Weyerhaeuser Reports Second Quarter Results

- Net earnings before special items increased fourfold compared with second quarter 2012

- Net sales increased approximately 20 percent to $2.1 billion, highest since 2008

- Acquired approximately 645,000 acres of unique, high-value timberlands in Washington and Oregon through purchase of Longview Timber LLC

News provided by

Weyerhaeuser Company

Jul 26, 2013, 03:05 ET

FEDERAL WAY, Wash., July 26, 2013 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings to common shareholders of $196 million, or 35 cents per diluted share, for the second quarter. As there were no special items this period, this compares with net earnings before special items of $47 million, or 9 cents per diluted share, for the same period last year. Net sales for the second quarter of 2013 totaled $2.1 billion, compared with net sales of $1.8 billion for the second quarter of 2012.

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

"This was a milestone quarter for Weyerhaeuser," said Dan Fulton, president and chief executive officer. "We moved forward both strategically and operationally with the acquisition of Longview Timber LLC and by delivering strong operating results in this improving housing market."

WEYERHAEUSER FINANCIAL HIGHLIGHTS	2013	2013	2012
(millions, except per share data)	1Q	2Q	2Q
Net sales	$1,951	$2,141	$1,793
Net earnings attributable to Weyerhaeuser common shareholders	$144	$196	$84
Weighted average shares outstanding, diluted⁽¹⁾	551	558	540
Earnings per diluted share	$0.26	$0.35	$0.16
Net earnings before special items	$144	$196	$47
Earnings per diluted share before special items	$0.26	$0.35	$0.09
Net cash from operations	($61)	$374	$267
Net change in cash and cash equivalents^(2,3)	($259)	$1,723	$133
Cash and cash equivalents at end of period^(2,3)	$639	$2,362	$861

(1) Weyerhaeuser's common shares outstanding increased to approximately 578 million basic shares, or 583 million shares on a diluted basis, during the second quarter of 2013 following the issuance of 29 million common shares in conjunction with the acquisition of Longview Timber LLC. The company also issued 13.8 million mandatory convertible preference shares with a conversion date of July 1, 2016. Subsequent to the end of the second quarter, the company issued an additional 4.35 million common shares in connection with the exercise of an overallotment option.

(2) During the second quarter of 2013, Weyerhaeuser received $1,450 million from issuance of common and mandatory convertible preference shares related to the acquisition of Longview Timber LLC. These funds are recorded as "Cash and cash equivalents designated for purchase of Longview Timber LLC" on the Consolidated Balance Sheet.

(3) First quarter includes $156 million for debt repayment.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	1Q 2013	2Q 2013	Change
Net sales to unaffiliated customers	$293	$333	$40
Intersegment sales	224	166	(58)
Total net sales	$517	$499	($18)
Contribution to earnings	$104	$114	$10

2Q 2013 Performance - Earnings from disposition of non-strategic timberlands increased $11 million compared with the first quarter. In the West, improved selling prices for export and domestic logs were mostly offset by slightly lower fee harvest volumes, increased logging costs, and seasonally higher road and silviculture expenses. Southern fee harvest volumes and log realizations were comparable to the first quarter.

3Q 2013 Outlook - On July 23, 2013, Weyerhaeuser completed the acquisition of Longview Timber LLC. Earnings from these operations will be included in the Timberlands segment beginning in the third quarter of 2013.

Weyerhaeuser anticipates lower earnings from the Timberlands segment in the third quarter, as the positive contribution from a partial quarter of Longview Timber earnings will not offset a normal seasonal decline in the contribution from the company's existing operations. The company expects seasonally higher road and silviculture costs, weaker domestic and export prices for Western logs, and a seasonal reduction in fee harvest from existing Western operations. These should be partially offset by seasonally higher Southern harvest volumes and somewhat higher earnings from disposition of non-strategic timberlands.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)	1Q 2013	2Q 2013	Change
Net sales to unaffiliated customers	$988	$1,065	$77
Intersegment sales	18	18	0
Total net sales	$1,006	$1,083	$77
Contribution to earnings	$178	$136	($42)

2Q 2013 Performance - Lumber sales volumes improved 13 percent compared with the first quarter, and sales volumes for most other products improved slightly. These improvements were more than offset by lower average selling prices for oriented strand board and higher raw material costs. Manufacturing costs increased due to higher maintenance expense and unplanned downtime in oriented strand board and engineered wood products mills. Distribution business margins declined due to falling prices for commodity products throughout most of the second quarter.

