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Press release from Business Wire

Weyerhaeuser Reports Fourth Quarter, Full Year Results

<ul> <li class='bwlistitemmargb'> <b>Fourth Quarter Net Earnings of $171 million, or $0.32 Per Share</b> </li> <li class='bwlistitemmargb'> <b>Full Year Net Earnings of $1.281 billion, or $3.99 Per Share</b> </li> <li class='bwlistitemmargb'> <b>Includes Earnings from Income Tax Adjustments</b> </li> <li class='bwlistitemmargb'> <b>Increase in Shares Outstanding due to Sept. 2010 Special Dividend</b> </li> </ul>

Friday, February 04, 2011

Weyerhaeuser Reports Fourth Quarter, Full Year Results03:05 EST Friday, February 04, 2011 FEDERAL WAY, Wash. (Business Wire) -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $171 million for the fourth quarter, or 32 cents per diluted share, on net sales of $1.7 billion. This compares with a net loss of $175 million on net sales of $1.5 billion for the same period last year. Earnings for the fourth quarter of 2010 include after-tax gains of $119 million from special items. Excluding those items, the company reported net earnings of $52 million, or 10 cents per diluted share, in the fourth quarter of 2010. This compares to a net loss before special items of $109 million in the fourth quarter of 2009. For the full year 2010, Weyerhaeuser reported net earnings of $1.281 billion, or $3.99 per diluted share, on net sales of $6.6 billion. This compares with a net loss of $545 million on net sales of $5.5 billion for the full year 2009. Earnings for the full year 2010 include $1.064 billion from income tax adjustments related to Weyerhaeuser's conversion to a Real Estate Investment Trust (REIT). “The actions we took in 2010 enhanced our ability to return value to our shareholders through our long-term strategy,” said Dan Fulton, president and chief executive officer. “The most significant, our conversion to a REIT, enhances our ability to manage and grow our core asset – more than six million acres of valuable timberlands. “The record year for our Cellulose Fibers segment due to strong market conditions and excellent operational performance highlighted our 2010 results,” Fulton said. “Extremely challenging housing market conditions affected the financial performance of our Timberlands, Wood Products and Real Estate segments. We anticipate these market challenges will continue in 2011. However, I expect better performance due to ongoing operational improvements, which will create cost efficiencies and enhance the relative competitiveness of our businesses.” WEYERHAEUSER FINANCIAL HIGHLIGHTS                     (millions, except per share data)4Q 20103Q 20104Q 2009   Net sales $1,664 $1,664 $1,455   Net earnings (loss) $171 $1,116 ($175) Weighted average shares outstanding, diluted 538 318 211 Earnings (loss) per diluted share $0.32 $3.50 ($0.83)   Net earnings (loss) before special items $52 $81 ($109) Earnings (loss) per diluted share before special items $0.10 $0.25 ($0.52)   As of the end of the fourth quarter of 2010, Weyerhaeuser had 538 million shares outstanding on a diluted basis. Weyerhaeuser's shares outstanding increased during the third quarter of 2010 due to payment of a special dividend of approximately 324 million shares of common stock and $560 million in cash, paid in conjunction with the company's conversion to a REIT. TIMBERLANDSFINANCIAL HIGHLIGHTS (millions)         4Q 2010       3Q 2010       4Q 2009 Net sales $207 $240 $156 Contribution to pre-tax earnings before special items $56 $75 $28 Pre-tax gains (charges) from special items $0 $0 ($15) GAAP contribution to pre-tax earnings $56 $75 $13   4Q 2010 Performance – Fourth quarter earnings declined $19 million compared with third quarter, primarily due to fewer dispositions of non-strategic timberlands. Per unit logging costs also increased, as western operations took downtime to match lower seasonal and market demand. Fourth quarter included $19 million from disposition of non-strategic timberlands, compared with $34 million in the third quarter. Weyerhaeuser continues to defer timber harvest. 1Q 2011 Outlook – Excluding the disposition of non-strategic timberlands,Weyerhaeuser expects higher earnings in the first quarter compared with the fourth. The company expects higher selling prices for western logs and seasonally higher harvest volumes. A sale of approximately 82,000 acres of non-strategic timberlands in southwest Washington announced this morning will contribute approximately $150 million in pre-tax earnings. WOOD PRODUCTSFINANCIAL HIGHLIGHTS (millions)         4Q 2010       3Q 2010       4Q 2009 Net sales $572 $626 $510 Charge to pre-tax earnings before special items ($85) ($100) ($123) Pre-tax gains (charges) from special items ($103) $0 ($85) GAAP charge to pre-tax earnings ($188) ($100) ($208)   4Q 2010 Performance – The segment's results before special items improved $15 million compared with the third quarter. Fourth quarter included special items of $103 million for asset impairments, closures and restructuring. Fourth quarter results improved due to slightly lower log costs and reduced selling, general and administrative expenses. These factors were partially offset by seasonally lower sales volumes. 