Weyerhaeuser Reports Third Quarter Results

-- Completed divestiture of homebuilding business with nearly $1 billion gain

-- Increased quarterly dividend by 32 percent and repurchased $130 million of common shares

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

News provided by

Oct 31, 2014, 03:05 ET

FEDERAL WAY, Wash., Oct. 31, 2014 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings to common shareholders of $1,153 million, or $2.15 per diluted share, on net sales from continuing operations of $1.9 billion. This compares with net earnings of $157 million, or 27 cents per diluted share, on net sales from continuing operations of $1.9 billion for the same period last year.

Third quarter earnings include $966 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $9 million from special items. Excluding these items, the company reported net earnings of $178 million, or 33 cents per diluted share for the third quarter. This compares with net earnings from continuing operations before special items of $136 million for the same period last year and $234 million for second quarter 2014.

"We increased our quarterly dividend by 32 percent and repurchased $130 million of common shares in the third quarter, demonstrating our strong commitment to returning cash to shareholders," said Doyle Simons, president and chief executive officer. "Our relentless focus on operational excellence resulted in another very good quarter for earnings and cash flow generation, as we continue to drive sustainable performance improvements in each of our businesses."


WEYERHAEUSER FINANCIAL HIGHLIGHTS	2014	2014	2013
(millions, except per share data)	2Q	3Q	3Q
Net sales from continuing operations	$1,964	$1,915	$1,857
Net earnings attributable to Weyerhaeuser common shareholders(1)	$280	$1,153	$157
Weighted average shares outstanding, diluted(2)	590	536	587
Earnings per diluted share	$0.47	$2.15	$0.27
Earnings per diluted share from continuing operations	$0.43	$0.35	$0.23
Net earnings from continuing operations before special items(3)	$234	$178	$136
Earnings per diluted share from continuing operations before special items	$0.40	$0.33	$0.23
Net change in cash and cash equivalents(4)	$68	$775	($966)
Cash and cash equivalents at end of period(5)	$845	$1,620	$1,392

(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 and repurchase of approximately 4 million common shares. At the end of the third quarter the company had approximately 525 million common shares outstanding.

(3) Special items for the second and third quarters of 2014 include gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative.

(4) Net change in cash and equivalents excludes discontinued operations for all quarters. Third quarter 2014 includes $707 million related to the divestiture of Weyerhaeuser Real Estate Company.

(5) Cash and cash equivalents excludes discontinued operations for all quarters. Third quarter 2013 includes cash and cash equivalents designated for the purchase of Longview Timber LLC and the repayment of their acquired debt.


TIMBERLANDS
FINANCIAL HIGHLIGHTS (millions)	2Q 2014	3Q 2014	Change
Net sales	$397	$364	($33)
Contribution to pre-tax earnings	$170	$136	($34)

3Q 2014 Performance - Sales volumes and realizations for Western logs declined due to seasonally softer domestic market conditions and reduced Chinese demand. In the South, log sales volumes increased and realizations improved slightly.

Earnings from disposition of non-strategic timberlands decreased by $5 million compared with the second quarter.

4Q 2014 Outlook - Weyerhaeuser anticipates lower earnings from the Timberlands segment in the fourth quarter, primarily due to reduced earnings from disposition of non-strategic timberlands. In the West, the company expects improved log realizations and increased road maintenance costs. In the South, Weyerhaeuser anticipates higher silviculture costs.


WOOD PRODUCTS
FINANCIAL HIGHLIGHTS (millions)	2Q 2014	3Q 2014	Change
Net sales	$1,077	$1,048	($29)
Contribution to pre-tax earnings	$102	$105	$3

3Q 2014 Performance - Average realizations for lumber and engineered wood products increased, and Western log costs declined. These improvements were largely offset by lower realizations for oriented strand board.

4Q 2014 Outlook - Weyerhaeuser expects earnings from the Wood Products segment in the fourth quarter to be significantly lower than the third quarter, and comparable to fourth quarter 2013. The company anticipates weaker realizations in lumber and oriented strand board, and seasonally lower sales volumes across all product lines.


