Weyerhaeuser Reports Third Quarter Results

- 35 percent increase in earnings compared with second quarter

- Increased quarterly dividend 7 percent

- Completed $700 million share repurchase program announced in 2014, authorized new $500 million program

News provided by

Oct 30, 2015, 03:05 ET

Weyerhaeuser Company logo.

FEDERAL WAY, Wash., Oct. 30, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings to common shareholders of $180 million, or 35 cents per diluted share. This compares with net earnings of $133 million, or 26 cents per diluted share, for second quarter 2015 and net earnings from continuing operations before special items of $178 million, or 33 cents per diluted share, for the same period last year. Third quarter 2014 net earnings of $1,153 million, or $2.15 per diluted share, included after-tax gains of $975 million from discontinued operations and special items, primarily related to the divestiture of Weyerhaeuser Real Estate Company.

Net sales for the third quarter 2015 totaled $1.8 billion, compared with net sales of $1.8 billion for the second quarter, and $1.9 billion for the third quarter 2014.

"I am very pleased with our third quarter performance, as each of our businesses leveraged operational excellence improvements to drive strong results despite market and global macroeconomic headwinds," said Doyle R. Simons, president and chief executive officer. "In addition, we delivered on our ongoing commitment to return cash to shareholders by increasing our quarterly dividend by 7 percent and have completed the $700 million share repurchase authorized in 2014. We remain relentlessly focused on driving value for our shareholders and fully capitalizing on an improving US housing market."

WEYERHAEUSER FINANCIAL HIGHLIGHTS	2015	2015	2014
(millions, except per share data)	2Q	3Q	3Q
Net sales from continuing operations	$1,807	$1,820	$1,915
Net earnings attributable to Weyerhaeuser common shareholders⁽¹⁾	$133	$180	$1,153
Weighted average shares outstanding, diluted	520	517	536
Earnings per diluted share	$0.26	$0.35	$2.15
Earnings per diluted share from continuing operations	$0.26	$0.35	$0.35
Net earnings from continuing operations before special items⁽²⁾	$133	$180	$178
Earnings per diluted share from continuing operations before special items	$0.26	$0.35	$0.33
Cash and cash equivalents at end of period⁽³⁾	$1,121	$1,048	$1,620


⁽¹⁾	Third quarter 2014 includes net earnings from discontinued operations of $966 million, primarily related to the gain on the divestiture of Weyerhaeuser Real Estate Company.
⁽²⁾	There were no special items for the second or third quarter of 2015. Special items for the third quarter of 2014 includes gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative.
⁽³⁾	Cash and cash equivalents at the end of the period exclude discontinued operations.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	2Q 2015	3Q 2015	Change
Net sales	$336	$326	($10)
Contribution to pre-tax earnings	$127	$126	($1)

3Q 2015 Performance - In the West, fee harvest volumes declined due to fire season logging constraints and log sales realizations decreased due to a shift in mix from export to domestic markets. In the South, higher fee harvest volumes were offset by seasonally higher silviculture costs. Earnings from the disposition of non-strategic timberlands increased by $8 million compared with the second quarter.

4Q 2015 Outlook - Weyerhaeuser expects comparable earnings from the Timberlands segment in the fourth quarter. In the West, the company expects slightly higher fee harvest volumes and improved mix primarily due to increased shipments to Japan. In the South, the company anticipates comparable fee harvest volumes and higher logging costs.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)	2Q 2015	3Q 2015	Change
Net sales	$1,004	$1,023	$19
Contribution to pre-tax earnings	$71	$85	$14

3Q 2015 Performance - Sales volumes increased across most product lines, Western log costs declined, and manufacturing costs improved. Higher average sales realizations for oriented strand board were more than offset by lower average sales realizations for lumber.

4Q 2015 Outlook - Weyerhaeuser expects significantly lower earnings from the Wood Products segment in the fourth quarter. The company anticipates seasonally lower sales volumes, reduced operating rates, and additional planned maintenance primarily in oriented strand board. The company also expects lower average sales realizations for lumber and higher average sales realizations for oriented strand board.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)	2Q 2015	3Q 2015	Change
Net sales	$467	$471	$4
Contribution to pre-tax earnings	$27	$79	$52

3Q 2015 Performance - Maintenance costs decreased significantly and production increased due to minimal scheduled maintenance outage days. Input costs declined, offset by lower average sales realizations for pulp and liquid packaging board.

