Weyerhaeuser Reports Fourth Quarter, Full Year Results

- Fourth quarter 2012 net earnings increased 22 percent compared with third quarter.

- Full year 2012 net sales rose 14 percent and net earnings before special items increased 78 percent.

- Total shareholder return for 2012 exceeded 50 percent.

News provided by

Jan 25, 2013, 03:05 ET

FEDERAL WAY, Wash., Jan. 25, 2013 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $143 million, or 26 cents per diluted share, for the fourth quarter. This compares with net earnings of $65 million, or 12 cents per diluted share, and net earnings before special items of $77 million, or 14 cents per diluted share, for the same period last year. Net sales for the fourth quarter of 2012 totaled $2.0 billion, compared with net sales of $1.6 billion for the fourth quarter of 2011.

(Logo: http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)

For the full year 2012, Weyerhaeuser reported net earnings of $385 million, or 71 cents per diluted share, on net sales of $7.1 billion. This compares with net earnings of $331 million, or 61 cents per diluted share, on net sales from continuing operations of $6.2 billion for the full year 2011.

"As I look forward to 2013, I am excited by the opportunity to build on the momentum of this past year," said Dan Fulton, president and chief executive officer. "In 2012, we began to realize the results of our work to position the company to capture the benefits of an improving housing market. As a result, our bottom line improved significantly, the Board increased the dividend, and our total shareholder return exceeded 50 percent, one of the best in our industry."

WEYERHAEUSER FINANCIAL HIGHLIGHTS	2012		2011
(millions, except per share data)	3Q	4Q	4Q
Net sales	$1,772	$2,000	$1,615
Net earnings	$117	$143	$65
Weighted average shares outstanding, diluted	542	547	538
Earnings per diluted share	$0.22	$0.26	$0.12
Net earnings before special items	$117	$143	$77
Earnings per diluted share before special items	$0.22	$0.26	$0.14
Net cash from operations	$122	$252	$147
Net change in cash and cash equivalents(1)	($253)	$290	($18)
Cash and cash equivalents at end of period(1)	$608	$898	$953

(1) Net change in cash and cash equivalents for the third quarter of 2012 includes $181 million for debt repayment and a $97 million payment on a note related to a timber monetization undertaken in 2002. Fourth quarter of 2012 includes $110 million received upon maturity of financial investments related to that timber monetization.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	3Q 2012	4Q 2012	Change
Net sales	$267	$298	$31
Contribution to pre-tax earnings	$80	$95	$15

4Q 2012 Performance - Earnings increased compared with the third quarter due to improved selling prices and stronger market demand for export and domestic logs. Fee harvest volumes increased in both the West and the South. Earnings from disposition of non-strategic timberlands decreased $5 million.

1Q 2013 Outlook - Excluding dispositions of non-strategic timberlands, Weyerhaeuser expects earnings from the segment to be comparable to the fourth quarter. The company anticipates improved selling prices for Western domestic and export logs, offset by a seasonal decline in Southern fee harvest volumes. Earnings from dispositions of non-strategic timberlands are expected to decrease.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)	3Q 2012	4Q 2012	Change
Net sales	$816	$832	$16
Contribution to pre-tax earnings	$59	$38	($21)

4Q 2012 Performance - Stronger than expected market conditions for oriented strand board and lumber resulted in higher average selling prices and sales volumes for those products. However, all product lines experienced higher raw material costs. Engineered wood products operating rates decreased due to maintenance and seasonally weaker market conditions.

1Q 2013 Outlook - Weyerhaeuser anticipates significantly higher earnings from the Wood Products segment in the first quarter. The company expects increased average sales realizations for lumber and oriented strand board and seasonally higher sales volumes across all product lines. Unit manufacturing costs are expected to decline due to improved operating rates, partially offset by higher raw material costs.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)	3Q 2012	4Q 2012	Change
Net sales	$459	$463	$4
Contribution to pre-tax earnings	$78	$61	($17)

4Q 2012 Performance - Average sales realizations for pulp declined, and chemical and energy costs increased. Sales realizations and volumes for liquid packaging board decreased due to operational issues that are now resolved. These factors were partially offset by lower maintenance costs and improved pulp mill productivity due to fewer days of scheduled annual maintenance outages.

