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Press release from PR Newswire

Weyerhaeuser Reports Fourth Quarter, Full Year Results

Friday, February 03, 2012

Weyerhaeuser Reports Fourth Quarter, Full Year Results04:21 EST Friday, February 03, 2012 FEDERAL WAY, Wash., Feb. 3, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $65 million for the fourth quarter, or 12 cents per diluted share, on net sales from continuing operations of $1.6 billion. This compares with net earnings of $171 million, or 32 cents per diluted share, on net sales from continuing operations of $1.5 billion for the same period last year.(Logo:  http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)Earnings for the fourth quarter of 2011 include net after-tax charges of $12 million for restructuring and asset impairments. Excluding these items, the company reported net earnings of $77 million, or 14 cents per diluted share. This compares with net earnings before special items of $52 million in the fourth quarter of 2010.For the full year 2011, Weyerhaeuser reported net earnings of $331 million, or $0.61 per diluted share, on net sales from continuing operations of $6.2 billion. This compares with net earnings of $1.281 billion on net sales from continuing operations of $6.0 billion for the full year 2010. 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)."In 2011 we took full advantage of opportunities to improve our performance in a weaker than expected US housing market," said Dan Fulton, president and chief executive officer. "In Timberlands, we used our long term competitive strength in the Asian export markets to capitalize on emerging Chinese demand. Cellulose Fibers leveraged strong customer relationships and excellent operational performance to deliver a second consecutive year of record financial results. Our Real Estate business maintained profitability despite challenging market conditions, and Wood Products generated improved results. Through the sale of our hardwoods and Westwood Shipping Lines businesses we sharpened our strategic direction, and we remain focused on improving performance to generate superior sustainable returns for our shareholders in 2012."  WEYERHAEUSER FINANCIAL HIGHLIGHTS20112010(millions, except per share data)                             3Q4Q4QNet sales   From continuing operations$1,569$1,615$1,516   From discontinued operations (1)$83$0$148Total net sales$1,652$1,615$1,664Net earnings   From continuing operations$133$65$171   From discontinued operations (1)$24$0$0Net earnings$157$65$171Weighted average shares outstanding, diluted540538538Earnings per diluted share   From continuing operations$0.25$0.12$0.32   From discontinued operations (1)$0.04$0.00$0.00Earnings per diluted share$0.29$0.12$0.32Net earnings before special items$66$77$52Earnings per diluted share before special items$0.12$0.14$0.10Net cash from operations$117$147$225Net change in cash and cash equivalents$90($18)$99Cash and cash equivalents at end of period$971$953$1,467 TIMBERLANDS FINANCIAL HIGHLIGHTS (millions)                               3Q 20114Q 2011ChangeNet sales$252$274$22Contribution to pre-tax earnings before special items$62$70$8Pre-tax gain from special items$0$0$0GAAP contribution to pre-tax earnings$62$70$8 4Q 2011 Performance - The segment's earnings improved $8 million in the fourth quarter compared with the third. Earnings from disposition of non-strategic timberlands increased $17 million to $21 million, compared with $4 million in the third quarter. Average selling prices for Western logs declined due to weaker Chinese export demand. These declines were partially offset by increased log sales volumes and slightly higher selling prices in the South. Fee harvest volumes rose, primarily in the South. Silviculture and road costs were lower, and fuel costs increased.1Q 2012 Outlook - Excluding earnings from disposition of non-strategic timberlands, Weyerhaeuser expects slightly higher earnings from the Timberlands segment in the first quarter. The company anticipates increased fee harvest volumes in the West and slightly improved average selling prices due to a higher percentage of export logs sold to Japan. Weyerhaeuser also anticipates higher fuel costs and seasonally higher silviculture expenses.WOOD PRODUCTS  FINANCIAL HIGHLIGHTS (millions)                               3Q 20114Q 2011ChangeNet sales   From continuing operations$603$542($61)From discontinued operations$27$0($27)Total net sales$630$542($88)Charge to pre-tax earnings before special items   From continuing operations($43)($61)($18)From discontinued operations($4)$0$4Total charge to pre-tax earnings before special items($47)($61)($14)Pre-tax charge from special items($46)($19)$27GAAP