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
October 22, 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
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
----- Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
----- Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
----- Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act(17 CFR 240.14d-2(b))
----- Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act(17 CFR 240.13e-4(c))
TABLE OF CONTENTS
Item 2.02. Results of Operations and Financial Condition
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C., 20549
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 22, 2004, Weyerhaeuser Company issued a press release stating the
following:
Weyerhaeuser Reports Third Quarter Net Earnings of $594 Million,
or $2.45 Per Diluted Share, on Net Sales of $5.8 Billion
FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported third
quarter net earnings of $594 million, or $2.45 per diluted share, on net sales
of $5.8 billion. This compares with $82 million, or 37 cents per diluted share,
on net sales of $5.2 billion for the third quarter of 2003.
Third quarter 2004 earnings include the following after-tax items:
* A gain of $179 million, or 74 cents per diluted share, from a sale of
timberlands in Georgia.
* A gain of $16 million, or 7 cents per diluted share, from a tenure
reallocation agreement with the British Columbia government.
* A gain of $13 million, or 5 cents per diluted share, due to the reduction of
the reserve for hardboard siding claims.
* A charge of $7 million, or 3 cents per diluted share, related to the sale or
closure of facilities.
Third quarter 2003 earnings included the following after-tax items:
* A charge of $32 million, or 14 cents per diluted share, for closure of
facilities;
* A charge of $15 million, or 7 cents per diluted share, associated with the
settlement of a class action linerboard antitrust lawsuit;
* A charge of $15 million, or 7 cents per diluted share, for integration and
restructuring activities.
Other significant third quarter financial matters include:
* The company, including Real Estate and Related Assets, reduced outstanding
debt by approximately $270 million to approximately $11.4 billion at the end of
the quarter. In addition, cash and short-term investments increased by
approximately $500 million in the third quarter due primarily to strong cash
flows from operations and proceeds from the sale of timberlands in Georgia. The
$1.2 billion balance of cash and short-term investments as of the end of the
third quarter is largely expected to be applied to future debt repayment.
* Capital spending, excluding Real Estate and Related Assets, for the first
three quarters of 2004 was approximately $275 million.
"Our strong quarterly earnings reflect favorable market conditions and
contributions from all our businesses," said Steven R. Rogel, chairman,
president and chief executive officer. "Our employees continue to do an
outstanding job containing costs, increasing productivity and improving
efficiency. While we expect to see normal seasonal downturns in the fourth
quarter, we are well positioned in our markets."
SUMMARY OF THIRD QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 3Q 2004 3Q 2003 Change
Net earnings $594 $82 $512
Diluted earnings per share $2.45 $0.37 $2.08
Net sales $5,849 $5,184 $665
SEGMENT RESULTS FOR THIRD QUARTER 2004
(Contributions to Pre-Tax Earnings)
Millions 3Q 2004 3Q 2003 Change
Timberlands $450 $143 $307
Wood Products $362 $151 $211
Pulp and Paper $80 ($18) $98
Containerboard, Packaging and Recycling $82 $42 $40
Real Estate and Related Assets $155 $97 $58
DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT
TIMBERLANDS
3Q 2004 2Q 2004 Change
Contribution to earnings (millions) $450 $201 $249
Third quarter earnings include a $271 million pre-tax gain on the
previously announced sale of timberlands in Georgia. Excluding this gain,
earnings declined $22 million from the second quarter, reflecting a normal
seasonal reduction in harvest activity in the West and abnormally wet weather
in the South. Aside from disruption due to wet weather, hurricanes caused
minimal damage to our timberlands. Prices for logs in both domestic and export
markets increased slightly from the prior quarter.
Fourth quarter earnings are expected to be similar to third quarter,
excluding the third quarter sale of timberlands in Georgia.
WOOD PRODUCTS
3Q 2004 2Q 2004 Change
Contribution to earnings (millions) $362 $448 ($86)
Third quarter earnings of $362 million include a $20 million pre-tax gain
from the tenure reallocation agreement with the British Columbia government,
and a $20 million reduction in the reserve for hardboard siding claims. This
compares to second quarter earnings of $448 million, which included a $16
million pre-tax charge from an adverse judgment in a lawsuit.
