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Press release from Business Wire

Weyerhaeuser Reports Second Quarter Results

Friday, July 30, 2010

Weyerhaeuser Reports Second Quarter Results08:30 EDT Friday, July 30, 2010 FEDERAL WAY, Wash. (Business Wire) -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $14 million for the second quarter, or 7 cents per diluted share, on net sales of $1.8 billion. This compares with a net loss of $106 million, or 50 cents per share, on net sales from continuing operations of $1.4 billion for the same period last year. SIGNIFICANT SECOND QUARTER 2010 AFTER-TAX ITEMS         After-Tax Gain     Gain (Charge)(Charge)per share         ($ millions)     (dollars) Loss on early extinguishment of debt       ($33)     ($0.16) Wood Products asset sales       $5     $0.03   Excluding these items, the company reported net earnings of $42 million, or 20 cents per diluted share, in the second quarter of 2010. SIGNIFICANT SECOND QUARTER 2009 AFTER-TAX ITEMS                       After-Tax     ChargeChargeper share         ($ millions)     (dollars) Alternative fuel mixture credits       $72     $0.34 Impairments and reserves for Real Estate assets       ($36)     ($0.17) Corporate restructuring and asset impairments       ($30)     ($0.14) Closures, restructuring and asset impairments, primarily for Wood Products       ($14)     ($0.07) Litigation and insurance settlements       $14     $0.07 Gain on sale of closed facilities       $13     $0.06   Excluding these items, the company's net loss was $125 million, or 59 cents per share, in the second quarter of 2009. “In the second quarter we returned to profitability and all businesses were cash positive from operations,” said Dan Fulton, president and chief executive officer. “I'm encouraged by our ability to profitably manage operations in an uncertain climate and with the lack of a sustained housing recovery. On July 11, we announced the final major milestone in our plan to become a REIT by declaring our special dividend. We look forward to the benefits that the REIT structure will bring to our shareholders.” SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS   Millions (except per share data)       2Q 2010     2Q 2009     Change Net earnings (loss)       $14     ($106)     $120 Earnings (loss) per diluted share       $0.07     ($0.50)     $0.57 Net sales       $1,805     $1,391     $414               SEGMENT RESULTS FOR SECOND QUARTER(Contributions (Charges) to Pre-Tax Earnings)   Millions       2Q 2010     2Q 2009     Change Timberlands       $70     $66     $4 Wood Products       ($3)     ($162)     $159 Cellulose Fibers       $74     $100     ($26) Real Estate       $27     ($50)     $77               TIMBERLANDS           2Q 2010     1Q 2010     Change Contribution to pre-tax earnings (millions)       $70     $81     ($11)               2Q 2010 Performance – The segment's earnings declined in the second quarter compared to the first, as lower earnings from disposition of non-strategic timberlands were partially offset by increased earnings from operations. Second quarter included pre-tax gains of $14 million from disposition of non-strategic timberlands, compared to $31 million in the first quarter. Earnings from operations increased due to improved log price realizations, primarily in the west. This increase was partially offset by additional silviculture spending and seasonally higher road expenses for US operations. Losses related to international operations were $4 million in the second quarter, unchanged from first quarter levels. Weyerhaeuser continues to defer timber harvest. 