Excluding these items, the company reported net earnings of $42 million, or 20 cents per diluted share, in the second quarter of 2010.
SIGNIFICANT SECOND QUARTER 2009 AFTER-TAX ITEMS
After-Tax
Charge
Charge
per share
($ millions)
(dollars)
Alternative fuel mixture credits
$72
$0.34
Impairments and reserves for Real Estate assets
($36)
($0.17)
Corporate restructuring and asset impairments
($30)
($0.14)
Closures, restructuring and asset impairments, primarily for Wood Products
($14)
($0.07)
Litigation and insurance settlements
$14
$0.07
Gain on sale of closed facilities
$13
$0.06
Excluding these items, the company′s net loss was $125 million, or 59 cents per share, in the second quarter of 2009.
'In the second quarter we returned to profitability and all businesses were cash positive from operations,? said Dan Fulton, president and chief executive officer. 'I′m encouraged by our ability to profitably manage operations in an uncertain climate and with the lack of a sustained housing recovery. On July 11, we announced the final major milestone in our plan to become a REIT by declaring our special dividend. We look forward to the benefits that the REIT structure will bring to our shareholders.?
SUMMARY OF SECOND QUARTER FINANCIAL HIGHLIGHTS
Millions (except per share data)
2Q 2010
2Q 2009
Change
Net earnings (loss)
$14
($106)
$120
Earnings (loss) per diluted share
$0.07
($0.50)
$0.57
Net sales
$1,805
$1,391
$414
SEGMENT RESULTS FOR SECOND QUARTER
(Contributions (Charges) to Pre-Tax Earnings)
Millions
2Q 2010
2Q 2009
Change
Timberlands
$70
$66
$4
Wood Products
($3)
($162)
$159
Cellulose Fibers
$74
$100
($26)
Real Estate
$27
($50)
$77
TIMBERLANDS
2Q 2010
1Q 2010
Change
Contribution to pre-tax earnings (millions)
$70
$81
($11)
2Q 2010 Performance ? The segment′s earnings declined in the second quarter compared to the first, as lower earnings from disposition of non-strategic timberlands were partially offset by increased earnings from operations.
Second quarter included pre-tax gains of $14 million from disposition of non-strategic timberlands, compared to $31 million in the first quarter. Earnings from operations increased due to improved log price realizations, primarily in the west. This increase was partially offset by additional silviculture spending and seasonally higher road expenses for US operations. Losses related to international operations were $4 million in the second quarter, unchanged from first quarter levels. Weyerhaeuser continues to defer timber harvest.
3Q 2010 Outlook ? Excluding the disposition of non-strategic timberlands, Weyerhaeuser expects third quarter operating earnings from the segment to be lower than second quarter. The company expects lower log prices and seasonally higher silviculture costs.
WOOD PRODUCTS
2Q 2010
1Q 2010
Change
Charge to pre-tax earnings (millions)
($3)
($19)
$16
2Q 2010 Performance ? Excluding the pre-tax items noted below, the segment′s results improved by $52 million, resulting in a significantly smaller loss in the second quarter.
Second quarter included pre-tax gains of $8 million from the sale of assets.
First quarter included pre-tax gains of $40 million from the sale of certain British Columbia forest licenses and associated rights, and $4 million from the sale of a sawmill.
Although second quarter market conditions were extremely volatile, quarterly average sales realizations improved across nearly all product lines in the second quarter compared to the first. Sales volumes for most products increased moderately compared to very low first quarter levels. These improvements were partially offset by higher log costs.
Market conditions deteriorated substantially beginning in mid-May. Sales realizations for lumber and oriented strand board declined sharply. The company also experienced a considerable drop in sales volumes for engineered wood products. The segment reduced operating rates significantly in the latter half of the quarter to match lower market demand.
3Q 2010 Outlook ? Weyerhaeuser expects a significantly larger loss from the segment in the third quarter compared to the second quarter. The company expects average price realizations for lumber and oriented strand board to drop below first quarter levels.
CELLULOSE FIBERS
2Q 2010
1Q 2010
Change
Contribution to pre-tax earnings (millions)
$74
$19
$55
2Q 2010 Performance ? The segment′s earnings improved substantially in the second quarter compared to the first due to significantly higher average price realizations. Energy costs also declined. As in the first quarter, the segment incurred significant costs associated with planned annual maintenance, with outages at three mills compared to two in the first quarter.
