-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OEgvtO7SnNo73fYPrsOnIgh9f9jHbhpe0bgZGtUc3tjab0Z4gGsX09wrwwCfPH7m RoGF9jY3M9N85dqFezbHWg== 0000106535-04-000004.txt : 20040823 0000106535-04-000004.hdr.sgml : 20040823 20040423151321 ACCESSION NUMBER: 0000106535-04-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040423 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20040423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WEYERHAEUSER CO CENTRAL INDEX KEY: 0000106535 STANDARD INDUSTRIAL CLASSIFICATION: LUMBER & WOOD PRODUCTS (NO FURNITURE) [2400] IRS NUMBER: 910470860 STATE OF INCORPORATION: WA FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04825 FILM NUMBER: 04750856 BUSINESS ADDRESS: STREET 1: 33663 WEYERHAEUSER WAY SOUTH CITY: FEDERAL WAY STATE: WA ZIP: 98003 BUSINESS PHONE: 2539242345 MAIL ADDRESS: STREET 1: 33663 WEYERHAEUSER WAY SOUTH CITY: FEDERAL WAY STATE: WA ZIP: 98003 8-K 1 f8kapr23.txt 8K 2004 FIRST QUARTER 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 April 23, 2004 ---------------------------------- (Date of earliest event report) WEYERHAEUSER COMPANY (Exact name of registrant as specified in charter) Washington 1-4825 91-0470860 ---------- ------ ---------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation or Number) organization) Federal Way, Washington 98063-9777 (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: (253) 924-2345 TABLE OF CONTENTS Item 12. Results of Operations and Financial Condition --------------------------------- SIGNATURES ---------- Item 12. RESULTS OF OPERATION AND FINANCIAL CONDITION On April 23, 2004, Weyerhaeuser Company issued a press release as follows: FEDERAL WAY, Wash.,Weyerhaeuser Company (NYSE: WY) today reported first quarter 2004 net earnings of $121 million, or 54 cents per share, on net sales of $5 billion. This compares with a loss of $54 million, or 24 cents per share, on net sales of $4.6 billion for the first quarter of 2003. First quarter 2004 earnings include the following after-tax items: -- A charge of $32 million, or 14 cents per share, associated with the settlement of litigation. -- A charge of $10 million, or 4 cents per share, for integration and restructuring activities. -- A gain of $22 million, or 10 cents per share, on the sale of the Slave Lake, Alberta, oriented strand board mill. First quarter 2003 earnings included the following after-tax items: -- A charge of $52 million, or 23 cents per share, for a lawsuit involving Pacific Northwest alder logs. -- A charge of $19 million, or 8 cents per share, associated with integration and restructuring activities. -- A charge of $15 million, or 7 cents per share, for the closure of facilities. -- A charge of $11 million, or 5 cents per share, for the cumulative effect of a required change in the accounting principle relating to asset retirement obligations. Other significant 2004 first quarter financial matters: -- Weyerhaeuser Company debt was $11.6 billion at quarter end. Total company debt, which includes Real Estate and Related Assets, was approximately $12.6 billion at the end of the quarter. -- Capital spending, excluding Real Estate and Related Assets, for the first quarter was approximately $90 million. "In addition to the continued strength of single-family housing starts and the wood products market, we are seeing improvement in our pulp, paper and containerboard markets," said Steven R. Rogel, chairman, president and chief executive officer. "The improved efficiencies of our operations are becoming more apparent due to the combination of strong market conditions, synergies from the Willamette acquisition and asset rationalization. Many of our operations are running at record production rates and we're maintaining strong order files. However, we are experiencing transportation disruptions in truck, rail and ocean service that are continuing into the second quarter and are making it increasingly challenging to meet customer needs." SUMMARY OF FIRST QUARTER FINANCIAL HIGHLIGHTS Millions (except per share data) 1Q 2004 1Q 2003 Change Net earnings (loss) $121 ($54) $175 Basic and diluted earnings per share (loss) $0.54 ($0.24) $0.78 Weighted average shares outstanding (in thousands) Basic 223,728 221,285 2,443 Diluted 225,072 221,285 3,787 Net sales $5,037 $4,614 $423 SEGMENT RESULTS FOR FIRST QUARTER (Contributions to Pre-Tax Earnings) Millions 1Q 2004 1Q 2003 Change Timberlands $159 $149 $10 Wood Products $173 ($150) $323 Pulp and Paper ($25) $10 ($35) Containerboard Packaging and Recycling $24 $80 ($56) Real Estate and Related Assets $120 $95 $25 TIMBERLANDS 1Q 2004 4Q 2003 Change Contribution to earnings (millions) $159 $185 ($26) Fourth quarter 2003 earnings include a pre-tax gain of $61 million on the sale of nonstrategic timberlands in Tennessee and the Carolinas. Most of the improvement from the fourth quarter occurred in the West due to increased prices for domestic and export logs, and reduced logging costs in addition to slightly higher fee harvest from all operating regions. Second quarter earnings are expected to be slightly higher than the first quarter due to higher export and domestic log sales volumes, and seasonally higher fee harvest. WOOD PRODUCTS 1Q 2004 4Q 2003 Change Contribution to earnings (millions) $173 $111 $62 First quarter earnings include a $33 million pre-tax gain on the sale of the company's oriented strand board mill at Slave Lake, Alberta, and a pre-tax charge of $49 million for the settlement of litigation. Fourth quarter 2003 results include a pre-tax charge of $14 million for facility closure costs. Continued strength in the housing market prompted an early quarter recovery in prices. Quarter to quarter improvement in prices for softwood lumber and engineered lumber contributed to the increase in earnings. The segment incurred $26 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the first quarter. This compares to $22 million in the fourth quarter. Second quarter results are expected to be significantly higher than first quarter due to continued high demand and the resulting effects on prices for all wood products. PULP AND PAPER 1Q 2004 4Q 2003 Change Contribution (charge) to earnings (millions) ($25) ($67) $42 Fourth quarter 2003 results include a pre-tax charge of $30 million associated with the closure of a paper machine. In the first quarter, paper grade pulp prices continued to increase. Paper shipments increased significantly from fourth quarter levels primarily due to a general improvement in U.S. economic activity and lower paper imports. Market downtime was eliminated in the first quarter compared with 96,000 tons in the fourth quarter. These factors helped improve operating results during the first quarter. The company expects the segment to return to profitability in the second quarter. Prices for pulp and paper are expected to increase in the second quarter. Shipments are expected to remain stable for both of these product lines. CONTAINERBOARD PACKAGING AND RECYCLING 1Q 2004 4Q 2003 Change Contribution to earnings (millions) $24 $32 ($8) Higher costs for old corrugated containers (OCC) and lower prices for boxes resulted in lower first quarter earnings. First quarter market downtime was 32,000 tons compared with 71,000 tons in the fourth quarter. Box shipments increased both seasonally and compared with the first quarter last year. Improving economic conditions are expected to result in greater demand for boxes in the second quarter. As a result, the company expects higher second quarter earnings due primarily to increasing prices and shipments, partially offset by higher OCC costs. REAL ESTATE AND RELATED ASSETS 1Q 2004 4Q 2003 Change Contribution to earnings (millions) $120 $109 $11 First quarter earnings include a $22 million pre-tax gain on an acreage sale. Fourth quarter 2003 earnings include a $7 million pre-tax gain on an acreage sale. Housing sales remain strong with a backlog of homes sold, but not closed, exceeding six months. Second quarter earnings from new home sales are expected to be comparable to the first quarter. No major acreage sales are planned in the second quarter. OTHER The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 23 to discuss the first 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 -- 6409071) within North America and at 1-706-645-9291 (access code -- 6409071). The call may also be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link. Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 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," "plans," "continuing" and "maintaining" 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 improvement in our pulp, paper and containerboard markets, strong order files, transportation disruptions, higher export and domestic log sales volumes and seasonally higher fee harvest in the second quarter 2004, increased demand and pricing for wood products in second quarter 2004, profitability, price increases and stable demand for pulp and paper in the second quarter 2004, greater demand for boxes in second quarter 2004, increasing prices, shipments and OCC costs in the containerboard markets; continuing strong housing demands, absence of acreage sales in the real estate markets during second quarter 2004, increasing productivity in the manufacturing system, management of asset base, the company's markets in the second quarter 2004; and earnings and performance of the company's business segments during the second quarter 2004. 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; raw material prices; transportation disruptions; performance of the company's manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; and legal proceedings. The company is also a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan, and by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar; and restrictions on international trade or tariffs imposed on imports, including the countervailing and dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings. CONTACT: Media, Bruce Amundson, +1-253-924-3047, or Analysts, Kathryn McAuley, +1-253-924-2058, both of Weyerhaeuser Company. WEYERHAEUSER COMPANY STATISTICAL INFORMATION (unaudited) CONSOLIDATED EARNINGS Q1 Q2 Q3 Q4 YTD (in millions) March March June Sept. Dec. Dec. 28, 30, 29, 28, 28, 28, 2004 2003 2003 2003 2003 2003 Net sales and revenues: Weyerhaeuser (1) $4,568 $4,169 $4,498 $4,650 $4,527 $17,844 Real Estate and Related Assets 469 445 432 534 618 2,029 Total net sales and revenues 5,037 4,614 4,930 5,184 5,145 19,873 Costs and expenses: Weyerhaeuser: Costs of products sold 3,539 3,322 3,611 3,598 3,547 14,078 Depreciation, amortization and fee stumpage 325 321 313 320 353 1,307 Selling expenses 121 107 111 117 122 457 General and administrative expenses 241 231 232 249 238 950 Research and development expenses 12 12 12 10 17 51 Taxes other than payroll and income taxes 48 47 48 45 45 185 Charges for integration and restructuring 15 29 25 24 25 103 Charges for closure of facilities 1 22 12 48 45 127 Other operating costs, net (2) (3) 14 37 (205) 16 (92) (244) 4,316 4,128 4,159 4,427 4,300 17,014 Real Estate and Related Assets: Costs and operating expenses 321 330 316 406 464 1,516 Depreciation and amortization 2 3 2 3 3 11 Selling expenses 27 24 25 27 31 107 General and administrative expenses 17 14 14 15 20 63 Taxes other than payroll and income taxes 1 1 1 0 1 3 Other operating costs, net 1 (7) -- 2 (4) (9) 369 365 358 453 515 1,691 Total costs and expenses 4,685 4,493 4,517 4,880 4,815 18,705 Operating income 352 121 413 304 330 1,168 Interest expense and other: Weyerhaeuser: Interest expense incurred (195) (208) (205) (200) (202) (815) Less interest capitalized 3 5 6 3 5 19 Equity in income (loss) of affiliates -- (5) 3 (3) (1) (6) Interest income and other 3 6 6 3 2 17 Real Estate and Related Assets: Interest expense incurred (15) (14) (13) (13) (13) (53) Less interest capitalized 15 14 13 13 13 53 Equity in income of unconsolidated entities 9 5 7 11 (3) 20 Interest income and other 11 11 8 6 8 33 Earnings before income taxes and cumulative effect of a change in accounting principle 183 (65) 238 124 139 436 Income taxes (62) 22 (81) (42) (47) (148) Earnings before cumulative effect of a change in accounting principle 121 (43) 157 82 92 288 Cumulative effect of a change in accounting principle, net of applicable taxes of $6 (4) -- (11) -- -- -- (11) Net earnings (loss) $121 $(54) $157 $82 $92 $277 Basic net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $0.54 $(0.19) $0.71 $0.37 $0.41 $1.30 Cumulative effect of a change in accounting principle -- (0.05) -- -- -- (0.05) Net earnings (loss) $0.54 $(0.24) $0.71 $0.37 $0.41 $1.25 Diluted net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $0.53 $(0.19) $0.71 $0.37 $0.41 $1.30 Cumulative effect of a change in accounting principle -- (0.05) -- -- -- (0.05) Net earnings (loss) $0.53 $(0.24) $0.71 $0.37 $0.41 $1.25 Dividends paid per share $0.40 $0.40 $0.40 $0.40 $0.40 $1.60 (1) The first quarter of 2004 includes charges of $26 million 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 quarter of 2004 includes a net foreign exchange loss of $9 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 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) 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 Q4 YTD March March June Sept. Dec. Dec. 28, 30, 29, 28, 28, 28, 2004 2003 2003 2003 2003 2003 Timberlands: Logs $193 $162 $185 $184 $199 $730 Other products 58 80 61 62 61 264 251 242 246 246 260 994 Wood Products: Softwood lumber 819 752 846 890 793 3,281 Plywood 221 165 173 219 227 784 Veneer 11 9 9 9 12 39 Composite panels 108 90 104 100 99 393 OSB 338 167 227 345 370 1,109 Hardwood lumber 81 80 86 75 79 320 Engineered lumber products 298 254 308 329 288 1,179 Logs 23 25 33 19 28 105 Other products 248 216 262 251 246 975 2,147 1,758 2,048 2,237 2,142 8,185 Pulp and Paper: Pulp 339 309 321 333 342 1,305 Paper 535 596 546 530 510 2,182 Coated groundwood 36 36 32 39 33 140 Liquid packaging board 49 47 52 50 49 198 Other products 10 6 6 5 9 26 969 994 957 957 943 3,851 Containerboard, Packaging and Recycling: Containerboard 82 77 81 73 73 304 Packaging 853 879 922 898 845 3,544 Recycling 79 60 63 60 64 247 Bags 19 20 20 19 21 80 Other products 33 33 35 40 39 147 1,066 1,069 1,121 1,090 1,042 4,322 Real Estate and Related Assets 469 445 432 534 618 2,029 Corporate and Other 135 106 126 120 140 492 $5,037 $4,614 $4,930 $5,184 $5,145 $19,873 Contribution (charge) to earnings(1): Q1 Q2 Q3 Q4 YTD (in millions) March March June Sept. Dec. Dec. 28, 30, 29, 28, 28, 28, 2004 2003 2003 2003 2003 2003 Timberlands (2) $159 $149 $300 $143 $185 $777 Wood Products (3)(4)(5) 173 (150) (53) 151 111 59 Pulp and Paper (6) (25) 10 (7) (18) (67) (82) Containerboard, Packaging and Recycling (7) (8) 24 80 108 42 32 262 Real Estate and Related Assets(9) 120 95 91 97 109 392 Corporate and Other (10)(11)(12) (76) (46) (2) (94) (34) (176) $375 $138 $437 $321 $336 $1,232 (1) Certain reclassifications have been made to conform prior period data with the current presentation. (2) 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. (3) The first quarter of 2004 includes charges of $26 million 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. (4) The first quarter of 2004 includes a $49 million charge for the settlement of lawsuits involving the market for Pacific Northwest alder logs. The first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs. (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 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) 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 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 an acreage sale. 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 gain of $7 million 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 quarter of 2004 includes a net foreign exchange loss of $10 million. 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 Q4 YTD March March June Sept. Dec. Dec. 28, 30, 29, 28, 28, 28, 2004 2003 2003 2003 2003 2003 Timberlands (thousands): Logs - cunits 1,044 984 1,006 987 1,148 4,125 Wood Products (millions): Softwood lumber - board feet 2,054 2,175 2,385 2,298 2,123 8,981 Plywood - square feet (3/8") 642 664 697 688 616 2,665 Veneer - square feet (3/8") 55 62 63 56 58 239 Composite panels - square feet (3/4") 301 267 304 302 289 1,162 Oriented strand board - square feet (3/8") 981 1,025 1,206 1,129 1,001 4,361 Hardwood lumber - board feet 100 106 113 103 105 427 Logs - cunits (in thousands) 170 170 230 189 210 799 