charge to pre-tax earnings($93)($80)$13 4Q 2011 Performance - Results from continuing operations declined $18 million compared with the third quarter. Selling prices and volumes were seasonally lower for most products. The segment reduced operating rates to match weaker market demand, resulting in higher per unit manufacturing costs.Fourth quarter includes special charges of $19 million for restructuring and asset impairments. Third quarter included special charges of $46 million related to restructuring, asset impairments, and sale of the hardwoods operations. Weyerhaeuser completed the sale of the hardwoods operations in the third quarter.1Q 2012 Outlook - Excluding special items, Weyerhaeuser anticipates a smaller loss from the Wood Products segment in the first quarter.  The company expects slightly higher selling prices for lumber and oriented strand board and increased sales volumes across all product lines. Unit manufacturing costs should decline due to seasonally improved operating rates.CELLULOSE FIBERS FINANCIAL HIGHLIGHTS (millions)                              3Q 20114Q 2011ChangeNet sales$503$523$20Contribution to pre-tax earnings before special items$135$134($1)Pre-tax gain from special items$0$0$0GAAP contribution to pre-tax earnings$135$134($1) 4Q 2011 Performance - Fourth quarter earnings declined $1 million compared with third quarter.  Average selling prices for pulp declined throughout the fourth quarter. By the end of the quarter, commodity prices for Northern bleached softwood kraft (NBSK) pulp had fallen to levels last seen in the first quarter of 2010. The effect of the price decline was mostly offset by increased sales volumes. There were no annual maintenance outages in the third or fourth quarter.1Q 2012 Outlook - Weyerhaeuser expects substantially lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates considerably lower average selling prices for pulp and significantly higher maintenance costs due to scheduled annual maintenance outages. Weyerhaeuser expects seasonally higher energy costs and increased fiber and chemical costs.REAL ESTATE FINANCIAL HIGHLIGHTS (millions)                               3Q 20114Q 2011ChangeNet sales$211$276$65Contribution to pre-tax earnings before special items$10$41$31Pre-tax gain from special items$0$0$0GAAP contribution to pre-tax earnings$10$41$31 4Q 2011 Performance - Earnings increased $31 million compared with the third quarter.  Home closings increased 15 percent to 582 single-family homes. Average margins on homes closed improved due to mix. Fourth quarter includes earnings of $19 million from the sale of land and lots. There were no significant earnings from land and lot sales in the third quarter.1Q 2012 Outlook - Weyerhaeuser anticipates a loss from single-family homebuilding operations in the first quarter. The company expects a seasonal decline in home closing volume and lower average margins due to mix. CORPORATE AND OTHER FINANCIAL HIGHLIGHTS (millions)                               3Q 20114Q 2011ChangeCharge to pre-tax earnings before special items   From continuing operations($16)($22)($6)From discontinued operations($4)$0$4Total charge to pre-tax earnings before special items($20)($22)($2)Pre-tax gain from special items$58$0($58)GAAP contribution (charge) to pre-tax earnings$38($22)($60) Corporate and Other results from continuing operations declined $6 million compared with the third quarter, as gains on foreign exchange were more than offset by increased charges for share-based compensation and other items.Third quarter results included pre-tax gains of $58 million from special items, primarily the sale of Westwood Shipping Lines.ABOUT WEYERHAEUSERWeyerhaeuser 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 2011, we employed approximately 12,800 employees in 11 countries. We have customers worldwide and generated $6.2 billion in sales from continuing operations in 2011. 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 INFORMATIONWeyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Feb. 3 to discuss fourth quarter results. To access the conference call from within North America, dial 877-296-9413 (access code ? 41397589) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code ? 41397589). Replays will be available for one week at (800) 585-8367 (access code ? 41397589) from within North America and at 404-537-3406 (access code ? 41397589) 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 2011 Weyerhaeuser Co. 