Consumables

WEYERHAEUSER PROVIDES DIVIDEND GUIDANCE FOR 2011

Tuesday 14. December 2010 - Weyerhaeuser Company (NYSE: WY) today announced the dividend guidance its board of directors is providing for 2011.

Weyerhaeuser anticipates paying a quarterly dividend of 15 cents per share, or 60 cents per share on an annualized basis, with the first dividend payment expected to occur in March 2011. The board will determine and declare the actual dividend on a quarterly basis.
“This action establishes a dividend that is attractive to shareholders – one that is sustainable and that we expect to grow over time,” said Dan Fulton, president and chief executive officer.
“We do not anticipate significant improvement in the housing market in 2011,” Fulton said. “While there is significant near term uncertainty, the longer-term outlook remains positive as we expect improved macroeconomic conditions and housing starts to return to trend levels.”
The company is targeting a dividend payout ratio of 75 percent of Funds Available for Distribution (FAD) over the cycle. However, given the near-term outlook, the company’s 2011 dividend payout may be significantly all of its FAD for the year.
As previously announced, Weyerhaeuser intends to make the REIT election when it files its 2010 tax return, making the effective date Jan. 1, 2010.
The company also announced it expects to incur impairment charges of $95 million as a result of the ongoing review of its Wood Products system capacity, and $15 million on certain real estate assets. Weyerhaeuser will file a current report on Form 8K with the Securities and Exchange Commission today with additional details regarding the impairments.