SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 25, 2003
----------------------------------
(Date of earliest event report)
WEYERHAEUSER COMPANY
(Exact name of registrant as specified in charter)
Washington 1-4825 91-0470860
---------- ------ ----------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
Federal Way, Washington 98063-9777
(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(253) 924-2345
TABLE OF CONTENTS
Item 12. Results of Operations and Financial Condition
---------------------------------
SIGNATURES
----------
Item 12. Results of Operations and Financial Condition
On July 25, 2003, Weyerhaeuser Company issued a press release as follows:
FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported second
quarter net earnings of $157 million, or 71 cents per share, on net sales of
$4.9 billion. This compares with $72 million, or 32 cents per share, on net
sales of $4.9 billion for the second quarter of 2002.
Second quarter 2003 earnings include the following after-tax
items:
-- A charge of $19 million, or 8 cents per share, for closure or
impending sale of facilities;
-- A charge of $17 million, or 8 cents per share, for integration
and restructuring activities;
-- A gain of $95 million, or 43 cents per share, for the sale of
timberlands in Western Washington;
-- A gain of $7 million, or 3 cents per share, for the settlement
of an insurance claim relating to the company's Cemwood
litigation.
Second quarter 2002 earnings include the following after-tax
items:
-- A charge of $18 million, or 8 cents per share, for closure or
impending closure of facilities;
-- A charge of $17 million, or 8 cents per share, for integration
and restructuring activities;
-- A gain of $19 million, or 9 cents per share, for the reversal
of a countervailing duty accrual.
The company also announced that it has achieved its annualized run
rate goal of $300 million in pre-tax synergies related to the
acquisition of Willamette Industries. Weyerhaeuser originally
estimated it would reach this synergy goal by first quarter 2005.
Other significant second quarter financial matters include:
-- Reduced total company debt, which includes Real Estate and
related operations, to approximately $13.6 billion at the end
of the quarter. This is a reduction of approximately $334
million from the prior quarter.
-- Maintained capital spending discipline. Capital spending,
excluding acquisitions and Real Estate and related operations,
for the first six months was approximately $319 million, in
line with the annual goal of $750 million.
-- Incurred approximately $26 million in countervailing and
anti-dumping duties and related costs in the second quarter on
Canadian softwood lumber the company imports into the United
States compared with the $24 million Weyerhaeuser incurred in
the first quarter.
"Our ability to achieve our synergy goal more than one year ahead
of schedule, despite challenging market conditions, is a tribute to
our employees," said Steven R. Rogel, chairman, president and chief
executive officer. "They have embraced the concept of increased
frugality and have made substantial progress in improving the overall
efficiency of our manufacturing systems. Through their hard work, we
are positioned to take advantage of future improvements in the
economy.
"Late in the second quarter we saw some promising signs in the
prices for wood products, a trend that should continue into the third
quarter," Rogel said. "Unfortunately, the markets for pulp, uncoated
free sheet and containerboard are expected to remain challenging."
SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data) 2Q 2003 2Q 2002 Change
Net earnings $157 $72 $85
Earnings per share $0.71 $0.32 $0.39
Net sales $4,930 $4,922 $8
SEGMENT RESULTS FOR SECOND QUARTER 2003
(Contributions to Pre-Tax Earnings)
Millions 2Q 2003 2Q 2002 Change
Timberlands $300 $162 $138
Wood Products ($53) $64 ($117)
Pulp and Paper ($7) ($15) $8
Containerboard, Packaging and
Recycling $108 $75 $33
Real estate and related assets $91 $79 $12
TIMBERLANDS
2Q 2003 1Q 2003 Change
Contribution to earnings
(millions) $300 $149 $151
Excluding a pre-tax gain of $144 million from the sale of
timberlands in Western Washington to Hancock Timber Resources, second
quarter earnings were up slightly from the first quarter due to
increased log sales volumes in the West in both export and domestic
markets on somewhat lower prices. In the South, slightly higher prices
partially offset lower harvest volumes due to weather conditions.
Third quarter harvest results are expected to be lower than second
quarter due to normal reductions in harvest levels during the fire
season, which is expected to result in slightly lower earnings in the
segment.