Housing starts remained high throughout the quarter, resulting in healthy
demand for oriented strand board, plywood and lumber. Structural panel prices
were volatile with average prices declining from the second quarter. In
contrast, average prices for most lumber indicators were flat to slightly up
from second quarter to third. The segment also benefited from earlier price
increases in engineered lumber.
The segment incurred $31 million in countervailing and anti-dumping duties
and related costs on Canadian softwood lumber the company sold into the United
States in the third quarter. This compares to $34 million in the second
quarter.
Fourth quarter earnings are expected to be lower than the third quarter,
as lumber and structural panel prices decline from recent, very high levels.
PULP AND PAPER
3Q 2004 2Q 2004 Change
Contribution to earnings (millions) $80 $14 $66
Earnings increased during the quarter as uncoated free sheet paper prices
improved across all product lines. Papergrade pulp prices increased during the
quarter but have begun to decline. Fluff pulp prices improved early in the
quarter and remained stable. Fine Paper prices strengthened throughout the
quarter and are expected to continue to improve in the fourth quarter as a
result of recent price increases.
Fourth quarter earnings are expected to be slightly lower than the third
quarter -- despite stable fluff pulp markets and increases in paper prices --
due to weakening papergrade pulp markets and costs associated with scheduled
maintenance downtime.
CONTAINERBOARD, PACKAGING AND RECYCLING
3Q 2004 2Q 2004 Change
Contribution to earnings (millions) $82 $62 $20
Earnings improved over second quarter levels due primarily to price
increases for both containerboard and boxes, as well as slightly lower costs
for old corrugated containers. Third quarter results include pre-tax charges
of $12 million related to facility closures.
Customer demand for boxes is expected to remain healthy, but decline
seasonally. The company expects higher fourth quarter earnings due primarily
to increasing prices.
REAL ESTATE AND RELATED ASSETS
3Q 2004 2Q 2004 Change
Contribution to earnings (millions) $155 $118 $37
Third quarter earnings benefited from increased single-family home
closings and higher margins, and from the sale of a multi-family site that
generated a pre-tax gain of $18 million. The pace of single-family home sales
during the third quarter declined seasonally compared to the prior quarter.
However, the backlog of homes sold, but not closed, is approximately seven
months.
Fourth quarter earnings are expected to modestly exceed the third quarter
because of increased closing volume and strong margins.
OTHER
The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT)
on Oct. 22 to discuss the third 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. 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 -- 1384680) within North America and at 1-706-645-9291 (access
code -- 1384680) 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 (NYSE: WY), 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 the company's markets in the
fourth quarter; expected earnings and performance of the company's business
segments during the fourth quarter, demand and pricing for the company's
products in the fourth quarter, debt repayment, capital spending, timber
harvest in the fourth quarter, no major timberland sales in the fourth
quarter, slowdown of housing construction in the fourth quarter, closings of
home sales in the fourth quarter, scheduled maintenance downtime in the fourth
quarter, new home sales and other 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; 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; disruption of transportation 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 Q1 Q2 Q3
March March June June Sept. Sept.
