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

April 26, 2006

(Date of earliest event report)

WEYERHAEUSER COMPANY

(Exact name of registrant as specified in charter)

Washington		1-4825		91-0470860
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(IRS Employer Identification Number)

Federal Way, Washington 98063-9777

(Address of principal executive offices) (zip code)

Registrant’s telephone number, including area code:
(253) 924-2345

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C., 20549

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 26, 2006, Weyerhaeuser Company issued a press release stating the following:

Weyerhaeuser Reports First Quarter Earnings,
Including Paper Business Goodwill Impairment

FEDERAL WAY, Wash. (April 26, 2006) — Weyerhaeuser Company (NYSE: WY) today reported a net loss of $580 million for first quarter 2006, or $2.36 per diluted share, on net sales of $5.4 billion. This includes an impairment of goodwill associated with the company’s fine paper business.

Excluding the goodwill impairment of $746 million, the company earned $166 million, or 67 cents per diluted share. This compares with net earnings of $239 million, or 98 cents per diluted share, on net sales of $5.4 billion for the same period last year.

The company also announced today that, as a part of its previously announced strategic review, it is considering alternatives for its fine paper business. The alternatives range from continuing to hold and operate the assets to a possible sale or other disposition. The company said it is in active discussions with several parties, but there is no assurance that these discussions will lead to an agreement or result in a transaction.

“This announcement marks an important milestone in our ongoing strategic review,” said Steven R. Rogel, chairman, president and chief executive officer. “We remain committed to seeking the best alternatives to create value for shareholders.”

First quarter 2006 earnings include the following after-tax items:

	•		A charge of $746 million, or $3.03 per diluted share, for the estimated amount of a write-off of goodwill associated with the fine paper business. This estimate represents the full amount of goodwill associated with that business. This estimate is undergoing further evaluation and will be adjusted, if necessary, prior to the filing of the company’s 10-Q.
	•		Income of $12 million in the Real Estate business, or 5 cents per diluted share, associated with insurance recoveries and recognition of deferred income in connection with partnership restructurings.
	•		A charge of $17 million, or 7 cents per diluted share, for foreign exchange losses.
	•		A charge of $14 million, or 6 cents per diluted share for stock-based compensation. The company adopted the provisions of FASB Statement 123R, the stock-based compensation accounting standard, in the first quarter.

First quarter 2005 earnings include the following after-tax items:

	•		A charge of $8 million, or 3 cents per diluted share, associated with the settlement of a linerboard antitrust lawsuit.
	•		A charge of $5 million, or 2 cents per diluted share associated with the closure of facilities.

“During the quarter we began to see some improvement in market conditions for our cellulose fiber, fine paper, containerboard and packaging businesses which resulted in price improvement

in the first quarter,” said Steven R. Rogel, chairman, president and chief executive officer. “We believe this trend will continue and have a positive effect upon our second quarter earnings.”

SUMMARY OF FIRST QUARTER FINANCIAL HIGHLIGHTS

Millions (except per share data)		1Q 2006				1Q 2005				Change
Net earnings (loss)		$	(580	)		$	239			$	(819	)
Earnings (loss) per diluted share		$	(2.36	)		$	0.98			$	(3.34	)
Net sales		$	5,376			$	5,371			$	5

SEGMENT RESULTS FOR FIRST QUARTER (Contributions to Pre-Tax Earnings)

Millions		1Q 2006				1Q 2005				Change
Timberlands		$	198			$	200			$	(2	)
Wood Products		$	117			$	131			$	(14	)
Cellulose Fiber and White Papers		$	(763	)		$	19			$	(782	)
Containerboard, Packaging and Recycling		$	22			$	48			$	(26	)
Real Estate and Related Assets		$	172			$	183			$	(11	)

TIMBERLANDS

		1Q 2006				4Q 2005				Change
Contribution to pre-tax earnings (millions)		$	198			$	183			$	15

First quarter earnings increased slightly from the fourth quarter 2005 due to increasing Western log prices and lower first quarter operating costs in the West and South. Fourth quarter 2005 included a $6 million pre-tax charge due to the effects of Hurricane Katrina.

