Weyerhaeuser Reports Fourth Quarter, Full Year Results

FEDERAL WAY, Wash., Jan. 25, 2013 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $143 million, or 26 cents per diluted share, for the fourth quarter. This compares with net earnings of $65 million, or 12 cents per diluted share, and net earnings before special items of $77 million, or 14 cents per diluted share, for the same period last year. Net sales for the fourth quarter of 2012 totaled $2.0 billion, compared with net sales of $1.6 billion for the fourth quarter of 2011.

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For the full year 2012, Weyerhaeuser reported net earnings of $385 million, or 71 cents per diluted share, on net sales of $7.1 billion. This compares with net earnings of $331 million, or 61 cents per diluted share, on net sales from continuing operations of $6.2 billion for the full year 2011.

"As I look forward to 2013, I am excited by the opportunity to build on the momentum of this past year," said Dan Fulton, president and chief executive officer. "In 2012, we began to realize the results of our work to position the company to capture the benefits of an improving housing market. As a result, our bottom line improved significantly, the Board increased the dividend, and our total shareholder return exceeded 50 percent, one of the best in our industry."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2012 2011 --------------------------------- ---- ---- (millions, except per share data) 3Q 4Q 4Q -------------------------------- --- --- --- Net sales $1,772 $2,000 $1,615 --------- ------ ------ ------ Net earnings $117 $143 $65 ------------ ---- ---- --- Weighted average shares outstanding, diluted 542 547 538 ------------------------------------ --- --- --- Earnings per diluted share $0.22 $0.26 $0.12 -------------------------- ----- ----- ----- Net earnings before special items $117 $143 $77 --------------------------------- ---- ---- --- Earnings per diluted share before special items $0.22 $0.26 $0.14 ----------------------------------------- ----- ----- ----- Net cash from operations $122 $252 $147 ------------------------ ---- ---- ---- Net change in cash and cash equivalents(1) ($253) $290 ($18) --------------------------- ----- ---- ---- Cash and cash equivalents at end of period(1) $608 $898 $953 ----------------------------------- ---- ---- ----

(1) Net change in cash and cash equivalents for the third quarter of 2012 includes $181 million for debt repayment and a $97 million payment on a note related to a timber monetization undertaken in 2002. Fourth quarter of 2012 includes $110 million received upon maturity of financial investments related to that timber monetization.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions) 3Q 2012 4Q 2012 Change ------------------------------ ------- ------- ------ Net sales $267 $298 $31 --------- ---- ---- --- Contribution to pre-tax earnings $80 $95 $15 -------------------------------- --- --- ---

4Q 2012 Performance - Earnings increased compared with the third quarter due to improved selling prices and stronger market demand for export and domestic logs. Fee harvest volumes increased in both the West and the South. Earnings from disposition of non-strategic timberlands decreased $5 million.

1Q 2013 Outlook - Excluding dispositions of non-strategic timberlands, Weyerhaeuser expects earnings from the segment to be comparable to the fourth quarter. The company anticipates improved selling prices for Western domestic and export logs, offset by a seasonal decline in Southern fee harvest volumes. Earnings from dispositions of non-strategic timberlands are expected to decrease.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions) 3Q 2012 4Q 2012 Change ------------------------------ ------- ------- ------ Net sales $816 $832 $16 --------- ---- ---- --- Contribution to pre-tax earnings $59 $38 ($21) -------------------------------- --- --- ----

4Q 2012 Performance - Stronger than expected market conditions for oriented strand board and lumber resulted in higher average selling prices and sales volumes for those products. However, all product lines experienced higher raw material costs. Engineered wood products operating rates decreased due to maintenance and seasonally weaker market conditions.

1Q 2013 Outlook - Weyerhaeuser anticipates significantly higher earnings from the Wood Products segment in the first quarter. The company expects increased average sales realizations for lumber and oriented strand board and seasonally higher sales volumes across all product lines. Unit manufacturing costs are expected to decline due to improved operating rates, partially offset by higher raw material costs.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions) 3Q 2012 4Q 2012 Change ------------------------------ ------- ------- ------ Net sales $459 $463 $4 --------- ---- ---- --- Contribution to pre-tax earnings $78 $61 ($17) -------------------------------- --- --- ----

4Q 2012 Performance - Average sales realizations for pulp declined, and chemical and energy costs increased. Sales realizations and volumes for liquid packaging board decreased due to operational issues that are now resolved. These factors were partially offset by lower maintenance costs and improved pulp mill productivity due to fewer days of scheduled annual maintenance outages.

