Edgar Filing: WEYERHAEUSER CO

e8vk

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

July 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 jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification Number)

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
	SIGNATURES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C., 20549

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 21, 2005, Weyerhaeuser Company issued a press release stating the following:

Weyerhaeuser Reports Second Quarter Net Earnings of $420 Million, or $1.71 Per Diluted Share, on Net Sales of $5.8 Billion

FEDERAL WAY, Wash. – Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $420 million, or $1.71 per diluted share, on net sales of $5.8 billion. This compares with $369 million, or $1.57 per diluted share, on net sales of $5.7 billion for the second quarter of 2004.

Second quarter 2005 earnings include the following after-tax items:

•		A gain of $110 million, or 45 cents per diluted share, related to the sale of the company’s operations in coastal British Columbia.

•		A charge of $44 million, or 18 cents per diluted share, related to a planned repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004.

•		A gain of $37 million, or 15 cents per diluted share, related to the recognition of a deferred gain from previous timberlands sales.

•		A charge of $12 million, or 5 cents per diluted share, related to litigation.

Second quarter 2004 earnings included the following after-tax items:

•		A charge of $14 million, or 6 cents per diluted share, for early extinguishment of debt.

•		A charge of $10 million, or 4 cents per diluted share, for an adverse judgment in a lawsuit.

“This year’s overall results are good, despite conditions that were more difficult than second quarter of last year,” said Steven R. Rogel, chairman, president and chief executive officer. “We’re pleased with this short-term performance, but we also recognize that many of our businesses face significant long-term challenges. We remain focused on finding ways to enhance the earnings performance of our entire portfolio, regardless of market conditions.”

SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS


Millions (except per share data)	2Q 2005		2Q 2004		Change
Net earnings	$	420	$	369	$	51
Earnings per diluted share	$	1.71	$	1.57	$	0.14
Net sales	$	5,838	$	5,728	$	110

SEGMENT RESULTS FOR SECOND QUARTER
(Contributions to Pre-Tax Earnings)


Millions	2Q 2005		2Q 2004		Change
Timberlands	$	210	$	201	$	9
Wood Products	$	204	$	448	$	(244	)
Cellulose Fiber and White Papers	$	16	$	14	$	2
Containerboard, Packaging and Recycling	$	99	$	62	$	37
Real Estate and Related Assets	$	156	$	118	$	38

DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT

TIMBERLANDS


	2Q 2005		1Q 2005		Change
Contribution to earnings (millions)	$	210	$	200	$	10

Second quarter earnings increased slightly from the first quarter due primarily to higher domestic log prices. Export prices were flat quarter to quarter. Fee harvest was down slightly.

Third quarter earnings are expected to be slightly lower than the second quarter, due to reduced harvest and sales activity from normal seasonal shutdowns. Export prices are expected to be modestly higher, but not enough to offset anticipated declines in domestic log prices.

WOOD PRODUCTS


	2Q 2005		1Q 2005		Change
Contribution to earnings (millions)	$	204	$	131	$	73

Earnings increased significantly from first quarter due primarily to higher shipment volumes for all core product lines. The overall effect of price on earnings quarter to quarter was minor, with higher prices for engineered wood products offset by lower prices in oriented strand board and plywood. Average lumber prices realized were flat. Second quarter earnings included $18 million in pre-tax charges related to litigation.

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 second quarter, compared with $22 million in the first quarter.

Prices for commodity building products are expected to drop seasonally in the third quarter. Shipment volumes are expected to be flat. As a result, third quarter earnings are expected to decline to a level closer to the first quarter.

CELLULOSE FIBER AND WHITE PAPERS (Formerly Pulp and Paper)


	2Q 2005		1Q 2005		Change
Contribution to earnings (millions)	$	16	$	19		($3	)

Segment earnings declined slightly from first quarter, due primarily to scheduled maintenance downtime and higher chip, chemical and freight costs.

Fluff pulp pricing improved during the quarter. Oversupply and weak demand in Europe resulted in lower papergrade pulp prices and shipment volumes. Fine paper prices improved in all major product lines and sales volume increased modestly.

Price declines are expected for papergrade pulp and fine paper product lines in the coming months. However, the company expects that minimal scheduled maintenance downtime will result in lower costs and higher third quarter earnings.

