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Weyerhaeuser Reports $1.21 Billion Loss

Monday, February 09, 2009

Press release from the issuing company

Weyerhaeuser Company - today reported a net loss of $1.212 billion for the fourth quarter, or $5.73 per share, on net sales from continuing operations of $1.8 billion. Last year, Weyerhaeuser reported a fourth quarter net loss of $63 million, or 30 cents per share, on net sales from continuing operations of $2.5 billion.

For the full year 2008, Weyerhaeuser reported a net loss of $1.176 billion, or $5.57 per share, on net sales from continuing operations of $8 billion. This compares with net earnings of $790 million, or $3.60 per share, on net sales from continuing operations of $10.8 billion for 2007.

The upheaval in financial markets during fourth quarter was accompanied by accelerated deterioration of housing markets. In addition, declining demand in emerging markets adversely affected our Cellulose Fibers operations. While closing the company’s books for fourth quarter, management determined these conditions had triggered asset impairments in some of the company’s business segments. The company recognized estimated goodwill impairment charges of $827 million in its Wood Products and Cellulose Fibers segments, and after-tax asset impairments and other real-estate related charges of $313 million in its Real Estate and Corporate and Other segments in the fourth quarter. The goodwill impairments are not deductible for income tax purposes.

"These results reflect the speed and severity of the deterioration of market conditions,” said Dan Fulton, president and chief executive officer. “We’re well aware of our near-term challenges and the uncertainty of the timing of the eventual recovery. We are taking actions to weather this storm and improve our performance.”

Weyerhaeuser reclassified the Containerboard, Packaging and Recycling operations as discontinued due to the August 2008 sale of the segment’s assets to International Paper. Weyerhaeuser’s Australian operations were also reclassified as discontinued due to the sale of these assets in July 2008. The net sales and revenues of these operations are included in net sales from discontinued operations for both the fourth quarter and full year of 2007, and for the full year of 2008.

 

 

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