Weyerhaeuser Reports Second Quarter Results

FEDERAL WAY, Wash., July 27, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $84 million for the second quarter, or 16 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $10 million on net sales from continuing operations of $1.6 billion for the same period last year.

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

Earnings for the second quarter of 2012 include after-tax gains of $37 million from special items. Excluding these items, the company reported net earnings of $47 million, or 9 cents per diluted share. This compares with net earnings before special items of $32 million, or 6 cents per diluted share, in the second quarter of 2011.

"We are seeing signs of a rebound in the U.S. housing market, and as markets strengthen, the operational improvements within our Wood Products business are yielding clear results," said Dan Fulton, president and chief executive officer. "Our ongoing work to improve performance across all businesses is positioning us to capture the full benefit of the market recovery as it unfolds."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2012



2012



2011


(millions, except per share data)

1Q



2Q



2Q


Net sales from continuing operations

$1,494



$1,793



$1,610








Net earnings (1)

$41



$84



$10


Weighted average shares outstanding, diluted

540



540



541


Earnings per diluted share (1)

$0.08



$0.16



$0.02








Net earnings before special items

$9



$47



$32


Earnings per diluted share before special items

$0.02



$0.09



$0.06








Net cash from operations

($60)



$267



$114


Net change in cash and cash equivalents

($225)



$133



($582)


Cash and cash equivalents at end of period

$728



$861



$881








(1) The second quarter of 2011 included a net loss of $13 million from discontinued operations, or ($0.02) per diluted share, on net sales of $163 million. Discontinued operations include Weyerhaeuser's hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter of 2011.

Weyerhaeuser began reporting elimination of intersegment profit on inventory and the LIFO reserve as part of Unallocated Items during second quarter 2012. Previously these company-level adjustments were recorded in the business segments. This change provides a better understanding of business segment operating results. For consistency, segment contributions to pre-tax earnings for prior periods have been adjusted to classify these amounts as part of Unallocated Items. There was no change to Weyerhaeuser's consolidated net earnings.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

1Q 2012



2Q 2012



Change


Net sales

$250



$262



$12


Contribution to pre-tax earnings

$70



$77



$7


2Q 2012 Performance - The segment's earnings increased $7 million compared with the first quarter, primarily due to seasonally higher fee harvest in the West and South and increased demand for domestic and export logs. Average selling prices for export logs declined, and domestic prices for Western and Southern logs rose slightly.

3Q 2012 Outlook - Weyerhaeuser expects comparable earnings from the Timberlands segment in the third quarter. The company expects higher earnings from the disposition of non-strategic timberlands, partially offset by lower domestic selling prices for Western logs and a decline in Southern log price realizations due to mix.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

1Q 2012



2Q 2012



Change


Net sales

$634



$776



$142


Contribution (charge) to pre-tax earnings before special items

(13)



30



$43


Pre-tax special items



6



6


GAAP contribution (charge) to pre-tax earnings

($13)



$36



$49


2Q 2012 Performance - Results before special items improved $43 million compared with the first quarter, primarily due to higher selling prices for lumber and oriented strand board and operational improvements. Lumber prices increased 13 percent, and prices for oriented strand board improved 9 percent. Sales volumes increased substantially.

Special items for the second quarter include a $6 million pre-tax gain on the sale of property.

3Q 2012 Outlook - Weyerhaeuser anticipates lower earnings from the Wood Products segment in the third quarter. The company expects comparable sales volumes for most products and seasonally lower selling prices for lumber.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

1Q 2012



2Q 2012



Change


Net sales

$473



$459



($14)


Contribution to pre-tax earnings

$48



$36



($12)


2Q 2012 Performance - The segment's earnings declined $12 million. Average selling prices for pulp were approximately flat compared with first quarter. Planned maintenance costs increased and sales volumes declined due to timing of shipments and reduced pulp production resulting from operational issues experienced during the quarter. First and second quarter each included two scheduled annual maintenance outages.

3Q 2012 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the third quarter. The company anticipates improved productivity, lower annual maintenance expense, and reduced chemical, energy and fiber costs, partially offset by slightly lower selling prices for pulp.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

1Q 2012



2Q 2012



Change


Net sales

$137



$296



$159


Contribution (charge) to pre-tax earnings

($8)



$15



$23


2Q 2012 Performance - The segment's earnings improved $23 million compared with the first quarter. Home closings increased seasonally to 508 single-family homes, and average margins on homes closed improved to nearly 20 percent due to mix. Second quarter results include earnings of $12 million from the sale of land and lots, compared with $1 million from the sale of lots in the first quarter.

