Weyerhaeuser (WY) 8-K Weyerhaeuser Reports Fourth Quarter Results

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

CONSOLIDATED EARNINGS

(in millions, except per-share figures)

	Q1			Q2			Q3			Q4						Year-to-date
	March 31,			June 30,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Net sales and revenues:
Forest Products	$	1,103		$	1,192		$	1,211		$	1,118		$	1,423		$	4,624		$	6,692
Real Estate		172			199			196			337			354			904			1,408
Total net sales and revenues		1,275			1,391			1,407			1,455			1,777			5,528			8,100
Costs and expenses:
Forest Products:
Costs of products sold		978			1,050			973			936			1,210			3,937			5,540
Alternative fuel mixture credits		-			(107	)		(122	)		(115	)		-			(344	)		-
Depreciation, depletion and amortization		122			125			123			121			140			491			578
Selling expenses		43			33			33			38			54			147			227
General and administrative expenses		96			83			79			67			77			325			459
Research and development expenses		13			15			10			13			15			51			64
Charges for restructuring and closures		82			46			67			25			23			220			110
Impairment of goodwill and other assets		18			20			36			108			872			182			1,019
Other operating costs (income), net		6			(77	)		(184	)		(14	)		19			(269	)		11
		1,358			1,188			1,015			1,179			2,410			4,740			8,008
Real Estate:
Costs and operating expenses		149			159			168			280			448			756			1,449
Depreciation and amortization		4			4			3			6			4			17			18
Selling expenses		22			20			19			22			34			83			139
General and administrative expenses		28			17			16			19			24			80			106
Other operating costs, net		-			7			13			10			6			30			2
Impairment of long-lived assets and other related charges		44			58			50			117			432			269			979
		247			265			269			454			948			1,235			2,693
Total costs and expenses		1,605			1,453			1,284			1,633			3,358			5,975			10,701
Operating income (loss)		(330	)		(62	)		123			(178	)		(1,581	)		(447	)		(2,601	)
Forest Products:
Interest expense incurred		(108	)		(107	)		(107	)		(114	)		(123	)		(436	)		(505	)
Less: interest capitalized		2			2			1			1			3			6			59
Gain (loss) on early extinguishment of debt		-			-			-			(28	)		34			(28	)		32
Interest income and other		14			13			15			15			20			57			78
Gain on Uruguay restructuring		-			-			-			-			149			-			250
Equity in income (loss) of affiliates		3			-			(4	)		(4	)		7			(5	)		15
Real Estate:
Interest expense incurred		(7	)		(7	)		(8	)		(8	)		(9	)		(30	)		(45	)
Less: interest capitalized		7			7			6			6			9			26			45
Interest income and other		1			1			3			-			-			5			2
Equity in income of unconsolidated entities		2			11			1			3			5			17			21
Impairments of investments and other related charges		(26	)		(6	)		-			25			(43	)		(7	)		(160	)
Earnings (loss) from continuing operations before income taxes		(442	)		(148	)		30			(282	)		(1,529	)		(842	)		(2,809	)
Income tax benefit (provision)  (1)		176			32			(35	)		101			326			274			900
Loss from continuing operations		(266	)		(116	)		(5	)		(181	)		(1,203	)		(568	)		(1,909	)
Discontinued operations, net of taxes  (2)		-			-			-			-			(11	)		-			667
Net loss		(266	)		(116	)		(5	)		(181	)		(1,214	)		(568	)		(1,242	)
Less: net loss attributable to noncontrolling interests		2			10			5			6			2			23			66
Net loss attributable to Weyerhaeuser common shareholders	$	(264	)	$	(106	)	$	-		$	(175	)	$	(1,212	)	$	(545	)	$	(1,176	)
Basic and diluted net earnings (loss) per share attributable to Weyerhaeuser common shareholders:
Continuing operations	$	(1.25	)	$	(0.50	)	$	-		$	(0.83	)	$	(5.68	)	$	(2.58	)	$	(8.72	)
Discontinued operations		-			-			-			-			(0.05	)		-			3.15
Net earnings (loss) per share	$	(1.25	)	$	(0.50	)	$	-		$	(0.83	)	$	(5.73	)	$	(2.58	)	$	(5.57	)
Dividends paid per share	$	0.25		$	0.25		$	0.05		$	0.05		$	0.60		$	0.60		$	2.40
Weighted average shares outstanding (in thousands):
Basic		211,298			211,356			211,357			211,358			211,289			211,342			211,258
Diluted		211,298			211,356			211,357			211,358			211,289			211,342			211,258
Common shares outstanding at end of period (in thousands)		211,355			211,357			211,357			211,359			211,289			211,359			211,289

