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Press release from PR Newswire

Weyerhaeuser Reports First Quarter Results

Friday, April 27, 2012

Weyerhaeuser Reports First Quarter Results03:05 EDT Friday, April 27, 2012FEDERAL WAY, Wash., April 27, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $41 million for the first quarter, or 8 cents per diluted share, on net sales of $1.5 billion. This compares with net earnings of $99 million on net sales from continuing operations of $1.4 billion for the same period last year.(Logo: http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)Earnings for the first quarter of 2012 include after-tax gains of $32 million from special items. Excluding these items, the company reported net earnings of $9 million, or 2 cents per diluted share. This compares with net earnings before special items of $3 million, or breakeven results per diluted share, in the first quarter of 2011."Even as indicators of a modestly improving U.S. housing market begin to emerge, we remain relentlessly focused on improving our financial performance," said Dan Fulton, president and chief executive officer. "We will take full advantage of recovering markets while positioning Weyerhaeuser for future growth, to the benefit of our shareholders."WEYERHAEUSER FINANCIAL HIGHLIGHTS201120122011(millions, except per share data)4Q1Q1QNet sales from continuing operations$1,615$1,494$1,422Net earnings (1)$65$41$99Weighted average shares outstanding, diluted538540540Earnings per diluted share (1)$0.12$0.08$0.18Net earnings before special items (2)$77$9$3Earnings per diluted share before special items$0.14$0.02$0.00Net cash from operations$147($60)($87)Net change in cash and cash equivalents($18)($225)($4)Cash and cash equivalents at end of period$953$728$1,463(1) The first quarter of 2011 included net earnings of $1 million from discontinued operations, or $0.00 per diluted share, on net sales of $156 million. Discontinued operations include Weyerhaeuser's hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter of 2011.(2) Special items for the first quarter of 2011 include an after-tax gain of $96 million from the sale of non-strategic timberlands.TIMBERLANDSFINANCIAL HIGHLIGHTS (millions)4Q 20111Q 2012ChangeNet sales$274$250($24)Contribution to pre-tax earnings before special items$70$71$1Pre-tax special items???GAAP contribution to pre-tax earnings$70$71$11Q 2012 Performance ? The segment's results improved slightly compared with the fourth quarter. Income from operations increased $13 million, primarily due to lower Western operating costs. This was mostly offset by a $12 million decline in earnings from the disposition of non-strategic timberlands. Fee harvest volumes increased.2Q 2012 Outlook ? Weyerhaeuser expects modestly higher earnings from the Timberlands segment in the second quarter. The company expects higher log sales volumes and slightly improved domestic prices for Western logs, partially offset by an overall increase in fuel costs and seasonally higher silviculture expenses.WOOD PRODUCTSFINANCIAL HIGHLIGHTS (millions)4Q 20111Q 2012ChangeNet sales$542$634$92Charge to pre-tax earnings before special items($61)($22)$39Pre-tax special items(19)?19GAAP charge to pre-tax earnings($80)($22)$581Q 2012 Performance ? Results before special items improved $39 million compared with the fourth quarter. Sales volumes and prices were higher across all product lines, and operating rates improved. These factors were partially offset by increased freight expense.2Q 2012 Outlook ? Weyerhaeuser anticipates approximately breakeven results from the Wood Products segment in the second quarter. The company expects higher sales volumes across all product lines and improved selling prices for lumber.CELLULOSE FIBERSFINANCIAL HIGHLIGHTS (millions)4Q 20111Q 2012ChangeNet sales$523$473($50)Contribution to pre-tax earnings before special items$134$44($90)Pre-tax special items???GAAP contribution to pre-tax earnings$134$44($90)1Q 2012 Performance ? First quarter earnings declined $90 million compared with fourth quarter. Average selling prices for pulp were lower, and sales volumes decreased. Maintenance costs increased significantly and production declined as the segment completed two planned annual maintenance outages in the first quarter. There were no annual maintenance outages in the fourth quarter.2Q 2012 Outlook ? Weyerhaeuser expects slightly higher earnings from the Cellulose Fibers segment in the second quarter due to improved selling prices for pulp, partly offset by higher planned annual maintenance expense.REAL ESTATEFINANCIAL HIGHLIGHTS (millions)4Q 20111Q 2012ChangeNet sales$276$137($139)Contribution (charge) to pre-tax earnings before special items$41($8)($49)Pre-tax special items???GAAP contribution (charge) to pre-tax earnings$41($8)($49)1Q 2012 Performance ? The segment's earnings declined $49 million compared with the fourth quarter. Home closings declined seasonally to 349 single-family homes, and average margins on homes closed fell 8 percentage points due to mix. First quarter results