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
July 17, 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
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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 July 16, 1997, Weyerhaeuser Company issued the following press release:
"FEDERAL WAY - Weyerhaeuser Company (NYSE: WY) today
reported second quarter net earnings of $90 million, or 47
cents per common share, before a special after-tax net gain
of $19 million, or 9 cents per common share. Including the
gain, net earnings were $109 million, or 56 cents per common
share, compared with $103 million, or 52 cents, for the same
period last year. Net sales were $2.9 billion, unchanged
from the comparable quarter last year.
The after-tax net gain is a result of Weyerhaeuser's on-
going effort to narrow its focus and upgrade the quality of
the assets of its core businesses. During the quarter,
these efforts resulted in a gain on the sale of the
Weyerhaeuser Mortgage Company (WMC) that were somewhat
offset by costs associated with plans to close the Plymouth,
North Carolina plywood facility.
For the first six months, Weyerhaeuser reported net earnings
before special items of $136 million, or 69 cents per common
share. During the same period last year, net earnings were
$245 million, or $1.24 per common share. Net sales during
the first half were $5.5 billion, unchanged from last year.
`Our second quarter results are down from last year, but
they represent an improvement from first quarter,' said John
W. Creighton, Jr., Weyerhaeuser president and chief
executive officer. `Much of this is attributable to the
efforts our employees have made to improve our operating
performance company-wide. As a result, our manufacturing
facilities are running extremely well.'
Creighton also credited market conditions for some of the
second quarter improvement.
`The price increases in paper and newsprint that we
implemented during the second quarter had a positive effect
on the Pulp, Paper and Packaging businesses,' Creighton
said. `We expect the positive trend started by these
increases to continue into the third quarter. Meanwhile, our
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Timberlands and Wood Products segment continues to benefit
from the strong domestic lumber market.'
Results by segment for the second quarter:
. Timberlands and Wood Products: Operating earnings,
including the $15 million charge associated with the
plywood mill closure, were $211 million compared with
$217 million last year. Strong domestic lumber and log
markets helped offset the slower sales in Japan and the
weak plywood and oriented strand board markets.
. Pulp, Paper and Packaging: Operating earnings were $22
million compared with $35 million in 1996. Global
economic growth continues to drive increasing demand for
pulp and paper products and improved market prices for
most pulp, paper and packaging products.
. Real Estate and Financial Services: Earnings were $50
million, including the $45 million gain on the WMC sale,
compared with $6 million last year.
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: July 17, 1997