(in millions) 28, 30, 27, 29, 26, 28,
2004 2003 2004 2003 2004 2003
Net sales and revenues:
Weyerhaeuser (1) $4,568 $4,169 $5,369 $4,498 $5,258 $4,650
Real Estate and Related
Assets 469 445 524 432 591 534
Total net sales and
revenues 5,037 4,614 5,893 4,930 5,849 5,184
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,539 3,322 3,922 3,611 3,894 3,598
Depreciation,
amortization and fee
stumpage 325 321 328 313 326 320
Selling expenses 121 107 122 111 125 117
General and
administrative
expenses 241 231 235 232 229 249
Research and
development expenses 12 12 13 12 13 10
Taxes other than
payroll and income
taxes 48 47 48 48 50 45
Charges for
integration and
restructuring 15 29 13 25 8 24
Charges for closure of
facilities 1 22 -- 12 13 48
Other operating costs,
net (2) (3) 14 37 42 (205) (318) 16
4,316 4,128 4,723 4,159 4,340 4,427
Real Estate and Related
Assets:
Costs and operating
expenses 321 330 381 316 414 406
Depreciation and
amortization 2 3 4 2 3 3
Selling expenses 27 24 30 25 31 27
General and
administrative
expenses 17 14 19 14 19 15
Taxes other than
payroll and income
taxes 1 1 -- 1 1 0
Other operating costs,
net 1 (7) 1 -- (19) 2
369 365 435 358 449 453
Total costs and expenses 4,685 4,493 5,158 4,517 4,789 4,880
Operating income 352 121 735 413 1,060 304
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred (4) (195) (208) (218) (205) (184) (200)
Less interest
capitalized 3 5 1 6 0 3
Equity in income
(loss) of affiliates -- (5) 7 3 4 (3)
Interest income and
other 3 6 5 6 7 3
Real Estate and Related
Assets:
Interest expense
incurred (15) (14) (14) (13) (14) (13)
Less interest
capitalized 15 14 14 13 14 13
Equity in income of
unconsolidated
entities 9 5 20 7 12 11
Interest income and
other 11 11 9 8 1 6
Earnings before income
taxes and cumulative
effect of a change
in accounting principle 183 (65) 559 238 900 124
Income taxes (62) 22 (190) (81) (306) (42)
Earnings before cumulative
effect of a change in
accounting principle 121 (43) 369 157 594 82
Cumulative effect of a
change in accounting
principle, net of
applicable taxes of $6(5) -- (11) -- -- -- --
Net earnings (loss) $121 $(54) $369 $157 $594 $82
Basic net earnings (loss)
per share:
Net earnings (loss)
before cumulative
effect of a change
in accounting
principle $0.54 $(0.19) $1.57 $0.71 $2.46 $0.37
Cumulative effect of a
change in accounting
principle -- (0.05) -- -- -- --
Net earnings (loss) $0.54 $(0.24) $1.57 $0.71 $2.46 $0.37
Diluted net earnings
(loss) per share:
Net earnings (loss)
before cumulative
effect of a change
in accounting
principle $0.54 $(0.19) $1.57 $0.71 $2.45 $0.37
Cumulative effect of a
change in accounting
principle -- (0.05) -- -- -- --
Net earnings (loss) $0.54 $(0.24) $1.57 $0.71 $2.45 $0.37
Dividends paid per share $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Year
CONSOLIDATED EARNINGS Year-to-date Q4 Ended
(in millions) Sept. Sept. Dec. Dec.
26, 28, 28, 28,
2004 2003 2003 2003
Net sales and revenues:
Weyerhaeuser (1) $15,195 $13,317 $4,527 $17,844
Real Estate and Related Assets 1,584 1,411 618 2,029
Total net sales and revenues 16,779 14,728 5,145 19,873
Costs and expenses:
Weyerhaeuser:
Costs of products sold 11,355 10,531 3,547 14,078
Depreciation, amortization and
fee stumpage 979 954 353 1,307
Selling expenses 368 335 122 457
General and administrative
expenses 705 712 238 950
Research and development expenses 38 34 17 51
Taxes other than payroll and
income taxes 146 140 45 185
Charges for integration and
restructuring 36 78 25 103
Charges for closure of facilities 14 82 45 127
Other operating costs, net (2)
(3) (262) (152) (92) (244)
13,379 12,714 4,300 17,014
Real Estate and Related Assets:
Costs and operating expenses 1,116 1,052 464 1,516
Depreciation and amortization 9 8 3 11
Selling expenses 88 76 31 107
General and administrative
expenses 55 43 20 63
Taxes other than payroll and
income taxes 2 2 1 3
Other operating costs, net (17) (5) (4) (9)
1,253 1,176 515 1,691
Total costs and expenses 14,632 13,890 4,815 18,705
Operating income 2,147 838 330 1,168
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (4) (597) (613) (202) (815)