Weyerhaeuser expects second quarter market conditions and earnings to be similar to first quarter.

WOOD PRODUCTS

		1Q 2006				4Q 2005				Change
Contribution to pre-tax earnings (millions)		$	117			$	26			$	91

Earnings in the first quarter of 2006 were comparable to fourth quarter 2005 after excluding $91 million of pre-tax charges associated with facility closures taken in the fourth quarter of 2005. Construction activity remained healthy during the first quarter and prices were mixed.

Prices for oriented strand board were slightly lower than fourth quarter 2005 and shipment volumes were comparable.

Lumber prices trended up during the quarter. However, shipment volume decreased 7 percent.

Prices and shipment volumes for engineered lumber products were comparable to the prior quarter.

Manufacturing costs for lumber products remained constant quarter to quarter, and manufacturing costs for engineered products declined slightly primarily due to higher productivity.

The company incurred $11 million in countervailing and anti-dumping duties and related costs on Canadian softwood lumber the company sold into the United States in the first quarter of 2006, compared with $16 million in the fourth quarter of 2005.

Weyerhaeuser expects higher second quarter earnings compared with first quarter due to seasonal increase in building activity and stable raw materials and manufacturing costs.

CELLULOSE FIBER AND WHITE PAPERS

		1Q 2006				4Q 2005				Change
Contribution (charge) to pre-tax earnings (millions)		$	(763	)		$	(477	)		$	(286	)

First quarter includes a goodwill impairment charge of $746 million. Fourth quarter 2005 includes closure related costs of $427 million for the Cosmopolis, Wash. pulp operations; Prince Albert, Saskatchewan pulp and paper operations; and a paper machine at Dryden, Ontario.

Excluding the charges, first quarter performance improved from fourth quarter 2005.

Fine paper and cellulose fiber products both experienced stronger market conditions, with prices increasing on a quarter-to-quarter basis. Fine paper sales volumes declined modestly with the January closure of Prince Albert paper operations while cellulose fiber volume improved slightly. Improved productivity and lower freight costs were offset by increases in raw materials and chemicals. Energy costs remained stable at their high level.

Weyerhaeuser expects the segment to show improved earnings in second quarter despite a seasonal increase in annual scheduled maintenance.

CONTAINERBOARD, PACKAGING AND RECYCLING

		1Q 2006				4Q 2005				Change
Contribution (charge) to pre-tax earnings (millions)		$	22			$	(188	)		$	210

Earnings improved from the fourth quarter due to containerboard and packaging price increases. Packaging shipments declined from the strong fourth quarter levels, but were higher compared with the first quarter of last year. Fourth quarter 2005 results included pre-tax charges of $130 million for facility closures and $38 million for a settlement of containerboard antitrust lawsuits.

The company expects continued improvement in earnings from this segment in the second quarter.

REAL ESTATE AND RELATED ASSETS

		1Q 2006				4Q 2005				Change
Contribution to pre-tax earnings (millions)		$	172			$	250			$	(78	)

Earnings decreased from fourth quarter due to decreased margins and seasonally lower single-family home closings. The number of single-family homes closed in first quarter declined 40 percent as compared to fourth quarter. First quarter results included land sales earnings of approximately $33 million and $17 million from insurance recoveries and partnership restructurings. Fourth quarter results included a $33 million pre-tax impairment charge related to unimproved land in Northern California. The backlog of homes sold, but not closed, at the end of the first quarter represents more than five months’ sales. This level is similar to the backlog at the end of the fourth quarter.

Weyerhaeuser expects increased single-family closing activity in the second quarter. Total real estate and related earnings, however, are expected to decline slightly from the first quarter due to lower land sales.

The company will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 26 to discuss the first quarter results.

