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Last updated on April 17, 2014 at 8:20 EDT

Weyerhaeuser Reports Fourth Quarter, Full Year Results

January 25, 2013

FEDERAL WAY, Wash., Jan. 25, 2013 /PRNewswire/ — Weyerhaeuser Company (NYSE: WY) today reported net earnings of $143 million, or 26 cents per diluted share, for the fourth quarter. This compares with net earnings of $65 million, or 12 cents per diluted share, and net earnings before special items of $77 million, or 14 cents per diluted share, for the same period last year. Net sales for the fourth quarter of 2012 totaled $2.0 billion, compared with net sales of $1.6 billion for the fourth quarter of 2011.

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

For the full year 2012, Weyerhaeuser reported net earnings of $385 million, or 71 cents per diluted share, on net sales of $7.1 billion. This compares with net earnings of $331 million, or 61 cents per diluted share, on net sales from continuing operations of $6.2 billion for the full year 2011.

“As I look forward to 2013, I am excited by the opportunity to build on the momentum of this past year,” said Dan Fulton, president and chief executive officer. “In 2012, we began to realize the results of our work to position the company to capture the benefits of an improving housing market. As a result, our bottom line improved significantly, the Board increased the dividend, and our total shareholder return exceeded 50 percent, one of the best in our industry.”

    WEYERHAEUSER FINANCIAL HIGHLIGHTS            2012 2011
    ---------------------------------            ---- ----
    (millions, except per share data)          3Q     4Q    4Q
    --------------------------------          ---    ---   ---
    Net sales                                    $1,772 $2,000 $1,615
    ---------                                    ------ ------ ------
    Net earnings                                    $117   $143   $65
    ------------                                    ----   ----   ---
    Weighted average shares outstanding,
     diluted                                         542    547   538
    ------------------------------------             ---    ---   ---
    Earnings per diluted share                     $0.22  $0.26 $0.12
    --------------------------                     -----  ----- -----
    Net earnings before special items               $117   $143   $77
    ---------------------------------               ----   ----   ---
    Earnings per diluted share before special
     items                                         $0.22  $0.26 $0.14
    -----------------------------------------      -----  ----- -----
    Net cash from operations                        $122   $252  $147
    ------------------------                        ----   ----  ----
    Net change in cash and cash
     equivalents(1)                                ($253)  $290  ($18)
    ---------------------------                    -----   ----  ----
    Cash and cash equivalents at end of
     period(1)                                      $608   $898  $953
    -----------------------------------             ----   ----  ----

(1) Net change in cash and cash equivalents for the third quarter of 2012 includes $181 million for debt repayment and a $97 million payment on a note related to a timber monetization undertaken in 2002. Fourth quarter of 2012 includes $110 million received upon maturity of financial investments related to that timber monetization.

TIMBERLANDS

    FINANCIAL HIGHLIGHTS (millions)  3Q 2012      4Q 2012      Change
    ------------------------------   -------      -------      ------
    Net sales                                $267         $298        $31
    ---------                                ----         ----        ---
    Contribution to pre-tax earnings          $80          $95        $15
    --------------------------------          ---          ---        ---

4Q 2012 Performance – Earnings increased compared with the third quarter due to improved selling prices and stronger market demand for export and domestic logs. Fee harvest volumes increased in both the West and the South. Earnings from disposition of non-strategic timberlands decreased $5 million.

1Q 2013 Outlook – Excluding dispositions of non-strategic timberlands, Weyerhaeuser expects earnings from the segment to be comparable to the fourth quarter. The company anticipates improved selling prices for Western domestic and export logs, offset by a seasonal decline in Southern fee harvest volumes. Earnings from dispositions of non-strategic timberlands are expected to decrease.

WOOD PRODUCTS

    FINANCIAL HIGHLIGHTS (millions)  3Q 2012      4Q 2012      Change
    ------------------------------   -------      -------      ------
    Net sales                                $816         $832         $16
    ---------                                ----         ----         ---
    Contribution to pre-tax earnings          $59          $38        ($21)
    --------------------------------          ---          ---        ----

4Q 2012 Performance – Stronger than expected market conditions for oriented strand board and lumber resulted in higher average selling prices and sales volumes for those products. However, all product lines experienced higher raw material costs. Engineered wood products operating rates decreased due to maintenance and seasonally weaker market conditions.

1Q 2013 Outlook – Weyerhaeuser anticipates significantly higher earnings from the Wood Products segment in the first quarter. The company expects increased average sales realizations for lumber and oriented strand board and seasonally higher sales volumes across all product lines. Unit manufacturing costs are expected to decline due to improved operating rates, partially offset by higher raw material costs.

CELLULOSE FIBERS

    FINANCIAL HIGHLIGHTS (millions)  3Q 2012      4Q 2012      Change
    ------------------------------   -------      -------      ------
    Net sales                                $459         $463          $4
    ---------                                ----         ----         ---
    Contribution to pre-tax earnings          $78          $61        ($17)
    --------------------------------          ---          ---        ----

4Q 2012 Performance - Average sales realizations for pulp declined, and chemical and energy costs increased. Sales realizations and volumes for liquid packaging board decreased due to operational issues that are now resolved. These factors were partially offset by lower maintenance costs and improved pulp mill productivity due to fewer days of scheduled annual maintenance outages.

1Q 2013 Outlook – Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates increased maintenance expenses, partially offset by slightly higher average selling prices for pulp.

REAL ESTATE

    FINANCIAL HIGHLIGHTS (millions)  3Q 2012      4Q 2012      Change
    ------------------------------   -------      -------      ------
    Net sales                                $230         $407        $177
    ---------                                ----         ----        ----
    Contribution to pre-tax earnings          $17          $81         $64
    --------------------------------          ---          ---         ---

4Q 2012 Performance – Fourth quarter included earnings of $16 million from single-family homebuilding and $65 million from land sales, compared with $17 million from single-family homebuilding in the third quarter. Home closings increased seasonally to 842 single-family homes. Average margins on homes closed declined to 20 percent due to mix, and selling costs increased due to the additional closing volume.

At the end of the fourth quarter the backlog of homes sold, but not closed, totaled 774 units, compared with 429 units one year ago.

1Q 2013 Outlook – Weyerhaeuser anticipates a slight profit from single-family homebuilding in the first quarter. Home closings should decline seasonally to approximately 500 homes, with margins comparable to fourth quarter. Selling expenses are expected to decrease due to lower closing volumes.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world’s largest private owners of timberlands, began operations in 1900. We own or control more than 6 million acres of timberlands, primarily in the U.S., and manage another 14 million acres under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2012, we generated $7.1 billion in sales and employed approximately 13,200 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our stock trades on the New York Stock exchange under the symbol WY. More information about us is available at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Jan. 25 to discuss fourth quarter results.