CELLULOSE FIBERS
FINANCIAL HIGHLIGHTS (millions)	2Q 2014	3Q 2014	Change
Net sales	$490	$503	$13
Contribution to pre-tax earnings	$91	$59	($32)

3Q 2014 Performance - Maintenance costs increased as expected due to an extended planned outage at the company's liquid packaging board facility and additional maintenance outage days within the pulp mill system. These costs were partially offset by higher average price realizations for pulp and liquid packaging board and improved sales volumes.

4Q 2014 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the fourth quarter due to reduced maintenance expense.

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. Our company is a real estate investment trust. In 2013, our continuing operations generated $7.3 billion in sales and employed approximately 13,000 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 October 31 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 31.

To join the conference call from within North America, dial 877-296-9413 (access code: 23991084) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 23991084). Replays will be available for two weeks at 855-859-2056 (access code: 23991084) from within North America and at 404-537-3406 (access code: 23991084) 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 2014, including with respect to earnings, log realizations, road maintenance and silviculture costs, dispositions of non-strategic timberlands, sales volumes across the Wood Products product lines, realizations in lumber and oriented strand board, and maintenance expenses 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 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 - Beth Baum or Denise Merle (253) 924-2058
		Media - Anthony Chavez (253) 924-7148



Weyerhaeuser Company				Exhibit 99.2
Q3.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations

in millions	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Net Sales	$ 1,964	$ 1,915	$ 1,857	$ 5,615	$ 5,486
Cost of products sold	1,499	1,504	1,479	4,364	4,304
Gross margin	465	411	378	1,251	1,182
Selling expenses	27	28	32	83	96
General and administrative expenses	88	73	98	249	299
Research and development expenses	7	5	8	19	23
Charges for restructuring, closures and impairments	8	10	1	37	7
Other operating income, net	(65)	(23)	(4)	(163)	(32)
Operating income	400	318	243	1,026	789
Interest income and other	11	7	21	27	39
Interest expense, net of capitalized interest	(83)	(88)	(94)	(254)	(256)
Earnings from continuing operations before income taxes	328	237	170	799	572
Income taxes	(59)	(39)	(24)	(148)	(99)
Earnings from continuing operations	269	198	146	651	473
Earnings from discontinued operations, net of income taxes	22	966	21	998	36
Net earnings	291	1,164	167	1,649	509
Dividends on preference shares	(11)	(11)	(10)	(33)	(12)
Net earnings attributable to Weyerhaeuser common shareholders	$ 280	$ 1,153	$ 157	$ 1,616	$ 497

Per Share Information

	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations	$ 0.44	$ 0.35	$ 0.23	$ 1.09	$ 0.83
Discontinued operations	0.04	1.82	0.04	1.76	0.06
Net earnings per share	$ 0.48	$ 2.17	$ 0.27	$ 2.85	$ 0.89
Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations	$ 0.43	$ 0.35	$ 0.23	$ 1.08	$ 0.82
Discontinued operations	0.04	1.80	0.04	1.75	0.06
Net earnings per share	$ 0.47	$ 2.15	$ 0.27	$ 2.83	$ 0.88
Dividends paid per common share	$ 0.22	$ 0.29	$ 0.22	$ 0.73	$ 0.59
Weighted average shares outstanding (in thousands):
Basic	586,061	531,913	582,828	567,436	560,505
Diluted	589,766	536,012	587,179	571,503	565,383
Common shares outstanding at end of period (in thousands)	586,698	525,485	582,578	525,485	582,578

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

in millions	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Net earnings	$ 291	$ 1,164	$ 167	$ 1,649	$ 509
Earnings from discontinued operations, net of income taxes	(22)	(966)	(21)	(998)	(36)
Interest income and other	(11)	(7)	(21)	(27)	(39)
Interest expense, net of capitalized interest	83	88	94	254	256
Income taxes	59	39	24	148	99
Operating income	400	318	243	1,026	789
Depreciation, depletion and amortization	122	123	116	368	333
Non-operating pension and postretirement costs (credits)	(11)	(12)	11	(33)	31
Special items	(39)	(15)	—	(103)	—
Adjusted EBITDA*	$ 472	$ 414	$ 370	$ 1,258	$ 1,153
* Non-GAAP measure - see page 8 for definition.

