Weyerhaeuser Reports Third Quarter Results

Weyerhaeuser Company (NYSE: WY) today reported net earnings of $157
million for the third quarter, or 29 cents per diluted share, on net
sales from continuing operations of $1.6 billion. This compares with net
earnings of $1.116 billion on net sales from continuing operations of
$1.5 billion for the same period last year.

Earnings for the third quarter of 2011 include after-tax gains of $91
million from special items, including an $83 million benefit related to
foreign tax credits. Excluding these items, the company reported net
earnings of $66 million, or 12 cents per diluted share. This compares
with net earnings before special items of $81 million in the third
quarter of 2010. Earnings for the third quarter of 2010 included special
items of $1.035 billion, primarily income tax adjustments related to
Weyerhaeuser's conversion to a real estate investment trust (REIT).

'All of our businesses faced challenging markets in the third quarter,
as the U.S. housing market languished and we experienced a slowdown in
demand from China,? said Dan Fulton, president and chief executive
officer. 'We remain focused on improving performance with today's level
of demand, while being prepared to flex all of our operations as markets
improve.?

3Q 2011 Performance - The segment's earnings declined $50 million
in the third quarter compared with the second. Earnings from disposition
of non-strategic timberlands declined to $4 million, compared with $32
million in the second quarter. Average selling prices for Western logs
were lower due to weakening Chinese and domestic markets. Selling prices
for Southern logs also declined. The segment's silviculture and road
costs increased seasonally. Fee harvest increased slightly compared with
the second quarter, as a decline in Western harvest volume was offset by
increased volume in the South.

4Q 2011 Outlook - Excluding earnings from disposition of
non-strategic timberlands, Weyerhaeuser expects lower earnings from the
Timberlands segment in the fourth quarter due to reduced fee harvest
volumes and lower selling prices for Western logs. The company also
anticipates seasonally higher road and silviculture costs.

3Q 2011 Performance - Results from continuing operations improved
$10 million compared with the second quarter, as reduced log costs were
partially offset by slightly lower sales volumes across most product
lines. Operating results for the discontinued hardwoods operations
declined $5 million compared with the second quarter. Weyerhaeuser
completed the sale of the hardwoods operations in the third quarter.

Third quarter special charges of $46 million are primarily comprised of
asset impairments due to the permanent closure of four engineered wood
products facilities, restructuring costs, and charges related to the
sale of the hardwoods operations. Second quarter included special
charges of $9 million related to the sale of the hardwoods operations.

4Q 2011 Outlook - Excluding special items, Weyerhaeuser
anticipates a larger loss from continuing operations in the fourth
quarter due to seasonally weaker market conditions. The company expects
lower selling prices for lumber and oriented strand board and reduced
sales volumes and operating rates across all product lines.

3Q 2011 Performance - Third quarter earnings improved $55 million
compared with second quarter. Maintenance costs decreased and production
increased as the segment had no annual maintenance outages, compared
with four planned outages in the second quarter. These improvements were
partially offset by lower selling prices for pulp.

4Q 2011 Outlook - Weyerhaeuser expects slightly lower earnings
from the Cellulose Fibers segment in the fourth quarter. The company
anticipates lower selling prices for pulp and slightly higher shipment
volumes.

3Q 2011 Performance - The segment's earnings increased $2 million
compared with the second quarter. Home closings increased 11 percent to
508 single-family homes. Average margins on homes closed improved due to
mix. Third quarter included no earnings from the sale of land and lots,
compared with $4 million in the second quarter.

4Q 2011 Outlook - Weyerhaeuser anticipates higher earnings from
single-family homebuilding operations in the fourth quarter due to
seasonally higher home closing volume.

Corporate and Other results from continuing operations declined $5
million, as foreign exchange losses reduced the segment's results by $18
million compared with the second quarter. This was offset primarily by
$7 million of additional gains related to share-based compensation, as a
decline in the company's stock price resulted in a larger mark-to-market
adjustment.

Third quarter includes pre-tax gains of $58 million from special items,
primarily the sale of Westwood Shipping Lines.

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 Oct. 28 to discuss third quarter results.

To access the conference call from within North America, dial (877)
296-9413 (access code ? 29869197) at least 15 minutes prior to the call.
Those calling from outside North America should dial 1-(706) 679-2458
(access code ? 29869197). Replays will be available for one week at
(800) 642-1687 (access code ? 29869197) from within North America and at
1-(706) 645-9291 (access code ? 29869197) 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 'Q3 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 for the fourth quarter of 2011, including reduced fee
harvest volumes, lower selling prices for Western logs, seasonally
higher road and silviculture expenses, and lower earnings in the
Timberlands segment excluding earnings from disposition of non-strategic
timberlands; seasonally weaker market conditions, lower selling prices
for lumber and oriented strand board, reduced sales volumes and
operating rates across all products lines, and a larger loss from
continuing operations in the Wood Products segment excluding special
items; lower selling prices for pulp, slightly higher shipment volumes,
and slightly lower earnings in the Cellulose Fiber segment; and higher
earnings from single-family homebuilding operations, and seasonally
higher home closing volume 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 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;
  
• 
  raw material prices;
  
• 
  energy prices;
  
• 
  transportation costs;
  
• 
  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 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.
Restrictions on international trade or tariffs imposed on imports also
may affect the company.