To access the conference call from within North America, dial 877-296-9413 (access code – 86484844) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86484844). Replays will be available for one week at 855-859-2056 (access code – 86484844) from within North America and at 404-537-3406 (access code – 86484844) 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 “Q4 2012 Weyerhaeuser Co. 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 www.fulldisclosure.com, Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected site, StreetEvents (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 first quarter of 2013, including improved selling prices for Western domestic and export logs, a seasonal decline in Southern fee harvest volumes, decreased earnings from dispositions of non-strategic timberlands, and comparable earnings from the Timberlands segment excluding disposition of non-strategic timberlands; increased average sales realizations for lumber and oriented strand board, seasonally higher sales volumes across all product lines, improved operating rates, higher raw material costs, and significantly higher earnings from the Wood Products segment; increased maintenance expenses, slightly higher average selling prices for pulp, and lower earnings from the Cellulose Fibers segment; and seasonally lower home closings, comparable margins, decreased selling expenses due to lower closing volumes, and a slight profit from single-family homebuilding 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 level of competition from domestic and foreign producers;
  • raw material prices;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
  • 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.

    Weyerhaeuser Company                                                                                                                                                                                  Exhibit 99.2
    Q4.2012 Analyst Package
    Preliminary results, subject to audit
                                                                                                               Consolidated Statement of Operations

    in millions                                        Q1                   Q2                                  Q3                                  Q4                          Year-to-date
                                                      ---                  ---                                 ---                                 ---                          ------------
                                                    Mar 31,              Jun 30,                             Sep 30,                             Dec 31,                          Dec 31,           Dec 31,            Dec 31,
                                                               2012                  2012                                2012                                2012                             2011              2012              2011
                                                               ----                  ----                                ----

    Net sales and revenues                                   $1,494                $1,793                              $1,772                              $2,000                           $1,615            $7,059            $6,216
    Cost of products sold                                     1,290                 1,516                               1,424                               1,580                            1,317             5,810             5,120

    Gross margin                                                204                   277                                 348                                 420                              298             1,249             1,096
    Selling expenses                                             42                    47                                  49                                  56                               45               194               178
    General and
     administrative expenses                                    108                    95                                 107                                 126                              104               436               423
    Research and development
     expenses                                                     7                     8                                   8                                   9                                9                32                30
    Charges for
     restructuring, closures
     and impairments                                             12                     4                                  10                                   6                               31                32                83
    Other operating income,
     net                                                        (66)                  (53)                                (28)                                (33)                             (22)             (180)             (212)
                                                                ---                   ---                                 ---                                 ---                              ---              ----              ----
    Operating income                                            101                   176                                 202                                 256                              131               735               594
    Interest income and other                                    12                    11                                  15                                  14                               12                52                47
    Interest expense, net of
     capitalized interest                                       (87)                  (86)                                (87)                                (88)                             (88)             (348)             (384)
                                                                ---                   ---                                 ---                                 ---                              ---              ----              ----
    Earnings from continuing
     operations before income
     taxes                                                       26                   101                                 130                                 182                               55               439               257
    Income taxes                                                 15                   (17)                                (13)                                (40)                              10               (55)               62
                                                                ---                   ---                                 ---                                 ---                              ---               ---               ---
    Earnings from continuing
     operations                                                  41                    84                                 117                                 142                               65               384               319
    Earnings from
     discontinued operations,
     net of income taxes                                          -                     -                                   -                                   -                                -                 -                12
                                                                ---                   ---                                 ---                                 ---                              ---               ---               ---
    Net earnings                                                 41                    84                                 117                                 142                               65               384               331
    Add: net loss
     attributable to
     noncontrolling interests                                     -                     -                                   -                                   1                                -                 1                 -
                                                                ---                   ---                                 ---                                 ---                              ---               ---               ---
    Net earnings attributable
     to Weyerhaeuser common
     shareholders                                               $41                   $84                                $117                                $143                              $65              $385              $331
                                                                ===                   ===                                ====                                ====                              ===              ====              ====

                                                                                                               Per Share Information

    in millions                                        Q1                   Q2                                  Q3                                  Q4                          Year-to-date
                                                      ---                  ---                                 ---                                 ---                          ------------
                                                    Mar 31,              Jun 30,                             Sep 30,                             Dec 31,                          Dec 31,           Dec 31,            Dec 31,
                                                               2012                  2012                                2012                                2012                             2011              2012              2011
                                                               ----                  ----                                ----

    Earnings per share attributable to Weyerhaeuser
     common shareholders, basic:
    Continuing operations                                     $0.08                 $0.16                               $0.22                               $0.26                            $0.12             $0.71             $0.60
    Discontinued operations                                       -                     -                                   -                                   -                                -                 -              0.02
    Net earnings per share                                    $0.08                 $0.16                               $0.22                               $0.26                            $0.12             $0.71             $0.62
                                                              =====                 =====                               =====                               =====                            =====             =====             =====
    Earnings per share attributable to Weyerhaeuser
     common shareholders, diluted:
    Continuing operations                                     $0.08                 $0.16                               $0.22                               $0.26                            $0.12             $0.71             $0.59
    Discontinued operations                                       -                     -                                   -                                   -                                -                 -              0.02
    Net earnings per share                                    $0.08                 $0.16                               $0.22                               $0.26                            $0.12             $0.71             $0.61
                                                              =====                 =====                               =====                               =====                            =====             =====             =====
    Dividends paid per share                                  $0.15                 $0.15                               $0.15                               $0.17                            $0.15             $0.62             $0.60
    Weighted average shares outstanding (in
     thousands):
    Basic                                                   537,368               537,966                             539,094                             542,101                          536,432           539,140           537,534
    Diluted                                                 539,728               540,033                             542,311                             547,137                          538,119           542,310           539,879
    Common shares outstanding
     at end of period (in
     thousands)                                             537,409               537,526                             540,672                             542,393                          536,425           542,393           536,425

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

    in millions                                        Q1                   Q2                                  Q3                                  Q4                          Year-to-date
                                                      ---                  ---                                 ---                                 ---                          ------------
                                                    Mar 31,              Jun 30,                             Sep 30,                             Dec 31,                          Dec 31,           Dec 31,            Dec 31,
                                                               2012                  2012                                2012                                2012                             2011              2012              2011
                                                               ----                  ----                                ----

    Operating income                                           $101                  $176                                $202                                $256                             $131              $735              $594
    Depreciation, depletion
     and amortization                                           113                   113                                 112                                 118                              117               456               476
    Non-operating pension
     and postretirement costs                                     7                     7                                   7                                   8                                5                29                26
    Special items                                               (38)                  (57)                                  -                                   -                               19               (95)             (100)
    Capitalized interest
     included in cost of
     products sold                                                3                    19                                   6                                   9                               12                37                29
    Adjusted EBITDA,
     excluding special items*                                  $186                  $258                                $327                                $391                             $284            $1,162            $1,025
                                                               ====                  ====                                ====                                ====                             ====            ======            ======
    * Non-GAAP measure

    Weyerhaeuser Company
    Q4.2012 Analyst Package
    Preliminary results, subject to audit
                                                             Consolidated Balance Sheet

    in millions                           Mar 31,         Jun 30,                       Sep 30,         Dec 31,         Dec 31,
                                                     2012             2012                         2012            2012            2011
                                                     ----             ----                                         ----            ----