WOOD PRODUCTS
2Q 2003 1Q 2003 Change
Contribution (charge) to
earnings (millions) ($53) ($150) $97
Excluding a $79 million pre-tax first quarter charge taken for
damages awarded by a jury on April 18 in U.S. District Court in
Oregon, operating losses in the second quarter were lower than first
quarter. The improvement was due to significantly stronger prices late
in the quarter for oriented strand board and plywood. Market
conditions for structural softwood lumber also improved late in the
quarter, leading to stronger prices and higher sales volumes. The
improvements were offset by higher costs in the company's Canadian
operations associated with the strengthening Canadian dollar. Wood
Products recognized pre-tax charges of $24 million in the first
quarter and $29 million in the second quarter for integration and
restructuring, and closure or impending sale of facilities.
Third quarter results for Wood Products are expected to be better
than second quarter due primarily to the continued strength in the
wood products markets. Weyerhaeuser will continue to be adversely
affected by countervailing and anti-dumping duties, and related costs
on Canadian softwood lumber the company imports into the United
States.
PULP AND PAPER
2Q 2003 1Q 2003 Change
Contribution (charge) to
earnings (millions) ($7) $10 ($17)
Pulp prices benefited from the weaker U.S. dollar, but the
benefits from this increase were more than offset by a decrease in
fine paper prices. Weyerhaeuser took approximately 60,000 tons of
combined market and annual maintenance downtime during the second
quarter. Costs associated with the downtime and higher costs in the
company's Canadian operations associated with the strengthening
Canadian dollar negatively affected the second quarter performance. In
addition, the second quarter earnings include charges of approximately
$10 million for an impending facility closure and costs associated
with work force reductions. First quarter earnings included
integration and restructuring costs of $6 million.
Third quarter earnings are expected to be lower than second
quarter due to weak demand for pulp and fine paper.
CONTAINERBOARD, PACKAGING AND RECYCLING
2Q 2003 1Q 2003 Change
Contribution to earnings
(millions) $108 $80 $28
A seasonal increase in the demand for packaging resulted in higher
second quarter earnings compared with first quarter results. This
increase was partially offset by lower prices for corrugated boxes and
higher costs for old corrugated containers, commonly referred to as
OCC. During the quarter, Weyerhaeuser took 70,000 tons of market and
maintenance downtime.
Third quarter earnings are expected to be lower than second
quarter due to continued weak markets.
REAL ESTATE AND RELATED ASSETS
2Q 2003 1Q 2003 Change
Contribution to earnings
(millions) $91 $95 ($4)
The business benefited from the continued strong housing market
and a $12 million pre-tax gain on a commercial property sale in
Southern California in the second quarter. First quarter earnings
included a pre-tax gain of $18 million for the sale of an apartment
complex and two office buildings.
Third quarter earnings are expected to be higher than second
quarter due to increased closings of single-family homes. The company
currently has a backlog of more than six months of homes sold, but not
closed.
OTHER
The company will hold a live conference call at 7 a.m. PDT (10
a.m. EDT) on July 25 to discuss the second quarter results.
To access the conference call, listeners calling from within North
America should dial 877-888-3490 at least 15 minutes prior to the
start of the conference call. Those wishing to access the call from
outside North America should dial 416-695-9757. Replays of the call
will be available for 48 hours following completion of the live call
and can be accessed at 866-518-1010 within North America and at
416-252-1143 from outside North America.
The call may also be accessed through Weyerhaeuser's Internet site
at www.weyerhaeuser.com by clicking on the "Listen to our conference
call" link.
Weyerhaeuser Company, one of the world's largest integrated forest
products companies, was incorporated in 1900. In 2002, sales were
$18.5 billion. It has offices or operations in 18 countries, with
customers worldwide. Weyerhaeuser is principally engaged in the
growing and harvesting of timber; the manufacture, distribution and
sale of forest products; and real estate construction, development and
related activities. Additional information about Weyerhaeuser's
businesses, products and practices is available at
http://www.weyerhaeuser.com.
