SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 23,1998
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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 January 21, 1998, Weyerhaeuser Company issued the following press release:
"FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported
fourth-quarter net earnings of $108 million before a special item, or
54 cents per common share. This compares with $98 million, or
50 cents per common share, for the same period last year. Including
the special item charge, net earnings for the quarter were $98 million
or 49 cents per common share. Net sales for the quarter were $2.9 billion
compared with $2.8 billion for the fourth quarter in 1996.
During the quarter, Weyerhaeuser recorded a charge of $15 million against
operating earnings, or 5 cents per common share, for costs associated with
previously announced plans to close its Coos Bay, Oregon export saw mill.
For the year, Weyerhaeuser reported net earnings of $351 million before
special items, or $1.76 per common share. This compares with 1996 net
earnings of $463 million, or $2.34 per common share. Including the net
charge for special items, net earnings for 1997 were $342 million or
$1.72 per common share. Net sales in 1997 were $11.2 billion compared with
$11.1 billion the prior year.
`Weyerhaeuser just completed a difficult year, but one in which we continued
to improve operations,' said Steven R. Rogel, president and chief executive
officer. `Due to the ongoing efforts of our employees over the past few
years to reduce costs, increase productivity and use greater discipline in
capital spending, we performed better than in previous downturns. We're
encouraged by our gains in these areas and the improvement we saw during the
fourth quarter in a number of our markets.'
Results by segment were:
. Timberlands and Wood Products. Excluding the charge
associated with closing the export sawmill, the segment
reported fourth-quarter operating earnings of $167
million compared to $226 million the previous year.
Including the charge, the segment reported earnings of
$152 million during the fourth quarter. For the year,
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the segment reported operating earnings of $747 million
excluding the effect of previously announced charges
related to the closure of three manufacturing
facilities. This compares with $805 million in 1996.
Although the segment was affected by weak export market
demand for logs and lumber during 1997, those markets
appear to have stabilized during the fourth quarter.
In addition, low interest rates continue to support a
good residential construction market in North America.
. Pulp, Paper and Packaging. Operating earnings in
the fourth quarter were $88 million compared to $31
million in 1996. Excluding special items associated
with previously announced closures and disposition of
certain facilities, the segment reported earnings of
$192 million for the year compared with $307 million
in 1996. Lower average product prices affected 1997
earnings. During the year, the performance of the
combined pulp, paper and packaging markets improved
each quarter. The packaging and paper markets
continued this improvement through the fourth
quarter, but pulp markets began to weaken during the
quarter due to a decline in demand from Asia.
. Real Estate and related assets. For the fourth
quarter, the segment reported earnings of $31 million
compared to $22 million for the same period in 1996.
Strong real estate markets and an increased focus on
the home-building and land development businesses
combined to produce earnings of $66 million in 1997
excluding the gain on the sale of Weyerhaeuser
Mortgage Company. This compares with $43 million the
prior year.
Weyerhaeuser is one of the world's largest integrated forest product
companies. 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 is also one of North America's
largest recyclers of office wastepaper, newspaper and corrugated boxes.
This news release may 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. The
accuracy of such statements is subject to a number of risks, uncertainties
and assumptions that may cause actual results to differ materially from
those projected, including, but not limited to, the effect of general
economic conditions, including the level of interest rates and housing
starts; market demand for the company's products; the effect of forestry,
land use, environmental and other governmental regulations; and the risk of
losses from fires, floods and other natural disasters. The company is also
a large exporter and is affected by changes in economic activity in Europe
and Asia, particularly Japan, and by changes in currency exchange rates and
restrictions on international trade. These and other factors that could
cause or contribute to actual results differing materially from such forward
looking statements are discussed in greater detail in the company's
Securities and Exchange Commission filings."
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: January 23, 1998
