Weyerhaeuser Reports Fourth Quarter, Full Year Results

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Feb 03, 2012, 04:21 ET

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 HIGHLIGHTS	2011		2010
(millions, except per share data)	3Q	4Q	4Q
Net sales
From continuing operations	$1,569	$1,615	$1,516
From discontinued operations (1)	$83	$0	$148
Total net sales	$1,652	$1,615	$1,664
Net earnings
From continuing operations	$133	$65	$171
From discontinued operations (1)	$24	$0	$0
Net earnings	$157	$65	$171
Weighted average shares outstanding, diluted	540	538	538
Earnings per diluted share
From continuing operations	$0.25	$0.12	$0.32
From discontinued operations (1)	$0.04	$0.00	$0.00
Earnings per diluted share	$0.29	$0.12	$0.32
Net earnings before special items	$66	$77	$52
Earnings per diluted share before special items	$0.12	$0.14	$0.10
Net cash from operations	$117	$147	$225
Net change in cash and cash equivalents	$90	($18)	$99
Cash and cash equivalents at end of period	$971	$953	$1,467

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	3Q 2011	4Q 2011	Change
Net sales	$252	$274	$22
Contribution to pre-tax earnings before special items	$62	$70	$8
Pre-tax gain from special items	$0	$0	$0
GAAP 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 2011	4Q 2011	Change
Net 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	$4
Total charge to pre-tax earnings before special items	($47)	($61)	($14)
Pre-tax charge from special items	($46)	($19)	$27
GAAP 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 2011	4Q 2011	Change
Net sales	$503	$523	$20
Contribution to pre-tax earnings before special items	$135	$134	($1)
Pre-tax gain from special items	$0	$0	$0
GAAP 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 2011	4Q 2011	Change
Net sales	$211	$276	$65
Contribution to pre-tax earnings before special items	$10	$41	$31
Pre-tax gain from special items	$0	$0	$0
GAAP 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 2011	4Q 2011	Change
Charge to pre-tax earnings before special items
From continuing operations	($16)	($22)	($6)
From discontinued operations	($4)	$0	$4
Total 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 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. Additional information about us is available at http://www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Feb. 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 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 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, 253-924-2058

Exhibit 99.2 Weyerhaeuser Company Q4.2011 Analyst Package Preliminary results, subject to audit Consolidated Statement of Operations

in millions	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
	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 sold	1,177		1,343		1,283		1,317		1,222		5,120		4,831
Gross margin	245		267		286		298		294		1,096		1,123
Selling, general and administrative expenses	172		145		135		149		171		601		650
Research and development expenses	7		7		7		9		10		30		34
Charges for restructuring, closures and impairments	4		7		41		31		126		83		148
Other operating costs (income), net	(174)		(19)		3		(22)		(67)		(212)		(163)
Operating income	236		127		100		131		54		594		454
Interest income and other	11		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 taxes	154		19		29		55		(35)		257		82
Income taxes (1)	(56)		4		104		10		206		62		1,192
Earnings from continuing operations	98		23		133		65		171		319		1,274
Earnings (loss) from discontinued operations, net of income taxes	1		(13)		24		—		—		12		9
Net earnings	99		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
	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):
Basic	537,140		538,599		537,969		536.432		535,956		537,534		319,976
Diluted	540,476		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 millions	March 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 allowances	505		533		467		490		451
Inventories	544		513		468		476		478
Prepaid expenses	85		115		81		68		81
Deferred tax assets	155		167		106		81		113
Total current assets	2,748		2,205		2,091		2,065		2,589
Property and equipment, net	3,151		3,083		2,943		2,901		3,217
Construction in progress	149		137		122		145		123
Timber and timberlands at cost, less depletion charged	4,003		3,987		3,997		3,978		4,035
Investments in and advances to equity affiliates	192		191		194		192		194
Goodwill	40		40		40		40		40
Other assets	424		511		558		444		363
Restricted assets held by special purpose entities	914		915		914		916		915
	11,621		11,069		10,859		10,681		11,476
Real Estate:
Cash and cash equivalents	4		4		2		3		1
Receivables, less allowances	54		36		31		41		51
Real estate in process of development and for sale	515		535		549		555		517
Land being processed for development	978		988		989		936		974
Investments in and advances to equity affiliates	15		15		15		21		16
Deferred tax assets	266		263		260		240		266
Other assets	119		121		122		113		120
Consolidated assets not owned	8		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 payable	359		326		305		336		340
Accrued liabilities	686		712		672		593		734
Total current liabilities	1,045		1,038		988		941		1,074
Long-term debt	4,710		4,192		4,181		4,181		4,710
Deferred income taxes	485		533		440		93		366
Deferred pension and other postretirement benefits	908		835		797		1,467		930
Other liabilities	405		412		335		408		393
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities	771		774		773		776		772
	8,324		7,784		7,514		7,866		8,245
Real Estate:
Long-term debt	348		318		318		285		350
Other liabilities	196		193		196		172		212
Consolidated liabilities not owned	8		8		8		8		8
	552		519		522		465		570
Total liabilities	8,876		8,303		8,036		8,331		8,815
Equity:
Total Weyerhaeuser shareholders' interest	4,702		4,734		4,795		4,263		4,612
Noncontrolling interests	2		2		4		4		2
Total equity	4,704		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 millions	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

