Weyerhaeuser Reports Fourth Quarter, Full Year Results

- 31 percent increase in fourth quarter earnings from continuing operations before special items compared with prior year

- 2014 included divestiture of homebuilding business, 32 percent increase in common dividend, and repurchase of over $200 million of common shares

News provided by

Weyerhaeuser Company

Jan 30, 2015, 03:05 ET

FEDERAL WAY, Wash., Jan. 30, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings attributable to common shareholders of $166 million, or 31 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $43 million, or 7 cents per diluted share, on net sales of $1.8 billion from continuing operations for the same period last year.

Earnings for the fourth quarter of 2014 include net after-tax gains of $21 million from special items. Excluding these items, the company reported net earnings of $145 million, or 27 cents per diluted share. This compares with net earnings from continuing operations before special items of $111 million, or 19 cents per diluted share for the same period last year.

For the full year 2014, Weyerhaeuser reported net earnings attributable to common shareholders of $1.8 billion, or $3.18 per diluted share, on net sales from continuing operations of $7.4 billion. This compares with net earnings of $540 million, or 95 cents per diluted share, on net sales from continuing operations of $7.3 billion for the same period last year.

Full year 2014 includes after-tax earnings of $998 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $84 million from special items. Excluding these items, the company reported net earnings of $700 million, or $1.25 per diluted share. This compares with net earnings from continuing operations before special items of $572 million, or 99 cents per diluted share, for the full year 2013.

"In 2014, we demonstrated our commitment to driving shareholder value," said Doyle Simons, president and chief executive officer. "During the year, we divested our homebuilding business to become a focused forest products company, achieved our 2014 operational excellence targets and made significant progress on our multi-year initiatives, and improved earnings from continuing operations by more than 20 percent compared with 2013. In addition, we increased our dividend by 32 percent and completed nearly 30 percent of a newly authorized $700 million share repurchase program. For 2015, we remain relentlessly focused on driving operational excellence to fully capitalize on our improving markets and delivering value to our shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS	3Q	4Q	4Q	Full Year
(millions, except per share data)	2014	2014	2013	2014	2013
Net sales from continuing operations	$1,915	$1,788	$1,768	$7,403	$7,254
Net earnings attributable to common shareholders⁽¹⁾	$1,153	$166	$43	$1,782	$540
Weighted average shares outstanding, diluted⁽²⁾	536	529	589	561	571
Earnings per diluted share	$2.15	$0.31	$0.07	$3.18	$0.95
Earnings per diluted share from continuing operations	$0.35	$0.31	$0.01	$1.40	$0.82
Net earnings from continuing operations before special items⁽³⁾	$178	$145	$111	$700	$572
Earnings per diluted share from continuing operations before special items	$0.33	$0.27	$0.19	$1.25	$0.99
Net change in cash and cash equivalents⁽⁴⁾	$775	($40)	($68)	$750	($63)
Cash and cash equivalents at end of period⁽⁴⁾	$1,620	$1,580	$830	$1,580	$830

⁽¹⁾ Includes net earnings from discontinued operations.
⁽²⁾ Weyerhaeuser's weighted average common shares outstanding decreased during the third quarter of 2014 due to retirement of approximately 59 million shares tendered under the exchange offer associated with the divestiture of Weyerhaeuser Real Estate Company. During the third and fourth quarters of 2014, Weyerhaeuser repurchased approximately 6 million common shares. At the end of the fourth quarter the company had approximately 524 million common shares outstanding.
⁽³⁾ Special items for 2014 include gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative. Special Items for 2013 are primarily related to restructuring, impairments and other charges, partially offset by tax adjustments.
⁽⁴⁾ Net change in cash and equivalents, and cash and cash equivalents at the end of the period exclude discontinued operations for all time periods presented. Third quarter 2014 includes $707 million related to the divestiture of Weyerhaeuser Real Estate Company.

TIMBERLANDS
FINANCIAL HIGHLIGHTS (millions)	3Q 2014	4Q 2014	Change
Net sales to unaffiliated customers	$364	$359	($5)
Contribution to pre-tax earnings	$136	$143	$7

4Q 2014 Performance - Western fee harvest volumes increased and log realizations improved in domestic and Japanese markets. These improvements were partially offset by weaker demand and pricing for Chinese export logs. In the South, fee harvest volumes increased and realizations improved slightly. Earnings from disposition of non-strategic timberlands decreased by $16 million compared with the third quarter.

1Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Timberlands segment in the first quarter. In the West, the company anticipates improved domestic volumes and realizations, partially offset by lower export log volumes. Western logging and road building costs should decline seasonally. In the South, the company expects lower fee harvest volumes due to seasonally wet weather. The company anticipates higher earnings from the disposition of non-strategic timberlands in the first quarter of 2015 compared to the fourth quarter 2014.

WOOD PRODUCTS
FINANCIAL HIGHLIGHTS (millions)	3Q 2014	4Q 2014	Change
Net sales to unaffiliated customers	$1,048	$947	($101)
Contribution to pre-tax earnings	$105	$56	($49)

4Q 2014 Performance - Average realizations for lumber and oriented strand board decreased, and sales volumes declined seasonally across all product lines. Per unit manufacturing costs increased due to seasonally lower production volumes.

1Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Wood Products segment in the first quarter. The company expects slightly improved average realizations for lumber and oriented strand board, and higher sales and production volumes across all product lines, partially offset by higher log costs.

CELLULOSE FIBERS
FINANCIAL HIGHLIGHTS (millions)	3Q 2014	4Q 2014	Change
Net sales	$503	$482	($21)
Contribution to pre-tax earnings	$59	$87	$28

4Q 2014 Performance - Average pulp price realizations increased, and sales volumes fell slightly. In liquid packaging board, lower realizations and lower shipment volumes as a result of West Coast port slowdowns were offset by lower maintenance costs and higher production rates following completion of an extended outage that occurred primarily in the third quarter.

1Q 2015 Outlook - Weyerhaeuser expects significantly lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates reduced pulp price realizations, higher maintenance expense, and decreased shipment volumes for liquid packaging board due to continuing West Coast port slowdowns, partially offset by higher liquid packaging board realizations due to mix.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage additional timberlands 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. Our company is a real estate investment trust. In 2014, our continuing operations generated $7.4 billion in sales and employed approximately 12,800 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common 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 January 30 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January.

To join the conference call from within North America, dial 877-296-9413 (access code: 28339647) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28339647). Replays will be available for one week at 855-859-2056 (access code: 28339647) from within North America and at 404-537-3406 (access code: 28339647) from outside North America.

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 2015, including with respect to earnings, log realizations and demand, logging and road building costs, harvest volumes and dispositions of non-strategic timberlands in Timberlands, sales and production volumes across Wood Products product lines and realizations in lumber and oriented strand board, maintenance expenses, realizations in pulp and liquid packaging board and the effect of continuing West Coast port slowdowns on shipping volumes in Cellulose Fibers.

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;
the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
raw material prices;
energy prices;
the effect of weather;
the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
transportation availability and 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 in the Company's other filings with the SEC.

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 and disruptions in shipping and transportation also may affect the company.

View our financials in a printer-friendly PDF.

For more information contact:		Analysts - Beth Baum or Denise Merle (253) 924-2058
		Media - Anthony Chavez (253) 924-7148

Weyerhaeuser Company						Exhibit 99.2
Q4.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Net Sales	$ 1,736	$ 1,964	$ 1,915	$ 1,788	$ 1,768	$ 7,403	$ 7,254
Cost of products sold	1,361	1,499	1,504	1,399	1,412	5,763	5,716
Gross margin	375	465	411	389	356	1,640	1,538
Selling expenses	28	27	28	29	29	112	125
General and administrative expenses	88	88	73	89	105	338	404
Research and development expenses	7	7	5	8	10	27	33
Charges for restructuring, closures and impairments	19	8	10	7	370	44	377
Other operating income, net	(75)	(65)	(23)	(38)	(3)	(201)	(35)
Operating income	308	400	318	294	(155)	1,320	634
Interest income and other	9	11	7	10	16	37	55
Interest expense, net of capitalized interest	(83)	(83)	(88)	(90)	(113)	(344)	(369)
Earnings from continuing operations before income taxes	234	328	237	214	(252)	1,013	320
Income taxes	(50)	(59)	(39)	(37)	270	(185)	171
Earnings from continuing operations	184	269	198	177	18	828	491
Earnings from discontinued operations, net of income taxes	10	22	966	—	36	998	72
Net earnings	194	291	1,164	177	54	1,826	563
Dividends on preference shares	(11)	(11)	(11)	(11)	(11)	(44)	(23)
Net earnings attributable to Weyerhaeuser common shareholders	$ 183	$ 280	$ 1,153	$ 166	$ 43	$ 1,782	$ 540

