SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 21, 2005
----------------------------------
(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 January 21, 2005, Weyerhaeuser Company issued a press release stating the
following:
Weyerhaeuser Reports Net Earnings of $1.3 Billion for 2004,
Or $5.43 per Diluted Share, on Net Sales of $22.7 Billion
FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported net earnings
of $1.3 billion for 2004, or $5.43 per diluted share, on net sales of $22.7
billion. This compares with $277 million, or $1.25 per diluted share, on net
sales of $19.9 billion for the full year 2003.
Fourth quarter 2004 earnings were $199 million, or 82 cents per diluted share,
on net sales of $5.9 billion. Last year, Weyerhaeuser reported fourth quarter
net earnings of $92 million, or 41 cents per diluted share, on net sales of $5.1
billion.
Fourth quarter 2004 earnings include the following after-tax items:
* A charge of $34 million, or 14 cents per diluted share, for early
extinguishment of debt.
* A gain of $24 million, or 10 cents per diluted share, for gains on the sale of
facilities.
* A charge of $19 million, or 8 cents per diluted share, for the impairment of
assets in the company's European manufacturing operations.
* A charge of $16 million, or 7 cents per diluted share, recognized in
connection with a change in the method of estimating workers' compensation
liabilities.
* A charge of $15 million, or 6 cents per diluted share, for the net book value
of technology donated to a university.
Fourth quarter 2003 earnings included the following after-tax items:
* A charge of $29 million, or 14 cents per diluted share, for closure of
facilities.
* A charge of $17 million, or 8 cents per diluted share, for integration and
restructuring activities.
* A charge of $5 million, or 2 cents per diluted share, associated with the
settlement of litigation.
* A gain of $40 million, or 18 cents per diluted share, on the sale of
timberlands in Tennessee and the Carolinas.
Other significant fourth quarter 2004 financial matters include:
* The company, including Real Estate and Related Assets, reduced outstanding
debt by approximately $730 million. For the year, the company reduced
outstanding debt by approximately $1.9 billion and ended the year with
approximately $1.2 billion in cash and short-term investments and approximately
$10.6 billion in outstanding debt.
* Capital spending, excluding Real Estate and Related Assets, for 2004 was
approximately $504 million.
"Our strong performance for the year demonstrates that our focus on customers,
efficiency and financial management has created a competitive Weyerhaeuser that
can deliver strong shareholder returns," said Steven R. Rogel, chairman,
president and chief executive officer. "In the fourth quarter, however, some of
our businesses experienced higher than expected costs which hurt our results.
Some of these costs resulted from maintenance we had delayed until the fourth
quarter due to strong market demand earlier in the year. We also incurred
additional costs due to weather-related issues and the downtime we took to
balance orders with customer demand. As we look to the first quarter, we are
concerned about the impact unusually bad weather may have on our results."
SUMMARY OF FOURTH QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 4Q 2004 4Q 2003 Change
Net earnings $199 $92 $107
Earnings per diluted share $0.82 $0.41 $0.41
Net sales $5,886 $5,145 $741
SUMMARY OF ANNUAL FINANCIAL HIGHLIGHTS
Millions (except per share data) 2004 2003 Change
Net earnings $1,283 $277 $1,006
Earnings per diluted share $5.43 $1.25 $4.18
Net sale $22,665 $19,873 $2,792
SEGMENT RESULTS FOR FOURTH QUARTER
(Contributions to Pre-Tax Earnings)
Millions 4Q 2004 4Q 2003 Change
Timberlands $217 $185 $32
Wood Products $72 $111 ($39)
Pulp and Paper $35 ($67) $102
Containerboard, Packaging and Recycling $81 $32 $49
Real Estate and Related Assets $217 $109 $108
TIMBERLANDS
4Q 2004 3Q 2004 Change
Contribution to pre-tax earnings (millions) $217 $450 ($233)
Excluding the third quarter $271 million pre-tax gain on the sale of 270,000
acres of timberlands in Georgia, fourth quarter earnings increased $38 million
from the third quarter primarily because of sales of other non-strategic
timberlands that closed earlier than expected.
Weyerhaeuser expects first quarter market conditions to be similar to fourth
quarter.