PRELIMINARY RESULTS - SUBJECT TO AUDIT

1

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

FOOTNOTES TO CONSOLIDATED EARNINGS

(in millions)

(1) (a) Third quarter and year-to-date 2009 includes $21 million in net tax charges related to the true-up of previous tax liabilities, state tax law and rate changes and interest on unrecognized tax benefits.

(b) Year-to-date 2008 includes $14 million for tax benefits related to the release of tax liabilities.

(2) Discontinued operations for 2008 include the net operating results of our Containerboard, Packaging and Recycling business and Australian operations.

Results of discontinued operations exclude certain general corporate overhead costs that have been allocated to and are included in contribution to earnings for the operating segments.  Discontinued operations include an allocation of net pension and postretirement income or expense.

Summary results of discontinued operations:

				Year-to-date
	Q4 2008			2008
Net sales	$	-		$	3,301
Net earnings from operations (after-tax)	$	3		$	217
Net gain (loss) on divestitures and sales (after-tax)	$	(14	)	$	450
Net earnings (loss) from discontinued operations	$	(11	)	$	667

PRELIMINARY RESULTS - SUBJECT TO AUDIT

2

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

NET SALES AND REVENUES:

(in millions)

	Q1		Q2		Q3		Q4				Year-to-date
	March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008		2009		2008
Timberlands:
Logs:
West	$	82	$	87	$	84	$	76	$	129	$	329	$	547
South		33		43		39		29		37		144		97
Canada		2		-		5		6		4		13		20
Total logs		117		130		128		111		170		486		664
Pay as cut timber sales		7		7		10		7		10		31		32
Timberlands sales and exchanges  (1)		4		40		15		7		7		66		73
Higher and better use land sales  (1)		1		4		5		1		2		11		11
Minerals, oil and gas		14		14		21		13		19		62		61
Products from international operations  (2)		7		10		13		14		13		44		40
Other products		7		3		1		3		3		14		18
		157		208		193		156		224		714		899
Wood Products:
Softwood lumber		222		229		226		208		286		885		1,443
Engineered solid section		55		62		67		54		74		238		414
Engineered I-Joists		33		43		47		39		46		162		284
Oriented strand board		55		58		63		58		88		234		416
Plywood		24		22		25		21		38		92		202
Hardwood lumber		51		56		54		45		59		206		291
Other products produced		43		39		37		27		62		146		225
Other products purchased for resale		59		85		69		58		72		271		493
		542		594		588		510		725		2,234		3,768
Cellulose Fibers:
Pulp		281		255		297		315		311		1,148		1,357
Liquid packaging board		66		77		73		74		76		290		290
Other products		17		17		20		19		26		73		118
		364		349		390		408		413		1,511		1,765
Real Estate:
Single family housing		162		180		185		305		308		832		1,294
Land development		9		18		10		31		45		68		99
Other		1		1		1		1		1		4		15
		172		199		196		337		354		904		1,408
Corporate and Other		40		41		40		44		61		165		392
Containerboard, Packaging and Recycling		-		-		-		-		-		-		3,169
Less: sales of discontinued operations		-		-		-		-		-		-		(3,301	)
	$	1,275	$	1,391	$	1,407	$	1,455	$	1,777	$	5,528	$	8,100

(1) Higher and better use timberlands and other non-strategic timberlands are sold through Forest Products subsidiaries.

(2) Includes logs, plywood and hardwood lumber harvested or produced by our international operations, primarily in South America.