1Q 2013 Outlook - Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates increased maintenance expenses, partially offset by slightly higher average selling prices for pulp.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions) 3Q 2012 4Q 2012 Change ------------------------------ ------- ------- ------ Net sales $230 $407 $177 --------- ---- ---- ---- Contribution to pre-tax earnings $17 $81 $64 -------------------------------- --- --- ---

4Q 2012 Performance - Fourth quarter included earnings of $16 million from single-family homebuilding and $65 million from land sales, compared with $17 million from single-family homebuilding in the third quarter. Home closings increased seasonally to 842 single-family homes. Average margins on homes closed declined to 20 percent due to mix, and selling costs increased due to the additional closing volume.

At the end of the fourth quarter the backlog of homes sold, but not closed, totaled 774 units, compared with 429 units one year ago.

1Q 2013 Outlook - Weyerhaeuser anticipates a slight profit from single-family homebuilding in the first quarter. Home closings should decline seasonally to approximately 500 homes, with margins comparable to fourth quarter. Selling expenses are expected to decrease due to lower closing volumes.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 6 million acres of timberlands, primarily in the U.S., and manage another 14 million acres under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2012, we generated $7.1 billion in sales and employed approximately 13,200 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our stock trades on the New York Stock exchange under the symbol WY. More information about us is available at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Jan. 25 to discuss fourth quarter results.

To access the conference call from within North America, dial 877-296-9413 (access code - 86484844) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code - 86484844). Replays will be available for one week at 855-859-2056 (access code - 86484844) from within North America and at 404-537-3406 (access code - 86484844) from outside North America.

The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com and is accessible by selecting the "Q4 2012 Weyerhaeuser Co. Earnings Conference Call" link.

The webcast is available through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected site, StreetEvents (www.streetevents.com).

FORWARD LOOKING STATEMENTS

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. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news release.

Some forward-looking statements discuss the company's plans, strategies and intentions. They use words such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans." In addition, these words may use the positive or negative or other variations of those terms.

This release contains forward-looking statements regarding the company's expectations during the first quarter of 2013, including improved selling prices for Western domestic and export logs, a seasonal decline in Southern fee harvest volumes, decreased earnings from dispositions of non-strategic timberlands, and comparable earnings from the Timberlands segment excluding disposition of non-strategic timberlands; increased average sales realizations for lumber and oriented strand board, seasonally higher sales volumes across all product lines, improved operating rates, higher raw material costs, and significantly higher earnings from the Wood Products segment; increased maintenance expenses, slightly higher average selling prices for pulp, and lower earnings from the Cellulose Fibers segment; and seasonally lower home closings, comparable margins, decreased selling expenses due to lower closing volumes, and a slight profit from single-family homebuilding in the Real Estate segment.

Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

Weyerhaeuser Company Exhibit 99.2 Q4.2012 Analyst Package Preliminary results, subject to audit Consolidated Statement of Operations in millions Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 ---- ---- ---- Net sales and revenues $1,494 $1,793 $1,772 $2,000 $1,615 $7,059 $6,216 Cost of products sold 1,290 1,516 1,424 1,580 1,317 5,810 5,120 Gross margin 204 277 348 420 298 1,249 1,096 Selling expenses 42 47 49 56 45 194 178 General and administrative expenses 108 95 107 126 104 436 423 Research and development expenses 7 8 8 9 9 32 30 Charges for restructuring, closures and impairments 12 4 10 6 31 32 83 Other operating income, net (66) (53) (28) (33) (22) (180) (212) --- --- --- --- --- ---- ---- Operating income 101 176 202 256 131 735 594 Interest income and other 12 11 15 14 12 52 47 Interest expense, net of capitalized interest (87) (86) (87) (88) (88) (348) (384) --- --- --- --- --- ---- ---- Earnings from continuing operations before income taxes 26 101 130 182 55 439 257 Income taxes 15 (17) (13) (40) 10 (55) 62 --- --- --- --- --- --- --- Earnings from continuing operations 41 84 117 142 65 384 319 Earnings from discontinued operations, net of income taxes - - - - - - 12 --- --- --- --- --- --- --- Net earnings 41 84 117 142 65 384 331 Add: net loss attributable to noncontrolling interests - - - 1 - 1 - --- --- --- --- --- --- --- Net earnings attributable to Weyerhaeuser common shareholders $41 $84 $117 $143 $65 $385 $331 === === ==== ==== === ==== ==== Per Share Information in millions Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 ---- ---- ---- Earnings per share attributable to Weyerhaeuser common shareholders, basic: Continuing operations $0.08 $0.16 $0.22 $0.26 $0.12 $0.71 $0.60 Discontinued operations - - - - - - 0.02 Net earnings per share $0.08 $0.16 $0.22 $0.26 $0.12 $0.71 $0.62 ===== ===== ===== ===== ===== ===== ===== Earnings per share attributable to Weyerhaeuser common shareholders, diluted: Continuing operations $0.08 $0.16 $0.22 $0.26 $0.12 $0.71 $0.59 Discontinued operations - - - - - - 0.02 Net earnings per share $0.08 $0.16 $0.22 $0.26 $0.12 $0.71 $0.61 ===== ===== ===== ===== ===== ===== ===== Dividends paid per share $0.15 $0.15 $0.15 $0.17 $0.15 $0.62 $0.60 Weighted average shares outstanding (in thousands): Basic 537,368 537,966 539,094 542,101 536,432 539,140 537,534 Diluted 539,728 540,033 542,311 547,137 538,119 542,310 539,879 Common shares outstanding at end of period (in thousands) 537,409 537,526 540,672 542,393 536,425 542,393 536,425 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* in millions Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 ---- ---- ---- Operating income $101 $176 $202 $256 $131 $735 $594 Depreciation, depletion and amortization 113 113 112 118 117 456 476 Non-operating pension and postretirement costs 7 7 7 8 5 29 26 Special items (38) (57) - - 19 (95) (100) Capitalized interest included in cost of products sold 3 19 6 9 12 37 29 Adjusted EBITDA, excluding special items* $186 $258 $327 $391 $284 $1,162 $1,025 ==== ==== ==== ==== ==== ====== ====== * Non-GAAP measure