At the end of the second quarter the backlog of homes sold, but not closed, totaled 1,033 units, a 53 percent increase compared with one year ago.

3Q 2012 Outlook - Weyerhaeuser expects slightly higher earnings from single-family homebuilding operations in the third quarter. The company anticipates seasonally higher home closings, partially offset by slightly lower average selling prices due to mix and slightly higher selling expenses due to the additional closing volume.

OTHER ITEMS

Special items for the second quarter include a pre-tax gain of $51 million from postretirement plan amendments. Weyerhaeuser expects no future gains related to these benefit changes, which were effective June 30, 2012.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest forest products companies, began operations in 1900. We grow and harvest trees, build homes and make a range of forest products essential to everyday lives. We manage our timberland on a sustainable basis in compliance with internationally recognized forestry standards. At the end of 2011, we employed approximately 12,800 employees in 11 countries. We have customers worldwide and generated $6.2 billion in sales from continuing operations in 2011. Our 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 July 27 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 27.

To join the conference call from within North America, dial 877-296-9413 (access code – 41406958) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 41406958). Replays will be available for one week at 855-859-2056 (access code – 41406958) from within North America and at 404-537-3406 (access code – 41406958) from outside North America.

The webcast is available to both institutional and individual investors through the Thomson StreetEvents Network. Individual investors can listen to the call at www.fulldisclosure.com, Thomson's individual investor portal. Institutional investors can access the call via Thomson's password-protected site at www.streetevents.com.

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 for the third quarter of 2012, including slightly lower export log realizations, lower domestic selling prices for Western logs, somewhat lower Southern log price realizations, higher earnings from the disposition of non-strategic timberlands, and comparable earnings from the Timberlands segment; flat to slightly lower sales volumes, seasonally softer sales realizations, increased log costs in Canada, flat log costs in the South, declining log costs in the West, and solidly profitable results from the Wood Products segment; weaker selling prices for pulp, higher pulp sales volumes, improved productivity, lower annual maintenance expense, reduced chemical and energy and fiber costs, slightly higher freight expense, and significantly higher earnings from the Cellulose Fibers segment; and higher home closing volume, slightly lower average selling prices, gross margins of approximately 20 percent, increased selling expenses, and increased earnings from single-family homebuilding operations in the Real Estate segment.

Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:

  • the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar;
  • market demand for the company's products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
  • performance of the company's manufacturing operations, including maintenance requirements;
  • the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
  • the level of competition from domestic and foreign producers;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • raw material prices;
  • energy prices;
  • transportation costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation;
  • changes in accounting principles; and
  • other factors described under "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q.

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

For more information contact:


Analysts - Kathryn McAuley (253) 924-2058



Media - Anthony Chavez (253) 924-7148




















Exhibit 99.2

Weyerhaeuser Company









Q2.2012 Analyst Package









Preliminary results, subject to audit









Consolidated Statement of Operations











in millions

Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Net sales and revenues

$             1,494


$         1,793


$         1,610


$         3,287


$         3,032

Cost of products sold

1,290


1,516


1,343


2,806


2,520

Gross margin

204


277


267


481


512

Selling, general and administrative expenses

150


142


145


292


317

Research and development expenses

7


8


7


15


14

Charges for restructuring, closures and impairments

12


4


7


16


11

Other operating income, net

(66)


(53)


(19)


(119)


(193)

Operating income

101


176


127


277


363

Interest income and other

12


11


9


23


20

Interest expense, net of capitalized interest

(87)


(86)


(117)


(173)


(210)

Earnings from continuing operations before income taxes

26


101


19


127


173

Income taxes

15


(17)


4


(2)


(52)

Earnings from continuing operations

41


84


23


125


121

Loss from discontinued operations, net of income taxes

-


-


(13)


-


(12)

Net earnings attributable to Weyerhaeuser common shareholders

$                  41


$               84


$               10


$             125


$             109











Per Share Information







Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Earnings (loss) per share attributable to Weyerhaeuser common shareholders, basic and diluted:










Continuing operations

$                0.08


$             0.16


$             0.04


$             0.23


$             0.22

Discontinued operations

-


-


(0.02)


-


(0.02)

Net earnings per share

$                0.08


$             0.16


$             0.02


$             0.23


$             0.20

Dividends paid per share

$                0.15


$             0.15


$             0.15


$             0.30


$             0.30

Weighted average shares outstanding (in thousands):