Per Share Information

	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations	$ 0.29	$ 0.44	$ 0.35	$ 0.32	$ 0.01	$ 1.41	$ 0.82
Discontinued operations	0.02	0.04	1.82	—	0.06	1.79	0.13
Net earnings per share	$ 0.31	$ 0.48	$ 2.17	$ 0.32	$ 0.07	$ 3.20	$ 0.95
Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations	$ 0.29	$ 0.43	$ 0.35	$ 0.31	$ 0.01	$ 1.40	$ 0.82
Discontinued operations	0.02	0.04	1.80	—	0.06	1.78	0.13
Net earnings per share	$ 0.31	$ 0.47	$ 2.15	$ 0.31	$ 0.07	$ 3.18	$ 0.95
Dividends paid per common share	$ 0.22	$ 0.22	$ 0.29	$ 0.29	$ 0.22	$ 1.02	$ 0.81
Weighted average shares outstanding (in thousands):
Basic	584,915	586,061	531,913	524,838	583,610	556,705	566,329
Diluted	589,312	589,766	536,012	529,411	588,616	560,899	571,239
Common shares outstanding at end of period (in thousands)	584,961	586,698	525,485	524,474	583,548	524,474	583,548

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Net earnings	$ 194	$ 291	$ 1,164	$ 177	$ 54	$ 1,826	$ 563
Earnings from discontinued operations, net of income taxes	(10)	(22)	(966)	—	(36)	(998)	(72)
Interest income and other	(9)	(11)	(7)	(10)	(16)	(37)	(55)
Interest expense, net of capitalized interest	83	83	88	90	113	344	369
Income taxes	50	59	39	37	(270)	185	(171)
Operating income	308	400	318	294	(155)	1,320	634
Depreciation, depletion and amortization	123	122	123	125	125	493	458
Non-operating pension and postretirement costs (credits)	(10)	(11)	(12)	(12)	9	(45)	40
Special items	(49)	(39)	(15)	(31)	366	(134)	366
Adjusted EBITDA*	$ 372	$ 472	$ 414	$ 376	$ 345	$ 1,634	$ 1,498
* Non-GAAP measure - see page 8 for definition.

Weyerhaeuser Company
Q4.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet

in millions	March 31, 2014	June 30, 2014	September 30, 2014	December 31, 2014	December 31, 2013
	March 31, 2014	June 30, 2014	September 30, 2014	December 31, 2014	December 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$ 777	$ 845	$ 1,620	$ 1,580	$ 830
Receivables, less allowances	543	590	583	525	518
Receivables for taxes	34	37	23	25	101
Inventories	626	596	578	595	542
Prepaid expenses	101	106	97	80	117
Deferred tax assets	186	128	111	228	130
Current assets of discontinued operations	48	988	—	—	88
Total current assets	2,315	3,290	3,012	3,033	2,326
Property and equipment, net	2,596	2,599	2,534	2,623	2,689
Construction in progress	140	157	215	131	112
Timber and timberlands at cost, less depletion charged to disposals	6,574	6,571	6,546	6,530	6,580
Investments in and advances to equity affiliates	189	188	186	188	190
Goodwill	40	40	40	40	42
Deferred tax assets	1	—	—	8	5
Other assets	354	419	292	289	324
Restricted financial investments held by variable interest entities	615	615	615	615	615
Noncurrent assets of discontinued operations	1,762	1,827	—	—	1,694
Total assets	$14,586	$15,706	$13,440	$13,457	$14,577