Cash flows from operations:
Net earnings	$	99	$	10	$	157	$	65	$	171	$	331	$	1,283
Noncash charges (credits) to income:
Depreciation, depletion and amortization	123		120		120		117		127		480		503
Deferred income taxes, net	39		(13)		(103)		51		(317)		(26)		(1,257)
Pension and other postretirement benefits	24		19		17		21		(2)		81		(21)
Share-based compensation expense	14		3		2		6		8		25		24
Charges for impairment of assets	1		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 taxes	1		—		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 operations	193		3		157		9		53		362		213
Repayments from pension trust	—		—		—		—		—		—		146
Other	5		(10)		(1)		7		(17)		1		(14)
Cash from investing activities	151		(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 options	34		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 period	1,467		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 Package Preliminary results, subject to audit					Total Company Statistics
Special Items Included in Net Earnings

in millions	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
	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
	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 millions	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
	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 expenses	16		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 segment	12		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 Segment Q4.2011 Analyst Package Preliminary results, subject to audit Segment Statement of Operations
in millions	Q1.2011		Q2.2011		Q3.2011		Q4.2011		YTD.2011		Q4.2010		YTD.2010
Trade sales and revenues (unaffiliated customers)	$	230	$	288	$	252	$	274	$	1,044	$	207	$	874
Intersegment sales	191		134		154		167		646		164		603
Total net sales and revenues	421		422		406		441		1,690		371		1,477
Cost of products sold	320		296		321		359		1,296		298		1,129
Gross margin	101		126		85		82		394		73		348
Selling, general and administrative expenses	23		24		23		21		91		22		85
Research and development expenses	4		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 income	240		111		61		69		481		55		279
Interest income and other	1		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.2010
Depreciation, 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.2010
Gain 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.2010
Third Party Net Sales and Revenue (millions)	Logs:
	West	$	110	$	152	$	144	$	139	$	545	$	97	$	414
	South	41		49		53		53		196		41		145
	Canada	7		1		4		5		17		5		17
	Total logs	158		202		201		197		758		143		576
	Pay as cut timber sales	8		8		9		9		34		8		33
	Timberlands exchanges and dispositions	21		39		2		15		77		20		109
	Higher and better use land sales	4		2		5		14		25		4		22
	Minerals, oil and gas	14		15		14		10		53		14		60
	Products from international operations	17		21		21		27		86		16		65
	Other products	8		1		—		2		11		2		9
	Total	$	230	$	288	$	252	$	274	$	1,044	$	207	$	874
Logs Third Party Sales Realizations (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
Logs Third Party Sales Volumes (cubic meters, thousands)	West	1,095		1,391		1,385		1,396		5,267		1,020		4,476
	South	1,005		1,211		1,336		1,327		4,879		993		3,357
	Canada	194		23		116		146		479		141		507
	International	72		79		88		75		314		74		283
	Total	2,366		2,704		2,925		2,944		10,939		2,228		8,623
Logs Fee Depletion (cubic meters, thousands)	West	1,611		1,747		1,604		1,633		6,595		1,290		5,569
	South	2,180		2,355		2,535		2,668		9,738		2,116		8,197
	International	98		221		270		265		854		79		349
	Total	3,889		4,323		4,409		4,566		17,187		3,485		14,115

