Weyerhaeuser Reports First Quarter Results

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Apr 27, 2012, 03:05 ET

FEDERAL 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 HIGHLIGHTS	2011	2012	2011
(millions, except per share data)	4Q	1Q	1Q
Net sales from continuing operations	$1,615	$1,494	$1,422
Net earnings (1)	$65	$41	$99
Weighted average shares outstanding, diluted	538	540	540
Earnings per diluted share (1)	$0.12	$0.08	$0.18
Net earnings before special items (2)	$77	$9	$3
Earnings per diluted share before special items	$0.14	$0.02	$0.00
Net 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.



TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	4Q 2011	1Q 2012	Change
Net sales	$274	$250	($24)
Contribution to pre-tax earnings before special items	$70	$71	$1
Pre-tax special items	—	—	—
GAAP contribution to pre-tax earnings	$70	$71	$1

1Q 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 PRODUCTS

FINANCIAL HIGHLIGHTS (millions)	4Q 2011	1Q 2012	Change
Net sales	$542	$634	$92
Charge to pre-tax earnings before special items	($61)	($22)	$39
Pre-tax special items	(19)	—	19
GAAP charge to pre-tax earnings	($80)	($22)	$58

1Q 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 FIBERS

FINANCIAL HIGHLIGHTS (millions)	4Q 2011	1Q 2012	Change
Net 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 ESTATE

FINANCIAL HIGHLIGHTS (millions)	4Q 2011	1Q 2012	Change
Net 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 ITEMS

First 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 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 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 INFORMATION

Weyerhaeuser 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 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 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) 924-7148
Analysts - Kathryn McAuley (253) 924-2058

Exhibit 99.2
Weyerhaeuser Company
Q1.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations

in millions	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Net sales and revenues	$ 1,615	$ 1,494	$ 1,422
Cost of products sold	1,317	1,290	1,177
Gross margin	298	204	245
Selling, general and administrative expenses	149	150	172
Research and development expenses	9	7	7
Charges for restructuring, closures and impairments	31	12	4
Other operating income, net	(22)	(66)	(174)
Operating income	131	101	236
Interest income and other	12	12	11
Interest expense, net of capitalized interest	(88)	(87)	(93)
Earnings from continuing operations before income taxes	55	26	154
Income taxes	10	15	(56)
Earnings from continuing operations	65	41	98
Earnings from discontinued operations, net of income taxes	-	-	1
Net earnings attributable to Weyerhaeuser common shareholders	$ 65	$ 41	$ 99


Per Share Information

	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted:
Continuing operations	$ 0.12	$ 0.08	$ 0.18
Discontinued operations	-	-	-
Net earnings per share	$ 0.12	$ 0.08	$ 0.18
Dividends paid per share	$ 0.15	$ 0.15	$ 0.15
Weighted average shares outstanding (in thousands):
Basic	536,432	537,368	537,140
Diluted	538,119	539,728	540,476
Common shares outstanding at end of period (in thousands)	536,425	537,409	538,408

Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*

in millions	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Operating income	$ 131	$ 101	$ 236
Depreciation, depletion and amortization	117	113	121
Special items	19	(38)	(152)
Capitalized interest included in cost of products sold	12	3	5
EBITDA, excluding special items*	$ 279	$ 179	$ 210

Weyerhaeuser Company
Q1.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet

in millions
	March 31, 2012	December 31, 2011
ASSETS
Forest Products:
Current assets:
Cash and cash equivalents	$ 726	$ 950
Receivables, less allowances	503	490
Inventories	517	476
Prepaid expenses	80	68
Deferred tax assets	113	81
Total current assets	1,939	2,065
Property and equipment, net	2,829	2,901
Construction in progress	192	145
Timber and timberlands at cost, less depletion charged to disposals	3,970	3,978
Investments in and advances to equity affiliates	189	192
Goodwill	40	40
Other assets	442	444
Restricted assets held by special purpose entities	914	916
	10,515	10,681
Real Estate:
Cash and cash equivalents	2	3
Receivables, less allowances	30	41
Real estate in process of development and for sale	606	555
Land being processed for development	943	936
Investments in and advances to equity affiliates	19	21
Deferred tax assets	246	240
Other assets	113	113
Consolidated assets not owned	-	8
	1,959	1,917
Total assets	$ 12,474	$ 12,598