4Q 2015 Outlook - Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the fourth quarter. The company anticipates lower average pulp sales realizations, increased scheduled maintenance, and seasonally higher fiber costs.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products. Our company is a real estate investment trust. In 2014, our continuing operations generated $7.4 billion in sales and employed approximately 12,800 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live webcast and conference call at 7 a.m. Pacific (10 a.m. Eastern) on October 30 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 30.

To join the conference call from within North America, dial 877-296-9413 (access code: 28175672) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28175672). Replays will be available for one week at 855-859-2056 (access code: 28175672) from within North America and at 404-537-3406 (access code: 28175672) 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 our current expectations and various assumptions that are subject to risks and uncertainties. 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, expectations 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 and similar words.

This release contains forward-looking statements regarding the company's expectations during the fourth quarter of 2015, including with respect to: earnings; harvest and shipment volumes, and costs in Timberlands; sales volumes, operating rates, planned maintenance, and average sales realizations in Wood Products; and pulp sales realizations, fiber costs, and scheduled maintenance in Cellulose Fibers.

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

Weyerhaeuser Company				Exhibit 99.2
Q3.2015 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations

in millions	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Net Sales	$ 1,807	$ 1,820	$ 1,915	$ 5,348	$ 5,615
Cost of products sold	1,474	1,445	1,504	4,304	4,364
Gross margin	333	375	411	1,044	1,251
Selling expenses	28	27	28	83	83
General and administrative expenses	71	60	73	205	249
Research and development expenses	6	6	5	17	19
Charges for restructuring, closures and impairments	—	2	10	16	37
Other operating costs (income), net	(15)	21	(23)	21	(163)
Operating income	243	259	318	702	1,026
Interest income and other	2	4	7	9	27
Interest expense, net of capitalized interest	(88)	(88)	(88)	(259)	(254)
Earnings from continuing operations before income taxes	157	175	237	452	799
Income tax (expense) benefit	(13)	16	(39)	(16)	(148)
Earnings from continuing operations	144	191	198	436	651
Earnings from discontinued operations, net of income taxes	—	—	966	—	998
Net earnings	144	191	1,164	436	1,649
Add: net loss attributable to noncontrolling interests	—	—	—	—	—
Dividends on preference shares	(11)	(11)	(11)	(33)	(33)
Net earnings attributable to Weyerhaeuser common shareholders	$ 133	$ 180	$ 1,153	$ 403	$ 1,616

Per Share Information

	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations	$ 0.26	$ 0.35	$ 0.35	$ 0.78	$ 1.09
Discontinued operations	—	—	1.82	—	1.76
Net earnings per share	$ 0.26	$ 0.35	$ 2.17	$ 0.78	$ 2.85
Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations	$ 0.26	$ 0.35	$ 0.35	$ 0.77	$ 1.08
Discontinued operations	—	—	1.80	—	1.75
Net earnings per share	$ 0.26	$ 0.35	$ 2.15	$ 0.77	$ 2.83
Dividends paid per common share	$ 0.29	$ 0.31	$ 0.29	$ 0.89	$ 0.73
Weighted average shares outstanding (in thousands):
Basic	516,626	514,301	531,913	518,121	567,436
Diluted	519,804	517,088	536,012	521,455	571,503
Common shares outstanding at end of period (in thousands)	514,121	511,033	525,485	511,033	525,485

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

in millions	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Net earnings	$ 144	$ 191	$ 1,164	$ 436	$ 1,649
Earnings from discontinued operations, net of income taxes	—	—	(966)	—	(998)
Interest income and other	(2)	(4)	(7)	(9)	(27)
Interest expense, net of capitalized interest	88	88	88	259	254
Income tax expense (benefit)	13	(16)	39	16	148
Operating income	243	259	318	702	1,026
Depreciation, depletion and amortization	118	118	123	359	368
Non-operating pension and postretirement credits	(3)	(2)	(12)	(8)	(33)
Special items	—	—	(15)	13	(103)
Adjusted EBITDA*	$ 358	$ 375	$ 414	$ 1,066	$ 1,258
* Non-GAAP measure - see page 8 for definition.