include earnings of $1 million from lot sales, compared with $19 million from the sale of land and lots in the fourth quarter.At the end of the first quarter the backlog of homes sold, but not closed, totaled 777 units, a 27 percent increase compared with one year ago.2Q 2012 Outlook ? Weyerhaeuser expects a slight profit from the Real Estate segment in the second quarter. A land sale completed in April 2012 will contribute approximately $10 million to earnings. The company anticipates a small loss from single family homebuilding operations. Home closings should increase seasonally.OTHER ITEMSFirst quarter Unallocated Items include net pre-tax gains of $38 million from special items, comprised of a gain of $52 million from postretirement plan amendments and charges of $14 million for impairments, restructuring and other items.First quarter special items also include a benefit of $8 million for income tax settlements.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. Learn more at www.weyerhaeuser.com.EARNINGS CALL INFORMATIONWeyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 27 to discuss first quarter results.To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 27.To join the conference call from within North America, dial 877-296-9413 (access code ? 41403656) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code ? 41403656). Replays will be available for one week at 855-859-2056 (access code ? 41403656) from within North America and at 404-537-3406 (access code ? 41403656) from outside North America.The webcast is available to both institutional and individual investors through the Thomson StreetEvents Network. Individual investors can listen to the call at www.fulldisclosure.com, Thomson's individual investor portal. Institutional investors can access the call via Thomson's password-protected site at 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 second quarter of 2012, including higher log sales volumes, slightly improved domestic prices for Western logs, increased fuel costs, seasonally higher silviculture expenses, and modestly higher earnings in the Timberlands segment; higher sales volumes across all product lines, improved selling prices for lumber, and a slight operating loss in the Wood Products segment; improved selling prices for pulp, higher planned annual maintenance expense, and slightly higher earnings in the Cellulose Fiber segment; and a small loss from single-family homebuilding operations, seasonally higher home closings, and a slight profit 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 weather; 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 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. Restrictions on international trade or tariffs imposed on imports also may affect the company.   For more information contact:Media - Anthony Chavez (253) 924-7148Analysts - Kathryn McAuley (253) 924-2058 Exhibit 99.2Weyerhaeuser CompanyQ1.2012 Analyst PackagePreliminary results, subject to auditConsolidated Statement of Operationsin millionsQ4Q1 December 31, 2011March 31, 2012March 31, 2011Net sales and revenues$                   1,615$             1,494$            1,422Cost of products sold1,3171,2901,177Gross margin298204245Selling, general and administrative expenses149150172Research and development expenses977Charges for restructuring, closures and impairments31124Other operating income, net(22)(66)(174)Operating income131101236Interest income and other121211Interest expense, net of capitalized interest(88)(87)(93)Earnings from continuing operations before income taxes5526154Income taxes1015(56)Earnings from continuing operations654198Earnings from discontinued operations, net of income taxes--1Net earnings attributable to Weyerhaeuser common shareholders$                        65$                  41$                  99Per Share InformationQ4Q1 December 31, 2011March 31, 2012March 31, 2011Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted:Continuing operations$                      0.12$                0.08$                0.18Discontinued operations---Net earnings per share$                      0.12$                0.08$                0.18Dividends paid per share$                      0.15$                0.15$                0.15Weighted average shares outstanding (in thousands):Basic536,432537,368537,140Diluted538,119539,728540,476Common shares outstanding at end of period (in thousands)536,425537,409538,408Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*in millionsQ4Q1 December 31, 2011March 31, 2012March 31, 2011Operating income$                      131$               101$               236Depreciation, depletion and amortization117113121Special items19(38)(152)Capitalized interest included in cost of products sold1235EBITDA, excluding special items*$                      279$               179$               210  Weyerhaeuser CompanyQ1.2012 Analyst PackagePreliminary results, subject to auditConsolidated Balance Sheetin millionsMarch 31, 2012December 31, 2011ASSETSForest Products:Current assets:Cash and cash equivalents$                 