1Q 2013 Outlook - Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates increased maintenance expenses, partially offset by slightly higher average selling prices for pulp.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)	3Q 2012	4Q 2012	Change
Net sales	$230	$407	$177
Contribution to pre-tax earnings	$17	$81	$64

4Q 2012 Performance - Fourth quarter included earnings of $16 million from single-family homebuilding and $65 million from land sales, compared with $17 million from single-family homebuilding in the third quarter. Home closings increased seasonally to 842 single-family homes. Average margins on homes closed declined to 20 percent due to mix, and selling costs increased due to the additional closing volume.

At the end of the fourth quarter the backlog of homes sold, but not closed, totaled 774 units, compared with 429 units one year ago.

1Q 2013 Outlook - Weyerhaeuser anticipates a slight profit from single-family homebuilding in the first quarter. Home closings should decline seasonally to approximately 500 homes, with margins comparable to fourth quarter. Selling expenses are expected to decrease due to lower closing volumes.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 6 million acres of timberlands, primarily in the U.S., and manage another 14 million acres under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2012, we generated $7.1 billion in sales and employed approximately 13,200 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our stock trades on the New York Stock exchange under the symbol WY. More information about us is available at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Jan. 25 to discuss fourth quarter results.

To access the conference call from within North America, dial 877-296-9413 (access code – 86484844) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86484844). Replays will be available for one week at 855-859-2056 (access code – 86484844) from within North America and at 404-537-3406 (access code – 86484844) 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 2012 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 www.fulldisclosure.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected site, StreetEvents (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 during the first quarter of 2013, including improved selling prices for Western domestic and export logs, a seasonal decline in Southern fee harvest volumes, decreased earnings from dispositions of non-strategic timberlands, and comparable earnings from the Timberlands segment excluding disposition of non-strategic timberlands; increased average sales realizations for lumber and oriented strand board, seasonally higher sales volumes across all product lines, improved operating rates, higher raw material costs, and significantly higher earnings from the Wood Products segment; increased maintenance expenses, slightly higher average selling prices for pulp, and lower earnings from the Cellulose Fibers segment; and seasonally lower home closings, comparable margins, decreased selling expenses due to lower closing volumes, and a slight profit from single-family homebuilding 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 U.S. and international economic conditions;
performance of the company's manufacturing operations, including maintenance requirements;
the level of competition from domestic and foreign producers;
raw material prices;
the effect of weather;
the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
energy prices;
the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
transportation costs;
federal tax policies;
the effect of forestry, land use, environmental and other governmental regulations;
legal proceedings;
performance of pension fund investments and related derivatives;
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; 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 and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

Weyerhaeuser Company						Exhibit 99.2
Q4.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Net sales and revenues	$ 1,494	$ 1,793	$ 1,772	$ 2,000	$ 1,615	$ 7,059	$ 6,216
Cost of products sold	1,290	1,516	1,424	1,580	1,317	5,810	5,120
Gross margin	204	277	348	420	298	1,249	1,096
Selling expenses	42	47	49	56	45	194	178
General and administrative expenses	108	95	107	126	104	436	423
Research and development expenses	7	8	8	9	9	32	30
Charges for restructuring, closures and impairments	12	4	10	6	31	32	83
Other operating income, net	(66)	(53)	(28)	(33)	(22)	(180)	(212)
Operating income	101	176	202	256	131	735	594
Interest income and other	12	11	15	14	12	52	47
Interest expense, net of capitalized interest	(87)	(86)	(87)	(88)	(88)	(348)	(384)
Earnings from continuing operations before income taxes	26	101	130	182	55	439	257
Income taxes	15	(17)	(13)	(40)	10	(55)	62
Earnings from continuing operations	41	84	117	142	65	384	319
Earnings from discontinued operations, net of income taxes	—	—	—	—	—	—	12
Net earnings	41	84	117	142	65	384	331
Add: net loss attributable to noncontrolling interests	—	—	—	1	—	1	—
Net earnings attributable to Weyerhaeuser common shareholders	$ 41	$ 84	$ 117	$ 143	$ 65	$ 385	$ 331

Per Share Information

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations	$ 0.08	$ 0.16	$ 0.22	$ 0.26	$ 0.12	$ 0.71	$ 0.60
Discontinued operations	—	—	—	—	—	—	0.02
Net earnings per share	$ 0.08	$ 0.16	$ 0.22	$ 0.26	$ 0.12	$ 0.71	$ 0.62
Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations	$ 0.08	$ 0.16	$ 0.22	$ 0.26	$ 0.12	$ 0.71	$ 0.59
Discontinued operations	—	—	—	—	—	—	0.02
Net earnings per share	$ 0.08	$ 0.16	$ 0.22	$ 0.26	$ 0.12	$ 0.71	$ 0.61
Dividends paid per share	$ 0.15	$ 0.15	$ 0.15	$ 0.17	$ 0.15	$ 0.62	$ 0.60
Weighted average shares outstanding (in thousands):
Basic	537,368	537,966	539,094	542,101	536,432	539,140	537,534
Diluted	539,728	540,033	542,311	547,137	538,119	542,310	539,879
Common shares outstanding at end of period (in thousands)	537,409	537,526	540,672	542,393	536,425	542,393	536,425