CONTAINERBOARD, PACKAGING AND RECYCLING


	2Q 2005		1Q 2005		Change
Contribution to earnings (millions)	$	99	$	48	$	51

Earnings increased over first quarter levels primarily due to a seasonal increase in box shipments and lower manufacturing costs at the containerboard mills. Lower manufacturing costs were due primarily to increased production in the second quarter when compared to first quarter. The first quarter included a pre-tax charge of $12 million associated with the settlement of a linerboard antitrust lawsuit and $4 million for costs associated with the closure of a packaging facility in Bowling Green, Ky.

The company expects third quarter earnings to decrease as both containerboard and box prices are currently under pressure.

REAL ESTATE AND RELATED ASSETS


	2Q 2005		1Q 2005		Change
Contribution to earnings (millions)	$	156	$	183		($27	)

Earnings declined as expected from the prior quarter as contributions from land sales declined $36 million. Single-family home closings and average prices increased. The backlog of homes sold, but not closed, represents approximately six months’ sales.

The company’s key real estate markets continue to be strong and Weyerhaeuser expects single-family closings to remain steady in the third quarter.

OTHER

The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 21 to discuss the second 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 48 hours following completion of the live call and can be accessed at 1-800-642-1687 (access code: 7576930) within North America and at 1-706-645-9291 (access code: 7576930) from outside North America.

The call may also be accessed through Weyerhaeuser’s Internet site at
http://investor.weyerhaeuser.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 third quarter; expected earnings and performance of the company’s business segments during the third quarter, demand and pricing for the company’s products in the third quarter, supply, raw material and freight costs, reduced timber harvest in the third quarter, maintenance downtime, and land and new home sales. 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						Year-to-date						Q3			Q4			Year ended
(in millions)	March 27,			March 28,			June 26,			June 27,			June 26,			June 27,			Sept. 26,			Dec. 26,			Dec. 26,
	2005			2004			2005			2004			2005			2004			2004			2004			2004
Net sales and revenues:
Weyerhaeuser ⁽¹⁾	$	4,749		$	4,442		$	5,190		$	5,204		$	9,939		$	9,646		$	5,088		$	4,804		$	19,538
Real Estate and Related Assets		655			469			648			524			1,303			993			591			911			2,495

Total net sales and revenues		5,404			4,911			5,838			5,728			11,242			10,639			5,679			5,715			22,033

Costs and expenses:
Weyerhaeuser:
Costs of products sold		3,652			3,432			3,974			3,790			7,626			7,222			3,758			3,735			14,715
Depreciation, amortization and fee stumpage		325			317			326			318			651			635			316			320			1,271
Selling expenses		118			120			119			122			237			242			123			119			484
General and administrative expenses		223			239			218			233			441			472			226			247			945
Research and development expenses		14			12			12			13			26			25			13			17			55
Taxes other than payroll and income taxes		46			48			48			47			94			95			51			48			194
Charges for integration and restructuring		5			15			4			13			9			28			8			3			39
Charges for closure of facilities		5			4			3			—			8			4			13			0			17
Other operating costs, net^{(2) (3)}		9			17			(40	)		43			(31	)		60			(300	)		36			(204	)

		4,397			4,204			4,664			4,579			9,061			8,783			4,208			4,525			17,516

Real Estate and Related Assets:
Costs and operating expenses		426			321			441			381			867			702			414			647			1,763
Depreciation and amortization		3			2			4			4			7			6			3			5			14
Selling expenses		33			27			36			30			69			57			31			37			125
General and administrative expenses		24			17			25			19			49			36			19			26			81
Taxes other than payroll and income taxes		1			1			—			—			1			1			1			0			2
Other operating costs, net		—			1			(2	)		1			(2	)		2			(19	)		0			(17	)

		487			369			504			435			991			804			449			715			1,968

Total costs and expenses		4,884			4,573			5,168			5,014			10,052			9,587			4,657			5,240			19,484