Weyerhaeuser Company
Q3.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet

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

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


Weyerhaeuser Company
Q3.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows

in millions	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Cash flows from operations:
Net earnings	$ 291	$ 1,164	$ 167	$ 1,649	$ 509
Noncash charges (credits) to income:
Depreciation, depletion and amortization	126	123	120	375	343
Deferred income taxes, net	89	45	24	170	73
Pension and other postretirement benefits	(44)	(13)	27	(104)	79
Share-based compensation expense	11	9	12	29	34
Charges for impairment of assets	1	—	2	1	5
Net gains on dispositions of assets and operations	(21)	(1,002)	(21)	(1,048)	(42)
Foreign exchange transaction (gains) losses	(12)	13	(2)	15	6
Change in:
Receivables less allowances	(47)	20	8	(28)	(112)
Receivable for taxes	(3)	13	12	77	64
Inventories	34	8	36	(46)	—
Real estate and land	(35)	(26)	(58)	(133)	(179)
Prepaid expenses	(3)	6	(2)	6	(16)
Accounts payable and accrued liabilities	(17)	21	77	(76)	45
Deposits on land positions and other assets	(4)	7	(1)	15	(11)
Pension and postretirement contributions	(30)	(22)	(35)	(85)	(104)
Other	(14)	(13)	(23)	(33)	(38)
Net cash from operations	322	353	343	784	656

Cash flows from investing activities:
Property and equipment	(83)	(105)	(69)	(239)	(151)
Timberlands reforestation	(11)	(7)	(7)	(32)	(28)
Acquisition of Longview Timber LLC, net of cash acquired	—	—	(1,581)	—	(1,581)
Net proceeds from Real Estate Divestiture, net of cash divested	—	707	—	707	—
Proceeds from sale of assets	1	4	1	24	15
Net proceeds of investments held by special purpose entities	—	—	—	—	22
Other	—	25	9	25	5
Cash from investing activities	(93)	624	(1,647)	485	(1,718)

Cash flows from financing activities:
Net proceeds from issuance of common shares	—	—	116	—	897
Net proceeds from issuance of preference shares	—	—	—	—	669
Net proceeds from issuance of debt	—	—	494	—	494
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	(128)	(154)	(128)	(411)	(330)
Cash dividends on preference shares	(11)	(11)	—	(22)	—
Change in book overdrafts	—	(11)	1	(17)	8
Payments on debt	—	—	(163)	—	(340)
Exercises of stock options	39	30	9	84	141
Repurchase of common stock	—	(123)	—	(123)	—
Other	(1)	4	10	5	22
Cash from financing activities	(101)	(265)	339	(484)	1,561

Net change in cash and cash equivalents	128	712	(965)	785	499
Cash and cash equivalents at beginning of period	780	908	2,362	835	898
Cash and cash equivalents at end of period	$ 908	$ 1,620	$ 1,397	$ 1,620	$ 1,397
Cash paid (received) during the year for:
Interest, net of amount capitalized	$ 52	$ 100	$ 109	$ 253	$ 275
Income taxes	$ 5	$ 5	$ 2	$ (40)	$ (4)
Noncash investing and financing activity:
Acquisition of Longview Timber LLC, debt assumed	$ —	$ —	$ 1,070	$ —	$ 1,070
Common shares tendered in WRECO divestiture	$ —	$ 1,954	$ —	$ 1,954	$ —

Weyerhaeuser Company			Total Company Statistics
Q3.2014 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings

in millions	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Net earnings attributable to Weyerhaeuser common shareholders	$ 280	$ 1,153	$ 157	$ 1,616	$ 497
Restructuring, impairments and other charges	5	6	—	24	—
Gain on sale of non-strategic asset	—	—	—	(14)	—
Gain on postretirement plan amendment	(29)	(15)	—	(73)	—
Net earnings attributable to Weyerhaeuser common shareholders before special items	256	1,144	157	1,553	497
Earnings from discontinued operations, net of income taxes	(22)	(966)	(21)	(998)	(36)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items	$ 234	$ 178	$ 136	$ 555	$ 461