Basic

537,368


537,966


538,599


537,667


537,873

Diluted

539,728


540,033


541,095


539,880


540,790

Common shares outstanding at end of period (in thousands)

537,409


537,526


538,640


537,526


538,640











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











in millions

Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Operating income

$                101


$             176


$             127


$             277


$             363

Depreciation, depletion and amortization

113


113


118


226


239

Special items

(38)


(57)


-


(95)


(152)

Capitalized interest included in cost of products sold

3


19


7


22


12

EBITDA, excluding special items*

$                179


$             251


$             252


$             430


$             462




























Weyerhaeuser Company






Q2.2012 Analyst Package






Preliminary results, subject to audit






Consolidated Balance Sheet







in millions

March 31, 2012


June 30, 2012


December 31, 2011


ASSETS






Forest Products:






Current assets:






Cash and cash equivalents

$                 726


$              857


$                       950

Receivables, less allowances

503


494


490

Inventories

517


487


476

Prepaid expenses

80


86


68

Deferred tax assets

113


100


81

Total current assets

1,939


2,024


2,065

Property and equipment, net

2,829


2,770


2,901

Construction in progress

192


208


145

Timber and timberlands at cost, less depletion charged to disposals

3,970


3,963


3,978

Investments in and advances to equity affiliates

189


187


192

Goodwill

40


40


40

Other assets

442


435


444

Restricted assets held by special purpose entities

914


916


916


10,515


10,543


10,681

Real Estate:






Cash and cash equivalents

2


4


3

Receivables, less allowances

30


38


41

Real estate in process of development and for sale

606


581


555

Land being processed for development

943


959


936

Investments in and advances to equity affiliates

19


20


21

Deferred tax assets

246


238


240

Other assets

113


89


113

Consolidated assets not owned

-


3


8


1,959


1,932


1,917

Total assets

$            12,474


$          12,475


$                  12,598







LIABILITIES AND EQUITY






Forest Products:






Current liabilities:






Current maturities of long-term debt

$                 167


$              184


$                         12

Accounts payable

343


360


336

Accrued liabilities

536


576


593

Total current liabilities

1,046


1,120


941

Long-term debt

4,026


4,005


4,181

Deferred income taxes

108


92


93

Deferred pension and other postretirement benefits

1,470


1,429


1,467

Other liabilities

407


400


408

Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities

775


778


776


7,832


7,824


7,866

Real Estate:






Long-term debt

283


283


285

Other liabilities

154


171


172

Consolidated liabilities not owned

-


-


8


437


454


465

Total liabilities

8,269


8,278


8,331

Equity:






Total Weyerhaeuser shareholders' interest

4,197


4,186


4,263

Noncontrolling interests

8


11


4

Total equity

4,205


4,197


4,267

Total liabilities and equity

$          12,474


$         12,475


$                  12,598













Weyerhaeuser Company









Q2.2012 Analyst Package









Preliminary results, subject to audit









Consolidated Statement of Cash Flows











in millions

Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Cash flows from operations:










Net earnings

$                   41


$                84


$                10


$              125


$              109

Noncash charges (credits) to income:










Depreciation, depletion and amortization

113


113


120


226


243

Deferred income taxes, net

(6)


13


(13)


7


26

Pension and other postretirement benefits

(28)


(30)


19


(58)


43

Share-based compensation expense

10


8


3


18


17

Charges for impairment of assets

8


4


2


12


3

Net gains on dispositions of assets

(7)


(10)


(20)


(17)


(176)

Foreign exchange transaction (gains) losses

(7)


9


(1)


2


(8)

Change in:










Receivables less allowances

(5)


(18)


(10)


(23)


(69)

Receivable for taxes

(2)


18


(7)


16


(27)

Inventories

(40)


28


35


(12)


(31)

Real estate and land

(55)


7


(32)


(48)


(34)

Prepaid expenses

(8)


(12)


(4)


(20)


(14)

Accounts payable and accrued liabilities

(56)


65


15


9


(23)

Deposits on land positions and other assets

-


22


(4)


22


(4)

Pension and postretirement contributions

(35)


(33)


(18)


(68)


(37)

Other

17


(1)


19


16


9

Net cash from operations

(60)


267


114


207


27











Cash flows from investing activities:










Property and equipment

(54)


(68)


(39)


(122)


(74)

Timberlands reforestation

(10)


(7)


(7)


(17)


(19)

Proceeds from sale of assets

6


18


3


24


196

Other

1


(1)


(10)


-


(5)

Cash from investing activities

(57)