3Q 2010 Outlook ? Weyerhaeuser expects third quarter earnings from the segment to improve substantially compared to the second quarter. As no annual maintenance outages are scheduled for the third quarter, the company anticipates lower maintenance costs and improved production. Average pulp price realizations are expected to increase from second quarter levels.
REAL ESTATE
2Q 2010
1Q 2010
Change
Contribution to pre-tax earnings (millions)
$27
$31
($4)
2Q 2010 Performance ? Second quarter earnings were comparable to first quarter, as a decline in sales of partnership interests was offset by higher earnings from single-family home building operations and increased land and lot sales.
Second quarter included earnings from single-family homebuilding operations of $14 million, compared to a loss of $5 million in the first quarter. Second quarter also included gains of $13 million on the sale of land and lots, compared to gains of $3 million in the first quarter. First quarter included gains of $33 million on the sale of two partnership interests.
Homebuilding operations closed 625 single-family homes in the second quarter, a 59 percent increase from first quarter. Margins on single-family homes closed also improved.
3Q 2010 Outlook ? Weyerhaeuser expects breakeven results from single-family homebuilding operations in the third quarter. The company expects fewer single-family home closings and slightly lower margins. Weyerhaeuser does not anticipate any significant land, lot or partnership sales in the third quarter.
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 2009, we employed approximately 14,900 employees in 10 countries. We have customers worldwide and generated $5.5 billion in sales in 2009. Our stock trades on the New York Stock exchange under the symbol WY. Additional information about us is available at
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 30 to discuss second quarter results.
To access the conference call from within North America, dial (877) 296-9413 (access code ? 53832851) at least 15 minutes prior to the call. Those calling from outside North America should dial 1-(706) 679-2458 (access code ? 53832851). Replays will be available for one week at (800) 642-1687 (access code ? 53832851) from within North America and at 1-(706) 645-9291 (access code ? 53832851) from outside North America.
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 third quarter of 2010, including the company′s markets; lower log prices, seasonally higher silviculture costs and lower operating earnings in Timberlands; lower sales realizations for lumber and oriented strand board, increased realizations for engineered wood products and lower earnings in the Wood Products segment; lower expenses for annual planned maintenance, increased production, higher pulp price realizations and earnings in the Cellulose Fiber segment; declines in home sale closings earnings in our single-family homebuilding operations; and adjustments in tax rates and tax liabilities related to a REIT conversion.
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 the level of interest rates, availability of financing for home mortgages, strength of the U.S. dollar, employment rates and housing starts;
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 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;
the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
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.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
(in millions, except per-share figures)
Q2
Year-to-date
Q1
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Net sales and revenues:
Forest Products
$
1,548
$
1,192
$
2,816
$
2,295
$
1,268
Real Estate
257
199
408
371
151
Total net sales and revenues
1,805
1,391
3,224
2,666
1,419
Costs and expenses:
Forest Products:
Costs of products sold
1,175
1,050
2,183
2,028
1,008
Alternative fuel mixture credits
-
(107
)