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. Some of these forward-looking statements can be identified by
the use of forward-looking terminology such as "expects," "may,"
"will," "believes," "should," "approximately," anticipates,"
"estimates," and "plans," and the negative or other variations of
those terms or comparable terminology or by discussions of strategy,
plans or intentions. In particular, some of these forward-looking
statements deal with expectations regarding the company's markets in
the third quarter; expected earnings and performance of the company's
business segments during the third quarter, anticipated debt reduction
and anticipated capital spending. The accuracy of such statements is
subject to a number of risks, uncertainties and assumptions that may
cause actual results to differ materially from those projected,
including, but not limited to, the effect of general economic
conditions, including the level of interest rates and housing starts;
market demand for the company's products, which may be tied to the
relative strength of various U.S. business segments; energy prices;
performance of the company's manufacturing operations; the successful
execution of internal performance plans; the level of competition from
domestic and foreign producers; the effect of forestry, land use,
environmental and other governmental regulations; fires, floods and
other natural disasters; and legal proceedings. The company is also a
large exporter and is affected by changes in economic activity in
Europe and Asia, particularly Japan, and by changes in currency
exchange rates, particularly the relative value of the U.S. dollar to
the Euro and the Canadian dollar; and restrictions on international
trade or tariffs imposed on imports, including the countervailing and
dumping duties imposed on the company's softwood lumber shipments from
Canada to the United States. These and other factors that could cause
or contribute to actual results differing materially from such forward
looking statements are discussed in greater detail in the company's
Securities and Exchange Commission filings.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED
EARNINGS (1) Q1 Q2 Q3
(in millions) ----------------- -------------- -------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
----------------- -------------- -------------
Net sales and revenues:
Weyerhaeuser (2) $4,169 $3,595 $4,498 $4,501 $4,422
Real estate and
related assets 445 396 432 421 468
----------------- -------------- -------------
Total net sales and
revenues 4,614 3,991 4,930 4,922 4,890
----------------- -------------- -------------
Costs and expenses:
Weyerhaeuser:
Costs of products
sold 3,322 2,831 3,611 3,519 3,576
Depreciation,
amortization and
fee stumpage 321 264 313 311 304
Selling expenses 107 103 111 116 116
General and
administrative
expenses 231 186 232 231 201
Research and
development
expenses 12 12 12 13 11
Taxes other than
payroll and income
taxes 47 38 48 53 48
Charges for
integration and
restructuring 29 2 25 23 17
Charges for closure
of facilities 22 27 12 28 -
Other operating
costs, net (3) (4) 37 4 (205) (27) 19
----------------- -------------- -------------
4,128 3,467 4,159 4,267 4,292
----------------- -------------- -------------
Real estate and
related assets:
Costs and operating
expenses 330 291 316 317 359
Depreciation and
amortization 3 2 2 1 1
Selling expenses 24 21 25 24 23
General and
administrative
expenses 14 10 14 11 14
Taxes other than
payroll and income
taxes 1 1 1 1 1
Other operating
costs, net (7) (8) - 2 6
----------------- -------------- -------------
365 317 358 356 404
----------------- -------------- -------------
Total costs and
expenses 4,493 3,784 4,517 4,623 4,696
----------------- -------------- -------------
Operating income 121 207 413 299 194
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred (5) (208) (178) (205) (222) (214)
Less interest
capitalized 5 4 6 16 16
Equity in income
(loss) of
affiliates (5) (4) 3 (2) (6)
Interest income and
other 6 5 6 6 9
Real estate and
related assets:
Interest expense
incurred (14) (13) (13) (13) (12)
Less interest
capitalized 14 13 13 13 12
Equity in income of
unconsolidated
entities 5 6 7 6 10
Interest income and
other 11 6 8 8 11
----------------- -------------- -------------
Earnings before income
taxes and cumulative
effect of a change in
accounting principle (65) 46 238 111 20
Income taxes 22 (16) (81) (39) (7)
----------------- -------------- -------------
Earnings before cumulative
effect of a change in
