Weyerhaeuser Reports Third Quarter Results

- Net earnings rise 34 percent compared with third quarter 2012 on 23 percent improvement in net sales

- Acquisition of Longview Timber LLC closed on July 23

News provided by

Oct 25, 2013, 03:05 ET

FEDERAL WAY, Wash., Oct. 25, 2013 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings to common shareholders of $157 million, or 27 cents per diluted share, for the third quarter. This compares with net earnings of $117 million, or 22 cents per diluted share, for the same period last year. Net sales for the third quarter of 2013 totaled $2.2 billion, compared with net sales of $1.8 billion for the third quarter of 2012.

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

"Solid operating results in the quarter contributed to a significant improvement in our year-over-year earnings," said Doyle Simons, president and chief executive officer. "In the quarter, we also closed on our previously announced acquisition of Longview Timber and are actively engaged in leveraging our silviculture, logistics and marketing expertise to realize the full potential of this valuable asset. We will continue to focus on improving performance in all of our businesses and generating additional value for our shareholders."


WEYERHAEUSER FINANCIAL HIGHLIGHTS	2013	2013	2012
(millions, except per share data)	2Q	3Q	3Q
Net sales	$2,141	$2,181	$1,772
Net earnings attributable to Weyerhaeuser common shareholders	$196	$157	$117
Weighted average shares outstanding, diluted⁽¹⁾	558	587	542
Earnings per diluted share	$0.35	$0.27	$0.22
Net cash from operations	$374	$343	$122
Net change in cash and cash equivalents⁽²⁾	$1,723	($965)	($253)
Cash and cash equivalents at end of period⁽²⁾	$2,362	$1,397	$608


⁽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. During the third quarter of 2013, the company issued an additional 4.35 million common shares in connection with the exercise of an overallotment option.

⁽²⁾	During the second and third quarters of 2013, Weyerhaeuser received $2,060 million from the issuance of debt and 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 and the repayment of their acquired debt" on the Consolidated Balance Sheet. During the third quarter of 2013, the company used a portion of these funds to complete the acquisition of Longview Timber LLC. Subsequent to the end of the third quarter, the company used the remaining funds for repayment of Longview Timber indebtedness assumed in the acquisition.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	2Q 2013	3Q 2013	Change
Net sales to unaffiliated customers	$333	$353	$20
Intersegment sales	166	194	28
Total net sales	$499	$547	$48
Contribution to earnings	$114	$118	$4

3Q 2013 Performance – Seasonally lower earnings from the company's legacy Western timberlands were largely offset by a partial quarter of earnings from the Longview Timber acquisition and improved earnings from Southern timberlands. Earnings from disposition of non-strategic timberlands also increased.

In the West, selling prices declined across domestic and export markets, and road and silviculture expenses increased. Seasonally lower fee harvest from legacy Western timberlands was more than offset by a partial quarter of harvest from the Longview Timber acquisition. Southern log realizations were comparable to the second quarter, and fee harvest volumes rose seasonally.

4Q 2013 Outlook - Weyerhaeuser anticipates comparable earnings from the Timberlands segment in the fourth quarter. In the West, the company expects improved domestic log prices and increased fee harvest volumes due to a full quarter of harvest from the Longview Timber acquisition. In the South, Weyerhaeuser anticipates seasonally higher silviculture costs, partially offset by increased fee harvest volumes. The company also expects slightly lower earnings from disposition of non-strategic timberlands.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)	2Q 2013	3Q 2013	Change
Net sales to unaffiliated customers	$1,065	$1,030	($35)
Intersegment sales	18	19	1
Total net sales	$1,083	$1,049	($34)
Contribution to earnings	$136	$79	($57)

3Q 2013 Performance - Average selling prices for oriented strand board declined 26 percent compared with the second quarter, and selling prices for lumber fell 7 percent. These declines were partially offset by improved average selling prices for engineered wood products, higher sales volumes across all product lines, and lower Western log costs.