LIABILITIES AND EQUITY
Current liabilities:
Notes payable	$ 2	$ —	$ —	$ —	$ 2
Accounts payable	365	335	351	331	343
Accrued liabilities	582	597	606	587	629
Current liabilities of discontinued operations	123	137	—	—	154
Total current liabilities	1,072	1,069	957	918	1,128
Long-term debt	4,891	4,891	4,891	4,891	4,891
Long-term debt (nonrecourse to the company) held by variable interest entities	511	511	511	511	511
Deferred income taxes	387	410	338	206	285
Deferred pension and other postretirement benefits	471	422	569	1,319	516
Other liabilities	334	334	318	308	382
Noncurrent liabilities of discontinued operations	35	926	—	—	32
Total liabilities	7,701	8,563	7,584	8,153	7,745
Equity:
Total Weyerhaeuser shareholders' interest	6,852	7,092	5,856	5,304	6,795
Noncontrolling interests	3	2	—	—	3
Noncontrolling interests in discontinued operations	30	49	—	—	34
Total equity	6,885	7,143	5,856	5,304	6,832
Total liabilities and equity	$14,586	$15,706	$13,440	$13,457	$14,577

Weyerhaeuser Company
Q4.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Cash flows from operations:
Net earnings	$ 194	$ 291	$ 1,164	$ 177	$ 54	$ 1,826	$ 563
Noncash charges (credits) to income:
Depreciation, depletion and amortization	126	126	123	125	129	500	472
Deferred income taxes, net	36	89	45	35	(102)	205	(29)
Pension and other postretirement benefits	(47)	(44)	(13)	(48)	22	(152)	101
Share-based compensation expense	9	11	9	11	8	40	42
Charges for impairment of assets	—	1	—	1	367	2	372
Net gains on dispositions of assets and operations	(25)	(21)	(1,002)	(2)	(16)	(1,050)	(58)
Foreign exchange transaction (gains) losses	14	(12)	13	12	1	27	7
Change in:
Receivables less allowances	(1)	(47)	20	57	85	29	(27)
Receivable for taxes	67	(3)	13	(1)	(70)	76	(6)
Inventories	(88)	34	8	(20)	(13)	(66)	(13)
Real estate and land	(72)	(35)	(26)	—	13	(133)	(166)
Prepaid expenses	3	(3)	6	11	(10)	17	(26)
Accounts payable and accrued liabilities	(80)	(17)	21	(22)	(96)	(98)	(51)
Deposits on land positions and other assets	12	(4)	7	—	(7)	15	(18)
Pension and postretirement contributions	(33)	(30)	(22)	(16)	(33)	(101)	(137)
Other	(6)	(14)	(13)	(16)	16	(49)	(22)
Net cash from operations	109	322	353	304	348	1,088	1,004

Cash flows from investing activities:
Property and equipment	(51)	(83)	(105)	(115)	(110)	(354)	(261)
Timberlands reforestation	(14)	(11)	(7)	(9)	(4)	(41)	(32)
Acquisition of Longview Timber LLC, net of cash acquired	—	—	—	—	—	—	(1,581)
Net proceeds from Real Estate Divestiture, net of cash divested	—	—	707	—	—	707	—
Proceeds from sale of assets	19	1	4	4	5	28	20
Net proceeds of investments held by special purpose entities	—	—	—	—	—	—	22
Other	—	—	25	(4)	(2)	21	3
Cash from investing activities	(46)	(93)	624	(124)	(111)	361	(1,829)

Cash flows from financing activities:
Net proceeds from issuance of common shares	—	—	—	—	—	—	897
Net proceeds from issuance of preference shares	—	—	—	—	—	—	669
Net proceeds from issuance of debt	—	—	—	—	550	—	1,044
Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt	—	887	—	—	—	887	—
Deposit of WRECO debt proceeds into escrow	—	(887)	—	—	—	(887)	—
Cash dividends on common shares	(129)	(128)	(154)	(152)	(128)	(563)	(458)
Cash dividends on preference shares	—	(11)	(11)	(22)	(23)	(44)	(23)
Change in book overdrafts	(6)	—	(11)	—	(1)	(17)	7
Payments on debt	—	—	—	—	(1,227)	—	(1,567)
Exercises of stock options	15	39	30	35	21	119	162
Repurchase of common stock	—	—	(123)	(80)	—	(203)	—
Other	2	(1)	4	(1)	9	4	31
Cash from financing activities	(118)	(101)	(265)	(220)	(799)	(704)	762