accounting principle (43) 30 157 72 13
Cumulative effect of a
change in accounting
principle, net of
applicable taxes of
$6 (6) (11) - - - -
----------------- -------------- -------------
Net earnings (loss) $(54) $30 $157 $72 $13
================= ============== =============
Basic and diluted net
earnings (loss) per
share:
Net earnings (loss)
before cumulative
effect of a change
in accounting
principle $(0.19) $0.14 $0.71 $0.32 $0.06
Cumulative effect of a
change in accounting
principle (0.05) - - - -
----------------- -------------- -------------
Net earnings (loss) $(0.24) $0.14 $0.71 $0.32 $0.06
================= ============== =============
Dividends paid per
share $0.40 $0.40 $0.40 $0.40 $0.40
================= ============== =============
CONSOLIDATED
EARNINGS (1) Q4 Year ended
(in millions) ---------------------- ---------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
---------------------- ---------------------
Net sales and revenues:
Weyerhaeuser (2) $4,253 $16,771
Real estate and
related assets 465 1,750
---------------------- ---------------------
Total net sales and
revenues 4,718 18,521
---------------------- ---------------------
Costs and expenses:
Weyerhaeuser:
Costs of products
sold 3,285 13,211
Depreciation,
amortization and
fee stumpage 335 1,214
Selling expenses 115 450
General and
administrative
expenses 229 847
Research and
development
expenses 16 52
Taxes other than
payroll and income
taxes 39 178
Charges for
integration and
restructuring 30 72
Charges for closure
of facilities 40 95
Other operating
costs, net (3) (4) (135) (139)
---------------------- ---------------------
3,954 15,980
---------------------- ---------------------
Real estate and
related assets:
Costs and operating
expenses 359 1,326
Depreciation and
amortization 7 11
Selling expenses 22 90
General and
administrative
expenses 13 48
Taxes other than
payroll and income
taxes 1 4
Other operating
costs, net (1) (1)
---------------------- ---------------------
401 1,478
---------------------- ---------------------
Total costs and
expenses 4,355 17,458
---------------------- ---------------------
Operating income 363 1,063
Interest expense and
other:
Weyerhaeuser:
Interest expense
incurred (5) (207) (821)
Less interest
capitalized 14 50
Equity in income
(loss) of
affiliates (1) (13)
Interest income and
other 8 28
Real estate and
related assets:
Interest expense
incurred (15) (53)
Less interest
capitalized 15 53
Equity in income of
unconsolidated
entities 9 31
Interest income and
other 8 33
---------------------- ---------------------
Earnings before income
taxes and cumulative
effect of a change in
accounting principle 194 371
Income taxes (68) (130)
---------------------- ---------------------
Earnings before
cumulative effect of a
change in accounting
principle 126 241
Cumulative effect of a
change in accounting
principle, net of
applicable taxes of
$6 (6) - -
---------------------- ---------------------
Net earnings (loss) $126 $241
====================== =====================
Basic and diluted net
earnings (loss) per
share:
Net earnings (loss)
before cumulative
effect of a change
in accounting
principle $0.57 $1.09
Cumulative effect of a
change in accounting
principle - -
---------------------- ---------------------
Net earnings (loss) $0.57 $1.09
====================== =====================
Dividends paid per
share $0.40 $1.60
====================== =====================
(1) Certain reclassifications have been made to conform prior
period data with the current presentation.
(2) The first and second quarters of 2003 include charges of $24
million and $26 million, respectively, for countervailing and
anti-dumping duties and related costs. 2002 first quarter
includes $13 million of charges for countervailing and anti-
dumping duties and related costs and a credit of $18 million
for the reversal of countervailing and anti-dumping duties
accrued in 2001. The 2002 second quarter includes $7 million
of charges for countervailing and anti-dumping duties and
related costs, a credit of $29 million for the reversal of
charges accrued in 2001 and a credit of $13 million for
charges accrued in the first quarter of 2002. The 2002 third
and fourth quarters include charges of $31 million and $26
million, respectively, for countervailing and anti-dumping
duties and related costs. The 2002 impact of countervailing
and anti-dumping duties and related costs is a net charge of
$17 million which includes current year charges of $64 million
and $47 million of credits related to the reversal of charges
accrued in 2001.