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 STATEMENTSThis 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 for the first quarter of 2012, including increased fee harvest volumes in the West, slightly improved average selling prices due to a higher percentage of export logs sold to Japan, flat fee harvest volume and prices in the South, higher fuel costs across all geographies, higher silviculture expenses in the South, and slightly higher earnings in the Timberlands segment excluding earnings from disposition of non-strategic timberlands; increased sales and slightly higher selling prices for lumber, higher sales volumes and over five percent increase in selling prices for oriented strand board, increased sales volumes and flat prices for engineered wood products, higher log costs in the South and Canada and lower log costs in the West, higher operating rates across all product lines, and a smaller loss from continuing operations in the Wood Products segment excluding special items; considerably lower average selling prices for pulp and slightly lower shipment volumes, significantly higher maintenance costs and lower production due to scheduled annual maintenance outages, higher energy and chemical costs, and substantially lower earnings in the Cellulose Fiber segment; seasonally lower home closing volume, lower average selling prices and margins due to mix, and a loss from single-family homebuilding operations in the Real Estate segment.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; the successful execution of internal performance plans, including restructurings and cost reduction initiatives; the level of competition from domestic and foreign producers; raw material prices; energy prices; transportation costs; the effect of design value changes on demand for the company's Southern yellow pine lumber the effect of forestry, land use, environmental and other governmental regulations; federal tax policies; legal proceedings; the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation; the effect of weather; the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; 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 and quarterly reports on Form 10-Q. The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China.  It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar and the relative value of the euro to the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.For more information contact:Kathryn McAuley, 253-924-2058Exhibit 99.2Weyerhaeuser CompanyQ4.2011 Analyst Package Preliminary results, subject to audit Consolidated Statement of Operations     in millionsQ1 Q2 Q3 Q4 Year-to-date  Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Dec 31, 2010 Dec 31, 2011 Dec 31, 2010  Net sales and revenues$1,422  $1,610  $1,569  $1,615  $1,516  $6,216  $5,954  Cost of products sold1,177  1,343  1,283  1,317  1,222  5,120  4,831  Gross margin245  267  286  298  294  1,096  1,123  Selling, general and administrative expenses172  145  135  149  171  601  650  Research and development expenses7  7  7  9  10  30  34  Charges for restructuring, closures and impairments4  7  41  31  126  83  148  Other operating costs (income), net(174)  (19)  3  (22)  (67)  (212)  (163)  Operating income236  127  100  131  54  594  454  Interest income and other11  9  15  12  10  47  83  Impairment of investments and other related charges?  ?  ?  ?  (3)  ?  (3)  Interest expense, net of capitalized interest(93)  (117)  (86)  (88)  (96)  (384)  (452)  Earnings (loss) from continuing operations before income taxes154  19  29  55  (35)  257  82  Income taxes (1)(56)  4  104  10  206  62  1,192  Earnings from continuing operations98  23  133  65  171  319  1,274  Earnings (loss) from discontinued operations, net of income taxes1  (13)  24  ?  ?  12  9  Net earnings99  10  157  65  171  331  1,283  Less: net earnings attributable to noncontrolling interests?  ?  ?  ?  ?  ?  (2)  Net earnings attributable to Weyerhaeuser common shareholders$99  $10  $157  $65  $171  $331  $1,281   (1) Third quarter includes an $83 million and year-to-date 2011 includes a $76 million tax benefit related to foreign tax credits. Year-to-date 2010 includes $1.043 billion income for the reversal of deferred tax liabilities associated with the conversion to REIT status partially offset by $39 million for tax charges related to the elimination of the ability to claim a tax deduction provided to retirees and reimbursed under the Medicare Part D subsidy beginning in 2013, state tax law and rate changes, unrecognized tax benefits and other adjustments.  Per Share Information  Q1 Q2 Q3 Q4 Year-to-date  Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Dec 31, 2010 Dec 31, 2011 Dec 31, 2010  Earnings (loss) per share attributable to Weyerhaeuser common shareholders, basic:              Continuing operations$0.18  $0.04  $0.25  $0.12  $0.32  $0.60  $3.97  Discontinued operations?  (0.02)  0.04  ?  ?  