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

NET CONTRIBUTION TO PRE-TAX EARNINGS:

(in millions)

	Q1			Q2			Q3			Q4						Year-to-date
	March 31,			June 30,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Timberlands	$	40		$	66		$	219		$	13		$	62		$	338		$	384
Wood Products		(266	)		(162	)		(97	)		(208	)		(960	)		(733	)		(1,547	)
Cellulose Fibers		31			100			166			147			(29	)		444			147
Real Estate		(96	)		(50	)		(64	)		(89	)		(630	)		(299	)		(1,357	)
Corporate and Other		(43	)		13			(81	)		4			119			(107	)		1,558
Containerboard, Packaging and Recycling		-			-			-			-			-			-			204
	$	(334	)	$	(33	)	$	143		$	(133	)	$	(1,438	)	$	(357	)	$	(611	)

PRELIMINARY RESULTS - SUBJECT TO AUDIT

3

FOOTNOTES TO NET CONTRIBUTION TO PRE-TAX EARNINGS

(includes costs incurred within the company's discontinued operations)

(in millions)

														Year-to-date
	Q1 2009		Q2 2009			Q3 2009			Q4 2009			Q4 2008		2009			2008
Timberlands includes:
Charges for restructuring and closures	$	-	$	(5	)	$	(2	)	$	-		$	-	$	(7	)	$	-
Asset impairments- attributable to Weyerhaeuser shareholders		-		-			-			(15	)		-		(15	)		-
Asset impairments- attributable to noncontrolling interest		-		-			-			(5	)		-		(5	)		-
Gain on sale of 140,000 acres of non-strategic timberlands		-		-			163			-			-		163			-
Sale of mineral royalties		-		-			6			-			-		6			-

																Year-to-date
	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q4 2008			2009			2008
Wood Products includes:
Charges for restructuring and closures	$	(63	)	$	-		$	(1	)	$	(1	)	$	(9	)	$	(65	)	$	(50	)
Goodwill impairments		(3	)		-			-			-			(733	)		(3	)		(742	)
Other asset impairments		(5	)		(16	)		(4	)		(84	)		(19	)		(109	)		(96	)
Reserve for litigation		(19	)		-			-			-			-			(19	)		(18	)
Gain on sale of property		-			1			-			-			-			1			-

														Year-to-date
	Q1 2009			Q2 2009		Q3 2009		Q4 2009			Q4 2008			2009			2008
Cellulose Fibers includes:
Charges for restructuring and closures	$	(1	)	$	-	$	-	$	-		$	-		$	(1	)	$	(1	)
Goodwill impairments		-			-		-		-			(94	)		-			(94	)
Other asset impairments		-			-		-		(2	)		-			(2	)		-
Alternative fuel mixture credits		-			107		122		115			-			344			-

																Year-to-date
	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q4 2008			2009			2008
Real Estate includes:
Charges for restructuring and closures	$	(4	)	$	(2	)	$	(13	)	$	(8	)	$	(10	)	$	(27	)	$	(10	)
Impairment of assets and other related charges - attributable to Weyerhaeuser shareholders		(66	)		(50	)		(42	)		(92	)		(474	)		(250	)		(1,076	)
Impairment of assets and other related charges - attributable to noncontrolling interest		(2	)		(9	)		(4	)		-			(1	)		(15	)		(63	)
Commercial partnership income adjustment		-			-			-			-			-			-			12
Sale of partnership interest		-			9			-			-			-			9			-
Net gain (loss) on land and lot sales		6			7			-			(10	)		(130	)		3			(219	)

																Year-to-date
	Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q4 2008			2009			2008
Corporate and Other includes:
Charges for restructuring and closures	$	(18	)	$	(41	)	$	(64	)	$	(24	)	$	(14	)	$	(147	)	$	(59	)
Asset impairments		(10	)		(4	)		(31	)		(2	)		(22	)		(47	)		(77	)
Cost of sales adjustment on previously impaired Real Estate assets		-			-			-			24			-			24			-
Litigation and insurance settlements		-			20			-			-			-			20			-
Environmental reserve adjustment		-			-			-			-			-			-			(17	)
Gain on Uruguay restructuring		-			-			-			-			149			-			250
Gain on sale of Containerboard, Packaging and Recycling business		-			-			-			-			-			-			1,173
Gain on sale of Australian operations		-			-			-			-			-			-			217
Gain on sale of closed facilities		-			18			-			-			-			18			-
2008 amendments to U.S. postretirement benefit plans		-			-			-			-			-			-			52
Reduction in retiree life insurance benefits		-			-			-			17			-			17			-
Share-based compensation		(3	)		(2	)		(4	)		(4	)		2			(13	)		(20	)
Net foreign exchange gains (losses)		(5	)		21			17			6			(25	)		39			(43	)
Pension and postretirement credits  (1)		24			37			31			29			69			121			186
Lease accounting adjustment		-			-			-			(12	)		-			(12	)		-

(1) Excludes pension and postretirement included in charges for restructuring and closures above.

