge associated with the
settlement of litigation related to workers compensation claims. 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)
Q1 Q2 Q3
Net sales and revenues March March June June Sept. Sept.
(in millions): 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
Liquid packaging 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): March March June June Sept. Sept.
(in millions) 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
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions): Q4 Year ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
Timberlands:
Raw materials (logs, timber
and chips) $207 $254 $835 $773
Other products 26 39 89 97
233 293 924 870
Wood Products:
Softwood lumber 793 748 3,281 3,186
Plywood and veneer 239 178 823 734
Oriented strand board, composite
and other panels 469 251 1,502 1,028
Hardwood lumber 79 77 320 306
Engineered lumber products 288 256 1,179 1,148
Raw materials (logs, timber and
chips) 86 117 321 472
Other products 210 160 818 718
2,164 1,787 8,244 7,592
Pulp and Paper:
Pulp 342 319 1,305 1,196
Paper 510 594 2,182 2,163
Coated groundwood 33 34 140 126
Liquid packaging board 49 51 198 179
Other products 14 10 37 34
948 1,008 3,862 3,698
Containerboard, Packaging and
Recycling:
Containerboard 73 86 304 350
Packaging 845 864 3,544 3,466
Recycling 64 63 247 229
Bags 21 23 80 75
Other products 39 20 147 92
1,042 1,056 4,322 4,212
Real Estate and Related Assets 618 465 2,029 1,750
Corporate and Other 140 109 492 399
$5,145 $4,718 $19,873 $18,521
Contribution (charge) to earnings(1): Q4 Year ended
(in millions) Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
Timberlands (2) $185 $300 $777 $702
Wood Products (3) (4) (5) 111 (75) 59 (20)
Pulp and Paper (6) (7) (67) 86 (82) 82
Containerboard, Packaging and
Recycling (8) (9) 32 114 262 335
Real Estate and Related Assets (10) 109 81 392 336
Corporate and Other (11) (12) (13) (34) (119) (176) (293)
$336 $387 $1,232 $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. 2003 fourth quarter includes a
$61 million gain on the sale of timberlands in Tennessee and the
Carolinas. 2002 fourth quarter includes a $117 million gain on the
sale of timberlands in Washington state.
(3) The first, second, third and fourth quarters of 2003 include charges
of $24 million, $26 million, $25 million, and $22 million,
respectively, or a total of $97 million for the year 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, third and fourth quarters include costs for the
closure of facilities of $22 million, $11 million, $31 million, and
$14 million, respectively. 2003 second quarter also includes a charge
of $16 million to recognize impairment associated with an impending
facility sale that closed in the fourth quarter of 2003. 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. 2003 fourth
quarter includes $30 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 and fourth quarters include closure
costs of $17 million and $1 million, respectively. 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. 2003 fourth
quarter includes an $8 million charge for the settlement of
litigation related to workers compensation claims.
(13) 2003 results include net foreign exchange gains (losses) of
$35 million in the first quarter, $46 million in the second quarter,
($4) million in the third quarter, and $30 million in the fourth
quarter, for a net 2003 gain of $107 million. 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 volumes: Q1 Q2 Q3
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
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
Liquid packaging 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 volumes: Q1 Q2 Q3
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
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 115 96 111 99 109 107
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
Liquid packaging 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
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes: Q4 Year ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
Timberlands (millions):
Raw materials - cubic feet 105 110 413 370
Wood Products (millions):
Softwood lumber - board feet 2,123 2,154 8,981 8,623