3Q 2013 Outlook - Weyerhaeuser anticipates lower earnings from the Wood Products segment in the third quarter. The company expects substantially lower average selling prices for oriented strand board and lower lumber realizations. These should be partially offset by improved sales volumes across most product lines, lower log and maintenance costs, and improved operating rates.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)	1Q 2013	2Q 2013	Change
Net sales	$474	$476	$2
Contribution to earnings	$31	$57	$26

2Q 2013 Performance - Maintenance costs declined and pulp mill productivity increased due to a reduction in major maintenance projects. Energy, fiber, and chemical costs declined and average pulp price realizations improved slightly.

3Q 2013 Outlook - Weyerhaeuser expects comparable earnings from the Cellulose Fibers segment in the third quarter. The company anticipates slightly higher average selling prices due to mix, slightly improved sales volumes and lower fiber and energy costs, offset by increased maintenance expense.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)	1Q 2013	2Q 2013	Change
Net sales	$196	$267	$71
Contribution to earnings	$0	$14	$14

2Q 2013 Performance - Home closings increased seasonally to 636 single-family homes, and average margins on homes closed improved due to mix. These factors were partially offset by increased selling costs due to the higher closing volume. Second quarter results include earnings of $2 million from land and lot sales.

At the end of the second quarter the backlog of homes sold, but not closed, totaled 1,438 units, compared with 1,033 units one year ago.

3Q 2013 Outlook - Weyerhaeuser expects slightly higher earnings from single-family homebuilding in the third quarter. Single-family closing volume should increase seasonally to more than 700 single-family homes, with lower average margins due to mix. The company anticipates higher selling-related expenses due to the additional closing volume, and somewhat higher earnings from land and lot sales.

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 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 common stock trades on the New York Stock Exchange under the symbol WY.

EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 26 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 26.

To join the conference call from within North America, dial 877-296-9413 (access code – 86488658) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86488658). Replays will be available for two weeks at 855-859-2056 (access code – 86488658) from within North America and at 404-537-3406 (access code – 86488658) 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 third quarter of 2013, including weaker domestic and export prices for Western logs, seasonally lower fee harvest from existing Western operations, comparable log price realizations and seasonally higher harvest volumes in the South, seasonally higher road and silviculture costs, somewhat higher earnings from disposition of non-strategic timberlands, just over two months of earnings from Longview Timber, seasonal slowdown in existing operations, and lower earnings from the Timberlands segment; substantially lower average selling prices for oriented strand board, lower lumber realizations, improved sales volumes across most product lines, lower log prices in the West, lower manufacturing costs and improved operating rates for OSB and engineered wood products, and lower earnings from the Wood Products segment; modestly improved average sales realizations and volumes for pulp and liquid packaging board, lower fiber and energy costs, higher maintenance costs and lower productivity due to additional planned annual outage days, and comparable earnings from the Cellulose Fibers segment; and seasonally increased home closings to more than 700 single-family homes, lower average margins due to mix, higher selling-related expenses due to the additional closing volume, somewhat higher earnings from the sale of land and lots, and higher earnings 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;
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 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.

For more information contact:		• Analysts - Kathryn McAuley (253) 924-2058
		• Media - Anthony Chavez (253) 924-7148

				Exhibit 99.2
Weyerhaeuser Company
Q2.2013 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations

in millions	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Net Sales	$ 1,951	$ 2,141	$ 1,793	$ 4,092	$ 3,287
Cost of products sold	1,533	1,664	1,516	3,197	2,806
Gross margin	418	477	277	895	481
Selling expenses	51	54	47	105	89
General and administrative expenses	118	108	95	226	203
Research and development expenses	7	8	8	15	15
Charges for restructuring, closures and impairments	4	6	4	10	16
Other operating income, net	(18)	(10)	(53)	(28)	(119)
Operating income	256	311	176	567	277
Interest income and other	11	10	11	21	23
Interest expense, net of capitalized interest	(82)	(81)	(86)	(163)	(173)
Earnings before income taxes	185	240	101	425	127
Income taxes	(41)	(42)	(17)	(83)	(2)
Net earnings	144	198	84	342	125
Dividends on preference shares	—	(2)	—	(2)	—
Net earnings attributable to Weyerhaeuser common shareholders	$ 144	$ 196	$ 84	$ 340	$ 125