Operating income		520			338			670			714			1,190			1,052			1,022			475			2,549
Interest expense and other:
Weyerhaeuser:
Interest expense incurred ⁽⁴⁾		(196	)		(195	)		(179	)		(218	)		(375	)		(413	)		(184	)		(241	)		(838	)
Less interest capitalized		—			3			2			1			2			4			0			5			9
Equity in income (loss) of affiliates		—			—			4			7			4			7			4			3			14
Interest income and other		27			3			20			5			47			8			7			9			24
Real Estate and Related Assets:
Interest expense incurred		(14	)		(15	)		(14	)		(14	)		(28	)		(29	)		(14	)		(14	)		(57	)
Less interest capitalized		14			15			14			14			28			29			14			14			57
Equity in income of unconsolidated entities		10			9			13			20			23			29			12			11			52
Interest income and other		5			11			(2	)		9			3			20			1			10			31

Earnings before income taxes		366			169			528			538			894			707			862			272			1,841
Income taxes ⁽⁵⁾		(128	)		(57	)		(229	)		(183	)		(357	)		(240	)		(293	)		(94	)		(627	)

Earnings from continuing operations		238			112			299			355			537			467			569			178			1,214
Earnings from discontinued operations, net of taxes ⁽⁶⁾		1			9			121			14			122			23			25			21			69

Net earnings	$	239		$	121		$	420		$	369		$	659		$	490		$	594		$	199		$	1,283

Basic net earnings per share:
Continuing operations	$	0.98		$	0.50		$	1.23		$	1.51		$	2.20		$	2.04		$	2.36		$	0.73		$	5.16
Discontinued operations		—			0.04			0.49			0.06			0.50			0.10			0.10			0.09			0.29

Net earnings per share	$	0.98		$	0.54		$	1.72		$	1.57		$	2.70		$	2.14		$	2.46		$	0.82		$	5.45

Diluted net earnings per share:
Continuing operations	$	0.98		$	0.50		$	1.22		$	1.51		$	2.19		$	2.03		$	2.35		$	0.73		$	5.14
Discontinued operations		—			0.04			0.49			0.06			0.50			0.10			0.10			0.09			0.29

Net earnings per share	$	0.98		$	0.54		$	1.71		$	1.57		$	2.69		$	2.13		$	2.45		$	0.82		$	5.43

Dividends paid per share	$	0.40		$	0.40		$	0.50		$	0.40		$	0.90		$	0.80		$	0.40		$	0.40		$	1.60

Weighted average shares outstanding (in thousands)
Basic		242,863			223,728			244,702			234,494			243,782			229,111			241,621			242,114			235,453
Diluted		244,185			225,072			245,881			235,475			244,959			230,242			242,649			243,472			236,546

(1)		The first and second quarters of 2005 include charges of $22 million and $27 million, respectively, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million, $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti-dumping duties and related costs.

(2)		The first and second quarters of 2005 include net foreign exchange gains (losses) of $13 million and ($13) million, respectively, for a year-to-date net effect of zero. 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. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates.

(3)		The first quarter of 2005 includes a $12 million charge for the settlement of a linerboard antitrust lawsuit. The second quarter of 2005 includes an $18 million charge related to alder litigation and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. 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 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 $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 of 2004 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.

(4)		The second and fourth quarters of 2004 include charges of $21 million and $52 million, respectively, for the early extinguishment of debt.

(5)		The second quarter of 2005 includes a charge of $44 million related to a planned repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004.

(6)		Includes the net operating results of the company’s operations in coastal British Columbia. The second quarter of 2005 also includes a gain of $110 million, including a tax benefit of $46 million, related to the sale of these operations.

PRELIMINARY RESULTS — SUBJECT TO AUDIT


WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions):	Q1						Q2						Year-to-date						Q3			Q4			Year ended
	March 27,			March 28,			June 26,			June 27,			June 26,			June 27,			Sept. 26,			Dec. 26,			Dec. 26,
	2005			2004			2005			2004			2005			2004			2004			2004			2004
Timberlands:
Logs	$	182		$	193		$	195		$	211		$	377		$	404		$	197		$	221		$	822
Other products		82			58			63			66			145			124			51			105			280

		264			251			258			277			522			528			248			326			1,102

Wood Products:
Softwood lumber		892			819			1,032			1,106			1,924			1,925			1,089			901			3,915
Plywood		183			221			196			263			379			484			237			208			929
Veneer		13			11			10			12			23			23			11			10			44
Composite panels		120			108			132			133			252			241			138			122			501
OSB		288			338			306			456			594			794			341			255			1,390
Hardwood lumber		94			90			102			100			196			190			89			86			365
Engineered I-Joists		160			134			213			178			373			312			189			177			678
Engineered Solid Section		190			148			241			194			431			342			203			189			734
Logs		27			23			24			38			51			61			32			32			125
Other products		272			255			339			312			611			567			315			280			1,162