Less interest capitalized 4 14 5 19
Equity in income (loss) of
affiliates 11 (5) (1) (6)
Interest income and other 15 15 2 17
Real Estate and Related Assets:
Interest expense incurred (43) (40) (13) (53)
Less interest capitalized 43 40 13 53
Equity in income of unconsolidated
entities 41 23 (3) 20
Interest income and other 21 25 8 33
Earnings before income taxes and
cumulative effect of a change in
accounting principle 1,642 297 139 436
Income taxes (558) (101) (47) (148)
Earnings before cumulative effect of a
change in accounting principle 1,084 196 92 288
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6 (5) -- (11) -- (11)
Net earnings (loss) $1,084 $185 $92 $277
Basic net earnings (loss) per share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $4.65 $0.88 $0.41 $1.30
Cumulative effect of a change in
accounting principle -- (0.05) -- (0.05)
Net earnings (loss) $4.65 $0.83 $0.41 $1.25
Diluted net earnings (loss) per share:
Net earnings (loss) before
cumulative effect of a change in
accounting principle $4.62 $0.88 $0.41 $1.30
Cumulative effect of a change in
accounting principle -- (0.05) -- (0.05)
Net earnings (loss) $4.62 $0.83 $0.41 $1.25
Dividends paid per share $1.20 $1.20 $0.40 $1.60
(1) The first, second and third quarters of 2004 include charges of
$26 million, $34 million and $31 million, respectively, or
$91 million year-to-date, for countervailing and anti-dumping duties
and related costs. 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.
(2) The first, second and third quarters of 2004 include net foreign
exchange gain (losses) of ($9) million, ($7) million and $16 million,
respectively, for a total year-to-date net gain (loss) of zero. The
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. These gains and losses result primarily from
fluctuations in Canadian and New Zealand exchange rates.
(3) The first quarter of 2004 includes a $49 million charge for the
settlement of lawsuits involving the market for Pacific Northwest
alder logs and a $33 million gain on the sale of an oriented strand
board mill in Slave Lake, Alberta. The second quarter includes a
$16 million charge resulting from an adverse judgment in a lawsuit
involving the market for Pacific Northwest alder logs. The third
quarter includes a $271 million gain on the sale of timberlands in
Georgia, a $25 million gain from a tenure reallocation agreement with
the British Columbia government, and a $20 million gain due to the
reduction of the reserve for hardboard siding claims. 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.
(4) The second quarter of 2004 includes a $21 million charge for the
early extinguishment of debt.
(5) Statement of Financial Accounting Standards No. 143, Accounting for
Asset Retirement Obligations, was adopted as of the beginning of
2003.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in
millions): Q1 Q2 Q3
March March June June Sept. Sept.
28, 30, 27, 29, 26, 28,
2004 2003 2004 2003 2004 2003
Timberlands:
Logs $193 $162 $211 $185 $197 $184
Other products 58 80 66 61 51 62
251 242 277 246 248 246
Wood Products:
Softwood lumber 819 752 1,106 846 1,089 890
Plywood 221 165 263 173 237 219
Veneer 11 9 12 9 11 9
Composite panels 108 90 133 104 138 100
OSB 338 167 456 227 341 345
Hardwood lumber 81 80 94 86 83 75
Engineered lumber
products 298 254 396 308 418 329
Logs 23 25 38 33 32 19
Other products 248 216 294 262 295 251
2,147 1,758 2,792 2,048 2,644 2,237
Pulp and Paper:
Pulp 339 309 371 321 381 333
Paper 535 596 538 546 583 530
Coated groundwood 36 36 37 32 39 39
Liquid packaging board 49 47 53 52 53 50
Other products 10 6 13 6 15 5
969 994 1,012 957 1,071 957
Containerboard, Packaging
and Recycling:
Containerboard 81 77 80 81 94 73
Packaging 853 879 918 922 916 898
Recycling 80 60 91 63 87 60
Bags 19 20 18 20 20 19
Other products 33 33 34 35 43 40
1,066 1,069 1,141 1,121 1,160 1,090
Real Estate and Related
Assets 469 445 524 432 591 534
Corporate and Other 135 106 147 126 135 120
$5,037 $4,614 $5,893 $4,930 $5,849 $5,184
Contribution (charge) to
earnings: Q1 Q2 Q3
(in millions) March March June June Sept. Sept.