    ASSETS
    ------
    Forest Products:
    Current assets:
    Cash and cash equivalents                        $726             $857                         $602            $893            $950
    Receivables, less allowances                      479              488                          504             468             468
    Receivables for taxes                              24                6                           97              95              22
    Inventories                                       517              487                          512             531             476
    Prepaid expenses                                   80               86                           83              83              68
    Deferred tax assets                               113              100                          117              65              81
                                                      ---              ---                          ---             ---             ---
    Total current assets                            1,939            2,024                        1,915           2,135           2,065
    Property and equipment, net                     2,829            2,770                        2,759           2,859           2,901
    Construction in progress                          192              208                          220              50             145
    Timber and timberlands at cost,
     less depletion charged to
     disposals                                      3,970            3,963                        3,967           3,961           3,978
    Investments in and advances to
     equity affiliates                                189              187                          188             192             192
    Goodwill                                           40               40                           40              40              40
    Deferred tax assets                                50               48                           56             189              36
    Other assets                                      442              435                          352             358             444
    Assets held by variable interest
     entities                                         914              916                          914             805             916
                                                      ---              ---                          ---             ---
                                                   10,565           10,591                       10,411          10,589          10,717
                                                   ------           ------                       ------          ------          ------
    Real Estate:
    Cash and cash equivalents                           2                4                            6               5               3
    Receivables, less allowances                       30               38                           36              72              41
    Real estate in process of
     development and for sale                         606              581                          602             658             555
    Land being processed for
     development                                      943              959                          982             904             936
    Investments in and advances to
     equity affiliates                                 19               20                           20              21              21
    Deferred tax assets                               246              238                          233             202             240
    Other assets                                      113               89                           98              94             113
    Assets held by variable interest
     entities                                           -                3                            6              47               8
                                                      ---              ---                          ---             ---             ---
                                                    1,959            1,932                        1,983           2,003           1,917
    Total assets                                  $12,524          $12,523                      $12,394         $12,592         $12,634
                                                  =======          =======                      =======         =======         =======

    LIABILITIES AND EQUITY
    ----------------------
    Forest Products:
    Current liabilities:
    Current maturities of long-term
     debt                                            $167             $184                         $340            $340             $12
    Accounts payable                                  343              360                          356             329             336
    Accrued liabilities                               536              576                          558             561             593
                                                      ---              ---                          ---             ---             ---
    Total current liabilities                       1,046            1,120                        1,254           1,230             941
    Long-term debt                                  4,026            4,005                        3,842           3,842           4,181
    Deferred income taxes                             158              140                          124               -             129
    Deferred pension and other
     postretirement benefits                        1,470            1,429                        1,378           1,936           1,467
    Other liabilities                                 407              400                          477             493             408
    Liabilities (nonrecourse to the
     company) held by variable
     interest entities                                775              778                          680             681             776
                                                      ---              ---                          ---             ---             ---
                                                    7,882            7,872                        7,755           8,182           7,902
                                                    -----            -----                        -----           -----           -----
    Real Estate:
    Long-term debt                                    283              283                          109             109             285
    Other liabilities                                 154              171                          177             187             172
    Liabilities (nonrecourse to the
     company) held by variable
     interest entities                                  -                -                            -               1               8
                                                      ---              ---                          ---             ---             ---
                                                      437              454                          286             297             465

    Total liabilities                               8,319            8,326                        8,041           8,479           8,367
                                                    -----            -----                        -----           -----           -----
    Equity:
    Total Weyerhaeuser shareholders'
     interest                                       4,197            4,186                        4,340           4,070           4,263
    Noncontrolling interests                            8               11                           13              43               4
                                                      ---              ---                          ---             ---             ---
    Total equity                                    4,205            4,197                        4,353           4,113           4,267
    Total liabilities and equity                  $12,524          $12,523                      $12,394         $12,592         $12,634
                                                  =======          =======                      =======         =======         =======

    Weyerhaeuser Company
    Q4.2012 Analyst Package
    Preliminary results, subject to audit
                                                                          Consolidated Statement of Cash Flows

    in millions                                 Q1             Q2                    Q3                           Q4         Year-to-date
                                                ---           ---                   ---                          ---         ------------
                                              Mar 31,       Jun 30,               Sep 30,                      Dec 31,         Dec 31,         Dec 31,       Dec 31,
                                                      2012          2012                    2012                       2012              2011          2012           2011

    Cash flows from operations:
    Net earnings                                       $41           $84                    $117                       $142               $65          $384           $331
    Noncash charges (credits) to income:
    Depreciation, depletion and
     amortization                                      113           113                     112                        118               117           456            480
    Deferred income taxes, net                          (6)           13                      15                         40                51            62            (26)
    Pension and other postretirement
     benefits                                          (28)          (30)                     19                         20                21           (19)            81
    Share-based compensation expense                    10             8                      10                          9                 6            37             25
    Charges for impairment of assets                     8             4                       7                          5                19            24             56
    Net gains on dispositions of assets                 (7)          (10)                    (22)                       (30)               (9)          (69)          (236)
    Foreign exchange transaction
     (gains) losses                                     (7)            9                     (10)                         2                (5)           (6)             6
    Change in:
    Receivables less allowances                         (5)          (18)                    (10)                         -               (19)          (33)           (53)
    Receivable for taxes                                (2)           18                      (1)                         2               (18)           17            (37)
    Inventories                                        (40)           28                     (22)                       (20)               (6)          (54)           (46)
    Real estate and land                               (55)            7                     (47)                        20                37           (75)           (12)
    Prepaid expenses                                    (8)          (12)                      2                          2                17           (16)             3
    Accounts payable and accrued
     liabilities                                       (56)           65                       1                         (5)              (59)            5           (133)
    Deposits on land positions and
     other assets                                        -            22                     (11)                        (7)                5             4             (4)
    Pension and postretirement
     contributions                                     (35)          (33)                    (41)                       (36)              (79)         (145)          (143)
    Other                                               17            (1)                      3                        (10)                4             9             (1)
                                                       ---           ---                     ---                        ---               ---           ---            ---
    Net cash from operations                           (60)          267                     122                        252               147           581            291
                                                       ---           ---                     ---                        ---               ---           ---            ---

    Cash flows from investing activities:
    Property and equipment                             (54)          (68)                    (75)                       (59)              (76)         (256)          (212)
    Timberlands reforestation                          (10)           (7)                     (5)                        (7)               (6)          (29)           (29)
    Proceeds from sale of assets                         6            18                      12                         44                 9            80            362
    Proceeds of investments (payments
     of liabilities) held by special
     purpose entities                                    -             -                     (97)                       110                 -            13              -
    Other                                                1            (1)                     (1)                         1                 7             -              1
                                                       ---           ---                     ---                        ---               ---           ---            ---
    Cash from investing activities                     (57)          (58)                   (166)                        89               (66)         (192)           122
                                                       ---           ---                    ----                        ---               ---          ----            ---