	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$ 0.47	$ 2.15	$ 0.27	$ 2.83	$ 0.88
Restructuring, impairments and other charges	0.01	0.01	—	0.04	—
Gain on sale of non-strategic asset	—	—	—	(0.02)	—
Gain on postretirement plan amendment	(0.04)	(0.03)	—	(0.13)	—
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	0.44	2.13	0.27	2.72	0.88
Earnings from discontinued operations, net of income taxes	(0.04)	(1.80)	(0.04)	(1.75)	(0.06)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items	$ 0.40	$ 0.33	$ 0.23	$ 0.97	$ 0.82

Selected Total Company Items

in millions	Q2	Q3		Year-to-date
	June 30, 2014	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Depreciation, depletion and amortization:
Cost of products sold	$ 117	$ 117	$ 110	$ 351	$ 315
Selling, general and administrative expenses	5	6	6	17	18
Total depreciation, depletion and amortization	$ 122	$ 123	$ 116	$ 368	$ 333

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 12	$ 11	$ 15	$ 33	$ 42
Pension and postretirement costs (credits) not allocated	(11)	(12)	11	(33)	31
Total company pension and postretirement costs	$ 1	$ (1)	$ 26	$ —	$ 73

Total decrease (increase) in working capital⁽¹⁾	$ 49	$ 106	$ 138	$ (15)	$ (35)
Cash spent for capital expenditures	$ (92)	$ (112)	$ (71)	$ (267)	$ (170)
⁽¹⁾Working capital does not include cash balances.


Weyerhaeuser Company				Timberlands Segment
Q3.2014 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Sales to unaffiliated customers		$ 397	$ 364	$ 353	$ 1,138	$ 979
Intersegment sales		186	218	194	642	584
Total net sales		583	582	547	1,780	1,563
Cost of products sold		399	432	407	1,262	1,167
Gross margin		184	150	140	518	396
Selling expenses		2	2	3	6	8
General and administrative expenses		23	23	27	72	77
Research and development expenses		3	4	4	11	13
Charges for restructuring, closures and impairments		—	1	—	1	2
Other operating income, net		(14)	(16)	(11)	(42)	(37)
Operating income		170	136	117	470	333
Interest income and other		—	—	1	—	3
Net contribution to earnings		$ 170	$ 136	$ 118	$ 470	$ 336

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

in millions		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Operating income		$ 170	$ 136	$ 117	$ 470	$ 333
Depreciation, depletion and amortization		51	51	45	154	115
Adjusted EBITDA*		$ 221	$ 187	$ 162	$ 624	$ 448
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾		$ (15)	$ 25	$ 31	$ (19)	$ —
Cash spent for capital expenditures		$ (18)	$ (19)	$ (16)	$ (56)	$ (52)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Third Party Net Sales (millions)	Logs:
	West	$ 261	$ 227	$ 213	$ 745	$ 598
	South	60	69	66	191	192
	Canada	1	5	6	12	15
	Total logs	322	301	285	948	805
	Chip sales	2	4	2	9	7
	Timberlands exchanges	28	17	28	49	44
	Higher and better use land sales	7	4	2	14	10
	Minerals, oil and gas	8	10	9	25	26
	Products from international operations	26	22	24	72	68
	Other products	4	6	3	21	19
	Total	$ 397	$ 364	$ 353	$ 1,138	$ 979
Logs Third Party Sales Realizations (per cubic meter)	West	$ 109.13	$ 102.23	$ 104.73	$ 108.64	$ 108.33
	South	$ 45.16	$ 45.30	$ 43.32	$ 45.12	$ 43.42
	Canada	$ 38.04	$ 37.75	$ 38.77	$ 36.65	$ 37.38
	International	$ 16.27	$ 19.95	$ 25.07	$ 17.88	$ 24.75
Logs Third Party Sales Volumes (cubic meters, thousands)	West	2,390	2,223	2,037	6,859	5,523
	South	1,339	1,500	1,514	4,224	4,420
	Canada	30	152	141	338	383
	International	139	170	100	456	245
	Total	3,898	4,045	3,792	11,877	10,571
Logs Fee Harvest Volumes (cubic meters, thousands)	West	2,888	2,656	2,305	8,419	6,221
	South	2,715	2,950	2,928	8,531	8,589
	International	249	232	211	730	575
	Total	5,852	5,838	5,444	17,680	15,385