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

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Operating income	$ 101	$ 176	$ 202	$ 256	$ 131	$ 735	$ 594
Depreciation, depletion and amortization	113	113	112	118	117	456	476
Non-operating pension and postretirement costs	7	7	7	8	5	29	26
Special items	(38)	(57)	—	—	19	(95)	(100)
Capitalized interest included in cost of products sold	3	19	6	9	12	37	29
Adjusted EBITDA, excluding special items*	$ 186	$ 258	$ 327	$ 391	$ 284	$ 1,162	$ 1,025
* Non-GAAP measure



Weyerhaeuser Company
Q4.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet

in millions	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011

ASSETS
Forest Products:
Current assets:
Cash and cash equivalents	$ 726	$ 857	$ 602	$ 893	$ 950
Receivables, less allowances	479	488	504	468	468
Receivables for taxes	24	6	97	95	22
Inventories	517	487	512	531	476
Prepaid expenses	80	86	83	83	68
Deferred tax assets	113	100	117	65	81
Total current assets	1,939	2,024	1,915	2,135	2,065
Property and equipment, net	2,829	2,770	2,759	2,859	2,901
Construction in progress	192	208	220	50	145
Timber and timberlands at cost, less depletion charged to disposals	3,970	3,963	3,967	3,961	3,978
Investments in and advances to equity affiliates	189	187	188	192	192
Goodwill	40	40	40	40	40
Deferred tax assets	50	48	56	189	36
Other assets	442	435	352	358	444
Assets held by variable interest entities	914	916	914	805	916
	10,565	10,591	10,411	10,589	10,717
Real Estate:
Cash and cash equivalents	2	4	6	5	3
Receivables, less allowances	30	38	36	72	41
Real estate in process of development and for sale	606	581	602	658	555
Land being processed for development	943	959	982	904	936
Investments in and advances to equity affiliates	19	20	20	21	21
Deferred tax assets	246	238	233	202	240
Other assets	113	89	98	94	113
Assets held by variable interest entities	—	3	6	47	8
	1,959	1,932	1,983	2,003	1,917
Total assets	$ 12,524	$ 12,523	$ 12,394	$ 12,592	$ 12,634

LIABILITIES AND EQUITY
Forest Products:
Current liabilities:
Current maturities of long-term debt	$ 167	$ 184	$ 340	$ 340	$ 12
Accounts payable	343	360	356	329	336
Accrued liabilities	536	576	558	561	593
Total current liabilities	1,046	1,120	1,254	1,230	941
Long-term debt	4,026	4,005	3,842	3,842	4,181
Deferred income taxes	158	140	124	—	129
Deferred pension and other postretirement benefits	1,470	1,429	1,378	1,936	1,467
Other liabilities	407	400	477	493	408
Liabilities (nonrecourse to the company) held by variable interest entities	775	778	680	681	776
	7,882	7,872	7,755	8,182	7,902
Real Estate:
Long-term debt	283	283	109	109	285
Other liabilities	154	171	177	187	172
Liabilities (nonrecourse to the company) held by variable interest entities	—	—	—	1	8
	437	454	286	297	465
Total liabilities	8,319	8,326	8,041	8,479	8,367
Equity:
Total Weyerhaeuser shareholders' interest	4,197	4,186	4,340	4,070	4,263
Noncontrolling interests	8	11	13	43	4
Total equity	4,205	4,197	4,353	4,113	4,267
Total liabilities and equity	$ 12,524	$ 12,523	$ 12,394	$ 12,592	$ 12,634