726$                       950Receivables, less allowances503490Inventories517476Prepaid expenses8068Deferred tax assets11381Total current assets1,9392,065Property and equipment, net2,8292,901Construction in progress192145Timber and timberlands at cost, less depletion charged to disposals3,9703,978Investments in and advances to equity affiliates189192Goodwill4040Other assets442444Restricted assets held by special purpose entities91491610,51510,681Real Estate:Cash and cash equivalents23Receivables, less allowances3041Real estate in process of development and for sale606555Land being processed for development943936Investments in and advances to equity affiliates1921Deferred tax assets246240Other assets113113Consolidated assets not owned-81,9591,917Total assets$          12,474$                12,598LIABILITIES AND EQUITYForest Products:Current liabilities:Current maturities of long-term debt$                 167$                         12Accounts payable343336Accrued liabilities536593Total current liabilities1,046941Long-term debt4,0264,181Deferred income taxes10893Deferred pension and other postretirement benefits1,4701,467Other liabilities407408Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities7757767,8327,866Real Estate:Long-term debt283285Other liabilities154172Consolidated liabilities not owned-8437465Total liabilities8,2698,331Equity:Total Weyerhaeuser shareholders' interest4,1974,263Noncontrolling interests84Total equity4,2054,267Total liabilities and equity$          12,474$                12,598Weyerhaeuser CompanyQ1.2012 Analyst PackagePreliminary results, subject to auditConsolidated Statement of Cash Flowsin millionsQ4Q1 December 31, 2011March 31, 2012March 31, 2011Cash flows from operations:Net earnings$                         65$                   41$                   99Noncash charges (credits) to income:Depreciation, depletion and amortization117113123Deferred income taxes, net51(6)39Pension and other postretirement benefits21(28)24Share-based compensation expense61014Charges for impairment of assets1981Net gains on dispositions of assets(9)(7)(156)Foreign exchange transaction gains(5)(7)(7)Change in:Receivables less allowances(19)(5)(59)Receivable for taxes(18)(2)(20)Inventories(6)(40)(66)Real estate and land37(55)(2)Prepaid expenses17(8)(10)Accounts payable and accrued liabilities(59)(56)(38)Deposits on land positions and other assets5--Pension and postretirement contributions(79)(35)(19)Other417(10)Net cash from operations147(60)(87)Cash flows from investing activities:Property and equipment(76)(54)(35)Timberlands reforestation(6)(10)(12)Proceeds from sale of assets96193Other715Cash from investing activities(66)(57)151Cash flows from financing activities:Cash dividends(81)(81)(81)Change in book overdrafts28(29)(19)Payments on debt(33)(2)(2)Exercises of stock options1534Repurchase of common stock(13)--Other(1)(1)-Cash from financing activities(99)(108)(68)Net change in cash and cash equivalents(18)(225)(4)Cash and cash equivalents at beginning of period9719531,467Cash and cash equivalents at end of period$                       953$                 728$              1,463 Cash paid (received) during the year for:Interest, net of amount capitalized$                         58$                 114$                 156Income taxes$                           7$                 (10)$                     2Weyerhaeuser CompanyTotal Company StatisticsQ1.2012 Analyst PackagePreliminary results, subject to auditSpecial Items Included in Net Earningsin millionsQ4Q1 December 31, 2011March 31, 2012March 31, 2011 Net earnings$                        65$                  41$                  99Gain on sale of 82,000 acres of non-strategic timberlands--(96)Restructuring, impairments and other charges1210-Gain on postretirement plan amendment-(34)-Tax settlements-(8)-Net earnings before special items$                        77$                    9$                    3Q4Q1 December 31, 2011March 31, 2012March 31, 2011Net earnings per diluted share$                     0.12$              0.08$              0.18Gain on sale of 82,000 acres of non-strategic timberlands--(0.18)Restructuring, impairments and other charges0.020.02-Gain on postretirement plan amendment-(0.06)-Tax settlements-(0.02)-Net earnings before special items per diluted share$                     0.14$              0.02$                   -Selected Total Company Items, Excluding Discontinued Operationsin millionsQ4Q1 December 31, 2011March 31, 2012March 31, 2011Depreciation, depletion and amortization:Cost of products sold$                       104$                 102$                 105Selling, general and administrative expenses131116Total depreciation, depletion and amortization$                       117$                 113$                 121Pension and postretirement costs:Pension and postretirement costs allocated to business segments$                         12$                   13$                   10Pension and postretirement costs not allocated5712Total company pension and postretirement costs$                         