PRELIMINARY RESULTS - SUBJECT TO AUDIT

4

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

THIRD PARTY SALES VOLUMES:

(in millions)

	Q1		Q2		Q3		Q4				Year-to-date
	March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008		2009		2008
Timberlands (thousands):
Logs - cubic meters:
West		1,090		1,283		1,156		950		1,567		4,479		6,967
South		769		1,062		981		724		861		3,536		2,347
Canada		64		3		144		198		97		409		529
International		77		73		84		71		147		305		329
Wood Products (millions):
Softwood lumber - board feet		890		896		803		764		1,016		3,353		4,722
Engineered solid section - cubic feet		3		4		3		3		5		13		23
Engineered I-Joists - lineal feet		26		36		43		34		38		139		227
Oriented strand board - square feet (3/8")		347		374		363		348		535		1,432		2,438
Plywood  - square feet (3/8")		67		71		84		76		116		298		565
Hardwood lumber - board feet		58		69		66		59		66		252		324
Cellulose Fibers (thousands):
Pulp - air-dry metric tons		409		395		450		443		393		1,697		1,704
Liquid packaging board  - tons		64		77		74		73		76		288		302
Real Estate:
Single-family homes sold		455		790		593		431		329		2,269		2,522
Single-family homes closed		429		464		506		778		755		2,177		3,188
Single-family homes sold but not closed at end of period (backlog)		584		910		997		650		558		650		558

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

TOTAL PRODUCTION VOLUMES:

(in millions)

	Q1		Q2		Q3		Q4				Year-to-date
	March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008		2009		2008
Timberlands (thousands):
Fee depletion  - cubic meters:
West		1,678		1,910		1,603		1,168		2,214		6,359		10,626
South		2,380		2,495		2,258		1,863		2,858		8,996		12,363
International		107		141		122		133		-		503		-
Wood Products (millions):
Softwood lumber - board feet		861		792		777		668		977		3,098		4,451
Engineered solid section - cubic feet		2		3		3		3		4		11		22
Engineered I-Joists - lineal feet		20		24		36		29		39		109		218
Oriented strand board - square feet (3/8")		335		369		390		354		516		1,448		2,468
Plywood - square feet (3/8")		28		37		48		37		75		150		333
Hardwood lumber - board feet		55		48		54		44		51		201		253
Cellulose Fibers (thousands):
Pulp - air-dry metric tons		415		368		429		417		436		1,629		1,760
Liquid packaging board  - tons		65		77		71		69		81		282		297

PRELIMINARY RESULTS - SUBJECT TO AUDIT

5

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)