3Q 2010 Outlook – Excluding the disposition of non-strategic timberlands, Weyerhaeuser expects third quarter operating earnings from the segment to be lower than second quarter. The company expects lower log prices and seasonally higher silviculture costs. WOOD PRODUCTS           2Q 2010     1Q 2010     Change Charge to pre-tax earnings (millions)       ($3)     ($19)     $16               2Q 2010 Performance – Excluding the pre-tax items noted below, the segment's results improved by $52 million, resulting in a significantly smaller loss in the second quarter. Second quarter included pre-tax gains of $8 million from the sale of assets. First quarter included pre-tax gains of $40 million from the sale of certain British Columbia forest licenses and associated rights, and $4 million from the sale of a sawmill. Although second quarter market conditions were extremely volatile, quarterly average sales realizations improved across nearly all product lines in the second quarter compared to the first. Sales volumes for most products increased moderately compared to very low first quarter levels. These improvements were partially offset by higher log costs. Market conditions deteriorated substantially beginning in mid-May. Sales realizations for lumber and oriented strand board declined sharply. The company also experienced a considerable drop in sales volumes for engineered wood products. The segment reduced operating rates significantly in the latter half of the quarter to match lower market demand. 3Q 2010 Outlook – Weyerhaeuser expects a significantly larger loss from the segment in the third quarter compared to the second quarter. The company expects average price realizations for lumber and oriented strand board to drop below first quarter levels. CELLULOSE FIBERS           2Q 2010     1Q 2010     Change Contribution to pre-tax earnings (millions)       $74     $19     $55               2Q 2010 Performance – The segment's earnings improved substantially in the second quarter compared to the first due to significantly higher average price realizations. Energy costs also declined. As in the first quarter, the segment incurred significant costs associated with planned annual maintenance, with outages at three mills compared to two in the first quarter. 3Q 2010 Outlook – Weyerhaeuser expects third quarter earnings from the segment to improve substantially compared to the second quarter. As no annual maintenance outages are scheduled for the third quarter, the company anticipates lower maintenance costs and improved production. Average pulp price realizations are expected to increase from second quarter levels. REAL ESTATE           2Q 2010     1Q 2010     Change Contribution to pre-tax earnings (millions)       $27     $31     ($4)               2Q 2010 Performance – Second quarter earnings were comparable to first quarter, as a decline in sales of partnership interests was offset by higher earnings from single-family home building operations and increased land and lot sales. Second quarter included earnings from single-family homebuilding operations of $14 million, compared to a loss of $5 million in the first quarter. Second quarter also included gains of $13 million on the sale of land and lots, compared to gains of $3 million in the first quarter. First quarter included gains of $33 million on the sale of two partnership interests. Homebuilding operations closed 625 single-family homes in the second quarter, a 59 percent increase from first quarter. Margins on single-family homes closed also improved. 3Q 2010 Outlook – Weyerhaeuser expects breakeven results from single-family homebuilding operations in the third quarter. The company expects fewer single-family home closings and slightly lower margins. Weyerhaeuser does not anticipate any significant land, lot or partnership sales in the third quarter. ABOUT WEYERHAEUSER Weyerhaeuser Company, one of the world's largest forest products companies, began operations in 1900. We grow and harvest trees, build homes and make a range of forest products essential to everyday lives. We manage our timberland on a sustainable basis in compliance with internationally recognized forestry standards. At the end of 2009, we employed approximately 14,900 employees in 10 countries. We have customers worldwide and generated $5.5 billion in sales in 2009. Our stock trades on the New York Stock exchange under the symbol WY. Additional information about us is available at http://www.weyerhaeuser.com. EARNINGS CALL INFORMATION Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 