    Cash flows from financing activities:
    Cash dividends                                     (81)          (80)                    (81)                       (92)              (81)         (334)          (323)
    Change in book overdrafts                          (29)            9                     (12)                         -                28           (32)             2
    Payments on debt                                    (2)           (4)                   (181)                         -               (33)         (187)          (583)
    Exercises of stock options                           5             2                      66                         39                 1           112             38
    Repurchase of common stock                           -             -                       -                          -               (13)            -            (37)
    Other                                               (1)           (3)                     (1)                         2                (1)           (3)           (24)
                                                       ---           ---                     ---                        ---               ---           ---            ---
    Cash from financing activities                    (108)          (76)                   (209)                       (51)              (99)         (444)          (927)
                                                      ----           ---                    ----                        ---               ---          ----           ----

    Net change in cash and cash
     equivalents                                      (225)          133                    (253)                       290               (18)          (55)          (514)
    Cash and cash equivalents at
     beginning of period                               953           728                     861                        608               971           953          1,467
                                                       ---           ---                     ---                        ---               ---           ---          -----
    Cash and cash equivalents at end of
     period                                           $728          $861                    $608                       $898              $953          $898           $953
                                                      ====          ====                    ====                       ====              ====          ====           ====
    Cash paid (received) during the year for:
    Interest, net of amount capitalized               $116           $57                    $117                        $51               $58          $341           $420
    Income taxes                                      $(10)          $(5)                     $1                         $1                $7          $(13)           $28

    Weyerhaeuser Company                                                                                                                                    Total Company Statistics
    Q4.2012 Analyst Package
    Preliminary results, subject to audit
                                                                                                 Special Items Included in Net Earnings

    in millions                                          Q1             Q2                              Q3                               Q4           Year-to-date
                                                         ---            ---                             ---                              ---          ------------
                                                       Mar 31,        Jun 30,                         Sep 30,                          Dec 31,           Dec 31,                     Dec 31,        Dec 31,
                                                                2012           2012                             2012                            2012               2011                       2012           2011
                                                                ----           ----

    Net earnings                                                 $41            $84                             $117                            $143                $65                       $385           $331
    Income tax adjustments                                         -              -                                -                               -                  -                          -            (83)
    Gain on sale of 82,000 acres
     of non-strategic
     timberlands                                                   -              -                                -                               -                  -                          -            (96)
    Loss on early extinguishment
     of debt                                                       -              -                                -                               -                  -                          -             16
    Restructuring, impairments
     and other charges                                            10              -                                -                               -                 12                         10             36
    Gain on postretirement plan
     amendment                                                   (34)           (33)                               -                               -                  -                        (67)             -
    Gain on sale of properties                                     -             (4)                               -                               -                  -                         (4)            (9)
    Tax settlements                                               (8)             -                                -                               -                  -                         (8)             -
    Charges related to the sale
     of hardwoods                                                  -              -                                -                               -                  -                          -             14
    Gain on sale of Westwood
     Shipping Lines                                                -              -                                -                               -                  -                          -            (31)
                                                                 ---            ---                              ---
    Net earnings before special
     items                                                        $9            $47                             $117                            $143                $77                       $316           $178
                                                                 ===            ===                             ====                            ====                ===                       ====           ====

                                                         Q1             Q2                              Q3                               Q4           Year-to-date
                                                         ---            ---                             ---                              ---          ------------
                                                       Mar 31,        Jun 30,                         Sep 30,                          Dec 31,           Dec 31,                     Dec 31,        Dec 31,
                                                                2012           2012                             2012                            2012               2011                       2012           2011
                                                                ----           ----

    Net earnings per diluted
     share                                                     $0.08          $0.16                            $0.22                           $0.26              $0.12                      $0.71          $0.61
    Income tax adjustments                                         -              -                                -                               -                  -                          -          (0.15)
    Gain on sale of 82,000 acres
     of non-strategic
     timberlands                                                   -              -                                -                               -                  -                          -          (0.18)
    Loss on early extinguishment
     of debt                                                       -              -                                -                               -                  -                          -           0.03
    Restructuring, impairments
     and other charges                                          0.02              -                                -                               -               0.02                       0.02           0.07
    Gain on postretirement plan
     amendment                                                 (0.06)         (0.06)                               -                               -                  -                      (0.12)             -
    Gain on sale of properties                                     -          (0.01)                               -                               -                  -                      (0.01)         (0.02)
    Tax settlements                                            (0.02)             -                                -                               -                  -                      (0.02)             -
    Charges related to the sale
     of hardwoods                                                  -              -                                -                               -                  -                          -           0.03
    Gain on sale of Westwood
     Shipping Lines                                                -              -                                -                               -                  -                          -          (0.06)
                                                                 ---            ---                              ---                             ---                ---
    Net earnings before special
     items per diluted share                                   $0.02          $0.09                            $0.22                           $0.26              $0.14                      $0.58          $0.33
                                                               =====          =====                            =====                           =====              =====                      =====          =====

                                                                              Selected Total Company Items, Excluding Discontinued Operations

    in millions                                          Q1             Q2                              Q3                               Q4           Year-to-date
                                                         ---            ---                             ---                              ---          ------------
                                                       Mar 31,        Jun 30,                         Sep 30,                          Dec 31,           Dec 31,                     Dec 31,        Dec 31,
                                                                2012           2012                             2012                            2012               2011                       2012           2011
                                                                ----           ----

    Depreciation, depletion and amortization:
    Cost of products sold                                       $102           $103                             $102                            $109               $104                       $416           $422
    Selling, general and
     administrative expenses                                      11             10                               10                               9                 13                         40             54
    Total depreciation, depletion
     and amortization                                           $113           $113                             $112                            $118               $117                       $456           $476
                                                                ====           ====                             ====                            ====               ====                       ====           ====

    Pension and postretirement costs:
    Pension and postretirement
     costs allocated to business
     segments                                                    $13            $14                              $12                             $12                $12                        $51            $46
    Pension and postretirement
     costs not allocated                                           7              7                                7                               8                  5                         29             26
    Total company pension and
     postretirement costs                                        $20            $21                              $19                             $20                $17                        $80            $72
                                                                 ===            ===                              ===                             ===                ===                        ===            ===

    Total decrease (increase) in
     Forest Products working
     capital (1)                                               $(148)          $103                             $(29)                           $(85)              $(41)                     $(159)         $(211)
    Cash spent for capital
     expenditures                                               $(64)          $(75)                            $(80)                           $(66)              $(82)                     $(285)         $(238)
    (1)Working capital does not include cash balances.

