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
April 13, 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 April 13, 1999, Weyerhaeuser Company issued the following press
release:
"FEDERAL WAY, Wash. - Weyerhaeuser Company today reported first-quarter
net earnings of $102 million, or 51 cents per common share, before
special charges. This is an increase of 19 percent compared with $85
million, or 43 cents per common share, for the same period last year.
Net sales for the first quarter were $2.7 billion, up from $2.6 billion
the prior year.
During the first quarter, Weyerhaeuser reported two nonrecurring
charges against earnings:
. An after-tax charge of $90 million, or 45 cents per common share,
resulting from the implementation of a new accounting standard
requiring a charge for unamortized capitalized start-up costs.
. An after-tax charge of $60 million, or 30 cents per common share,
primarily associated with the decision to sell the Composite Products
business.
Including the effect of the special charges, Weyerhaeuser reported a
loss of $48 million, or 24 cents per common share, for the quarter.
`We are encouraged by our first quarter results because they reflect
the progress we're achieving through our focus on operating
efficiencies and improving market conditions,' said Steven R. Rogel,
president and chief executive officer. `The Pulp, Paper and Packaging
sector improved its operating performance over the prior quarter
despite difficult market conditions. Meanwhile, the Wood Products
markets remained strong, especially structural panels, and our
facilities operated very well. The effect of the robust U.S. housing
market also is apparent in the continued excellent results of our Real
Estate business. The Asian log export market is the most stable it has
been in two years and the domestic log market has been improving along
with lumber prices. Pulp, paper and packaging prices also have started
to improve. Despite strengthening markets, our focus remains on
increasing the efficiencies of our operations.'
Results for the first quarter 1999 by segment were:
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. Timberlands reported operating earnings of $119 million compared
with $147 million in 1998. Volume in both the domestic and
foreign log markets was generally stable throughout the quarter
and showed some improvement late in the period. Domestic prices,
however, remain well below last year's levels while export prices
were unchanged from the first quarter 1998.
. Wood Products reported operating earnings of $80 million before a $94
million pre-tax charge for nonrecurring items primarily associated
with the sale of the Composite Products business. This compares with
$26 million for the same quarter in 1998. Including the charge, Wood
Products had a loss of $14 million for the quarter. The strong
earnings before the charge are the result of demand for lumber and
panel products due to the continued strong domestic housing market.
. Pulp, Paper and Packaging reported operating earnings of $42 million
compared with $52 million for the same period last year. Although
lower than the first quarter last year, the sector's performance
improved from fourth quarter levels despite lower prices for most
products.
. Real Estate and related assets reported operating earnings of
$46 million compared with $25 million in 1998. Improved operating
performance and the strength of the housing markets in which the
company operates - especially California - contributed to the
strong performance.
The company incurred expenses of $17 million for Year 2000 remediation
efforts during the first quarter.
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
and 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 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/ Sandy D. McDade
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Its: Secretary
Date: April 14, 1999