17$                   20$                   22Total increase in Forest Products working capital (1)$                        (41)$               (148)$               (194)Cash spent for capital expenditures$                        (82)$                 (64)$                 (47)(1)  Working capital does not include cash balances.Weyerhaeuser CompanyTimberlands SegmentQ1.2012 Analyst PackagePreliminary results, subject to auditSegment Statement of Operationsin millionsQ4.2011Q1.2012Q1.2011Sales to and revenues from unaffiliated customers$             274$             250$            230Intersegment sales167190191Total net sales and revenues441440421Cost of products sold359352320Gross margin8288101Selling, general and administrative expenses212523Research and development expenses644Other operating income, net(14)(11)(166)Operating income6970240Interest income and other111Net contribution to earnings$              70$              71$           241Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*in millionsQ4.2011Q1.2012Q1.2011Operating income$              69$              70$           240Depreciation, depletion and amortization353531Special items--(152)EBITDA, excluding special items*$           104$           105$           119Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)Q4.2011Q1.2012Q1.2011Gain on sale of 82,000 acres of non-strategic timberlands$               -$               -$            152Selected Segment ItemsQ4.2011Q1.2012Q1.2011Total increase in working capital (1)$               (4)$             (11)$               (9)Cash spent for capital expenditures$             (13)$             (12)$             (14)(1)  Working capital does not include cash balances.Segment StatisticsQ4.2011Q1.2012Q1.2011Third PartyNet Sales and Revenue (millions)Logs:West$             139$             130$            110South535041Canada577Total Logs197187158Pay as cut timber sales9118Timberlands exchanges15821Higher and better use land sales1444Minerals, oil and gas10714Products from international operations272517Other products288Total$             274$             250$            230LogsThird Party SalesRealizations(per cubic meter)West$          99.71$          99.10$       100.20South$          39.82$          40.48$         41.22Canada$          34.04$          36.35$         34.73International$          17.03$          22.97$         22.12LogsThird Party SalesVolumes(cubic meters,thousands)West1,3961,3081,095South1,3271,2281,005Canada146205194International757872Total2,9442,8192,366LogsFee Harvest Volumes(cubic meters,thousands)West1,6331,6791,611South2,6682,7142,180International26517298Total4.5664.5653.889Weyerhaeuser CompanyWood Products SegmentQ1.2012 Analyst PackagePreliminary results, subject to auditSegment Statement of Operationsin millionsQ4.2011Q1.2012Q1.2011Sales to and revenues from unaffiliated customers$         542$         634$         526Intersegment sales192020Total net sales and revenues561654546Cost of products sold576620536Gross margin(15)3410Selling, general and administrative expenses465050Research and development expenses111Charges for restructuring, closures and impairments2012Other operating costs (income), net(2)5(5)Operating loss(80)(23)(38)Interest income and other-12Net contribution to earnings$        (80)$        (22)$        (36)Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*in millionsQ4.2011Q1.2012Q1.2011Operating loss$        (80)$        (23)$        (38)Depreciation, depletion and amortization353441Special items19--EBITDA, excluding special items*$        (26)$          11$            3Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)Q4.2011Q1.2012Q1.2011Charges for restructuring, closures and impairments$         (19)$            -$            -Selected Segment ItemsQ4.2011Q1.2012Q1.2011Total decrease (increase) in working capital (1)$           21$       (104)$       (115)Cash spent for capital expenditures$         (14)$           (6)$           (6)(1)  Working capital does not include cash balances.Segment Statisticsin millions, except for third-party sales realizationsQ4.2011Q1.2012Q1.2011Structural Lumber(board feet)Third Party Net Sales and Revenue$         256$         291$         260Third Party Sales Realizations$    296.09$    311.00$    315.26Third Party Sales Volumes863937826Production Volumes842958893Engineered SolidSection(cubic feet)Third Party Net Sales and Revenue$           55$           65$           53Third Party Sales Realizations$ 1,782.64$ 1,830.07$ 2,026.49Third Party Sales Volumes343Production Volumes244EngineeredI-joists(lineal feet)Third Party Net Sales and Revenue$           36$           41$           33Third Party Sales Realizations$ 1,257.62$ 1,284.98$ 1,266.51Third Party Sales Volumes303226Production Volumes263430Oriented StrandBoard(square feet 3/8')Third Party Net Sales and Revenue$           90$         111$           82Third Party Sales Realizations$    173.28$    196.89$    190.76Third Party Sales Volumes516565432Production Volumes541601494Softwood Plywood (square feet 3/8')Third Party Net Sales and Revenue$           