-----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, I3uDpuBnxzJAwpplg0NT0IMINZFoiMmSQJgpYM0qLW1b4mHa1FPR2wxhd+eInWWs LR0Yw/CWvZ7ahpPizYs7yQ== 0000106535-04-000010.txt : 20040727 0000106535-04-000010.hdr.sgml : 20040727 20040723160814 ACCESSION NUMBER: 0000106535-04-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040723 ITEM INFORMATION: FILED AS OF DATE: 20040723 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: 04929138 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 f8kjul23.txt 8 -K EARNING RELEASE JULY 23, 2004 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 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 ---------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C., 20549 ITEM 12. RESULTS OF OPERATION AND FINANCIAL CONDITION On July 23, 2004, Weyerhaeuser Company a press release stating the following: FEDERAL WAY, Wash.-- Weyerhaeuser Company (NYSE: WY) today reported record second quarter net earnings of $369 million, or $1.57 per share, on net sales of $5.9 billion. This compares with $157 million, or 71 cents per share, on net sales of $4.9 billion for the second quarter of 2003. Second quarter 2004 earnings include the following after-tax items: A charge of $14 million, or 6 cents per share, for early extinguishment of debt. A charge of $10 million, or 4 cents per share, for an adverse judgment in a lawsuit. Second quarter 2003 earnings included the following after-tax items: A charge of $19 million, or 8 cents per share, for closure or impending sale of facilities. A charge of $17 million, or 8 cents per share, for integration and restructuring activities. A gain of $95 million, or 43 cents per share, for the sale of timberlands in Western Washington. A gain of $7 million, or 3 cents per share, for the settlement of an insurance claim relating to the company's Cemwood litigation. Other significant second quarter financial matters include: Proceeds from an equity offering in the second quarter allowed the company, including Real Estate and Related Assets, to reduce outstanding debt by approximately $1.0 billion to approximately $11.6 billion at the end of the quarter. Strong cash flow from operations also contributed to a net second quarter increase in cash and short-term investments of approximately $650 million, which is expected to be applied to future debt repayment. These debt repayments are expected to reduce interest expense beginning in the third quarter. Capital spending, excluding acquisitions and Real Estate and Related Assets, for the first six months was approximately $177 million. The company's capital spending budget remains $750 million for the year. "Our record quarterly earnings reflect favorable market conditions for Wood products and Timberlands, combined with hard work by our employees to improve efficiency and streamline operations," said Steven R. Rogel, chairman, president and chief executive officer. "The robust housing market drove strong earnings in both Wood Products and Real Estate. In addition, the performance of the company's paper-related businesses is improving." "As we look to the third quarter, our businesses are well positioned to take advantage of continued strong market conditions. Despite recent price weakness in some product lines, Wood Products earnings are expected to remain healthy and our single-family home building business has a record backlog of orders. Price increases in pulp, paper and packaging continue to be implemented." SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS Millions (except per share data) 2Q 2004 2Q 2003 Change Net earnings $369 $157 $212 Earnings per share $1.57 $0.71 $0.86 Net sales $5,893 $4,930 $963 SEGMENT RESULTS FOR SECOND QUARTER (Contributions to Pre-Tax Earnings) Millions 2Q 2004 2Q 2003 Change Timberlands $201 $300 ($99) Wood Products $448 ($53) $501 Pulp and Paper $14 ($7) $21 Containerboard, Packaging and Recycling $62 $108 ($46) Real Estate and Related Assets $118 $91 $27 DISCUSSION AND OUTLOOK BY BUSINESS SEGMENT TIMBERLANDS 2Q 2004 1Q 2004 Change Contribution to earnings (millions) $201 $159 $42 Second quarter earnings increased from the first quarter primarily due to seasonally higher fee harvest volume and higher prices for logs in both export and domestic markets. Third quarter earnings, excluding the previously announced sale of 304,000 