SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
October 15, 1997
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(Date of earliest event report)
WEYERHAEUSER COMPANY
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(Exact name of registrant as specified in charter)
Washington 1-4825 91-0470860
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
Tacoma, Washington 98477-2999
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(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(253) 924-2345
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Item 5. Other Events
On October 14, 1997, Weyerhaeuser Company issued the following
press release:
"FEDERAL WAY - Weyerhaeuser Company (NYSE: WY) today reported
third quarter net earnings before special items of $107
million, or 53 cents per common share, compared with $120
million, or 60 cents per common share, for the same period
last year. Net sales for the quarter ended September 28 were
$2.8 billion compared with $2.9 billion for the same quarter
last year.
During the quarter, Weyerhaeuser recorded a special after-tax
net gain associated with the company's on-going efforts to
narrow its focus and upgrade the quality of the assets of its
core business. The net gain of $7 million, or 4 cents per
common share, reflects a gain from the sale of a chemical
business in Canada and charges associated with previously
announced plans to close the plywood facility in Philadelphia,
Mississippi.
Including this gain, net earnings were $114 million, or 57
cents per common share.
For the first nine months, Weyerhaeuser reported net earnings
before special items of $243 million, or $1.22 per common
share.
During the same period last year, net earnings were $365
million, or $1.84 per common share. Including special items,
net earnings for the first nine months in 1997 were $244
million, or $1.23 per common share.
Net sales during the first nine months were $8.3 billion,
unchanged from the same period last year.
`During the third quarter we continued to see improvement in
our Pulp, Paper and Packaging business,' said John W.
Creighton, Jr., Weyerhaeuser president and chief executive
officer. `This improvement began late in the second quarter
following the implementation of price increases in pulp, paper
and newsprint. Global economic growth continues to drive
increasing demand for pulp and paper products and improved
market prices for most pulp, paper and packaging products.
The performance of our Timberland and Wood Products
businesses, however, has been hurt by a weak Japanese housing
market. We believe the slowdown in the Japanese market could
continue to affect our results into next year.'
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Results by segment for the third quarter:
. Timberlands and Wood Products: Operating earnings,including
the charge associated with the plywood mill closure, were $172
million. Excluding the charge, the segment reported operating
earnings of $182 million compared with $210 million last year.
In addition to slower lumber and log sales in Japan, lower
domestic structural panel prices also affected the segment's
performance.
. Pulp, Paper and Packaging: Operating earnings were $97
million, including the gain on the sale of Saskatoon
Chemicals. Excluding the gain, the segment reported
operating earnings of $76 million compared with $79 million
for the third quarter last year.
. Real Estate and related assets: Earnings were $24 million
compared with $5 million last year. Strong real estate
markets in the area served by the segment contributed to this
increase.
Weyerhaeuser Company is one of the largest integrated forest
product companies in the world. Its principal segments are
timberlands and wood products; pulp, paper and packaging; and
real estate. It is the world's largest private owner of
merchantable softwood timber and producer of softwood lumber
and market pulp. It also is one of North America's largest
recyclers of office wastepaper, newspaper and corrugated
boxes.
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Comments by John W. Creighton, Jr. contain 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 subject to uncertainties and risks that may
cause actual results to differ materially from those
projected. The company's businesses are cyclical in nature
and are influenced by economic factors such as interest rates,
housing starts, industrial production and GDP growth in the
United States. The company's performance is also affected by
its ability to successfully implement its business improvement
plans and other internal performance objectives and its
ability to achieve expected returns on numerous capital
projects. Many of the company's products are used in the
manufacture of other products and face the threat of customers
substituting other materials. The company is also a large
exporter and is affected both by changes in economic activity
in Europe and Asia, particularly by changes in GDP and housing
starts in Japan, our largest export market, and by changes in
currency exchange rates. The company's timberlands and
manufacturing facilities are subject to extensive forestry,
land use and environmental regulations that change frequently.
The company's major businesses are also affected by government
policies regarding the management of public lands in the
United States and Canada and by international trade
restrictions. In addition to unanticipated changes in
government regulation and policy, natural disasters and
unusual weather conditions can damage the company's forests
and operations and impact supply conditions for the company's
products."
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SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
WEYERHAEUSER COMPANY
By /s/ K. J. Stancato
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Its: Vice President and Controller
Date: October 15, 1997