To access the conference call from within North America, dial 1-888-221-5699 at least 15 minutes before the call. Those calling from outside North America should dial 1-706-643-3795. Replays will be available for one week at 1-800-642-1687 (access code — 7766499) from within North America and at 1-706-645-9291 (access code — 7766499) from outside North America.

The call is being webcast through Weyerhaeuser’s Internet site at http://investor.weyerhaeuser.com by clicking on the “Q1 2006 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 http://www.fulldisclosure.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected site, StreetEvents (http://www.streetevents.com).

Weyerhaeuser Company, one of the world’s largest integrated forest products companies, was incorporated in 1900. In 2005, sales were $22.6 billion. It has offices or operations in 18 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. Additional information about Weyerhaeuser’s businesses, products and practices is available at http://www.weyerhaeuser.com.

###

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. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “may,” “will,” “believes,” “should,” “approximately,” anticipates,” “estimates,” and “plans,” and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expectations regarding the company’s markets in the second quarter 2006; expected earnings and performance of the company’s business segments during the second quarter 2006, demand and pricing for the company’s products in the second quarter 2006, stable raw material and manufacturing costs in the second quarter 2006, seasonal increase in building activity in the second quarter of 2006, seasonal increase in annual maintenance outages in the second quarter 2006, increased single-family housing closings in second quarter 2006, lower land sales in the second quarter of 2006, the completion of a transaction involving the fine paper business; and related matters. 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, which may be tied to the relative strength of various U.S. business segments;
•		Energy prices;
•		Raw material prices;
•		Chemical prices;
•		Performance of the company’s manufacturing operations including unexpected maintenance requirements;
•		The successful execution of internal performance plans;
•		The level of competition from domestic and foreign producers;
•		The effect of forestry, land use, environmental and other governmental regulations, and changes in accounting regulations;
•		The effect of weather;
•		The risk of loss from fires, floods, windstorms, hurricanes and other natural disasters;

•		Transportation costs;
•		Legal proceedings;
•		The effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation; and
•		Performance of pension fund investments and related derivatives.

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, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar, and restrictions on international trade or tariffs imposed on imports, including the countervailing and anti-dumping duties imposed on the company’s softwood lumber shipments from Canada to the United States. These and other factors could cause or contribute to actual results differing materially from such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will occur, or if any of them occurs, what effect they will have on the company’s results of operations or financial condition. The company expressly declines any obligation to publicly revise any forward-looking statements that have been made to reflect the occurrence of events after the date of this news release.

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)