		2,239			2,147			2,595			2,792			4,834			4,939			2,644			2,260			9,843

Cellulose Fiber and White Papers:
Pulp		376			339			355			371			731			710			381			380			1,471
Paper		599			535			611			538			1,210			1,073			583			570			2,226
Coated groundwood		42			36			47			37			89			73			39			44			156
Liquid packaging board		47			49			52			53			99			102			53			53			208
Other products		14			10			12			13			26			23			15			16			54

		1,078			969			1,077			1,012			2,155			1,981			1,071			1,063			4,115

Containerboard, Packaging and Recycling:
Containerboard		117			81			101			80			218			161			94			113			368
Packaging		898			853			969			918			1,867			1,771			916			897			3,584
Recycling		92			80			92			91			184			171			87			89			347
Bags		22			19			21			18			43			37			20			23			80
Other products		34			33			40			34			74			67			43			46			156

		1,163			1,066			1,223			1,141			2,386			2,207			1,160			1,168			4,535

Real Estate and Related Assets		655			469			648			524			1,303			993			591			911			2,495
Corporate and Other		149			135			151			147			300			282			135			158			575
Less sales of discontinued operations		(144	)		(126	)		(114	)		(165	)		(258	)		(291	)		(170	)		(171	)		(632	)

	$	5,404		$	4,911		$	5,838		$	5,728		$	11,242		$	10,639		$	5,679		$	5,715		$	22,033


Contribution (charge) to earnings:	Q1						Q2					Year-to-date					Q3			Q4			Year ended
(in millions)	March 27,			March 28,			June 26,		June 27,			June 26,		June 27,			Sept. 26,			Dec. 26,			Dec. 26,
	2005			2004			2005		2004			2005		2004			2004			2004			2004
Timberlands ^{(1) (2)}	$	200		$	159		$	210	$	201		$	410	$	360		$	450		$	217		$	1,027
Wood Products ^{(3) (4) (5) (6)}		131			173			204		448			335		621			362			72			1,055
Cellulose Fiber and White Papers ⁽⁷⁾		19			(25	)		16		14			35		(11	)		80			35			104
Containerboard, Packaging and Recycling ^{(8) (9)}		48			24			99		62			147		86			82			81			249
Real Estate and Related Assets ⁽¹⁰⁾		183			120			156		118			339		238			155			217			610
Corporate and Other ^{(11) (12) (13)}		(17	)		(76	)		99		(67	)		82		(143	)		(45	)		(83	)		(271	)

	$	564		$	375		$	784	$	776		$	1,348	$	1,151		$	1,084		$	539		$	2,774

(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.

(2)		The first quarter of 2005 includes $3 million of charges for the closure of facilities.

(3)		The first and second quarters of 2005 include charges of $22 million and $27 million, respectively, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million, $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti-dumping duties and related costs.

(4)		The second quarter of 2005 includes an $18 million charge related to alder litigation. 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.

(5)		The second quarter of 2005 includes a $6 million gain related to a tenure reallocation agreement with the British Columbia government. The third quarter of 2004 includes a $20 million gain from a tenure reallocation agreement with the British Columbia government.

(6)		The first and second quarters of 2005 include charges of $1 million and $1 million, respectively, associated with the sale or closure of facilities. 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.

(7)		The 2004 second quarter includes a $2 million asset impairment charge related to assets held for sale.

(8)		The first quarter of 2005 includes a $12 million charge associated with the settlement of a linerboard antitrust lawsuit.

(9)		The first and second quarters of 2005 include charges of $4 million and $2 million, respectively, for the closure of facilities. 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.

(10)		The first and second quarters of 2005 include net gains on land and lot sales of $57 million and $21 million, respectively. 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.

(11)		The second quarter of 2005 includes a $64 million pretax gain on the sale of the company’s operations in coastal British Columbia and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The fourth quarter of 2004 includes a $7 million gain for the settlement of an insurance claim relating to the Cemwood litigation.

(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 and second quarters of 2005 include net foreign exchange gains (losses) of $13 million and ($13) million, respectivley, for a year-to-date net effect of zero. 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, respectivley, for a $26 million net gain year-to-date. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates.