30 to discuss second quarter results. To access the conference call from within North America, dial (877) 296-9413 (access code – 53832851) at least 15 minutes prior to the call. Those calling from outside North America should dial 1-(706) 679-2458 (access code – 53832851). Replays will be available for one week at (800) 642-1687 (access code – 53832851) from within North America and at 1-(706) 645-9291 (access code – 53832851) from outside North America. The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com and is accessible by selecting the “Q2 2010 Earnings Conference Call” link. The webcast is available through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected site, StreetEvents (http://www.streetevents.com). FORWARD-LOOKING STATEMENTS 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. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news release. Some forward-looking statements discuss the company's plans, strategies and intentions. They use words such as “expects,” “may,” “will,” “believes,” “should,” “approximately,” “anticipates,” “estimates,” and “plans.” In addition, these words may use the positive or negative or other variations of those terms. This release contains forward-looking statements regarding the company's expectations during the third quarter of 2010, including the company's markets; lower log prices, seasonally higher silviculture costs and lower operating earnings in Timberlands; lower sales realizations for lumber and oriented strand board, increased realizations for engineered wood products and lower earnings in the Wood Products segment; lower expenses for annual planned maintenance, increased production, higher pulp price realizations and earnings in the Cellulose Fiber segment; declines in home sale closings earnings in our single-family homebuilding operations; and adjustments in tax rates and tax liabilities related to a REIT conversion. Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to: the effect of general economic conditions, including the level of interest rates, availability of financing for home mortgages, strength of the U.S. dollar, employment rates and housing starts; market demand for the company's products, which is related to the strength of the various U.S. business segments and economic conditions; performance of the company's manufacturing operations, including maintenance requirements; the level of competition from domestic and foreign producers; raw material prices; energy prices; transportation costs; the effect of weather; the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; the successful execution of internal performance plans, including restructurings and cost reduction initiatives; federal tax policies; the effect of forestry, land use, environmental and other governmental regulations; legal proceedings; the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation; changes in accounting principles; performance of pension fund investments and related derivatives; and other factors described under “Risk Factors” in the Company's annual report on Form 10-K. The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It also is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar. Restrictions on international trade or tariffs imposed on imports also may affect the company. WEYERHAEUSER COMPANY               STATISTICAL INFORMATION (unaudited)CONSOLIDATED EARNINGS       (in millions, except per-share figures)Q2Year-to-dateQ1     June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010 Net sales and revenues: Forest Products $ 1,548 $ 1,192 $ 2,816 $ 2,295 $ 1,268 Real Estate   257       199     408       371     151   Total net sales and revenues   1,805       1,391     3,224       2,666     1,419     Costs and expenses: Forest Products: Costs of products sold 1,175 1,050 2,183 2,028 1,008 Alternative fuel mixture credits - (107 ) - (107 ) - Depreciation, depletion and amortization 115 125 231 247 116 Selling expenses 36 33 70 76 34 General and administrative expenses 80 83 162 179 82 Research and development expenses 8 15 16 28 8 Charges for