		Q1								Q2				Q3				Q4				Year End
CONSOLIDATED EARNINGS		March 26,				March 27,				June 26,				Sept. 25,				Dec. 25,				Dec. 25,
(in millions)		2006				2005				2005				2005				2005				2005
Net sales and revenues:
Weyerhaeuser (1)		$	4,686			$	4,716			$	5,160			$	4,986			$	4,852			$	19,714
Real Estate and Related Assets			690				655				648				596				1,016				2,915
Total net sales and revenues			5,376				5,371				5,808				5,582				5,868				22,629
Costs and expenses:
Weyerhaeuser:
Costs of products sold			3,719				3,621				3,947				3,912				3,980				15,460
Depreciation, depletion and amortization			312				323				325				327				332				1,307
Selling expenses			111				117				118				118				108				461
General and administrative expenses			257				222				218				236				223				899
Research and development expenses			16				14				12				18				17				61
Taxes other than payroll and income taxes			44				46				48				69				16				179
Charges for integration and restructuring			—				5				4				2				10				21
Charges for closure of facilities			1				5				3				29				656				693
Impairment of goodwill (2)			746				—				—				—				—				—
Other operating costs, net (3) (4)			30				9				(40	)			(32	)			3				(60	)
			5,236				4,362				4,635				4,679				5,345				19,021
Real Estate and Related Assets:
Costs and operating expenses (5)			481				426				441				401				677				1,945
Depreciation and amortization			3				3				4				4				5				16
Selling expenses			37				33				36				36				46				151
General and administrative expenses			30				24				25				27				28				104
Taxes other than payroll and income taxes			1				1				—				1				1				3
Other operating costs, net			(3	)			—				(2	)			(2	)			1				(3	)
Impairment of long-lived assets			—				—				—				—				33				33
			549				487				504				467				791				2,249
Total costs and expenses			5,785				4,849				5,139				5,146				6,136				21,270
Operating income			(409	)			522				669				436				(268	)			1,359
Interest expense and other:
Weyerhaeuser:
Interest expense incurred (6)			(152	)			(196	)			(179	)			(193	)			(171	)			(739	)
Less interest capitalized			16				—				2				3				4				9
Interest income and other			19				27				20				143				24				214
Equity in income (loss) of affiliates (7)			3				—				4				2				(12	)			(6	)
Real Estate and Related Assets:
Interest expense incurred			(14	)			(14	)			(14	)			(13	)			(14	)			(55	)
Less interest capitalized			14				14				14				13				14				55
Interest income and other			10				5				(2	)			4				5				12
Equity in income of unconsolidated entities (8)			21				10				13				14				20				57
Earnings before income taxes			(492	)			368				527				409				(398	)			906
Income taxes (9)			(88	)			(129	)			(228	)			(120	)			153				(324	)
Earnings from continuing operations			(580	)			239				299				289				(245	)			582
Earnings from discontinued operations, net of taxes (10)			—				—				121				(4	)			34				151
Net earnings		$	(580	)		$	239			$	420			$	285			$	(211	)		$	733
Basic net earnings per share:
Continuing operations		$	(2.36	)		$	0.98			$	1.23			$	1.17			$	(1.00	)		$	2.38
Discontinued operations			—				—				0.49				(0.01	)			0.14				0.62
Net earnings per share		$	(2.36	)		$	0.98			$	1.72			$	1.16			$	(0.86	)		$	3.00
Diluted net earnings per share:
Continuing operations		$	(2.36	)		$	0.98			$	1.22			$	1.17			$	(1.00	)		$	2.36
Discontinued operations			—				—				0.49				(0.01	)			0.14				0.62
Net earnings per share		$	(2.36	)		$	0.98			$	1.71			$	1.16			$	(0.86	)		$	2.98
Dividends paid per share		$	0.50			$	0.40			$	0.50			$	0.50			$	0.50			$	1.90
Weighted average shares outstanding (in thousands)
Basic			245,794				242,863				244,702				245,009				245,215				244,447
Diluted			245,794				244,185				245,881				246,190				246,198				245,559

PRELIMINARY RESULTS — SUBJECT TO AUDIT

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)

FOOTNOTES TO CONSOLIDATED EARNINGS
           (in millions)

				Q1 2006				Q1 2005				Q2 2005				Q3 2005				Q4 2005				YE 2005
(1)		Countervailing and anti-dumping duties and related costs per quarter were charges of:		$	11			$	22			$	27			$	19			$	16			$	84
(2)		The first quarter of 2006 includes the estimated amount of a write-off of goodwill associated with the fine paper business.

				Q1 2006				Q1 2005				Q2 2005				Q3 2005				Q4 2005				YE 2005
(3)		Net foreign exchange gains (losses), primarily from fluctuations in Canadian and New Zealand exchange rates:		$	(26	)		$	13			$	(13	)		$	37			$	(21	)		$	16
(4)		The first quarter of 2005 includes a $12 million charge for the settlement of a linerboard antitrust lawsuit. The second quarter of 2005 includes an $18 million charge related to alder litigation and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The third quarter of 2005 includes a $115 million gain on the sale of an investment in a joint venture. The fourth quarter of 2005 includes a $38 million charge for the settlement of linerboard antitrust litigation and $43 million of income for the cumulative effect of a change to begin capitalizing Weyerhaeuser interest to assets of Weyerhaeuser Real Estate Company.
(5)		The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery.
(6)		The third and fourth quarters of 2005 include charges of $21 million and $15 million, respectively, for the early extinguishment of debt.
(7)		The fourth quarter of 2005 includes a $15 million charge related to the impairment of an investment in an equity affiliate.
(8)		The first quarter of 2006 includes recognition of $10 million of deferred income in connection with partnership restructurings.
(9)		The second quarter of 2005 includes a charge of $44 million related to the repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004. The third quarter of 2005 includes a one-time tax benefit of $14 million related to a change in the Ohio state income tax law.
(10)		Includes the net operating results of the company’s coastal British Columbia and French composites operations. The second quarter of 2005 includes a gain of $110 million, including a tax benefit of $46 million, related to the sale of the coastal British Columbia operations. The third quarter of 2005 includes a $1 million charge related to the termination of pension plans associated with these operations. The fourth quarter of 2005 includes a pretax gain of $57 million and related tax expense of $23 million associated with the sale of the French composites operations.