    Weyerhaeuser Company                                                                                                                                                                          Timberlands Segment
    Q4.2012 Analyst Package
    Preliminary results, subject to audit

                                                                                                                                              Segment Statement of Operations

    in millions                                                                   Q1.2012                            Q2.2012                            Q3.2012                            Q4.2012                            Q4.2011                            YTD.2012                             YTD.2011
                                                                                  -------                            -------                            -------                            -------                            -------                            --------                             --------
    Sales to and revenues from unaffiliated customers                                        $250                               $262                               $267                               $298                               $274                               $1,077                               $1,044
    Intersegment sales                                                                      190                                146                                162                                185                                167                                  683                                  646
                                                                                            ---                                ---                                ---                                ---                                ---                                  ---                                  ---
    Total net sales and revenues                                                            440                                408                                429                                483                                441                                1,760                                1,690
    Cost of products sold                                                                   353                                313                                336                                374                                358                                1,376                                1,290
                                                                                            ---                                ---                                ---                                ---                                ---                                -----                                -----
    Gross margin                                                                             87                                 95                                 93                                109                                 83                                  384                                  400
    Selling expenses                                                                          2                                  2                                  3                                  2                                  3                                    9                                   10
    General and administrative expenses                                                      23                                 21                                 21                                 20                                 18                                   85                                   81
    Research and development expenses                                                         4                                  5                                  4                                  6                                  6                                   19                                   18
    Restructuring, closures and impairments                                                   -                                  -                                  -                                  2                                  -                                    2                                    -
    Other operating income, net                                                             (11)                               (10)                               (14)                               (14)                               (14)                                 (49)                                (196)
                                                                                            ---                                ---                                ---                                ---                                ---                                  ---                                 ----
    Operating income                                                                         69                                 77                                 79                                 93                                 70                                  318                                  487
    Interest income and other                                                                 1                                  -                                  1                                  1                                  1                                    3                                    4
    Loss attributable to noncontrolling interest                                              -                                  -                                  -                                  1                                  -                                    1                                    -
                                                                                            ---                                ---                                ---                                ---
    Net contribution to earnings**                                                           $70                                $77                                $80                                $95                                $71                                 $322                                 $491
                                                                                            ===                                ===                                ===                                ===                                ===                                 ====                                 ====

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

    in millions                                                                 Q1.2012                            Q2.2012                            Q3.2012                            Q4.2012                            Q4.2011                            YTD.2012                             YTD.2011
                                                                                -------                            -------                            -------                            -------                            -------                            --------                             --------
    Operating income                                                                        $69                                $77                                $79                                $93                                $70                                 $318                                 $487
    Depreciation, depletion and amortization                                                 35                                 34                                 35                                 38                                 35                                  142                                  137
    Special items                                                                             -                                  -                                  -                                  -                                  -                                    -                                 (152)
    Adjusted EBITDA, excluding special items*                                              $104                               $111                               $114                               $131                               $105                                 $460                                 $472
                                                                                           ====                               ====                               ====                               ====                               ====                                 ====                                 ====
    * Non-GAAP measure

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

                                                                                Q1.2012                            Q2.2012                            Q3.2012                            Q4.2012                            Q4.2011                            YTD.2012                             YTD.2011
                                                                                -------                            -------                            -------                            -------                            -------                            --------                             --------
    Gain on sale of 82,000 acres of non-strategic timberlands                          $      -                           $      -                           $      -                           $      -                           $      -                           $        -                                 $152

                                                                                                                                           Selected Segment Items

                                                                                Q1.2012                            Q2.2012                            Q3.2012                            Q4.2012                            Q4.2011                            YTD.2012                             YTD.2011
                                                                                -------                            -------                            -------                            -------                            -------                            --------                             --------
    Total decrease (increase) in working capital (1)                                        $(9)                                $6                                $19                               $(37)                               $(6)                                $(21)                                $(26)
    Cash spent for capital expenditures                                                    $(12)                              $(15)                              $(17)                              $(16)                              $(13)                                $(60)                                $(53)
    (1)Working capital does not include cash balances.

                                                                                                                                             Segment Statistics

                                                                                Q1.2012                            Q2.2012                            Q3.2012                            Q4.2012                            Q4.2011                            YTD.2012                             YTD.2011
                                                                                -------                            -------                            -------                            -------                            -------                            --------                             --------
               Third Party             Logs:
                               Net Sales
                              and Revenue
                               (millions)
    West                                                         $130                               $146                               $132                               $151                               $139                               $559                                 $545
    South                                                          50                                 56                                 60                                 67                                 53                                233                                  196
    Canada                                                          7                                  2                                  5                                  5                                  5                                 19                                   17
                                                                  ---                                ---                                ---                                ---                                ---                                ---                                  ---
    Total Logs                                                    187                                204                                197                                223                                197                                811                                  758
    Pay as cut timber sales                                        11                                  9                                  8                                  9                                  9                                 37                                   34
    Timberlands exchanges                                           8                                  7                                 24                                 20                                 15                                 59                                   77
    Higher and better use land
     sales                                                          4                                  5                                  4                                  9                                 14                                 22                                   25
    Minerals, oil and gas                                           7                                  7                                  8                                  9                                 10                                 31                                   53
    Products from international
     operations                                                    25                                 29                                 26                                 26                                 27                                106                                   86
    Other products                                                  8                                  1                                  -                                  2                                  2                                 11                                   11
                                                                  ---                                ---                                ---                                ---                                ---                                ---                                  ---
    Total                                                        $250                               $262                               $267                               $298                               $274                             $1,077                               $1,044
                                                                 ====                               ====                               ====                               ====                               ====                             ======                               ======
                                       West                                              $99.10                             $94.47                             $89.28                             $96.46                             $99.71                               $94.72                              $103.57
                                  Logs
                           Third Party Sales
                              Realizations
                           (per cubic meter)
    South                                                      $40.48                             $41.15                             $42.04                             $43.30                             $39.82                             $41.83                               $40.10
    Canada                                                     $36.35                             $34.66                             $35.23                             $38.70                             $34.04                             $36.51                               $34.65
    International                                              $22.97                             $23.53                             $23.76                             $24.30                             $17.03                             $23.66                               $28.11
                                       West                                               1,308                              1,551                             1,480.                              1,559                              1,396                                5,898                                5,267
                                  Logs
                           Third Party Sales
                                Volumes
                             (cubic meters,
                               thousands)
    South                                                       1,228                              1,354                             1,430.                              1,563                              1,327                              5,575                                4,879
    Canada                                                        205                                 54                               133.                                139                                146                                531                                  479
    International                                                  78                                 82                                99.                                 84                                 75                                343                                  314
                                                                  ---                                ---                                ---                                ---                                ---                                ---                                  ---
    Total                                                       2,819                              3,041                              3,142                              3,345                              2,944                             12,347                               10,939
                                                                =====                              =====                              =====                              =====                              =====                             ======                               ======
                                       West                                               1,679                              1,831                             1,784.                              1,876                              1,633                                7,170                                6,595
                                  Logs
                          Fee Harvest Volumes
                             (cubic meters,
                               thousands)
    South                                                       2,714                              2,788                             2,809.                              3,177                              2,668                             11,488                                9,738
    International                                                 172                                161                               198.                                232                                265                                763                                  854
                                                                  ---                                ---                               ----                                ---                                ---                                ---                                  ---
    Total                                                       4,565                              4,780                              4,791                              5,285                              4,566                             19,421                               17,187
                                                                =====                              =====                              =====                              =====                              =====                             ======                               ======

    Weyerhaeuser Company                                                                                                                                                         Wood Products Segment
    Q4.2012 Analyst Package
    Preliminary results, subject to audit