PRELIMINARY RESULTS — SUBJECT TO AUDIT


WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes:	Q1				Q2				Year-to-date				Q3		Q4		Year ended
	March 27,		March 28,		June 26,		June 27,		June 26,		June 27,		Sept. 26,		Dec. 26,		Dec. 26,
	2005		2004		2005		2004		2005		2004		2004		2004		2004
Timberlands (thousands):
Logs — cunits		864		1,044		863		954		1,727		1,998		904		1,018		3,920
Wood Products (millions):
Softwood lumber — board feet		2,057		2,054		2,355		2,393		4,412		4,447		2,299		2,144		8,890
Plywood — square feet (3/8”)		537		642		600		668		1,137		1,310		672		647		2,629
Veneer — square feet (3/8”)		60		55		59		60		119		115		55		55		225
Composite panels — square feet (3/4”)		299		301		317		324		616		625		315		294		1,234
Oriented strand board — square feet (3/8”)		908		981		1,041		1,143		1,949		2,124		1,078		1,011		4,213
Hardwood lumber — board feet		102		103		114		117		216		220		102		95		417
Engineered I-Joists — LF		108		108		138		132		246		240		133		123		496
Engineered Solid Section — CF		9		8		10		10		19		18		10		9		37
Logs — cunits (in thousands)		187		170		177		279		364		449		237		248		934
Cellulose Fiber and White Papers (thousands):
Pulp — air-dry metric tons		629		624		587		642		1,216		1,266		633		659		2,558
Paper — tons		736		741		742		718		1,478		1,459		737		680		2,876
Coated groundwood — tons		58		59		62		61		120		120		60		63		243
Liquid packaging board — tons		60		66		65		72		125		138		69		69		276
Paper converting — tons		475		467		494		459		969		926		470		443		1,839
Containerboard, Packaging and Recycling (thousands):
Containerboard — tons		295		250		259		221		554		471		245		285		1,001
Packaging — MSF		17,354		18,146		18,600		18,917		35,954		37,063		18,287		17,535		72,885
Recycling — tons		692		678		695		701		1,387		1,379		645		670		2,694
Kraft bags and sacks — tons		23		24		22		23		45		47		23		25		95
Real Estate and Related Assets:
Single-family homes sold		1,378		1,506		1,525		1,564		2,903		3,070		1,313		992		5,375
Single-family homes closed		1,189		1,065		1,279		1,216		2,468		2,281		1,345		1,638		5,264
Single-family homes sold but not closed at end of period		2,561		2,702		2,807		3,050		2,807		3,050		3,018		2,372		2,372


Total production volumes:	Q1				Q2				Year-to-date				Q3		Q4		Year ended
	March 27,		March 28,		June 26,		June 27,		June 26,		June 27,		Sept. 26,		Dec. 26,		Dec. 26,
	2005		2004		2005		2004		2005		2004		2004		2004		2004
Timberlands (thousands):
Fee Depletion — cunits		2,248		2,265		2,231		2,404		4,479		4,669		2,189		2,155		9,013
Wood Products (millions):
Softwood lumber — board feet		1,821		1,760		1,869		1,881		3,690		3,641		1,819		1,727		7,187
Plywood — square feet (3/8”)		303		422		302		405		605		827		405		396		1,628
Veneer — square feet (3/8”) ⁽¹⁾		517		585		529		609		1,046		1,194		592		600		2,386
Composite panels — square feet (3/4”)		267		268		282		281		549		549		272		245		1,066
Oriented strand board — square feet (3/8”)		1,007		1,031		1,019		1,056		2,026		2,087		1,022		972		4,081
Hardwood lumber — board feet		92		89		96		96		188		185		84		80		349
Engineered I-Joists — LF		133		110		132		124		265		234		136		134		504
Engineered Solid Section — CF		11		9		10		11		21		20		11		10		42
Cellulose Fiber and White Papers (thousands):
Pulp — air-dry metric tons		621		619		614		636		1,235		1,255		652		639		2,546
Paper — tons⁽²⁾		763		743		752		736		1,515		1,479		766		761		3,006
Coated groundwood — tons		55		55		59		61		114		116		62		62		240
Liquid packaging board — tons		60		61		64		67		124		128		71		67		266
Paper converting — tons		475		460		487		442		962		902		471		465		1,838
Containerboard, Packaging and Recycling (thousands):
Containerboard — tons ⁽³⁾		1,503		1,503		1,581		1,598		3,084		3,101		1,604		1,586		6,291
Packaging — MSF		18,628		19,493		19,915		20,208		38,543		39,701		19,473		18,648		77,822
Recycling — tons ⁽⁴⁾		1,624		1,607		1,673		1,707		3,297		3,314		1,703		1,701		6,718
Kraft bags and sacks — tons		23		24		22		23		45		47		23		24		94

(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 and kraft bags and sacks by company facilities.