Weyerhaeuser Company
Q3.2015 Analyst Package
Preliminary results (unaudited)
Consolidated Balance Sheet

in millions	June 30, 2015	September 30, 2015	December 31, 2014
	June 30, 2015	September 30, 2015	December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$ 1,121	$ 1,048	$ 1,580
Receivables, less allowances	537	545	525
Receivables for taxes	12	14	25
Inventories	603	590	595
Prepaid expenses	82	87	80
Deferred tax assets	162	218	228
Total current assets	2,517	2,502	3,033
Property and equipment, net	2,557	2,484	2,623
Construction in progress	171	231	131
Timber and timberlands at cost, less depletion charged to disposals	6,531	6,507	6,530
Investments in and advances to equity affiliates	176	174	188
Goodwill	40	40	40
Deferred tax assets	2	—	8
Other assets	274	267	289
Restricted financial investments held by variable interest entities	615	615	615
Total assets	$ 12,883	$ 12,820	$ 13,457

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$ 343	$ 344	$ 331
Accrued liabilities	576	554	587
Total current liabilities	919	898	918
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	196	259	206
Deferred pension and other postretirement benefits	1,166	1,106	1,319
Other liabilities	275	277	308
Total liabilities	7,958	7,942	8,153
Total equity	4,925	4,878	5,304
Total liabilities and equity	$ 12,883	$ 12,820	$ 13,457

Weyerhaeuser Company
Q3.2015 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows

in millions	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Cash flows from operations:
Net earnings	$ 144	$ 191	$ 1,164	$ 436	$ 1,649
Noncash charges (credits) to income:
Depreciation, depletion and amortization	118	118	123	359	375
Deferred income taxes, net	3	(6)	45	10	170
Pension and other postretirement benefits	11	11	(13)	32	(104)
Share-based compensation expense	8	6	9	22	29
Charges for impairment of assets	—	1	—	14	1
Net gains on dispositions of assets	(5)	(9)	(1,002)	(30)	(1,048)
Foreign exchange transaction (gains) losses	(8)	20	13	41	15
Change in:
Receivables less allowances	(10)	(15)	20	(41)	(28)
Receivable for taxes	12	(3)	13	11	77
Inventories	42	6	8	(9)	(46)
Real estate and land	—	—	(26)	—	(133)
Prepaid expenses	9	—	6	(2)	6
Accounts payable and accrued liabilities	66	(22)	21	(47)	(76)
Deposits on land positions and other assets	—	—	7	—	15
Pension and postretirement contributions	(19)	(20)	(22)	(59)	(85)
Other	(5)	4	(13)	(12)	(33)
Net cash from operations	366	282	353	725	784

Cash flows from investing activities:
Property and equipment	(99)	(106)	(105)	(276)	(239)
Timberlands reforestation	(9)	(6)	(7)	(33)	(32)
Acquisition of timberlands	—	(2)	—	(34)	—
Net proceeds from Real Estate Divestiture, net of cash divested	—	—	707	—	707
Proceeds from sale of assets	4	1	4	7	24
Other	12	—	25	12	25
Cash from investing activities	(92)	(113)	624	(324)	485

Cash flows from financing activities:
Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt	—	—	—	—	887
Deposit of WRECO debt proceeds into escrow	—	—	—	—	(887)
Cash dividends on common shares	(149)	(159)	(154)	(460)	(411)
Cash dividends on preference shares	(11)	(11)	(11)	(22)	(22)
Change in book overdrafts	—	—	(11)	—	(17)
Payments on debt	—	—	—	—	—
Exercises of stock options	4	4	30	29	84
Repurchase of common stock	(154)	(77)	(123)	(484)	(123)
Other	(1)	1	4	4	5
Cash from financing activities	(311)	(242)	(265)	(933)	(484)

Net change in cash and cash equivalents	(37)	(73)	712	(532)	785
Cash and cash equivalents at beginning of period	1,158	1,121	908	1,580	835
Cash and cash equivalents at end of period	$ 1,121	$ 1,048	$ 1,620	$ 1,048	$ 1,620
Cash paid (received) during the year for:
Interest, net of amount capitalized	$ 58	$ 118	$ 100	$ 290	$ 253
Income taxes	$ 4	$ (1)	$ 5	$ 4	$ (40)