Weyerhaeuser Company Q4.2012 Analyst Package Preliminary results, subject to audit Consolidated Balance Sheet in millions Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, 2012 2012 2012 2012 2011 ---- ---- ---- ---- ASSETS ------ Forest Products: Current assets: Cash and cash equivalents $726 $857 $602 $893 $950 Receivables, less allowances 479 488 504 468 468 Receivables for taxes 24 6 97 95 22 Inventories 517 487 512 531 476 Prepaid expenses 80 86 83 83 68 Deferred tax assets 113 100 117 65 81 --- --- --- --- --- Total current assets 1,939 2,024 1,915 2,135 2,065 Property and equipment, net 2,829 2,770 2,759 2,859 2,901 Construction in progress 192 208 220 50 145 Timber and timberlands at cost, less depletion charged to disposals 3,970 3,963 3,967 3,961 3,978 Investments in and advances to equity affiliates 189 187 188 192 192 Goodwill 40 40 40 40 40 Deferred tax assets 50 48 56 189 36 Other assets 442 435 352 358 444 Assets held by variable interest entities 914 916 914 805 916 --- --- --- --- 10,565 10,591 10,411 10,589 10,717 ------ ------ ------ ------ ------ Real Estate: Cash and cash equivalents 2 4 6 5 3 Receivables, less allowances 30 38 36 72 41 Real estate in process of development and for sale 606 581 602 658 555 Land being processed for development 943 959 982 904 936 Investments in and advances to equity affiliates 19 20 20 21 21 Deferred tax assets 246 238 233 202 240 Other assets 113 89 98 94 113 Assets held by variable interest entities - 3 6 47 8 --- --- --- --- --- 1,959 1,932 1,983 2,003 1,917 Total assets $12,524 $12,523 $12,394 $12,592 $12,634 ======= ======= ======= ======= ======= LIABILITIES AND EQUITY ---------------------- Forest Products: Current liabilities: Current maturities of long-term debt $167 $184 $340 $340 $12 Accounts payable 343 360 356 329 336 Accrued liabilities 536 576 558 561 593 --- --- --- --- --- Total current liabilities 1,046 1,120 1,254 1,230 941 Long-term debt 4,026 4,005 3,842 3,842 4,181 Deferred income taxes 158 140 124 - 129 Deferred pension and other postretirement benefits 1,470 1,429 1,378 1,936 1,467 Other liabilities 407 400 477 493 408 Liabilities (nonrecourse to the company) held by variable interest entities 775 778 680 681 776 --- --- --- --- --- 7,882 7,872 7,755 8,182 7,902 ----- ----- ----- ----- ----- Real Estate: Long-term debt 283 283 109 109 285 Other liabilities 154 171 177 187 172 Liabilities (nonrecourse to the company) held by variable interest entities - - - 1 8 --- --- --- --- --- 437 454 286 297 465 Total liabilities 8,319 8,326 8,041 8,479 8,367 ----- ----- ----- ----- ----- Equity: Total Weyerhaeuser shareholders' interest 4,197 4,186 4,340 4,070 4,263 Noncontrolling interests 8 11 13 43 4 --- --- --- --- --- Total equity 4,205 4,197 4,353 4,113 4,267 Total liabilities and equity $12,524 $12,523 $12,394 $12,592 $12,634 ======= ======= ======= ======= =======