-
(107
)
-
Depreciation, depletion and amortization
115
125
231
247
116
Selling expenses
36
33
70
76
34
General and administrative expenses
80
83
162
179
82
Research and development expenses
8
15
16
28
8
Charges for restructuring and closures
2
46
2
128
-
Impairment of goodwill and other assets
-
20
1
38
1
Other operating income, net
(8
)
(77
)
(79
)
(71
)
(71
)
1,408
1,188
2,586
2,546
1,178
Real Estate:
Costs and operating expenses
189
164
310
315
121
Depreciation and amortization
5
4
8
8
3
Selling expenses
19
20
34
42
15
General and administrative expenses
17
17
33
45
16
Other operating costs, net
2
7
3
7
1
Impairment of long-lived assets and other related charges
1
53
2
95
1
233
265
390
512
157
Total costs and expenses
1,641
1,453
2,976
3,058
1,335
Operating income (loss)
164
(62
)
248
(392
)
84
Interest expense and other:
Forest Products:
Interest expense incurred
(105
)
(107
)
(211
)
(215
)
(106
)
Less: interest capitalized
-
2
1
4
1
Loss on early extinguishment of debt
(49
)
-
(49
)
-
-
Interest income and other
12
13
21
27
9
Equity in income (loss) of equity affiliates
(3
)
-
(9
)
3
(6
)
Real Estate:
Interest expense incurred
(6
)
(7
)
(12
)
(14
)
(6
)
Less: interest capitalized
5
7
10
14
5
Interest income and other
-
1
3
2
3
Equity in income of equity affiliates
3
11
39
13
36
Impairments of investments and other related charges
-
(6
)
-
(32
)
-
Earnings (loss) before income taxes
21
(148
)
41
(590
)
20
Income tax benefit (provision) (1)
(7
)
32
(45
)
208
(38
)
Net earnings (loss)
14
(116
)
(4
)
(382
)
(18
)
Less: (income) loss attributable to noncontrolling interests
-
10
(2
)
12
(2
)
Net earnings (loss) attributable to Weyerhaeuser common shareholders
$
14
$
(106
)
$
(6
)
$
(370
)
$
(20
)
Basic earnings (loss) per share attributable to Weyerhaeuser common shareholders
$
0.07
$
(0.50
)
$
(0.03
)
$
(1.75
)
$
(0.10
)
Diluted earnings (loss) per share attributable to Weyerhaeuser common shareholders
$
0.07
$
(0.50
)
$
(0.03
)
$
(1.75
)
$
(0.10
)
Dividends paid per share
$
0.05
$
0.25
$
0.10
$
0.50
$
0.05
Weighted average shares outstanding (in thousands):
Basic
211,600
211,356
211,521
211,328
211,440
Diluted
212,103
211,356
211,521
211,328
211,440
Common shares outstanding at end of period (in thousands)
211,609
211,357
211,609
211,357
211,557
(1)
First quarter 2010 includes $31 million in tax charges related to the elimination of the ability to claim a tax deduction for prescription drug benefits provided to retirees and reimbursed under the Medicare Part D subsidy beginning in 2013 and state tax rate changes.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
NET SALES AND REVENUES
(in millions)
Q2
Year-to-date
Q1
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Timberlands:
Logs:
West
$
125
$
87
$
207
$
169
$
82
South
37
43
64
76
27
Canada
-
-
9
2
9
Total logs
162
130
280
247
118
Pay as cut timber sales
9
7
17
14
8
Timberlands exchanges and non-strategic dispositions (1)
13
40
48
44
35
Higher and better use land sales (1)
7
4
12
5
5
Minerals, oil and gas
16
14
31
28
15
Products from international operations (2)
17
10
32
17
15
Other products
1
3
7
10
6
225
208
427
365
202
Wood Products:
Structural lumber
308
216
549
428
241
Engineered solid section
79
62
145
117
66
Engineered I-Joists
49
43
97
76
48
Oriented strand board
116
58
182
113
66
Softwood plywood
23
14
39
28
16
Hardwood lumber
64
56
118
107
54
Other products produced
38
39
73
82
35
Other products purchased for resale
112
106
190
185
78
789
594
1,393
1,136
604
Cellulose Fibers:
Pulp
354
255
675
536
321
Liquid packaging board
90
77
161
143
71
Other products
24
17
42
34
18
468
349
878
713
410
Real Estate:
Single family housing
233
180
376
342
143
Land
23
18
30
27
7
Other
1
1
2
2
1
257
199
408
371
151
Corporate and Other
66
41
118
81
52
$
1,805
$
1,391
$
3,224
$
2,666
$
1,419
(1)
Higher and better use timberlands and non-strategic dispositions are sold through Forest Products subsidiaries.