4Q 2013 Outlook - Weyerhaeuser anticipates lower earnings from the Wood Products segment in the fourth quarter due to seasonally weaker sales volumes and higher log costs.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)	2Q 2013	3Q 2013	Change
Net sales	$476	$474	($2)
Contribution to earnings	$57	$47	($10)

3Q 2013 Performance - Costs associated with completion of a scheduled annual maintenance outage for liquid packaging operations were higher than anticipated. Fiber costs rose due to wet weather in the South, and chemical costs also increased. These factors more than offset a slight improvement in average pulp price realizations due to mix.

4Q 2013 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the fourth quarter. The company anticipates modestly higher average pulp sales realizations and volumes, lower chemical costs, improved productivity for liquid packaging operations, and slightly lower maintenance expense.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)	2Q 2013	3Q 2013	Change
Net sales	$267	$324	$57
Contribution to earnings	$14	$33	$19

3Q 2013 Performance - Home closings increased seasonally to 768 single-family homes and average margins on homes closed improved, primarily due to mix. Third quarter results include earnings of $9 million from land and lot sales, compared with earnings of $2 million in the second quarter.

At the end of the third quarter the backlog of homes sold, but not closed, totaled 1,435 units, compared with 1,055 units one year ago.

4Q 2013 Outlook - Weyerhaeuser expects significantly higher earnings from single-family homebuilding in the fourth quarter. Single-family closing volumes should increase to over 1,100 homes. The company anticipates higher average closing prices and higher selling-related expenses due to the additional closing volumes.

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 Oct. 25 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on Oct. 25.

To join the conference call from within North America, dial 877-296-9413 (access code – 86490025) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86490025). Replays will be available for two weeks at 855-859-2056 (access code – 86490025) from within North America and at 404-537-3406 (access code – 86490025) 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 fourth quarter of 2013, including with respect to earnings, domestic and export log prices, fee harvest levels and realizations, silviculture costs, dispositions of non-strategic timberlands, average selling prices and sales volumes across the Wood Products product lines, average sales realizations and volumes for pulp and liquid packaging board, chemical and maintenance costs, productivity for liquid packaging operations, single-family closing volumes, average home closing prices and mix, and selling-related expenses.

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
Q3.2013 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations

in millions	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012

Net Sales	$ 2,141	$ 2,181	$ 1,772	$ 6,273	$ 5,059
Cost of products sold	1,664	1,728	1,424	4,925	4,230
Gross margin	477	453	348	1,348	829
Selling expenses	54	56	49	161	138
General and administrative expenses	108	112	107	338	310
Research and development expenses	8	8	8	23	23
Charges for restructuring, closures and impairments	6	2	10	12	26
Other operating income, net	(10)	(2)	(28)	(30)	(147)
Operating income	311	277	202	844	479
Interest income and other	10	21	15	42	38
Interest expense, net of capitalized interest	(81)	(95)	(87)	(258)	(260)
Earnings before income taxes	240	203	130	628	257
Income taxes	(42)	(36)	(13)	(119)	(15)
Net earnings	198	167	117	509	242
Dividends on preference shares	(2)	(10)	—	(12)	—
Net earnings attributable to Weyerhaeuser common shareholders	$ 196	$ 157	$ 117	$ 497	$ 242

Per Share Information

	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012

Basic earnings per share attributable to Weyerhaeuser common shareholders	$ 0.35	$ 0.27	$ 0.22	$ 0.89	$ 0.45
Diluted earnings per share attributable to Weyerhaeuser common shareholders	$ 0.35	$ 0.27	$ 0.22	$ 0.88	$ 0.45
Dividends paid per common share	$ 0.20	$ 0.22	$ 0.15	$ 0.59	$ 0.45
Weighted average shares outstanding (in thousands):
Basic	552,855	582,828	539,094	560,505	538,146
Diluted	557,588	587,179	542,311	565,383	540,694
Common shares outstanding at end of period (in thousands)	577,874	582,578	540,672	582,578	540,672

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

in millions	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012

Net earnings	$ 198	$ 167	$ 117	$ 509	$ 242
Interest income and other	(10)	(21)	(15)	(42)	(38)
Interest expense, net of capitalized interest	81	95	87	258	260
Income taxes	42	36	13	119	15
Operating income	311	277	202	844	479
Depreciation, depletion and amortization	111	120	112	343	338
Non-operating pension and postretirement costs	10	11	7	31	21
Special items	—	—	—	—	(95)
Capitalized interest included in cost of products sold	13	10	6	32	28
Adjusted EBITDA, excluding special items*	$ 445	$ 418	$ 327	$ 1,250	$ 771
* Non-GAAP measure


