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 13, 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 October 13, 1998, Weyerhaeuser Company issued the following press
release:
"FEDERAL WAY, Wash. - Weyerhaeuser Company (NYSE: WY) today
reported third-quarter net earnings of $110 million, or 56 cents per
common share, compared with $107 million, or 53 cents per common share,
for the same period in 1997. Last year's results also include a net gain
of $7 million, or 4 cents per common share, from the sale and closure of
facilities. Including the gain, net earnings last year were $114
million, or 57 cents per common share.
Net sales for the third quarter 1998 were $2.7 billion compared with $2.8
billion for the same quarter last year.
For the first nine months, Weyerhaeuser reported net earnings of $264
million, or $1.33 per common share. During the same period last year,
net earnings were $243 million, or $1.22 per common share. Net sales
during the first nine months were $8 billion, compared with $8.3 billion
during the same period last year.
`Our results reflect the strong U.S. housing market and continued
unsettled world markets for pulp, paper and packaging products,'
said Steven R. Rogel, Weyerhaeuser president and chief executive officer.
`Earnings in our Pulp, Paper and Packaging segment reflect our continuing
efforts to reduce costs and improve operating performance. Market
prices, however, remain under pressure due to high industry inventory
levels and increased international competitiveness. The performance of
our wood products and real estate businesses improved significantly
because of U.S. housing demand.'
Results by segment for the third quarter:
. Timberlands and Wood Products: Operating earnings were $191 million
compared with $182 million before the $10 million charge associated
with the closure of a plywood mill during the same period last year.
Strong demand for oriented strand board and plywood and good
performance from the building materials distribution businesses
accounted for higher earnings. Export log volumes to Japan improved
over the prior quarter, but remain below last year's levels. As the
fourth quarter began, prices were declining seasonably in domestic
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wood products markets. Weyerhaeuser plans to reposition its Canadian
lumber business, which will result in a charge that may have a material
effect on the company's fourth quarter results from operations.
. Pulp, Paper and Packaging: Operating earnings were $67 million
compared with $76 million before the $21 million gain associated with
the sale of a Canadian chemical facility during the third quarter last
year. In spite of weakening markets, results improved over the second
quarter due to lower costs and improved operating performance.
However, prices continue to weaken into the fourth quarter.
. Real Estate and related assets: Earnings were $38 million compared
with $24 million last year. Housing markets were strong in California
and the Pacific Northwest, two primary markets for Weyerhaeuser's real
estate operations.
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 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."
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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 13, 1998