1Q 2011 Outlook – Excluding the effect of fourth quarter special items, Weyerhaeuser anticipates a smaller loss from the segment in the first quarter due to improved operating rates, higher selling prices, and continued cost reductions. CELLULOSE FIBERSFINANCIAL HIGHLIGHTS (millions)         4Q 2010       3Q 2010       4Q 2009 Net sales $511 $522 $408 Contribution to pre-tax earnings before special items $138 $181 $34 Pre-tax gains (charges) from special items $0 $0 $113 GAAP contribution to pre-tax earnings $138 $181 $147   4Q 2010 Performance – The segment's fourth quarter earnings declined $43 million compared with third quarter due to increased maintenance costs and lower production resulting from an annual outage at the New Bern, N.C. mill. Fiber, chemical and energy costs also increased. There were no maintenance outages in the third quarter. 1Q 2011 Outlook – Weyerhaeuser expects Cellulose Fibers earnings to decline in the first quarter due to an increase in the number of scheduled annual maintenance outages. REAL ESTATEFINANCIAL HIGHLIGHTS (millions)         4Q 2010       3Q 2010       4Q 2009 Net sales $305 $210 $337 Contribution to pre-tax earnings before special items $33 $20 $11 Pre-tax gains (charges) from special items ($20) $0 ($100) GAAP contribution (charge) to pre-tax earnings $13 $20 ($89)   4Q 2010 Performance – Thesegment's earnings before special items increased $13 million compared with the third quarter. Fourth quarter included special items of $20 million for asset impairments and restructuring. Earnings from single-family homebuilding rose due to additional home sale closings and higher margins. Home sale closings increased 21 percent compared with the third quarter to 606 single-family homes. Margins on homes closed improved slightly due to mix. Fourth quarter earnings included $6 million from the sale of land, lots and apartments, compared with $4 million from sale of land and lots in the third quarter. 1Q 2011 Outlook – Weyerhaeuser expects a small loss from single-family homebuilding operations in the first quarter due to seasonally fewer home sale closings and lower margins. OTHER Fourth quarter earnings include a pre-tax gain of $46 million on the sale of five short line railroads. Fourth quarter also includes income tax adjustments of $177 million, including benefits of $149 million from the Cellulosic Biofuel Producers Credit and $22 million from reversal of deferred tax liabilities related to the company's REIT conversion. 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 2010, we employed approximately 14,000 employees in 10 countries. We have customers worldwide and generated $6.6 billion in sales in 2010. 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 Feb. 4 to discuss fourth quarter results. To access the conference call from within North America, dial (877) 296-9413 (access code – 29868228) at least 15 minutes prior to the call. Those calling from outside North America should dial 1-(706) 679-2458 (access code – 29868228). Replays will be available for one week at (800) 642-1687 (access code – 29868228) from within North America and at 1-(706) 645-9291 (access code – 29868228) 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 “Q4 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 first quarter of 2011, including housing market conditions; market challenges for our Timberlands, Wood Products and Real Estate segments; higher selling prices for western logs and seasonally higher harvest volumes in Timberlands; improved operating rates, higher selling prices and cost reductions in the Wood Products segment; continued strong pricing and increased scheduled maintenance in the Cellulose Fiber segment; and fewer home sale closings and lower margins and prices in our single-family homebuilding operations. 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 employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar; 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; raw material prices; the successful execution of internal performance plans, including restructurings and cost reduction initiatives; energy prices; the level of competition from domestic and foreign producers; the effect of weather; transportation costs; the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; 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 CompanyQ4.2010 Analyst Package Preliminary results, subject to audit                                 Consolidated Statement of Operations                       in millions Q1Q2Q3Q4Year-to-dateMarch 31,June 30,Sept 30,Dec 31,Dec 31,Dec 31,Dec 31,   2010     2010     2010     2010         2009     