(2)
Includes logs, plywood and hardwood lumber harvested or produced by our international operations, primarily in South America.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
NET CONTRIBUTION TO PRE-TAX EARNINGS
(in millions)
Q2
Year-to-date
Q1
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Timberlands
$
70
$
66
$
151
$
106
$
81
Wood Products
(3
)
(162
)
(22
)
(428
)
(19
)
Cellulose Fibers
74
100
93
131
19
Real Estate
27
(50
)
58
(146
)
31
Corporate and Other
8
13
20
(30
)
12
$
176
$
(33
)
$
300
$
(367
)
$
124
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO NET CONTRIBUTION TO PRE-TAX EARNINGS
(in millions)
Year-to-date
Wood Products includes:
Q2 2010
Q2 2009
Q2 2010
Q2 2009
Q1 2010
Charges for restructuring and closures
$
-
$
-
$
-
$
(63
)
$
-
Goodwill impairments
-
-
-
(3
)
-
Other asset impairments
-
(16
)
-
(21
)
-
Reserve for litigation
-
-
-
(19
)
-
Gain on sale of operations
-
-
4
-
4
Gain on sale of property
8
1
48
1
40
Year-to-date
Cellulose Fibers includes:
Q2 2010
Q2 2009
Q2 2010
Q2 2009
Q1 2010
Charges for restructuring and closures
$
-
$
-
$
-
$
(1
)
$
-
Alternative fuel mixture credits
-
107
-
107
-
Year-to-date
Real Estate includes:
Q2 2010
Q2 2009
Q2 2010
Q2 2009
Q1 2010
Charges for restructuring and closures
$
-
$
(2
)
$
-
$
(6
)
$
-
Impairment of assets and other related charges - attributable to Weyerhaeuser shareholders
-
(50
)
-
(116
)
-
Impairment of assets and other related charges - attributable to noncontrolling interests
-
(9
)
-
(11
)
-
Sale of partnership interests
-
9
33
9
33
Net gain on land and lot sales
13
7
16
13
3
Year-to-date
Corporate and Other includes:
Q2 2010
Q2 2009
Q2 2010
Q2 2009
Q1 2010
Charges for restructuring and closures
$
-
$
(41
)
$
-
$
(59
)
$
-
Asset impairments
-
(4
)
-
(14
)
-
Net foreign exchange gains (losses)
(8
)
21
2
16
10
Pension and postretirement credits (1)
22
37
38
61
16
(1)
Excludes pension and postretirement included in charges for restructuring and closures.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
THIRD PARTY SALES VOLUMES
Q2
Year-to-date
Q1
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Timberlands (thousands):
Logs - cubic meters:
West
1,276
1,283
2,251
2,373
975
South
827
1,062
1,461
1,831
634
Canada
15
3
274
67
259
International
68
73
146
150
78
Wood Products (millions):
Structural lumber - board feet
884
885
1,645
1,766
761
Engineered solid section - cubic feet
4
4
8
7
4
Engineered I-Joists - lineal feet
41
36
85
62
44
Oriented strand board - square feet (3/8')
437
374
771
721
334
Softwood plywood - square feet (3/8')
75
55
135
106
60
Hardwood lumber - board feet
76
69
143
127
67
Cellulose Fibers (thousands):
Pulp - air-dry metric tons
413
395
835
804
422
Liquid packaging board - tons
83
77
150
141
67
Real Estate:
Single-family homes sold
491
790
1,111
1,245
620
Single-family homes closed
625
464
1,018
893
393
Single-family homes sold but not closed at end of period (backlog)
743
910
743
910
877
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
TOTAL PRODUCTION VOLUMES
Q2
Year-to-date
Q1
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Timberlands (thousands):
Fee depletion - cubic meters:
West
1,404
1,910
2,835
3,588
1,431
South
1,881
2,495
4,021
4,875
2,140
International
89
142
181
249
92
Wood Products (millions):
Structural lumber - board feet
846
792
1,647
1,653
801
Engineered solid section - cubic feet
4
3
8
5
4
Engineered I-Joists - lineal feet
41
24
82
44
41
Oriented strand board - square feet (3/8')
468
369
846
704
378
Softwood plywood - square feet (3/8')
64
37
112
65
48
Hardwood lumber - board feet
61
48
120
103
59