Weyerhaeuser Company
Q4.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Cash flows from operations:
Net earnings	$ 41	$ 84	$ 117	$ 142	$ 65	$ 384	$ 331
Noncash charges (credits) to income:
Depreciation, depletion and amortization	113	113	112	118	117	456	480
Deferred income taxes, net	(6)	13	15	40	51	62	(26)
Pension and other postretirement benefits	(28)	(30)	19	20	21	(19)	81
Share-based compensation expense	10	8	10	9	6	37	25
Charges for impairment of assets	8	4	7	5	19	24	56
Net gains on dispositions of assets	(7)	(10)	(22)	(30)	(9)	(69)	(236)
Foreign exchange transaction (gains) losses	(7)	9	(10)	2	(5)	(6)	6
Change in:
Receivables less allowances	(5)	(18)	(10)	—	(19)	(33)	(53)
Receivable for taxes	(2)	18	(1)	2	(18)	17	(37)
Inventories	(40)	28	(22)	(20)	(6)	(54)	(46)
Real estate and land	(55)	7	(47)	20	37	(75)	(12)
Prepaid expenses	(8)	(12)	2	2	17	(16)	3
Accounts payable and accrued liabilities	(56)	65	1	(5)	(59)	5	(133)
Deposits on land positions and other assets	—	22	(11)	(7)	5	4	(4)
Pension and postretirement contributions	(35)	(33)	(41)	(36)	(79)	(145)	(143)
Other	17	(1)	3	(10)	4	9	(1)
Net cash from operations	(60)	267	122	252	147	581	291

Cash flows from investing activities:
Property and equipment	(54)	(68)	(75)	(59)	(76)	(256)	(212)
Timberlands reforestation	(10)	(7)	(5)	(7)	(6)	(29)	(29)
Proceeds from sale of assets	6	18	12	44	9	80	362
Proceeds of investments (payments of liabilities) held by special purpose entities	—	—	(97)	110	—	13	—
Other	1	(1)	(1)	1	7	—	1
Cash from investing activities	(57)	(58)	(166)	89	(66)	(192)	122

Cash flows from financing activities:
Cash dividends	(81)	(80)	(81)	(92)	(81)	(334)	(323)
Change in book overdrafts	(29)	9	(12)	—	28	(32)	2
Payments on debt	(2)	(4)	(181)	—	(33)	(187)	(583)
Exercises of stock options	5	2	66	39	1	112	38
Repurchase of common stock	—	—	—	—	(13)	—	(37)
Other	(1)	(3)	(1)	2	(1)	(3)	(24)
Cash from financing activities	(108)	(76)	(209)	(51)	(99)	(444)	(927)

Net change in cash and cash equivalents	(225)	133	(253)	290	(18)	(55)	(514)
Cash and cash equivalents at beginning of period	953	728	861	608	971	953	1,467
Cash and cash equivalents at end of period	$ 728	$ 861	$ 608	$ 898	$ 953	$ 898	$ 953
Cash paid (received) during the year for:
Interest, net of amount capitalized	$ 116	$ 57	$ 117	$ 51	$ 58	$ 341	$ 420
Income taxes	$ (10)	$ (5)	$ 1	$ 1	$ 7	$ (13)	$ 28



Weyerhaeuser Company					Total Company Statistics
Q4.2012 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Net earnings	$ 41	$ 84	$ 117	$ 143	$ 65	$ 385	$ 331
Income tax adjustments	—	—	—	—	—	—	(83)
Gain on sale of 82,000 acres of non-strategic timberlands	—	—	—	—	—	—	(96)
Loss on early extinguishment of debt	—	—	—	—	—	—	16
Restructuring, impairments and other charges	10	—	—	—	12	10	36
Gain on postretirement plan amendment	(34)	(33)	—	—	—	(67)	—
Gain on sale of properties	—	(4)	—	—	—	(4)	(9)
Tax settlements	(8)	—	—	—	—	(8)	—
Charges related to the sale of hardwoods	—	—	—	—	—	—	14
Gain on sale of Westwood Shipping Lines	—	—	—	—	—	—	(31)
Net earnings before special items	$ 9	$ 47	$ 117	$ 143	$ 77	$ 316	$ 178

	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Net earnings per diluted share	$ 0.08	$ 0.16	$ 0.22	$ 0.26	$ 0.12	$ 0.71	$ 0.61
Income tax adjustments	—	—	—	—	—	—	(0.15)
Gain on sale of 82,000 acres of non-strategic timberlands	—	—	—	—	—	—	(0.18)
Loss on early extinguishment of debt	—	—	—	—	—	—	0.03
Restructuring, impairments and other charges	0.02	—	—	—	0.02	0.02	0.07
Gain on postretirement plan amendment	(0.06)	(0.06)	—	—	—	(0.12)	—
Gain on sale of properties	—	(0.01)	—	—	—	(0.01)	(0.02)
Tax settlements	(0.02)	—	—	—	—	(0.02)	—
Charges related to the sale of hardwoods	—	—	—	—	—	—	0.03
Gain on sale of Westwood Shipping Lines	—	—	—	—	—	—	(0.06)
Net earnings before special items per diluted share	$ 0.02	$ 0.09	$ 0.22	$ 0.26	$ 0.14	$ 0.58	$ 0.33