28, 30, 27, 29, 26, 28,
2004 2003 2004 2003 2004 2003
Timberlands (1) $159 $149 $201 $300 $450 $143
Wood Products (2) (3) (4)
(5) 173 (150) 448 (53) 362 151
Pulp and Paper (6) (25) 10 14 (7) 80 (18)
Containerboard, Packaging
and Recycling (7) (8) 24 80 62 108 82 42
Real Estate and Related
Assets (9) 120 95 118 91 155 97
Corporate and Other (10)
(11) (12) (76) (46) (67) (2) (45) (94)
$375 $138 $776 $437 $1,084 $321
Year
Net sales and revenues (in millions): Year-to-date Q4 Ended
Sept. Sept. Dec. Dec.
26, 28, 28, 28,
2004 2003 2003 2003
Timberlands:
Logs $601 $531 $199 $730
Other products 175 203 61 264
776 734 260 994
Wood Products:
Softwood lumber 3,014 2,488 793 3,281
Plywood 721 557 227 784
Veneer 34 27 12 39
Composite panels 379 294 99 393
OSB 1,135 739 370 1,109
Hardwood lumber 258 241 79 320
Engineered lumber products 1,112 891 288 1,179
Logs 93 77 28 105
Other products 837 729 246 975
7,583 6,043 2,142 8,185
Pulp and Paper:
Pulp 1,091 963 342 1,305
Paper 1,656 1,672 510 2,182
Coated groundwood 112 107 33 140
Liquid packaging board 155 149 49 198
Other products 38 17 9 26
3,052 2,908 943 3,851
Containerboard, Packaging and
Recycling:
Containerboard 255 231 73 304
Packaging 2,687 2,699 845 3,544
Recycling 258 183 64 247
Bags 57 59 21 80
Other products 110 108 39 147
3,367 3,280 1,042 4,322
Real Estate and Related Assets 1,584 1,411 618 2,029
Corporate and Other 417 352 140 492
$16,779 $14,728 $5,145 $19,873
Contribution (charge) to earnings: Year
(in millions) Year-to-date Q4 Ended
Sept. Sept. Dec. Dec.
26, 28, 28, 28,
2004 2003 2003 2003
Timberlands (1) $810 $592 $185 $777
Wood Products (2) (3) (4) (5) 983 (52) 111 59
Pulp and Paper (6) 69 (15) (67) (82)
Containerboard, Packaging and Recycling
(7) (8) 168 230 32 262
Real Estate and Related Assets (9) 393 283 109 392
Corporate and Other (10) (11) (12) (188) (142) (34) (176)
$2,235 $896 $336 $1,232
(1) The 2004 third quarter includes a $271 million gain on the sale of
timberlands in Georgia and a $5 million gain from a tenure
reallocation agreement with the British Columbia government. The
2003 second quarter includes a $144 million gain on the sales of
timberlands in Washington state. The 2003 fourth quarter includes a
$61 million gain on the sale of timberlands in Tennessee and the
Carolinas.
(2) The first, second and third quarters of 2004 include charges of
$26 million, $34 million and $31 million, respectively, or $91
million year-to-date, for countervailing and anti-dumping duties and
related costs. 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.
(3) The first quarter of 2004 includes a $49 million charge for the
settlement of lawsuits involving the market for Pacific Northwest
alder logs. The second quarter of 2004 includes a $16 million charge
resulting from an adverse judgment in a lawsuit involving the market
for Pacific Northwest alder logs. The third quarter of 2004 includes
a $20 million gain due to the reduction of the reserve for hardboard
siding claims. The first quarter of 2003 includes a $79 million
charge for a lawsuit involving the market for Pacific Northwest alder
logs.
(4) The third quarter of 2004 includes a $20 million gain from a tenure
reallocation agreement with the British Columbia government.
(5) The first quarter of 2004 includes a credit of $2 million for the
reversal of closure costs accrued in prior years and a $33 million
gain on the sale of an oriented strand board mill in Slave Lake,
Alberta. The second quarter of 2004 includes a $5 million net loss on
the sale of facilities. The third quarter of 2004 includes a
$2 million net gain on the sale or closure of facilities. The 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.
(6) The 2004 second quarter includes a $2 million asset impairment charge
related to assets held for sale. 2003 second quarter includes
$3 million of closure costs. 2003 fourth quarter includes
$30 million of closure costs.
(7) The third quarter of 2003 includes a $23 million charge associated
with the settlement of a class action linerboard antitrust lawsuit.
(8) The first quarter of 2004 includes closure costs of $3 million. The
second quarter of 2004 includes a net gain of $1 million on the sales
of a facility and a joint venture investment. The third quarter of
2004 includes closure costs of $12 million, including a pension
termination charge of $9 million related to a closure that occurred
in a previous year. The 2003 second quarter includes the reversal of
an accrual for closure charges of $2 million. The 2003 third and
fourth quarters include closure costs of $17 million and $1 million,
respectively.
(9) The first quarter of 2004 includes a $22 million gain on a land sale.
The third quarter of 2004 includes a gain of $18 million on the sale
of a multi-family site. The 2003 first quarter includes gains of
$8 million for the sale of two office buildings and $10 for the sale
of an apartment complex. The 2003 second quarter includes a gain of
$12 million for the sale of commercial property. The 2003 fourth
quarter includes a $7 million gain on an acreage sale.
(10) The 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.
(11) The 2003 second quarter includes a $25 million gain for the
settlement of an insurance claim relating to the Cemwood litigation.
The 2003 fourth quarter includes an $8 million charge for the
settlement of litigation related to workers compensation claims.
(12) The first, second and third quarters of 2004 include net foreign
exchange gains (losses) of ($10) million, ($6) million and
$16 million, for a net zero gain (loss) year-to-date. 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. 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.
28, 30, 27, 29, 26, 28,
2004 2003 2004 2003 2004 2003
Timberlands (thousands):
Logs - cunits 1,044 984 954 1,006 904 987
Wood Products (millions):
Softwood lumber - board
feet 2,054 2,175 2,393 2,385 2,299 2,298
Plywood - square feet
(3/8") 642 664 668 697 672 688
Veneer - square feet
(3/8") 55 62 60 63 55 56
Composite panels -
square feet (3/4") 301 267 324 304 315 302
Oriented strand board -
square feet (3/8") 981 1,025 1,143 1,206 1,078 1,129
Hardwood lumber - board
feet 100 106 116 113 99 103
Logs - cunits (in
thousands) 170 170 279 230 237 189
Pulp and Paper (thousands):
Pulp - air-dry metric
tons 624 623 642 596 633 632
Paper - tons 741 737 718 690 737 707
Coated groundwood - tons 59 61 61 55 60 64
Liquid packaging board
- tons 66 60 72 67 69 64
Paper converting - tons 483 502 472 472 481 478
Containerboard, Packaging
and Recycling
(thousands):
Containerboard - tons 250 221 221 233 245 214
Packaging - MSF 18,146 17,752 18,917 18,577 18,287 18,545
Recycling - tons 678 593 701 566 645 538
Kraft bags and sacks -
tons 24 25 23 24 23 25
Real Estate and Related
Assets:
Single-family homes sold 1,506 1,289 1,564 1,321 1,313 1,239
Single-family homes
closed 1,065 1,010 1,216 1,003 1,345 1,182
Single-family homes sold
but not closed at end
of period 2,702 2,161 3,050 2,479 3,018 2,536
Year
Third party sales volumes: Year-to-date Q4 Ended
Sept. Sept. Dec. Dec.