Weyerhaeuser Company Q4.2011 Analyst Package Preliminary results, subject to audit			Wood Products Segment
Segment Statement of Operations
in millions	Q1.2011			Q2.2011		Q3.2011		Q4.2011		YTD.2011		Q4.2010		YTD.2010
Trade sales and revenues (unaffiliated customers)	$	526		$	605	$	603	$	542	$	2,276	$	487	$	2,224
Intersegment sales	20			21		20		19		80		16		63
Total net sales and revenues	546			626		623		561		2,356		503		2,287
Cost of products sold	536			629		620		576		2,361		527		2,289
Gross margin	10			(3)		3		(15)		(5)		(24)		(2)
Selling, general and administrative expenses	50			49		47		46		192		58		250
Research and development expenses	1			1		1		1		4		1		5
Charges for restructuring, closures and impairments	2			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 other	2			—		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.2010
Depreciation, 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.2010
Gain 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 Volumes	826		963		934		863		3,586		822		3,356
	Production Volumes	893		903		890		842		3,528		785		3,289
Engineered Solid Section (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 Volumes	3		4		4		3		14		3		15
	Production Volumes	4		3		4		2		13		3		15
Engineered I-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 Volumes	26		38		34		30		128		29		145
	Production Volumes	30		34		32		26		122		26		133
Oriented Strand Board (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 Volumes	445		498		549		516		2,008		408		1,607
	Production Volumes	494		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 Volumes	63		61		69		65		258		57		260
	Production Volumes	53		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 Volumes	69		73		20		—		162		61		269
	Production Volumes	58		62		15		—		135		51		231

Weyerhaeuser Company Q4.2011 Analyst Package Preliminary results, subject to audit					Cellulose Fibers Segment
Segment Statement of Operations

in millions	Q1.2011		Q2.2011			Q3.2011		Q4.2011		YTD.2011		Q4.2010		YTD.2010
Total net sales and revenues	$	506	$	526		$	503	$	523	$	2,058	$	511	$	1,911
Cost of products sold	400		422			349		370		1,541		356		1,424
Gross margin	106		104			154		153		517		155		487
Selling, general and administrative expenses	22		24			24		24		94		21		82
Research and development expenses	2		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 income	87		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.2010
Depreciation, 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 metric tons)	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
Liquid Packaging Board (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 Package Preliminary results, subject to audit							Real Estate Segment
Segment Statement of Operations

in millions			Q1.2011			Q2.2011				Q3.2011			Q4.2011			YTD.2011			Q4.2010			YTD.2010
Total net sales and revenues			$	160		$		191		$	211		$	276		$	838		$	305		$	923
Cost of products sold			126			147				164			191			628			228			696
Gross margin			34			44				47			85			210			77			227
Selling, general and administrative expenses			35			36				36			37			144			45			160
Charges for restructuring, closures and impairments			1			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 other			1			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.2010
Depreciation 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.2010
Charges 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.2010
Net sales and revenues:
Single-family housing			$	152		$		180		$	204		$	232		$	768		$	266		$	842
Land			7			11				5			44			67			25			64
Other			1			—				2			—			3			14			17
Total net sales and revenue			$	160		$		191		$	211		$	276		$	838		$	305		$	923
Single-family homes sold			535			521				440			406			1,902			385			1,914
Single-family homes closed			363			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 Package Preliminary 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 millions		Q1.2011		Q2.2011		Q3.2011		Q4.2011		YTD.2011			Q4.2010			YTD.2010
Trade 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 expenses		42		12		5		21		80			25			73
Charges for restructuring, closures and impairments		1		2		1		—		4			6			12
Other operating costs (income), net		2		1		16		2		21			(46)			(54)
Operating income (loss)		(51)		(19)		(25)		(30)		(125)			28			32
Interest income and other		8		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.2010
Depreciation, 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.2010
Gain 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