Per Share Information

	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Basic earnings per share attributable to Weyerhaeuser common shareholders	$ 0.26	$ 0.35	$ 0.16	$ 0.62	$ 0.23
Diluted earnings per share attributable to Weyerhaeuser common shareholders	$ 0.26	$ 0.35	$ 0.16	$ 0.61	$ 0.23
Dividends paid per common share	$ 0.17	$ 0.20	$ 0.15	$ 0.37	$ 0.30
Weighted average shares outstanding (in thousands):
Basic	545,234	552,855	537,966	549,159	537,667
Diluted	550,785	557,588	540,033	554,301	539,880
Common shares outstanding at end of period (in thousands)	546,573	577,874	537,526	577,874	537,526

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

in millions	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Net earnings	$ 144	$ 198	$ 84	$ 342	$ 125
Interest income and other	(11)	(10)	(11)	(21)	(23)
Interest expense, net of capitalized interest	82	81	86	163	173
Income taxes	41	42	17	83	2
Operating income	256	311	176	567	277
Depreciation, depletion and amortization	112	111	113	223	226
Non-operating pension and postretirement costs	10	12	7	22	14
Special items	—	—	(57)	—	(95)
Capitalized interest included in cost of products sold	9	13	19	22	22
Adjusted EBITDA, excluding special items*	$ 387	$ 447	$ 258	$ 834	$ 444
* Non-GAAP measure - see page 9 for definition.

Weyerhaeuser Company
Q2.2013 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet

in millions	March 31, 2013	June 30, 2013	December 31, 2012
	March 31, 2013	June 30, 2013	December 31, 2012
ASSETS
Forest Products:
Current assets:
Cash and cash equivalents	$ 635	$ 908	$ 893
Receivables, less allowances	628	583	468
Receivables for taxes	65	43	95
Inventories	596	561	531
Prepaid expenses	89	96	83
Deferred tax assets	189	144	65
Total current assets	2,202	2,335	2,135
Property and equipment, net	2,785	2,706	2,859
Construction in progress	56	72	50
Timber and timberlands at cost, less depletion charged to disposals	3,954	3,949	3,961
Cash and cash equivalents designated for the purchase of Longview Timber LLC	—	1,450	—
Investments in and advances to equity affiliates	191	186	192
Goodwill	40	42	40
Deferred tax assets	70	64	189
Other assets	351	349	358
Assets held by variable interest entities	804	621	805
	10,453	11,774	10,589
Real Estate:
Cash and cash equivalents	4	4	5
Receivables, less allowances	75	74	72
Real estate in process of development and for sale	724	769	658
Land being processed for development	897	913	904
Investments in and advances to equity affiliates	20	20	21
Deferred tax assets	204	201	202
Other assets	100	112	94
Assets held by variable interest entities	33	41	47
	2,057	2,134	2,003
Total assets	$ 12,510	$ 13,908	$ 12,592

LIABILITIES AND EQUITY
Forest Products:
Current liabilities:
Notes payable	$ —	$ 2	$ —
Current maturities of long-term debt	184	163	340
Accounts payable	357	341	329
Accrued liabilities	531	568	561
Total current liabilities	1,072	1,074	1,230
Long-term debt	3,842	3,842	3,842
Deferred income taxes	46	38	—
Deferred pension and other postretirement benefits	1,856	1,785	1,930
Other liabilities	455	446	499
Liabilities (nonrecourse to the company) held by variable interest entities	680	516	681
	7,951	7,701	8,182
Real Estate:
Long-term debt	109	109	109
Other liabilities	172	188	187
Liabilities (nonrecourse to the company) held by variable interest entities	2	4	1
	283	301	297
Total liabilities	8,234	8,002	8,479
Equity:
Total Weyerhaeuser shareholders' interest	4,244	5,868	4,070
Noncontrolling interests	32	38	43
Total equity	4,276	5,906	4,113
Total liabilities and equity	$ 12,510	$ 13,908	$ 12,592