Weyerhaeuser Company
Q3.2013 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet

in millions	June 30, 2013	September 30, 2013	December 31, 2012
	June 30, 2013	September 30, 2013	December 31, 2012
ASSETS
Forest Products:
Current assets:
Cash and cash equivalents	$ 908	$ 898	$ 893
Receivables, less allowances	589	586	474
Receivables for taxes	43	31	95
Inventories	561	533	531
Prepaid expenses	96	114	83
Deferred tax assets	144	113	65
Restricted financial investments held by variable interest entities	—	—	184
Total current assets	2,341	2,275	2,325
Property and equipment, net	2,706	2,709	2,859
Construction in progress	72	101	50
Timber and timberlands at cost, less depletion charged to disposals	3,949	6,603	3,961
Cash and cash equivalents designated for the purchase of Longview Timber LLC and the repayment of their acquired debt	1,450	494	—
Investments in and advances to equity affiliates	186	186	192
Goodwill	42	42	40
Deferred tax assets	64	66	189
Other assets	349	325	358
Restricted financial investments held by variable interest entities	615	615	615
	11,774	13,416	10,589
Real Estate:
Cash and cash equivalents	4	5	5
Receivables, less allowances	74	77	72
Real estate in process of development and for sale	783	851	682
Land being processed for development	940	932	927
Investments in and advances to equity affiliates	20	20	21
Deferred tax assets	201	195	202
Other assets	112	113	94
	2,134	2,193	2,003
Total assets	$ 13,908	$ 15,609	$ 12,592

LIABILITIES AND EQUITY
Forest Products:
Current liabilities:
Notes payable	$ 2	$ 2	$ —
Current maturities of long-term debt	163	—	340
Current maturities of long-term debt (nonrecourse to the company) held by variable interest entities	—	—	161
Accounts payable	341	362	329
Accrued liabilities	573	623	570
Total current liabilities	1,079	987	1,400
Long-term debt	3,842	5,459	3,842
Long-term debt (nonrecourse to the company) held by variable interest entities	511	511	511
Deferred income taxes	38	44	—
Deferred pension and other postretirement benefits	1,785	1,727	1,930
Other liabilities	446	438	499
	7,701	9,166	8,182
Real Estate:
Long-term debt	109	109	109
Long-term debt (nonrecourse to the company) held by variable interest entities	4	5	1
Other liabilities	188	212	187
	301	326	297
Total liabilities	8,002	9,492	8,479
Equity:
Total Weyerhaeuser shareholders' interest	5,868	6,078	4,070
Noncontrolling interests	38	39	43
Total equity	5,906	6,117	4,113
Total liabilities and equity	$ 13,908	$ 15,609	$ 12,592



Weyerhaeuser Company
Q3.2013 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows

in millions	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012
Cash flows from operations:
Net earnings	$ 198	$ 167	$ 117	$ 509	$ 242
Noncash charges (credits) to income:
Depreciation, depletion and amortization	111	120	112	343	338
Deferred income taxes, net	23	24	62	73	69
Pension and other postretirement benefits	28	27	19	79	(39)
Share-based compensation expense	10	12	10	34	28
Charges for impairment of assets	2	2	7	5	19
Net gains on dispositions of assets	(14)	(21)	(22)	(42)	(39)
Foreign exchange transaction (gains) losses	4	(2)	(10)	6	(8)
Change in:
Receivables less allowances	45	8	(10)	(112)	(33)
Receivable for taxes	22	12	(91)	64	(75)
Inventories	32	36	(22)	—	(34)
Real estate and land	(62)	(58)	(47)	(179)	(95)
Prepaid expenses	(1)	(2)	2	(16)	(18)
Accounts payable and accrued liabilities	34	77	14	45	23
Deposits on land positions and other assets	(9)	(1)	(11)	(11)	11
Pension and postretirement contributions	(32)	(35)	(41)	(104)	(109)
Other	(17)	(23)	33	(38)	49
Net cash from operations	374	343	122	656	329