Weyerhaeuser Company Q4.2012 Analyst Package Preliminary results, subject to audit Consolidated Statement of Cash Flows in millions Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 Cash flows from operations: Net earnings $41 $84 $117 $142 $65 $384 $331 Noncash charges (credits) to income: Depreciation, depletion and amortization 113 113 112 118 117 456 480 Deferred income taxes, net (6) 13 15 40 51 62 (26) Pension and other postretirement benefits (28) (30) 19 20 21 (19) 81 Share-based compensation expense 10 8 10 9 6 37 25 Charges for impairment of assets 8 4 7 5 19 24 56 Net gains on dispositions of assets (7) (10) (22) (30) (9) (69) (236) Foreign exchange transaction (gains) losses (7) 9 (10) 2 (5) (6) 6 Change in: Receivables less allowances (5) (18) (10) - (19) (33) (53) Receivable for taxes (2) 18 (1) 2 (18) 17 (37) Inventories (40) 28 (22) (20) (6) (54) (46) Real estate and land (55) 7 (47) 20 37 (75) (12) Prepaid expenses (8) (12) 2 2 17 (16) 3 Accounts payable and accrued liabilities (56) 65 1 (5) (59) 5 (133) Deposits on land positions and other assets - 22 (11) (7) 5 4 (4) Pension and postretirement contributions (35) (33) (41) (36) (79) (145) (143) Other 17 (1) 3 (10) 4 9 (1) --- --- --- --- --- --- --- Net cash from operations (60) 267 122 252 147 581 291 --- --- --- --- --- --- --- Cash flows from investing activities: Property and equipment (54) (68) (75) (59) (76) (256) (212) Timberlands reforestation (10) (7) (5) (7) (6) (29) (29) Proceeds from sale of assets 6 18 12 44 9 80 362 Proceeds of investments (payments of liabilities) held by special purpose entities - - (97) 110 - 13 - Other 1 (1) (1) 1 7 - 1 --- --- --- --- --- --- --- Cash from investing activities (57) (58) (166) 89 (66) (192) 122 --- --- ---- --- --- ---- --- Cash flows from financing activities: Cash dividends (81) (80) (81) (92) (81) (334) (323) Change in book overdrafts (29) 9 (12) - 28 (32) 2 Payments on debt (2) (4) (181) - (33) (187) (583) Exercises of stock options 5 2 66 39 1 112 38 Repurchase of common stock - - - - (13) - (37) Other (1) (3) (1) 2 (1) (3) (24) --- --- --- --- --- --- --- Cash from financing activities (108) (76) (209) (51) (99) (444) (927) ---- --- ---- --- --- ---- ---- Net change in cash and cash equivalents (225) 133 (253) 290 (18) (55) (514) Cash and cash equivalents at beginning of period 953 728 861 608 971 953 1,467 --- --- --- --- --- --- ----- Cash and cash equivalents at end of period $728 $861 $608 $898 $953 $898 $953 ==== ==== ==== ==== ==== ==== ==== Cash paid (received) during the year for: Interest, net of amount capitalized $116 $57 $117 $51 $58 $341 $420 Income taxes $(10) $(5) $1 $1 $7 $(13) $28