Weyerhaeuser Company
Q2.2013 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows

in millions	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Cash flows from operations:
Net earnings	$ 144	$ 198	$ 84	$ 342	$ 125
Noncash charges (credits) to income:
Depreciation, depletion and amortization	112	111	113	223	226
Deferred income taxes, net	26	23	13	49	7
Pension and other postretirement benefits	24	28	(30)	52	(58)
Share-based compensation expense	12	10	8	22	18
Charges for impairment of assets	1	2	4	3	12
Net gains on dispositions of assets	(7)	(14)	(10)	(21)	(17)
Foreign exchange transaction losses	4	4	9	8	2
Change in:
Receivables less allowances	(165)	45	(18)	(120)	(23)
Receivable for taxes	30	22	18	52	16
Inventories	(68)	32	28	(36)	(12)
Real estate and land	(59)	(62)	7	(121)	(48)
Prepaid expenses	(13)	(1)	(12)	(14)	(20)
Accounts payable and accrued liabilities	(66)	34	65	(32)	9
Deposits on land positions and other assets	(1)	(9)	22	(10)	22
Pension and postretirement contributions	(37)	(32)	(33)	(69)	(68)
Other	2	(17)	(1)	(15)	16
Net cash from operations	(61)	374	267	313	207

Cash flows from investing activities:
Property and equipment	(35)	(47)	(68)	(82)	(122)
Timberlands reforestation	(13)	(8)	(7)	(21)	(17)
Proceeds from sale of assets	6	8	18	14	24
Proceeds of investments held by special purpose entities	—	22	—	22	—
Other	—	(4)	(1)	(4)	—
Cash from investing activities	(42)	(29)	(58)	(71)	(115)

Cash flows from financing activities:
Net proceeds from issuance of common shares⁽¹⁾	—	781	—	781	—
Net proceeds from issuance of preference shares⁽¹⁾	—	669	—	669	—
Cash dividends on common shares	(93)	(109)	(80)	(202)	(161)
Change in book overdrafts	3	4	9	7	(20)
Payments on debt	(156)	(21)	(4)	(177)	(6)
Exercises of stock options	81	51	2	132	7
Other	9	3	(3)	12	(4)
Cash from financing activities	(156)	1,378	(76)	1,222	(184)

Net change in cash and cash equivalents	(259)	1,723	133	1,464	(92)
Cash and cash equivalents at beginning of period	898	639	728	898	953
Cash and cash equivalents at end of period	$ 639	$ 2,362	$ 861	$ 2,362	$ 861
Cash paid (received) during the year for:
Interest, net of amount capitalized	$ 111	$ 55	$ 54	$ 166	$ 168
Income taxes	$ (2)	$ (4)	$ (5)	$ (6)	$ (15)

(1) During second quarter 2013, we received $1,450 million in cash related to the issuance of common shares and mandatory convertible preference shares related to the acquisition of Longview Timber LLC. We have recorded this cash as "Cash and cash equivalents designated for the purchase of Longview Timber LLC" on our Consolidated Balance Sheet.

Weyerhaeuser Company	Total Company Statistics
Q2.2013 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings

in millions	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Net earnings attributable to Weyerhaeuser common shareholders	$ 144	$ 196	$ 84	$ 340	$ 125
Restructuring, impairments and other charges	—	—	—	—	10
Gain on postretirement plan amendment	—	—	(33)	—	(67)
Tax settlements	—	—	—	—	(8)
Gain on sale of property	—	—	(4)	—	(4)
Net earnings attributable to Weyerhaeuser common shareholders before special items	$ 144	$ 196	$ 47	$ 340	$ 56

	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$ 0.26	$ 0.35	$ 0.16	$ 0.61	$ 0.23
Restructuring, impairments and other charges	—	—	—	—	0.02
Gain on postretirement plan amendment	—	—	(0.06)	—	(0.12)
Tax settlements	—	—	—	—	(0.02)
Gain on sale of property	—	—	(0.01)	—	(0.01)
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	$ 0.26	$ 0.35	$ 0.09	$ 0.61	$ 0.10

Selected Total Company Items

in millions	Q1	Q2		Year-to-date
	March 31, 2013	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Depreciation, depletion and amortization:
Cost of products sold	$ 103	$ 102	$ 103	$ 205	$ 205
Selling, general and administrative expenses	9	9	10	18	21
Total depreciation, depletion and amortization	$ 112	$ 111	$ 113	$ 223	$ 226

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 14	$ 16	$ 14	$ 30	$ 27
Pension and postretirement costs not allocated	10	12	7	22	14
Total company pension and postretirement costs	$ 24	$ 28	$ 21	$ 52	$ 41

Total decrease (increase) in Forest Products working capital⁽¹⁾	$ (334)	$ 161	$ 103	$ (173)	$ (45)
Cash spent for capital expenditures	$ (48)	$ (55)	$ (75)	$ (103)	$ (139)

⁽¹⁾Working capital does not include cash balances.

