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 20, 1999
-------------------------------------------------
(Date of earliest event report)
WEYERHAEUSER COMPANY
-------------------------------------------------
(Exact name of registrant as specified in charter)
Washington 1-4825 91-0470860
---------------- ------------ ---------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
Tacoma, Washington 98477
-------------------------------------------------
(Address of principal executive offices)
(zip code)
Registrant's telephone number, including area code:
(253) 924-2345
<PAGE>
Item 5. Other Events
On January 20, 1999, Weyerhaeuser Company issued the following press
release:
"FEDERAL WAY, Wash. - Weyerhaeuser Company today reported net
earnings of $339 million before nonrecurring items, or $1.71 per common
share, for 1998. This compares with $351 million before nonrecurring
items, or $1.76 per common share, for 1997.
Net sales for 1998 were $10.8 billion compared with $11.2 billion the prior
year.
Including a previously announced nonrecurring after-tax charge of $45
million, or 23 cents per common share, net earnings were $294 million, or
$1.48 per common share, for 1998. The charge is primarily associated with
streamlining pulp and paper operations, the closure of the Longview, Wash.,
chlor-alkali facility, and changes to the British Columbia lumber
operations. This compares with $342 million, or $1.72 per common share,
after nonrecurring items last year.
For the fourth quarter 1998, Weyerhaeuser reported net earnings of $75
million before nonrecurring items, or 38 cents per common share. During
the same period last year, net earnings before nonrecurring items was $108
million, or 54 cents per common share.
`This was a difficult year for Weyerhaeuser and our industry,' said Steven
R. Rogel, president and chief executive officer. `Most of our markets
experienced very difficult pricing conditions, especially pulp and paper.
The effect of these conditions on our earnings is obvious, but we continue
to see evidence of our focus on improving operating efficiencies. Through
the hard work of our employees in this area, we were able to reduce the
effect lower prices had on our earnings by controlling costs and improving
efficiencies. Although we are seeing improvement in a number of our
markets, we know that we cannot rely on external events to improve our
earnings. Our challenge in 1999, therefore, is to continue making changes
that further improve our operations.'
<PAGE>
Other items affecting 1998 reported results:
. Weyerhaeuser incurred pre-tax charges of $42 million on Year 2000
remediation with $26 million of those charges occurring during the fourth
quarter. Weyerhaeuser includes Year 2000 expenses in reported net
earnings before nonrecurring items.
. The company aligned its reporting structure with new segment reporting
guidelines contained in SFASB 131. Under the new structure, Weyerhaeuser
will report separate results for its Timberlands and Wood Products
sectors. The Timberlands results include the activities associated with
growing and harvesting timber and selling that timber to third parties or
our own facilities. Wood Products results include the performance of the
businesses involved in the manufacturing and distribution of wood
products and other building materials.
Results by segment were:
. Timberlands. Operating earnings for 1998 were $487 million compared with
$535 million the prior year. 1998 results were hurt by a soft export log
market early in the year that weakened prices for both domestic and
export logs. Prices did improve throughout the year and remain above
fourth quarter 1997 levels.
. Wood Products. Operating earnings for the year were $208 million before
the $25 million nonrecurring charge associated with changes to the
British Columbia lumber operations. This compares with $212 million
before nonrecurring charges of $40 million in 1997. Oriented strand
board enjoyed a strong year with volume and prices above 1997 levels.
Lower prices for lumber, however, offset the effects of higher volume
driven by domestic housing starts.
. Pulp, Paper and Packaging. Operating earnings were $192 million before
the nonrecurring $40 million charge associated with streamlining pulp and
paper operations and closing the chlor-alkali plant. This compares with
$192 million before nonrecurring items of $28 million the prior year.
Efforts to streamline operations helped offset weak market conditions.
Prices for most grades of pulp and paper were below 1997 levels.
<PAGE>
. Real Estate and related assets. Operating earnings were $124 million
compared with $66 million before a gain of $45 million for the sale of
Weyerhaeuser Mortgage Company in 1997. Improved operating performance and
the robust housing markets we serve contributed to the record earnings
for Weyerhaeuser Real Estate Company.
Weyerhaeuser Company (NYSE: WY), one of the world's largest integrated
forest products companies, was incorporated in 1900. In 1998, it had sales
of $10.8 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.
###
- ----------------------------------------------------------------------------
Statements by Steven R. Rogel in 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/ Richard J. Taggart
-----------------------------
Its: Vice President and Treasurer
Date: January 21, 1999