2010         2009     Net sales and revenues$1,419$1,805$1,664$1,664$1,455$6,552$5,528   Costs of products sold   1,232     1,467     1,331     1,362         1,321     5,392         5,127   Gross margin1873383333021341,160401   Selling, general and administrative expenses 163 169 167 178 168 677 709 Research and development expenses 8 8 8 10 13 34 51 Alternative fuel mixture credit - - - - (115 ) - (344 ) Charges for restructuring, closures and impairments 2 4 16 127 258 149 698 Other operating income, net   (70 )   (7 )   (25 )   (66 )       (12 )   (168 )       (266 ) Operating income (loss)   84     164     167     53         (178)   468         (447)   Interest income and other 42 12 19 10 14 83 74 Impairments of investments and other related charges - - - (3 ) 25 (3 ) (7 ) Interest expense, net of capitalized interest   (106 )   (155 )   (95 )   (96 )       (143 )   (452 )       (462 ) Earnings (loss) before taxes 20 21 91 (36 ) (282 ) 96 (842 ) Income tax benefit (provision)   (38 )   (7 )   1,025     207         101     1,187         274   Net earnings (loss) (18 ) 14 1,116 171 (181 ) 1,283 (568 ) Less: net (earnings) loss attributable to noncontrolling interests   (2 )   -     -     -         6     (2 )       23   Net earnings (loss) attributable to Weyerhaeuser common shareholders$(20)$14   $1,116   $171       $(175)$1,281       $(545)   Per Share Information                       Q1Q2Q3Q4Year-to-dateMarch 31,June 30,Sept 30,Dec 31,Dec 31,Dec 31,Dec 31,   2010     2010     2010     2010         2009     2010         2009   Basic earnings (loss) per share attributable to Weyerhaeuser common shareholders $ (0.10 ) $ 0.07 $ 3.52 $ 0.32 $ (0.83 ) $ 4.00 $ (2.58 )   Diluted earnings (loss) per share attributable to Weyerhaeuser common shareholders $ (0.10 ) $ 0.07 $ 3.50 $ 0.32 $ (0.83 ) $ 3.99 $ (2.58 )   Dividends paid per share $ 0.05 $ 0.05 $ 26.46 $ 0.05 $ 0.05 $ 26.61 $ 0.60   Weighted average shares outstanding (in thousands): Basic 211,440 211,600 317,369 535,956 211,358 319,976 211,342 Diluted 211,440 212,103 318,360 538,376 211,358 321,096 211,342 Common shares outstanding at end of period (in thousands)   211,557     211,609     535,935     535,976         211,359     535,976         211,359     Weyerhaeuser CompanyQ4.2010 Analyst Package Preliminary results, subject to audit                         Consolidated Balance Sheet           in millions March 31,June 30,Sept 30,Dec 31,Dec 31,   2010   2010   2010   2010   2009Assets   Forest Products Current assets: Cash and cash equivalents $ 2,143 $ 1,839 $ 1,366 $ 1,466 $ 1,862 Short-term investments 1 3 - - 49 Receivables, less allowances 462 481 477 432 370 Receivables for taxes 34 51 81 19 602 Receivable from pension trust 96 - - - 146 Inventories 515 472 479 478 447 Prepaid expenses 93 91 87 81 82 Deferred tax assets   136   136   122   113   109 Total current assets   3,480   3,073   2,612   2,589   3,667 Property and equipment, net 3,539 3,423 3,350 3,217 3,611 Construction in progress 69 77 86 123 52 Timber and timberlands at cost, less depletion charged to disposals 4,016 4,022 4,019 4,035 4,010 Investments in and advances to equity affiliates 192 192 193 194 197 Goodwill 40 40 40 40 40 Deferred pension and other assets 904 948 830 363 756 Restricted assets held by special purpose entities   914   915   914   915   915   13,154   12,690   12,044   11,476   13,248 Real Estate Cash and cash equivalents 17 7 2 1 7 Receivables, less allowances 34 42 34 51 32 Real estate in process of development and for sale 611 602 599 517 598 Land being processed for development 942 950 953 974 917 Investments in and advances to equity affiliates 18 18 18 16 17 Deferred tax assets 271 270 271 266 299 Other assets 122 123 132 120 126 Consolidated assets not owned   6   6   -   8   6 2,021 2,018 2,009 1,953 2,002                   Total assets $ 15,175   $ 14,708   $ 14,053   $ 13,429   $ 15,250     Liabilities   Forest Products Current liabilities: Notes payable and commercial paper $ 1 $ 1 $ 1 $ - $ 4 Current maturities of long-term debt 3 3 24 - 3 Accounts payable 329 322 326 340 317 Accrued liabilities   603   663   656   734   631 Total current liabilities 936 989 1,007 1,074 955 Long-term debt 5,281 4,734 4,710 4,710 5,281 Deferred income taxes 1,578 1,642 704 366 1,538 Deferred pension, other postretirement benefits and other liabilities 1,942 1,854 1,644 1,323 2,000 Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities   767   770   769   772   768   10,504   9,989   8,834   8,245   10,542 Real Estate Long-term debt 390 390 390 350 402 Other liabilities 224 218 213 212 252 Consolidated liabilities not owned   -   -   -   8   -   614   608   603   570   654 Total liabilities   11,118   10,597   9,437   8,815   11,196   Equity   Total Weyerhaeuser shareholders' interest 4,046 4,100 4,610 4,612 4,044 Noncontrolling interest   11   11   6   2   10 Total equity 4,057 4,111 4,616 4,614 4,054                   Total liabilities