Weyerhaeuser Company		Timberlands Segment
Q2.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Sales to unaffiliated customers		$ 293	$ 333	$ 262	$ 626	$ 512
Intersegment sales		224	166	146	390	336
Total net sales		517	499	408	1,016	848
Cost of products sold		395	365	313	760	666
Gross margin		122	134	95	256	182
Selling expenses		3	2	2	5	4
General and administrative expenses		25	25	21	50	44
Research and development expenses		4	5	5	9	9
Charges for restructuring, closures and impairments		2	—	—	2	—
Other operating income, net		(15)	(11)	(10)	(26)	(21)
Operating income		103	113	77	216	146
Interest income and other		1	1	—	2	1
Net contribution to earnings		$ 104	$ 114	$ 77	$ 218	$ 147

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

in millions		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Operating income		$ 103	$ 113	$ 77	$ 216	$ 146
Depreciation, depletion and amortization		36	34	34	70	69
Adjusted EBITDA, excluding special items*		$ 139	$ 147	$ 111	$ 286	$ 215
* Non-GAAP measure - see page 9 for definition.

Selected Segment Items

		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾		$ (10)	$ (21)	$ 6	$ (31)	$ (3)
Cash spent for capital expenditures		$ (18)	$ (18)	$ (15)	$ (36)	$ (27)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Third Party Net Sales (millions)	Logs:
	West	$ 177	$ 208	$ 146	$ 385	$ 276
	South	61	65	56	126	106
	Canada	7	2	2	9	9
	Total logs	245	275	204	520	391
	Pay as cut timber sales	1	4	3	5	6
	Chip sales	3	2	4	5	10
	Timberlands exchanges	2	14	7	16	15
	Higher and better use land sales	3	5	5	8	9
	Minerals, oil and gas	8	9	7	17	14
	Products from international operations	22	22	29	44	54
	Other products	9	2	3	11	13
	Total	$ 293	$ 333	$ 262	$ 626	$ 512
Logs Third Party Sales Realizations (per cubic meter)	West	$ 105.38	$ 115.11	$ 94.47	$ 110.44	$ 96.59
	South	$ 43.47	$ 43.47	$ 41.15	$ 43.47	$ 40.83
	Canada	$ 36.61	$ 36.38	$ 34.66	$ 36.57	$ 36.00
	International	$ 24.01	$ 25.00	$ 23.53	$ 24.54	$ 23.26
Logs Third Party Sales Volumes (cubic meters, thousands)	West	1,674	1,812	1,551	3,486	2,859
	South	1,399	1,507	1,354	2,906	2,582
	Canada	204	38	54	242	259
	International	68	77	82	145	160
	Total	3,345	3,434	3,041	6,779	5,860
Logs Fee Harvest Volumes (cubic meters, thousands)	West	1,995	1,921	1,831	3,916	3,510
	South	2,833	2,828	2,788	5,661	5,502
	International	197	167	161	364	333
	Total	5,025	4,916	4,780	9.941	9.345

Weyerhaeuser Company		Wood Products Segment
Q2.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Sales to unaffiliated customers		$ 988	$ 1,065	$ 776	$ 2,053	$ 1,410
Intersegment sales		18	18	20	36	40
Total net sales		1,006	1,083	796	2,089	1,450
Cost of products sold		770	884	708	1,654	1,319
Gross margin		236	199	88	435	131
Selling expenses		26	24	21	50	42
General and administrative expenses		36	36	29	72	58
Research and development expenses		1	1	1	2	2
Charges for restructuring, closures and impairments		—	1	2	1	3
Other operating costs (income), net		(5)	1	(1)	(4)	4
Operating income		178	136	36	314	22
Interest income and other		—	—	—	—	1
Net contribution to earnings		$ 178	$ 136	$ 36	$ 314	$ 23

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

in millions		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Operating income		$ 178	$ 136	$ 36	$ 314	$ 22
Depreciation, depletion and amortization		31	31	33	62	67
Special items		—	—	(6)	—	(6)
Adjusted EBITDA, excluding special items*		$ 209	$ 167	$ 63	$ 376	$ 83
* Non-GAAP measure - see page 9 for definition.