restructuring and closures 2 46 2 128 - Impairment of goodwill and other assets - 20 1 38 1 Other operating income, net   (8 )     (77 )   (79 )     (71 )   (71 )   1,408       1,188     2,586       2,546     1,178   Real Estate: Costs and operating expenses 189 164 310 315 121 Depreciation and amortization 5 4 8 8 3 Selling expenses 19 20 34 42 15 General and administrative expenses 17 17 33 45 16 Other operating costs, net 2 7 3 7 1 Impairment of long-lived assets and other related charges   1       53     2       95     1     233       265     390       512     157   Total costs and expenses   1,641       1,453     2,976       3,058     1,335     Operating income (loss) 164 (62 ) 248 (392 ) 84 Interest expense and other: Forest Products: Interest expense incurred (105 ) (107 ) (211 ) (215 ) (106 ) Less: interest capitalized - 2 1 4 1 Loss on early extinguishment of debt (49 ) - (49 ) - - Interest income and other 12 13 21 27 9 Equity in income (loss) of equity affiliates (3 ) - (9 ) 3 (6 ) Real Estate: Interest expense incurred (6 ) (7 ) (12 ) (14 ) (6 ) Less: interest capitalized 5 7 10 14 5 Interest income and other - 1 3 2 3 Equity in income of equity affiliates 3 11 39 13 36 Impairments of investments and other related charges   -       (6 )   -       (32 )   -   Earnings (loss) before income taxes 21 (148 ) 41 (590 ) 20 Income tax benefit (provision) (1)   (7 )     32     (45 )     208     (38 ) Net earnings (loss) 14 (116 ) (4 ) (382 ) (18 ) Less: (income) loss attributable to noncontrolling interests   -       10     (2 )     12     (2 ) Net earnings (loss) attributable to Weyerhaeuser common shareholders $ 14     $ (106 ) $ (6 )   $ (370 ) $ (20 )   Basic earnings (loss) per share attributable to Weyerhaeuser common shareholders $ 0.07     $ (0.50 ) $ (0.03 )   $ (1.75 ) $ (0.10 )   Diluted earnings (loss) per share attributable to Weyerhaeuser common shareholders $ 0.07     $ (0.50 ) $ (0.03 )   $ (1.75 ) $ (0.10 )   Dividends paid per share $ 0.05     $ 0.25   $ 0.10     $ 0.50   $ 0.05     Weighted average shares outstanding (in thousands): Basic 211,600 211,356 211,521 211,328 211,440 Diluted 212,103 211,356 211,521 211,328 211,440   Common shares outstanding at end of period (in thousands)   211,609       211,357     211,609       211,357     211,557     (1) First quarter 2010 includes $31 million in tax charges related to the elimination of the ability to claim a tax deduction for prescription drug benefits provided to retirees and reimbursed under the Medicare Part D subsidy beginning in 2013 and state tax rate changes.   WEYERHAEUSER COMPANY               STATISTICAL INFORMATION (unaudited)NET SALES AND REVENUES       (in millions)Q2Year-to-dateQ1   June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010 Timberlands: Logs: West $ 125 $ 87 $ 207 $ 169 $ 82 South 37 43 64 76 27 Canada   -     -   9     2   9 Total logs 162 130 280 247 118 Pay as cut timber sales 9 7 17 14 8 Timberlands exchanges and non-strategic dispositions (1) 13 40 48 44 35 Higher and better use land sales (1) 7 4 12 5 5 Minerals, oil and gas 16 14 31 28 15 Products from international operations (2) 17 10 32 17 15 Other products   1     3   7     10   6   225     208   427     365   202 Wood Products: Structural lumber 308 216 549 428 241 Engineered solid section 79 62 145 117 66 Engineered I-Joists 49 43 97 76 48 Oriented strand board 116 58 182 113 66 Softwood plywood 23 14 39 28 16 Hardwood lumber 64 56 118 107 54 Other products produced 38 39 73 82 35 Other products purchased for resale   112     106   190     185   78   789     594   1,393     1,136   604 Cellulose Fibers: Pulp 354 255 675 536 321 Liquid packaging board 90 77 161 143 71 Other products   24     17   42     34   18   468     349   878     713   410 Real Estate: Single family housing 233 180 376 342 143 Land 23 18 30 27 7 Other   1     1   2     2   1   257     199   408     371   151   Corporate and Other 66 41 118 81 52               $ 1,805   $ 1,391 $ 3,224   $ 2,666 $ 1,419   (1) Higher and better use timberlands and non-strategic dispositions are sold through Forest Products subsidiaries. (2) Includes logs, plywood and hardwood lumber harvested or produced by our international operations, primarily in South America.   