Weyerhaeuser Company				Wood Products Segment
Q3.2014 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Sales to unaffiliated customers		$ 1,077	$ 1,048	$ 1,030	$ 3,023	$ 3,083
Intersegment sales		21	20	19	60	55
Total net sales		1,098	1,068	1,049	3,083	3,138
Cost of products sold		939	910	905	2,640	2,559
Gross margin		159	158	144	443	579
Selling expenses		23	22	24	70	74
General and administrative expenses		30	31	37	98	109
Research and development expenses		2	—	2	3	4
Charges for restructuring, closures and impairments		2	—	1	2	2
Other operating costs (income), net		—	—	1	(1)	(3)
Operating income		102	105	79	271	393
Interest income and other		—	—	—	—	—
Net contribution to earnings		$ 102	$ 105	$ 79	$ 271	$ 393

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

in millions		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Operating income		$ 102	$ 105	$ 79	$ 271	$ 393
Depreciation, depletion and amortization		30	30	31	89	93
Adjusted EBITDA*		$ 132	$ 135	$ 110	$ 360	$ 486
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾		$ 29	$ 41	$ 74	$ (67)	$ (45)
Cash spent for capital expenditures		$ (38)	$ (56)	$ (26)	$ (112)	$ (52)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Structural Lumber (board feet)	Third party net sales	$ 515	$ 500	$ 480	$ 1,442	$ 1,433
	Third party sales realizations	$ 427	$ 431	$ 404	$ 430	$ 425
	Third party sales volumes⁽¹⁾	1,206	1,162	1,189	3,357	3,370
	Production volumes	1,081	1,049	1,040	3,139	3,114
	Outside purchase volumes	82	91	92	251	271
Engineered Solid Section (cubic feet)	Third party net sales	$ 114	$ 104	$ 97	$ 308	$ 263
	Third party sales realizations	$ 1,976	$ 2,031	$ 1,963	$ 1,989	$ 1,913
	Third party sales volumes⁽¹⁾	5.8	5.1	4.9	15.5	13.7
	Production volumes	5.7	5.2	4.6	15.8	13.8
	Outside purchase volumes	0.5	—	0.3	2.3	1.6
Engineered I-joists (lineal feet)	Third party net sales	$ 81	$ 74	$ 68	$ 214	$ 184
	Third party sales realizations	$ 1,470	$ 1,540	$ 1,428	$ 1,489	$ 1,364
	Third party sales volumes⁽¹⁾	55	49	48	144	135
	Production volumes	55	50	44	149	130
	Outside purchase volumes	3	1	2	5	6
Oriented Strand Board (square feet 3/8')	Third party net sales	$ 159	$ 157	$ 188	$ 464	$ 648
	Third party sales realizations	$ 226	$ 215	$ 246	$ 223	$ 309
	Third party sales volumes⁽¹⁾	706	732	762	2,079	2,094
	Production volumes	681	717	725	2,055	2,050
	Outside purchase volumes	51	52	49	156	173
Softwood Plywood (square feet 3/8')	Third party net sales	$ 35	$ 42	$ 38	$ 107	$ 115
	Third party sales realizations	$ 348	$ 381	$ 344	$ 355	$ 364
	Third party sales volumes⁽¹⁾	102	110	108	302	315
	Production volumes	60	72	62	191	186
	Outside purchase volumes	36	31	40	100	115
⁽¹⁾Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.