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

		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Gain on sale of property		$ —	$ —	$ 6	$ —	$ 6
Total		$ —	$ —	$ 6	$ —	$ 6

Selected Segment Items

		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾		$ (194)	$ 75	$ 5	$ (119)	$ (107)
Cash spent for capital expenditures		$ (10)	$ (16)	$ (15)	$ (26)	$ (21)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Structural Lumber (board feet)	Third party net sales	$ 451	$ 502	$ 370	$ 953	$ 661
	Third party sales realizations	$ 440	$ 434	$ 350	$ 437	$ 332
	Third party sales volumes⁽¹⁾	1,025	1,156	1,056	2,181	1,993
	Production volumes	1,021	1,053	1,004	2,074	1,962
	Outside purchase volumes	102	77	47	179	79
Engineered Solid Section (cubic feet)	Third party net sales	$ 82	$ 84	$ 70	$ 166	$ 135
	Third party sales realizations	$ 1,850	$ 1,920	$ 1,789	$ 1,885	$ 1,809
	Third party sales volumes⁽¹⁾	4.4	4.4	3.9	8.8	7.5
	Production volumes	4.6	4.6	3.8	9.2	7.5
	Outside purchase volumes	0.9	0.4	0.2	1.3	1.2
Engineered I-joists (lineal feet)	Third party net sales	$ 56	$ 60	$ 49	$ 116	$ 90
	Third party sales realizations	$ 1,300	$ 1,358	$ 1,211	$ 1,330	$ 1,244
	Third party sales volumes⁽¹⁾	43	44	40	87	72
	Production volumes	44	42	37	86	71
	Outside purchase volumes	3	1	2	4	4
Oriented Strand Board (square feet 3/8')	Third party net sales	$ 236	$ 224	$ 138	$ 460	$ 249
	Third party sales realizations	$ 359	$ 332	$ 214	$ 345	$ 206
	Third party sales volumes⁽¹⁾	657	675	643	1,332	1,208
	Production volumes	662	663	626	1,325	1,227
	Outside purchase volumes	68	56	48	124	80
Softwood Plywood (square feet 3/8')	Third party net sales	$ 36	$ 41	$ 26	$ 77	$ 49
	Third party sales realizations	$ 370	$ 378	$ 332	$ 374	$ 321
	Third party sales volumes⁽¹⁾	99	108	81	207	154
	Production volumes	61	63	50	124	101
	Outside purchase volumes	42	33	29	75	54

⁽¹⁾Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

Weyerhaeuser Company		Cellulose Fibers Segment
Q2.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Total net sales		$ 474	$ 476	$ 459	$ 950	$ 932
Cost of products sold		424	394	404	818	811
Gross margin		50	82	55	132	121
Selling expenses		4	5	5	9	9
General and administrative expenses		20	21	17	41	37
Research and development expenses		2	2	2	4	4
Other operating income, net		(7)	(5)	(4)	(12)	(13)
Operating income		31	59	35	90	84
Interest income and other		—	(2)	1	(2)	—
Net contribution to earnings		$ 31	$ 57	$ 36	$ 88	$ 84

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

in millions		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Operating income		$ 31	$ 59	$ 35	$ 90	$ 84
Depreciation, depletion and amortization		39	39	36	78	73
Adjusted EBITDA, excluding special items*		$ 70	$ 98	$ 71	$ 168	$ 157
* Non-GAAP measure - see page 9 for definition.

Selected Segment Items

		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾		$ (7)	$ 12	$ 24	$ 5	$ 69
Cash spent for capital expenditures		$ (17)	$ (17)	$ (44)	$ (34)	$ (89)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Pulp (air-dry metric tons)	Third party net sales (millions)	$ 371	$ 369	$ 348	$ 740	$ 715
	Third party sales realizations	$ 796	$ 797	$ 819	$ 797	$ 819
	Third party sales volumes (thousands)	467	462	425	929	874
	Production volumes (thousands)	445	463	417	908	855
Liquid Packaging Board (tons)	Third party net sales (millions)	$ 85	$ 86	$ 90	$ 171	$ 173
	Third party sales realizations	$ 1,079	$ 1,079	$ 1,176	$ 1,079	$ 1,179
	Third party sales volumes (thousands)	78	81	76	159	146
	Production volumes (thousands)	78	77	78	155	143