WEYERHAEUSER COMPANY               STATISTICAL INFORMATION (unaudited)NET CONTRIBUTION TO PRE-TAX EARNINGS(in millions)       Q2Year-to-dateQ1June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010 Timberlands $ 70 $ 66 $ 151 $ 106 $ 81 Wood Products (3 ) (162 ) (22 ) (428 ) (19 ) Cellulose Fibers 74 100 93 131 19 Real Estate 27 (50 ) 58 (146 ) 31 Corporate and Other   8       13     20       (30 )   12   $ 176     $ (33 ) $ 300     $ (367 ) $ 124     WEYERHAEUSER COMPANYSTATISTICAL INFORMATION (unaudited)FOOTNOTES TO NET CONTRIBUTION TO PRE-TAX EARNINGS   (in millions)                     Year-to-date   Wood Products includes: Q2 2010   Q2 2009Q2 2010   Q2 2009Q1 2010 Charges for restructuring and closures $ - $ - $ -   $ (63 ) $ - Goodwill impairments - - - (3 ) - Other asset impairments - (16 ) - (21 ) - Reserve for litigation - - - (19 ) - Gain on sale of operations - - 4 - 4 Gain on sale of property   8       1     48     1     40         Year-to-date   Cellulose Fibers includes: Q2 2010   Q2 2009Q2 2010   Q2 2009Q1 2010 Charges for restructuring and closures $ - $ - $ - $ (1 ) $ - Alternative fuel mixture credits   -       107     -     107     -         Year-to-date   Real Estate includes: Q2 2010   Q2 2009Q2 2010   Q2 2009Q1 2010 Charges for restructuring and closures $ - $ (2 ) $ - $ (6 ) $ - Impairment of assets and other related charges - attributable to Weyerhaeuser shareholders - (50 ) - (116 ) - Impairment of assets and other related charges - attributable to noncontrolling interests - (9 ) - (11 ) - Sale of partnership interests - 9 33 9 33 Net gain on land and lot sales   13       7     16     13     3         Year-to-date   Corporate and Other includes: Q2 2010   Q2 2009Q2 2010   Q2 2009Q1 2010 Charges for restructuring and closures $ - $ (41 ) $ - $ (59 ) $ - Asset impairments - (4 ) - (14 ) - Net foreign exchange gains (losses) (8 ) 21 2 16 10 Pension and postretirement credits (1)   22       37     38     61     16   (1) Excludes pension and postretirement included in charges for restructuring and closures.   WEYERHAEUSER COMPANY               STATISTICAL INFORMATION (unaudited)THIRD PARTY SALES VOLUMES             Q2Year-to-dateQ1June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010 Timberlands (thousands): Logs - cubic meters: West 1,276 1,283 2,251 2,373 975 South 827 1,062 1,461 1,831 634 Canada 15 3 274 67 259 International 68 73 146 150 78   Wood Products (millions): Structural lumber - board feet 884 885 1,645 1,766 761 Engineered solid section - cubic feet 4 4 8 7 4 Engineered I-Joists - lineal feet 41 36 85 62 44 Oriented strand board - square feet (3/8") 437 374 771 721 334 Softwood plywood - square feet (3/8") 75 55 135 106 60 Hardwood lumber - board feet 76 69 143 127 67   Cellulose Fibers (thousands): Pulp - air-dry metric tons 413 395 835 804 422 Liquid packaging board - tons 83 77 150 141 67   Real Estate: Single-family homes sold 491 790 1,111 1,245 620 Single-family homes closed 625 464 1,018 893 393 Single-family homes sold but not closed at end of period (backlog) 743   910 743   910 877   WEYERHAEUSER COMPANY               STATISTICAL INFORMATION (unaudited)TOTAL PRODUCTION VOLUMES             Q2Year-to-dateQ1June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010 Timberlands (thousands): Fee depletion - cubic meters: West 1,404 1,910 2,835 3,588 1,431 South 1,881 2,495 4,021 4,875 2,140 International 89 142 181 249 92   Wood Products (millions): Structural lumber - board feet 846 792 1,647 1,653 801 Engineered solid section - cubic feet 4 3 8 5 4 Engineered I-Joists - lineal feet 41 24 82 44 41 Oriented strand board - square feet (3/8") 468 369 846 704 378 Softwood plywood - square feet (3/8") 64 37 112 65 48 Hardwood lumber - board feet 61 48 120 103 59   Cellulose Fibers (thousands): Pulp - air-dry metric tons 414 368 851 783 437 Liquid packaging board - tons 81   77 150   142 69   WEYERHAEUSER COMPANY                   