                                                                                                                                 Segment Statement of Operations

    in millions                                                     Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                YTD.2012                  YTD.2011
                                                                    -------                           -------                            -------                            -------                      -------                --------                  --------
    Sales to and revenues from unaffiliated
     customers                                                               $634                              $776                               $816                               $832                        $542                    $3,058                    $2,276
    Intersegment sales                                                         20                                20                                 18                                 16                          19                        74                        80
                                                                              ---                               ---                                ---                                ---                         ---                       ---                       ---
    Total net sales and revenues                                              654                               796                                834                                848                         561                     3,132                     2,356
    Cost of products sold                                                     611                               708                                713                                748                         573                     2,780                     2,359
                                                                              ---                               ---                                ---                                ---                         ---                     -----                     -----
    Gross margin                                                               43                                88                                121                                100                         (12)                      352                        (3)
    Selling expenses                                                           21                                21                                 23                                 24                          19                        89                        79
    General and administrative expenses                                        29                                29                                 31                                 34                          27                       123                       113
    Research and development expenses                                           1                                 1                                  2                                  1                           1                         5                         4
    Charges for restructuring, closures and
     impairments                                                                1                                 2                                  2                                  1                          20                         6                        64
    Other operating costs (income), net                                         5                                (1)                                 4                                  2                          (2)                       10                       (17)
                                                                              ---                               ---                                ---                                ---                         ---                       ---                       ---
    Operating income (loss)                                                   (14)                               36                                 59                                 38                         (77)                      119                      (246)
    Interest income and other                                                   1                                 -                                  -                                  -                           -                         1                         3
                                                                              ---                               ---                                ---                                ---                         ---                       ---                       ---
    Net contribution to earnings from continuing
     operations                                                               (13)                               36                                 59                                 38                         (77)                      120                      (243)
    Net contribution to earnings from
     discontinued hardwoods operations                                          -                                 -                                  -                                  -                           -                         -                       (25)
    Net contribution to earnings**                                            $(13)                              $36                                $59                                $38                        $(77)                     $120                     $(268)
                                                                             ====                               ===                                ===                                ===                        ====                      ====                     =====

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

    in millions                                                   Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                YTD.2012                  YTD.2011
                                                                  -------                           -------                            -------                            -------                      -------                --------                  --------
    Operating income (loss)                                                  $(14)                              $36                                $59                                $38                        $(77)                     $119                     $(246)
    Depreciation, depletion and amortization                                   34                                33                                 33                                 33                          35                       133                       151
    Special items                                                               -                                (6)                                 -                                  -                          19                        (6)                       52
    Adjusted EBITDA, excluding special items*                                 $20                               $63                                $92                                $71                        $(23)                     $246                      $(43)
                                                                              ===                               ===                                ===                                ===                        ====                      ====                      ====
    * Non-GAAP measure

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

                                                                  Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                YTD.2012                  YTD.2011
                                                                  -------                           -------                            -------                            -------                      -------                --------                  --------
    Gain on sale of property                                             $      -                                $6                           $      -                           $      -                     $     -                        $6                        $5
    Charges for restructuring and impairments                                   -                                 -                                  -                                  -                         (19)                        -                       (57)
                                                                              ---                               ---                                ---                                ---                         ---                       ---                       ---
    Total special items from continuing
     operations                                                                 -                                 6                                  -                                  -                         (19)                        6                       (52)
    Charges related to sale of discontinued
     hardwoods operations                                                       -                                 -                                  -                                  -                           -                         -                       (22)
    Total                                                                $      -                                $6                           $      -                           $      -                        $(19)                       $6                      $(74)
                                                                         ========                               ===                           ========                           ========                        ====                       ===                      ====

                                                                                                                              Selected Segment Items

                                                                  Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                YTD.2012                  YTD.2011
                                                                  -------                           -------                            -------                            -------                      -------                --------                  --------
    Total decrease (increase) in working capital
     (1)                                                                    $(112)                               $5                               $(21)                                $9                         $18                     $(119)                     $(23)
    Cash spent for capital expenditures                                       $(6)                             $(15)                              $(16)                              $(19)                       $(14)                     $(56)                     $(35)
    (1)Working capital does not include cash balances.

                                                                                                                                Segment Statistics

    in millions, except for third-party sales
     realizations                                                 Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                YTD.2012                  YTD.2011
                                                                  -------                           -------                            -------                            -------                      -------                --------                  --------
              Structural            Third Party Net Sales and
                                    Revenue                                  $291                              $370                               $363                               $376                        $256                    $1,400                    $1,087
                               Lumber
                            (board feet)
    Third Party
     Sales
     Realizations                                            $311                    $350                               $359                               $366                               $296                       $347                      $303
    Third Party
     Sales Volumes                                            937                   1,056                              1,013                              1,025                                863                      4,031                     3,586
    Production
     Volumes                                                  958                   1,004                                945                                939                                842                      3,846                     3,528
              Engineered            Third Party Net Sales and
                 Solid              Revenue                                   $65                               $70                                $76                                $68                         $55                      $279                      $235
                              Section
                            (cubic feet)
    Third Party
     Sales
     Realizations                                          $1,830                  $1,789                             $1,800                             $1,817                             $1,783                     $1,808                    $1,920
    Third Party
     Sales Volumes                                            3.6                     3.9                                4.2                                3.7                                3.1                       15.4                      12.3
    Production
     Volumes                                                  3.7                     3.8                                4.3                                3.6                                2.7                       15.4                      13.4
              Engineered            Third Party Net Sales and
                                    Revenue                                   $41                               $49                                $53                                $47                         $37                      $190                      $161
                              I-joists
                           (lineal feet)
    Third Party
     Sales
     Realizations                                          $1,285                  $1,211                             $1,248                             $1,265                             $1,258                     $1,250                    $1,264
    Third Party
     Sales Volumes                                             32                      40                                 43                                 37                                 30                        152                       128
    Production
     Volumes                                                   34                      37                                 39                                 37                                 26                        147                       122
               Oriented             Third Party Net Sales and
                Strand              Revenue                                  $111                              $138                               $169                               $194                         $90                      $612                      $354
                               Board
                         (square feet 3/8')
    Third Party
     Sales
     Realizations                                            $197                    $214                               $268                               $290                               $173                       $244                      $179
    Third Party
     Sales Volumes                                            565                     643                                630                                670                                516                      2,508                     1,977
    Production
     Volumes                                                  601                     626                                642                                642                                541                      2,511                     2,127
               Softwood             Third Party Net Sales and
                                    Revenue                                   $23                               $26                                $34                                $32                         $18                      $115                       $66
                              Plywood
                         (square feet 3/8')
    Third Party
     Sales
     Realizations                                            $309                    $332                               $356                               $347                               $274                       $338                      $264
    Third Party
     Sales Volumes                                             73                      81                                 95                                 91                                 65                        340                       249
    Production
     Volumes                                                   51                      50                                 54                                 59                                 47                        214                       197

    Weyerhaeuser Company                                                                                                                                                     Cellulose Fibers Segment
    Q4.2012 Analyst Package
    Preliminary results, subject to audit

