Weyerhaeuser Reports First Quarter Results

Weyerhaeuser Company (NYSE:WY) today reported net earnings of $99
million for the first quarter, or 18 cents per diluted share, on net
sales of $1.6 billion. This compares with a net loss of $20 million on
net sales of $1.4 billion for the same period last year.

Earnings for the first quarter of 2011 include an after-tax gain of $96
million on the previously announced sale of 82,000 acres of
non-strategic timberlands in southwest Washington. Excluding this
special item, the company reported net earnings of $3 million. This
compares to a net loss before special items of $15 million in the first
quarter of 2010.

'During the first quarter we continued to make progress in our drive to
improve our financial performance despite anemic housing market
conditions,? said Dan Fulton, president and chief executive officer. 'We
are leveraging our strength in the export markets to take advantage of
increased demand from Asia. Our businesses are running more efficiently
and our work to eliminate costs continues. We remain focused on making
further improvements to achieve our goal of delivering superior returns.?

Weyerhaeuser′s outstanding shares increased substantially from the first
quarter of 2010 due to a special dividend of approximately 324 million
shares of common stock and $560 million in cash, paid on Sept. 1, 2010
in conjunction with the company′s conversion to a REIT.

TIMBERLANDS

1Q 2011 Performance ? First quarter earnings before special items
increased $33 million compared with fourth quarter, as strong export
demand resulted in improved selling prices and volumes for western logs.
Fee harvest volumes increased, resulting in lower per unit logging
costs. These improvements were partially offset by higher fuel costs.

First quarter results include a pre-tax gain of $152 million from the
previously announced sale of 82,000 acres of non-strategic timberlands
located in southwest Washington.

2Q 2011 Outlook ? Excluding the disposition of non-strategic
timberlands,Weyerhaeuser expects slightly higher earnings in the
second quarter compared with the first. The company anticipates modestly
improved selling prices for western logs and higher harvest volumes to
be largely offset by higher fuel expenses and seasonally higher road and
silviculture costs.

WOOD PRODUCTS

1Q 2011 Performance ?The segment′s results before special items
improved $49 million compared with the fourth quarter. Selling prices
increased across most product lines. Per unit manufacturing costs
declined due to continued cost reductions and improved operating rates
for lumber and oriented strand board. This was partially offset by
increased log costs.

Fourth quarter included special items of $103 million for asset
impairments, closures and restructuring.

2Q 2011 Outlook ? Weyerhaeuser anticipates a smaller loss from
the segment in the second quarter due to seasonally higher sales volumes
and improved operating rates.

CELLULOSE FIBERS

1Q 2011 Performance ? First quarter earnings declined $52 million
compared with fourth quarter. Average selling prices for pulp were
slightly lower. Maintenance costs increased and production declined as
the segment completed two planned annual maintenance outages in the
first quarter, compared with one in the fourth quarter. Chemical, energy
and fiber costs also increased.

2Q 2011 Outlook ? Weyerhaeuser expects higher earnings from the
Cellulose Fibers segment in the second quarter. The company anticipates
higher selling prices, partially offset by increased maintenance costs
due to an increase in the number of scheduled annual maintenance outages.

REAL ESTATE

1Q 2011 Performance ? Earnings before special items declined $34
million compared with the fourth quarter due to seasonally fewer home
sale closings and lower margins. Home sale closings decreased 40 percent
compared with the fourth quarter to 363 single-family homes. Margins on
homes closed declined due to mix.

First quarter earnings included $1 million from the sale of land and
lots, compared with $6 million from sale of land, lots and apartments in
the fourth quarter.

Fourth quarter included special items of $20 million for asset
impairments and restructuring.

2Q 2011 Outlook ? Weyerhaeuser anticipates a small profit from
single-family homebuilding operations in the second quarter due to a
seasonal increase in home sale closings.

CORPORATE AND OTHER

Earnings before special items declined $43 million compared with the
fourth quarter, primarily due to non-cash pension and postretirement
charges and higher share-based compensation expense.

First quarter segment results included pension and postretirement
charges of $12 million, as the company amortized actuarial losses
deferred in prior years. Fourth quarter included pension and
postretirement credits of $19 million.

Share-based compensation expense for the segment increased $8 million
compared with the fourth quarter, primarily due to a larger
mark-to-market adjustment resulting from an increase in the company′s
stock price.

Fourth quarter special items of $39 million included a gain on the sale
of five short line railroads, partially offset by charges for
restructuring, closures and impairments.

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 2010, we
employed approximately 14,000 employees in 10 countries. We have
customers worldwide and generated $6.6 billion in sales in 2010. Our
stock trades on the New York Stock exchange under the symbol WY.
Additional information about us is available at http://www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m.
Eastern) on April 29 to discuss first quarter results.

To access the conference call from within North America, dial
877-296-9413 (access code ? 29868744) at least 15 minutes prior to the
call. Those calling from outside North America should dial
1-706-679-2458 (access code ? 29868744). Replays will be available for
one week at 800-642-1687 (access code ? 29868744) from within North
America and at 1-706-645-9291 (access code ? 29868744) from outside
North America.

The call is being webcast through Weyerhaeuser′s Internet site at http://investor.weyerhaeuser.com
and is accessible by selecting the 'Q1 2011 Earnings Conference Call?
link.

The webcast is available through the Thomson StreetEvents Network to
both institutional and individual investors. Individual investors can
listen to the call at http://www.fulldisclosure.com,
Thomson′s individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson′s
password-protected site, StreetEvents (http://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 during the second quarter of 2011, including housing market
conditions; market challenges for our Timberlands, Wood Products and
Real Estate segments; higher selling prices for western logs and higher
harvest volumes in Timberlands, partially offset by higher fuel expenses
and seasonally higher road and silviculture costs; improved operating
rates, higher selling prices and cost reductions in the Wood Products
segment, partially offset by increased log costs; higher selling prices,
partially offset by increased scheduled maintenance costs in the
Cellulose Fiber segment; and a seasonal increase in home sale closings
and lower margins and average prices in our single-family homebuilding
operations.

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 economic conditions;
  
• 
  performance of the company′s manufacturing operations, including
  maintenance requirements;
  
• 
  raw material prices;
  
• 
  energy prices;
  
• 
  transportation costs;
  
• 
  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 the Japanese disaster on demand for company products;
  
• 
  the effect of weather;
  
• 
  the risk of loss from fires, floods, windstorms, hurricanes, pest
  infestation and other natural disasters;
  
• 
  federal tax policies;
  
• 
  the effect of forestry, land use, environmental and other governmental
  regulations;
  
• 
  legal proceedings;
  
• 
  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;
  
• 
  performance of pension fund investments and related derivatives; and
  
• 
  other factors described under 'Risk Factors? in the Company′s annual
  report on Form  10-K.
  

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