Weyerhaeuser Company Total Company Statistics Q4.2012 Analyst Package Preliminary results, subject to audit Special Items Included in Net Earnings in millions Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 ---- ---- Net earnings $41 $84 $117 $143 $65 $385 $331 Income tax adjustments - - - - - - (83) Gain on sale of 82,000 acres of non-strategic timberlands - - - - - - (96) Loss on early extinguishment of debt - - - - - - 16 Restructuring, impairments and other charges 10 - - - 12 10 36 Gain on postretirement plan amendment (34) (33) - - - (67) - Gain on sale of properties - (4) - - - (4) (9) Tax settlements (8) - - - - (8) - Charges related to the sale of hardwoods - - - - - - 14 Gain on sale of Westwood Shipping Lines - - - - - - (31) --- --- --- Net earnings before special items $9 $47 $117 $143 $77 $316 $178 === === ==== ==== === ==== ==== Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 ---- ---- Net earnings per diluted share $0.08 $0.16 $0.22 $0.26 $0.12 $0.71 $0.61 Income tax adjustments - - - - - - (0.15) Gain on sale of 82,000 acres of non-strategic timberlands - - - - - - (0.18) Loss on early extinguishment of debt - - - - - - 0.03 Restructuring, impairments and other charges 0.02 - - - 0.02 0.02 0.07 Gain on postretirement plan amendment (0.06) (0.06) - - - (0.12) - Gain on sale of properties - (0.01) - - - (0.01) (0.02) Tax settlements (0.02) - - - - (0.02) - Charges related to the sale of hardwoods - - - - - - 0.03 Gain on sale of Westwood Shipping Lines - - - - - - (0.06) --- --- --- --- --- Net earnings before special items per diluted share $0.02 $0.09 $0.22 $0.26 $0.14 $0.58 $0.33 ===== ===== ===== ===== ===== ===== ===== Selected Total Company Items, Excluding Discontinued Operations in millions Q1 Q2 Q3 Q4 Year-to-date --- --- --- --- ------------ Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Dec 31, 2012 2012 2012 2012 2011 2012 2011 ---- ---- Depreciation, depletion and amortization: Cost of products sold $102 $103 $102 $109 $104 $416 $422 Selling, general and administrative expenses 11 10 10 9 13 40 54 Total depreciation, depletion and amortization $113 $113 $112 $118 $117 $456 $476 ==== ==== ==== ==== ==== ==== ==== Pension and postretirement costs: Pension and postretirement costs allocated to business segments $13 $14 $12 $12 $12 $51 $46 Pension and postretirement costs not allocated 7 7 7 8 5 29 26 Total company pension and postretirement costs $20 $21 $19 $20 $17 $80 $72 === === === === === === === Total decrease (increase) in Forest Products working capital (1) $(148) $103 $(29) $(85) $(41) $(159) $(211) Cash spent for capital expenditures $(64) $(75) $(80) $(66) $(82) $(285) $(238) (1)Working capital does not include cash balances.

Weyerhaeuser Company Timberlands Segment Q4.2012 Analyst Package Preliminary results, subject to audit Segment Statement of Operations in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Sales to and revenues from unaffiliated customers $250 $262 $267 $298 $274 $1,077 $1,044 Intersegment sales 190 146 162 185 167 683 646 --- --- --- --- --- --- --- Total net sales and revenues 440 408 429 483 441 1,760 1,690 Cost of products sold 353 313 336 374 358 1,376 1,290 --- --- --- --- --- ----- ----- Gross margin 87 95 93 109 83 384 400 Selling expenses 2 2 3 2 3 9 10 General and administrative expenses 23 21 21 20 18 85 81 Research and development expenses 4 5 4 6 6 19 18 Restructuring, closures and impairments - - - 2 - 2 - Other operating income, net (11) (10) (14) (14) (14) (49) (196) --- --- --- --- --- --- ---- Operating income 69 77 79 93 70 318 487 Interest income and other 1 - 1 1 1 3 4 Loss attributable to noncontrolling interest - - - 1 - 1 - --- --- --- --- Net contribution to earnings** $70 $77 $80 $95 $71 $322 $491 === === === === === ==== ==== Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Operating income $69 $77 $79 $93 $70 $318 $487 Depreciation, depletion and amortization 35 34 35 38 35 142 137 Special items - - - - - - (152) Adjusted EBITDA, excluding special items* $104 $111 $114 $131 $105 $460 $472 ==== ==== ==== ==== ==== ==== ==== * Non-GAAP measure Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Gain on sale of 82,000 acres of non-strategic timberlands $ - $ - $ - $ - $ - $ - $152 Selected Segment Items Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Total decrease (increase) in working capital (1) $(9) $6 $19 $(37) $(6) $(21) $(26) Cash spent for capital expenditures $(12) $(15) $(17) $(16) $(13) $(60) $(53) (1)Working capital does not include cash balances. Segment Statistics Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Third Party Logs: Net Sales and Revenue (millions) West $130 $146 $132 $151 $139 $559 $545 South 50 56 60 67 53 233 196 Canada 7 2 5 5 5 19 17 --- --- --- --- --- --- --- Total Logs 187 204 197 223 197 811 758 Pay as cut timber sales 11 9 8 9 9 37 34 Timberlands exchanges 8 7 24 20 15 59 77 Higher and better use land sales 4 5 4 9 14 22 25 Minerals, oil and gas 7 7 8 9 10 31 53 Products from international operations 25 29 26 26 27 106 86 Other products 8 1 - 2 2 11 11 --- --- --- --- --- --- --- Total $250 $262 $267 $298 $274 $1,077 $1,044 ==== ==== ==== ==== ==== ====== ====== West $99.10 $94.47 $89.28 $96.46 $99.71 $94.72 $103.57 Logs Third Party Sales Realizations (per cubic meter) South $40.48 $41.15 $42.04 $43.30 $39.82 $41.83 $40.10 Canada $36.35 $34.66 $35.23 $38.70 $34.04 $36.51 $34.65 International $22.97 $23.53 $23.76 $24.30 $17.03 $23.66 $28.11 West 1,308 1,551 1,480. 1,559 1,396 5,898 5,267 Logs Third Party Sales Volumes (cubic meters, thousands) South 1,228 1,354 1,430. 1,563 1,327 5,575 4,879 Canada 205 54 133. 139 146 531 479 International 78 82 99. 84 75 343 314 --- --- --- --- --- --- --- Total 2,819 3,041 3,142 3,345 2,944 12,347 10,939 ===== ===== ===== ===== ===== ====== ====== West 1,679 1,831 1,784. 1,876 1,633 7,170 6,595 Logs Fee Harvest Volumes (cubic meters, thousands) South 2,714 2,788 2,809. 3,177 2,668 11,488 9,738 International 172 161 198. 232 265 763 854 --- --- ---- --- --- --- --- Total 4,565 4,780 4,791 5,285 4,566 19,421 17,187 ===== ===== ===== ===== ===== ====== ======