	March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008
Assets
Forest Products
Current assets:
Cash and cash equivalents	$	1,653	$	1,745	$	1,624	$	1,862	$	2,288
Short-term investments		92		60		47		49		138
Receivables, less allowances		384		402		403		370		429
Receivables for taxes		273		336		299		602		73
Receivable from pension trust		285		285		285		146		200
Inventories		664		530		498		447		702
Prepaid expenses		98		92		87		82		101
Deferred tax assets		150		151		150		109		159
Total current assets		3,599		3,601		3,393		3,667		4,090
Property and equipment, net		3,783		3,747		3,686		3,611		3,869
Construction in progress		95		108		108		52		104
Timber and timberlands at cost, less depletion charged to disposals		4,201		4,173		4,014		4,010		4,205
Investments in and advances to equity affiliates		205		200		199		197		202
Goodwill		40		40		40		40		43
Deferred pension and other assets		564		600		658		756		651
Restricted assets held by special purpose entities		914		916		914		915		916
Noncurrent assets of discontinued operations		-		-		-		-		-
		13,401		13,385		13,012		13,248		14,080
Real Estate
Cash and cash equivalents		3		1		4		7		6
Receivables, less allowances		51		46		31		32		74
Inventory		1,851		1,777		1,734		1,515		1,860
Investments in unconsolidated entities		21		16		16		17		30
Deferred tax assets		439		419		396		299		438
Other assets		183		180		133		126		167
Consolidated assets not owned		32		18		6		6		40
		2,580		2,457		2,320		2,002		2,615
Total assets	$	15,981	$	15,842	$	15,332	$	15,250	$	16,695
Liabilities
Forest Products
Current liabilities:
Notes payable and commercial paper	$	1	$	1	$	3	$	4	$	1
Current maturities of long-term debt		406		388		41		3		407
Accounts payable		285		314		325		317		381
Accrued liabilities		730		760		656		631		933
Current liabilities of discontinued operations		-		-		-		-		-
Total current liabilities		1,422		1,463		1,025		955		1,722
Long-term debt		5,153		5,153		5,150		5,281		5,153
Deferred income taxes		1,723		1,677		1,663		1,538		1,805
Deferred pension, other postretirement benefits and other liabilities		1,718		1,755		1,701		2,000		1,618
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities		763		766		765		768		764
Noncurrent liabilities of discontinued operations		-		-		-		-		-	��
		10,779		10,814		10,304		10,542		11,062
Real Estate
Notes payable and commercial paper		-		-		-		-		-
Long-term debt		456		456		404		402		456
Other liabilities		317		294		259		252		313
Consolidated liabilities not owned		35		1		-		-		17
		808		751		663		654		786
Total liabilities		11,587		11,565		10,967		11,196		11,848
Equity
Weyerhaeuser shareholders' interest		4,381		4,249		4,349		4,044		4,814
Noncontrolling interest		13		28		16		10		33
Total equity		4,394		4,277		4,365		4,054		4,847
Total liabilities and equity	$	15,981	$	15,842	$	15,332	$	15,250	$	16,695

PRELIMINARY RESULTS - SUBJECT TO AUDIT

6

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION  (unaudited)

STATEMENT OF CASH FLOWS

SELECTED INFORMATION (unaudited)

(in millions)

	Q1			Q2			Q3			Q4						Year-to-date
	March 31,			June 30,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Net cash from operations	$	(436	)	$	126		$	34		$	74		$	(1,172	)	$	(202	)	$	(1,311	)
Cash paid for property and equipment  (1)		(53	)		(32	)		(38	)		(56	)		(90	)		(179	)		(372	)
Cash paid for timberlands reforestation  (1)		(15	)		(7	)		(7	)		(7	)		(17	)		(36	)		(53	)
Acquisition of timberlands		(7	)		-			(19	)		10			(18	)		(16	)		(165	)
Cash received from issuances of debt		-			-			-			491			-			491			-
Revolving credit facilities, notes and commercial paper borrowings, net		-			-			-			-			8			-			(373	)
Payments on debt		(1	)		(18	)		(403	)		(432	)		(773	)		(854	)		(972	)
Proceeds from the sale of assets and operations		8			29			313			14			26			364			6,484
Cash paid for dividends		(53	)		(53	)		(10	)		(11	)		(127	)		(127	)		(507	)
Loan to pension trust, net of repayments		(85	)		-			-			139			(200	)		54			(200	)
Repurchases of common stock		(2	)		-			-			-			-			(2	)		-

(1) Capital spending is for Forest Products only and excludes Real Estate.

Forest Products Working Capital by Business Segment

	March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008
Timberlands	$	47	$	36	$	16	$	9	$	20
Wood Products		354		279		250		226		351
Cellulose Fibers		292		284		317		234		290
Corporate and Other  (1)		1,484		1,539		1,785		2,243		1,707
	$	2,177	$	2,138	$	2,368	$	2,712	$	2,368

(1) Corporate and Other segment holds payroll and other liabilities related to the segments and income tax receivable related to Real Estate.

Forest Products Capital Expenditures by Business Segment

	Q1		Q2		Q3		Q4				Year-to-date
	March 31,		June 30,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008		2009		2008
Timberlands	$	28	$	21	$	18	$	16	$	44	$	83	$	110
Wood Products		25		4		4		24		30		57		100
Cellulose Fibers		8		10		20		23		17		61		54
Corporate and Other		7		4		3		-		16		14		61
Containerboard, Packaging and Recycling		-		-		-		-		-		-		100
	$	68	$	39	$	45	$	63	$	107	$	215	$	425

PRELIMINARY RESULTS - SUBJECT TO AUDIT

7