Selected Total Company Items, Excluding Discontinued Operations

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2012	Jun 30, 2012	Sep 30, 2012	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011

Depreciation, depletion and amortization:
Cost of products sold	$ 102	$ 103	$ 102	$ 109	$ 104	$ 416	$ 422
Selling, general and administrative expenses	11	10	10	9	13	40	54
Total depreciation, depletion and amortization	$ 113	$ 113	$ 112	$ 118	$ 117	$ 456	$ 476

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 13	$ 14	$ 12	$ 12	$ 12	$ 51	$ 46
Pension and postretirement costs not allocated	7	7	7	8	5	29	26
Total company pension and postretirement costs	$ 20	$ 21	$ 19	$ 20	$ 17	$ 80	$ 72

Total decrease (increase) in Forest Products working capital ⁽¹⁾	$ (148)	$ 103	$ (29)	$ (85)	$ (41)	$ (159)	$ (211)
Cash spent for capital expenditures	$ (64)	$ (75)	$ (80)	$ (66)	$ (82)	$ (285)	$ (238)
⁽¹⁾Working capital does not include cash balances.



Weyerhaeuser Company					Timberlands Segment
Q4.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Sales to and revenues from unaffiliated customers		$ 250	$ 262	$ 267	$ 298	$ 274	$ 1,077	$ 1,044
Intersegment sales		190	146	162	185	167	683	646
Total net sales and revenues		440	408	429	483	441	1,760	1,690
Cost of products sold		353	313	336	374	358	1,376	1,290
Gross margin		87	95	93	109	83	384	400
Selling expenses		2	2	3	2	3	9	10
General and administrative expenses		23	21	21	20	18	85	81
Research and development expenses		4	5	4	6	6	19	18
Restructuring, closures and impairments		—	—	—	2	—	2	—
Other operating income, net		(11)	(10)	(14)	(14)	(14)	(49)	(196)
Operating income		69	77	79	93	70	318	487
Interest income and other		1	—	1	1	1	3	4
Loss attributable to noncontrolling interest		—	—	—	1	—	1	—
Net contribution to earnings†		$ 70	$ 77	$ 80	$ 95	$ 71	$ 322	$ 491

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

in millions		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Operating income		$ 69	$ 77	$ 79	$ 93	$ 70	$ 318	$ 487
Depreciation, depletion and amortization		35	34	35	38	35	142	137
Special items		—	—	—	—	—	—	(152)
Adjusted EBITDA, excluding special items*		$ 104	$ 111	$ 114	$ 131	$ 105	$ 460	$ 472
* Non-GAAP measure

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

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Gain on sale of 82,000 acres of non-strategic timberlands		$ —	$ —	$ —	$ —	$ —	$ —	$ 152

Selected Segment Items

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Total decrease (increase) in working capital ⁽¹⁾		$ (9)	$ 6	$ 19	$ (37)	$ (6)	$ (21)	$ (26)
Cash spent for capital expenditures		$ (12)	$ (15)	$ (17)	$ (16)	$ (13)	$ (60)	$ (53)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Third Party Net Sales and Revenue (millions)	Logs:
	West	$ 130	$ 146	$ 132	$ 151	$ 139	$ 559	$ 545
	South	50	56	60	67	53	233	196
	Canada	7	2	5	5	5	19	17
	Total Logs	187	204	197	223	197	811	758
	Pay as cut timber sales	11	9	8	9	9	37	34
	Timberlands exchanges	8	7	24	20	15	59	77
	Higher and better use land sales	4	5	4	9	14	22	25
	Minerals, oil and gas	7	7	8	9	10	31	53
	Products from international operations	25	29	26	26	27	106	86
	Other products	8	1	—	2	2	11	11
	Total	$ 250	$ 262	$ 267	$ 298	$ 274	$ 1,077	$ 1,044
Logs Third Party Sales Realizations (per cubic meter)	West	$ 99.10	$ 94.47	$ 89.28	$ 96.46	$ 99.71	$ 94.72	$ 103.57
	South	$ 40.48	$ 41.15	$ 42.04	$ 43.30	$ 39.82	$ 41.83	$ 40.10
	Canada	$ 36.35	$ 34.66	$ 35.23	$ 38.70	$ 34.04	$ 36.51	$ 34.65
	International	$ 22.97	$ 23.53	$ 23.76	$ 24.30	$ 17.03	$ 23.66	$ 28.11
Logs Third Party Sales Volumes (cubic meters, thousands)	West	1,308	1,551	1,480.	1,559	1,396	5,898	5,267
	South	1,228	1,354	1,430.	1,563	1,327	5,575	4,879
	Canada	205	54	133.	139	146	531	479
	International	78	82	99.	84	75	343	314
	Total	2,819	3,041	3,142	3,345	2,944	12,347	10,939
Logs Fee Harvest Volumes (cubic meters, thousands)	West	1,679	1,831	1,784.	1,876	1,633	7,170	6,595
	South	2,714	2,788	2,809.	3,177	2,668	11,488	9,738
	International	172	161	198.	232	265	763	854
	Total	4,565	4,780	4,791	5,285	4,566	19,421	17,187