Cash flows from investing activities:
Property and equipment	(47)	(69)	(75)	(151)	(197)
Timberlands reforestation	(8)	(7)	(5)	(28)	(22)
Acquisition of Longview Timber LLC, net of cash acquired	—	(1,581)	—	(1,581)	—
Proceeds from sale of assets	8	1	12	15	36
Proceeds of investments (payments of liabilities) held by special purpose entities	22	—	(97)	22	(97)
Other	(4)	9	(1)	5	(1)
Cash from investing activities	(29)	(1,647)	(166)	(1,718)	(281)

Cash flows from financing activities:
Net proceeds from issuance of common shares⁽¹⁾	781	116	—	897	—
Net proceeds from issuance of preference shares⁽¹⁾	669	—	—	669	—
Net proceeds from issuance of debt⁽¹⁾	—	494	—	494	—
Cash dividends on common shares	(109)	(128)	(81)	(330)	(242)
Change in book overdrafts	4	1	(12)	8	(32)
Payments on debt	(21)	(163)	(181)	(340)	(187)
Exercises of stock options	51	9	66	141	73
Other	3	10	(1)	22	(5)
Cash from financing activities	1,378	339	(209)	1,561	(393)

Net change in cash and cash equivalents	1,723	(965)	(253)	499	(345)
Cash and cash equivalents at beginning of period	639	2,362	861	898	953
Cash and cash equivalents at end of period	$ 2,362	$ 1,397	$ 608	$ 1,397	$ 608
Cash paid (received) during the year for:
Interest, net of amount capitalized	$ 55	$ 109	$ 122	$ 275	$ 290
Income taxes	$ (4)	$ 2	$ 1	$ (4)	$ (14)
Noncash investing and financing activity: acquisition of Longview Timber LLC, debt assumed	$ —	$ 1,070	$ —	$ 1,070	$ —


⁽¹⁾During second and third quarter 2013, we received $2,060 million in cash related to the issuance of common shares, mandatory convertible preference shares and debt 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 and the repayment of their acquired debt" on our Consolidated Balance Sheet.



	Total Company Statistics
Weyerhaeuser Company
Q3.2013 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings

in millions	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012
Net earnings attributable to Weyerhaeuser common shareholders	$ 196	$ 157	$ 117	$ 497	$ 242
Restructuring, impairments and other charges	—	—	—	—	10
Gain on postretirement plan amendment	—	—	—	—	(67)
Tax settlements	—	—	—	—	(8)
Gain on sale of property	—	—	—	—	(4)
Net earnings attributable to Weyerhaeuser common shareholders before special items	$ 196	$ 157	$ 117	$ 497	$ 173

	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012

Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$ 0.35	$ 0.27	$ 0.22	$ 0.88	$ 0.45
Restructuring, impairments and other charges	—	—	—	—	0.02
Gain on postretirement plan amendment	—	—	—	—	(0.12)
Tax settlements	—	—	—	—	(0.02)
Gain on sale of property	—	—	—	—	(0.01)
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	$ 0.35	$ 0.27	$ 0.22	$ 0.88	$ 0.32

Selected Total Company Items

in millions	Q2	Q3		Year-to-date
	June 30, 2013	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012

Depreciation, depletion and amortization:
Cost of products sold	$ 102	$ 110	$ 102	$ 315	$ 307
Selling, general and administrative expenses	9	10	10	28	31
Total depreciation, depletion and amortization	$ 111	$ 120	$ 112	$ 343	$ 338

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 16	$ 16	$ 12	$ 46	$ 39
Pension and postretirement costs not allocated	10	11	7	31	21
Total company pension and postretirement costs	$ 26	$ 27	$ 19	$ 77	$ 60

Total decrease (increase) in Forest Products working capital⁽¹⁾	$ 161	$ 138	$ (29)	$ (35)	$ (74)
Cash spent for capital expenditures	$ (55)	$ (76)	$ (80)	$ (179)	$ (219)

⁽¹⁾Working capital does not include cash balances.