Weyerhaeuser Company Wood Products Segment Q4.2012 Analyst Package Preliminary results, subject to audit Segment Statement of Operations in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Sales to and revenues from unaffiliated customers $634 $776 $816 $832 $542 $3,058 $2,276 Intersegment sales 20 20 18 16 19 74 80 --- --- --- --- --- --- --- Total net sales and revenues 654 796 834 848 561 3,132 2,356 Cost of products sold 611 708 713 748 573 2,780 2,359 --- --- --- --- --- ----- ----- Gross margin 43 88 121 100 (12) 352 (3) Selling expenses 21 21 23 24 19 89 79 General and administrative expenses 29 29 31 34 27 123 113 Research and development expenses 1 1 2 1 1 5 4 Charges for restructuring, closures and impairments 1 2 2 1 20 6 64 Other operating costs (income), net 5 (1) 4 2 (2) 10 (17) --- --- --- --- --- --- --- Operating income (loss) (14) 36 59 38 (77) 119 (246) Interest income and other 1 - - - - 1 3 --- --- --- --- --- --- --- Net contribution to earnings from continuing operations (13) 36 59 38 (77) 120 (243) Net contribution to earnings from discontinued hardwoods operations - - - - - - (25) Net contribution to earnings** $(13) $36 $59 $38 $(77) $120 $(268) ==== === === === ==== ==== ===== Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Operating income (loss) $(14) $36 $59 $38 $(77) $119 $(246) Depreciation, depletion and amortization 34 33 33 33 35 133 151 Special items - (6) - - 19 (6) 52 Adjusted EBITDA, excluding special items* $20 $63 $92 $71 $(23) $246 $(43) === === === === ==== ==== ==== * Non-GAAP measure Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Gain on sale of property $ - $6 $ - $ - $ - $6 $5 Charges for restructuring and impairments - - - - (19) - (57) --- --- --- --- --- --- --- Total special items from continuing operations - 6 - - (19) 6 (52) Charges related to sale of discontinued hardwoods operations - - - - - - (22) Total $ - $6 $ - $ - $(19) $6 $(74) ======== === ======== ======== ==== === ==== Selected Segment Items Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Total decrease (increase) in working capital (1) $(112) $5 $(21) $9 $18 $(119) $(23) Cash spent for capital expenditures $(6) $(15) $(16) $(19) $(14) $(56) $(35) (1)Working capital does not include cash balances. Segment Statistics in millions, except for third-party sales realizations Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Structural Third Party Net Sales and Revenue $291 $370 $363 $376 $256 $1,400 $1,087 Lumber (board feet) Third Party Sales Realizations $311 $350 $359 $366 $296 $347 $303 Third Party Sales Volumes 937 1,056 1,013 1,025 863 4,031 3,586 Production Volumes 958 1,004 945 939 842 3,846 3,528 Engineered Third Party Net Sales and Solid Revenue $65 $70 $76 $68 $55 $279 $235 Section (cubic feet) Third Party Sales Realizations $1,830 $1,789 $1,800 $1,817 $1,783 $1,808 $1,920 Third Party Sales Volumes 3.6 3.9 4.2 3.7 3.1 15.4 12.3 Production Volumes 3.7 3.8 4.3 3.6 2.7 15.4 13.4 Engineered Third Party Net Sales and Revenue $41 $49 $53 $47 $37 $190 $161 I-joists (lineal feet) Third Party Sales Realizations $1,285 $1,211 $1,248 $1,265 $1,258 $1,250 $1,264 Third Party Sales Volumes 32 40 43 37 30 152 128 Production Volumes 34 37 39 37 26 147 122 Oriented Third Party Net Sales and Strand Revenue $111 $138 $169 $194 $90 $612 $354 Board (square feet 3/8') Third Party Sales Realizations $197 $214 $268 $290 $173 $244 $179 Third Party Sales Volumes 565 643 630 670 516 2,508 1,977 Production Volumes 601 626 642 642 541 2,511 2,127 Softwood Third Party Net Sales and Revenue $23 $26 $34 $32 $18 $115 $66 Plywood (square feet 3/8') Third Party Sales Realizations $309 $332 $356 $347 $274 $338 $264 Third Party Sales Volumes 73 81 95 91 65 340 249 Production Volumes 51 50 54 59 47 214 197