18$           23$           15Third Party Sales Realizations$    274.02$    309.26$    256.13Third Party Sales Volumes657358Production Volumes475153Weyerhaeuser CompanyCellulose Fibers SegmentQ1.2012 Analyst PackagePreliminary results, subject to auditSegment Statement of Operationsin millionsQ4.2011Q1.2012Q1.2011Total net sales and revenues$        523$        473$        506Cost of products sold370411400Gross margin15362106Selling, general and administrative expenses242422Research and development expenses222Charges for restructuring and impairments1--Other operating income, net(7)(9)(5)Operating income1334587Interest income and other1(1)(1)Net contribution to earnings$        134$          44$          86Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*in millionsQ4.2011Q1.2012Q1.2011Operating income$        133$          45$          87Depreciation, depletion and amortization373737EBITDA, excluding special items*$        170$          82$        124Selected Segment ItemsQ4.2011Q1.2012Q1.2011Total decrease (increase) in working capital (1)$         (26)$           49$           20Cash spent for capital expenditures$         (54)$         (45)$         (26)(1)  Working capital does not include cash balances.Segment StatisticsQ4.2011Q1.2012Q1.2011Pulp(air-dry metrictons)Third Party Net Sales and Revenue (millions)$         419$         367$         398Third Party Sales Realizations$    894.71$    818.42$    912.12Third Party Sales Volumes (thousands)468449436Production Volumes (thousands)460438437LiquidPackagingBoard(tons)Third Party Net Sales and Revenue (millions)$           81$           83$           85Third Party Sales Realizations$ 1,151.48$ 1,181.34$ 1,148.29Third Party Sales Volumes (thousands)707074Production Volumes (thousands)796567Weyerhaeuser CompanyReal Estate SegmentQ1.2012 Analyst PackagePreliminary results, subject to auditSegment Statement of Operationsin millionsQ4.2011Q1.2012Q1.2011Total net sales and revenues$   276$   137$   160Cost of products sold191113126Gross margin852434Selling, general and administrative expenses373235Charges for restructuring, closures and impairments1011Other operating income, net(1)--Operating income (loss)39(9)(2)Interest income and other211Net contribution to earnings$      41$      (8)$      (1)Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*in millionsQ4.2011Q1.2012Q1.2011Operating income (loss)$      39$      (9)$      (2)Depreciation, depletion and amortization423Capitalized interest included in cost of products sold1034EBITDA, excluding special items*$      53$      (4)$        5Selected Segment ItemsQ4.2011Q1.2012Q1.2011Cash spent for capital expenditures$       (1)$       (1)$       (1)Segment StatisticsQ4.2011Q1.2012Q1.2011Net sales and revenues:Single-family housing$     232$     131$     152Land4437Other-31Total net sales and revenue$     276$     137$     160Single-family homes sold406697535Single-family homes closed582349363Single-family homes sold but not closed (backlog)429777611Single-family cancellation rate18.2 %10.1 %11.6 %Single-family buyer traffic10,53314,27212,904Single-family average price of homes closed (in thousands)$     398$     376$     419Single-family home gross margin - excluding impairments (1)25.4 %17.3 %21.7 %(1) Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).Weyerhaeuser CompanyUnallocated ItemsQ1.2012 Analyst PackagePreliminary results, subject to auditUnallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; and foreign exchange transaction gains and losses associated with financing.Contribution to Earningsin millionsQ4.2011Q1.2012Q1.2011Unallocated corporate function expenses$       (8)$       (6)$     (17)Unallocated share-based compensation(6)(5)(16)Unallocated pension & postretirement costs(5)(7)(12)Foreign exchange gains466Other(15)30(12)Operating income (loss)(30)18(51)Interest income and other8108Net contribution to earnings from continuing operations(22)28(43)Net contribution to earnings from discontinued operations--2Net contribution to earnings$    (22)$      28$    (41)Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*in millionsQ4.2011Q1.2012Q1.2011Operating income (loss)$    (30)$      18$    (51)Depreciation, depletion and amortization659Special items-(38)-Capitalized interest included in cost of products sold2-1EBITDA, excluding special items*$    (22)$    (15)$    (41)Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)Q4.2011Q1.2012Q1.2011Gain on postretirement plan amendment$       -$       52$       -Restructuring, impairments and other charges-(14)-Total$       -$      38$       -Unallocated Selected ItemsQ4.2011Q1.2012Q1.2011Total increase in working capital (1)$     (32)$     (82)$     (90)(1)  Working capital does not include cash balances. *EBITDA excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. EBITDA excluding special items, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. EBITDA excluding special items should not be considered in isolation from and is not intended to represent an alternative to our results computed under GAAP.  SOURCE Weyerhaeuser Company