Weyerhaeuser Company		Timberlands Segment
Q3.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Sales to unaffiliated customers		$ 333	$ 353	$ 267	$ 979	$ 779
Intersegment sales		166	194	162	584	498
Total net sales		499	547	429	1,563	1,277
Cost of products sold		365	407	336	1,167	1,002
Gross margin		134	140	93	396	275
Selling expenses		2	3	3	8	7
General and administrative expenses		25	27	21	77	65
Research and development expenses		5	4	4	13	13
Charges for restructuring, closures and impairments		—	—	—	2	—
Other operating income, net		(11)	(11)	(14)	(37)	(35)
Operating income		113	117	79	333	225
Interest income and other		1	1	1	3	2
Net contribution to earnings		$ 114	$ 118	$ 80	$ 336	$ 227

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

in millions		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Operating income		$ 113	$ 117	$ 79	$ 333	$ 225
Depreciation, depletion and amortization		34	45	35	115	104
Adjusted EBITDA, excluding special items*		$ 147	$ 162	$ 114	$ 448	$ 329
* Non-GAAP measure

Selected Segment Items

		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾		$ (21)	$ 31	$ 19	$ —	$ 16
Cash spent for capital expenditures		$ (18)	$ (16)	$ (17)	$ (52)	$ (44)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Third Party Net Sales (millions)	Logs:
	West	$ 208	$ 213	$ 132	$ 598	$ 408
	South	65	66	60	192	166
	Canada	2	6	5	15	14
	Total logs	275	285	197	805	588
	Pay as cut timber sales	4	2	3	7	9
	Chip sales	2	2	4	7	14
	Timberlands exchanges	14	28	24	44	39
	Higher and better use land sales	5	2	4	10	13
	Minerals, oil and gas	9	9	8	26	22
	Products from international operations	22	24	26	68	80
	Other products	2	1	1	12	14
	Total	$ 333	$ 353	$ 267	$ 979	$ 779
Logs Third Party Sales Realizations (per cubic meter)	West	$ 115.11	$ 104.73	$ 89.28	$ 108.33	$ 94.09
	South	$ 43.47	$ 43.32	$ 42.04	$ 43.42	$ 41.26
	Canada	$ 36.38	$ 38.77	$ 35.23	$ 37.38	$ 35.74
	International	$ 25.00	$ 25.07	$ 23.76	$ 24.75	$ 23.45
Logs Third Party Sales Volumes (cubic meters, thousands)	West	1,812	2,037	1,480	5,523	4,339
	South	1,507	1,514	1,430	4,420	4,012
	Canada	38	141	133	383	392
	International	77	100	99	245	259
	Total	3,434	3,792	3,142	10,571	9,002
Logs Fee Harvest Volumes (cubic meters, thousands)	West	1,921	2,305	1,784	6,221	5,294
	South	2,828	2,928	2,809	8,589	8,311
	International	167	415	198	779	531
	Total	4,916	5,648	4,791	15,589	14,136



Wood Products Segment
Weyerhaeuser Company
Q3.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Sales to unaffiliated customers		$ 1,065	$ 1,030	$ 816	$ 3,083	$ 2,226
Intersegment sales		18	19	18	55	58
Total net sales		1,083	1,049	834	3,138	2,284
Cost of products sold		884	905	713	2,559	2,032
Gross margin		199	144	121	579	252
Selling expenses		24	24	23	74	65
General and administrative expenses		36	37	31	109	89
Research and development expenses		1	2	2	4	4
Charges for restructuring, closures and impairments		1	1	2	2	5
Other operating costs (income), net		1	1	4	(3)	8
Operating income		136	79	59	393	81
Interest income and other		—	—	—	—	1
Net contribution to earnings		$ 136	$ 79	$ 59	$ 393	$ 82

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

in millions		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Operating income		$ 136	$ 79	$ 59	$ 393	$ 81
Depreciation, depletion and amortization		31	31	33	93	100
Special items		—	—	—	—	(6)
Adjusted EBITDA, excluding special items*		$ 167	$ 110	$ 92	$ 486	$ 175
* Non-GAAP measure