Cellulose Fibers (thousands):
Pulp - air-dry metric tons
414
368
851
783
437
Liquid packaging board - tons
81
77
150
142
69
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
June 30,
March 31,
Dec. 31,
2010
2010
2009
Assets
Forest Products
Current assets:
Cash and cash equivalents
$
1,839
$
2,143
$
1,862
Short-term investments
3
1
49
Receivables, less allowances
481
462
370
Receivables for taxes
51
34
602
Receivable from pension trust
-
96
146
Inventories
472
515
447
Prepaid expenses
91
93
82
Deferred tax assets
136
136
109
Total current assets
3,073
3,480
3,667
Property and equipment, net
3,423
3,539
3,611
Construction in progress
77
69
52
Timber and timberlands at cost, less depletion charged to disposals
4,022
4,016
4,010
Investments in and advances to equity affiliates
192
192
197
Goodwill
40
40
40
Deferred pension and other assets
948
904
756
Restricted assets held by special purpose entities
915
914
915
12,690
13,154
13,248
Real Estate
Cash and cash equivalents
7
17
7
Receivables, less allowances
42
34
32
Inventory
1,552
1,553
1,515
Investments in and advances to equity affiliates
18
18
17
Deferred tax assets
270
271
299
Other assets
123
122
126
Consolidated assets not owned
6
6
6
2,018
2,021
2,002
Total assets
$
14,708
$
15,175
$
15,250
Liabilities
Forest Products
Current liabilities:
Notes payable and commercial paper
$
1
$
1
$
4
Current maturities of long-term debt
3
3
3
Accounts payable
322
329
317
Accrued liabilities
663
603
631
Total current liabilities
989
936
955
Long-term debt
4,734
5,281
5,281
Deferred income taxes
1,642
1,578
1,538
Deferred pension, other postretirement benefits and other liabilities
1,854
1,942
2,000
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities
770
767
768
9,989
10,504
10,542
Real Estate
Long-term debt
390
390
402
Other liabilities
218
224
252
608
614
654
Total liabilities
10,597
11,118
11,196
Equity
Weyerhaeuser shareholders' interest
4,100
4,046
4,044
Noncontrolling interest
11
11
10
Total equity
4,111
4,057
4,054
Total liabilities and equity
$
14,708
$
15,175
$
15,250
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
STATEMENT OF CASH FLOWS
SELECTED INFORMATION
Q2
Year-to-date
Q1
(in millions)
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Net cash from operations
$
243
$
126
$
433
$
(310
)
$
190
Cash paid for property and equipment (1)
(32
)
(32
)
(77
)
(85
)
(45
)
Cash paid for timberlands reforestation (1)
(7
)
(7
)
(20
)
(22
)
(13
)
Acquisition of timberlands
(11
)
-
(20
)
(7
)
(9
)
Payments on debt
(597
)
(18
)
(614
)
(19
)
(17
)
Proceeds from the sale of assets and operations
15
29
130
37
115
Cash paid for dividends
(10
)
(53
)
(21
)
(106
)
(11
)
Repayments from (loan to) pension trust
96
-
146
(85
)
50
(1)
Capital spending is for Forest Products only and excludes Real Estate.
Forest Products Working Capital by Business Segment
June 30,
June 30,
March 31,
2010
2009
2010
Timberlands
$
39
$
36
$
24
Wood Products
308
279
360
Cellulose Fibers
268
284
244
Corporate and Other (1)
1,469
1,539
1,916
$
2,084
$
2,138
$
2,544
(1)
Corporate and Other segment holds payroll and other liabilities related to the segments and income taxes receivable related to Real Estate.
Forest Products Capital Expenditures by Business Segment
Q2
Year-to-date
Q1
June 30,
June 30,
June 30,
June 30,
March 31,
2010
2009
2010
2009
2010
Timberlands
$
15
$
21
$
35
$
49
$
20
Wood Products
5
4
7
29
2
Cellulose Fibers
19
10
58
18
39
Corporate and Other
-
4
1
11
1
$
39
$
39
$
101
$
107
$
62
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
APPENDIX
STATEMENT OF OPERATIONS BY BUSINESS SEGMENT
(Dollar amounts in millions)
Q2.2010
Wood