Weyerhaeuser Company Cellulose Fibers Segment Q4.2012 Analyst Package Preliminary results, subject to audit Segment Statement of Operations in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Total net sales and revenues $473 $459 $459 $463 $523 $1,854 $2,058 Cost of products sold 407 404 364 385 368 1,560 1,524 --- --- --- --- --- ----- ----- Gross margin 66 55 95 78 155 294 534 Selling expenses 4 5 4 5 5 18 18 General and administrative expenses 20 17 19 18 19 74 76 Research and development expenses 2 2 2 2 2 8 8 Charges for restructuring, closures and impairments - - - - 1 - 1 Other operating income, net (9) (4) (5) (6) (7) (24) (19) --- --- --- --- --- --- --- Operating income 49 35 75 59 135 218 450 Interest income and other (1) 1 3 2 1 5 2 --- --- --- --- Net contribution to earnings** $48 $36 $78 $61 $136 $223 $452 === === === === ==== ==== ==== Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Operating income $49 $35 $75 $59 $135 $218 $450 Depreciation, depletion and amortization 37 36 37 40 37 150 147 Adjusted EBITDA, excluding special items* $86 $71 $112 $99 $172 $368 $597 === === ==== === ==== ==== ==== * Non-GAAP measure Selected Segment Items Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Total decrease (increase) in working capital (1) $45 $24 $(20) $(30) $(28) $19 $(65) Cash spent for capital expenditures $(45) $(44) $(45) $(26) $(54) $(160) $(146) (1)Working capital does not include cash balances. Segment Statistics Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Pulp Third Party Net Sales and Revenue (millions) $367 $348 $354 $364 $419 $1,433 $1,617 (air-dry metric tons) Third Party Sales Realizations $818 $819 $818 $799 $895 $813 $921 Third Party Sales Volumes (thousands) 449 425 432 456 468 1,762 1,756 Production Volumes (thousands) 438 417 453 465 460 1,773 1,769 Liquid Third Party Net Sales and Revenue (millions) $83 $90 $84 $75 $81 $332 $346 Packaging Board (tons) Third Party Sales Realizations $1,181 $1,176 $1,155 $1,085 $1,151 $1,150 $1,165 Third Party Sales Volumes (thousands) 70 76 74 69 70 289 297 Production Volumes (thousands) 65 78 77 72 79 292 307