(3) 2003 first and second quarters include net foreign exchange
gains of $35 million and $47 million, respectively. 2002
includes $33 million in net foreign exchange gains. Gains of
$8 million, $27 million and $14 million are included in the
first, second and fourth quarters, respectively. A loss of $16
million is included in the third quarter.
(4) The first quarter of 2003 includes a $79 million charge for a
lawsuit involving the market for Pacific Northwest alder logs.
2003 second quarter includes a $144 million gain on the sale
of timberlands in Washington state and a $25 million gain for
the settlement of an insurance claim relating to the Cemwood
litigation. 2002 fourth quarter includes a $117 million gain
on the sale of timberlands in Washington state.
(5) 2002 first quarter includes a $35 million charge to write off
debt issue costs in connection with the refinancing of debt in
connection with the acquisition of Willamette Industries.
(6) Statement of Financial Accounting Standards No. 143,
Accounting for Asset Retirement Obligations, was adopted as of
the beginning of 2003. Results for 2002 were not impacted by
the change in accounting principle.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Net sales and
revenues (in
millions): Q1 Q2 Q3
----------------- -------------- --------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
----------------- -------------- --------------
Timberlands:
Raw materials
(logs, timber and
chips) $203 $142 $213 $184 $193
Other products 21 19 24 21 18
----------------- -------------- --------------
224 161 237 205 211
----------------- -------------- --------------
Wood Products:
Softwood lumber 752 692 846 901 845
Plywood and veneer 174 158 182 203 195
Oriented strand
board, composite
and other panels 257 240 331 320 217
Hardwood lumber 80 76 86 81 72
Engineered lumber
products 254 253 308 315 324
Raw materials
(logs, timber and
chips) 81 106 82 129 120
Other products 174 176 221 198 184
----------------- -------------- --------------
1,772 1,701 2,056 2,147 1,957
----------------- -------------- --------------
Pulp and Paper:
Pulp 309 280 321 297 300
Paper 596 416 546 563 590
Coated groundwood 36 30 32 30 32
Bleached board 47 40 52 51 37
Other products 10 6 7 10 8
----------------- -------------- --------------
998 772 958 951 967
----------------- -------------- --------------
Containerboard,
Packaging and
Recycling:
Containerboard 77 73 81 90 101
Packaging 879 758 922 935 909
Recycling 60 48 63 51 67
Bags 20 10 20 20 22
Other products 33 10 35 34 28
----------------- -------------- --------------
1,069 899 1,121 1,130 1,127
----------------- -------------- --------------
Real Estate and
Related Assets 445 396 432 421 468
Corporate and Other 106 62 126 68 160
----------------- -------------- --------------
$4,614 $3,991 $4,930 $4,922 $4,890
================= ============== ==============
Net sales and
revenues (in
millions): Q4 Year ended
------------------ -------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
------------------ -------------------
Timberlands:
Raw materials
(logs, timber and
chips) $254 $773
Other products 39 97
------------------ -------------------
293 870
------------------ -------------------
Wood Products:
Softwood lumber 748 3,186
Plywood and veneer 178 734
Oriented strand
board, composite
and other panels 251 1,028
Hardwood lumber 77 306
Engineered lumber
products 256 1,148
Raw materials
(logs, timber and
chips) 117 472
Other products 160 718
------------------ -------------------
1,787 7,592
------------------ -------------------
Pulp and Paper:
Pulp 319 1,196
Paper 594 2,163
Coated groundwood 34 126
Bleached board 51 179
Other products 10 34
------------------ -------------------
1,008 3,698
------------------ -------------------
Containerboard,
Packaging and
Recycling:
Containerboard 86 350
Packaging 864 3,466
Recycling 63 229
Bags 23 75
Other products 20 92
------------------ -------------------
1,056 4,212
------------------ -------------------
Real Estate and
Related Assets 465 1,750
Corporate and Other 109 399
------------------ -------------------
$4,718 $18,521
================== ===================
Contribution (charge) to
earnings(1): Q1 Q2 Q3
--------------- -------------- ------------
(in millions) March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- -------------- ------------
Timberlands (2) $149 $107 $300 $162 $133
Wood Products (3) (4) (5) (150) 9 (53) 64 (18)
Pulp and Paper (6) (7) 10 1 (7) (15) 10
Containerboard,
Packaging and
Recycling (8) 80 58 108 75 88
Real Estate and
Related Assets (9) 95 91 91 79 85
Corporate and
Other (10) (11) (12) (46) (46) (2) (48) (80)
--------------- -------------- ------------
$138 $220 $437 $317 $218
=============== ============== ============
Contribution (charge) to
earnings(1): Q4 Year ended
----------- -------------
(in millions) Dec. Dec. Dec. Dec.