Net change in cash and cash equivalents	(55)	128	712	(40)	(562)	745	(63)
Cash and cash equivalents at beginning of period	835	780	908	1,620	1,397	835	898
Cash and cash equivalents at end of period	$ 780	$ 908	$ 1,620	$ 1,580	$ 835	$ 1,580	$ 835
Cash paid (received) during the year for:
Interest, net of amount capitalized	$ 101	$ 52	$ 100	$ 66	$ 91	$ 319	$ 366
Income taxes	$ (50)	$ 5	$ 5	$ 3	$ 12	$ (37)	$ 8
Noncash investing and financing activity:
Acquisition of Longview Timber LLC, debt assumed	$ —	$ —	$ —	$ —	$ —	$ —	$ 1,070
Common shares tendered in WRECO divestiture	$ —	$ —	$ 1,954	$ —	$ —	$ 1,954	$ —

Weyerhaeuser Company					Total Company Statistics
Q4.2014 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Net earnings attributable to Weyerhaeuser common shareholders	$ 183	$ 280	$1,153	$ 166	$ 43	$1,782	$ 540
Restructuring, impairments and other charges	13	5	6	4	247	28	247
Gain on sale of non-strategic asset	(14)	—	—	—	—	(14)	—
Gain on postretirement plan amendment	(29)	(29)	(15)	(25)	—	(98)	—
Loss on early extinguishment of debt	—	—	—	—	25	—	25
Tax adjustments	—	—	—	—	(168)	—	(168)
Net earnings attributable to Weyerhaeuser common shareholders before special items	153	256	1,144	145	147	1,698	644
Earnings from discontinued operations, net of income taxes	(10)	(22)	(966)	—	(36)	(998)	(72)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items	$ 143	$ 234	$ 178	$ 145	$ 111	$ 700	$ 572

	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$ 0.31	$ 0.47	$ 2.15	$ 0.31	$ 0.07	$ 3.18	$ 0.95
Restructuring, impairments and other charges	0.02	0.01	0.01	0.01	0.42	0.05	0.42
Gain on sale of non-strategic asset	(0.02)	—	—	—	—	(0.02)	—
Gain on postretirement plan amendment	(0.05)	(0.04)	(0.03)	(0.05)	—	(0.18)	—
Loss on early extinguishment of debt	—	—	—	—	0.05	—	0.05
Tax adjustments	—	—	—	—	(0.29)	—	(0.30)
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	0.26	0.44	2.13	0.27	0.25	3.03	1.12
Earnings from discontinued operations, net of income taxes	(0.02)	(0.04)	(1.80)	—	(0.06)	(1.78)	(0.13)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items	$ 0.24	$ 0.40	$ 0.33	$ 0.27	$ 0.19	$ 1.25	$ 0.99

Selected Total Company Items

in millions	Q1	Q2	Q3	Q4		Year-to-date
	Mar 31, 2014	Jun 30, 2014	Sep 30, 2014	Dec 31, 2014	Dec 31, 2013	Dec 31, 2014	Dec 31, 2013
Depreciation, depletion and amortization:
Cost of products sold	$ 117	$ 117	$ 117	$ 119	$ 120	$ 470	$ 435
Selling, general and administrative expenses	6	5	6	6	5	23	23
Total depreciation, depletion and amortization	$ 123	$ 122	$ 123	$ 125	$ 125	$ 493	$ 458

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 10	$ 12	$ 11	$ 12	$ 14	$ 45	$ 56
Pension and postretirement costs (credits) not allocated	(10)	(11)	(12)	(12)	9	(45)	40
Total company pension and postretirement costs	$ —	$ 1	$ (1)	$ —	$ 23	$ —	$ 96

Total decrease (increase) in working capital⁽¹⁾	$ (170)	$ 49	$ 106	$ 6	$ (17)	$ (9)	$ (52)
Cash spent for capital expenditures	$ (63)	$ (92)	$ (112)	$ (124)	$ (113)	$ (391)	$ (283)
⁽¹⁾Working capital does not include cash balances.