Cellulose
Corporate and
Total Forest
Timberlands
Products
Fibers
Other
Eliminations
Products
Real Estate
Total
Trade sales and revenues (unaffiliated customers)
$
225
$
789
$
468
$
66
$
-
$
1,548
$
257
$
1,805
Intersegment sales
123
20
-
5
(148
)
-
-
-
Net sales and revenues
348
809
468
71
(148
)
1,548
257
1,805
Costs and expenses:
Costs of products sold
238
698
339
48
(148
)
1,175
189
1,364
Depreciation, depletion and amortization
22
45
36
12
-
115
5
120
Selling expenses
2
30
3
1
-
36
19
55
General and administrative expenses
21
42
17
-
-
80
17
97
Research and development expenses
5
2
2
(1
)
-
8
-
8
Charges for restructuring and closures
-
1
-
1
-
2
-
2
Impairment of goodwill and other assets
-
-
-
-
-
-
1
1
Other operating costs (income), net
(9
)
(5
)
(5
)
11
-
(8
)
2
(6
)
Total costs and expenses
279
813
392
72
(148
)
1,408
233
1,641
Operating income (loss)
69
(4
)
76
(1
)
-
140
24
164
Interest income and other
1
1
-
10
-
12
-
12
Equity in income (loss) of equity affiliates
-
-
(2
)
(1
)
-
(3
)
3
-
Net contribution to earnings
$
70
$
(3
)
$
74
$
8
$
-
$
149
$
27
176
Interest expense, net of capitalized interest
(106
)
Loss on early extinguishment of debt
(49
)
Earnings before income taxes
21
Income tax provision
(7
)
Net earnings attributable to Weyerhaeuser common shareholders
$
14
Q2.2009
Wood
Cellulose
Corporate and
Total Forest
Timberlands
Products
Fibers
Other
Eliminations
Products
Real Estate
Total
Trade sales and revenues (unaffiliated customers)
$
208
$
594
$
349
$
41
$
-
$
1,192
$
199
$
1,391
Intersegment sales
115
14
-
3
(132
)
-
-
-
Net sales and revenues
323
608
349
44
(132
)
1,192
199
1,391
Costs and expenses:
Costs of products sold
212
630
307
33
(132
)
1,050
164
1,214
Alternative fuel mixture credits
-
-
(107
)
-
-
(107
)
-
(107
)
Depreciation, depletion and amortization
26
51
35
13
-
125
4
129
Selling expenses
2
26
4
1
-
33
20
53
General and administrative expenses
14
39
13
17
-
83
17
100
Research and development expenses
2
6
1
6
-
15
-
15
Charges for restructuring and closures
5
-
-
41
-
46
-
46
Impairment of goodwill and other assets
-
16
-
4
-
20
-
20
Real Estate impairments and other related charges
-
-
-
-
-
-
53
53
Other operating costs (income), net
(4
)
3
(1
)
(75
)
-
(77
)
7
(70
)
Total costs and expenses
257
771
252
40
(132
)
1,188
265
1,453
Operating income (loss)
66
(163
)
97
4
-
4
(66
)
(62
)
Interest income and other
-
1
1
11
-
13
1
14
Equity in income (loss) of equity affiliates
-
-
2
(2
)
-
-
11
11
Investment impairments and other related charges
-
-
-
-
-
-
(6
)
(6
)
Loss attributable to noncontrolling interests
-
-
-
-
-
-
10
10
Net contribution to earnings
$
66
$
(162
)
$
100
$
13
$
-
$
17
$
(50
)
(33
)
Interest expense, net of capitalized interest
(105
)
Loss before income taxes
(138
)
Income tax benefit
32
Net loss attributable to Weyerhaeuser common shareholders
$
(106
)
Q1.2010
Wood
Cellulose
Corporate and
Total Forest
Timberlands
Products
Fibers
Other
Eliminations
Products
Real Estate
Total
Trade sales and revenues (unaffiliated customers)
$
202
$
604
$
410
$
52
$
-
$
1,268
$
151
$
1,419
Intersegment sales
171
16
-
4
(191
)
-
-
-
Net sales and revenues
373
620
410
56
(191
)
1,268
151
1,419
Costs and expenses:
Costs of products sold
254
572
331
42
(191
)
1,008
121
1,129
Depreciation, depletion and amortization
23
45
36
12
-
116
3
119
Selling expenses
2
28
3
1
-
34
15
49
General and administrative expenses
18
39
17
8
-
82
16
98
Research and development expenses
4
1
2
1
-
8
-
8
Charges for restructuring and closures
1
-
-
(1
)
-
-
-
-
Impairment of goodwill and other assets
-
1
-
-
-
1
1
2
Other operating costs (income), net