LIABILITIES AND EQUITY
Forest Products:
Current liabilities:
Current maturities of long-term debt	$ 167	$ 12
Accounts payable	343	336
Accrued liabilities	536	593
Total current liabilities	1,046	941
Long-term debt	4,026	4,181
Deferred income taxes	108	93
Deferred pension and other postretirement benefits	1,470	1,467
Other liabilities	407	408
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities	775	776
	7,832	7,866
Real Estate:
Long-term debt	283	285
Other liabilities	154	172
Consolidated liabilities not owned	-	8
	437	465
Total liabilities	8,269	8,331
Equity:
Total Weyerhaeuser shareholders' interest	4,197	4,263
Noncontrolling interests	8	4
Total equity	4,205	4,267
Total liabilities and equity	$ 12,474	$ 12,598

Weyerhaeuser Company
Q1.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows

in millions	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Cash flows from operations:
Net earnings	$ 65	$ 41	$ 99
Noncash charges (credits) to income:
Depreciation, depletion and amortization	117	113	123
Deferred income taxes, net	51	(6)	39
Pension and other postretirement benefits	21	(28)	24
Share-based compensation expense	6	10	14
Charges for impairment of assets	19	8	1
Net 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 land	37	(55)	(2)
Prepaid expenses	17	(8)	(10)
Accounts payable and accrued liabilities	(59)	(56)	(38)
Deposits on land positions and other assets	5	-	-
Pension and postretirement contributions	(79)	(35)	(19)
Other	4	17	(10)
Net cash from operations	147	(60)	(87)

Cash flows from investing activities:
Property and equipment	(76)	(54)	(35)
Timberlands reforestation	(6)	(10)	(12)
Proceeds from sale of assets	9	6	193
Other	7	1	5
Cash from investing activities	(66)	(57)	151

Cash flows from financing activities:
Cash dividends	(81)	(81)	(81)
Change in book overdrafts	28	(29)	(19)
Payments on debt	(33)	(2)	(2)
Exercises of stock options	1	5	34
Repurchase 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 period	971	953	1,467
Cash 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	$ 156
Income taxes	$ 7	$ (10)	$ 2

Weyerhaeuser Company		Total Company Statistics
Q1.2012 Analyst Package
Preliminary results, subject to audit

Special Items Included in Net Earnings

in millions	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Net earnings	$ 65	$ 41	$ 99
Gain on sale of 82,000 acres of non-strategic timberlands	-	-	(96)
Restructuring, impairments and other charges	12	10	-
Gain on postretirement plan amendment	-	(34)	-
Tax settlements	-	(8)	-
Net earnings before special items	$ 77	$ 9	$ 3

	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Net earnings per diluted share	$ 0.12	$ 0.08	$ 0.18
Gain on sale of 82,000 acres of non-strategic timberlands	-	-	(0.18)
Restructuring, impairments and other charges	0.02	0.02	-
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 Operations

in millions	Q4	Q1
	December 31, 2011	March 31, 2012	March 31, 2011
Depreciation, depletion and amortization:
Cost of products sold	$ 104	$ 102	$ 105
Selling, general and administrative expenses	13	11	16
Total depreciation, depletion and amortization	$ 117	$ 113	$ 121

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 12	$ 13	$ 10
Pension and postretirement costs not allocated	5	7	12
Total company pension and postretirement costs	$ 17	$ 20	$ 22

Total 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 Company			Timberlands Segment
Q1.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q4.2011	Q1.2012	Q1.2011
Sales to and revenues from unaffiliated customers		$ 274	$ 250	$ 230
Intersegment sales		167	190	191
Total net sales and revenues		441	440	421
Cost of products sold		359	352	320
Gross margin		82	88	101
Selling, general and administrative expenses		21	25	23
Research and development expenses		6	4	4
Other operating income, net		(14)	(11)	(166)
Operating income		69	70	240
Interest income and other		1	1	1
Net contribution to earnings		$ 70	$ 71	$ 241

Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*

in millions		Q4.2011	Q1.2012	Q1.2011
Operating income		$ 69	$ 70	$ 240
Depreciation, depletion and amortization		35	35	31
Special items		-	-	(152)
EBITDA, excluding special items*		$ 104	$ 105	$ 119


Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

		Q4.2011	Q1.2012	Q1.2011
Gain on sale of 82,000 acres of non-strategic timberlands		$ -	$ -	$ 152

Selected Segment Items

		Q4.2011	Q1.2012	Q1.2011
Total 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 Statistics