PRELIMINARY RESULTS — SUBJECT TO AUDIT

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)

Net sales and revenues (in millions):		Q1								Q2				Q3				Q4				Year End
		March 26,				March 27,				June 26,				Sept. 25,				Dec. 25,				Dec. 25,
		2006				2005				2005				2005				2005				2005
Timberlands:
Logs		$	201			$	182			$	195			$	188			$	196			$	761
Other products			62				82				63				65				76				286
			263				264				258				253				272				1,047
Wood Products:
Softwood lumber			782				892				1,032				889				811				3,624
Plywood			135				183				196				184				172				735
Veneer			13				13				10				9				12				44
Composite panels			121				120				132				122				123				497
OSB			287				288				306				267				303				1,164
Hardwood lumber			99				94				102				95				99				390
Engineered I-Joists			183				160				213				202				181				756
Engineered Solid Section			221				190				241				244				221				896
Logs			7				27				24				6				5				62
Other products			225				272				339				326				290				1,227
			2,073				2,239				2,595				2,344				2,217				9,395
Cellulose Fiber and White Papers:
Pulp			394				376				355				381				370				1,482
Paper			613				599				611				604				603				2,417
Coated groundwood			40				42				47				45				46				180
Liquid packaging board			46				47				52				50				54				203
Other products			14				14				12				16				12				54
			1,107				1,078				1,077				1,096				1,085				4,336
Containerboard, Packaging and Recycling:
Containerboard			82				117				101				86				91				395
Packaging			911				898				969				929				914				3,710
Recycling			80				92				92				87				81				352
Bags			20				22				21				20				20				83
Other products			34				34				40				47				46				167
			1,127				1,163				1,223				1,169				1,152				4,707
Real Estate and Related Assets			690				655				648				596				1,016				2,915
Corporate and Other			116				149				151				146				154				600
Less sales of discontinued operations			—				(177	)			(144	)			(22	)			(28	)			(371	)
		$	5,376			$	5,371			$	5,808			$	5,582			$	5,868			$	22,629

Contribution (charge) to earnings: (in millions)		Q1								Q2				Q3				Q4				Year End
		March 26,				March 27,				June 26,				Sept. 25,				Dec. 25,				Dec. 25,
		2006				2005				2005				2005				2005				2005
Timberlands (1)(2)(4)		$	198			$	200			$	210			$	191			$	183			$	784
Wood Products (1)(2)(5)			117				131				204				124				26				485
Cellulose Fiber and White Papers (1)(2)(6)			(763	)			19				16				(2	)			(477	)			(444	)
Containerboard, Packaging and Recycling (1)(2)(7)			22				48				99				36				(188	)			(5	)
Real Estate and Related Assets (8)			172				183				156				145				250				734
Corporate and Other (1)(2)(3)(9)			(102	)			(17	)			99				101				33				216
		$	(356	)		$	564			$	784			$	595			$	(173	)		$	1,770

PRELIMINARY RESULTS — SUBJECT TO AUDIT

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)

FOOTNOTES TO CONTRIBUTION (CHARGE) TO EARNINGS
          (in millions)