(4)		Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.

PRELIMINARY RESULTS — SUBJECT TO AUDIT


WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
	March 27,		June 26,		Dec. 26,
Assets	2005		2005		2004
Weyerhaeuser
Current assets:
Cash and short-term investments	$	402	$	1,704	$	1,044
Receivables, less allowances		1,840		2,008		1,558
Inventories		2,122		2,018		1,891
Prepaid expenses		634		612		592
Assets of business held for sale		1,119		—		1,129

Total current assets		6,117		6,342		6,214
Property and equipment		11,447		11,175		11,672
Construction in progress		324		451		268
Timber and timberlands at cost, less fee stumpage charged to disposals		3,712		3,709		3,733
Investments in and advances to equity affiliates		491		495		489
Goodwill		2,997		2,977		2,996
Deferred pension and other assets		1,197		1,249		1,201
Restricted assets held by special purpose entitites		914		916		909

		27,199		27,314		27,482

Real Estate and Related Assets
Cash and short-term investments		5		11		153
Receivables, less allowances		60		57		43
Real estate and land for sale and development		2,083		2,333		1,947
Other assets		323		278		329

		2,471		2,679		2,472

Total assets	$	29,670	$	29,993	$	29,954

Liabilities and Shareholders’ Interest
Weyerhaeuser
Current liabilities:
Notes payable and commercial paper	$	2	$	2	$	3
Current maturities of long-term debt		96		75		489
Accounts payable		1,150		1,225		1,159
Accrued liabilities		1,313		1,655		1,432
Liabilities of business held for sale		308		—		297

Total current liabilities		2,869		2,957		3,380
Long-term debt		9,263		9,076		9,277
Deferred income taxes		4,315		4,320		4,312
Deferred pension, other postretirement benefits and other liabilities		1,494		1,560		1,500
Liabilities not owned, consolidated under FIN 46R		820		784		815

		18,761		18,697		19,284

Real Estate and Related Assets
Notes payable and commercial paper		2		5		2
Long-term debt		869		854		867
Other liabilities		533		588		546

		1,404		1,447		1,415

Total liabilities		20,165		20,144		20,699
Shareholders’ interest		9,505		9,849		9,255

Total liabilities and shareholders’ interest	$	29,670	$	29,993	$	29,954


STATEMENT OF CASH FLOWS	Q1						Q2						Year-to-date						Q3			Q4			Year ended
SELECTED INFORMATION (unaudited)	March 27,			March 28,			June 26,			June 27,			June 26,			June 27,			Sept. 26,			Dec. 26,			Dec. 26,
(in millions)	2005			2004			2005			2004			2005			2004			2004			2004			2004
(Weyerhaeuser only, excludes Real Estate & Related Assets)
Net cash from operations	$	(203	)	$	(89	)	$	713		$	787			510		$	698		$	592		$	745		$	2,035
Cash paid for property and equipment		(117	)		(79	)		(196	)		(80	)		(313	)		(159	)		(93	)		(222	)		(474	)
Cash paid for timberlands reforestation		(12	)		(12	)		(6	)		(6	)		(18	)		(18	)		(5	)		(7	)		(30	)
Cash received from issuances of debt		—			—			1			—			1			—			—			1			1
Revolving credit facilities, notes and commercial paper borrowings, net		19			67			23			(80	)		42			(13	)		(6	)		35			16
Payments on debt		(404	)		(60	)		(206	)		(813	)		(610	)		(873	)		(253	)		(742	)		(1,868	)
Proceeds from equity offering		—			—			—			954			—			954			—			—			954
Proceeds from the sale of BC Coastal operations		—			—			1,107			—			1,107			—			—			—			—

PRELIMINARY RESULTS — SUBJECT TO AUDIT

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: July 21, 2005

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents