-----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, Cfc42j3wOCf+MVL+718z9RM31ITKA/MjKTQUVDawO64SynLEzLEEM7/ORerV20PD 6niiPUzTA/X2xwRJ45ZRcA== 0000106535-05-000004.txt : 20050124 0000106535-05-000004.hdr.sgml : 20050124 20050124105009 ACCESSION NUMBER: 0000106535-05-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20041226 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050124 DATE AS OF CHANGE: 20050124 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: 05543354 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 f8kjan21.txt 8-K YEAR END EARNINGS 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 January 21, 2005 ---------------------------------- (Date of earliest event report) WEYERHAEUSER COMPANY (Exact name of registrant as specified in charter) Washington 1-4825 91-0470860 ---------- ------ ---------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation or Number) organization) Federal Way, Washington 98063-9777 (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: (253) 924-2345 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: - ----- Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) - ----- Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) - ----- Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17 CFR 240.14d-2(b)) - ----- Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17 CFR 240.13e-4(c)) TABLE OF CONTENTS Item 2.02. Results of Operations and Financial Condition SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C., 20549 ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 21, 2005, Weyerhaeuser Company issued a press release stating the following: Weyerhaeuser Reports Net Earnings of $1.3 Billion for 2004, Or $5.43 per Diluted Share, on Net Sales of $22.7 Billion FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported net earnings of $1.3 billion for 2004, or $5.43 per diluted share, on net sales of $22.7 billion. This compares with $277 million, or $1.25 per diluted share, on net sales of $19.9 billion for the full year 2003. Fourth quarter 2004 earnings were $199 million, or 82 cents per diluted share, on net sales of $5.9 billion. Last year, Weyerhaeuser reported fourth quarter net earnings of $92 million, or 41 cents per diluted share, on net sales of $5.1 billion. Fourth quarter 2004 earnings include the following after-tax items: * A charge of $34 million, or 14 cents per diluted share, for early extinguishment of debt. * A gain of $24 million, or 10 cents per diluted share, for gains on the sale of facilities. * A charge of $19 million, or 8 cents per diluted share, for the impairment of assets in the company's European manufacturing operations. * A charge of $16 million, or 7 cents per diluted share, recognized in connection with a change in the method of estimating workers' compensation liabilities. * A charge of $15 million, or 6 cents per diluted share, for the net book value of technology donated to a university. Fourth quarter 2003 earnings included the following after-tax items: * A charge of $29 million, or 14 cents per diluted share, for closure of facilities. * A charge of $17 million, or 8 cents per diluted share, for integration and restructuring activities. * A charge of $5 million, or 2 cents per diluted share, associated with the settlement of litigation. * A gain of $40 million, or 18 cents per diluted share, on the sale of timberlands in Tennessee and the Carolinas. Other significant fourth quarter 2004 financial matters include: * The company, including Real Estate and Related Assets, reduced outstanding debt by approximately $730 million. For the year, the company reduced outstanding debt by approximately $1.9 billion and ended the year with approximately $1.2 billion in cash and short-term investments and approximately $10.6 billion in outstanding debt. * Capital spending, excluding Real Estate and Related Assets, for 2004 was approximately $504 million. "Our strong performance for the year demonstrates that our focus on customers, efficiency and financial management has created a competitive Weyerhaeuser that can deliver strong shareholder returns," said Steven R. Rogel, chairman, president and chief executive officer. "In the fourth quarter, however, some of our businesses experienced higher than expected costs which hurt our results. Some of these costs resulted from maintenance we had delayed until the fourth quarter due to strong market demand earlier in the year. We also incurred additional costs due to weather-related issues and the downtime we took to balance orders with customer demand. As we look to the first quarter, we are concerned about the impact unusually bad weather may have on our results." SUMMARY OF FOURTH QUARTER FINANCIAL HIGHLIGHTS Millions (except per share data) 4Q 2004 4Q 2003 Change Net earnings $199 $92 $107 Earnings per diluted share $0.82 $0.41 $0.41 Net sales $5,886 $5,145 $741 SUMMARY OF ANNUAL FINANCIAL HIGHLIGHTS Millions (except per share data) 2004 2003 Change Net earnings $1,283 $277 $1,006 Earnings per diluted share $5.43 $1.25 $4.18 Net sale $22,665 $19,873 $2,792 SEGMENT RESULTS FOR FOURTH QUARTER (Contributions to Pre-Tax Earnings) Millions 4Q 2004 4Q 2003 Change Timberlands $217 $185 $32 Wood Products $72 $111 ($39) Pulp and Paper $35 ($67) $102 Containerboard, Packaging and Recycling $81 $32 $49 Real Estate and Related Assets $217 $109 $108 TIMBERLANDS 4Q 2004 3Q 2004 Change Contribution to pre-tax earnings (millions) $217 $450 ($233) Excluding the third quarter $271 million pre-tax gain on the sale of 270,000 acres of timberlands in Georgia, fourth quarter earnings increased $38 million from the third quarter primarily because of sales of other non-strategic timberlands that closed earlier than expected. Weyerhaeuser expects first quarter market conditions to be similar to fourth quarter. WOOD PRODUCTS 4Q 2004 3Q 2004 Change Contribution to pre-tax earnings (millions) $72 $362 ($290) Fourth quarter earnings of $72 million include a $30 million pre-tax gain from the sale of a mill site in Vancouver, British Columbia, and a $6 million pre-tax gain from the sale of three mills in the Carolinas. Third quarter earnings included a $20 million pre-tax gain from the tenure reallocation agreement with the British Columbia government and a $20 million reduction in the reserve for hardboard siding claims. As expected, fourth quarter prices were significantly lower than third quarter, particularly in softwood lumber and structural panels. In addition, higher delivered log costs in the South and Canada caused by weather-related transportation disruptions and shortages affected the segment. Higher resin and energy costs, and a stronger Canadian dollar also negatively affected the segment. Volumes of key products declined approximately six percent due to seasonal market conditions. The company also experienced extended maintenance at several facilities, including its largest oriented strand board facility. The segment incurred $27 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the fourth quarter, compared with $31 million in the third quarter. For the year, the company incurred $118 million in countervailing and anti-dumping duties and related costs, compared with $97 million in 2003. Weyerhaeuser expects first quarter earnings to increase from fourth quarter due to improving prices and strong housing starts. PULP AND PAPER 4Q 2004 3Q 2004 Change Contribution to pre-tax earnings (millions) $35 $80 ($45) Earnings declined during the quarter due to higher costs associated with planned maintenance downtime, a stronger Canadian dollar, and higher than anticipated energy costs. Papergrade pulp prices, which had declined early in the quarter, began to recover. Fluff pulp prices improved slightly. Pricing for Fine Paper products improved compared with third quarter. Weyerhaeuser expects higher first quarter earnings compared with fourth quarter. Prices for papergrade pulp, which began improving late in the quarter, should continue to improve. Fine Paper prices are expected to hold steady. CONTAINERBOARD, PACKAGING AND RECYCLING 4Q 2004 3Q 2004 Change Contribution to pre-tax earnings (millions $81 $82 ($1) Fourth quarter earnings were relatively unchanged from third quarter. Higher fourth quarter containerboard and box prices offset lower box shipments and higher energy and maintenance costs. During the fourth quarter, Weyerhaeuser took 24,000 tons of market downtime. The company expects first quarter earnings to be consistent with the fourth quarter. REAL ESTATE AND RELATED ASSETS 4Q 2004 3Q 2004 Change Contribution to pre-tax earnings (millions) $217 $155 $62 Fourth quarter earnings benefited from increased single-family home closings, and higher sales prices and margins. In addition, a $24 million net pre-tax gain on land and lot sales contributed to earnings. Sales of single-family homes declined seasonally during the quarter compared to the prior quarter. The backlog of homes sold, but not closed, at the end of the fourth quarter is near six months. Weyerhaeuser expects first quarter earnings to decline seasonally from fourth quarter due to decreased single-family home closings in the markets in which the company operates. OTHER The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on January 21 to discuss the fourth quarter results. To access the conference call, listeners calling from within North America should dial 1-888-221-5699 at least 15 minutes prior to the start of the conference call. Those wishing to access the call from outside North America should dial 1-706-643-3795. Replays of the call will be available for one week following completion of the live call and can be accessed at 1-800-642-1687 (access code - 3158466) within North America and at 1-706-645-9291 (access code - - 3158466) from outside North America. The call is being webcast and can be accessed through Weyerhaeuser's Internet site at www.weyerhaeuser.com by clicking on the "Listen to our conference call" link. The webcast also is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com). Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com. ### This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans," and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expectations regarding the company's markets in the first quarter of 2005; expected earnings and performance of the company's business segments during the first quarter of 2005, demand and pricing for the company's products in the first quarter of 2005, non-strategic timberland sales in the first quarter of 2005, seasonal decline in single-family home closings in the first quarter of 2005, effect of Canadian exchange rate, and other matters. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts; market demand for the company's products, which may be tied to the relative strength of various U.S. business segments; energy prices; weather conditions; availability and pricing of raw materials, performance of the company's manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; disruption of transportation and legal proceedings. The company is also a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan, and by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar; and restrictions on international trade or tariffs imposed on imports, including the countervailing and dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings. WEYERHAEUSER COMPANY STATISTICAL INFORMATION (unaudited) CONSOLIDATED EARNINGS Q1 Q2 Q3 March March June June Sept. Sept. (in millions) 28, 30, 27, 29, 26, 28, 2004 2003 2004 2003 2004 2003 Net sales and revenues: Weyerhaeuser (1) $4,568 $4,169 $5,369 $4,498 $5,258 $4,650 Real Estate and Related Assets 469 445 524 432 591 534 Total net sales and revenues 5,037 4,614 5,893 4,930 5,849 5,184 Costs and expenses: Weyerhaeuser: Costs of products sold 3,539 3,322 3,922 3,611 3,894 3,598 Depreciation, amortization and fee stumpage 325 321 328 313 326 320 Selling expenses 121 107 122 111 125 117 General and administrative expenses 241 231 235 232 229 249 Research and development expenses 12 12 13 12 13 10 Taxes other than payroll and income taxes 48 47 48 48 50 45 Charges for integration and restructuring 15 29 13 25 8 24 Charges for closure of facilities 1 22 -- 12 13 48 Other operating costs, net (2) (3) 14 37 42 (205) (318) 16 4,316 4,128 4,723 4,159 4,340 4,427 Real Estate and Related Assets: Costs and operating expenses 321 330 381 316 414 406 Depreciation and amortization 2 3 4 2 3 3 Selling expenses 27 24 30 25 31 27 General and administrative expenses 17 14 19 14 19 15 Taxes other than payroll and income taxes 1 1 -- 1 1 0 Other operating costs, net 1 (7) 1 -- (19) 2 369 365 435 358 449 453 Total costs and expenses 4,685 4,493 5,158 4,517 4,789 4,880 Operating income 352 121 735 413 1,060 304 Interest expense and other: Weyerhaeuser: Interest expense incurred (4) (195) (208) (218) (205) (184) (200) Less interest capitalized 3 5 1 6 0 3 Equity in income (loss) of affiliates -- (5) 7 3 4 (3) Interest income and other 3 6 5 6 7 3 Real Estate and Related Assets: Interest expense incurred (15) (14) (14) (13) (14) (13) Less interest capitalized 15 14 14 13 14 13 Equity in income of unconsolidated entities 9 5 20 7 12 11 Interest income and other 11 11 9 8 1 6 Earnings before income taxes and cumulative effect of a change in accounting principle 183 (65) 559 238 900 124 Income taxes (62) 22 (190) (81) (306) (42) Earnings before cumulative effect of a change in accounting principle 121 (43) 369 157 594 82 Cumulative effect of a change in accounting principle, net of applicable taxes of $6 (5) -- (11) -- -- -- -- Net earnings (loss) $121 $(54) $369 $157 $594 $82 Basic net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $0.54 $(0.19) $1.57 $0.71 $2.46 $0.37 Cumulative effect of a change in accounting principle -- (0.05) -- -- -- -- Net earnings (loss) $0.54 $(0.24) $1.57 $0.71 $2.46 $0.37 Diluted net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $0.54 $(0.19) $1.57 $0.71 $2.45 $0.37 Cumulative effect of a change in accounting principle -- (0.05) -- -- -- -- Net earnings (loss) $0.54 $(0.24) $1.57 $0.71 $2.45 $0.37 Dividends paid per share $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 Q4 Year ended (in millions) Dec. Dec. Dec. Dec. 26, 28, 26, 28, 2004 2003 2004 2003 Net sales and revenues: Weyerhaeuser (1) $4,975 $4,527 $20,170 $17,844 Real Estate and Related Assets 911 618 2,495 2,029 Total net sales and revenues 5,886 5,145 22,665 19,873 Costs and expenses: Weyerhaeuser: Costs of products sold 3,894 3,547 15,249 14,078 Depreciation, amortization and fee stumpage 329 353 1,308 1,307 Selling expenses 120 122 488 457 General and administrative expenses 250 238 955 950 Research and development expenses 17 17 55 51 Taxes other than payroll and income taxes 48 45 194 185 Charges for integration and restructuring 3 25 39 103 Charges for closure of facilities 0 45 14 127 Other operating costs, net (2)(3) 4 (92) (258) (244) 4,665 4,300 18,044 17,014 Real Estate and Related Assets: Costs and operating expenses 647 464 1,763 1,516 Depreciation and amortization 5 3 14 11 Selling expenses 37 31 125 107 General and administrative expenses 26 20 81 63 Taxes other than payroll and income taxes -- 1 2 3 Other operating costs, net 0 (4) (17) (9) 715 515 1,968 1,691 Total costs and expenses 5,380 4,815 20,012 18,705 Operating income 506 330 2,653 1,168 Interest expense and other: Weyerhaeuser: Interest expense incurred (4) (241) (202) (838) (815) Less interest capitalized 5 5 9 19 Equity in income (loss) of affiliates 3 (1) 14 (6) Interest income and other 9 2 24 17 Real Estate and Related Assets: Interest expense incurred (14) (13) (57) (53) Less interest capitalized 14 13 57 53 Equity in income of unconsolidated entities 11 (3) 52 20 Interest income and other 10 8 31 33 Earnings before income taxes and cumulative effect of a change in accounting principle 303 139 1,945 436 Income taxes (104) (47) (662) (148) Earnings before cumulative effect of a change in accounting principle 199 92 1,283 288 Cumulative effect of a change in accounting principle, net of applicable taxes of $6 (5) -- -- -- (11) Net earnings (loss) $199 $92 $1,283 $277 Basic net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $0.82 $0.41 $5.45 $1.30 Cumulative effect of a change in accounting principle -- -- -- (0.05) Net earnings (loss) $0.82 $0.41 $5.45 $1.25 Diluted net earnings (loss) per share: Net earnings (loss) before cumulative effect of a change in accounting principle $0.82 $0.41 $5.43 $1.30 Cumulative effect of a change in accounting principle -- -- -- (0.05) Net earnings (loss) $0.82 $0.41 $5.43 $1.25 Dividends paid per share $0.40 $0.40 $1.60 $1.60 (1) The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million and $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2003 include charges of $24 million, $26 million, $25 million, and $22 million, respectively, or a total of $97 million for the year, for countervailing and anti-dumping duties and related costs. (2) The first, second, third and fourth quarters of 2004 include net foreign exchange gains (losses) of ($9) million, ($7) million, $16 million and $27 million, respectively, for a total year-to-date net gain of $27 million. The 2003 first, second, third and fourth quarters include net foreign exchange gains (losses) of $35 million, $47 million, ($4) million, and $30 million, respectively, for a total net gain of $108 million for the year. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates. (3) The first quarter of 2004 includes a $49 million charge for the settlement of lawsuits involving the market for Pacific Northwest alder logs and a $33 million gain on the sale of an oriented strand board mill in Slave Lake, Alberta. The second quarter includes a $16 million charge resulting from an adverse judgment in a lawsuit involving the market for Pacific Northwest alder logs. The third quarter includes a $271 million gain on the sale of timberlands in Georgia, a $25 million gain from a tenure reallocation agreement with the British Columbia government, and a $20 million gain due to the reduction of the reserve for hardboard siding claims. The fourth quarter includes a net gain of $36 million on the sale of facilities, and charges of $29 million for the impairment of assets in the company's European manufacturing operations, $24 million recognized in connection with a change in the method of estimating workers' compensation liabilities and $23 million for the net book value of technology donated to a university. The first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs. 2003 second quarter includes a $144 million gain on the sales of timberlands in Washington state and a $25 million gain for the settlement of an insurance claim relating to the Cemwood litigation. 2003 third quarter includes a $23 million charge associated with the settlement of a class action linerboard antitrust lawsuit. 2003 fourth quarter includes a $61 million gain on the sales of timberlands in Tennessee and the Carolinas and an $8 million charge associated with the settlement of litigation related to workers' compensation claims. (4) The second and fourth quarters of 2004 include charges of $21 million and $52 million, respectively, for the early extinguishment of debt. (5) Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations, was adopted as of the beginning of 2003. WEYERHAEUSER COMPANY STATISTICAL INFORMATION (unaudited) Net sales and revenues (in millions): Q1 Q2 Q3 March March June June Sept. Sept. 28, 30, 27, 29, 26, 28, 2004 2003 2004 2003 2004 2003 Timberlands: Logs $193 $162 $211 $185 $197 $184 Other products 58 80 66 61 51 62 251 242 277 246 248 246 Wood Products: Softwood lumber 819 752 1,106 846 1,089 890 Plywood 221 165 263 173 237 219 Veneer 11 9 12 9 11 9 Composite panels 108 90 133 104 138 100 OSB 338 167 456 227 341 345 Hardwood lumber 90 89 100 92 89 82 Engineered lumber products 298 254 396 308 418 329 Logs 23 25 38 33 32 19 Other products 239 207 288 256 289 244 2,147 1,758 2,792 2,048 2,644 2,237 Pulp and Paper: Pulp 339 309 371 321 381 333 Paper 535 596 538 546 583 530 Coated groundwood 36 36 37 32 39 39 Liquid packaging board 49 47 53 52 53 50 Other products 10 6 13 6 15 5 969 994 1,012 957 1,071 957 Containerboard, Packaging and Recycling: Containerboard 81 77 80 81 94 73 Packaging 853 879 918 922 916 898 Recycling 80 60 91 63 87 60 Bags 19 20 18 20 20 19 Other products 33 33 34 35 43 40 1,066 1,069 1,141 1,121 1,160 1,090 Real Estate and Related Assets 469 445 524 432 591 534 Corporate and Other 135 106 147 126 135 120 $5,037 $4,614 $5,893 $4,930 $5,849 $5,184 Q4 Year ended Dec. Dec. Dec. Dec. 26, 28, 26, 28, 2004 2003 2004 2003 Timberlands: Logs $221 $199 $822 $730 Other products 105 61 280 264 326 260 1,102 994 Wood Products: Softwood lumber 901 793 3,915 3,281 Plywood 208 227 929 784 Veneer 10 12 44 39 Composite panels 122 99 501 393 OSB 255 370 1,390 1,109 Hardwood lumber 86 87 365 350 Engineered lumber products 393 288 1,505 1,179 Logs 32 28 125 105 Other products 253 238 1,069 945 2,260 2,142 9,843 8,185 Pulp and Paper: Pulp 380 342 1,471 1,305 Paper 570 510 2,226 2,182 Coated groundwood 44 33 156 140 Liquid packaging board 53 49 208 198 Other products 16 9 54 26 1,063 943 4,115 3,851 Containerboard, Packaging and Recycling: Containerboard 113 73 368 304 Packaging 897 845 3,584 3,544 Recycling 89 64 347 247 Bags 23 21 80 80 Other products 46 39 156 147 1,168 1,042 4,535 4,322 Real Estate and Related Assets 911 618 2,495 2,029 Corporate and Other 158 140 575 492 $5,886 $5,145 $22,665 $19,873 Contribution (charge) to earnings: Q1 Q2 Q3 (in millions) March March June June Sept. Sept. 28, 30, 27, 29, 26, 28, 2004 2003 2004 2003 2004 2003 Timberlands (1) $159 $149 $201 $300 $450 $143 Wood Products (2) (3) (4) (5) 173 (150) 448 (53) 362 151 Pulp and Paper (6) (25) 10 14 (7) 80 (18) Containerboard, Packaging and Recycling (7) (8) 24 80 62 108 82 42 Real Estate and Related Assets (9) 120 95 118 91 155 97 Corporate and Other (10) (11) (12) (76) (46) (67) (2) (45) (94) $375 $138 $776 $437 $1,084 $321 Q4 Year ended (in millions) Dec. Dec. Dec. Dec. 26, 28, 26, 28, 2004 2003 2004 2003 Timberlands (1) $217 $185 $1,027 $777 Wood Products (2) (3) (4) (5) 72 111 1,055 59 Pulp and Paper (6) 35 (67) 104 (82) Containerboard, Packaging and Recycling (7) (8) 81 32 249 262 Real Estate and Related Assets (9) 217 109 610 392 Corporate and Other (10) (11) (12) (83) (34) (271) (176) $539 $336 $2,774 $1,232 (1) The 2004 third quarter includes a $271 million gain on the sale of timberlands in Georgia and a $5 million gain from a tenure reallocation agreement with the British Columbia government. The 2003 second quarter includes a $144 million gain on the sales of timberlands in Washington state. The 2003 fourth quarter includes a $61 million gain on the sale of timberlands in Tennessee and the Carolinas. (2) The first, second, third and fourth quarters of 2004 include charges of $26 million, $34 million and $31 million and $27 million, respectively, or $118 million year-to-date, for countervailing and anti-dumping duties and related costs. The first, second, third and fourth quarters of 2003 include charges of $24 million, $26 million, $25 million, and $22 million, respectively, or a total of $97 million for the year, for countervailing and anti-dumping duties and related costs. (3) The first quarter of 2004 includes a $49 million charge for the settlement of lawsuits involving the market for Pacific Northwest alder logs. The second quarter of 2004 includes a $16 million charge resulting from an adverse judgment in a lawsuit involving the market for Pacific Northwest alder logs. The third quarter of 2004 includes a $20 million gain due to the reduction of the reserve for hardboard siding claims. The first quarter of 2003 includes a $79 million charge for a lawsuit involving the market for Pacific Northwest alder logs. (4) The third quarter of 2004 includes a $20 million gain from a tenure reallocation agreement with the British Columbia government. (5) The first quarter of 2004 includes a credit of $2 million for the reversal of closure costs accrued in prior years and a $33 million gain on the sale of an oriented strand board mill in Slave Lake, Alberta. The second quarter of 2004 includes a $5 million net loss on the sale of facilities. The third quarter of 2004 includes a $2 million net gain on the sale or closure of facilities. The fourth quarter of 2004 includes charges of $3 million for the closure of facilities and a gain of $36 million on the sale of facilities. The 2003 first, second, third and fourth quarters include costs for the closure of facilities of $22 million, $11 million, $31 million, and $14 million, respectively. 2003 second quarter also includes a charge of $16 million to recognize impairment associated with an impending facility sale that closed in the fourth quarter of 2003. (6) The 2004 second quarter includes a $2 million asset impairment charge related to assets held for sale. 2003 second quarter includes $3 million of closure costs. 2003 fourth quarter includes $30 million of closure costs. (7) The third quarter of 2003 includes a $23 million charge associated with the settlement of a class action linerboard antitrust lawsuit. (8) The first quarter of 2004 includes closure costs of $3 million. The second quarter of 2004 includes a net gain of $1 million on the sales of a facility and a joint venture investment. The third quarter of 2004 includes closure costs of $12 million, including a pension termination charge of $9 million related to a closure that occurred in a previous year. The fourth quarter of 2004 includes a credit of $3 million for the reversal of closure costs accrued in prior years. The 2003 second quarter includes the reversal of an accrual for closure charges of $2 million. The 2003 third and fourth quarters include closure costs of $17 million and $1 million, respectively. (9) The first quarter of 2004 includes a $22 million gain on a land sale. The third quarter of 2004 includes a gain of $18 million on the sale of a multi-family site. The fourth quarter of 2004 includes a $24 million net gain on land and lot sales. The 2003 first quarter includes gains of $8 million for the sale of two office buildings and $10 for the sale of an apartment complex. The 2003 second quarter includes a gain of $12 million for the sale of commercial property. The 2003 fourth quarter includes a $7 million gain on an acreage sale. (10) The 2003 second quarter includes a $6 million charge to reflect the final settlement in connection with the termination of the former MacMillan Bloedel pension plan for U.S. employees. (11) The fourth quarter of 2004 includes a $7 million gain for the settlement of an insurance claim relating to the Cemwood litigation. The 2003 second quarter includes a $25 million gain for the settlement of an insurance claim relating to the Cemwood litigation. The 2003 fourth quarter includes an $8 million charge for the settlement of litigation related to workers' compensation claims. (12) The fourth quarter of 2004 includes charges of $29 million for the impairment of assets in the company's European manufacturing operations, $24 million recognized in connection with a change in the method of estimating workers' compensation liabilities and $23 million for the net book value of technology donated to a university. (13) The first, second, third and fourth quarters of 2004 include net foreign exchange gains (losses) of ($10) million, ($6) million, $16 million and $26 million, respectively, for a $26 million net gain year-to-date. 2003 results include net foreign exchange gains (losses) of $35 million in the first quarter, $46 million in the second quarter, ($4) million in the third quarter, and $30 million in the fourth quarter, for a net 2003 gain of $107 million. These gains and losses result primarily from fluctuations in Canadian and New Zealand exchange rates. WEYERHAEUSER COMPANY STATISTICAL INFORMATION (unaudited) Third party sales volumes: Q1 Q2 Q3 March March June June Sept. Sept. 28, 30, 27, 29, 26, 28, 2004 2003 2004 2003 2004 2003 Timberlands (thousands): Logs - cunits 1,044 984 954 1,006 904 987 Wood Products (millions): Softwood lumber - board feet 2,054 2,175 2,393 2,385 2,299 2,298 Plywood - square feet (3/8") 642 664 668 697 672 688 Veneer - square feet (3/8") 55 62 60 63 55 56 Composite panels - square feet (3/4") 301 267 324 304 315 302 Oriented strand board - square feet (3/8") 981 1,025 1,143 1,206 1,078 1,129 Hardwood lumber - board feet 102 109 118 115 102 104 Logs - cunits (in thousands) 170 170 279 230 237 189 Pulp and Paper (thousands): Pulp - air-dry metric tons 624 623 642 596 633 632 Paper - tons 741 737 718 690 737 707 Coated groundwood - tons 59 61 61 55 60 64 Liquid packaging board - tons 66 60 72 67 69 64 Paper converting - tons 483 502 472 472 481 478 Containerboard, Packaging and Recycling (thousands): Containerboard - tons 250 221 221 233 245 214 Packaging - MSF 18,146 17,752 18,917 18,577 18,287 18,545 Recycling - tons 678 593 701 566 645 538 Kraft bags and sacks - tons 24 25 23 24 23 25 Real Estate and Related Assets: Single-family homes sold 1,506 1,289 1,564 1,321 1,313 1,239 Single-family homes closed 1,065 1,010 1,216 1,003 1,345 1,182 Single-family homes sold but not closed at end of period 2,702 2,161 3,050 2,479 3,018 2,536 Q4 Year ended Dec. 26, Dec. 28, Dec. 26, Dec. 28, 2004 2003 2004 2003 Timberlands (thousands): Logs - cunits 1,018 1,148 3,920 4,125 Wood Products (millions): Softwood lumber - board feet 2,144 2,123 8,890 8,981 Plywood - square feet (3/8") 647 616 2,629 2,665 Veneer - square feet (3/8") 55 58 225 239 Composite panels - square feet (3/4") 294 289 1,234 1,162 Oriented strand board - square feet (3/8") 1,011 1,001 4,213 4,361 Hardwood lumber - board feet 95 107 417 435 Logs - cunits (in thousands) 248 210 934 799 Pulp and Paper (thousands): Pulp - air-dry metric tons 659 628 2,558 2,479 Paper - tons 680 688 2,876 2,822 Coated groundwood - tons 63 54 243 234 Liquid packaging board - tons 69 65 276 256 Paper converting - tons 458 430 1,894 1,882 Containerboard, Packaging and Recycling (thousands): Containerboard - tons 285 222 1,001 890 Packaging - MSF 17,535 17,867 72,885 72,741 Recycling - tons 670 593 2,694 2,290 Kraft bags and sacks - tons 25 26 95 100 Real Estate and Related Assets: Single-family homes sold 992 1,156 5,375 5,005 Single-family homes closed 1,638 1,431 5,264 4,626 Single-family homes sold but not closed at end of period 2,372 2,261 2,372 2,261 Total production volumes: Q1 Q2 Q3 March March June June Sept. Sept. 28, 30, 27, 29, 26, 28, 2004 2003 2004 2003 2004 2003 Timberlands (thousands): Fee Depletion - cunits 2,265 2,555 2,404 2,479 2,189 2,223 Wood Products (millions): Softwood lumber - board feet 1,760 1,842 1,881 1,825 1,819 1,742 Plywood - square feet (3/8") 422 478 405 412 405 414 Veneer - square feet (3/8") (1) 585 593 609 536 592 536 Composite panels - square feet (3/4") 268 231 281 252 272 253 Oriented strand board - square feet (3/8") 1,031 1,011 1,056 1,051 1,022 1,061 Hardwood lumber - board feet 89 98 96 93 84 93 Pulp and Paper (thousands): Pulp - air-dry metric tons 619 654 636 619 652 604 Paper - tons (2) 743 757 736 712 766 706 Coated groundwood - tons 55 62 61 55 62 61 Liquid packaging board - tons 61 56 67 68 71 72 Paper converting - tons 490 516 470 479 500 472 Containerboard, Packaging and Recycling (thousands): Containerboard - tons (3) 1,503 1,429 1,598 1,568 1,604 1,512 Packaging - MSF 19,493 18,977 20,208 19,955 19,473 19,865 Recycling - tons (4) 1,607 1,528 1,707 1,644 1,703 1,507 Kraft bags and sacks - tons 24 25 23 25 23 23 Q4 Year ended Dec. 26, Dec. 28, Dec. 26, Dec. 28, 2004 2003 2004 2003 Timberlands (thousands): Fee Depletion - cunits 2,155 2,171 9,013 9,428 Wood Products (millions): Softwood lumber - board feet 1,727 1,704 7,187 7,113 Plywood - square feet (3/8") 396 404 1,628 1,708 Veneer - square feet (3/8") (1) 600 534 2,386 2,199 Composite panels - square feet (3/4") 245 252 1,066 988 Oriented strand board - square feet (3/8") 972 1,047 4,081 4,170 Hardwood lumber - board feet 80 89 349 373 Pulp and Paper (thousands): Pulp - air-dry metric tons 639 645 2,546 2,522 Paper - tons (2) 761 658 3,006 2,833 Coated groundwood - tons 62 61 240 239 Liquid packaging board - tons 67 65 266 261 Paper converting - tons 494 415 1,954 1,882 Containerboard, Packaging and Recycling (thousands): Containerboard - tons (3) 1,586 1,494 6,291 6,003 Packaging - MSF 18,648 19,033 77,822 77,830 Recycling - tons (4) 1,701 1,537 6,718 6,216 Kraft bags and sacks - tons 24 25 94 98 (1) Veneer production represents lathe production and includes volumes that are further processed into plywood and engineered lumber products by company mills. (2) Paper production includes unprocessed rolls and converted paper volumes. (3) Containerboard production represents machine production and includes volumes that are further processed into packaging by company facilities. (4) Recycling production includes volumes processed in Weyerhaeuser recycling facilities and brokered volumes. WEYERHAEUSER COMPANY STATISTICAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (in millions) March June Sept. Dec. Dec. 28, 27, 26, 26, 28, Assets 2004 2004 2004 2004 2003 Weyerhaeuser Current assets: Cash and short-term investments $74 $725 $1,227 $1,044 $171 Receivables, less allowances 1,701 1,860 1,804 1,604 1,484 Inventories 2,020 1,936 1,998 2,045 1,911 Prepaid expenses 471 488 527 600 455 Total current assets 4,266 5,009 5,556 5,293 4,021 Property and equipment 12,141 11,883 11,838 11,755 12,243 Construction in progress 251 279 242 269 403 Timber and timberlands at cost, less fee stumpage charged to disposals 4,279 4,244 4,193 4,212 4,287 Investments in and advances to equity affiliates 603 592 632 583 603 Goodwill 3,232 3,218 3,241 3,244 3,237 Deferred pension and other assets 1,287 1,273 1,243 1,223 1,311 26,059 26,498 26,945 26,579 26,105 Real Estate and Related Assets Cash and short-term investments 5 12 8 153 31 Receivables, less allowances 52 42 52 43 64 Real estate and land for sale and development 1,728 1,849 1,929 1,934 1,645 Other assets 293 322 350 342 264 2,078 2,225 2,339 2,472 2,004 Total assets $28,137 $28,723 $29,284 $29,051 $28,109 Liabilities and Shareholders' Interest Weyerhaeuser Current liabilities: Notes payable and commercial paper $103 $2 $3 $3 $4 Current maturities of long-term debt 1,129 445 490 489 90 Accounts payable 1,065 1,114 1,102 1,197 1,041 Accrued liabilities 1,212 1,323 1,337 1,444 1,390 Total current liabilities 3,509 2,884 2,932 3,133 2,525 Long-term debt 10,399 10,325 10,010 9,277 11,503 Deferred income taxes 4,303 4,373 4,451 4,533 4,294 Deferred pension, other postretirement benefits and other liabilities 1,391 1,416 1,429 1,438 1,377 19,602 18,998 18,822 18,381 19,699 Real Estate and Related Assets Notes payable and commercial paper 78 -- -- 2 1 Long-term debt 887 872 869 867 893 Other liabilities 356 443 534 546 407 1,321 1,315 1,403 1,415 1,301 Total liabilities 20,923 20,313 20,225 19,796 21,000 Shareholders' interest 7,214 8,410 9,059 9,255 7,109 Total liabilities and shareholders' interest $28,137 $28,723 $29,284 $29,051 $28,109 STATEMENT OF CASH FLOWS Q1 Q2 Q3 March March June June Sept. Sept. SELECTED INFORMATION (unaudited) 28, 30, 27, 29, 26, 28, (in millions) 2004 2003 2004 2003 2004 2003 (Weyerhaeuser only, excludes Real Estate & Related Assets) Net cash from operations $(89) $(107) $787 $379 $592 $581 Cash paid for property and equipment (79) (128) (80) (172) (93) (146) Cash paid for timberlands reforestation (12) (14) (6) (5) (5) (6) Cash received from issuances of debt -- 1 -- -- -- 12 Revolving credit facilities, notes and commercial paper borrowings, net 67 580 (80) (315) (6) 142 Payments on debt (60) (251) (813) (14) (253) (509) Proceeds from equity offering -- -- 954 -- -- -- Q4 Year ended Dec. Dec. Dec. Dec. 26, 28, 26, 28, (in millions) 2004 2003 2004 2003 (Weyerhaeuser only, excludes Real Estate & Related Assets) Net cash from operations $745 $778 $2,035 $1,631 Cash paid for property and equipment (222) (146) (474) (592) Cash paid for timberlands reforestation (7) (9) (30) (34) Cash received from issuances of debt 1 31 1 44 Revolving credit facilities, notes and commercial paper borrowings, net 35 (707) 16 (300) Payments on debt (742) (50) (1,868) (824) Proceeds from equity offering -- -- 954 -- ### SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WEYERHAEUSER COMPANY By _/s/ Steven J. Hillyard Its: Vice President and Chief Accounting Officer Date: January 21, 2005 -----END PRIVACY-ENHANCED MESSAGE-----