                                                                                                                                 Segment Statement of Operations

    in millions                                                    Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                 YTD.2012                   YTD.2011
                                                                   -------                           -------                            -------                            -------                      -------                 --------                   --------
    Total net sales and revenues                                             $473                               $459                               $459                               $463                        $523                     $1,854                     $2,058
    Cost of products sold                                                   407                                404                                364                                385                         368                      1,560                      1,524
                                                                            ---                                ---                                ---                                ---                         ---                      -----                      -----
    Gross margin                                                             66                                 55                                 95                                 78                         155                        294                        534
    Selling expenses                                                          4                                  5                                  4                                  5                           5                         18                         18
    General and administrative expenses                                      20                                 17                                 19                                 18                          19                         74                         76
    Research and development expenses                                         2                                  2                                  2                                  2                           2                          8                          8
    Charges for restructuring, closures and
     impairments                                                              -                                  -                                  -                                  -                           1                          -                          1
    Other operating income, net                                              (9)                                (4)                                (5)                                (6)                         (7)                       (24)                       (19)
                                                                            ---                                ---                                ---                                ---                         ---                        ---                        ---
    Operating income                                                         49                                 35                                 75                                 59                         135                        218                        450
    Interest income and other                                                (1)                                 1                                  3                                  2                           1                          5                          2
                                                                            ---                                ---                                ---                                ---
    Net contribution to earnings**                                           $48                                $36                                $78                                $61                        $136                       $223                       $452
                                                                            ===                                ===                                ===                                ===                        ====                       ====                       ====

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

    in millions                                                  Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                 YTD.2012                   YTD.2011
                                                                 -------                           -------                            -------                            -------                      -------                 --------                   --------
    Operating income                                                        $49                                $35                                $75                                $59                        $135                       $218                       $450
    Depreciation, depletion and amortization                                 37                                 36                                 37                                 40                          37                        150                        147

    Adjusted EBITDA, excluding special items*                               $86                                $71                               $112                                $99                        $172                       $368                       $597
                                                                            ===                                ===                               ====                                ===                        ====                       ====                       ====
    * Non-GAAP measure

                                                                                                                             Selected Segment Items

                                                                 Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                 YTD.2012                   YTD.2011
                                                                 -------                           -------                            -------                            -------                      -------                 --------                   --------
    Total decrease (increase) in working
     capital (1)                                                            $45                                $24                               $(20)                              $(30)                       $(28)                       $19                       $(65)
    Cash spent for capital expenditures                                    $(45)                              $(44)                              $(45)                              $(26)                       $(54)                     $(160)                     $(146)
    (1)Working capital does not include cash balances.

                                                                                                                               Segment Statistics

                                                                 Q1.2012                           Q2.2012                            Q3.2012                            Q4.2012                      Q4.2011                 YTD.2012                   YTD.2011
                                                                 -------                           -------                            -------                            -------                      -------                 --------                   --------
                Pulp              Third Party Net Sales and
                                  Revenue (millions)                       $367                               $348                               $354                               $364                        $419                     $1,433                     $1,617
                          (air-dry metric
                               tons)
    Third Party
     Sales
     Realizations                                           $818                    $819                               $818                               $799                               $895                        $813                       $921
    Third Party
     Sales Volumes
     (thousands)                                             449                     425                                432                                456                                468                       1,762                      1,756
    Production
     Volumes
     (thousands)                                             438                     417                                453                                465                                460                       1,773                      1,769
               Liquid             Third Party Net Sales and
                                  Revenue (millions)                        $83                                $90                                $84                                $75                         $81                       $332                       $346
                             Packaging
                               Board
                              (tons)
    Third Party
     Sales
     Realizations                                         $1,181                  $1,176                             $1,155                             $1,085                             $1,151                      $1,150                     $1,165
    Third Party
     Sales Volumes
     (thousands)                                              70                      76                                 74                                 69                                 70                         289                        297
    Production
     Volumes
     (thousands)                                              65                      78                                 77                                 72                                 79                         292                        307

    Weyerhaeuser Company                                                                                                                                                                                               Real Estate Segment
    Q4.2012 Analyst Package
    Preliminary results, subject to audit

                                                                                                                                              Segment Statement of Operations

    in millions                                   Q1.2012                                 Q2.2012                                 Q3.2012                                 Q4.2012                           Q4.2011                        YTD.2012         YTD.2011
                                                  -------                                 -------                                 -------                                 -------                           -------                        --------         --------
    Total net sales and
     revenues                                                 $137                                    $296                                    $230                                    $407                            $276                          $1,070             $838
    Cost of products
     sold                                                      113                                     248                                     175                                     276                             191                             812              628
                                                               ---                                     ---                                     ---                                     ---                             ---                             ---              ---
    Gross margin                                                24                                      48                                      55                                     131                              85                             258              210
    Selling expenses                                            15                                      19                                      19                                      25                              18                              78               71
    General and
     administrative
     expenses                                                   17                                      15                                      17                                      27                              19                              76               73
    Charges for
     restructuring,
     closures and
     impairments                                                 1                                       1                                       3                                       1                              10                               6               14
    Other operating
     income, net                                                 -                                      (1)                                      -                                      (1)                             (1)                             (2)              (1)
                                                               ---                                     ---                                     ---                                     ---                             ---                             ---              ---
    Operating income
     (loss)                                                     (9)                                     14                                      16                                      79                              39                             100               53
    Interest income and
     other                                                       1                                       1                                       1                                       2                               2                               5                5
    Net contribution to
     earnings                                                  $(8)                                    $15                                     $17                                     $81                             $41                            $105              $58
                                                               ===                                     ===                                     ===                                     ===                             ===                            ====              ===

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

    in millions                                   Q1.2012                                 Q2.2012                                 Q3.2012                                 Q4.2012                           Q4.2011                        YTD.2012         YTD.2011
                                                  -------                                 -------                                 -------                                 -------                           -------                        --------         --------
    Operating income
     (loss)                                                    $(9)                                    $14                                     $16                                     $79                             $39                            $100              $53
    Depreciation,
     depletion and
     amortization                                                2                                       3                                       3                                       4                               4                              12               13
    Capitalized
     interest included
     in cost of
     products sold                                               3                                      14                                       5                                       8                              10                              30               23
    Adjusted EBITDA,
     excluding special
     items*                                                    $(4)                                    $31                                     $24                                     $91                             $53                            $142              $89
                                                               ===                                     ===                                     ===                                     ===                             ===                            ====              ===
    * Non-GAAP measure

                                                                                                                                           Selected Segment Items

                                                  Q1.2012                                 Q2.2012                                 Q3.2012                                 Q4.2012                           Q4.2011                        YTD.2012         YTD.2011
                                                  -------                                 -------                                 -------                                 -------                           -------                        --------         --------
    Cash from
     operations                                               $(32)                                    $43                                    $(24)                                    $77                             $43                             $64              $18
    Cash spent for
     capital
     expenditures                                              $(1)                               $      -                                     $(1)                                    $(2)                            $(1)                            $(4)             $(3)