26, 28, 28, 28,
2004 2003 2003 2003
Timberlands (thousands):
Logs - cunits 2,902 2,977 1,148 4,125
Wood Products (millions):
Softwood lumber - board feet 6,746 6,858 2,123 8,981
Plywood - square feet (3/8") 1,982 2,049 616 2,665
Veneer - square feet (3/8") 170 181 58 239
Composite panels - square feet
(3/4") 940 873 289 1,162
Oriented strand board - square
feet (3/8") 3,202 3,360 1,001 4,361
Hardwood lumber - board feet 315 322 105 427
Logs - cunits (in thousands) 686 589 210 799
Pulp and Paper (thousands):
Pulp - air-dry metric tons 1,899 1,851 628 2,479
Paper - tons 2,196 2,134 688 2,822
Coated groundwood - tons 180 180 54 234
Liquid packaging board - tons 207 191 65 256
Paper converting - tons 1,436 1,452 430 1,882
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 716 668 222 890
Packaging - MSF 55,350 54,874 17,867 72,741
Recycling - tons 2,024 1,697 593 2,290
Kraft bags and sacks - tons 70 74 26 100
Real Estate and Related Assets:
Single-family homes sold 4,383 3,849 1,156 5,005
Single-family homes closed 3,626 3,195 1,431 4,626
Single-family homes sold but not
closed at end of period 3,018 2,536 2,261 2,261
Total production volumes: Q1 Q2 Q3
March March June June Sept. Sept.
28, 30, 27, 29, 26, 28,
2004 2003 2004 2003 2004 2003
Timberlands (thousands):
Fee Depletion - cunits 2,265 2,555 2,404 2,479 2,191 2,223
Wood Products (millions):
Softwood lumber - board
feet 1,760 1,842 1,881 1,825 1,819 1,742
Plywood - square feet
(3/8") 422 478 405 412 405 414
Veneer - square feet
(3/8") (1) 585 593 609 536 592 536
Composite panels -
square feet (3/4") 268 231 281 252 272 253
Oriented strand board -
square feet (3/8") 1,031 1,011 1,056 1,051 1,022 1,061
Hardwood lumber - board
feet 89 98 96 93 84 93
Pulp and Paper (thousands):
Pulp - air-dry metric
tons 619 654 636 619 652 604
Paper - tons (2) 743 757 736 712 766 706
Coated groundwood - tons 55 62 61 55 62 61
Liquid packaging board
- tons 61 56 67 68 71 72
Paper converting - tons 490 516 470 479 500 472
Containerboard, Packaging
and Recycling (thousands):
Containerboard - tons(3) 1,503 1,429 1,598 1,568 1,604 1,512
Packaging - MSF 19,493 18,977 20,208 19,955 19,473 19,865
Recycling - tons (4) 1,607 1,528 1,707 1,644 1,703 1,507
Kraft bags and sacks -
tons 24 25 23 25 23 23
Total production volumes: Year
Year-to-date Q4 Ended
Sept. Sept. Dec. Dec.
26, 28, 28, 28,
2004 2003 2003 2003
Timberlands (thousands):
Fee Depletion - cunits 6,860 7,257 2,171 9,428
Wood Products (millions):
Softwood lumber - board feet 5,460 5,409 1,704 7,113
Plywood - square feet (3/8") 1,232 1,304 404 1,708
Veneer - square feet (3/8") (1) 1,786 1,665 534 2,199
Composite panels - square feet
(3/4") 821 736 252 988
Oriented strand board - square
feet (3/8") 3,109 3,123 1,047 4,170
Hardwood lumber - board feet 269 284 89 373
Pulp and Paper (thousands):
Pulp - air-dry metric tons 1,907 1,877 645 2,522
Paper - tons (2) 2,245 2,175 658 2,833
Coated groundwood - tons 178 178 61 239
Liquid packaging board - tons 199 196 65 261
Paper converting - tons 1,460 1,467 415 1,882
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (3) 4,705 4,509 1,494 6,003
Packaging - MSF 59,174 58,797 19,033 77,830
Recycling - tons (4) 5,017 4,679 1,537 6,216
Kraft bags and sacks - tons 70 73 25 98
(1) Veneer production represents lathe production and includes volumes
that are further processed into plywood and engineered lumber
products by company mills.