		Q4.2011	Q1.2012	Q1.2011
Third Party Net Sales and Revenue (millions)	Logs:
	West	$ 139	$ 130	$ 110
	South	53	50	41
	Canada	5	7	7
	Total Logs	197	187	158
	Pay as cut timber sales	9	11	8
	Timberlands exchanges	15	8	21
	Higher and better use land sales	14	4	4
	Minerals, oil and gas	10	7	14
	Products from international operations	27	25	17
	Other products	2	8	8
	Total	$ 274	$ 250	$ 230
Logs Third Party Sales Realizations (per cubic meter)	West	$ 99.71	$ 99.10	$ 100.20
	South	$ 39.82	$ 40.48	$ 41.22
	Canada	$ 34.04	$ 36.35	$ 34.73
	International	$ 17.03	$ 22.97	$ 22.12
Logs Third Party Sales Volumes (cubic meters, thousands)	West	1,396	1,308	1,095
	South	1,327	1,228	1,005
	Canada	146	205	194
	International	75	78	72
	Total	2,944	2,819	2,366
Logs Fee Harvest Volumes (cubic meters, thousands)	West	1,633	1,679	1,611
	South	2,668	2,714	2,180
	International	265	172	98
	Total	4.566	4.565	3.889

Weyerhaeuser Company			Wood Products Segment
Q1.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q4.2011	Q1.2012	Q1.2011
Sales to and revenues from unaffiliated customers		$ 542	$ 634	$ 526
Intersegment sales		19	20	20
Total net sales and revenues		561	654	546
Cost of products sold		576	620	536
Gross margin		(15)	34	10
Selling, general and administrative expenses		46	50	50
Research and development expenses		1	1	1
Charges for restructuring, closures and impairments		20	1	2
Other operating costs (income), net		(2)	5	(5)
Operating loss		(80)	(23)	(38)
Interest income and other		-	1	2
Net contribution to earnings		$ (80)	$ (22)	$ (36)

Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*

in millions		Q4.2011	Q1.2012	Q1.2011
Operating loss		$ (80)	$ (23)	$ (38)
Depreciation, depletion and amortization		35	34	41
Special items		19	-	-
EBITDA, excluding special items*		$ (26)	$ 11	$ 3


Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

		Q4.2011	Q1.2012	Q1.2011
Charges for restructuring, closures and impairments		$ (19)	$ -	$ -

Selected Segment Items

		Q4.2011	Q1.2012	Q1.2011
Total 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 Statistics

in millions, except for third-party sales realizations		Q4.2011	Q1.2012	Q1.2011
Structural Lumber (board feet)	Third Party Net Sales and Revenue	$ 256	$ 291	$ 260
	Third Party Sales Realizations	$ 296.09	$ 311.00	$ 315.26
	Third Party Sales Volumes	863	937	826
	Production Volumes	842	958	893
Engineered Solid Section (cubic feet)	Third Party Net Sales and Revenue	$ 55	$ 65	$ 53
	Third Party Sales Realizations	$ 1,782.64	$ 1,830.07	$ 2,026.49
	Third Party Sales Volumes	3	4	3
	Production Volumes	2	4	4
Engineered I-joists (lineal feet)	Third Party Net Sales and Revenue	$ 36	$ 41	$ 33
	Third Party Sales Realizations	$ 1,257.62	$ 1,284.98	$ 1,266.51
	Third Party Sales Volumes	30	32	26
	Production Volumes	26	34	30
Oriented Strand Board (square feet 3/8')	Third Party Net Sales and Revenue	$ 90	$ 111	$ 82
	Third Party Sales Realizations	$ 173.28	$ 196.89	$ 190.76
	Third Party Sales Volumes	516	565	432
	Production Volumes	541	601	494
Softwood Plywood (square feet 3/8')	Third Party Net Sales and Revenue	$ 18	$ 23	$ 15
	Third Party Sales Realizations	$ 274.02	$ 309.26	$ 256.13
	Third Party Sales Volumes	65	73	58
	Production Volumes	47	51	53

Weyerhaeuser Company			Cellulose Fibers Segment
Q1.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q4.2011	Q1.2012	Q1.2011
Total net sales and revenues		$ 523	$ 473	$ 506
Cost of products sold		370	411	400
Gross margin		153	62	106
Selling, general and administrative expenses		24	24	22
Research and development expenses		2	2	2
Charges for restructuring and impairments		1	-	-
Other operating income, net		(7)	(9)	(5)
Operating income		133	45	87
Interest income and other		1	(1)	(1)
Net contribution to earnings		$ 134	$ 44	$ 86

Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*

in millions		Q4.2011	Q1.2012	Q1.2011
Operating income		$ 133	$ 45	$ 87
Depreciation, depletion and amortization		37	37	37
EBITDA, excluding special items*		$ 170	$ 82	$ 124


Selected Segment Items

		Q4.2011	Q1.2012	Q1.2011
Total decrease (increase) in working capital (1)		$ (26)	$ 49	$ 20
Cash spent for capital expenditures		$ (54)	$ (45)	$ (26)

(1) Working capital does not include cash balances.