                                                                                                                                             Segment Statistics

                                                  Q1.2012                                 Q2.2012                                 Q3.2012                                 Q4.2012                           Q4.2011                        YTD.2012         YTD.2011
                                                  -------                                 -------                                 -------                                 -------                           -------                        --------         --------
    Net sales and revenues:
    Single-family
     housing                                                  $131                                    $190                                    $229                                    $320                            $232                            $870             $768
    Land                                                         3                                     105                                       1                                      84                              44                             193               67
    Other                                                        3                                       1                                       -                                       3                               -                               7                3
                                                               ---                                     ---                                     ---                                     ---                             ---                             ---              ---
    Total net sales and
     revenue                                                  $137                                    $296                                    $230                                    $407                            $276                          $1,070             $838
                                                              ====                                    ====                                    ====                                    ====                            ====                          ======             ====
    Single-family
     homes sold                                                697                                     764                                     637                                     561                             406                           2,659            1,902
    Single-family
     homes closed                                              349                                     508                                     615                                     842                             582                           2,314            1,912
    Single-family
     homes sold but not
     closed (backlog)                                          777                                   1,033                                   1,055                                     774                             429                             774              429
    Single-family
     cancellation rate                                       10.1 %                                  15.4 %                                  18.3 %                                  15.9 %                          18.1 %                          14.9 %           15.7 %
    Single-family
     buyer traffic                                          14,272                                  17,677                                  17,894                                  14,567                          10,533                          64,410           50,125
    Single-family
     average price of
     homes closed (in
     thousands)                                               $376                                    $374                                    $372                                    $381                            $398                            $376             $402
    Single-family home
     gross margin -
     excluding
     impairments (1)                                         17.3 %                                  19.5 %                                  24.3 %                                  20.2 %                          25.4 %                          20.7 %           23.3 %

    (1)Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).

    Weyerhaeuser Company                                                                                                                                                                              Unallocated Items
    Q4.2012 Analyst Package
    Preliminary results, subject to audit

    Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains
     and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve.

                                                                                                                                 Contribution to Earnings

    in millions                                   Q1.2012                            Q2.2012                           Q3.2012                           Q4.2012                           Q4.2011                            YTD.2012             YTD.2011
                                                  -------                            -------                           -------                           -------                           -------                            --------             --------
    Unallocated
     corporate function
     expenses                                                 $(6)                               $(3)                              $(5)                              $(8)                              $(8)                                $(22)             $(44)
    Unallocated share-
     based compensation                                        (5)                                (1)                               (7)                               (3)                               (6)                                 (16)               (5)
    Unallocated pension
     & postretirement
     costs                                                     (7)                                (7)                               (7)                               (8)                               (5)                                 (29)              (26)
    Foreign exchange
     gains (losses)                                             6                                 (8)                               11                                (2)                                4                                    7                (5)
    Elimination of
     intersegment profit
     in inventory and
     LIFO **                                                   (12)                                (2)                              (10)                                8                                (6)                                 (16)              (25)
    Other                                                      30                                 35                                (9)                                -                               (15)                                  56               (45)
                                                              ---                                ---                               ---                               ---                               ---                                  ---               ---
    Operating income
     (loss)                                                     6                                 14                               (27)                              (13)                              (36)                                 (20)             (150)
    Interest income and
     other                                                     10                                  9                                10                                 9                                 8                                   38                33
                                                              ---                                ---                               ---                               ---                               ---                                  ---               ---
    Net contribution to
     earnings from
     continuing
     operations                                                16                                 23                               (17)                               (4)                              (28)                                  18              (117)
    Net contribution to
     earnings from
     discontinued
     operations                                                 -                                  -                                 -                                 -                                 -                                    -                45
                                                              ---                                ---                               ---                               ---
    Net contribution to
     earnings                                                 $16                                $23                              $(17)                              $(4)                             $(28)                                 $18              $(72)
                                                              ===                                ===                              ====                               ===                              ====                                  ===              ====

    **We now report the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of
     business operating results. Prior period results have been adjusted to reflect the change.

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

    in millions                                   Q1.2012                            Q2.2012                           Q3.2012                           Q4.2012                           Q4.2011                            YTD.2012             YTD.2011
                                                  -------                            -------                           -------                           -------                           -------                            --------             --------
    Operating income
     (loss)                                                    $6                                $14                              $(27)                             $(13)                             $(36)                                $(20)            $(150)
    Depreciation,
     depletion and
     amortization                                               5                                  7                                 4                                 3                                 6                                   19                28
    Non-operating
     pension and
     postretirement
     costs                                                      7                                  7                                 7                                 8                                 5                                   29                26
    Special items                                             (38)                               (51)                                -                                 -                                 -                                  (89)                -
    Capitalized interest
     included in cost of
     products sold                                              -                                  5                                 1                                 1                                 2                                    7                 6
    Adjusted EBITDA,
     excluding special
     items*                                                  $(20)                              $(18)                             $(15)                              $(1)                             $(23)                                $(54)             $(90)
                                                             ====                               ====                              ====                               ===                              ====                                 ====              ====
    * Non-GAAP measure - see below for definition.

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

                                                  Q1.2012                            Q2.2012                           Q3.2012                           Q4.2012                           Q4.2011                            YTD.2012             YTD.2011
                                                  -------                            -------                           -------                           -------                           -------                            --------             --------
    Gain on
     postretirement plan
     amendment                                                $52                                $51                          $      -                          $      -                          $      -                                 $103           $     -
    Restructuring,
     impairments and
     other charges                                            (14)                                 -                                 -                                 -                                 -                                  (14)                -
                                                              ---                                ---                               ---                               ---                               ---                                  ---               ---
    Total special items
     from continuing
     operations                                                38                                 51                                 -                                 -                                 -                                   89                 -
    Gain on sale of
     property                                                   -                                  -                                 -                                 -                                 -                                    -                 9
    Gain on sale of
     Westwood Shipping
     Lines                                                      -                                  -                                 -                                 -                                 -                                    -                49
    Total                                                     $38                                $51                          $      -                          $      -                          $      -                                  $89               $58
                                                              ===                                ===                          ========                          ========                          ========                                  ===               ===

                                                                                                                         Unallocated Selected Items

                                                  Q1.2012                            Q2.2012                           Q3.2012                           Q4.2012                           Q4.2011                            YTD.2012             YTD.2011
                                                  -------                            -------                           -------                           -------                           -------                            --------             --------
    Total decrease
     (increase) in
     working capital (1)                                     $(72)                               $68                               $(7)                             $(27)                             $(25)                                $(38)             $(97)
    Cash spent for
     capital
     expenditures                                        $      -                                $(1)                              $(1)                              $(3)                         $      -                                  $(5)              $(1)

    (1)Working capital does not include cash balances.

    *Adjusted EBITDA, excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation,
     depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special
     items and interest included in cost of products sold. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

For more information contact:

Analysts – Kathryn McAuley (253) 924-2058
Media – Anthony Chavez (253) 924-7148

SOURCE Weyerhaeuser Company


Source: PR Newswire