Plywood and veneer - square feet
(3/8") 674 672 2,904 2,903
Composite panels - square feet
(3/4") 302 299 1,210 1,147
Oriented strand board - square
feet (3/8") 1,304 1,048 4,664 4,205
Hardwood lumber - board feet 105 102 427 427
Raw materials - cubic feet 130 127 488 595
Pulp and Paper (thousands):
Pulp - air-dry metric tons 628 636 2,479 2,378
Paper - tons 688 730 2,822 2,742
Coated groundwood - tons 54 58 234 210
Liquid packaging board - tons 65 68 256 229
Paper converting - tons 430 497 1,882 1,859
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 222 231 890 983
Packaging - MSF 17,867 17,491 72,741 70,330
Recycling - tons 593 597 2,290 2,292
Kraft bags and sacks - tons 26 28 100 93
Total production volumes: Q4 Year ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
Timberlands (millions):
Logs - cubic feet 148 155 629 663
Wood Products (millions):
Softwood lumber - board feet 1,704 1,871 7,113 6,831
Plywood and veneer -
square feet (3/8") 586 520 2,411 2,278
Composite panels -
square feet (3/4") 252 228 988 864
Oriented strand board -
square feet (3/8") 1,047 1,033 4,170 4,049
Hardwood lumber - board feet 106 104 441 406
Pulp and Paper (thousands):
Pulp - air-dry metric tons 645 552 2,522 2,281
Paper - tons 658 730 2,833 2,611
Coated groundwood - tons 61 59 239 210
Liquid packaging board - tons 65 66 261 227
Paper converting - tons 415 493 1,882 1,844
Containerboard, Packaging and
Recycling (thousands)
Containerboard - tons 1,494 1,533 6,003 6,004
Packaging - MSF 19,033 18,809 77,830 75,100
Recycling - tons 1,537 1,566 6,216 6,092
Kraft bags and sacks - tons 25 28 98 93
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March 30, June 29, Sept. 28, Dec. 28, Dec. 29,
Assets 2003 2003 2003 2003 2002
Weyerhaeuser
Current assets:
Cash and short-term
investments $59 $47 $57 $171 $115
Receivables, less
allowances 1,573 1,671 1,661 1,484 1,413
Inventories 2,167 2,093 1,959 1,911 1,941
Prepaid expenses 455 427 436 455 419
Total current
assets 4,254 4,238 4,113 4,021 3,888
Property and equipment 12,228 12,274 12,235 12,243 12,278
Construction in progress 709 669 514 403 687
Timber and timberlands
at cost, less fee
stumpage charged to
disposals 4,450 4,454 4,440 4,287 4,402
Investments in and
advances to equity
affiliates 538 564 560 603 578
Goodwill 3,191 3,224 3,221 3,237 3,131
Deferred pension and
other assets 1,337 1,349 1,300 1,311 1,285
26,707 26,772 26,383 26,105 26,249
Real estate and related
assets 1,989 2,065 2,064 2,004 1,970
Total assets $28,696 $28,837 $28,447 $28,109 $28,219
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and
commercial paper $321 $238 $155 $4 $2
Current maturities of
long-term debt 595 594 92 90 786
Accounts payable 975 1,046 975 1,041 983
Accrued liabilities 1,162 1,192 1,214 1,390 1,223
Total current
liabilities 3,053 3,070 2,436 2,525 2,994
Long-term debt 12,129 11,866 12,120 11,503 11,907
Deferred income taxes,
pension, other
postretirement benefits
and other liabilities 5,541 5,612 5,632 5,671 5,346
20,723 20,548 20,188 19,699 20,247
Real estate and related assets
Notes payable and
commercial paper 115 130 100 1 63
Long-term debt 764 762 762 893 814
Other liabilities 466 491 476 407 472
1,345 1,383 1,338 1,301 1,349
Total liabilities 22,068 21,931 21,526 21,000 21,596
Shareholders' interest 6,628 6,906 6,921 7,109 6,623
Total liabilities and
shareholders' interest $28,696 $28,837 $28,447 $28,109 $28,219
STATEMENT OF CASH FLOWS Q1 Q2 Q3
March March June June Sept. Sept.
SELECTED INFORMATION (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) $397 $379 $557 $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 Q4 Year ended
SELECTED INFORMATION (unaudited) Dec. 28, Dec. 29, Dec. 28, Dec. 29,
(in millions) 2003 2002 2003 2002
(Weyerhaeuser only, excludes real
estate & related assets)
Net cash from operations $819 $701 $1,647 $1,258
Cash paid for property and
equipment (146) (241) (592) (924)
Cash paid for timberlands
reforestation (9) (10) (34) (36)
Cash received from issuances of
debt 31 1,015 44 14,142
Revolving credit facilities, notes
and commercial paper
borrowings, net (750) (230) (318) (228)
Payments on debt (50) (1,375) (824) (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: January 23, 2004