and equity $ 15,175   $ 14,708   $ 14,053   $ 13,429   $ 15,250   Weyerhaeuser CompanyQ4.2010 Analyst Package Preliminary results, subject to audit                                 Consolidated Statement of Cash Flows                       in millions Q1Q2Q3Q4Year-to-dateMarch 31,June 30,Sept 30,Dec 31,Dec 31,Dec 31,Dec 31,   2010     2010     2010     2010         2009     2010         2009     Cash flows from operations: Net earnings (loss) $ (18 ) $ 14 $ 1,116 $ 171 $ (181 ) $ 1,283 $ (568 ) Noncash charges (credits) to income: Depreciation, depletion and amortization 126 126 124 127 134 503 538 Deferred income taxes, net 34 56 (1,006 ) (341 ) 86 (1,257 ) 66 Pension and other postretirement benefits (1 ) (10 ) (8 ) (2 ) (29 ) (21 ) (19 ) Share-based compensation expense 6 6 4 8 8 24 26 Equity in (income) loss of equity affiliates 3 - (6 ) 3 1 - (3 ) Litigation charges - 11 3 (14 ) (20 ) - - Charges for impairment of assets 2 1 2 112 211 117 458 Loss on early extinguishment of debt - 49 1 - 28 50 28 Net gains on dispositions of assets and operations (83 ) (10 ) (10 ) (46 ) (3 ) (149 ) (197 ) Foreign exchange transaction (gains) losses (10 ) 10 (4 ) (4 ) (7 ) (8 ) (41 ) Decrease (increase) in working capital: - Receivables less allowances (87 ) (28 ) 12 36 28 (67 ) 93 Receivable for taxes 568 (17 ) (30 ) 62 (300 ) 583 (529 ) Inventories (65 ) 40 (7 ) 2 50 (30 ) 251 Real estate and land (36 ) (1 ) (6 ) 48 79 5 125 Prepaid expenses (12 ) 5 3 6 8 2 23 Accounts payable and accrued liabilities (47 ) (17 ) (22 ) (30 ) (5 ) (116 ) (349 ) Deposits on land positions and other assets 3 (6 ) (10 ) 3 - (10 ) 13 Pension contributions (132 ) (6 ) (68 ) (27 ) (62 ) (233 ) (62 ) Other   (70 )   20     13     105         88     68         (15 ) Net cash from operations   181     243     101     219         114     744         (162)   Cash flows from investing activities: Property and equipment (46 ) (32 ) (37 ) (79 ) (55 ) (194 ) (187 ) Timberlands reforestation (13 ) (7 ) (6 ) (10 ) (7 ) (36 ) (36 ) Acquisition of timberlands (9 ) (11 ) (10 ) (26 ) 10 (56 ) (16 ) Redemption of short-term investments 47 - - 2 - 49 92 Distributions from (investments in and advances to) equity affiliates 1 - - (3 ) (2 )   (2 ) (4 ) Proceeds from sale of assets and operations 115 15 30 53 5 213 355 Repayments from pension trust 50 96 - - 139 146 54 Other   2     (2 )   21     2         (27 )   23         5   Cash from investing activities   147     59     (2)   (61)       63     143         263     Cash flows from financing activities: Notes, commercial paper borrowings and revolving credit facilities, net (3 ) - - (1 ) - (4 ) - Issuance of debt - - - - 491 - 491 Cash dividends (11 ) (10 ) (560 ) (27 ) (11 ) (608 ) (127 ) Change in book overdrafts (4 ) (8 ) (15 ) 33 16 6 (30 ) Payments on debt (17 ) (597 ) (3 ) (65 ) (432 ) (682 ) (854 ) Other   (2 )   (1 )   1     1         -     (1 )       (6 ) Cash from financing activities   (37)   (616)   (577)   (59)       64     (1,289)       (526)   Net change in cash and cash equivalents 291 (314 ) (478 ) 99 241 (402 ) (425 ) Cash and cash equivalents at beginning of period   1,869     2,160     1,846     1,368         1,628     1,869         2,294   Cash and cash equivalents at end of period $ 2,160   $ 1,846   $ 1,368   $ 1,467       $ 1,869   $ 1,467       $ 1,869     Cash paid (received) during the year for: Interest, net of amount capitalized $ 153   $ 71   $ 132   $ 57       $ 51   $ 413       $ 432     Income Taxes $ (576 ) $ 131   $ 1   $ (9 )     $ (5 ) $ (453 )     $ 42     Weyerhaeuser Company             Total Company StatisticsQ4.2010 Analyst Package Preliminary results, subject to audit                     Special Items Included in Net Earnings                       in millions Q1Q2Q3Q4Year-to-dateMarch 31,June 30,Sept 30,Dec 31,Dec 31,Dec 31,Dec 31,   2010     2010     2010     2010         2009     2010         2009   Net earnings (loss)$(20)$14$1,116$171$(175)$1,281$(545) Income tax adjustments 31 - (1,035 ) (177 ) - (1,181 ) 21 Alternative fuel mixture credits - - - - (77 ) - (223 ) Gain on sale of wood products assets (26 ) (5 ) - - - (31 ) - Gain on sale of rail roads - - - (31 ) - (31 ) - Gain on sale of 140,000 acres of non-strategic timberlands - - - - - - (98 ) Gain on sale of closed facility - - - - - - (13 ) Charges for closures, restructuring and impairments - - - 89 124 89 407 Loss on early extinguishment of debt - 33 - - 19 33 19 Litigation and insurance settlements and reserves   -     -     -     -         -     -         (2 ) Net earnings (loss) before special items$(15)$42   $81   $52       $(109)$160       $(434)   Selected Total Company Items                       in millions Q1Q2Q3Q4Year-to-dateMarch 31,June 30,Sept 30,Dec 31,Dec 31,Dec 31,Dec 31,   2010     2010     2010     2010         2009     2010         2009   Depreciation, depletion and amortization: Cost of products sold $ 110 $ 109 $ 108 $ 112 $ 112 $ 439 $ 464 Selling, general and administrative expenses   16     17     16     15         22     64         74   Total depreciation, depletion and amortization $ 126   $ 126   $ 124   $ 127       $ 134   $ 503       $ 538     Total decrease (increase) in Forest Products working capital (1) $ (273 ) $ 482 $ 506 $ (34 ) $ (238 ) $ 681 $ (237 ) Cash spent for capital expenditures $ (59 ) $ (39 ) $ (43 ) $ (89 )     $ (62 ) $ (230 )     $ (223 )   (1) Excludes changes in tax receivables and liabilities.   