(58)


(53)


(115)


98











Cash flows from financing activities:










Cash dividends

(81)


(80)


(80)


(161)


(161)

Change in book overdrafts

(29)


9


1


(20)


(18)

Payments on debt

(2)


(4)


(548)


(6)


(550)

Exercises of stock options

5


2


3


7


37

Other

(1)


(3)


(19)


(4)


(19)

Cash from financing activities

(108)


(76)


(643)


(184)


(711)











Net change in cash and cash equivalents

(225)


133


(582)


(92)


(586)

Cash and cash equivalents at beginning of period

953


728


1,463


953


1,467

Cash and cash equivalents at end of period

$                 728


$              861


$              881


$              861


$              881

Cash paid (received) during the year for:










Interest, net of amount capitalized

$                 114


$                54


$                91


$              168


$              247

Income taxes

$                 (10)


$                (5)


$                13


$              (15)


$                15





















Weyerhaeuser Company




Total Company Statistics

Q2.2012 Analyst Package









Preliminary results, subject to audit



















Special Items Included in Net Earnings











in millions

Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Net earnings

$                  41


$               84


$               10


$             125


$             109

Gain on sale of 82,000 acres of non-strategic timberlands

-


-


-


-


(96)

Loss on early extinguishment of debt

-


-


16


-


16

Restructuring, impairments and other charges

10


-


-


10


-

Gain on postretirement plan amendment

(34)


(33)


-


(67)


-

Gain on sale of properties

-


(4)


-


(4)


-

Tax settlements

(8)


-


-


(8)


-

Charges related to the sale of hardwoods

-


-


6


-


6

Net earnings before special items

$                    9


$               47


$               32


$               56


$               35







Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Net earnings per diluted share

$              0.08


$            0.16


$            0.02


$            0.23


$            0.20

Gain on sale of 82,000 acres of non-strategic timberlands

-


-


-


-


(0.18)

Loss on early extinguishment of debt

-


-


0.03


-


0.03

Restructuring, impairments and other charges

0.02


-


-


0.02


-

Gain on postretirement plan amendment

(0.06)


(0.06)


-


(0.12)


-

Gain on sale of properties

-


(0.01)


-


(0.01)


-

Tax settlements

(0.02)


-


-


(0.02)


-

Charges related to the sale of hardwoods

-


-


0.01


-


0.01

Net earnings before special items per diluted share

$              0.02


$            0.09


$            0.06


$            0.10


$            0.06






Selected Total Company Items, Excluding Discontinued Operations






in millions

Q1


Q2


Year-to-date


March 31, 2012


June 30, 2012


June 30, 2011


June 30, 2012


June 30, 2011

Depreciation, depletion and amortization:










Cost of products sold

$                 102


$              103


$              105


$              205


$              210

Selling, general and administrative expenses

11


10


13


21


29

Total depreciation, depletion and amortization

$                 113


$              113


$              118


$              226


$              239










Pension and postretirement costs:










Pension and postretirement costs allocated to business segments

$                   13


$                13


$                15


$                26


$                25

Pension and postretirement costs not allocated

7


7


3


14


15

Total company pension and postretirement costs

$                   20


$                20


$                18


$                40


$                40










Total decrease (increase) in Forest Products working capital (1)

$               (148)


$              103


$              (46)


$              (45)


$            (240)

Cash spent for capital expenditures

$                 (64)


$              (75)


$              (44)


$            (139)


$              (91)

(1)Working capital does not include cash balances.



























Weyerhaeuser Company





Timberlands Segment

Q2.2012 Analyst Package










Preliminary results, subject to audit




















Segment Statement of Operations












in millions


Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Sales to and revenues from unaffiliated customers

$        250


$        262


$        288


$        512


$        518

Intersegment sales

190


146


134


336


325

Total net sales and revenues

440


408


422


848


843

Cost of products sold

353


313


290


666


610

Gross margin

87


95


132


182


233

Selling, general and administrative expenses

25


23


24


48


47

Research and development expenses

4


5


4


9


8

Other operating income, net

(11)


(10)


(13)


(21)


(179)

Operating income

69


77


117


146


357

Interest income and other

1


-


1


1


2

Net contribution to earnings (see note 1)

$         70


$         77


$       118


$       147


$       359












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












in millions


Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Operating income

$         69


$         77


$       117


$       146


$       357

Depreciation, depletion and amortization

35


34


36


69


67

Special items

-


-


-


-


(152)

EBITDA, excluding special items*

$       104


$       111


$       153


$       215


$       272





















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














Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Gain on sale of 82,000 acres of non-strategic timberlands

$           -


$           -


$           -


$           -


$        152












Selected Segment Items














Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Total decrease (increase) in working capital (1)

$          (9)


$            6


$        (71)


$          (3)


$        (80)

Cash spent for capital expenditures

$        (12)


$        (15)


$        (14)


$        (27)


$        (28)

(1)Working capital does not include cash balances.