Pulp and Paper (thousands): Pulp - air-dry metric tons 624 623 596 632 628 2,479 Paper - tons 741 737 690 707 688 2,822 Coated groundwood - tons 59 61 55 64 54 234 Liquid packaging board - tons 66 60 67 64 65 256 Paper converting - tons 483 502 472 478 430 1,882 Containerboard, Packaging and Recycling (thousands) Containerboard - tons 262 221 233 214 222 890 Packaging - MSF 18,146 17,752 18,577 18,545 17,867 72,741 Recycling - tons 665 593 566 538 593 2,290 Kraft bags and sacks - tons 24 25 24 25 26 100 Real Estate and Related Assets Single-family homes sold 1,506 1,289 1,321 1,239 1,156 5,005 Single-family homes closed 1,065 1,010 1,003 1,182 1,431 4,626 Single-family homes sold but not closed at end of period 2,702 2,161 2,479 2,536 2,261 2,261 Total production volumes: Q1 Q2 Q3 Q4 YTD March March June Sept. Dec. Dec. 28, 30, 29, 28, 28, 28, 2004 2003 2003 2003 2003 2003 Timberlands (thousands): Fee Depletion - cunits 2,265 2,555 2,479 2,223 2,171 9,428 Wood Products (millions): Softwood lumber - board feet 1,760 1,842 1,825 1,742 1,704 7,113 Plywood - square feet (3/8") 422 478 412 414 404 1,708 Veneer - square feet (3/8") (1) 585 593 536 536 534 2,199 Composite panels - square feet (3/4") 268 231 252 253 252 988 Oriented strand board - square feet (3/8") 1,031 1,011 1,051 1,061 1,047 4,170 Hardwood lumber - board feet 89 98 93 93 89 373 Pulp and Paper (thousands): Pulp - air-dry metric tons 645 654 619 604 645 2,522 Paper - tons (2) 743 757 712 706 658 2,833 Coated groundwood - tons 55 62 55 61 61 239 Liquid packaging board - tons 61 56 68 72 65 261 Paper converting - tons 490 516 479 472 415 1,882 Containerboard, Packaging and Recycling (thousands) Containerboard - tons 1,503 1,429 1,568 1,512 1,494 6,003 Packaging - MSF 19,493 18,977 19,955 19,865 19,033 77,830 Recycling - tons (3) 1,607 1,528 1,644 1,507 1,537 6,216 Kraft bags and sacks - tons 24 25 25 23 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) Recycling production includes volumes processed in Weyerhaeuser recycling facilities and brokered volumes. WEYERHAEUSER COMPANY STATISTICAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (in millions) March 28, Dec. 28, Assets 2004 2003 Weyerhaeuser Current assets: Cash and short-term investments $74 $171 Receivables, less allowances 1,701 1,484 Inventories 2,020 1,911 Prepaid expenses 471 455 Total current assets 4,266 4,021 Property and equipment 12,141 12,243 Construction in progress 251 403 Timber and timberlands at cost, less fee stumpage charged to disposals 4,279 4,287 Investments in and advances to equity affiliates 603 603 Goodwill 3,232 3,237 Deferred pension and other assets 1,287 1,311 26,059 26,105 Real Estate and Related Assets 2,078 2,004 Total assets $28,137 $28,109 Liabilities and Shareholders' Interest Weyerhaeuser Current liabilities: Notes payable and commercial paper $103 $4 Current maturities of long- term debt 1,129 90 Accounts payable 1,065 1,041 Accrued liabilities 1,212 1,390 Total current liabilities 3,509 2,525 Long-term debt 10,399 11,503 Deferred income taxes, pension, other postretirement benefits and other liabilities 5,694 5,671 19,602 19,699 Real Estate and Related Assets Notes payable and commercial paper 78 1 Long-term debt 887 893 Other liabilities 356 407 1,321 1,301 Total liabilities 20,923 21,000 Shareholders' interest 7,214 7,109 Total liabilities and shareholders' interest $28,137 $28,109 STATEMENT OF CASH FLOWS Q1 Q2 Q3 Q4 YTD March March June Sept. Dec. Dec. SELECTED INFORMATION (unaudited) 28, 30, 29, 28, 28, 28, (in millions) 2004 2003 2003 2003 2003 2003 (Weyerhaeuser only, excludes Real Estate & Related Assets) Net cash from operations $(120) $(126) $397 $557 $821 $1,649 Cash paid for property and equipment (79) (128) (172) (146) (146) (592) Cash paid for timberlands reforestation (12) (14) (5) (6) (9) (34) Cash received from issuances of debt -- 1 -- 12 31 44 Revolving credit facilities, notes and commercial paper borrowings, net 98 599 (333) 166 (750) (318) Payments on debt (60) (251) (14) (509) (50) (824) 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: April 23, 2004 -----END PRIVACY-ENHANCED MESSAGE-----