acres of timberlands in Georgia, are expected to be slightly lower than the second quarter, with reduced harvest and sales activity due to normal seasonal shutdowns. WOOD PRODUCTS 2Q 2004 1Q 2004 Change Contribution to earnings (millions) $448 $173 $275 Second quarter earnings of $448 million include a $16 million pre-tax charge resulting from an adverse judgment in a lawsuit. This compares to first quarter earnings of $173 million, which included a pre-tax gain of $33 million on the sale of the company's oriented strand board mill in Slave Lake, Alberta, and a pre-tax charge of $49 million for the settlement of litigation. Strong demand for lumber, structural panels and engineered wood products continued into the second quarter with U.S. housing starts staying near the 2 million seasonally adjusted annual level through the quarter. High industry operating rates in OSB and plywood, combined with transportation issues affecting all products, kept prices at very high levels for much of the quarter. Prices for hardwood lumber, particleboard and medium density fiberboard also increased in response to strong demand from industrial manufacturers. The segment incurred $34 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. This compares to $26 million in the first quarter. Third quarter earnings are expected to be lower than second quarter, but to remain healthy. Prices for lumber and structural panels are expected to be lower as supply and demand begins to balance and transportation issues abate. Average realizations for engineered lumber and industrial panels are expected to improve. PULP AND PAPER 2Q 2004 1Q 2004 Change Contribution (charge) to earnings (millions) $14 ($25) $39 Earnings improved during the quarter as general improvement in the world economy and a weakening dollar increased demand for all products, resulting in higher prices. Transportation disruptions slowed product shipments during the quarter. The segment expects to report improved earnings in the third quarter. Overall prices for pulp are expected to increase modestly. Improvements in fine paper prices are anticipated as demand continues to grow. CONTAINERBOARD, PACKAGING AND RECYCLING 2Q 2004 1Q 2004 Change Contribution to earnings (millions) $62 $24 $38 Earnings increased over first quarter levels primarily due to higher box shipments coupled with rising prices for both containerboard and boxes. Increased productivity also contributed to higher earnings, partially offset by cost increases for recycled fiber during the quarter. Customer demand is expected to remain strong in the third quarter, with industry operating rates remaining high and industry inventories near historic lows. This should result in continued favorable business conditions for this segment. As a result, the company expects higher third quarter earnings due primarily to increasing box prices. REAL ESTATE AND RELATED ASSETS 2Q 2004 1Q 2004 Change Contribution to earnings (millions) $118 $120 ($2) Second quarter earnings benefited from increases in single-family home sale closings and margins. First quarter earnings included a $22 million pre-tax gain on a land sale. Housing sales remain strong with a backlog of homes sold, but not closed, exceeding seven months. Third quarter earnings from new home sales are expected to be comparable to the second quarter. Total segment earnings for the third quarter are expected to be higher due to an $18 million pre-tax gain from the sale of a multi-family site. OTHER The company will hold a live conference call at 7 a.m. PDT (10 a.m. EDT) on July 23 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: 8362614) within North America and at 1-706-645-9291 (access code: 8362614) from outside North America. The call may also be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link. Weyerhaeuser Company (NYSE: WY), one of the world's largest integrated forest products companies, was incorporated in 1900. In 2003, sales were $19.9 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com. # # # This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "believes," "should," "approximately," anticipates," "estimates," "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. WEYERHAEUSER COMPANY STATISTICAL INFORMATION (unaudited) CONSOLIDATED EARNINGS Q1 Q2 (in millions) March 28, March 30, June 27, June 29, 2004 2003 2004 2003 Net sales and revenues: Weyerhaeuser (1) $4,568 $4,169 $5,369 $4,498 Real Estate and Related Assets 469 445 524 432 Total net sales and revenues 5,037 4,614 5,893 4,930 Costs and expenses: Weyerhaeuser: Costs of products sold 3,539 3,322 3,922 3,611 Depreciation, amortization and fee stumpage 325 321 328 313 Selling expenses 121 107 122 111 General and administrative expenses 241 231 235 232 Research and development expenses 12 12 13 12 Taxes other than payroll and income taxes 48 47 48 48 Charges for integration and restructuring 15 29 13 25 Charges for closure of facilities 1 22 -- 12 Other operating costs, net (2) (3) 14 37 42 (205) 4,316 4,128 4,723 4,159 Real Estate and Related Assets: Costs and operating expenses 321 330 381 316 Depreciation and amortization 2 3 4 2 Selling expenses 27 24 30 25 General and administrative expenses 17 14 19 14 Taxes other than payroll and income taxes 1 1 -- 1 Other operating costs, net 1 (7) 1 -- 369 365 435 358 Total costs and expenses 4,685 4,493 5,158 4,517 Operating income 352 121 735 413 Interest expense and other: Weyerhaeuser: Interest expense incurred (4) (195) (208) (218) (205) Less interest capitalized 3 5 1 6 Equity in income (loss) of affiliates -- (5) 7 3 Interest income and other 3 6 5 6 Real Estate and Related Assets: Interest expense incurred (15) (14) (14) (13) Less interest capitalized 15 14 14 13 Equity in income of unconsolidated entities 9 5 20 7 Interest income and other 11 11 9 8 Earnings before income taxes and cumulative effect of a change in accounting principle 183 (65) 559 238 Income taxes (62) 22 (190) (81) Earnings before cumulative effect of a change in accounting principle 121 (43) 369 157 Cumulative effect of a change in accounting principle, net of applicable taxes of $6 (5) -- (11) -- -- Net earnings (loss) $121 $(54) $369 $157 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 Cumulative effect of a change in accounting principle -- (0.05) -- -- Net earnings (loss) $0.54 $(0.24) $1.57 $0.71 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 Cumulative effect of a change in accounting principle -- (0.05) -- -- Net earnings (loss) $0.54 $(0.24) $1.57 $0.71 Dividends paid per share $0.40 $0.40 $0.40 $0.40 Year Year-to-date Q3 Q4 ended June June Sept. Dec. Dec. 27, 29, 28, 28, 28, 2004 2003 2003 2003 2003 Net sales and revenues: Weyerhaeuser (1) $9,937 $8,667 $4,650 $4,527 $17,844 Real Estate and Related Assets 993 877 534 618 2,029 Total net sales and revenues 10,930 9,544 5,184 5,145 19,873 Costs and expenses: Weyerhaeuser: Costs of products sold 7,461 6,933 3,598 3,547 14,078 Depreciation, amortization and fee stumpage 653 634 320 353 1,307 Selling expenses 243 218 117 122 457 General and administrative expenses 476 463 249 238 950 Research and development expenses 25 24 10 17 51 Taxes other than payroll and income taxes 96 95 45 45 185 Charges for integration and restructuring 28 54 24 25 103 Charges for closure of facilities 1 34 48 45 127 Other operating costs, net (2) (3) 56 (168) 16 (92) (244) 9,039 8,287 4,427 4,300 17,014 Real Estate and Related Assets: Costs and operating expenses 702 646 406 464 1,516 Depreciation and amortization 6 5 3 3 11 Selling expenses 57 49 27 31 107 General and administrative expenses 36 28 15 20 63 Taxes other than payroll and income taxes 1 2 0 1 3 Other operating costs, net 2 (7) 2 (4) (9) 804 723 453 515 1,691 Total costs and expenses 9,843 9,010 4,880 4,815 18,705 Operating income 1,087 534 304 330 1,168 Interest expense and other: Weyerhaeuser: Interest expense incurred (4) (413) (413) (200) (202) (815) Less interest capitalized 4 11 3 5 19 Equity in income (loss) of affiliates 7 (2) (3) (1) (6) Interest income and other 8 12 3 2 17 Real Estate and Related Assets: Interest expense incurred (29) (27) (13) (13) (53) Less interest capitalized 29 27 13 13 53 Equity in income of unconsolidated entities 29 12 11 (3) 20 Interest income and other 20 19 6 8 33 Earnings before income taxes and cumulative effect of a change in accounting principle 742 173 124 139 436 Income taxes (252) (59) (42) (47) (148) Earnings before cumulative effect of a change in accounting principle 490 114 82 92 288 Cumulative effect of a change in accounting principle, net of applicable taxes of $6 (5) -- (11) -- -- (11) Net earnings (loss) $490 $103 $82 $92 $277 Basic net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $2.14 $0.52 $0.37 $0.41 $1.30 Cumulative effect of a change in accounting principle -- (0.05) -- -- (0.05) Net earnings (loss) $2.14 $0.47 $0.37 $0.41 $1.25 Diluted net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $2.13 $0.52 $0.37 $0.41 $1.30 Cumulative effect of a change in accounting principle -- (0.05) -- -- (0.05) Net earnings (loss) $2.13 $0.47 $0.37 $0.41 $1.25 Dividends paid per share $0.80 $0.80 $0.40 $0.40 $1.60 (1) The first and second quarters of 2004 include charges of $26 million and $34 million, respectively, or $60 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 and second quarters of 2004 include net foreign exchange losses of $9 million and $7 million, respectively, or a total net loss of $16 million year-to-date. 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 first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs. 2003 second quarter includes a $144 million gain on the sales of timberlands in Washington state and a $25 million gain for the settlement of an insurance claim relating to the Cemwood litigation. 2003 third quarter includes a $23 million charge associated with the settlement of a class action linerboard antitrust lawsuit. 2003 fourth quarter includes a $61 million gain on the sales of timberlands in Tennessee and the Carolinas and an $8 million charge associated with the settlement of litigation related to workers compensation claims. (4) The second quarter of 2004 includes a $21 million charge for the early extinguishment of debt. (5) Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations,was adopted as of the beginning of 2003. WEYERHAEUSER COMPANY STATISTICAL INFORMATION (unaudited) Net sales and revenues (in millions): Q1 Q2 March 28, March 30, June 27, June 29, 2004 2003 2004 2003 Timberlands: Logs $193 $162 $211 $185 Other products 58 80 66 61 251 242 277 246 Wood Products: Softwood lumber 819 752 1,106 846 Plywood 221 165 263 173 Veneer 11 9 12 9 Composite panels 108 90 133 104 OSB 338 167 456 227 Hardwood lumber 81 80 94 86 Engineered lumber products 298 254 396 308 Logs 23 25 38 33 Other products 248 216 294 262 2,147 1,758 2,792 2,048 Pulp and Paper: Pulp 339 309 371 321 Paper 535 596 538 546 Coated groundwood 36 36 37 32 Liquid packaging board 49 47 53 52 Other products 10 6 13 6 969 994 1,012 957 Containerboard, Packaging and Recycling: Containerboard 81 77 80 81 Packaging 853 879 918 922 Recycling 80 60 91 63 Bags 19 20 18 20 Other products 33 33 34 35 1,066 1,069 1,141 1,121 Real Estate and Related Assets 469 445 524 432 Corporate and Other 135 106 147 126 $5,037 $4,614 $5,893 $4,930 Year Year-to-date Q3 Q4 ended June June Sept. Dec. Dec. 27, 29, 28, 28, 28, 2004 2003 2003 2003 2003 Timberlands: Logs $404 $347 $184 $199 $730 Other products 124 141 62 61 264 528 488 246 260 994 Wood Products: Softwood lumber 1,925 1,598 890 793 3,281 Plywood 484 338 219 227 784 Veneer 23 18 9 12 39 Composite panels 241 194 100 99 393 OSB 794 394 345 370 1,109 Hardwood lumber 175 166 75 79 320 Engineered lumber products 694 562 329 288 1,179 Logs 61 58 19 28 105 Other products 542 478 251 246 975 4,939 3,806 2,237 2,142 8,185 Pulp and Paper: Pulp 710 630 333 342 1,305 Paper 1,073 1,142 530 510 2,182 Coated groundwood 73 68 39 33 140 Liquid packaging board 102 99 50 49 198 Other products 23 12 5 9 26 1,981 1,951 957 943 3,851 Containerboard, Packaging and Recycling: Containerboard 161 158 73 73 304 Packaging 1,771 1,801 898 845 3,544 Recycling 171 123 60 64 247 Bags 37 40 19 21 80 Other products 67 68 40 39 147 2,207 2,190 1,090 1,042 4,322 Real Estate and Related Assets 993 877 534 618 2,029 Corporate and Other 282 232 120 140 492 $10,930 $9,544 $5,184 $5,145 $19,873 Contribution (charge) to earnings: Q1 Q2 (in millions) March 28, March 30, June 27, June 29, 2004 2003 2004 2003 Timberlands (1) $159 $149 $201 $300 Wood Products (2) (3) (4) 173 (150) 448 (53) Pulp and Paper (5) (25) 10 14 (7) Containerboard, Packaging and Recycling (6) (7) 24 80 62 108 Real Estate and Related Assets (8) 120 95 118 91 Corporate and Other (9) (10) (11) (76) (46) (67) (2) $375 $138 $776 $437 Year Year-to-date Q3 Q4 ended June June Sept. Dec. Dec. 27, 29, 28, 28, 28, 2004 2003 2003 2003 2003 Timberlands (1) $360 $449 $143 $185 $777 Wood Products (2) (3) (4) 621 (203) 151 111 59 