28, 29, 28, 29,
2003 2002 2003 2002
----------- -------------
Timberlands (2) $300 $702
Wood Products (3) (4) (5) (75) (20)
Pulp and Paper (6) (7) 86 82
Containerboard,
Packaging and
Recycling (8) 114 335
Real Estate and
Related Assets (9) 81 336
Corporate and
Other (10) (11) (12) (119) (293)
----------- -------------
$387 $1,142
=========== =============
(1) Certain reclassifications have been made to conform prior
period data with the current presentation.
(2) 2003 second quarter includes a $144 million gain on the sale
of timberlands in Washington state. 2002 fourth quarter
includes a $117 million gain on the sale of timberlands in
Washington state.
(3) The first and second quarters of 2003 include charges of $24
million and $26 million, respectively, for countervailing and
anti-dumping duties and related costs. 2002 first quarter
includes $13 million of charges for countervailing and anti-
dumping duties and related costs and a credit of $18 million
for the reversal of countervailing and anti-dumping duties
accrued in 2001. The 2002 second quarter includes $7 million
of charges for countervailing and anti-dumping duties and
related costs, a credit of $29 million for the reversal of
charges accrued in 2001 and a credit of $13 million for
charges accrued in the first quarter of 2002. The 2002 third
and fourth quarters include charges of $31 million and $26
million, respectively, for countervailing and anti-dumping
duties and related costs. The 2002 impact of countervailing
and anti-dumping duties and related costs is a net charge of
$17 million which includes current year charges of $64 million
and $47 million of credits related to the reversal of charges
accrued in 2001.
(4) The first quarter of 2003 includes a $79 million charge for a
lawsuit involving the market for Pacific Northwest alder logs.
(5) 2003 first and second quarters include costs for the closure
of facilities of $22 million and $11 million, respectively.
2003 second quarter also includes a charge of $16 million to
recognize impairment associated with an impending facility
sale. 2002 includes closure costs of $51 million ($17 million
in the first quarter and $34 million in the fourth quarter).
(6) 2002 includes $12 million in net business disruption costs
associated with the recovery boiler explosion at the Plymouth,
N.C., paper facility. Costs of $22 million and $30 million are
included in the second and third quarters, respectively. Net
recoveries of $40 million are included in the fourth quarter.
(7) 2003 second quarter includes $3 million of closure costs. 2002
fourth quarter results include an $8 million benefit resulting
from adjustments to closure reserves established in 2001.
(8) 2003 second quarter includes the reversal of an accrual for
closure charges of $2 million. 2002 includes closure costs of
$52 million ($10 million in the first quarter, $28 million in
the second quarter and $14 million in the fourth quarter).
(9) 2003 first quarter includes gains of $8 million for the sale
of two office buildings and $10 million for the sale of an
apartment complex. 2003 second quarter includes a gain of $12
million for the sale of commercial property. 2002 includes $21
million in gains from sales of apartment complexes, including
$7 million in the second quarter and $14 million in the third
quarter.
(10) 2003 second quarter includes a $6 million charge to reflect
the final settlement in connection with the termination of the
former MacMillan Bloedel pension plan for U.S. employees. 2002
results include a $35 million charge in the fourth quarter
related to the termination of this pension plan.
(11) 2003 second quarter includes a $25 million gain for the
settlement of an insurance claim relating to the Cemwood
litigation.
(12) 2003 results include net foreign exchange gains of $36 million
in the first quarter and $45 million in the second quarter.