STATISTICAL INFORMATION (unaudited)CONDENSED CONSOLIDATED BALANCE SHEETS     (in millions)         June 30,March 31,Dec. 31,   201020102009Assets   Forest Products Current assets: Cash and cash equivalents $ 1,839 $ 2,143 $ 1,862 Short-term investments 3 1 49 Receivables, less allowances 481 462 370 Receivables for taxes 51 34 602 Receivable from pension trust - 96 146 Inventories 472 515 447 Prepaid expenses 91 93 82 Deferred tax assets   136   136   109 Total current assets   3,073   3,480   3,667 Property and equipment, net 3,423 3,539 3,611 Construction in progress 77 69 52 Timber and timberlands at cost, less depletion charged to disposals 4,022 4,016 4,010 Investments in and advances to equity affiliates 192 192 197 Goodwill 40 40 40 Deferred pension and other assets 948 904 756 Restricted assets held by special purpose entities   915   914   915   12,690   13,154   13,248 Real Estate Cash and cash equivalents 7 17 7 Receivables, less allowances 42 34 32 Inventory 1,552 1,553 1,515 Investments in and advances to equity affiliates 18 18 17 Deferred tax assets 270 271 299 Other assets 123 122 126 Consolidated assets not owned   6   6   6   2,018   2,021   2,002 Total assets $ 14,708 $ 15,175 $ 15,250   Liabilities   Forest Products Current liabilities: Notes payable and commercial paper $ 1 $ 1 $ 4 Current maturities of long-term debt 3 3 3 Accounts payable 322 329 317 Accrued liabilities   663   603   631 Total current liabilities   989   936   955 Long-term debt 4,734 5,281 5,281 Deferred income taxes 1,642 1,578 1,538 Deferred pension, other postretirement benefits and other liabilities 1,854 1,942 2,000 Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities   770   767   768   9,989   10,504   10,542 Real Estate Long-term debt 390 390 402 Other liabilities   218   224   252   608   614   654 Total liabilities   10,597   11,118   11,196   Equity   Weyerhaeuser shareholders' interest 4,100 4,046 4,044 Noncontrolling interest   11   11   10 Total equity   4,111   4,057   4,054 Total liabilities and equity $ 14,708 $ 15,175 $ 15,250   WEYERHAEUSER COMPANY               STATISTICAL INFORMATION (unaudited)STATEMENT OF CASH FLOWS       SELECTED INFORMATIONQ2Year-to-dateQ1(in millions)June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010     Net cash from operations $ 243 $ 126 $ 433 $ (310 ) $ 190 Cash paid for property and equipment (1) (32 ) (32 ) (77 ) (85 ) (45 ) Cash paid for timberlands reforestation (1) (7 ) (7 ) (20 ) (22 ) (13 ) Acquisition of timberlands (11 ) - (20 ) (7 ) (9 ) Payments on debt (597 ) (18 ) (614 ) (19 ) (17 ) Proceeds from the sale of assets and operations 15 29 130 37 115 Cash paid for dividends (10 ) (53 ) (21 ) (106 ) (11 ) Repayments from (loan to) pension trust   96       -     146       (85 )   50     (1) Capital spending is for Forest Products only and excludes Real Estate.   Forest Products Working Capital by Business Segment         June 30,June 30,March 31,2010   20092010 Timberlands $ 39 $ 36 $ 24 Wood Products 308 279 360 Cellulose Fibers 268 284 244 Corporate and Other (1)   1,469       1,539     1,916   $ 2,084     $ 2,138   $ 2,544     (1) Corporate and Other segment holds payroll and other liabilities related to the segments and income taxes receivable related to Real Estate.         Forest Products Capital Expenditures by Business SegmentQ2Year-to-dateQ1June 30,June 30,June 30,June 30,March 31,2010   20092010   20092010 Timberlands $ 15 $ 21 $ 35 $ 49 $ 20 Wood Products 5 4 7 29 2 Cellulose Fibers 19 10 58 18 39 Corporate and Other   -       4     1       11     1   $ 39     $ 39   $ 101     $ 107   $ 62     WEYERHAEUSER COMPANY                     STATISTICAL INFORMATION (unaudited)APPENDIXSTATEMENT OF OPERATIONS BY BUSINESS SEGMENT(Dollar amounts in millions)   Q2.2010WoodCelluloseCorporate andTotal ForestTimberlands   Products   Fibers   Other   Eliminations   Products   Real Estate   Total Trade sales and revenues (unaffiliated customers) $ 225 $ 789 $ 468 $ 66 $ - $ 1,548 $ 257 $ 1,805 Intersegment sales   123       20       -       5       (148 )     -       -       -   Net