WOOD PRODUCTS
4Q 2004 3Q 2004 Change
Contribution to pre-tax earnings (millions) $72 $362 ($290)
Fourth quarter earnings of $72 million include a $30 million pre-tax gain from
the sale of a mill site in Vancouver, British Columbia, and a $6 million pre-tax
gain from the sale of three mills in the Carolinas. Third quarter earnings
included 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.
As expected, fourth quarter prices were significantly lower than third quarter,
particularly in softwood lumber and structural panels. In addition, higher
delivered log costs in the South and Canada caused by weather-related
transportation disruptions and shortages affected the segment. Higher resin and
energy costs, and a stronger Canadian dollar also negatively affected the
segment. Volumes of key products declined approximately six percent due to
seasonal market conditions. The company also experienced extended maintenance at
several facilities, including its largest oriented strand board facility.
The segment incurred $27 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, compared with $31 million in the third quarter.
For the year, the company incurred $118 million in countervailing and
anti-dumping duties and related costs, compared with $97 million in 2003.
Weyerhaeuser expects first quarter earnings to increase from fourth quarter due
to improving prices and strong housing starts.
PULP AND PAPER
4Q 2004 3Q 2004 Change
Contribution to pre-tax earnings (millions) $35 $80 ($45)
Earnings declined during the quarter due to higher costs associated with planned
maintenance downtime, a stronger Canadian dollar, and higher than anticipated
energy costs. Papergrade pulp prices, which had declined early in the quarter,
began to recover. Fluff pulp prices improved slightly. Pricing for Fine Paper
products improved compared with third quarter.
Weyerhaeuser expects higher first quarter earnings compared with fourth quarter.
Prices for papergrade pulp, which began improving late in the quarter, should
continue to improve. Fine Paper prices are expected to hold steady.
CONTAINERBOARD, PACKAGING AND RECYCLING
4Q 2004 3Q 2004 Change
Contribution to pre-tax earnings (millions $81 $82 ($1)
Fourth quarter earnings were relatively unchanged from third quarter. Higher
fourth quarter containerboard and box prices offset lower box shipments and
higher energy and maintenance costs. During the fourth quarter, Weyerhaeuser
took 24,000 tons of market downtime.
The company expects first quarter earnings to be consistent with the fourth
quarter.
REAL ESTATE AND RELATED ASSETS
4Q 2004 3Q 2004 Change
Contribution to pre-tax earnings (millions) $217 $155 $62
Fourth quarter earnings benefited from increased single-family home closings,
and higher sales prices and margins. In addition, a $24 million net pre-tax gain
on land and lot sales contributed to earnings. Sales of single-family homes
declined seasonally during the quarter compared to the prior quarter.
The backlog of homes sold, but not closed, at the end of the fourth quarter is
near six months. Weyerhaeuser expects first quarter earnings to decline
seasonally from fourth quarter due to decreased single-family home closings in
the markets in which the company operates.
OTHER
The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern)
on January 21 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. 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 - 3158466) within North America and at 1-706-645-9291 (access code
- 3158466) from outside North America.
The call is being webcast and can be accessed through Weyerhaeuser's Internet
site at www.weyerhaeuser.com by clicking on the "Listen to our conference call"
link.
The webcast also is being distributed through the Thomson StreetEvents Network
to both institutional and individual investors. Individual investors can listen
to the call at www.fulldisclosure.com, Thomson/CCBN's individual investor
portal, powered by StreetEvents. Institutional investors can access the call via
Thomson's password-protected event management site, StreetEvents
(www.streetevents.com).
Weyerhaeuser Company, one of the world's largest integrated forest products
companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has
offices or operations in 19 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 first quarter of 2005; expected earnings
and performance of the company's business segments during the first quarter of
2005, demand and pricing for the company's products in the first quarter of
2005, non-strategic timberland sales in the first quarter of 2005, seasonal
decline in single-family home closings in the first quarter of 2005, effect of
Canadian exchange rate, 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; weather conditions; availability and pricing of raw materials,
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
Q4 Year ended
(in millions) Dec. Dec. Dec. Dec.