Weyerhaeuser Company             Timberlands SegmentQ4.2010 Analyst Package Preliminary results, subject to audit                           Segment Statement of Operations in millions Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD   Trade sales and revenues (unaffiliated customers) $ 202 $ 225 $ 240 $ 207 $ 874 $ 156 $ 714 Intersegment sales   171         123         145         164         603     129         537   Total net sales and revenues   373         348         385         371         1,477     285         1,251   Costs of products sold   277         260         294         298         1,129     249         1,025   Gross margin9688917334836226 Selling, general and administrative expenses 20 23 20 22 85 16 68 Research and development expenses 4 5 5 7 21 3 9 Charges for restructuring, closures and impairments 1 - 1 - 2 20 27 Other operating income, net   (10 )       (9 )       (9 )       (11 )       (39 )   (9 )       (207 ) Operating income   81         69         74         55         279     6         329   Interest income and other - 1 1 1 3 1 3 Loss attributable to noncontrolling interest   -         -         -         -         -     6         6   Net contribution to earnings$81       $70       $75       $56       $282   $13       $338     Selected Segment Items Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Depreciation, depletion and amortization $ 30       $ 28       $ 30       $ 30       $ 118   $ 28       $ 124   Total decrease (increase) in working capital (1) $ (9 )     $ (14 )     $ 24       $ (11 )     $ (10 ) $ (1 )     $ (4 ) Cash spent for capital expenditures $ (20 )     $ (15 )     $ (17 )     $ (20 )     $ (72 ) $ (16 )     $ (83 ) Cash spent for acquisition of timberlands $ (9 )     $ (11 )     $ (10 )     $ (26 )     $ (56 ) $ (10 )     $ (16 ) (1) Excludes changes in tax receivables and liabilities.   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Charges for restructuring, closures and impairments $ -       $ -       $ -       $ -       $ -   $ (15 )     $ (23 ) Gain on sale of 140,000 acres of non-strategic timberlands   -         -         -         -         -     -         164   Total$-       $-       $-       $-       $-   $(15)     $141     Segment Statistics                 Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD       Q4.2009     2009 YTD Third Party NetSales and Revenue(millions)   Logs:                                           West         $ 82       $ 125       $ 110       $ 97       $ 414   $ 76       $ 329   South           27         37         40         41         145     29         144   Canada           9         -         3         5         17     6         13   Total Logs           118         162         153         143         576     111         486   Pay as cut timber sales           8         9         8         8         33     7         31   Timberlands exchanges and dispositions           35         13         41         20         109     7         66   Higher and better use land sales           5         7         6         4         22     1         11   Minerals, oil and gas           15         16         15         14         60     13         62   Products from international operations           15         17         17         16         65     14         44   Other products           6         1         -         2         9     3         14       Total         $ 202       $ 225       $ 240       $ 207       $ 874   $ 156       $ 714   LogsThird Party SalesRealizations(per cubic meter)   West         $ 84.17       $ 97.92       $ 91.45       $ 95.30       $ 92.59   $ 79.49       $ 73.42   South         $ 43.21       $ 44.38       $ 43.63       $ 41.86       $ 43.21   $ 40.11       $ 40.64   Canada         $ 34.02       $ 30.05       $ 29.94       $ 33.84       $ 33.11   $ 32.47       $ 32.05       International         $ 20.35       $ 19.33       $ 17.96       $ 18.21       $ 19.01   $ 17.37       $ 17.34   LogsThird Party SalesVolumes (cubic meters, thousands) West           975         1,276         1,205         1,020         4,476     950         4,479   South           634         827         903         993         3,357     724         3,536   Canada           259         15         92         141         507     198         409   International           78         68         63         74         283     71         305       Total           1,946         2,186         2,263         