Segment Statistics













Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Third Party 

Net Sales 

and Revenue (millions)

Logs:










West

$        130


$        146


$        152


$        276


$        262

South

50


56


49


106


90

Canada

7


2


1


9


8

Total Logs

187


204


202


391


360

Pay as cut timber sales

11


9


8


20


16

Timberlands exchanges

8


7


39


15


60

Higher and better use land sales

4


5


2


9


6

Minerals, oil and gas

7


7


15


14


29

Products from international operations

25


29


21


54


38

Other products

8


1


1


9


9

Total

$        250


$        262


$        288


$        512


$        518

 

Logs

Third Party Sales

Realizations

(per cubic meter)

West

$     99.10


$     94.47


$   109.42


$     96.59


$   105.36

South

$     40.48


$     41.15


$     40.59


$     40.83


$     40.88

Canada

$     36.35


$     34.66


$     42.79


$     36.00


$     35.55

International

$     22.97


$     23.53


$     37.78


$     23.26


$     30.36

 

Logs

Third Party Sales Volumes

(cubic meters,

thousands)

West

1,308


1,551


1,391


2,859


2,486

South

1,228


1,354


1,211


2,582


2,216

Canada

205


54


23


259


217

International

78


82


79


160


151

Total

2,819


3,041


2,704


5,860


5,070

 

Logs

Fee Harvest Volumes

(cubic meters,

thousands)

West

1,679


1,831


1,747


3,510


3,358

South

2,714


2,788


2,355


5,502


4,535

International

172


161


221


333


319

Total

4,565


4,780


4,323


9,345


8,212























Weyerhaeuser Company





Wood Products Segment

Q2.2012 Analyst Package










Preliminary results, subject to audit





















Segment Statement of Operations












in millions

Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Sales to and revenues from unaffiliated customers

$         634


$         776


$         605


$      1,410


$      1,131

Intersegment sales

20


20


21


40


41

Total net sales and revenues

654


796


626


1,450


1,172

Cost of products sold

611


708


630


1,319


1,162

Gross margin

43


88


(4)


131


10

Selling, general and administrative expenses

50


50


49


100


99

Research and development expenses

1


1


1


2


2

Charges for restructuring, closures and impairments

1


2


4


3


6

Other operating costs (income), net

5


(1)


(4)


4


(9)

Operating income (loss)

(14)


36


(54)


22


(88)

Interest income and other

1


-


-


1


2

Net contribution to earnings from continuing operations

(13)


36


(54)


23


(86)

Net contribution to earnings from discontinued hardwoods operations

-


-


(8)


-


(8)

Net contribution to earnings (see note 1)

$        (13)


$          36


$        (62)


$          23


$        (94)











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












in millions

Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Operating income (loss)

$        (14)


$          36


$        (54)


$          22


$        (88)

Depreciation, depletion and amortization

34


33


37


67


78

Special items

-


(6)


-


(6)


-

EBITDA, excluding special items*

$          20


$          63


$        (17)


$          83


$        (10)






















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














Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Gain on sale of property

$            -


$             6


$            -


$             6


$            -

Total special items from continuing operations

-


6


-


6


-

Charges related to sale of discontinued hardwoods operations

-


-


(9)


-


(9)

Total

$           -


$            6


$           (9)


$            6


$           (9)












Selected Segment Items














Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Total decrease (increase) in working capital (1)

$       (112)


$             5


$           44


$       (107)


$         (75)

Cash spent for capital expenditures

$           (6)


$         (15)


$           (7)


$         (21)


$         (13)

(1)Working capital does not include cash balances.




