Weyerhaeuser Company	Real Estate Segment
Q2.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Total net sales	$ 196	$ 267	$ 296	$ 463	$ 433
Cost of products sold	160	210	248	370	361
Gross margin	36	57	48	93	72
Selling expenses	18	23	19	41	34
General and administrative expenses	18	19	15	37	32
Charges for restructuring, closures and impairments	1	3	1	4	2
Other operating income, net	—	(1)	(1)	(1)	(1)
Operating income (loss)	(1)	13	14	12	5
Interest income and other	1	1	1	2	2
Net contribution to earnings	$ —	$ 14	$ 15	$ 14	$ 7

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

in millions	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Operating income (loss)	$ (1)	$ 13	$ 14	$ 12	$ 5
Depreciation, depletion and amortization	3	3	3	6	5
Capitalized interest included in cost of products sold	7	12	14	19	17
Adjusted EBITDA, excluding special items*	$ 9	$ 28	$ 31	$ 37	$ 27
* Non-GAAP measure - see page 9 for definition.

Selected Segment Items

	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Cash from operations	$ (71)	$ (56)	$ 43	$ (127)	$ 11
Cash spent for capital expenditures	$ (2)	$ (2)	$ —	$ (4)	$ (1)

Segment Statistics

	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Net sales:
Single-family housing	$ 183	$ 257	$ 190	$ 440	$ 321
Land	11	10	105	21	108
Other	2	—	1	2	4
Total net sales	$ 196	$ 267	$ 296	$ 463	$ 433
Single-family homes sold	820	943	764	1,763	1,461
Single-family homes closed	463	636	508	1,099	857
Single-family homes sold but not closed (backlog)	1,131	1,438	1,033	1,438	1,033
Single-family cancellation rate	12.2 %	14.6 %	15.4 %	13.5 %	12.9 %
Single-family buyer traffic	17,764	20,080	17,677	37,844	31,949
Single-family average price of homes closed (in thousands)	$ 394	$ 405	$ 374	$ 400	$ 375
Single-family gross margin⁽¹⁾	19.5 %	21.6 %	19.3 %	20.7 %	18.4 %
⁽¹⁾Single-family gross margin equals revenue less cost of sales and period costs.

Weyerhaeuser Company	Unallocated Items
Q2.2013 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	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Unallocated corporate function expenses	$ (3)	$ (3)	$ (3)	$ (6)	$ (9)
Unallocated share-based compensation	(7)	5	(1)	(2)	(6)
Unallocated pension & postretirement costs	(10)	(12)	(7)	(22)	(14)
Foreign exchange losses	(4)	(4)	(8)	(8)	(2)
Elimination of intersegment profit in inventory and LIFO	(24)	8	(2)	(16)	(14)
Other	(7)	(4)	35	(11)	65
Operating income (loss)	(55)	(10)	14	(65)	20
Interest income and other	9	10	9	19	19
Net contribution to earnings	$ (46)	$ —	$ 23	$ (46)	$ 39


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

in millions	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Operating income (loss)	$ (55)	$ (10)	$ 14	$ (65)	$ 20
Depreciation, depletion and amortization	3	4	7	7	12
Non-operating pension and postretirement costs	10	12	7	22	14
Special items	—	—	(51)	—	(89)
Capitalized interest included in cost of products sold	2	1	5	3	5
Adjusted EBITDA, excluding special items*	$ (40)	$ 7	$ (18)	$ (33)	$ (38)
* Non-GAAP measure - see below for definition.

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

	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Gain on postretirement plan amendment	$ —	$ —	$ 51	$ —	$ 103
Restructuring, impairments and other charges	—	—	—	—	(14)
Total	$ —	$ —	$ 51	$ —	$ 89

Unallocated Selected Items

	Q1.2013	Q2.2013	Q2.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾	$ (123)	$ 95	$ 68	$ (28)	$ (4)
Cash spent for capital expenditures	$ (1)	$ (2)	$ (1)	$ (3)	$ (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 excluding special items, as we define it, is operating income adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. Adjusted EBITDA excluding special items should not be considered in isolation from and is not intended to represent an alternative to our results computed under GAAP.