2,228         8,623     1,943         8,729   LogsFee Depletion(cubic meters, thousands)   West           1,431         1,404         1,444         1,290         5,569     1,168         6,359   South           2,140         1,881         2,060         2,116         8,197     1,863         8,996   International           92         89         89         79         349     133         503       Total           3,663         3,374         3,593         3,485         14,115           3,164         15,858     Weyerhaeuser Company             Wood Products SegmentQ4.2010 Analyst Package Preliminary results, subject to audit                           Segment Statement of Operations in millions Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD   Trade sales and revenues (unaffiliated customers) $ 604 $ 789 $ 626 $ 572 $ 2,591 $ 510 $ 2,234 Intersegment sales   16         20         20         18         74     15         64   Total net sales and revenues   620         809         646         590         2,665     525         2,298   Costs of products sold   616         743         674         613         2,646     572         2,511   Gross margin466(28)(23)19(47)(213) Selling, general and administrative expenses 68 72 66 63 269 74 304 Research and development expenses 1 2 1 1 5 2 14 Charges for restructuring, closures and impairments 1 1 9 103 114 83 177 Other operating (income) loss, net   (46 )       (5 )       (4 )       (1 )       (56 )   3         27   Operating loss   (20)       (4)       (100)       (189)       (313)   (209)       (735) Interest income and other   1         1         -         1         3     1         2   Net contribution to earnings$(19)     $(3)     $(100)     $(188)     $(310)$(208)     $(733)   Selected Segment Items Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Depreciation, depletion and amortization $ 45       $ 45       $ 44       $ 43       $ 177   $ 48       $ 198   Total decrease (increase) in working capital $ (135 )     $ 51       $ 54       $ 41       $ 11   $ 25       $ 126   Cash spent for capital expenditures $ (2 )     $ (5 )     $ (5 )     $ (21 )     $ (33 ) $ (24 )     $ (57 )   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Gain on sale of assets $ 44       $ 8       $ -       $ -       $ 52   $ -       $ -   Litigation and insurance settlements and reserves   -         -         -         -         -     -         (18 ) Gain on sale of closed facilities   -         -         -         -         -     -         1   Charges for restructuring, closures and impairments   -         -         -         (103 )       (103 )   (85 )       (177 ) Total$44       $8       $-       $(103)     $(51)$(85)     $(194)   Segment Statistics in millions, except for third-party sales realizations         Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD       Q4.2009     2009 YTD Structural Lumber(board feet)   Third Party Net Sales and Revenue         $ 241       $ 308       $ 254       $ 241       $ 1,044   $ 202       $ 846   Third Party Sales Realizations         $ 316.60       $ 347.89       $ 286.84       $ 292.63       $ 311.09   $ 266.69       $ 254.85   Third Party Sales Volumes           761         884         889         822         3,356     758         3,319       Production Volumes           801         846         857         785         3,289     668         3,098   Engineered Solid Section(cubic feet)   Third Party Net Sales and Revenue         $ 66       $ 79       $ 68       $ 59       $ 272   $ 54       $ 238   Third Party Sales Realizations         $ 1,718.25       $ 1,784.77       $ 1,848.76       $ 1,853.91       $ 1,797.79   $ 1,753.96       $ 1,771.40   Third Party Sales Volumes           4         4         4         3         15     3         13       Production Volumes           4         4         4         3         15     3         11   Engineered I-joists(lineal feet)   Third Party Net Sales and Revenue         $ 48       $ 49       $ 39       $ 35       $ 171   $ 39       $ 162   Third Party Sales Realizations         $ 1,083.79       $ 1,178.95       $ 1,246.02       $ 1,259.46       $ 1,180.45   $ 1,112.41       $ 1,159.37   Third Party Sales Volumes           44         41         31         29         145     34         139       Production Volumes           41         41         25         26         133     29         109   Oriented Strand Board(square feet 3/8')   Third Party Net Sales and Revenue         $ 66       $ 116       $ 80       $ 72       $ 334   $ 58       $ 234   Third Party Sales Realizations         $ 197.46       $ 266.28       $ 185.07       $ 177.84       $ 207.92   $ 165.46       $ 163.43   Third Party Sales Volumes           334         437         428         408         1,607     348         1,432       Production Volumes           378         468         446         429         1,721     354         1,448   Softwood Plywood(square feet 3/8')   Third Party Net Sales