Weyerhaeuser Company			Total Company Statistics
Q3.2015 Analyst Package
Preliminary results (unaudited)
Special Items Included in Net Earnings

in millions	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Net earnings attributable to Weyerhaeuser common shareholders	$ 133	$ 180	$ 1,153	$ 403	$ 1,616
Restructuring, impairments and other charges	—	—	6	9	24
Gain on sale of non-strategic asset	—	—	—	—	(14)
Gain on postretirement plan amendment	—	—	(15)	—	(73)
Net earnings attributable to Weyerhaeuser common shareholders before special items	133	180	1,144	412	1,553
Earnings from discontinued operations, net of income taxes	—	—	(966)	—	(998)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items	$ 133	$ 180	$ 178	$ 412	$ 555

	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$ 0.26	$ 0.35	$ 2.15	$ 0.77	$ 2.83
Restructuring, impairments and other charges	—	—	0.01	0.02	0.04
Gain on sale of non-strategic asset	—	—	—	—	(0.02)
Gain on postretirement plan amendment	—	—	(0.03)	—	(0.13)
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	0.26	—	2.13	0.79	2.72
Earnings from discontinued operations, net of income taxes	—	—	(1.80)	—	(1.75)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items	$ 0.26	$ 0.35	$ 0.33	$ 0.79	$ 0.97

Selected Total Company Items

in millions	Q2	Q3		Year-to-date
	June 30, 2015	September 30, 2015	September 30, 2014	September 30, 2015	September 30, 2014
Depreciation, depletion and amortization:
Cost of products sold	$ 116	$ 116	$ 117	$ 350	$ 351
Selling, general and administrative expenses	2	2	6	9	17
Total depreciation, depletion and amortization	$ 118	$ 118	$ 123	$ 359	$ 368

Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$ 14	$ 13	$ 11	$ 40	$ 33
Pension and postretirement credits not allocated	(3)	(2)	(12)	(8)	(33)
Total company pension and postretirement costs	$ 11	$ 11	$ (1)	$ 32	$ —

Total decrease (increase) in working capital(1)	$ 161	$ (79)	$ 106	$ (25)	$ (15)
Cash spent for capital expenditures	$ (108)	$ (112)	$ (112)	$ (309)	$ (267)
(1) Working capital does not include cash balances.

Weyerhaeuser Company				Timberlands Segment
Q3.2015 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Sales to unaffiliated customers		$ 336	$ 326	$ 364	$ 1,013	$ 1,138
Intersegment sales		187	210	218	625	642
Total net sales		523	536	582	1,638	1,780
Cost of products sold		385	401	432	1,191	1,262
Gross margin		138	135	150	447	518
Selling expenses		1	1	2	4	6
General and administrative expenses		21	21	23	64	72
Research and development expenses		4	3	4	10	11
Charges for restructuring, closures and impairments		—	—	1	—	1
Other operating income, net		(15)	(16)	(16)	(46)	(42)
Operating income		127	126	136	415	470
Interest income and other		—	—	—	—	—
Net contribution to earnings		$ 127	$ 126	$ 136	$ 415	$ 470

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

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Operating income		$ 127	$ 126	$ 136	$ 415	$ 470
Depreciation, depletion and amortization		51	51	51	155	154
Adjusted EBITDA*		$ 178	$ 177	$ 187	$ 570	$ 624
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Total decrease (increase) in working capital(1)		$ 52	$ (12)	$ 25	$ 14	$ (19)
Cash spent for capital expenditures		$ (17)	$ (17)	$ (19)	$ (58)	$ (56)
(1) Working capital does not include cash balances.