Weyerhaeuser Company Real Estate Segment Q4.2012 Analyst Package Preliminary results, subject to audit Segment Statement of Operations in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Total net sales and revenues $137 $296 $230 $407 $276 $1,070 $838 Cost of products sold 113 248 175 276 191 812 628 --- --- --- --- --- --- --- Gross margin 24 48 55 131 85 258 210 Selling expenses 15 19 19 25 18 78 71 General and administrative expenses 17 15 17 27 19 76 73 Charges for restructuring, closures and impairments 1 1 3 1 10 6 14 Other operating income, net - (1) - (1) (1) (2) (1) --- --- --- --- --- --- --- Operating income (loss) (9) 14 16 79 39 100 53 Interest income and other 1 1 1 2 2 5 5 Net contribution to earnings $(8) $15 $17 $81 $41 $105 $58 === === === === === ==== === Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Operating income (loss) $(9) $14 $16 $79 $39 $100 $53 Depreciation, depletion and amortization 2 3 3 4 4 12 13 Capitalized interest included in cost of products sold 3 14 5 8 10 30 23 Adjusted EBITDA, excluding special items* $(4) $31 $24 $91 $53 $142 $89 === === === === === ==== === * Non-GAAP measure Selected Segment Items Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Cash from operations $(32) $43 $(24) $77 $43 $64 $18 Cash spent for capital expenditures $(1) $ - $(1) $(2) $(1) $(4) $(3) Segment Statistics Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Net sales and revenues: Single-family housing $131 $190 $229 $320 $232 $870 $768 Land 3 105 1 84 44 193 67 Other 3 1 - 3 - 7 3 --- --- --- --- --- --- --- Total net sales and revenue $137 $296 $230 $407 $276 $1,070 $838 ==== ==== ==== ==== ==== ====== ==== Single-family homes sold 697 764 637 561 406 2,659 1,902 Single-family homes closed 349 508 615 842 582 2,314 1,912 Single-family homes sold but not closed (backlog) 777 1,033 1,055 774 429 774 429 Single-family cancellation rate 10.1 % 15.4 % 18.3 % 15.9 % 18.1 % 14.9 % 15.7 % Single-family buyer traffic 14,272 17,677 17,894 14,567 10,533 64,410 50,125 Single-family average price of homes closed (in thousands) $376 $374 $372 $381 $398 $376 $402 Single-family home gross margin - excluding impairments (1) 17.3 % 19.5 % 24.3 % 20.2 % 25.4 % 20.7 % 23.3 % (1)Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).

Weyerhaeuser Company Unallocated Items Q4.2012 Analyst Package Preliminary results, subject to audit Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve. Contribution to Earnings in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Unallocated corporate function expenses $(6) $(3) $(5) $(8) $(8) $(22) $(44) Unallocated share- based compensation (5) (1) (7) (3) (6) (16) (5) Unallocated pension & postretirement costs (7) (7) (7) (8) (5) (29) (26) Foreign exchange gains (losses) 6 (8) 11 (2) 4 7 (5) Elimination of intersegment profit in inventory and LIFO ** (12) (2) (10) 8 (6) (16) (25) Other 30 35 (9) - (15) 56 (45) --- --- --- --- --- --- --- Operating income (loss) 6 14 (27) (13) (36) (20) (150) Interest income and other 10 9 10 9 8 38 33 --- --- --- --- --- --- --- Net contribution to earnings from continuing operations 16 23 (17) (4) (28) 18 (117) Net contribution to earnings from discontinued operations - - - - - - 45 --- --- --- --- Net contribution to earnings $16 $23 $(17) $(4) $(28) $18 $(72) === === ==== === ==== === ==== **We now report the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of business operating results. Prior period results have been adjusted to reflect the change. Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* in millions Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Operating income (loss) $6 $14 $(27) $(13) $(36) $(20) $(150) Depreciation, depletion and amortization 5 7 4 3 6 19 28 Non-operating pension and postretirement costs 7 7 7 8 5 29 26 Special items (38) (51) - - - (89) - Capitalized interest included in cost of products sold - 5 1 1 2 7 6 Adjusted EBITDA, excluding special items* $(20) $(18) $(15) $(1) $(23) $(54) $(90) ==== ==== ==== === ==== ==== ==== * Non-GAAP measure - see below for definition. Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Gain on postretirement plan amendment $52 $51 $ - $ - $ - $103 $ - Restructuring, impairments and other charges (14) - - - - (14) - --- --- --- --- --- --- --- Total special items from continuing operations 38 51 - - - 89 - Gain on sale of property - - - - - - 9 Gain on sale of Westwood Shipping Lines - - - - - - 49 Total $38 $51 $ - $ - $ - $89 $58 === === ======== ======== ======== === === Unallocated Selected Items Q1.2012 Q2.2012 Q3.2012 Q4.2012 Q4.2011 YTD.2012 YTD.2011 ------- ------- ------- ------- ------- -------- -------- Total decrease (increase) in working capital (1) $(72) $68 $(7) $(27) $(25) $(38) $(97) Cash spent for capital expenditures $ - $(1) $(1) $(3) $ - $(5) $(1) (1)Working capital does not include cash balances. *Adjusted EBITDA, excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and interest included in cost of products sold. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

For more information contact:

Analysts - Kathryn McAuley (253) 924-2058 Media - Anthony Chavez (253) 924-7148

Web site: http://www.weyerhaeuser.com/