26, 28, 26, 28,
2004 2003 2004 2003
Net sales and revenues:
Weyerhaeuser (1) $4,975 $4,527 $20,170 $17,844
Real Estate and Related Assets 911 618 2,495 2,029
Total net sales and revenues 5,886 5,145 22,665 19,873
Costs and expenses:
Weyerhaeuser:
Costs of products sold 3,894 3,547 15,249 14,078
Depreciation, amortization and
fee stumpage 329 353 1,308 1,307
Selling expenses 120 122 488 457
General and administrative
expenses 250 238 955 950
Research and development
expenses 17 17 55 51
Taxes other than payroll and
income taxes 48 45 194 185
Charges for integration and
restructuring 3 25 39 103
Charges for closure of
facilities 0 45 14 127
Other operating costs,
net (2)(3) 4 (92) (258) (244)
4,665 4,300 18,044 17,014
Real Estate and Related Assets:
Costs and operating expenses 647 464 1,763 1,516
Depreciation and amortization 5 3 14 11
Selling expenses 37 31 125 107
General and administrative
expenses 26 20 81 63
Taxes other than payroll and
income taxes -- 1 2 3
Other operating costs, net 0 (4) (17) (9)
715 515 1,968 1,691
Total costs and expenses 5,380 4,815 20,012 18,705
Operating income 506 330 2,653 1,168
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (4) (241) (202) (838) (815)
Less interest capitalized 5 5 9 19
Equity in income (loss) of
affiliates 3 (1) 14 (6)
Interest income and other 9 2 24 17
Real Estate and Related Assets:
Interest expense incurred (14) (13) (57) (53)
Less interest capitalized 14 13 57 53
Equity in income of
unconsolidated entities 11 (3) 52 20
Interest income and other 10 8 31 33
Earnings before income taxes and
cumulative effect of a change in
accounting principle 303 139 1,945 436
Income taxes (104) (47) (662) (148)
Earnings before cumulative effect of
a change in accounting principle 199 92 1,283 288
Cumulative effect of a change in
accounting principle, net of
applicable taxes of $6 (5) -- -- -- (11)
Net earnings (loss) $199 $92 $1,283 $277
Basic net earnings (loss) per share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $0.82 $0.41 $5.45 $1.30
Cumulative effect of a change in
accounting principle -- -- -- (0.05)
Net earnings (loss) $0.82 $0.41 $5.45 $1.25
Diluted net earnings (loss) per
share:
Net earnings (loss) before
cumulative effect of a change
in accounting principle $0.82 $0.41 $5.43 $1.30
Cumulative effect of a change in
accounting principle -- -- -- (0.05)
Net earnings (loss) $0.82 $0.41 $5.43 $1.25
Dividends paid per share $0.40 $0.40 $1.60 $1.60
(1) The first, second, third and fourth quarters of 2004 include charges
of $26 million, $34 million and $31 million and $27 million,
respectively, or $118 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, third and fourth quarters of 2004 include net
foreign exchange gains (losses) of ($9) million, ($7) million, $16
million and $27 million, respectively, for a total year-to-date net gain
of $27 million. 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 fourth quarter includes a net gain of $36 million on the
sale of facilities, and charges of $29 million for the impairment of
assets in the company's European manufacturing operations, $24 million
recognized in connection with a change in the method of estimating
workers' compensation liabilities and $23 million for the net book value
of technology donated to a university.
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 and fourth quarters of 2004 include charges of $21 million
and $52 million, respectively, 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 90 89 100 92 89 82
Engineered lumber
products 298 254 396 308 418 329
Logs 23 25 38 33 32 19
Other products 239 207 288 256 289 244
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
Q4 Year ended
Dec. Dec. Dec. Dec.