(10
)
(46
)
(2
)
(13
)
-
(71
)
1
(70
)
Total costs and expenses
292
640
387
50
(191
)
1,178
157
1,335
Operating income (loss)
81
(20
)
23
6
-
90
(6
)
84
Interest income and other
-
1
-
8
-
9
3
12
Equity in income (loss) of equity affiliates
-
-
(4
)
(2
)
-
(6
)
36
30
Income attributable to noncontrolling interests
-
-
-
-
-
-
(2
)
(2
)
Net contribution to earnings
$
81
$
(19
)
$
19
$
12
$
-
$
93
$
31
124
Interest expense, net of capitalized interest
(106
)
Earnings before income taxes
18
Income tax provision
(38
)
Net loss attributable to Weyerhaeuser common shareholders
$
(20
)
Q2.2010 Year-to-date
Wood
Cellulose
Corporate and
Total Forest
Timberlands
Products
Fibers
Other
Eliminations
Products
Real Estate
Total
Trade sales and revenues (unaffiliated customers)
$
427
$
1,393
$
878
$
118
$
-
$
2,816
$
408
$
3,224
Intersegment sales
294
36
-
9
(339
)
-
-
-
Net sales and revenues
721
1,429
878
127
(339
)
2,816
408
3,224
Costs and expenses:
Costs of products sold
492
1,270
670
90
(339
)
2,183
310
2,493
Depreciation, depletion and amortization
45
90
72
24
-
231
8
239
Selling expenses
4
58
6
2
-
70
34
104
General and administrative expenses
39
81
34
8
-
162
33
195
Research and development expenses
9
3
4
-
-
16
-
16
Charges for restructuring and closures
1
1
-
-
-
2
-
2
Impairment of goodwill and other assets
-
1
-
-
-
1
2
3
Other operating costs (income), net
(19
)
(51
)
(7
)
(2
)
-
(79
)
3
(76
)
Total costs and expenses
571
1,453
779
122
(339
)
2,586
390
2,976
Operating income (loss)
150
(24
)
99
5
-
230
18
248
Interest income and other
1
2
-
18
-
21
3
24
Equity in income (loss) of equity affiliates
-
-
(6
)
(3
)
-
(9
)
39
30
Income attributable to noncontrolling interests
-
-
-
-
-
-
(2
)
(2
)
Net contribution to earnings
$
151
$
(22
)
$
93
$
20
$
-
$
242
$
58
300
Interest expense, net of capitalized interest
(212
)
Loss on early extinguishment of debt
(49
)
Earnings before income taxes
39
Income tax provision
(45
)
Net loss attributable to Weyerhaeuser common shareholders
$
(6
)
Q2.2009 Year-to-date
Wood
Cellulose
Corporate and
Total Forest
Timberlands
Products
Fibers
Other
Eliminations
Products
Real Estate
Total
Trade sales and revenues (unaffiliated customers)
$
365
$
1,136
$
713
$
81
$
-
$
2,295
$
371
$
2,666
Intersegment sales
286
33
-
5
(324
)
-
-
-
Net sales and revenues
651
1,169
713
86
(324
)
2,295
371
2,666
Costs and expenses:
Costs of products sold
478
1,226
589
59
(324
)
2,028
315
2,343
Alternative fuel mixture credits
-
-
(107
)
-
-
(107
)
-
(107
)
Depreciation, depletion and amortization
49
101
70
27
-
247
8
255
Selling expenses
4
62
8
2
-
76
42
118
General and administrative expenses
32
92
29
26
-
179
45
224
Research and development expenses
4
9
3
12
-
28
-
28
Charges for restructuring and closures
5
63
1
59
-
128
-
128
Impairment of goodwill and other assets
-
24
-
14
-
38
-
38
Real Estate impairments and other related charges
-
-
-
-
-
-
95
95
Other operating costs (income), net
(26
)
21
(4
)
(62
)
-
(71
)
7
(64
)
Total costs and expenses
546
1,598
589
137
(324
)
2,546
512
3,058
Operating income (loss)
105
(429
)
124
(51
)
-
(251
)
(141
)
(392
)
Interest income and other
1
1
1
24
-
27
2
29
Equity in income (loss) of equity affiliates
-
-
6
(3
)
-
3
13
16
Investment impairments and other related charges
-
-
-
-
-
-
(32
)
(32
)
Loss attributable to noncontrolling interests
-
-
-
-
-
-
12
12
Net contribution to earnings
$
106
$
(428
)
$
131
$
(30
)
$
-
$
(221
)
$
(146
)
(367
)
Interest expense, net of capitalized interest
(211
)
Loss before income taxes
(578
)
Income tax benefit
208
Net loss attributable to Weyerhaeuser common shareholders