0.02  0.03  Net earnings per share$0.18  $0.02  $0.29  $0.12  $0.32  $0.62  $4.00  Earnings (loss) per share attributable to Weyerhaeuser common shareholders, diluted:              Continuing operations$0.18  $0.04  $0.25  $0.12  $0.32  $0.59  $3.96  Discontinued operations?  (0.02)  0.04  ?  ?  0.02  0.03  Net earnings per share$0.18  $0.02  $0.29  $0.12  $0.32  $0.61  $3.99  Dividends paid per share$0.15  $0.15  $0.15  $0.15  $0.05  $0.60  $26.61  Weighted average shares outstanding (in thousands):              Basic537,140  538,599  537,969  536.432  535,956  537,534  319,976  Diluted540,476  541,095  539,827  538.119  538,376  539,879  321,096  Common shares outstanding at end of period(in thousands)538,408  538,640  537,210  536,425  535,976  536,425  535,976     Weyerhaeuser Company Q4.2011 Analyst Package Preliminary results, subject to audit  Consolidated Balance Sheet in millionsMarch 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 December 31, 2010 ASSETS         Forest Products:         Current assets:         Cash and cash equivalents$1,459  $877  $969  $950  $1,466 Receivables, less allowances505  533  467  490  451 Inventories544  513  468  476  478 Prepaid expenses85  115  81  68  81 Deferred tax assets155  167  106  81  113 Total current assets2,748  2,205  2,091  2,065  2,589 Property and equipment, net3,151  3,083  2,943  2,901  3,217 Construction in progress149  137  122  145  123 Timber and timberlands at cost, less depletion charged4,003  3,987  3,997  3,978  4,035 Investments in and advances to equity affiliates192  191  194  192  194 Goodwill40  40  40  40  40 Other assets424  511  558  444  363 Restricted assets held by special purpose entities914  915  914  916  915  11,621  11,069  10,859  10,681  11,476 Real Estate:         Cash and cash equivalents4  4  2  3  1 Receivables, less allowances54  36  31  41  51 Real estate in process of development and for sale515  535  549  555  517 Land being processed for development978  988  989  936  974 Investments in and advances to equity affiliates15  15  15  21  16 Deferred tax assets266  263  260  240  266 Other assets119  121  122  113  120 Consolidated assets not owned8  8  8  8  8  1,959  1,970  1,976  1,917  1,953 Total assets$13,580  $13,039  $12,835  $12,598  $13,429           LIABILITIES AND EQUITY         Forest Products:         Current liabilities:         Current maturities of long-term debt$?  $?  $11  $12  $? Accounts payable359  326  305  336  340 Accrued liabilities686  712  672  593  734 Total current liabilities1,045  1,038  988  941  1,074 Long-term debt4,710  4,192  4,181  4,181  4,710 Deferred income taxes485  533  440  93  366 Deferred pension and other postretirement benefits908  835  797  1,467  930 Other liabilities405  412  335  408  393 Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities771  774  773  776  772  8,324  7,784  7,514  7,866  8,245 Real Estate:         Long-term debt348  318  318  285  350 Other liabilities196  193  196  172  212 Consolidated liabilities not owned8  8  8  8  8  552  519  522  465  570 Total liabilities8,876  8,303  8,036  8,331  8,815 Equity:         Total Weyerhaeuser shareholders' interest4,702  4,734  4,795  4,263  4,612 Noncontrolling interests2  2  4  4  2 Total equity4,704  4,736  4,799  4,267  4,614 Total liabilities and equity$13,580  $13,039  $12,835  $12,598  $13,429   Weyerhaeuser Company Q4.2011 Analyst Package Preliminary results, subject to audit  Consolidated Statement of Cash Flows    in millionsQ1 Q2 Q3 Q4 Year-to-date  Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Dec 31, 2010 Dec 31, 2011 Dec 31, 2010  Cash flows from operations:              Net earnings$99  $10  $157  $65  $171  $331  $1,283  Noncash charges (credits) to income:              Depreciation, depletion and amortization123  120  120  117  127  480  503  Deferred income taxes, net39  (13)  (103)  51  (317)  (26)  (1,257)  Pension and other postretirement benefits24  19  17  21  (2)  81  (21)  Share-based compensation expense14  3  2  6  8  25  24  Charges for impairment of assets1  2  34  19  112  56  117  Net gains on dispositions of assets and operations(156)  (20)  (51)  (9)  (46)  (236)  (149)  Foreign exchange transaction (gains) losses(7)  (1)  19  (5)  (4)  6  (8)  Change in:      ?        Receivables less allowances(59)  (10)  35  (19)  36  (53)  (67)  Receivable for taxes1  ?  6  (21)  62  (14)  583  Inventories(66)  35  (9)  (6)  2  (46)  (30)  Real estate and land(2)  (32)  (15)  37  48  (12)  5  Prepaid expenses(10)  (4)  ?  17  14  3  6  Accounts payable and accrued liabilities(38)  15  (51)  (83)  (12)  (157)  (53)  Deposits on land positions and other assets?  (4)  (5)  5  3  (4)  (10)  Pension and postretirement contributions(19)  (18)  (27)  (79)  (43)  (143)  (280)  Other(31)  12  (12)  31  66  ?  43  Net cash from operations(87)  114  117  147  225  291  689                 Cash flows from investing activities:              Property and equipment(35)  (39)  (62)  (76)  (79)  (212)  (194)  Timberlands reforestation(12)  (7)  (4)  (6)  (10)  (29)  (36)  Redemption of short-term investments?  ?  ?  ?  2  ?  49  Proceeds from sale of assets and operations193  3  157  9  53  362  213  Repayments from pension trust?  ?  ?  ?  ?  ?  146  Other5  (10)  (1)  7  (17)  1  (14)  Cash from investing activities151  (53)  90  (66)  (51)  122  164                 Cash flows from financing activities:              Notes, commercial paper borrowings and revolving credit facilities, net?  ?  ?  ?  (1)  ?  (4)  Cash dividends(81)  (80)  (81)  (81)  (27)  (323)  (608)  Change in book overdrafts(19)  1  (8)  28  17  2  (10)  Payments on debt(2)  (548)  ?  (33)  (65)  (583)  (632)  Exercises of stock options34  3  ?  1  ?  38  ?  Repurchase of common stock?  ?  (24)  (13)  ?  (37)  ?  Other?  (19)  (40  (1)  1  (24)  (1)  Cash from financing activities(68)  (643)  (117)  (99)  (75)  (927)  (1,255)                 Net change in cash and cash equivalents(4)  (582)  90  (18)  99  (514)  (402)  Cash and cash equivalents at beginning of period1,467  1,463  881  971  1,368  1,467  1,869  Cash and cash equivalents at end of period$1,463  $881  $971  $953  $1,467  $953  $1,467  Cash paid (received) during the year for:              Interest, net of amount capitalized$156  $91  $115  $58  $57  $420  $463  Income taxes$2  $13  $6  $7  $(9)  $28  $(453)     Weyerhaeuser Company                           Q4.2011 Analyst PackagePreliminary results, subject to audit Total Company Statistics     Special Items Included in Net Earnings    in millionsQ1 Q2 Q3 Q4 Year-to-date  Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Dec 31, 2010 Dec 31, 2011 Dec 31, 2010  Net earnings$99  $10  $157  $65  $171  $331  $1,281  Income tax adjustments?  ?  (83)  ?  (1770  (83)  (1,181)  Gain on sale of wood products assets?  ?  ?  ?  ?  ?  (31)  Loss on early extinguishment of debt?  16  ?  ?  ?  16  33  Gain on sale of 82,000 acres of non-strategic timberlands(96)  ?  ?  ?  ?  (96)  ?  Charges for restructuring, closures and impairments?  ?  24  12  89  36  89  Charges related to the sale of hardwoods?  6  8  ?  ?  14  ?  Gain on sale of properties?  ?  (9)  ?  ?  (9)  ?  Gain on sale of Westwood Shipping Lines?  ?  (31)  ?  ?  (31)  ?  Gain on sale of rail roads?  ?  ?  ?  (31)  ?  (31)  Net earnings before special items$3  $32  $66  $77  $52  $178  $160         Q1 Q2 Q3 Q4 Year-to-date  Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Dec 31, 2010 Dec 31, 2011 Dec 31, 2010  Net earnings per diluted share$0.18  $0.02  $0.29  $0.12  $0.32  $0.61  $3.99  Income tax adjustments?  ?  (0.15)  ?  (0.33)  (0.15)  (3.68)  Gain on sale of wood products assets?  ?  ?  ?  ?  ?  (0.10)  Loss on early extinguishment of debt?  0.03  ?  ?  ?  0.03  0.11  Gain on sale of 82,000 acres of non-strategic timberlands(0.18)  ?  ?  ?  ?  (0.18)  ?  Charges for restructuring, closures and impairments?  ?  0.04  0.02  0.17  0.07  0.28  Charges related to the sale of hardwoods?  0.01  0.01  ?  ?  0.03  ?  Gain on sale of properties?  ?  (0.01)  ?  ?  (0.02)  ?  Gain on sale of Westwood Shipping Lines?  ?  (0.06)  ?  ?  (0.06)  ?  Gain on sale of rail roads?  ?  ?  ?  (0.06)  ?  (0.10)  Net earnings before special items per diluted share$?  $0.06  $0.12  $0.14  $0.10  $0.33  $0.50        Selected Total Company Items, Excluding Discontinued Operations       in millionsQ1 Q2 Q3 Q4 Year-to-date  Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011 Dec 31, 2010 Dec 31, 2011 Dec 31, 2010  Depreciation, depletion and amortization:              Cost of products sold$105  $105  $108  $104  $110  $422  $431  Selling, general and administrative expenses16  13  12  13  15  54  64  Total depreciation, depletion and amortization$121  $118  $120  $117  $125  $476  $495               Pension and postretirement costs (credits):              Pension and postretirement costs allocated to business segments$10  $15  $9  $12  $11  $46  $39  Pension and postretirement costs (credits) retained by Corporate segment12  3  6  5  (19)  26  (73)  Total company pension and postretirement costs (credits)$22  $18  $15  $17  $(8)  $72  $(34)               Total decrease (increase) in Forest Products working capital$(158)  $(21)  $69  $(63)  $139  $(173)  $731  Cash spent for capital expenditures$(47)  $(44)  $(65)  $(82)  $(88)  $(238)  $(228)                                    Weyerhaeuser