26, 28, 26, 28,
2004 2003 2004 2003
Timberlands:
Logs $221 $199 $822 $730
Other products 105 61 280 264
326 260 1,102 994
Wood Products:
Softwood lumber 901 793 3,915 3,281
Plywood 208 227 929 784
Veneer 10 12 44 39
Composite panels 122 99 501 393
OSB 255 370 1,390 1,109
Hardwood lumber 86 87 365 350
Engineered lumber products 393 288 1,505 1,179
Logs 32 28 125 105
Other products 253 238 1,069 945
2,260 2,142 9,843 8,185
Pulp and Paper:
Pulp 380 342 1,471 1,305
Paper 570 510 2,226 2,182
Coated groundwood 44 33 156 140
Liquid packaging board 53 49 208 198
Other products 16 9 54 26
1,063 943 4,115 3,851
Containerboard, Packaging and
Recycling:
Containerboard 113 73 368 304
Packaging 897 845 3,584 3,544
Recycling 89 64 347 247
Bags 23 21 80 80
Other products 46 39 156 147
1,168 1,042 4,535 4,322
Real Estate and Related Assets 911 618 2,495 2,029
Corporate and Other 158 140 575 492
$5,886 $5,145 $22,665 $19,873
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
Q4 Year ended
(in millions) Dec. Dec. Dec. Dec.
26, 28, 26, 28,
2004 2003 2004 2003
Timberlands (1) $217 $185 $1,027 $777
Wood Products (2) (3) (4) (5) 72 111 1,055 59
Pulp and Paper (6) 35 (67) 104 (82)
Containerboard, Packaging and
Recycling (7) (8) 81 32 249 262
Real Estate and Related Assets (9) 217 109 610 392
Corporate and Other (10) (11) (12) (83) (34) (271) (176)
$539 $336 $2,774 $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, third and fourth quarters of 2004 include charges
of $26 million, $34 million and $31 million and $27 million,
respectively, or $118 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 fourth quarter of 2004 includes
charges of $3 million for the closure of facilities and a gain of
$36 million on the sale 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 fourth quarter of 2004 includes a credit of $3 million for the
reversal of closure costs accrued in prior years. 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 fourth quarter of 2004 includes a $24 million net
gain on land and lot sales. 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 fourth quarter of 2004 includes a $7 million gain for the
settlement of an insurance claim relating to the Cemwood litigation. 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 fourth quarter of 2004 includes charges of $29 million for the
impairment of assets in the company's European manufacturing operations,
$24 million recognized in connection with a change in the method of
estimating workers' compensation liabilities and $23 million for the net
book value of technology donated to a university.
(13) The first, second, third and fourth quarters of 2004 include net
foreign exchange gains (losses) of ($10) million, ($6) million, $16
million and $26 million, respectively, for a $26 million net gain
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 102 109 118 115 102 104
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
Q4 Year ended
Dec. 26, Dec. 28, Dec. 26, Dec. 28,
2004 2003 2004 2003
Timberlands (thousands):
Logs - cunits 1,018 1,148 3,920 4,125
Wood Products (millions):
Softwood lumber - board feet 2,144 2,123 8,890 8,981
Plywood - square feet (3/8") 647 616 2,629 2,665
Veneer - square feet (3/8") 55 58 225 239
Composite panels - square feet
(3/4") 294 289 1,234 1,162
Oriented strand board - square
feet (3/8") 1,011 1,001 4,213 4,361
Hardwood lumber - board feet 95 107 417 435
Logs - cunits (in thousands) 248 210 934 799
Pulp and Paper (thousands):
Pulp - air-dry metric tons 659 628 2,558 2,479
Paper - tons 680 688 2,876 2,822
Coated groundwood - tons 63 54 243 234
Liquid packaging board - tons 69 65 276 256
Paper converting - tons 458 430 1,894 1,882
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons 285 222 1,001 890
Packaging - MSF 17,535 17,867 72,885 72,741
Recycling - tons 670 593 2,694 2,290
Kraft bags and sacks - tons 25 26 95 100
Real Estate and Related Assets:
Single-family homes sold 992 1,156 5,375 5,005
Single-family homes closed 1,638 1,431 5,264 4,626
Single-family homes sold but not
closed at end of period 2,372 2,261 2,372 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 2,189 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
Q4 Year ended
Dec. 26, Dec. 28, Dec. 26, Dec. 28,
2004 2003 2004 2003
Timberlands (thousands):
Fee Depletion - cunits 2,155 2,171 9,013 9,428
Wood Products (millions):
Softwood lumber - board feet 1,727 1,704 7,187 7,113
Plywood - square feet (3/8") 396 404 1,628 1,708
Veneer - square feet (3/8") (1) 600 534 2,386 2,199
Composite panels - square
feet (3/4") 245 252 1,066 988
Oriented strand board - square
feet (3/8") 972 1,047 4,081 4,170
Hardwood lumber - board feet 80 89 349 373
Pulp and Paper (thousands):
Pulp - air-dry metric tons 639 645 2,546 2,522
Paper - tons (2) 761 658 3,006 2,833
Coated groundwood - tons 62 61 240 239
Liquid packaging board -
tons 67 65 266 261
Paper converting - tons 494 415 1,954 1,882
Containerboard, Packaging and
Recycling (thousands):
Containerboard - tons (3) 1,586 1,494 6,291 6,003
Packaging - MSF 18,648 19,033 77,822 77,830
Recycling - tons (4) 1,701 1,537 6,718 6,216
Kraft bags and sacks - tons 24 25 94 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. Dec.