(1)		Closure charges by segment:		Q1 2006				Q1 2005				Q2 2005					Q3 2005			Q4 2005				YE 2005
		Timberlands		$	—			$	3			$	—			$	—			$	3			$	6
		Wood Products			—				1				1				6				91				99
		Cellulose Fiber and White Papers			(1	)			—				—				22				427				449
		Containerboard, Packaging and Recycling			2				4				2				1				130				137
		Corporate and Other			—				—				—				—				5				5
				$	1			$	8			$	3			$	29			$	656			$	696
		The above closure charges for the first quarter and full year 2005 include $3 million of costs incurred within the company’s discontinued operations.

(2)		Stock-based compensation charges
		(income) recognized by segment:		Q1 2006				Q1 2005				Q2 2005				Q3 2005				Q4 2005				YE 2005
		Timberlands		$	1			$	—			$	—			$	—			$	—			$	—
		Wood Products			2				—				—				—				—				—
		Cellulose Fiber and White Papers			1				—				—				—				—				—
		Containerboard, Packaging and Recycling			2				—				—				—				—				—
		Corporate and Other			15				2				(6	)			3				12				11
				$	21			$	2			$	(6	)		$	3			$	12			$	11

				Q1 2006				Q1 2005				Q2 2005				Q3 2005				Q4 2005				YE 2005
(3)		Net foreign exchange gains (losses) included in Corporate and Other were:		$	(26	)		$	13			$	(12	)		$	38			$	(20	)		$	19
(4)		Additonal Timberlands notes:
		(a) Hurricane related losses were $5 million in third quarter 2005 and $6 million in fourth quarter 2005.
(5)		Additonal Wood Products notes:
		(a) Refer to footnote 1 to Consolidated Earnings regarding countervailing duty and anti-dumping costs included in Wood Products.
		(b) The second quarter of 2005 includes an $18 million charge related to alder litigation. The third quarter of 2005 includes $9 million of income related to the reduction of reserves for alder litigation and an insurance settlement related to product liability claims.
		(c) The second quarter of 2005 includes a $6 million gain related to a tenure reallocation agreement with the British Columbia government.
(6)		Additional Cellulose Fiber and White Papers notes:
		(a) The first quarter of 2006 includes a charge of $746 million for the estimated amount of a write-off of goodwill associated with the fine paper business.
(7)		Additional Containerboard, Packaging and Recycling notes:
		(a) The first and fourth quarters of 2005 include charges of $12 million and $38 million, respectively, associated with the settlement of linerboard antitrust lawsuits.
		(b) The third quarter of 2005 had a charge of $1 million related to hurricane damage.
(8)		Additional Real Estate and Related Assets notes:
		(a) The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery and income of $10 million related to recognition of deferred income in connection with partnership restructurings.
		(b) The first quarter of 2006 includes net gains on land and lot sales of $33 million. The first, second, third and fourth quarters of 2005 include net gains (losses) on land and lot sales of $57 million, $21 million, ($1) and $2 million, respectively. The fourth quarter of 2005 also includes a $33 million charge for the impairment of unimproved land.
(9)		Additional Corporate and Other notes:
		(a) The second quarter of 2005 includes a $64 million pretax gain on the sale of the company’s operations in coastal British Columbia and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The third quarter of 2005 includes a $115 million gain on the sale of an investment in a joint venture. The fourth quarter of 2005 includes a $57 million gain on the sale of the company’s French composites operations and $43 million of income for the cumulative effect of a change to begin capitalizing Weyerhaeuser interest to assets of Weyerhaeuser Real Estate Company.
		(b) The fourth quarter of 2005 includes charges of $15 million related to the impairment of an investment in an equity affiliate.

