Federal Way, Washington, USA, 19 December 2008 — The board of directors of Weyerhaeuser Company (NYSE: WY) declared a dividend of 25 cents per share on the common stock of the corporation payable 02 March 2009, to shareholders of record at the close of business 30 January 2009. This reduces the quarterly dividend payment from the previous level of 60 cents.
The company said that the continued housing slump and a weaker pulp market will result in significantly lower than expected fourth quarter earnings. Weyerhaeuser expects challenging market conditions to continue through 2009.
The company also announced the following strategic actions:
- Board authorization to repurchase up to USD 250 million of the company’s outstanding shares.
- Board approval of a capital spending level for 2009 in the range of USD 200-250 million, down from approximately USD 425 million in 2008.
- A wage freeze at 2008 levels for executive and salaried employees.
- Board approval of an amendment to the company’s bylaws to adopt a 31 December fiscal year end.
“We are committed to making tough decisions as we manage through this downturn,” said Dan Fulton, president and chief executive officer. “Through these actions, we are taking steps to preserve our financial strength, enhance our strategic flexibility, and position Weyerhaeuser to create shareholder value as the economy recovers.”
Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2007, sales were USD 16.3 billion. It has offices or operations in 13 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.