2002 results include net foreign exchange gains (losses) of $8
million in the first quarter, $27 million in the second
quarter, ($17 million) in the third quarter and $14 million in
the fourth quarter, for a 2002 net gain of $32 million. These
gains and losses result primarily from fluctuations in
Canadian and New Zealand exchange rates.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales
volumes: Q1 Q2 Q3
--------------- -------------- ---------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- -------------- ---------------
Timberlands
(millions):
Raw materials -
cubic feet 96 67 110 102 91
Wood Products
(millions):
Softwood lumber -
board feet 2,175 1,812 2,385 2,219 2,331
Plywood and veneer -
square feet (3/8") 726 624 760 815 792
Composite panels -
square feet (3/4") 278 308 317 445 95
Oriented strand
board - square feet
(3/8") 1,025 945 1,206 1,095 1,117
Hardwood lumber -
board feet 106 108 113 113 104
Raw materials -
cubic feet 128 143 118 164 161
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 623 563 596 618 561
Paper - tons 737 546 690 717 749
Coated groundwood -
tons 61 48 55 49 55
Bleached board -
tons 60 53 67 61 47
Paper converting -
tons 502 375 472 488 499
Containerboard,
Packaging and
Recycling (thousands)
Containerboard - tons 221 209 233 260 283
Packaging - MSF 17,752 15,430 18,577 19,614 19,007
Recycling - tons 593 604 566 552 539
Bags - tons 25 13 24 26 26
Third party sales
volumes: Q4 Year ended
------------------- -------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
------------------- -------------------
Timberlands
(millions):
Raw materials -
cubic feet 110 370
Wood Products
(millions):
Softwood lumber -
board feet 2,140 8,502
Plywood and veneer -
square feet (3/8") 672 2,903
Composite panels -
square feet (3/4") 299 1,147
Oriented strand
board - square feet
(3/8") 1,048 4,205
Hardwood lumber -
board feet 102 427
Raw materials -
cubic feet 127 595
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 636 2,378
Paper - tons 730 2,742
Coated groundwood -
tons 58 210
Bleached board -
tons 68 229
Paper converting -
tons 497 1,859
Containerboard,
Packaging and
Recycling (thousands)
Containerboard - tons 231 983
Packaging - MSF 17,643 71,694
Recycling - tons 597 2,292
Bags - tons 28 93
Total production
volumes: Q1 Q2 Q3
----------------- --------------- -------------
March March June June Sept. Sept.
30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
----------------- --------------- -------------
Timberlands
(millions):
Logs - cubic
feet 182 153 152 191 164
Wood Products
(millions):
Softwood lumber -
board feet 1,842 1,530 1,825 1,702 1,728
Plywood and
veneer - square
feet (3/8") 672 471 557 649 638
Composite panels -
square feet
(3/4") 231 218 252 183 235
Oriented strand
board - square
feet (3/8") 1,011 957 1,051 944 1,115
Hardwood lumber -
board feet 108 96 102 99 107
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 654 607 619 492 630
Paper - tons 757 510 712 667 704
Coated
groundwood - tons 62 48 55 60 43
Bleached board -
tons 56 63 68 67 31
Paper converting -
tons 516 353 479 496 502
Containerboard,
Packaging and
Recycling (thousands)
Containerboard -
tons 1,429 1,250 1,568 1,600 1,621
Packaging - MSF 18,977 16,174 19,955 20,521 19,596
Recycling - tons 1,528 1,387 1,644 1,588 1,551
Bags - tons 25 13 25 25 27
Total production
volumes: Q4 Year ended
----------------------- ----------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2003 2002 2003 2002
----------------------- ----------------------
Timberlands
(millions):
Logs - cubic
feet 155 663
Wood Products
(millions):
Softwood lumber -
board feet 1,871 6,831
Plywood and
veneer - square
feet (3/8") 520 2,278
Composite panels -
square feet
(3/4") 228 864
Oriented strand
board - square
feet (3/8") 1,033 4,049
Hardwood lumber -
board feet 104 406
Pulp and Paper
(thousands):
Pulp - air-dry
metric tons 552 2,281
Paper - tons 730 2,611