and Revenue         $ 16       $ 23       $ 19       $ 15       $ 73   $ 13       $ 58   Third Party Sales Realizations         $ 263.54       $ 312.95       $ 280.78       $ 250.61       $ 279.58   $ 252.95       $ 259.50   Third Party Sales Volumes           60         75         68         57         260     50         223       Production Volumes           48         64         57         43         212     37         150   Hardwood Lumber(square feet 3/8')   Third Party Net Sales and Revenue         $ 54       $ 64       $ 54       $ 51       $ 223   $ 45       $ 206   Third Party Sales Realizations         $ 814.00       $ 833.30       $ 836.60       $ 833.75       $ 829.40   $ 765.93       $ 816.65   Third Party Sales Volumes           67         76         65         61         269     59         252       Production Volumes           59         61         60         51         231           44         201     Weyerhaeuser Company             Cellulose Fibers SegmentQ4.2010 Analyst Package Preliminary results, subject to audit                           Segment Statement of Operations in millions Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD   Trade sales and revenues (unaffiliated customers) $ 410 $ 468 $ 522 $ 511 $ 1,911 $ 408 $ 1,511 Intersegment sales   -         -         -         -         -     -         -   Total net sales and revenues   410         468         522         511         1,911     408         1,511   Costs of products sold   367         375         326         356         1,424     358         1,344   Gross margin439319615548750167 Selling, general and administrative expenses 20 20 21 21 82 18 71 Research and development expenses 2 2 2 2 8 2 6 Alternative fuel mixture credits - - - - - (115 ) (344 ) Charges for restructuring, closures and impairments - - - - - 2 3 Other operating income, net   (2 )       (5 )       (6 )       (7 )       (20 )   (6 )       (10 ) Operating income   23         76         179         139         417     149         441   Interest income and other   (4 )       (2 )       2         (1 )       (5 )   (2 )       3   Net contribution to earnings$19       $74       $181       $138       $412   $147       $444     Selected Segment Items Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Depreciation, depletion and amortization $ 36       $ 36       $ 34       $ 39       $ 145   $ 36       $ 142   Total decrease (increase) in working capital $ (10 )     $ (23 )     $ (39 )     $ 21       $ (51 ) $ 31       $ 56   Cash spent for capital expenditures $ (35 )     $ (19 )     $ (19 )     $ (46 )     $ (119 ) $ (23 )     $ (61 )   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Alternative fuel mixture credits $ -       $ -       $ -       $ -       $ -   $ 115       $ 344   Charges for restructuring, closures and impairments   -         -         -         -         -     (2 )       (3 ) Total$-       $-       $-       $-       $-   $113       $341     Segment Statistics                 Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD       Q4.2009     2009 YTD Pulp (air-dry metric tons) Third Party Net Sales and Revenue (millions)         $ 321       $ 354       $ 412       $ 402       $ 1,489   $ 315       $ 1,148   Third Party Sales Realizations         $ 761.78       $ 856.22       $ 926.28       $ 926.29       $ 868.91   $ 712.01       $ 676.49   Third Party Sales Volumes (thousands)           422         413         445         434         1,714     443         1,697       Production Volumes (thousands)           437         414         470         453         1,774     417         1,629   LiquidPackagingBoard(tons)   Third Party Net Sales and Revenue (millions)         $ 71       $ 90       $ 88       $ 88       $ 337   $ 74       $ 290   Third Party Sales Realizations         $ 1,051.81       $ 1,091.14       $ 1,103.48       $ 1,081.52       $ 1,083.31   $ 1,012.30       $ 1,003.60   Third Party Sales Volumes (thousands)           67         83         80         81         311     73         288       Production Volumes (thousands)           69         81         82         84         316           69         282     Weyerhaeuser Company             Real Estate SegmentQ4.2010 Analyst Package Preliminary results, subject to audit                       Segment Statement of Operations in millions Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD   Trade sales and revenues (unaffiliated customers) $ 151 $ 257 $ 210 $ 305 $ 923 $ 337 $ 904 Intersegment sales   -         -         -         -         -     -         -   Total net sales and revenues   151         257         210         305         923     337         904   Costs of products sold   121         189         158         228         696     280         757   Gross margin3068527722757147 Selling, general and administrative expenses 34 41 40 45 160 47 179 Charges for restructuring, closures and impairments 1 2 1 17 21 125 296 Other