Company                                                                                                                                                                      Timberlands SegmentQ4.2011 Analyst PackagePreliminary results, subject to auditSegment Statement of Operations  in millionsQ1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Trade sales and revenues (unaffiliated customers)$230  $288  $252  $274  $1,044  $207  $874 Intersegment sales191  134  154  167  646  164  603 Total net sales and revenues421  422  406  441  1,690  371  1,477 Cost of products sold320  296  321  359  1,296  298  1,129 Gross margin101  126  85  82  394  73  348 Selling, general and administrative expenses23  24  23  21  91  22  85 Research and development expenses4  4  4  6  18  7  21 Charges for restructuring, closures and impairments?  ?  ?  ?  ?  ?  2 Other operating income, net(166)  (13)  (3)  (14)  (196)  (11)  (39) Operating income240  111  61  69  481  55  279 Interest income and other1  1  1  1  4  1  3 Net contribution to earnings$241  $112  $62  $70  $485  $56  $282 Selected Segment Items  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Depreciation, depletion and amortization$31  $35  $34  $35  $135  $30  $118 Total decrease (increase) in working capital$(16)  $(40)  $32  $(3)  $(27)  $(6)  $(10) Cash spent for capital expenditures$(14)  $(14)  $(12)  $(13)  $(53)  $(20)  $(72) Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Gain on sale of 82,000 acres of non-strategic timberlands$152  $?  $?  $?  $152  $?  $?                             Segment Statistics  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Third Party Net Sales and  Revenue (millions) Logs:              West$110  $152  $144  $139  $545  $97  $414  South41  49  53  53  196  41  145  Canada7  1  4  5  17  5  17  Total logs158  202  201  197  758  143  576  Pay as cut timber sales8  8  9  9  34  8  33  Timberlands exchanges and dispositions21  39  2  15  77  20  109  Higher and better use land sales4  2  5  14  25  4  22  Minerals, oil and gas14  15  14  10  53  14  60  Products from international operations17  21  21  27  86  16  65  Other products8  1  ?  2  11  2  9  Total$230  $288  $252  $274  $1,044  $207  $874 LogsThird Party SalesRealizations(per cubic meter) West$100.20  $109.42  $104.27  $99.71  $103.57  $95.30  $92.59  South$41.22  $40.59  $39.11  $39.82  $40.10  $41.86  $43.21  Canada$34.73  $42.79  $33.73  $34.04  $34.65  $33.84  $33.11  International$22.12  $37.78  $33.73  $17.03  $28.11  $18.21  $19.01 LogsThird Party SalesVolumes(cubic meters,thousands) West1,095  1,391  1,385  1,396  5,267  1,020  4,476  South1,005  1,211  1,336  1,327  4,879  993  3,357  Canada194  23  116  146  479  141  507  International72  79  88  75  314  74  283  Total2,366  2,704  2,925  2,944  10,939  2,228  8,623 LogsFee Depletion(cubic meters,thousands) West1,611  1,747  1,604  1,633  6,595  1,290  5,569  South2,180  2,355  2,535  2,668  9,738  2,116  8,197  International98  221  270  265  854  79  349  Total3,889  4,323  4,409  4,566  17,187  3,485  14,115  Weyerhaeuser Company Q4.2011 Analyst PackagePreliminary results, subject to audit Wood Products Segment    Segment Statement of Operations in millionsQ1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Trade sales and revenues (unaffiliated customers)$526  $605  $603  $542  $2,276  $487  $2,224 Intersegment sales20  21  20  19  80  16  63 Total net sales and revenues546  626  623  561  2,356  503  2,287 Cost of products sold536  629  620  576  2,361  527  2,289 Gross margin10  (3)  3  (15)  (5)  (24)  (2) Selling, general and administrative expenses50  49  47  46  192  58  250 Research and development expenses1  1  1  1  4  1  5 Charges for restructuring, closures and impairments2  4  38  20  64  102  113 Other operating income, net(5)  (4)  (6)  (2)  (17)  (1)  (49) Operating loss(38)  (53)  (77)  (80)  (248)  (184)  (321) Interest income and other2  ?  1  ?  3  1  3 Net contribution to earnings from continuing operations(36)  (530  (76)  (80)  (245)  (183)  (318) Net contribution to earnings from discontinued hardwoods operations?  (8)  (17)  ?  (25)  (5)  8 Net contribution to earnings$(36)  $(61)  $(93)  $(80)  $(270)  $(188)  $(3100   Selected Segment Items, Excluding Hardwoods Operations  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Depreciation, depletion and amortization$39  $35  $36  $34  $144  $41  $170 Total decrease (increase) in working capital$(115)  $43  $16  $21  $(35)  $26  $16 Cash spent for capital expenditures$(6)  $(7)  $(8)  $(14)  $(35)  $(20)  $(31)   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Gain on sale of wood products assets$?  $?  $?  $?  $?  $?  $52 Charges for restructuring, closures and impairments?  ?  (38)  (19)  (57)  (103)  (103) Gain on sale of properties?  ?  5  ?  5  ?  ? Total special items from continuing operations?  ?  (33)  (19)  (52)  (103)  (51) Charges related to sale of discontinued hardwoods operations?  (9)  (13)  ?  (22)  ?  ? Total$?  $(9)  $(46)  $(19)  $(74)  $(103)  $(51)   Segment Statistics in millions, except for third-party sales realizations Q1.2011   Q2.2011   Q3.2011   Q4.2011   YTD.2011   Q4.2010   YTD.2010                                 Third Party Sales Realizations$315.26  $300.84  $300.74  $296.09  $302.99  $292.63  $311.09  Third Party Sales Volumes826  963  934  863  3,586  822  3,356  Production Volumes893  903  890  842  3,528  785  3,289 Engineered SolidSection(cubic feet)  Third Party Net Sales and Revenue$62  $71  $65  $55  $253  $59  $272  Third Party Sales Realizations$1,851.05  $1,904.83  $1,865.05  $1,782.64  $1,853.98  $1,853.91  $1,797.79  Third Party Sales Volumes3  4  4  3  14  3  15  Production Volumes4  3  4  2  13  3  15 EngineeredI-joists(lineal feet)  Third Party Net Sales and Revenue$33  $48  $44  $36  $161  $35  $171  Third Party Sales Realizations$1,266.51  $1,258.14  $1,275.43  $1,257.62  $1,264.35  $1,259.46  $1,180.45  Third Party Sales Volumes26  38  34  30  128  29  145  Production Volumes30  34  32  26  122  26  133 Oriented StrandBoard(square feet 3/8')  Third Party Net Sales and Revenue$85  $89  $97  $90  $361  $72  $334  Third Party Sales Realizations$192.16  $178.43  $176.33  $173.28  $179.57  $177.84  $207.92  Third Party Sales Volumes445  498  549  516  2,008  408  1,607  Production Volumes494  518  574  541  2,127  429  1,721 Softwood Plywood(square feet 3/8')  Third Party Net Sales and Revenue$17  $16  $18  $18  $69  $15  $73  Third Party Sales Realizations$263.83  $271.01  $260.23  $274.02  $267.13  $250.61  $279.58  Third Party Sales Volumes63  61  69  65  258  57  260  Production Volumes53  48  49  47  197  43  212 Hardwood Lumber (board feet)  Third Party Net Sales and Revenue$58  $63  $17  $?  $138  $51  $223  Third Party Sales Realizations$845.42  $858.51  $861.33  $?  $853.30  $833.75  $829.40  Third Party Sales Volumes69  73  20  ?  162  61  269  Production Volumes58  62  15  ?  135  51  231   Weyerhaeuser Company Q4.2011 Analyst PackagePreliminary results, subject to audit Cellulose Fibers Segment    Segment Statement of Operations  in millionsQ1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Total net sales and revenues$506  $526  $503  $523  $2,058  $511  $1,911 Cost of products sold400  422  349  370  1,541  356  1,424 Gross margin106  104  154  153  517  155  487 Selling, general and administrative expenses22  24  24  24  94  21  82 Research and development expenses2  2  2  2  8  2  8 Charges for restructuring, closures and impairments?  ?  ?  1  1  ?  ? Other operating income, net(5)  (3)  (4)  (7)  (19)  (7)  (20) Operating income87  81  132  133  433  139  417 Interest income and other(1)  (1)  3  1  2  (1)  (5) Net contribution to earnings$86  $80  $135  $134  $435  $138  $412   Selected Segment Items  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Depreciation, depletion and amortization$36  $35  $37  $36  $144  $39  $145 Total decrease (increase) in working capital$20  $(32)  $(9)  $(26)  $(47)  $21  $(52) Cash spent for capital expenditures$(26)  $(23)  $(43)  $(54)  $(146)  $(46)  $(119)   Segment Statistics                                   Q1.2011   Q2.2011   Q3.2011   Q4.2011   YTD.2011   Q4.2010   YTD.2010 Pulp(air-dry metrictons) Third Party Net Sales and Revenue (millions)$398  $409  $391  $419  $1,617  $402  $1,489  Third Party Sales Realizations$912.12  $960.04  $919.65  $894.71  $920.93  $926.29  $868.91  Third Party Sales Volumes (thousands)436  426  426  468  1,756  434  1,714  Production Volumes (thousands)437  410  462  460  1,769  453  1,774 LiquidPackagingBoard(tons) Third Party Net Sales and Revenue (millions)$85  $93  $87  $81  $346  $88  $337  Third Party Sales Realizations$1,148.29  $1,194.46  $1,164.99  $1,151.48  $1,165.31  $1,081.52  $1,083.31  Third Party Sales Volumes (thousands)74  77  76  70  297  81  311  Production Volumes (thousands)67  80  81  79  307  84  316   Weyerhaeuser Company Q4.2011 Analyst PackagePreliminary results, subject to audit Real Estate Segment   Segment Statement of Operations  in millionsQ1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Total net sales and revenues$160  $191  $211  $276  $838  $305  $923 Cost of products sold126  147  164  191  628  228  696 Gross margin34  44  47  85  210  77  227 Selling, general and administrative expenses35  36  36  37  144  45  160 Charges for restructuring, closures and impairments1  1  2  10  14  17  21 Other operating income, net?  ?  ?  (1)  (1)  (1)  (1) Operating income (loss)(2)  7  9  39  53  16  47 Interest income and other1  1  1  2  5  ?  