Segment Statistics

		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Third Party Net Sales (millions)	Logs:
	West	$ 221	$ 196	$ 227	$ 627	$ 745
	South	58	64	69	180	191
	Canada	3	6	5	17	12
	Total logs	282	266	301	824	948
	Chip sales	4	4	4	12	9
	Timberlands exchanges	5	12	17	42	49
	Higher and better use land sales	3	4	4	9	14
	Minerals, oil and gas	5	7	10	19	25
	Products from international operations	25	20	22	69	72
	Other products	12	13	6	38	21
	Total	$ 336	$ 326	$ 364	$ 1,013	$ 1,138
Logs Third Party Sales Realizations (per cubic meter)	West	$ 94.70	$ 93.44	$ 102.23	$ 95.63	$ 108.64
	South	$ 45.20	$ 45.96	$ 45.30	$ 45.51	$ 45.12
	Canada	$ 35.43	$ 35.50	$ 37.75	$ 35.15	$ 36.65
	International	$ 22.63	$ 18.71	$ 19.95	$ 20.29	$ 17.88
Logs Third Party Sales Volumes (cubic meters, thousands)	West	2,330	2,104	2,223	6,554	6,859
	South	1,295	1,396	1,500	3,962	4,224
	Canada	75	159	152	479	338
	International	179	175	170	504	456
	Total	3,879	3,834	4,045	11,499	11,877
Logs Fee Harvest Volumes (cubic meters, thousands)	West	2,811	2,666	2,656	8,388	8,419
	South	2,912	3,008	2,950	8,652	8,531
	International	219	200	232	658	730
	Total	5,942	5,874	5,838	17,698	17,680

Weyerhaeuser Company				Wood Products Segment
Q3.2015 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Sales to unaffiliated customers		$ 1,004	$ 1,023	$ 1,048	$ 2,950	$ 3,023
Intersegment sales		22	20	20	61	60
Total net sales		1,026	1,043	1,068	3,011	3,083
Cost of products sold		903	914	910	2,646	2,640
Gross margin		123	129	158	365	443
Selling expenses		23	23	22	69	70
General and administrative expenses		26	21	31	74	98
Research and development expenses		1	1	—	2	3
Charges for restructuring, closures and impairments		—	1	—	1	2
Other operating costs (income), net		2	(2)	—	1	(1)
Operating income		71	85	105	218	271
Interest income and other		—	—	—	—	—
Net contribution to earnings		$ 71	$ 85	$ 105	$ 218	$ 271

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

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Operating income		$ 71	$ 85	$ 105	$ 218	$ 271
Depreciation, depletion and amortization		27	26	30	79	89
Adjusted EBITDA*		$ 98	$ 111	$ 135	$ 297	$ 360
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Total decrease (increase) in working capital(1)		$ 42	$ 23	$ 41	$ (34)	$ (67)
Cash spent for capital expenditures		(60)	(60)	(56)	(165)	(112)
(1) Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Structural Lumber (board feet)	Third party net sales	$ 450	$ 455	$ 500	$ 1,339	$ 1,442
	Third party sales realizations	$ 383	$ 372	$ 431	$ 385	$ 430
	Third party sales volumes(1)	1,175	1,224	1,162	3,474	3,357
	Production volumes	1,087	1,087	1,049	3,217	3,139
	Outside purchase volumes	98	92	91	279	251
Engineered Solid Section (cubic feet)	Third party net sales	$ 113	$ 116	$ 104	$ 323	$ 308
	Third party sales realizations	$ 2,032	$ 2,043	$ 2,031	$ 2,016	$ 1,989
	Third party sales volumes(1)	5.6	5.6	5.1	16	15.5
	Production volumes	5.6	5.2	5.2	15.8	15.8
	Outside purchase volumes	—	—	—	—	2.3
Engineered I-joists (lineal feet)	Third party net sales	$ 76	$ 79	$ 74	$ 216	$ 214
	Third party sales realizations	$ 1,502	$ 1,520	$ 1,540	$ 1,511	$ 1,489
	Third party sales volumes(1)	50	52	49	143	144
	Production volumes	48	50	50	141	149
	Outside purchase volumes	1	2	1	4	5
Oriented Strand Board (square feet 3/8')	Third party net sales	$ 147	$ 151	$ 157	$ 435	$ 464
	Third party sales realizations	$ 191	$ 194	$ 215	$ 194	$ 223
	Third party sales volumes(1)	771	778	732	2,249	2,079
	Production volumes	700	746	717	2,150	2,055
	Outside purchase volumes	82	77	52	223	156
Softwood Plywood (square feet 3/8')	Third party net sales	$ 36	$ 33	$ 42	$ 102	$ 107
	Third party sales realizations	$ 354	$ 330	$ 381	$ 349	$ 355
	Third party sales volumes(1)	101	100	110	290	302
	Production volumes	63	67	72	191	191
	Outside purchase volumes	27	27	31	91	100