28, 27, 26, 26, 28,
Assets 2004 2004 2004 2004 2003
Weyerhaeuser
Current assets:
Cash and short-term
investments $74 $725 $1,227 $1,044 $171
Receivables, less
allowances 1,701 1,860 1,804 1,604 1,484
Inventories 2,020 1,936 1,998 2,045 1,911
Prepaid expenses 471 488 527 600 455
Total current assets 4,266 5,009 5,556 5,293 4,021
Property and equipment 12,141 11,883 11,838 11,755 12,243
Construction in progress 251 279 242 269 403
Timber and timberlands at
cost, less fee stumpage
charged to disposals 4,279 4,244 4,193 4,212 4,287
Investments in and advances
to equity affiliates 603 592 632 583 603
Goodwill 3,232 3,218 3,241 3,244 3,237
Deferred pension and other
assets 1,287 1,273 1,243 1,223 1,311
26,059 26,498 26,945 26,579 26,105
Real Estate and Related Assets
Cash and short-term
investments 5 12 8 153 31
Receivables, less
allowances 52 42 52 43 64
Real estate and land for
sale and development 1,728 1,849 1,929 1,934 1,645
Other assets 293 322 350 342 264
2,078 2,225 2,339 2,472 2,004
Total assets $28,137 $28,723 $29,284 $29,051 $28,109
Liabilities and Shareholders'
Interest
Weyerhaeuser
Current liabilities:
Notes payable and
commercial paper $103 $2 $3 $3 $4
Current maturities of
long-term debt 1,129 445 490 489 90
Accounts payable 1,065 1,114 1,102 1,197 1,041
Accrued liabilities 1,212 1,323 1,337 1,444 1,390
Total current
liabilities 3,509 2,884 2,932 3,133 2,525
Long-term debt 10,399 10,325 10,010 9,277 11,503
Deferred income taxes 4,303 4,373 4,451 4,533 4,294
Deferred pension, other
postretirement benefits
and other liabilities 1,391 1,416 1,429 1,438 1,377
19,602 18,998 18,822 18,381 19,699
Real Estate and Related
Assets
Notes payable and
commercial paper 78 -- -- 2 1
Long-term debt 887 872 869 867 893
Other liabilities 356 443 534 546 407
1,321 1,315 1,403 1,415 1,301
Total liabilities 20,923 20,313 20,225 19,796 21,000
Shareholders' interest 7,214 8,410 9,059 9,255 7,109
Total liabilities and
shareholders' interest $28,137 $28,723 $29,284 $29,051 $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 $(89) $(107) $787 $379 $592 $581
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 67 580 (80) (315) (6) 142
Payments on debt (60) (251) (813) (14) (253) (509)
Proceeds from equity offering -- -- 954 -- -- --
Q4 Year ended
Dec. Dec. Dec. Dec.
26, 28, 26, 28,
(in millions) 2004 2003 2004 2003
(Weyerhaeuser only, excludes Real
Estate & Related Assets)
Net cash from operations $745 $778 $2,035 $1,631
Cash paid for property and
equipment (222) (146) (474) (592)
Cash paid for timberlands
reforestation (7) (9) (30) (34)
Cash received from issuances of
debt 1 31 1 44
Revolving credit facilities, notes
and commercial paper
borrowings, net 35 (707) 16 (300)
Payments on debt (742) (50) (1,868) (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: January 21, 2005