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

		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Gain on sale of property		$ —	$ —	$ —	$ —	$ 6
Total		$ —	$ —	$ —	$ —	$ 6

Selected Segment Items

		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾		$ 75	$ 74	$ (21)	$ (45)	$ (128)
Cash spent for capital expenditures		$ (16)	$ (26)	$ (16)	$ (52)	$ (37)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Structural Lumber (board feet)	Third party net sales	$ 502	$ 480	$ 363	$ 1,433	$ 1,024
	Third party sales realizations	$ 434	$ 404	$ 359	$ 425	$ 341
	Third party sales volumes⁽¹⁾	1,156	1,189	1,013	3,370	3,006
	Production volumes	1,053	1,040	945	3,114	2,907
	Outside purchase volumes	77	92	69	271	148
Engineered Solid Section (cubic feet)	Third party net sales	$ 84	$ 97	$ 76	$ 263	$ 211
	Third party sales realizations	$ 1,920	$ 1,963	$ 1,800	$ 1,913	$ 1,806
	Third party sales volumes⁽¹⁾	4.4	4.9	4.2	13.7	11.7
	Production volumes	4.6	4.6	4.3	13.8	11.8
	Outside purchase volumes	0.4	0.3	0.4	1.6	1.6
Engineered I-joists (lineal feet)	Third party net sales	$ 60	$ 68	$ 53	$ 184	$ 143
	Third party sales realizations	$ 1,358	$ 1,428	$ 1,248	$ 1,364	$ 1,246
	Third party sales volumes⁽¹⁾	44	48	43	135	115
	Production volumes	42	44	39	130	110
	Outside purchase volumes	1	2	3	6	7
Oriented Strand Board (square feet 3/8')	Third party net sales	$ 224	$ 188	$ 169	$ 648	$ 418
	Third party sales realizations	$ 332	$ 246	$ 268	$ 309	$ 227
	Third party sales volumes⁽¹⁾	675	762	630	2,094	1,838
	Production volumes	663	725	642	2,050	1,869
	Outside purchase volumes	56	49	60	173	140
Softwood Plywood (square feet 3/8')	Third party net sales	$ 41	$ 38	$ 34	$ 115	$ 83
	Third party sales realizations	$ 378	$ 344	$ 356	$ 364	$ 334
	Third party sales volumes⁽¹⁾	108	108	95	315	249
	Production volumes	63	62	54	186	155
	Outside purchase volumes	33	40	39	115	93


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




Weyerhaeuser Company		Cellulose Fibers Segment
Q3.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Total net sales		$ 476	$ 474	$ 459	$ 1,424	$ 1,391
Cost of products sold		394	406	364	1,224	1,175
Gross margin		82	68	95	200	216
Selling expenses		5	5	4	14	13
General and administrative expenses		21	21	19	62	56
Research and development expenses		2	2	2	6	6
Other operating income, net		(5)	(6)	(5)	(18)	(18)
Operating income		59	46	75	136	159
Interest income and other		(2)	1	3	(1)	3
Net contribution to earnings		$ 57	$ 47	$ 78	$ 135	$ 162

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

in millions		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Operating income		$ 59	$ 46	$ 75	$ 136	$ 159
Depreciation, depletion and amortization		39	38	37	116	110
Adjusted EBITDA, excluding special items*		$ 98	$ 84	$ 112	$ 252	$ 269
* Non-GAAP measure

Selected Segment Items

		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾		$ 12	$ 19	$ (20)	$ 24	$ 49
Cash spent for capital expenditures		$ (17)	$ (28)	$ (45)	$ (62)	$ (134)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Pulp (air-dry metric tons)	Third party net sales (millions)	$ 369	$ 371	$ 354	$ 1,111	$ 1,069
	Third party sales realizations	$ 797	$ 805	$ 818	$ 799	$ 818
	Third party sales volumes (thousands)	462	460	432	1,389	1,306
	Production volumes (thousands)	463	457	453	1,365	1,308
Liquid Packaging Board (tons)	Third party net sales (millions)	$ 86	$ 83	$ 84	$ 254	$ 257
	Third party sales realizations	$ 1,079	$ 1,082	$ 1,155	$ 1,080	$ 1,171
	Third party sales volumes (thousands)	81	76	74	235	220
	Production volumes (thousands)	77	67	77	222	220