49 Impairments of investments and other related charges?  ?  ?  ?  ?  (3)  (3) Loss attributable to noncontrolling interests?  ?  ?  ?  ?  ?  (20) Net contribution to earnings$(1)  $8  $10  $41  $58  $13  $91   Selected Segment Items  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Depreciation and amortization$3  $3  $3  $3  $12  $4  $16 Cash spent for capital expenditures$(1)  $?  $(1)  $(1)  $(3)  $(2)  $(5)   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Charges for restructuring and impairments (1)$?  $?  $?  $?  $?  $(20)  $(20)  (1)Fourth quarter 2011 charges for restructuring, closures and impairments were mostly offset by other nonrecurring income.  Segment Statistics  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Net sales and revenues:             Single-family housing$152  $180  $204  $232  $768  $266  $842 Land7  11  5  44  67  25  64 Other1  ?  2  ?  3  14  17 Total net sales and revenue$160  $191  $211  $276  $838  $305  $923 Single-family homes sold535  521  440  406  1,902  385  1,914 Single-family homes closed363  459  508  582  1,912  606  2,125 Single-family homes sold but not closed (backlog)611  673  605  429  429  439  439 Single-family average price of homes closed (in thousands)$419  $391  $403  $398  $402  $439  $396 Single-family home gross margin - excluding impairments (1)21.7% 22.4% 23.0% 25.4% 23.3% 26.1% 23.7% (1)Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).                                       Weyerhaeuser Company Q4.2011 Analyst PackagePreliminary results, subject to audit Corporate & Other Segment   Corporate and Other includes certain gains or charges that are not related to an individual operating segment and the portion of items such as share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses associated with financing and other general and administrative expenses that are not allocated to the business segments. Historically, Corporate and Other included the results of our transportation operations. This included our five short line railroads that were sold at the end of 2010 and Westwood Shipping Lines that was sold on September 30, 2011. Westwood results are included in our results of discontinued operations.  Segment Statement of Operations  in millionsQ1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Trade sales and revenues (unaffiliated customers)$?  $?  $?  $?  $?  $6  $22 Intersegment sales?  ?  ?  ?  ?  1  3 Total net sales and revenues?  ?  ?  ?  ?  7  25 Cost of products sold (1)6  4  3  7  20  (6)  (38) Gross margin(6)  (4)  (3)  (7)  (20)  13  63 Selling, general and administrative expenses42  12  5  21  80  25  73 Charges for restructuring, closures and impairments1  2  1  ?  4  6  12 Other operating costs (income), net2  1  16  2  21  (46)  (54) Operating income (loss)(51)  (19)  (25)  (30)  (125)  28  32 Interest income and other8  8  9  8  33  9  33 Net contribution to earnings from continuing operations(43)  (110  (16)  (22)  (92)  37  65 Net contribution to earnings from discontinued operations (2)2  (11)  54  ?  45  4  6 Net contribution to earnings$(41)  $(22)  $38  $(22)  $(47)  $41  $71  (1)Cost of products sold include the portion of pension and postretirement costs (credits) and other costs retained by the Corporate segment allocable to production employees.(2)Third quarter 2011 includes a $9 million gain and second quarter 2011 includes charges of $13 million related to businesses we have divested in prior years. Third quarter 2011 also includes a $49 million gain on the sale of Westwood Shipping Lines.  Selected Segment Items, Excluding Westwood Shipping Lines  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Depreciation, depletion and amortization$12  $10  $10  $9  $41  $11  $46 Total decrease (increase) in working capital$(47)  $8  $30  $(55)  $(64)  $98  $777 Cash spent for capital expenditures$?  $?  $(10)  $?  $(1)  $?  $(1) Share-based compensation expense (income)$16  $(5)  $(12)  $6  $5  $8  $15 Foreign exchange losses (gains)$(6)  $(1)  $16  $(4)  $5  $(5) $(11) Pension and postretirement costs (credits) retained by Corporate segment$12  $3  $6  $5  $26  $(19) $(74)   Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  Q1.2011 Q2.2011 Q3.2011 Q4.2011 YTD.2011 Q4.2010 YTD.2010Gain on sale of five short line railroads$?  $?  $?  $?  $?  $46  $46 Charges for restructuring, closures and impairments?  ?  ?  ?  ?  (7)  (7) Total special items from continuing operations?  ?  ?  ?  ?  39  39 Gain on sale of property?  ?  9  ?  9  ?  ? Gain on sale of Westwood Shipping Lines?  ?  49  ?  49  ?  ? Total$?  $?  $58  $?  $58  $39  $39                                          SOURCE Weyerhaeuser Company