Pulp and Paper (5) (11) 3 (18) (67) (82) Containerboard, Packaging and Recycling (6) (7) 86 188 42 32 262 Real Estate and Related Assets (8) 238 186 97 109 392 Corporate and Other (9) (10) (11) (143) (48) (94) (34) (176) $1,151 $575 $321 $336 $1,232 (1) 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 and second quarters of 2004 include charges of $26 million and $34 million, respectively, or $60 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 first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs. (4) 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 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. (5) 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. (6) The third quarter of 2003 includes a $23 million charge associated with the settlement of a class action linerboard antitrust lawsuit. (7) 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 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. (8) The first quarter of 2004 includes a $22 million gain on a land 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 $7 million gain on an acreage sale. (9) 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. (10) 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. (11) The first and second quarters of 2004 include net foreign exchange losses of $10 million and $6 million, or a loss of $16 million 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 March 28, March 30, June 27, June 29, 2004 2003 2004 2003 Timberlands (thousands): Logs - cunits 1,044 984 954 1,006 Wood Products (millions): Softwood lumber - board feet 2,054 2,175 2,393 2,385 Plywood - square feet (3/8") 642 664 668 697 Veneer - square feet (3/8") 55 62 60 63 Composite panels - square feet (3/4") 301 267 324 304 Oriented strand board - square feet (3/8") 981 1,025 1,143 1,206 Hardwood lumber - board feet 100 106 116 113 Logs - cunits (in thousands) 170 170 279 230 Pulp and Paper (thousands): Pulp - air-dry metric tons 624 623 642 596 Paper - tons 741 737 718 690 Coated groundwood - tons 59 61 61 55 Liquid packaging board - tons 66 60 72 67 Paper converting - tons 483 502 472 472 Containerboard, Packaging and Recycling (thousands): Containerboard - tons 250 221 221 233 Packaging - MSF 18,146 17,752 18,917 18,577 Recycling - tons 678 593 701 566 Kraft bags and sacks - tons 24 25 23 24 Real Estate and Related Assets: Single-family homes sold 1,506 1,289 1,564 1,321 Single-family homes closed 1,065 1,010 1,216 1,003 Single-family homes sold but not closed at end of period 2,702 2,161 3,050 2,479 Year Year-to-date Q3 Q4 ended June June Sept. Dec. Dec. 27, 29, 28, 28, 28, 2004 2003 2003 2003 2003 Timberlands (thousands): Logs - cunits 1,998 1,990 987 1,148 4,125 Wood Products (millions): Softwood lumber - board feet 4,447 4,560 2,298 2,123 8,981 Plywood - square feet (3/8") 1,310 1,361 688 616 2,665 Veneer - square feet (3/8") 115 125 56 58 239 Composite panels - square feet (3/4") 625 571 302 289 1,162 Oriented strand board - square feet (3/8") 2,124 2,231 1,129 1,001 4,361 Hardwood lumber - board feet 216 219 103 105 427 Logs - cunits (in thousands) 449 400 189 210 799 Pulp and Paper (thousands): Pulp - air-dry metric tons 1,266 1,219 632 628 2,479 Paper - tons 1,459 1,427 707 688 2,822 Coated groundwood - tons 120 116 64 54 234 Liquid packaging board - tons 138 127 64 65 256 Paper converting - tons 955 974 478 430 1,882 Containerboard, Packaging and Recycling (thousands): Containerboard - tons 471 454 214 222 890 Packaging - MSF 37,063 36,329 18,545 17,867 72,741 Recycling - tons 1,379 1,159 538 593 2,290 Kraft bags and sacks - tons 47 49 25 26 100 Real Estate and Related Assets: Single-family homes sold 3,070 2,610 1,239 1,156 5,005 Single-family homes closed 2,281 2,013 1,182 1,431 4,626 Single-family homes sold but not closed at end of period 3,050 2,479 2,536 2,261 2,261 Total production volumes: Q1 Q2 March 28, March 30, June 27, June 29, 2004 2003 2004 2003 Timberlands (thousands): Fee Depletion - cunits 2,265 2,555 2,404 2,479 Wood Products (millions): Softwood lumber - board feet 1,760 1,842 1,881 1,825 Plywood - square feet (3/8") 422 478 405 412 Veneer - square feet (3/8") (1) 585 593 609 536 Composite panels - square feet (3/4") 268 231 281 252 Oriented strand board - square feet (3/8") 1,031 1,011 1,056 1,051 Hardwood lumber - board feet 89 98 96 93 Pulp and