Weyerhaeuser Company	Real Estate Segment
Q3.2013 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Total net sales	$ 267	$ 324	$ 230	$ 787	$ 663
Cost of products sold	210	248	175	618	536
Gross margin	57	76	55	169	127
Selling expenses	23	24	19	65	53
General and administrative expenses	19	20	17	57	49
Charges for restructuring, closures and impairments	3	1	3	5	5
Other operating income, net	(1)	(1)	—	(2)	(1)
Operating income	13	32	16	44	21
Interest income and other	1	1	1	3	3
Net contribution to earnings	$ 14	$ 33	$ 17	$ 47	$ 24

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

in millions	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Operating income	$ 13	$ 32	$ 16	$ 44	$ 21
Depreciation, depletion and amortization	3	4	3	10	8
Capitalized interest included in cost of products sold	12	9	5	28	22
Adjusted EBITDA, excluding special items*	$ 28	$ 45	$ 24	$ 82	$ 51
* Non-GAAP measure

Selected Segment Items

	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Cash from operations	$ (56)	$ (2)	$ (24)	$ (129)	$ (13)
Cash spent for capital expenditures	$ (2)	$ (5)	$ (1)	$ (9)	$ (2)

Segment Statistics

	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Net sales:
Single-family housing	$ 257	$ 305	$ 229	$ 745	$ 550
Land	10	18	1	39	109
Other	—	1	—	3	4
Total net sales	$ 267	$ 324	$ 230	$ 787	$ 663
Single-family homes sold	943	765	637	2,528	2,098
Single-family homes closed	636	768	615	1,867	1,472
Single-family homes sold but not closed (backlog)	1,438	1,435	1,055	1,435	1,055
Single-family cancellation rate	14.6 %	15.7 %	18.3 %	14.2 %	14.6 %
Single-family buyer traffic	20,080	16,370	17,894	54,214	49,843
Single-family average price of homes closed (in thousands)	$ 405	$ 397	$ 372	$ 399	$ 374
Single-family gross margin⁽¹⁾	21.6 %	22.3 %	23.3 %	21.4 %	20.5 %


⁽¹⁾Single-family gross margin equals revenue less cost of sales and period costs.




Weyerhaeuser Company				Unallocated Items
Q3.2013 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	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Unallocated corporate function expenses	$ (3)	$ (2)	$ (5)	$ (8)	$ (14)
Unallocated share-based compensation	5	(1)	(7)	(3)	(13)
Unallocated pension & postretirement costs	(10)	(11)	(7)	(31)	(21)
Foreign exchange gains (losses)	(4)	2	11	(6)	9
Elimination of intersegment profit in inventory and LIFO	8	25	(10)	9	(24)
Other	(6)	(10)	(9)	(23)	56
Operating income (loss)	(10)	3	(27)	(62)	(7)
Interest income and other	10	18	10	37	29
Net contribution to earnings	$ —	$ 21	$ (17)	$ (25)	$ 22


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

in millions	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Operating income (loss)	$ (10)	$ 3	$ (27)	$ (62)	$ (7)
Depreciation, depletion and amortization	4	2	4	9	16
Non-operating pension and postretirement costs	10	11	7	31	21
Special items	—	—	—	—	(89)
Capitalized interest included in cost of products sold	1	1	1	4	6
Adjusted EBITDA, excluding special items*	$ 5	$ 17	$ (15)	$ (18)	$ (53)
* Non-GAAP measure - see below for definition.

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

	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Gain on postretirement plan amendment	$ —	$ —	$ —	$ —	$ 103
Restructuring, impairments and other charges	—	—	—	—	(14)
Total	$ —	$ —	$ —	$ —	$ 89

Unallocated Selected Items

	Q2.2013	Q3.2013	Q3.2012	YTD.2013	YTD.2012
Total decrease (increase) in working capital⁽¹⁾	$ 95	$ 14	$ (7)	$ (14)	$ (11)
Cash spent for capital expenditures	$ (2)	$ (1)	$ (1)	$ (4)	$ (2)
⁽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.