operating (income) loss, net   1         1         (2 )       (1 )       (1 )   2         3   Operating income (loss)   (6)       24         13         16         47     (117)       (331) Interest income and other 39 3 7 - 49 3 22 Impairments of investments and other related charges - - - (3 ) (3 ) 25 (7 ) Loss attributable to noncontrolling interest   (2 )       -         -         -         (2 )   -         17   Net contribution to earnings$31       $27       $20       $13       $91   $(89)     $(299)   Selected Segment Items Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Depreciation and amortization $ 3       $ 5       $ 4       $ 4       $ 16   $ 6       $ 17   Cash spent for capital expenditures $ (1 )     $ -       $ (2 )     $ (2 )     $ (5 ) $ 1       $ (8 )   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Charges for restructuring, closures and impairments $ -       $ -       $ -       $ (20 )     $ (20 ) $ (100 )     $ (279 ) Total$-       $-       $-       $(20)     $(20)$(100)     $(279)   Segment Statistics Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Net sales and revenues:                                   Single-family housing $ 143       $ 233       $ 200       $ 266       $ 842   $ 305       $ 832   Land   7         23         9         25         64     31         68   Other   1         1         1         14         17     1         4   Total net sales and revenue $ 151       $ 257       $ 210       $ 305       $ 923   $ 337       $ 904                                     Single-family homes sold   620         491         418         385         1,914     431         2,269   Single-family homes closed   393         625         501         606         2,125     778         2,177   Single-family homes sold but not closed (backlog)   877         743         660         439         439     650         650   Single-family average price of homes closed (in thousands) $ 364.89       $ 371.37       $ 400.03       $ 438.74       $ 396.14   $ 392.08       $ 382.18   Single-family home gross margin - excluding impairments (1)   19.4 %       23.9 %       24.3 %       26.1 %       23.7 %   22.5 %       17.5 %   (1) Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).   Weyerhaeuser Company             Corporate SegmentQ4.2010 Analyst Package Preliminary results, subject to audit                       Segment Statement of Operations in millions Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD   Trade sales and revenues (unaffiliated customers) $ 52 $ 66 $ 66 $ 69 $ 253 $ 44 $ 165 Intersegment sales   4         5         5         5         19     4         12   Total net sales and revenues   56         71         71         74         272     48         177   Costs of products sold   42         48         49         54         193     10         103   Gross margin14232220793874 Selling, general and administrative expenses 21 13 20 27 81 13 87 Research and development expenses 1 (1 ) - - - 6 22 Charges for restructuring, closures and impairments (1 ) 1 6 6 12 28 195 Other operating income, net   (13 )       11         (5 )       (45 )       (52 )   (2 )       (79 ) Operating income (loss)   6         (1)       1         32         38     (7)       (151) Interest income and other 6 9 9 9 33 11 44 Loss attributable to noncontrolling interest   -         -         -         -         -     -         -   Net contribution to earnings$12       $8       $10       $41       $71   $4       $(107)   Selected Segment Items Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Depreciation, depletion and amortization $ 12       $ 12       $ 12       $ 11       $ 47   $ 16       $ 57   Total decrease (increase) in working capital (1) $ (119 )     $ 468       $ 467       $ (85 )     $ 731   $ (293 )     $ (415 ) Cash spent for capital expenditures $ (1 )     $ -       $ -       $ -       $ (1 ) $ -       $ (14 ) Net foreign exchange gains (losses) $ 9       $ (8 )     $ 4       $ 4       $ 9   $ 6       $ 39   Pension and postretirement credits (2) $ 16       $ 22       $ 17       $ 19       $ 74   $ 29       $ 121   (1) Excludes changes in tax receivables and liabilities. (2) Excludes pension and postretirement included in charges for restructuring and closures.   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2010     Q2.2010     Q3.2010     Q4.2010     2010 YTD Q4.2009     2009 YTD Charges for restructuring, closures and impairments $ -       $ -       $ -       $ (7 )     $ (7 ) $ 15       $ (154 ) Gain on sale of rail roads   -         -         -         46         46     -         -   Gain on sale of closed facilities   -         -         -         -         -     -         18   Litigation and insurance settlements and reserves   -         -         -         -         -     -         20   Total $-       $-       $-       $39       $39   $15       $(116) Weyerhaeuser CompanyMediaBruce Amundson, 253-924-3047orAnalystsKathryn McAuley, 253-924-2058