On
February 16, 2007, Weyerhaeuser Company issued the following press
release:
For
Immediate Release
For
More
Information, Contact:
Media:
Frank
Mendizabal, (253) 924-3357
Analysts:
Kathryn
McAuley, (253) 924-2058
Weyerhaeuser
Reports Fourth Quarter 2006 Fine Paper Business Earnings
FEDERAL
WAY, Wash. (Feb.
16,
2007) - Weyerhaeuser Company (NYSE: WY) today reported the fourth quarter
2006
results of the Weyerhaeuser Fine Paper Business (a business unit of Weyerhaeuser
Company) which includes assets that are expected to be combined with Domtar,
Inc. (TSE/NYSE: DTC) in a transaction previously announced by Weyerhaeuser
Company and Domtar Inc. The Weyerhaeuser Fine Paper Business had fourth quarter
net earnings of $105 million, or $0.37 per share, on net sales of $872 million.
Operating income was $149 million. Included in earnings in the fourth quarter
was a gain of $65 million pre tax for the refund of countervailing and
anti-dumping duties on Canadian softwood lumber sold in the United
States.
For
the
year ended December 31, 2006, the Weyerhaeuser Fine Paper Business had a
net
loss of $613 million, or $2.18 per share, on net sales of $3.3 billion.
Operating loss was $562 million.
These
results have been derived from the historical accounting records of Weyerhaeuser
Company and have not yet been audited. The historical operating results of
the
Weyerhaeuser Fine Paper Business may not be indicative of what they would
have
been had the Weyerhaeuser Fine Paper Business been a stand-alone entity,
nor are
they necessarily indicative of what the Weyerhaeuser Fine Paper Business
operating results may be in the future.
The
Weyerhaeuser Fine Paper Business has no common stock authorized or outstanding.
As a result, earnings per share is based on the estimated number of shares
of
Domtar Corporation common stock that Weyerhaeuser Company would have received
as
consideration had the transaction closed on December 31, 2006.
As
previously announced on Aug. 23, Weyerhaeuser Company and Domtar Inc. entered
into a definitive agreement to combine Weyerhaeuser Company’s fine paper
business and related assets with Domtar Inc. to form Domtar Corporation,
which
will become North America’s largest producer of fine paper.
On
Feb.
2, Weyerhaeuser Company announced an offer to its shareholders for the exchange
of some or all of their common shares of Weyerhaeuser Company and exchangeable
shares of Weyerhaeuser Company Limited (TSE: WYL) for shares of Domtar
Corporation common stock.
The
exchange is expected to be tax-free to participating Weyerhaeuser Company
shareholders for U.S. federal income tax purposes. The offer will expire
at
12:00 midnight, New York City time, on March 2, unless extended or
terminated.
The
Prospectus-Offer to Exchange included in the Registration Statement on Forms
S-4
and S-1 filed by Domtar Corporation with the Securities and Exchange Commission
more fully describes the terms and conditions of the exchange
offer.
ADDITIONAL
INFORMATION
This
announcement is for informational purposes only and is neither an offer to
sell
nor an offer to buy any securities or a recommendation as to whether you
should
participate in the exchange offer announced previously. The offer is made
solely
by the Prospectus-Offer to Exchange and related letters of
transmittal.
Investors
and shareholders are urged to read the Prospectus-Offer to Exchange, and
any
other relevant documents filed with the Securities and Exchange Commission,
when
they become available and before making any investment decisions. None of
Weyerhaeuser Company, Weyerhaeuser Company Limited, Domtar Inc., Domtar
Corporation or any of their respective directors or officers makes any
recommendation as to whether you should participate in the exchange offer.
You
can obtain a free copy of the Prospectus-Offer to Exchange and other related
documents filed by Weyerhaeuser Company or Domtar Corporation with the
Securities and Exchange Commission at www.sec.gov.
ABOUT
WEYERHAEUSER COMPANY
Weyerhaeuser
Company, one of the world’s largest integrated forest products companies,
was
incorporated in 1900. In 2006, sales were $21.9 billion. It has offices or
operations in 18 countries, with customers worldwide. Weyerhaeuser Company
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
Company’s businesses, products and practices is available at http://www.weyerhaeuser.com.
ABOUT
THE WEYERHAEUSER FINE PAPER BUSINESS
The
Weyerhaeuser Fine Paper Business is the second largest integrated manufacturer
of uncoated free sheet in North America and the third largest in the world
based
on production capacity. In 2006, sales were $3.3 billion. The Weyerhaeuser
Fine
Paper Business has six uncoated free sheet mills in the United States and
two in
Canada (one of which is currently not in operation), one coated groundwood
mill
in the United States, a pulp mill in Canada and owns or has an equity interest
in three sawmills in Canada.