Weyerhaeuser Company						Timberlands Segment
Q4.2014 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Sales to unaffiliated customers		$ 377	$ 397	$ 364	$ 359	$ 364	$ 1,497	$ 1,343
Intersegment sales		238	186	218	225	215	867	799
Total net sales		615	583	582	584	579	2,364	2,142
Cost of products sold		431	399	432	424	425	1,686	1,592
Gross margin		184	184	150	160	154	678	550
Selling expenses		2	2	2	1	2	7	10
General and administrative expenses		26	23	23	25	26	97	103
Research and development expenses		4	3	4	5	6	16	19
Charges for restructuring, closures and impairments		—	—	1	—	—	1	2
Other operating income, net		(12)	(14)	(16)	(14)	(13)	(56)	(50)
Operating income		164	170	136	143	133	613	466
Interest income and other		—	—	—	—	1	—	4
Net contribution to earnings		$ 164	$ 170	$ 136	$ 143	$ 134	$ 613	$ 470

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Operating income		$ 164	$ 170	$ 136	$ 143	$ 133	$ 613	$ 466
Depreciation, depletion and amortization		52	51	51	53	51	207	166
Adjusted EBITDA*		$ 216	$ 221	$ 187	$ 196	$ 184	$ 820	$ 632
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾		$ (29)	$ (15)	$ 25	$ 8	$ (7)	$ (11)	$ (7)
Cash spent for capital expenditures		$ (19)	$ (18)	$ (19)	$ (18)	$ (21)	$ (74)	$ (73)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Third Party Net Sales (millions)	Logs:
	West	$ 257	$ 261	$ 227	$ 227	$ 230	$ 972	$ 828
	South	62	60	69	66	64	257	256
	Canada	6	1	5	10	4	22	19
	Total logs	325	322	301	303	298	1,251	1,103
	Chip sales	3	2	4	3	2	12	9
	Timberlands exchanges	4	28	17	3	21	52	65
	Higher and better use land sales	3	7	4	5	9	19	19
	Minerals, oil and gas	7	8	10	7	6	32	32
	Products from international operations	24	26	22	24	22	96	90
	Other products	11	4	6	14	6	35	25
	Total	$ 377	$ 397	$ 364	$ 359	$ 364	$ 1,497	$ 1,343
Logs Third Party Sales Realizations (per cubic meter)	West	$ 114.46	$ 109.13	$ 102.23	$ 106.73	$ 104.91	$ 108.19	$ 107.36
	South	$ 44.88	$ 45.16	$ 45.30	$ 45.56	$ 43.72	$ 45.23	$ 43.49
	Canada	$ 35.30	$ 38.04	$ 37.75	$ 38.82	$ 38.68	$ 37.58	$ 37.71
	International	$ 16.99	$ 16.27	$ 19.95	$ 18.64	$ 23.05	$ 18.06	$ 24.22
Logs Third Party Sales Volumes (cubic meters, thousands)	West	2,246	2,390	2,223	2,121	2,185	8,980	7,708
	South	1,385	1,339	1,500	1,454	1,468	5,678	5,888
	Canada	156	30	152	254	128	592	511
	International	147	139	170	148	112	604	357
	Total	3,934	3,898	4,045	3,977	3,893	15,854	14,464
Logs Fee Harvest Volumes (cubic meters, thousands)	West	2,875	2,888	2,656	2,754	2,686	11,173	8,907
	South	2,866	2,715	2,950	3,145	3,007	11,676	11,596
	International	249	249	232	260	243	990	818
	Total	5,990	5,852	5,838	6,159	5,936	23,839	21,321

Weyerhaeuser Company						Wood Products Segment
Q4.2014 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Sales to unaffiliated customers		$ 898	$ 1,077	$ 1,048	$ 947	$ 926	$ 3,970	$ 4,009
Intersegment sales		19	21	20	20	16	80	71
Total net sales		917	1,098	1,068	967	942	4,050	4,080
Cost of products sold		791	939	910	855	826	3,495	3,385
Gross margin		126	159	158	112	116	555	695
Selling expenses		25	23	22	24	24	94	98
General and administrative expenses		37	30	31	32	32	130	141
Research and development expenses		1	2	—	1	2	4	6
Charges for restructuring, closures and impairments		—	2	—	—	11	2	13
Other operating income, net		(1)	—	—	(1)	(1)	(2)	(4)
Operating income		64	102	105	56	48	327	441
Interest income and other		—	—	—	—	—	—	—
Net contribution to earnings		$ 64	$ 102	$ 105	$ 56	$ 48	$ 327	$ 441

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Operating income		$ 64	$ 102	$ 105	$ 56	$ 48	$ 327	$ 441
Depreciation, depletion and amortization		29	30	30	30	30	119	123
Special items		—	—	—	—	10	—	10
Adjusted EBITDA*		$ 93	$ 132	$ 135	$ 86	$ 88	$ 446	$ 574
* Non-GAAP measure - see page 8 for definition.