Weyerhaeuser Company					Wood Products Segment
Q4.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Sales to and revenues from unaffiliated customers		$ 634	$ 776	$ 816	$ 832	$ 542	$ 3,058	$ 2,276
Intersegment sales		20	20	18	16	19	74	80
Total net sales and revenues		654	796	834	848	561	3,132	2,356
Cost of products sold		611	708	713	748	573	2,780	2,359
Gross margin		43	88	121	100	(12)	352	(3)
Selling expenses		21	21	23	24	19	89	79
General and administrative expenses		29	29	31	34	27	123	113
Research and development expenses		1	1	2	1	1	5	4
Charges for restructuring, closures and impairments		1	2	2	1	20	6	64
Other operating costs (income), net		5	(1)	4	2	(2)	10	(17)
Operating income (loss)		(14)	36	59	38	(77)	119	(246)
Interest income and other		1	—	—	—	—	1	3
Net contribution to earnings from continuing operations		(13)	36	59	38	(77)	120	(243)
Net contribution to earnings from discontinued hardwoods operations		—	—	—	—	—	—	(25)
Net contribution to earnings†		$ (13)	$ 36	$ 59	$ 38	$ (77)	$ 120	$ (268)

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

in millions		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Operating income (loss)		$ (14)	$ 36	$ 59	$ 38	$ (77)	$ 119	$ (246)
Depreciation, depletion and amortization		34	33	33	33	35	133	151
Special items		—	(6)	—	—	19	(6)	52
Adjusted EBITDA, excluding special items*		$ 20	$ 63	$ 92	$ 71	$ (23)	$ 246	$ (43)
* Non-GAAP measure

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

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Gain on sale of property		$ —	$ 6	$ —	$ —	$ —	$ 6	$ 5
Charges for restructuring and impairments		—	—	—	—	(19)	—	(57)
Total special items from continuing operations		—	6	—	—	(19)	6	(52)
Charges related to sale of discontinued hardwoods operations		—	—	—	—	—	—	(22)
Total		$ —	$ 6	$ —	$ —	$ (19)	$ 6	$ (74)

Selected Segment Items

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Total decrease (increase) in working capital ⁽¹⁾		$ (112)	$ 5	$ (21)	$ 9	$ 18	$ (119)	$ (23)
Cash spent for capital expenditures		$ (6)	$ (15)	$ (16)	$ (19)	$ (14)	$ (56)	$ (35)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Structural Lumber (board feet)	Third Party Net Sales and Revenue	$ 291	$ 370	$ 363	$ 376	$ 256	$ 1,400	$ 1,087
	Third Party Sales Realizations	$ 311	$ 350	$ 359	$ 366	$ 296	$ 347	$ 303
	Third Party Sales Volumes	937	1,056	1,013	1,025	863	4,031	3,586
	Production Volumes	958	1,004	945	939	842	3,846	3,528
Engineered Solid Section (cubic feet)	Third Party Net Sales and Revenue	$ 65	$ 70	$ 76	$ 68	$ 55	$ 279	$ 235
	Third Party Sales Realizations	$ 1,830	$ 1,789	$ 1,800	$ 1,817	$ 1,783	$ 1,808	$ 1,920
	Third Party Sales Volumes	3.6	3.9	4.2	3.7	3.1	15.4	12.3
	Production Volumes	3.7	3.8	4.3	3.6	2.7	15.4	13.4
Engineered I-joists (lineal feet)	Third Party Net Sales and Revenue	$ 41	$ 49	$ 53	$ 47	$ 37	$ 190	$ 161
	Third Party Sales Realizations	$ 1,285	$ 1,211	$ 1,248	$ 1,265	$ 1,258	$ 1,250	$ 1,264
	Third Party Sales Volumes	32	40	43	37	30	152	128
	Production Volumes	34	37	39	37	26	147	122
Oriented Strand Board (square feet 3/8')	Third Party Net Sales and Revenue	$ 111	$ 138	$ 169	$ 194	$ 90	$ 612	$ 354
	Third Party Sales Realizations	$ 197	$ 214	$ 268	$ 290	$ 173	$ 244	$ 179
	Third Party Sales Volumes	565	643	630	670	516	2,508	1,977
	Production Volumes	601	626	642	642	541	2,511	2,127
Softwood Plywood (square feet 3/8')	Third Party Net Sales and Revenue	$ 23	$ 26	$ 34	$ 32	$ 18	$ 115	$ 66
	Third Party Sales Realizations	$ 309	$ 332	$ 356	$ 347	$ 274	$ 338	$ 264
	Third Party Sales Volumes	73	81	95	91	65	340	249
	Production Volumes	51	50	54	59	47	214	197



