Weyerhaeuser's Q1 net earnings climb to US$144M from US$9M a year ealier on net sales up to US$2B from US$1.5B; CEO notes strongest quarterly earnings since 2005 in wood products business, 18% dividend increase

Wendy Lisney

FEDERAL WAY, Washington , April 26, 2013 (press release) – - Wood Products reports strongest quarterly earnings since 2005
- Board of Directors increased dividend by 18 percent on April 11 to 20 cents per share
- Weyerhaeuser upgraded to investment grade on improved performance

Weyerhaeuser Company (WY) today reported net earnings of $144 million, or 26 cents per diluted share, for the first quarter. This compares with net earnings before special items of $9 million, or 2 cents per diluted share, for the same period last year. Net sales for the first quarter of 2013 totaled $2.0 billion, compared with net sales of $1.5 billion for the first quarter of 2012.

"Our Wood Products business reported its strongest quarterly earnings since 2005, as we effectively leveraged operational improvements in a strengthening housing market," said Dan Fulton, president and chief executive officer. "Our shareholders are benefiting from this improved performance with the decision by our Board of Directors this month to increase our quarterly dividend by 18 percent."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

(millions, except per share data)	2012 4Q	2013 1Q	2012 1Q
Net sales	$2,000	$1,951	$1,494
Net earnings	$143	$144	$41
Weighted average shares outstanding, diluted	547	551	540
Earnings per diluted share	$0.26	$0.26	$0.08
Net earnings before special items	$143	$144	$9
Earnings per diluted share before special items	$0.26	$0.26	$0.02
Net cash from operations	$252	($61)	($60)
Net change in cash and cash equivalents⁽¹⁾	$290	($259)	($225)
Cash and cash equivalents at end of period⁽¹⁾	$898	$639	$728

⁽¹⁾ First quarter of 2013 includes $156 million for debt repayment. Fourth quarter of 2012 includes $110 million received upon maturity of financial investments related to a timber monetization.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)	4Q 2012	1Q 2013	Change
Net sales to unaffiliated customers	$298	$293	($5)
Intersegment sales	185	224	39
Total net sales	$483	$517	$34
Contribution to earnings	$95	$104	$9

1Q 2013 Performance – Earnings improved in the first quarter compared with the fourth due to strong demand for Western logs, partially offset by a $17 million decrease in earnings from disposition of non-strategic timberlands. Selling prices for Western logs increased in export and domestic markets, and fee harvest volumes rose. Selling prices for Southern logs improved slightly, and fee harvest declined due to wet weather.

2Q 2013 Outlook - Excluding dispositions of non-strategic timberlands, Weyerhaeuser expects earnings from the segment to be comparable to the first quarter. The company anticipates improved selling prices for Western domestic and export logs, offset by seasonally higher silviculture expenses. Earnings from disposition of non-strategic timberlands should increase somewhat.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

	4Q 2012	1Q 2013	Change
Net sales to unaffiliated customers	$832	$988	$156
Intersegment sales	16	18	2
Total net sales	$848	$1,006	$158
Contribution to earnings	$38	$178	$140

1Q 2013 Performance - Average price realizations for oriented strand board rose 24 percent compared with the fourth quarter, and lumber realizations increased 20 percent. Operating rates improved across all product lines due to stronger market demand and better mill operating performance. These factors were partially offset by higher raw material costs.

2Q 2013 Outlook - Weyerhaeuser anticipates comparable earnings from the Wood Products segment in the second quarter. The company expects higher sales volumes across all product lines, offset by slightly lower average selling prices for lumber and oriented strand board and slightly higher raw material costs.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)	4Q 2012	1Q 2013	Change
Net sales	$463	$474	$11
Contribution to earnings	$61	$31	($30)

1Q 2013 Performance – Scheduled maintenance costs increased and pulp mill productivity declined due to a greater number of annual maintenance outage days and major maintenance projects. Fiber and energy costs increased, and average price realizations for pulp declined slightly.

2Q 2013 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the second quarter. The company anticipates reduced fiber and energy costs, lower maintenance expense, and slightly higher pulp price realizations.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

	4Q 2012	1Q 2013	Change
Net sales	$407	$196	($211)
Contribution to earnings	$81	$0	($81)

1Q 2013 Performance – Earnings from land and lot sales decreased $65 million compared with the fourth quarter, which included unusually large transactions. Home closings declined seasonally to 463 single-family homes, and average margins on homes closed decreased slightly due to mix and rising input costs. These factors were partially offset by reduced selling costs due to the lower closing volume.

At the end of the first quarter the backlog of homes sold, but not closed, totaled 1,131 units, compared with 777 units one year ago.

2Q 2013 Outlook - Weyerhaeuser expects a slight profit from single-family homebuilding in the second quarter. Home closings should increase seasonally to approximately 600 single-family homes, with a slightly lower average closing price due to mix. Although input costs are rising, average margins should be comparable to the first quarter. The company anticipates higher selling-related expenses due to the additional closing volume.

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. Learn more about us at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 26 to discuss first quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 26.

To join the conference call from within North America, dial 877-296-9413 (access code – 86487340) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86487340). Replays will be available for one week at 855-859-2056 (access code – 86487340) from within North America and at 404-537-3406 (access code – 86487340) from outside North America.

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