Segment Statistics

		Q4.2011	Q1.2012	Q1.2011
Pulp (air-dry metric tons)	Third Party Net Sales and Revenue (millions)	$ 419	$ 367	$ 398
	Third Party Sales Realizations	$ 894.71	$ 818.42	$ 912.12
	Third Party Sales Volumes (thousands)	468	449	436
	Production Volumes (thousands)	460	438	437
Liquid Packaging Board (tons)	Third Party Net Sales and Revenue (millions)	$ 81	$ 83	$ 85
	Third Party Sales Realizations	$ 1,151.48	$ 1,181.34	$ 1,148.29
	Third Party Sales Volumes (thousands)	70	70	74
	Production Volumes (thousands)	79	65	67

Weyerhaeuser Company		Real Estate Segment
Q1.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q4.2011	Q1.2012	Q1.2011
Total net sales and revenues	$ 276	$ 137	$ 160
Cost of products sold	191	113	126
Gross margin	85	24	34
Selling, general and administrative expenses	37	32	35
Charges for restructuring, closures and impairments	10	1	1
Other operating income, net	(1)	-	-
Operating income (loss)	39	(9)	(2)
Interest income and other	2	1	1
Net contribution to earnings	$ 41	$ (8)	$ (1)

Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*

in millions	Q4.2011	Q1.2012	Q1.2011
Operating income (loss)	$ 39	$ (9)	$ (2)
Depreciation, depletion and amortization	4	2	3
Capitalized interest included in cost of products sold	10	3	4
EBITDA, excluding special items*	$ 53	$ (4)	$ 5


Selected Segment Items

	Q4.2011	Q1.2012	Q1.2011
Cash spent for capital expenditures	$ (1)	$ (1)	$ (1)

Segment Statistics

	Q4.2011	Q1.2012	Q1.2011
Net sales and revenues:
Single-family housing	$ 232	$ 131	$ 152
Land	44	3	7
Other	-	3	1
Total net sales and revenue	$ 276	$ 137	$ 160
Single-family homes sold	406	697	535
Single-family homes closed	582	349	363
Single-family homes sold but not closed (backlog)	429	777	611
Single-family cancellation rate	18.2 %	10.1 %	11.6 %
Single-family buyer traffic	10,533	14,272	12,904
Single-family average price of homes closed (in thousands)	$ 398	$ 376	$ 419
Single-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 Company		Unallocated Items
Q1.2012 Analyst Package
Preliminary results, subject to audit

Unallocated 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 Earnings

in millions	Q4.2011	Q1.2012	Q1.2011
Unallocated corporate function expenses	$ (8)	$ (6)	$ (17)
Unallocated share-based compensation	(6)	(5)	(16)
Unallocated pension & postretirement costs	(5)	(7)	(12)
Foreign exchange gains	4	6	6
Other	(15)	30	(12)
Operating income (loss)	(30)	18	(51)
Interest income and other	8	10	8
Net contribution to earnings from continuing operations	(22)	28	(43)
Net contribution to earnings from discontinued operations	-	-	2
Net contribution to earnings	$ (22)	$ 28	$ (41)

Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*

in millions	Q4.2011	Q1.2012	Q1.2011
Operating income (loss)	$ (30)	$ 18	$ (51)
Depreciation, depletion and amortization	6	5	9
Special items	-	(38)	-
Capitalized interest included in cost of products sold	2	-	1
EBITDA, excluding special items*	$ (22)	$ (15)	$ (41)


Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)

	Q4.2011	Q1.2012	Q1.2011
Gain on postretirement plan amendment	$ -	$ 52	$ -
Restructuring, impairments and other charges	-	(14)	-
Total	$ -	$ 38	$ -

Unallocated Selected Items

	Q4.2011	Q1.2012	Q1.2011
Total 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.