Weyerhaeuser Company				Cellulose Fibers Segment
Q3.2014 Analyst Package
Preliminary results, subject to audit

Segment Statement of Operations

in millions		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Total net sales		$ 490	$ 503	$ 474	$ 1,454	$ 1,424
Cost of products sold		381	427	406	1,198	1,224
Gross margin		109	76	68	256	200
Selling expenses		4	3	5	11	14
General and administrative expenses		20	18	21	58	62
Research and development expenses		2	1	2	5	6
Other operating income, net		(8)	(6)	(6)	(23)	(18)
Operating income		91	60	46	205	136
Interest income and other		—	(1)	1	(1)	(1)
Net contribution to earnings		$ 91	$ 59	$ 47	$ 204	$ 135

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

in millions		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Operating income		$ 91	$ 60	$ 46	$ 205	$ 136
Depreciation, depletion and amortization		39	39	38	116	116
Adjusted EBITDA*		$ 130	$ 99	$ 84	$ 321	$ 252
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾		$ (37)	$ 39	$ 19	$ 33	$ 24
Cash spent for capital expenditures		$ (35)	$ (36)	$ (28)	$ (97)	$ (62)
⁽¹⁾Working capital does not include cash balances.

Segment Statistics

		Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Pulp (air-dry metric tons)	Third party net sales (millions)	$ 383	$ 408	$ 371	$ 1,154	$ 1,111
	Third party sales realizations	$ 845	$ 858	$ 805	$ 843	$ 799
	Third party sales volumes (thousands)	454	474	460	1,368	1,389
	Production volumes (thousands)	467	465	457	1,391	1,365
Liquid Packaging Board (tons)	Third party net sales (millions)	$ 87	$ 80	$ 83	$ 247	$ 254
	Third party sales realizations	$ 1,165	$ 1,185	$ 1,082	$ 1,157	$ 1,080
	Third party sales volumes (thousands)	75	68	76	214	235
	Production volumes (thousands)	79	57	67	214	222


Weyerhaeuser Company			Unallocated Items
Q3.2014 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	Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Unallocated corporate function expenses	$ (7)	$ (3)	$ (8)	$ (17)	$ (26)
Unallocated share-based compensation	(6)	1	(1)	(2)	(3)
Unallocated pension & postretirement credits (costs)	56	35	(11)	146	(31)
Foreign exchange gains (losses)	13	(14)	2	(16)	(6)
Elimination of intersegment profit in inventory and LIFO	(1)	12	25	(8)	9
Other	(18)	(14)	(5)	(23)	(16)
Operating income (loss)	37	17	2	80	(73)
Interest income and other	11	8	18	28	37
Net contribution to earnings from continuing operations⁽¹⁾	$ 48	$ 25	$ 20	$ 108	$ (36)
⁽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	Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Operating income (loss)	$ 37	$ 17	$ 2	$ 80	$ (73)
Depreciation, depletion and amortization	2	3	2	9	9
Non-operating pension and postretirement costs (credits)	(11)	(12)	11	(33)	31
Special items	(39)	(15)	—	(103)	—
Adjusted EBITDA*	$ (11)	$ (7)	$ 15	$ (47)	$ (33)
* Non-GAAP measure - see below for definition.

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

	Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Gain on postretirement plan amendment	$ 45	$ 23	$ —	$ 113	$ —
Restructuring, impairments and other charges	(6)	(8)	—	(32)	—
Gain on sale of non-strategic asset	—	—	—	22	—
Total	$ 39	$ 15	$ —	$ 103	$ —

Unallocated Selected Items

	Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Total decrease (increase) in working capital⁽¹⁾	$ 72	$ 1	$ 14	$ 38	$ (14)
Cash spent for capital expenditures	$ (1)	$ (1)	$ (1)	$ (2)	$ (4)
⁽¹⁾Working capital does not include cash balances.

*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and 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
Q3.2014 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	Q2.2014	Q3.2014	Q3.2013	YTD.2014	YTD.2013
Total net sales	$ 317	$ 8	$ 324	$ 573	$ 787
Income (loss) from operations	$ 27	$ (1)	$ 33	$ 42	$ 56
Income taxes	(5)	(5)	(12)	(16)	(20)
Net earnings (loss) from operations	22	(6)	21	26	36
Net gain on divestiture	—	972	—	972	—
Net earnings from discontinued operations	$ 22	$ 966	$ 21	$ 998	$ 36