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

		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Charges for restructuring, closures and impairments		$ —	$ —	$ —	$ —	$ (10)	$ —	$ (10)

Selected Segment Items

		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾		$ (137)	$ 29	$ 41	$ 29	$ 40	$ (38)	$ (5)
Cash spent for capital expenditures		$ (18)	$ (38)	$ (56)	$ (78)	$ (61)	$ (190)	$ (113)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Structural Lumber (board feet)	Third party net sales	$ 427	$ 515	$ 500	$ 459	$ 440	$ 1,901	$ 1,873
	Third party sales realizations	$ 432	$ 427	$ 431	$ 415	$ 413	$ 426	$ 422
	Third party sales volumes⁽¹⁾	989	1,206	1,162	1,106	1,066	4,463	4,436
	Production volumes	1,009	1,081	1,049	1,013	970	4,152	4,084
	Outside purchase volumes	78	82	91	94	83	345	354
Engineered Solid Section (cubic feet)	Third party net sales	$ 90	$ 114	$ 104	$ 94	$ 90	$ 402	$ 353
	Third party sales realizations	$ 1,959	$ 1,976	$ 2,031	$ 2,060	$ 2,006	$ 2,005	$ 1,936
	Third party sales volumes⁽¹⁾	4.6	5.8	5.1	4.5	4.5	20.0	18.2
	Production volumes	4.9	5.7	5.2	4.6	4.2	20.4	18.0
	Outside purchase volumes	1.8	0.5	—	—	0.2	2.3	1.8
Engineered I-joists (lineal feet)	Third party net sales	$ 59	$ 81	$ 74	$ 63	$ 63	$ 277	$ 247
	Third party sales realizations	$ 1,454	$ 1,470	$ 1,540	$ 1,549	$ 1,485	$ 1,502	$ 1,393
	Third party sales volumes⁽¹⁾	40	55	49	40	42	184	177
	Production volumes	44	55	50	33	38	182	168
	Outside purchase volumes	1	3	1	2	2	7	8
Oriented Strand Board (square feet 3/8')	Third party net sales	$ 148	$ 159	$ 157	$ 146	$ 161	$ 610	$ 809
	Third party sales realizations	$ 230	$ 226	$ 215	$ 206	$ 237	$ 219	$ 292
	Third party sales volumes⁽¹⁾	641	706	732	709	678	2,788	2,772
	Production volumes	657	681	717	694	673	2,749	2,723
	Outside purchase volumes	53	51	52	61	54	217	227
Softwood Plywood (square feet 3/8')	Third party net sales	$ 30	$ 35	$ 42	$ 36	$ 29	$ 143	$ 144
	Third party sales realizations	$ 332	$ 348	$ 381	$ 384	$ 339	$ 362	$ 358
	Third party sales volumes⁽¹⁾	90	102	110	93	87	395	402
	Production volumes	59	60	72	61	55	252	241
	Outside purchase volumes	33	36	31	42	40	142	155
(1) Sales volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

Weyerhaeuser Company						Cellulose Fibers Segment
Q4.2014 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Total net sales		$ 461	$ 490	$ 503	$ 482	$ 478	$1,936	$ 1,902
Cost of products sold		390	381	427	379	397	1,577	1,621
Gross margin		71	109	76	103	81	359	281
Selling expenses		4	4	3	4	3	15	17
General and administrative expenses		20	20	18	18	17	76	79
Research and development expenses		2	2	1	2	2	7	8
Other operating income, net		(9)	(8)	(6)	(8)	(2)	(31)	(20)
Operating income		54	91	60	87	61	292	197
Interest income and other		—	—	(1)	—	4	(1)	3
Net contribution to earnings		$ 54	$ 91	$ 59	$ 87	$ 65	$ 291	$ 200