(2) Paper production includes unprocessed rolls and converted paper
volumes.
(3) Containerboard production represents machine production and includes
volumes that are further processed into packaging by company
facilities.
(4) Recycling production includes volumes processed in Weyerhaeuser
recycling facilities and brokered volumes.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March June Sept. Dec.
28, 27, 26, 28,
Assets 2004 2004 2004 2003
Weyerhaeuser
Current assets:
Cash and short-term investments $74 $725 $1,227 $171
Receivables, less allowances 1,701 1,860 1,804 1,484
Inventories 2,020 1,936 1,998 1,911
Prepaid expenses 471 488 527 455
Total current assets 4,266 5,009 5,556 4,021
Property and equipment 12,141 11,883 11,838 12,243
Construction in progress 251 279 242 403
Timber and timberlands at cost,
less fee stumpage charged
to disposals 4,279 4,244 4,193 4,287
Investments in and advances to
equity affiliates 603 592 632 603
Goodwill 3,232 3,218 3,241 3,237
Deferred pension and other assets 1,287 1,273 1,243 1,311
26,059 26,498 26,945 26,105
Real Estate and Related Assets 2,078 2,225 2,339 2,004
Total assets $28,137 $28,723 $29,284 $28,109
Liabilities and Shareholders' Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial
paper $103 $2 $3 $4
Current maturities of long-term
debt 1,129 445 490 90
Accounts payable 1,065 1,114 1,102 1,041
Accrued liabilities 1,212 1,323 1,337 1,390
Total current liabilities 3,509 2,884 2,932 2,525
Long-term debt 10,399 10,325 10,010 11,503
Deferred income taxes, pension,
other postretirement benefits
and other liabilities 5,694 5,789 5,880 5,671
19,602 18,998 18,822 19,699
Real Estate and Related Assets
Notes payable and commercial paper 78 -- -- 1
Long-term debt 887 872 869 893
Other liabilities 356 443 534 407
1,321 1,315 1,403 1,301
Total liabilities 20,923 20,313 20,225 21,000
Shareholders' interest 7,214 8,410 9,059 7,109
Total liabilities and shareholders'
interest $28,137 $28,723 $29,284 $28,109
STATEMENT OF CASH FLOWS Q1 Q2 Q3
March March June June Sept. Sept.
SELECTED INFORMATION (unaudited) 28, 30, 27, 29, 26, 28,
(in millions) 2004 2003 2004 2003 2004 2003
(Weyerhaeuser only, excludes Real
Estate & Related Assets)
Net cash from operations $(120) $(126) $807 $397 $586 $557
Cash paid for property and
equipment (79) (128) (80) (172) (93) (146)
Cash paid for timberlands
reforestation (12) (14) (6) (5) (5) (6)
Cash received from issuances of
debt -- 1 -- -- -- 12
Revolving credit facilities,
notes and commercial paper
borrowings, net 98 599 (100) (333) -- 166
Payments on debt (60) (251) (813) (14) (253) (509)
Proceeds from equity offering -- -- 954 -- -- --
STATEMENT OF CASH FLOWS Year
Year-to-date Q4 Ended
Sept. Sept. Dec. Dec.
SELECTED INFORMATION (unaudited) 26, 28, 28, 28,
(in millions) 2004 2003 2003 2003
(Weyerhaeuser only, excludes Real
Estate & Related Assets)
Net cash from operations $1,273 $828 $821 $1,649
Cash paid for property and
equipment (252) (446) (146) (592)
Cash paid for timberlands
reforestation (23) (25) (9) (34)
Cash received from issuances of
debt -- 13 31 44
Revolving credit facilities,
notes and commercial paper
borrowings, net (2) 432 (750) (318)
Payments on debt (1,126) (774) (50) (824)
Proceeds from equity offering 954 -- -- --
###
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 22, 2004