sales and revenues   348       809       468       71       (148 )     1,548       257       1,805   Costs and expenses: Costs of products sold 238 698 339 48 (148 ) 1,175 189 1,364 Depreciation, depletion and amortization 22 45 36 12 - 115 5 120 Selling expenses 2 30 3 1 - 36 19 55 General and administrative expenses 21 42 17 - - 80 17 97 Research and development expenses 5 2 2 (1 ) - 8 - 8 Charges for restructuring and closures - 1 - 1 - 2 - 2 Impairment of goodwill and other assets - - - - - - 1 1 Other operating costs (income), net   (9 )     (5 )     (5 )     11       -       (8 )     2       (6 ) Total costs and expenses   279       813       392       72       (148 )     1,408       233       1,641   Operating income (loss) 69 (4 ) 76 (1 ) - 140 24 164 Interest income and other 1 1 - 10 - 12 - 12 Equity in income (loss) of equity affiliates   -       -       (2 )     (1 )     -       (3 )     3       -   Net contribution to earnings $ 70     $ (3 )   $ 74     $ 8     $ -     $ 149     $ 27       176   Interest expense, net of capitalized interest (106 ) Loss on early extinguishment of debt   (49 ) Earnings before income taxes 21 Income tax provision   (7 ) Net earnings attributable to Weyerhaeuser common shareholders $ 14       Q2.2009WoodCelluloseCorporate andTotal ForestTimberlands   Products   Fibers   Other   Eliminations   Products   Real Estate   Total Trade sales and revenues (unaffiliated customers) $ 208 $ 594 $ 349 $ 41 $ - $ 1,192 $ 199 $ 1,391 Intersegment sales   115       14       -       3       (132 )     -       -       -   Net sales and revenues   323       608       349       44       (132 )     1,192       199       1,391   Costs and expenses: Costs of products sold 212 630 307 33 (132 ) 1,050 164 1,214 Alternative fuel mixture credits - - (107 ) - - (107 ) - (107 ) Depreciation, depletion and amortization 26 51 35 13 - 125 4 129 Selling expenses 2 26 4 1 - 33 20 53 General and administrative expenses 14 39 13 17 - 83 17 100 Research and development expenses 2 6 1 6 - 15 - 15 Charges for restructuring and closures 5 - - 41 - 46 - 46 Impairment of goodwill and other assets - 16 - 4 - 20 - 20 Real Estate impairments and other related charges - - - - - - 53 53 Other operating costs (income), net   (4 )     3       (1 )     (75 )     -       (77 )     7       (70 ) Total costs and expenses   257       771       252       40       (132 )     1,188       265       1,453   Operating income (loss) 66 (163 ) 97 4 - 4 (66 ) (62 ) Interest income and other - 1 1 11 - 13 1 14 Equity in income (loss) of equity affiliates - - 2 (2 ) - - 11 11 Investment impairments and other related charges - - - - - - (6 ) (6 ) Loss attributable to noncontrolling interests   -       -       -       -       -       -       10       10   Net contribution to earnings $ 66     $ (162 )   $ 100     $ 13     $ -     $ 17     $ (50 )     (33 ) Interest expense, net of capitalized interest   (105 ) Loss before income taxes (138 ) Income tax benefit   32   Net loss attributable to Weyerhaeuser common shareholders $ (106 )     Q1.2010WoodCelluloseCorporate andTotal ForestTimberlands   Products   Fibers   Other   Eliminations   Products   Real Estate   Total Trade sales and revenues (unaffiliated customers) $ 202 $ 604 $ 410 $ 52 $ - $ 1,268 $ 151 $ 1,419 Intersegment sales   171       16       -       4       (191 )     -       -       -   Net sales and revenues   373       620       410       56       (191 )     1,268       151       1,419   Costs and expenses: Costs of products sold 254 572 331 42 (191 ) 1,008 121 1,129 Depreciation, depletion and amortization 23 45 36 12 - 116 3 119 Selling expenses 2 28 3 1 - 34 15 49 General and administrative expenses 18 39 17 8 - 82 16 98 Research and development expenses 4 1 2 1 - 8 - 8 Charges for restructuring and closures 1 - - (1 ) - - - - Impairment of goodwill and other assets - 1 - - - 1 1 2 Other operating costs (income), net   (10 )     (46 )     (2 )     (13 )     -       (71 )     1       (70 ) Total costs and expenses   292       640       387       50       (191 )     1,178       157       1,335   