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 14, 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 July 14, 1998, Weyerhaeuser Company issued the following press release:
"FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today reported second
quarter net earnings of $69 million, or 34 cents per common share. This
compares with $90 million, or 47 cents per common share, for the same
period in 1997. Last year's figure excludes a special after-tax net gain
of $19 million, or 9 cents per common share. Including the gain, net
earnings last year for the second quarter were $109 million, or 56 cents
per common share.
Net sales for the second quarter of 1998 were $2.7 billion, compared with
$2.9 billion last year.
For the first six months of 1998, Weyerhaeuser reported net earnings of
$154 million, or 77 cents per common share. During the same period last
year, net earnings before special items were $136 million, or 69 cents per
common share. Net sales during the first half of 1998 were $5.3 billion
compared with $5.5 billion last year.
`Our second quarter results reflect a weaker demand for our products in
Asia and the increased competitiveness of imports caused by the strong U.S.
dollar,' said Steven R. Rogel, Weyerhaeuser president and chief executive
officer. `Although second quarter results are lower than those we reported
in the first quarter of this year, we have recently seen signs of some
modest improvement. In general, however, markets remain unsettled and we
are staying focused on reducing our costs and effectively managing capital
expenditures to help us improve our returns.'
Results by segment for the second quarter:
. Timberlands and Wood Products: Operating earnings were $172 million
compared with $211 million in 1997. Last year's earnings include
a $15 million charge associated with closure of a plywood mill. Strong
demand for panel and oriented strand board products helped offset lower
lumber prices. While export log volumes to Japan remain well below last
year's levels, market conditions improved slightly during the quarter.
. Pulp, Paper and Packaging: Operating earnings were $39 million compared
with $22 million in 1997. Although higher than the same period last
year, second quarter earnings were lower
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than the first quarter due to unsettled market conditions and weak prices
worldwide in paper and newsprint, and costs associated with production
curtailments in market pulp.
. Real Estate and related assets: Earnings were $16 million compared
with $50 million in 1997. Last year's earnings include a $45 million
gain on the sale of Weyerhaeuser Mortgage Company. The company
continues to experience strong performance from the real estate markets
in which it operates.
Weyerhaeuser Company, one of the world's largest integrated forest products
companies, was incorporated in 1900. In 1997, it had sales of $11.2
billion and has offices or operations in 12 countries with customers
worldwide. Weyerhaeuser is principally engaged in the growing and
harvesting of timber; the manufacture, distribution and sale of forest
products; and real estate construction, development and related activities.
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Statements by Steven R. Rogel concerning the company's future results and
performance 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: July 14, 1998