Coated groundwood -
tons 59 210
Bleached board -
tons 66 227
Paper converting -
tons 493 1,844
Containerboard,
Packaging and
Recycling (thousands)
Containerboard - tons 1,533 6,004
Packaging - MSF 18,809 75,100
Recycling - tons 1,566 6,092
Bags - tons 28 93
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in millions)
March 30, June 29, Sept. 28, Dec. 28, Dec. 29,
Assets 2003 2003 2003 2003 2002
------ --------- -------- --------- -------- --------
Weyerhaeuser
Current assets:
Cash and short-
term investments $59 $47 $115
Receivables, less
allowances 1,573 1,671 1,413
Inventories 2,167 2,093 1,941
Prepaid expenses 455 427 419
---------- --------- --------- -------- --------
Total current
assets 4,254 4,238 3,888
Property and
equipment 12,228 12,274 12,278
Construction in
progress 709 669 687
Timber and
timberlands at
cost, less fee
stumpage charged
to disposals 4,450 4,454 4,402
Investments in
and advances to
equity
affiliates 538 564 578
Goodwill 3,191 3,224 3,131
Deferred pension
and other assets 1,337 1,349 1,285
---------- --------- --------- -------- --------
26,707 26,772 26,249
---------- --------- --------- -------- --------
Real estate and
related assets 1,989 2,065 1,970
---------- --------- --------- -------- --------
Total assets $28,696 $28,837 $28,219
========== ========= ========= ======== ========
Liabilities and
Shareholders'
Interest
----------------
Weyerhaeuser
Current liabilities:
Notes payable
and commercial
paper $321 $238 $2
Current maturities
of long-term debt 595 594 786
Accounts payable 975 1,046 983
Accrued liabilities 1,162 1,192 1,223
---------- --------- --------- -------- --------
Total current
liabilities 3,053 3,070 2,994
Long-term debt 12,129 11,866 11,907
Deferred income
taxes, pension,
other
postretirement
benefits and
other liabilities 5,541 5,612 5,346
---------- --------- --------- -------- --------
20,723 20,548 20,247
---------- --------- --------- -------- --------
Real estate and
related assets
Notes payable and
commercial paper 115 130 63
Long-term debt 764 762 814
Other liabilities 466 491 472
---------- --------- --------- -------- --------
1,345 1,383 1,349
---------- --------- --------- -------- --------
Total liabilities 22,068 21,931 21,596
Shareholders'
interest 6,628 6,906 6,623
---------- --------- --------- -------- --------
Total liabilities
and shareholders'
interest $28,696 $28,837 $28,219
========== ========= ========= ======== ========
STATEMENT OF CASH FLOWS Q1 Q2 Q3
SELECTED INFORMATION --------------- -------------- --------------
(unaudited) March March June June Sept. Sept.
(in millions) 30, 31, 29, 30, 28, 29,
2003 2002 2003 2002 2003 2002
--------------- -------------- --------------
(Weyerhaeuser only,
excludes real estate &
related assets)
Net cash from
operations $(126) $(90) $465 $379 $268
Cash paid for property
and equipment (128) (158) (172) (288) (237)
Cash paid for
timberlands
reforestation (14) (12) (5) (8) (6)
Cash received from
issuances of debt 1 13,001 - 100 26
Revolving credit
facilities, notes and
commercial paper
borrowings, net 599 30 (333) (150) 122
Payments on debt (251) (6,593) (14) (97) (159)
STATEMENT OF CASH FLOWS Q4 Year ended
SELECTED INFORMATION ---------------------- ------------------
(unaudited) Dec. 28, Dec. 29, Dec. 28, Dec. 29,
(in millions) 2003 2002 2003 2002
---------------------- ------------------
(Weyerhaeuser only,
excludes real estate &
related assets)
Net cash from
operations $701 $1,258
Cash paid for property
and equipment (241) (924)
Cash paid for
timberlands
reforestation (10) (36)
Cash received from
issuances of debt 1,015 14,142
Revolving credit
facilities, notes and
commercial paper
borrowings, net (230) (228)
Payments on debt (1,375) (8,224)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WEYERHAEUSER COMPANY
By /s/ Steven J. Hillyard
Its: Vice President and
Chief Accounting Officer
Date: July 25, 2003