Operating income (loss) 81 (20 ) 23 6 - 90 (6 ) 84 Interest income and other - 1 - 8 - 9 3 12 Equity in income (loss) of equity affiliates - - (4 ) (2 ) - (6 ) 36 30 Income attributable to noncontrolling interests   -       -       -       -       -       -       (2 )     (2 ) Net contribution to earnings $ 81     $ (19 )   $ 19     $ 12     $ -     $ 93     $ 31       124   Interest expense, net of capitalized interest   (106 ) Earnings before income taxes 18 Income tax provision   (38 ) Net loss attributable to Weyerhaeuser common shareholders $ (20 )     Q2.2010 Year-to-dateWoodCelluloseCorporate andTotal ForestTimberlands   Products   Fibers   Other   Eliminations   Products   Real Estate   Total Trade sales and revenues (unaffiliated customers) $ 427 $ 1,393 $ 878 $ 118 $ - $ 2,816 $ 408 $ 3,224 Intersegment sales   294       36       -       9       (339 )     -       -       -   Net sales and revenues   721       1,429       878       127       (339 )     2,816       408       3,224   Costs and expenses: Costs of products sold 492 1,270 670 90 (339 ) 2,183 310 2,493 Depreciation, depletion and amortization 45 90 72 24 - 231 8 239 Selling expenses 4 58 6 2 - 70 34 104 General and administrative expenses 39 81 34 8 - 162 33 195 Research and development expenses 9 3 4 - - 16 - 16 Charges for restructuring and closures 1 1 - - - 2 - 2 Impairment of goodwill and other assets - 1 - - - 1 2 3 Other operating costs (income), net   (19 )     (51 )     (7 )     (2 )     -       (79 )     3       (76 ) Total costs and expenses   571       1,453       779       122       (339 )     2,586       390       2,976   Operating income (loss) 150 (24 ) 99 5 - 230 18 248 Interest income and other 1 2 - 18 - 21 3 24 Equity in income (loss) of equity affiliates - - (6 ) (3 ) - (9 ) 39 30 Income attributable to noncontrolling interests   -       -       -       -       -       -       (2 )     (2 ) Net contribution to earnings $ 151     $ (22 )   $ 93     $ 20     $ -     $ 242     $ 58       300   Interest expense, net of capitalized interest (212 ) Loss on early extinguishment of debt   (49 ) Earnings before income taxes 39 Income tax provision   (45 ) Net loss attributable to Weyerhaeuser common shareholders $ (6 )     Q2.2009 Year-to-dateWoodCelluloseCorporate andTotal ForestTimberlands   Products   Fibers   Other   Eliminations   Products   Real Estate   Total Trade sales and revenues (unaffiliated customers) $ 365 $ 1,136 $ 713 $ 81 $ - $ 2,295 $ 371 $ 2,666 Intersegment sales   286       33       -       5       (324 )     -       -       -   Net sales and revenues   651       1,169       713       86       (324 )     2,295       371       2,666   Costs and expenses: Costs of products sold 478 1,226 589 59 (324 ) 2,028 315 2,343 Alternative fuel mixture credits - - (107 ) - - (107 ) - (107 ) Depreciation, depletion and amortization 49 101 70 27 - 247 8 255 Selling expenses 4 62 8 2 - 76 42 118 General and administrative expenses 32 92 29 26 - 179 45 224 Research and development expenses 4 9 3 12 - 28 - 28 Charges for restructuring and closures 5 63 1 59 - 128 - 128 Impairment of goodwill and other assets - 24 - 14 - 38 - 38 Real Estate impairments and other related charges - - - - - - 95 95 Other operating costs (income), net   (26 )     21       (4 )     (62 )     -       (71 )     7       (64 ) Total costs and expenses   546       1,598       589       137       (324 )     2,546       512       3,058   Operating income (loss) 105 (429 ) 124 (51 ) - (251 ) (141 ) (392 ) Interest income and other 1 1 1 24 - 27 2 29 Equity in income (loss) of equity affiliates - - 6 (3 ) - 3 13 16 Investment impairments and other related charges - - - - - - (32 ) (32 ) Loss attributable to noncontrolling interests   -       -       -       -       -       -       12       12   Net contribution to earnings $ 106     $ (428 )   $ 131     $ (30 )   $ -     $ (221 )   $ (146 )     (367 ) Interest expense, net of capitalized interest   (211 ) Loss before income taxes (578 ) Income tax benefit   208   Net loss attributable to Weyerhaeuser common shareholders $ (370 )