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Operating income		$ 54	$ 91	$ 60	$ 87	$ 61	$ 292	$ 197
Depreciation, depletion and amortization		38	39	39	39	40	155	156
Adjusted EBITDA*		$ 92	$ 130	$ 99	$ 126	$ 101	$ 447	$ 353
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾		$ 31	$ (37)	$ 39	$ (47)	$ (12)	$ (14)	$ 12
Cash spent for capital expenditures		$ (26)	$ (35)	$ (36)	$ (26)	$ (30)	$ (123)	$ (92)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Pulp (air-dry metric tons)	Third party net sales (millions)	$ 363	$ 383	$ 408	$ 405	$ 390	$ 1,559	$ 1,501
	Third party sales realizations	$ 825	$ 845	$ 858	$ 886	$ 818	$ 854	$ 804
	Third party sales volumes (thousands)	440	454	474	458	477	1,826	1,866
	Production volumes (thousands)	459	467	465	468	450	1,859	1,815
Liquid Packaging Board (tons)	Third party net sales (millions)	$ 80	$ 87	$ 80	$ 63	$ 72	$ 310	$ 326
	Third party sales realizations	$ 1,122	$ 1,165	$ 1,185	$ 1,028	$ 1,029	$ 1,129	$ 1,068
	Third party sales volumes (thousands)	71	75	68	60	70	274	305
	Production volumes (thousands)	78	79	57	78	85	292	307

Weyerhaeuser Company					Unallocated Items
Q4.2014 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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve.

Contribution to Earnings

in millions	Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Unallocated corporate function expenses	$ (7)	$ (7)	$ (3)	$ (7)	$ (12)	$ (24)	$ (38)
Unallocated share-based compensation	3	(6)	1	(7)	(5)	(9)	(8)
Unallocated pension & postretirement credits (costs)	55	56	35	50	(9)	196	(40)
Foreign exchange gains (losses)	(15)	13	(14)	(11)	(1)	(27)	(7)
Elimination of intersegment profit in inventory and LIFO	(19)	(1)	12	(2)	6	(10)	15
Other	9	(18)	(14)	(15)	(376)	(38)	(392)
Operating income (loss)	26	37	17	8	(397)	88	(470)
Interest income and other	9	11	8	10	11	38	48
Net contribution to earnings from continuing operations⁽¹⁾	$ 35	$ 48	$ 25	$ 18	$ (386)	$ 126	$ (422)
⁽¹⁾We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders' interest.


Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions	Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Operating income (loss)	$ 26	$ 37	$ 17	$ 8	$ (397)	$ 88	$ (470)
Depreciation, depletion and amortization	4	2	3	3	4	12	13
Non-operating pension and postretirement costs (credits)	(10)	(11)	(12)	(12)	9	(45)	40
Special items	(49)	(39)	(15)	(31)	356	(134)	356
Adjusted EBITDA*	$ (29)	$ (11)	$ (7)	$ (32)	$ (28)	$ (79)	$ (61)
* Non-GAAP measure - see below for definition.

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

	Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Gain on postretirement plan amendment	$ 45	$ 45	$ 23	$ 38	$ —	$ 151	$ —
Restructuring, impairments and other charges	(18)	(6)	(8)	(7)	(356)	(39)	(356)
Gain on sale of non-strategic asset	22	—	—	—	—	22	—
Total	$ 49	$ 39	$ 15	$ 31	$ (356)	$ 134	$ (356)

Unallocated Selected Items

	Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾	$ (35)	$ 72	$ 1	$ 16	$ (38)	$ 54	$ (52)
Cash spent for capital expenditures	$ —	$ (1)	$ (1)	$ (2)	$ (1)	$ (4)	$ (5)
⁽¹⁾Working capital does not include cash balances.

*Adjusted EBITDAis 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 discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

Weyerhaeuser Company					Discontinued Operations
Q4.2014 Analyst Package
Preliminary results, subject to audit

Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items.

Discontinued Operations Statement of Operations

in millions	Q1.2014	Q2.2014	Q3.2014	Q4.2014	Q4.2013	YTD.2014	YTD.2013
Total net sales	$ 248	$ 317	$ 8	$ —	$ 488	$ 573	$ 1,275
Income (loss) from operations	$ 16	$ 27	$ (1)	$ —	$ 58	$ 42	$ 114
Income taxes	(6)	(5)	(5)	—	(22)	(16)	(42)
Net earnings (loss) from operations	10	22	(6)	—	36	26	72
Net gain on divestiture	—	—	972	—	—	972	—
Net earnings from discontinued operations	$ 10	$ 22	$ 966	$ —	$ 36	$ 998	$ 72