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, 1999
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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, 1999, Weyerhaeuser Company issued a press release stating the
following:
"FEDERAL WAY, Wash.--Weyerhaeuser Company (NYSE: WY) today reported second
quarter net earnings of $164 million, or 82 cents per common share, a 138
percent increase from $69 million, or 34 cents per common share, for the
same period last year.
Net sales for the second quarter were $3 billion, up 14 percent from $2.7
billion last year.
Results for the first six months of 1999--excluding after-tax charges taken
for a nonrecurring item and a change in accounting principle--were $266
million, or $1.33 per common share, compared with $154 million, or 77 cents
per common share, for the same period last year. This represents a 73
percent improvement in earnings compared with the first six months last
year. Including the nonrecurring items, net earnings for the first six
months of 1999 were $116 million, or 58 cents per common share.
`Our second quarter results reflect the sustained demand for wood products
that is being driven by the residential remodeling and repair market and
new home construction,' said Steven R. Rogel, Weyerhaeuser chairman,
president and chief executive officer. `This is clearly evident in the
record performance of our wood products business and strong earnings by the
real estate business. The earnings of both businesses increased
significantly from last year and we expect them to continue their strong
performance into the third quarter.'
Results by segment for the second quarter of 1999 were:
. Timberlands--Operating earnings were $142.7 million compared with $117.6
million last year, a 21 percent increase. Volumes and prices for the
export log market remain above last year's levels as the Japanese market
continues to show signs of slow, but steady improvement as demonstrated
by the slight increase in the level of wooden housing starts in Japan
during the quarter.
. Wood Products--Operating earnings were a record $173.8 million compared
with $53.3 million during the same period last year, a 226 percent
increase. Earnings from lumber, structural panels and building material
distribution operations showed significant improvement over the prior year
in both volume and price.
. Pulp, Paper and Packaging--Operating earnings were $34.1 million compared
with $39.8 million last year, a drop of 14 percent. Market conditions
for pulp, containerboard and paper continued to improve during the
quarter. Earnings for the sector, however, were hurt by downtime in the
pulp operations for scheduled maintenance and to balance inventories.
Unplanned downtime in containerboard also affected earnings in the
quarter. While markets are continuing to improve, the company expects
third quarter results to be dampened due to intermittent down time at the
Plymouth, N.C., facility caused by drought conditions and a labor dispute
at the Dryden, Ontario fine paper mill that has suspended operations.
<PAGE>
. Real Estate and related assets--Operating earnings were $44.9 million
compared with $16.5 million for the same quarter last year, a 172 percent
increase. The continued strength of the real estate markets in which the
company operates--particularly California--contributed to the increase.
In other second quarter developments, Weyerhaeuser:
. Announced plans to acquire MacMillan-Bloedel Limited in a stock transaction
valued at approximately US$2.45 billion (CDN$3.59 billion) based on the
closing price of Weyerhaeuser stock and the value of the Canadian dollar on
June 18. The company expects to close the transaction in the fourth
quarter.
. Completed the sale of its Composite Products business to SierraPine
Limited.
Weyerhaeuser Company, one of the world's largest integrated forest products
companies, was incorporated in 1900. In 1998, sales were $10.8 billion.
It 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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This news release contains 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; performance of the
company's manufacturing operations; 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 16, 1999