Paper (thousands): Pulp - air-dry metric tons 619 654 636 619 Paper - tons (2) 743 757 736 712 Coated groundwood - tons 55 62 61 55 Liquid packaging board - tons 61 56 67 68 Paper converting - tons 490 516 470 479 Containerboard, Packaging and Recycling (thousands): Containerboard - tons (3) 1,503 1,429 1,598 1,568 Packaging - MSF 19,493 18,977 20,208 19,955 Recycling - tons (4) 1,607 1,528 1,707 1,644 Kraft bags and sacks - tons 24 25 23 25 Year-to-date Q3 Q4 Year ended June June Sept. Dec. Dec. 27, 29, 28, 28, 28, 2004 2003 2003 2003 2003 Timberlands (thousands): Fee Depletion - cunits 4,669 5,034 2,223 2,171 9,428 Wood Products (millions): Softwood lumber - board feet 3,641 3,667 1,742 1,704 7,113 Plywood - square feet (3/8") 827 890 414 404 1,708 Veneer - square feet (3/8") (1) 1,194 1,129 536 534 2,199 Composite panels - square feet (3/4") 549 483 253 252 988 Oriented strand board - square feet (3/8") 2,087 2,062 1,061 1,047 4,170 Hardwood lumber - board feet 185 191 93 89 373 Pulp and Paper (thousands): Pulp - air-dry metric tons 1,255 1,273 604 645 2,522 Paper - tons (2) 1,479 1,469 706 658 2,833 Coated groundwood - tons 116 117 61 61 239 Liquid packaging board - tons 128 124 72 65 261 Paper converting - tons 960 995 472 415 1,882 Containerboard, Packaging and Recycling (thousands): Containerboard - tons (3) 3,101 2,997 1,512 1,494 6,003 Packaging - MSF 39,701 38,932 19,865 19,033 77,830 Recycling - tons (4) 3,314 3,172 1,507 1,537 6,216 Kraft bags and sacks - tons 47 50 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) 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 28, June 27, Dec. 28, Assets 2004 2004 2003 Weyerhaeuser Current assets: Cash and short-term investments $74 $725 $171 Receivables, less allowances 1,701 1,860 1,484 Inventories 2,020 1,936 1,911 Prepaid expenses 471 488 455 Total current assets 4,266 5,009 4,021 Property and equipment 12,141 11,883 12,243 Construction in progress 251 279 403 Timber and timberlands at cost, less fee stumpage charged to disposals 4,279 4,244 4,287 Investments in and advances to equity affiliates 603 592 603 Goodwill 3,232 3,218 3,237 Deferred pension and other assets 1,287 1,273 1,311 26,059 26,498 26,105 Real Estate and Related Assets 2,078 2,225 2,004 Total assets $28,137 $28,723 $28,109 Liabilities and Shareholders' Interest Weyerhaeuser Current liabilities: Notes payable and commercial paper $103 $2 $4 Current maturities of long-term debt 1,129 445 90 Accounts payable 1,065 1,114 1,041 Accrued liabilities 1,212 1,323 1,390 Total current liabilities 3,509 2,884 2,525 Long-term debt 10,399 10,325 11,503 Deferred income taxes, pension, other postretirement benefits and other liabilities 5,694 5,789 5,671 19,602 18,998 19,699 Real Estate and Related Assets Notes payable and commercial paper 78 -- 1 Long-term debt 887 872 893 Other liabilities 356 443 407 1,321 1,315 1,301 Total liabilities 20,923 20,313 21,000 Shareholders' interest 7,214 8,410 7,109 Total liabilities and shareholders' interest $28,137 $28,723 $28,109 STATEMENT OF CASH FLOWS Q1 Q2 SELECTED INFORMATION (unaudited) March 28, March 30, June 27, June 29, (in millions) 2004 2003 2004 2003 (Weyerhaeuser only, excludes Real Estate & Related Assets) Net cash from operations $(120) $(126) $807 $397 Cash paid for property and equipment (79) (128) (80) (172) Cash paid for timberlands reforestation (12) (14) (6) (5) Cash received from issuances of debt -- 1 -- -- Revolving credit facilities, notes and commercial paper borrowings, net 98 599 (100) (333) Payments on debt (60) (251) (813) (14) Proceeds from equity offering -- -- 954 -- Year Year-to-date Q3 Q4 ended June June Sept. Dec. Dec. 27, 29, 28, 28, 28, 2004 2003 2003 2003 2003 Net cash from operations $687 $271 $557 $821 $1,649 Cash paid for property and equipment (159) (300) (146) (146) (592) Cash paid for timberlands reforestation (18) (19) (6) (9) (34) Cash received from issuances of debt -- 1 12 31 44 Revolving credit facilities, notes and commercial paper borrowings, net (2) 266 166 (750) (318) Payments on debt (873) (265) (509) (50) (824) Proceeds from equity offering 954 -- -- -- -- # # # SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WEYERHAEUSER COMPANY By /s/ Steven J. Hillyard Its: Vice President and Chief Accounting Officer Date: July 23, 2004 -----END PRIVACY-ENHANCED MESSAGE-----