Weyerhaeuser Company					Cellulose Fibers Segment
Q4.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Total net sales and revenues		$ 473	$ 459	$ 459	$ 463	$ 523	$ 1,854	$ 2,058
Cost of products sold		407	404	364	385	368	1,560	1,524
Gross margin		66	55	95	78	155	294	534
Selling expenses		4	5	4	5	5	18	18
General and administrative expenses		20	17	19	18	19	74	76
Research and development expenses		2	2	2	2	2	8	8
Charges for restructuring, closures and impairments		—	—	—	—	1	—	1
Other operating income, net		(9)	(4)	(5)	(6)	(7)	(24)	(19)
Operating income		49	35	75	59	135	218	450
Interest income and other		(1)	1	3	2	1	5	2
Net contribution to earnings†		$ 48	$ 36	$ 78	$ 61	$ 136	$ 223	$ 452

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

in millions		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Operating income		$ 49	$ 35	$ 75	$ 59	$ 135	$ 218	$ 450
Depreciation, depletion and amortization		37	36	37	40	37	150	147
Adjusted EBITDA, excluding special items*		$ 86	$ 71	$ 112	$ 99	$ 172	$ 368	$ 597
* Non-GAAP measure

Selected Segment Items

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Total decrease (increase) in working capital ⁽¹⁾		$ 45	$ 24	$ (20)	$ (30)	$ (28)	$ 19	$ (65)
Cash spent for capital expenditures		$ (45)	$ (44)	$ (45)	$ (26)	$ (54)	$ (160)	$ (146)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Pulp (air-dry metric tons)	Third Party Net Sales and Revenue (millions)	$ 367	$ 348	$ 354	$ 364	$ 419	$ 1,433	$ 1,617
	Third Party Sales Realizations	$ 818	$ 819	$ 818	$ 799	$ 895	$ 813	$ 921
	Third Party Sales Volumes (thousands)	449	425	432	456	468	1,762	1,756
	Production Volumes (thousands)	438	417	453	465	460	1,773	1,769
Liquid Packaging Board (tons)	Third Party Net Sales and Revenue (millions)	$ 83	$ 90	$ 84	$ 75	$ 81	$ 332	$ 346
	Third Party Sales Realizations	$ 1,181	$ 1,176	$ 1,155	$ 1,085	$ 1,151	$ 1,150	$ 1,165
	Third Party Sales Volumes (thousands)	70	76	74	69	70	289	297
	Production Volumes (thousands)	65	78	77	72	79	292	307



Weyerhaeuser Company					Real Estate Segment
Q4.2012 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Total net sales and revenues	$ 137	$ 296	$ 230	$ 407	$ 276	$ 1,070	$ 838
Cost of products sold	113	248	175	276	191	812	628
Gross margin	24	48	55	131	85	258	210
Selling expenses	15	19	19	25	18	78	71
General and administrative expenses	17	15	17	27	19	76	73
Charges for restructuring, closures and impairments	1	1	3	1	10	6	14
Other operating income, net	—	(1)	—	(1)	(1)	(2)	(1)
Operating income (loss)	(9)	14	16	79	39	100	53
Interest income and other	1	1	1	2	2	5	5
Net contribution to earnings	$ (8)	$ 15	$ 17	$ 81	$ 41	$ 105	$ 58