Segment Statistics












in millions, except for third-party sales realizations

Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Structural Lumber

(board feet)

Third Party Net Sales and Revenue

$         291


$         370


$         290


$         661


$         550

Third Party Sales Realizations

$    311.00


$    349.91


$    300.84


$    331.63


$    307.50

Third Party Sales Volumes

937


1,056


963


1,993


1,789

Production Volumes

958


1,004


903


1,962


1,796

Engineered Solid

Section

(cubic feet)

Third Party Net Sales and Revenue

$           65


$           70


$           64


$         135


$         117

Third Party Sales Realizations

$ 1,830.07


$ 1,789.35


$ 2,005.03


$ 1,808.83


$ 2,014.70

Third Party Sales Volumes

3.6


3.9


3.2


7.5


5.8

Production Volumes

3.7


3.8


3.7


7.5


7.3

Engineered

I-joists

(lineal feet)

Third Party Net Sales and Revenue

$           41


$           49


$           48


$           90


$           81

Third Party Sales Realizations

$ 1,284.98


$ 1,210.80


$ 1,258.14


$ 1,243.80


$ 1,261.55

Third Party Sales Volumes

32


40


38


72


64

Production Volumes

34


37


34


71


64

Oriented Strand

Board

(square feet 3/8')

Third Party Net Sales and Revenue

$         111


$         138


$           86


$         249


$         168

Third Party Sales Realizations

$    196.89


$    213.97


$    177.22


$    205.98


$    183.61

Third Party Sales Volumes

565


643


484


1,208


916

Production Volumes

601


626


518


1,227


1,012

Softwood Plywood (square feet 3/8')

Third Party Net Sales and Revenue

$           23


$           26


$           15


$           49


$           30

Third Party Sales Realizations

$    309.26


$    331.56


$    264.54


$    320.93


$    260.32

Third Party Sales Volumes

73


81


58


154


116

Production Volumes

51


50


48


101


101























Weyerhaeuser Company




Cellulose Fibers Segment

Q2.2012 Analyst Package









Preliminary results, subject to audit




















Segment Statement of Operations












in millions


Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Total net sales and revenues

$        473


$        459


$        526


$        932


$    1,032

Cost of products sold

407


404


417


811


811

Gross margin

66


55


109


121


221

Selling, general and administrative expenses

24


22


24


46


46

Research and development expenses

2


2


2


4


4

Other operating income, net

(9)


(4)


(3)


(13)


(8)

Operating income

49


35


86


84


179

Interest income and other

(1)


1


(1)


-


(2)

Net contribution to earnings (see note 1)

$          48


$          36


$          85


$          84


$        177












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












in millions


Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Operating income

$          49


$          35


$          86


$          84


$        179

Depreciation, depletion and amortization

37


36


36


73


73

EBITDA, excluding special items*

$          86


$          71


$        122


$        157


$        252



















Selected Segment Items














Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Total decrease (increase) in working capital (1)

$           45


$           24


$         (37)


$           69


$         (23)

Cash spent for capital expenditures

$         (45)


$         (44)


$         (23)


$         (89)


$         (49)

(1)Working capital does not include cash balances.












Segment Statistics













Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Pulp

(air-dry metric tons)

Third Party Net Sales and Revenue (millions)

$         367


$         348


$         409


$         715


$         807

Third Party Sales Realizations

$    818.42


$    818.88


$    960.04


$    818.65


$    935.81

Third Party Sales Volumes (thousands)

449


425


426


874


862

Production Volumes (thousands)

438


417


410


855


847

Liquid

Packaging

Board

(tons)

Third Party Net Sales and Revenue (millions)

$           83


$           90


$           93


$         173


$         178

Third Party Sales Realizations

$ 1,181.34


$ 1,176.32


$ 1,194.46


$ 1,178.72


$ 1,171.86

Third Party Sales Volumes (thousands)

70


76


77


146


151

Production Volumes (thousands)

65


78


80


143


147























Weyerhaeuser Company




Real Estate Segment

Q2.2012 Analyst Package









Preliminary results, subject to audit



















Segment Statement of Operations












in millions

Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Total net sales and revenues

$       137


$       296


$       191


$       433


$       351

Cost of products sold

113


248


147


361


273

Gross margin

24


48


44


72


78

Selling, general and administrative expenses

32


34


36


66


71

Charges for restructuring, closures and impairments

1


1


1


2


2

Other operating income, net

-


(1)


-


(1)


-

Operating income (loss)

(9)


14


7


5


5

Interest income and other

1


1


1


2


2

Net contribution to earnings

$          (8)


$         15


$           8


$           7


$           7












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












in millions

Q1.2012


Q2.2012


Q2.2011


YTD.2012


YTD.2011

Operating income (loss)

$          (9)


$         14


$           7


$           5


$           5

Depreciation, depletion and amortization

2


3


3


5


6

Capitalized interest included in cost of products sold

3


14


6


17


10

EBITDA, excluding special items*

$          (4)


$         31


$         16


$         27


$         21



















Selected Segment Items