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

Weyerhaeuser Company				Cellulose Fibers Segment
Q3.2015 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Total net sales		$ 467	$ 471	$ 503	$ 1,385	$ 1,454
Cost of products sold		417	371	427	1,182	1,198
Gross margin		50	100	76	203	256
Selling expenses		4	3	3	10	11
General and administrative expenses		17	16	18	50	58
Research and development expenses		1	2	1	5	5
Other operating income, net		(6)	(5)	(6)	(19)	(23)
Operating income		34	84	60	157	205
Interest income and other		(7)	(5)	(1)	(18)	(1)
Net contribution to earnings		$ 27	$ 79	$ 59	$ 139	$ 204

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

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Operating income		$ 34	$ 84	$ 60	$ 157	$ 205
Depreciation, depletion and amortization		38	39	39	116	116
Adjusted EBITDA*		$ 72	$ 123	$ 99	$ 273	$ 321
* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

in millions		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Total decrease (increase) in working capital(1)		$ 6	$ (24)	$ 39	$ 22	$ 33
Cash spent for capital expenditures		(31)	(27)	(36)	(85)	(97)
(1) Working capital does not include cash balances.

Segment Statistics

		Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Pulp (air-dry metric tons)	Third party net sales (millions)	$ 368	$ 383	$ 408	$ 1,111	$ 1,154
	Third party sales realizations	$ 823	$ 818	$ 858	$ 831	$ 843
	Third party sales volumes (thousands)	448	468	474	1,337	1,368
	Production volumes (thousands)	422	477	465	1,341	1,391
Liquid Packaging Board (metric tons)	Third party net sales (millions)	$ 84	$ 74	$ 80	$ 232	$ 247
	Third party sales realizations	$ 1,218	$ 1,168	$ 1,307	$ 1,194	$ 1,275
	Third party sales volumes (thousands)	69	63	62	194	194
	Production volumes (thousands)	64	68	53	192	195

Weyerhaeuser Company				Unallocated Items
Q3.2015 Analyst Package
Preliminary results (unaudited)

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	Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Unallocated corporate function expenses	$ (7)	$ (4)	$ (3)	$ (20)	$ (17)
Unallocated share-based compensation	1	6	1	10	(2)
Unallocated pension & postretirement credits	3	2	35	8	146
Foreign exchange gains (losses)	9	(20)	(14)	(40)	(16)
Elimination of intersegment profit in inventory and LIFO	18	3	12	9	(8)
Other	(13)	(23)	(14)	(55)	(23)
Operating income (loss)	11	(36)	17	(88)	80
Interest income and other	9	9	8	27	28
Net contribution to earnings from continuing operations(1)	$ 20	$ (27)	$ 25	$ (61)	$ 108

(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	Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Operating income (loss)	$ 11	$ (36)	$ 17	$ (88)	$ 80
Depreciation, depletion and amortization	2	2	3	9	9
Non-operating pension and postretirement credits	(3)	(2)	(12)	(8)	(33)
Special items	—	—	(15)	13	(103)
Adjusted EBITDA*	$ 10	$ (36)	$ (7)	$ (74)	$ (47)
* Non-GAAP measure - see below for definition.

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

in millions	Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Gain on postretirement plan amendment	$ —	$ —	$ 23	$ —	$ 113
Restructuring, impairments and other charges	—	—	(8)	(13)	(32)
Gain on sale of non-strategic asset	—	—	—	—	22
Total	$ —	$ —	$ 15	$ (13)	$ 103

Unallocated Selected Items

in millions	Q2.2015	Q3.2015	Q3.2014	YTD.2015	YTD.2014
Total decrease (increase) in working capital(1)	$ 61	$ (66)	$ 1	$ (132)	$ 38
Cash spent for capital expenditures	$ —	$ —	$ (1)	$ (1)	$ (2)
(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.