PRELIMINARY RESULTS — SUBJECT TO AUDIT

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)

Third party sales volumes:		Q1								Q2				Q3				Q4				Year End
		March 26,				March 27,				June 26,				Sept. 25,				Dec. 25,				Dec. 25,
		2006				2005				2005				2005				2005				2005
Timberlands (thousands):
Logs — cunits			935				864				863				886				939				3,552
Wood Products (millions):
Softwood lumber — board feet			1,921				2,057				2,355				2,179				2,059				8,650
Plywood — square feet (3/8”)			389				537				600				558				485				2,180
Veneer — square feet (3/8”)			61				60				59				51				61				231
Composite panels — square feet (3/4”)			302				299				317				308				305				1,229
Oriented strand board — square feet (3/8”)			1,000				908				1,041				1,008				991				3,948
Hardwood lumber — board feet			103				102				114				105				106				427
Engineered I-Joists — lineal feet			114				108				138				125				113				484
Engineered Solid Section — cubic feet			9				9				10				10				9				38
Logs — cunits (in thousands)			55				187				177				41				46				451
Cellulose Fiber and White Papers (thousands):
Pulp — air-dry metric tons			651				629				587				653				633				2,502
Paper — tons (1)			753				736				742				757				761				2,996
Coated groundwood — tons			52				58				62				56				56				232
Liquid packaging board — tons			56				60				65				64				69				258
Paper converting — tons			511				475				494				494				501				1,964
Containerboard, Packaging and Recycling (thousands):
Containerboard — tons			211				295				259				238				254				1,046
Packaging — MSF			18,342				17,354				18,600				18,560				19,117				73,631
Recycling — tons			733				692				695				665				676				2,728
Kraft bags and sacks — tons			20				23				22				22				22				89
Real Estate and Related Assets:
Single-family homes sold			1,472				1,378				1,525				1,608				1,174				5,685
Single-family homes closed			1,161				1,189				1,279				1,257				1,922				5,647
Single-family homes sold but not closed at end of period			3,104				2,561				2,807				3,158				2,410				2,410

Total production volumes:		Q1								Q2				Q3				Q4				Year End
		March 26,				March 27,				June 26,				Sept. 25,				Dec. 25,				Dec. 25,
		2006				2005				2005				2005				2005				2005
Timberlands (thousands):
Fee Depletion — cunits			2,132				2,248				2,231				2,098				2,153				8,730
Wood Products (millions):
Softwood lumber — board feet			1,663				1,821				1,869				1,651				1,645				6,986
Plywood — square feet (3/8”)			241				303				302				296				254				1,155
Veneer — square feet (3/8”) (1)			455				517				529				486				447				1,979
Composite panels — square feet (3/4”)			278				267				282				268				263				1,080
Oriented strand board — square feet (3/8”)			1,073				1,007				1,019				1,017				1,035				4,078
Hardwood lumber — board feet			82				92				96				91				85				364
Engineered I-Joists — lineal feet			121				133				132				108				110				483
Engineered Solid Section — cubic feet			11				11				10				10				10				41
Cellulose Fiber and White Papers (thousands):
Pulp — air-dry metric tons			676				621				614				663				604				2,502
Paper — tons (2)			724				763				752				765				780				3,060
Coated groundwood — tons			56				55				59				60				60				234
Liquid packaging board — tons			61				60				64				69				71				264
Paper converting — tons			498				475				487				483				505				1,950
Containerboard, Packaging and Recycling (thousands):
Containerboard — tons (3)			1,575				1,503				1,581				1,597				1,587				6,268
Packaging — MSF			19,550				18,628				19,915				19,416				20,130				78,089
Recycling — tons (4)			1,716				1,624				1,673				1,716				1,730				6,743
Kraft bags and sacks — tons			19				23				22				21				22				88

(1)		Veneer production represents lathe production and includes volumes that are further processed into plywood and engineered lumber products by company mills.
(2)		Paper production includes unprocessed rolls and converted paper volumes.
(3)		Containerboard production represents machine production and includes volumes that are further processed into packaging and kraft bags and sacks by company facilities.
(4)		Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.

PRELIMINARY RESULTS — SUBJECT TO AUDIT

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION

CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
                                                                      (in millions)