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

in millions	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Operating income (loss)	$ (9)	$ 14	$ 16	$ 79	$ 39	$ 100	$ 53
Depreciation, depletion and amortization	2	3	3	4	4	12	13
Capitalized interest included in cost of products sold	3	14	5	8	10	30	23
Adjusted EBITDA, excluding special items*	$ (4)	$ 31	$ 24	$ 91	$ 53	$ 142	$ 89
* Non-GAAP measure

Selected Segment Items

	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Cash from operations	$ (32)	$ 43	$ (24)	$ 77	$ 43	$ 64	$ 18
Cash spent for capital expenditures	$ (1)	$ —	$ (1)	$ (2)	$ (1)	$ (4)	$ (3)

Segment Statistics

	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Net sales and revenues:
Single-family housing	$ 131	$ 190	$ 229	$ 320	$ 232	$ 870	$ 768
Land	3	105	1	84	44	193	67
Other	3	1	—	3	—	7	3
Total net sales and revenue	$ 137	$ 296	$ 230	$ 407	$ 276	$ 1,070	$ 838
Single-family homes sold	697	764	637	561	406	2,659	1,902
Single-family homes closed	349	508	615	842	582	2,314	1,912
Single-family homes sold but not closed (backlog)	777	1,033	1,055	774	429	774	429
Single-family cancellation rate	10.1 %	15.4 %	18.3 %	15.9 %	18.1 %	14.9 %	15.7 %
Single-family buyer traffic	14,272	17,677	17,894	14,567	10,533	64,410	50,125
Single-family average price of homes closed (in thousands)	$ 376	$ 374	$ 372	$ 381	$ 398	$ 376	$ 402
Single-family home gross margin - excluding impairments ⁽¹⁾	17.3 %	19.5 %	24.3 %	20.2 %	25.4 %	20.7 %	23.3 %

⁽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
Q4.2012 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; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve.

Contribution to Earnings

in millions	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Unallocated corporate function expenses	$ (6)	$ (3)	$ (5)	$ (8)	$ (8)	$ (22)	$ (44)
Unallocated share-based compensation	(5)	(1)	(7)	(3)	(6)	(16)	(5)
Unallocated pension & postretirement costs	(7)	(7)	(7)	(8)	(5)	(29)	(26)
Foreign exchange gains (losses)	6	(8)	11	(2)	4	7	(5)
Elimination of intersegment profit in inventory and LIFO †	(12)	(2)	(10)	8	(6)	(16)	(25)
Other	30	35	(9)	—	(15)	56	(45)
Operating income (loss)	6	14	(27)	(13)	(36)	(20)	(150)
Interest income and other	10	9	10	9	8	38	33
Net contribution to earnings from continuing operations	16	23	(17)	(4)	(28)	18	(117)
Net contribution to earnings from discontinued operations	—	—	—	—	—	—	45
Net contribution to earnings	$ 16	$ 23	$ (17)	$ (4)	$ (28)	$ 18	$ (72)

†We now report the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of business operating results. Prior period results have been adjusted to reflect the change.


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

in millions	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Operating income (loss)	$ 6	$ 14	$ (27)	$ (13)	$ (36)	$ (20)	$ (150)
Depreciation, depletion and amortization	5	7	4	3	6	19	28
Non-operating pension and postretirement costs	7	7	7	8	5	29	26
Special items	(38)	(51)	—	—	—	(89)	—
Capitalized interest included in cost of products sold	—	5	1	1	2	7	6
Adjusted EBITDA, excluding special items*	$ (20)	$ (18)	$ (15)	$ (1)	$ (23)	$ (54)	$ (90)
* Non-GAAP measure - see below for definition.

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

	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Gain on postretirement plan amendment	$ 52	$ 51	$ —	$ —	$ —	$ 103	$ —
Restructuring, impairments and other charges	(14)	—	—	—	—	(14)	—
Total special items from continuing operations	38	51	—	—	—	89	—
Gain on sale of property	—	—	—	—	—	—	9
Gain on sale of Westwood Shipping Lines	—	—	—	—	—	—	49
Total	$ 38	$ 51	$ —	$ —	$ —	$ 89	$ 58


Unallocated Selected Items

	Q1.2012	Q2.2012	Q3.2012	Q4.2012	Q4.2011	YTD.2012	YTD.2011
Total decrease (increase) in working capital ⁽¹⁾	$ (72)	$ 68	$ (7)	$ (27)	$ (25)	$ (38)	$ (97)
Cash spent for capital expenditures	$ —	$ (1)	$ (1)	$ (3)	$ —	$ (5)	$ (1)

⁽¹⁾Working capital does not include cash balances.

*Adjusted EBITDA, excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and interest included in cost of products sold. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.