Weyerhaeuser

Weyerhaeuser Company (/ˈwɛərhaʊzər/) is an American timberland company which owns nearly 12,400,000 acres (19,400 sq mi; 50,000 km2) of timberlands in the U.S. and manages an additional 14,000,000 acres (22,000 sq mi; 57,000 km2) timberlands under long-term licenses in Canada.[3] The company also manufactures wood products.[4] Weyerhaeuser is a real estate investment trust.[3]

"Weyco" redirects here. For the footwear company, see Weyco Group.
For other uses, see Weyerhaeuser (disambiguation).
Weyerhaeuser Company
TypePublic
NYSE: WY
S&P 500 Component
IndustryReal estate investment trust
Founded1900 (1900), Tacoma, Washington, United States [1]
FounderFriedrich Weyerhäuser
HeadquartersSeattle, Washington, USA
Key people
Devin Stockfish (CEO) [2]
ProductsForest products
Revenue US$7.20 billion (2017)[3]
US$1.13 billion (2017)[3]
US$582 million (2017)[3]
Total assets US$18.05 billion (2017)[3]
Total equity US$8.90 billion (2017)[3]
Number of employees
9,300 (2017)[3]
Websitewww.weyerhaeuser.com

History

In 1904, after years of successful Mississippi River-based lumber and mill operations with Frederick Denkmann and others, Frederick Weyerhäuser moved west to fresh timber areas and founded the Weyerhäuser Timber Company. Fifteen partners and 900,000 acres (1,400 sq mi; 3,600 km2) of Washington timberland were involved in the founding,[5] and the land was purchased from James J. Hill of the Great Northern Railway.[6] In 1929, the company built what was then the world's largest sawmill in Longview, Washington. Weyerhäuser's pulp mill in Longview, which began production in 1931, sustained the company financially during the Great Depression. In 1959, the company eliminated the word "Timber" from its name to better reflect its operations. In 1965, Weyerhäuser built its first bleached kraft pulp mill in Canada. Weyerhäuser implemented its High Yield Forestry Plan in 1967 which drew upon 30 years of forestry research and field experience. It called for the planting of seedlings within one year of a harvest, soil fertilization, thinning, rehabilitation of brushlands, and, eventually, genetic improvement of trees. In 1975 the company bought the 3,200 acres of land of the Northwest Landing and developed the town of DuPont using a New Urbanism model.[7]

Weyerhäuser consolidated its core businesses in the late 1990s and ended its services in mortgage banking, personal care products, financial services, and information systems consulting. Weyerhäuser also expanded into South America, Australia, and Asia. In 1999, Weyerhäuser purchased MacMillan Bloedel Limited, a large Canadian forestry company. Then in 2002 after a protracted hostile buyout, the company acquired Willamette Industries, Inc. of Portland, Oregon.[8] On August 23, 2006, Weyerhäuser announced a deal which spun off its fine paper business to be combined with Domtar, a $3.3 billion cash and stock deal leaving Weyerhauser stock holders with 55 percent ownership of the new Domtar company.

In March 2008, Weyerhäuser Company announced the sale of its containerboard packaging and recycling business to International Paper for $6 billion in cash, subject to post closing adjustments. The transaction included nine containerboard mills, 72 packaging locations, 10 specialty packaging plants, four kraft bag and sack locations and 19 recycling facilities. The transaction affected approximately 14,300 employees.[9] The deal closed on August 4, 2008.[10]

Weyerhäuser converted into a real estate investment trust to avoid all federal income taxes when it filed its 2010 tax return.[11]

In 2013, Weyerhäuser purchased Longview Timber for $2.65 billion including debt from Brookfield Asset Management. The acquisition added 645,000 acres (1,008 sq mi; 2,610 km2) of timberland to Weyerhaeuser's holdings in Oregon and Washington.[12]

In 2014, Weyerhäeuser spun off its home building unit to TRI Pointe Homes in a $2.8 billion transaction.[13] The company also announced its intention to sell its Federal Way headquarters and relocate to Seattle's Pioneer Square in 2016.[14] The sale and move were completed in 2016.[15]

On November 8, 2015, it was announced that Weyerhäuser would buy Plum Creek Timber for $8.4 billion, forming the largest private owner of timberland in the United States.[16] The transaction closed on February 19, 2016.[17] At the time of the merger the combined companies own about 13,000,000 acres (20,000 sq mi; 53,000 km2) of timberlands.

In 2018, it won its case in the U.S. Supreme Court regarding whether private land can be classified as critical habitat if the land is not currently suitable as habitat for the protected species.[18]

Operations

The company's operations are divided into three major business segments:

  • Timberlands—growing and harvesting trees in renewable cycles.
  • Wood products—manufacturing and distribution of building materials for homes and other structures.
  • Real estate, energy and natural resources[19]—all surface and subsurface resources in timberlands that are worth more than the timber itself.

Corporate governance

Devin Stockfish is the CEO and president of Weyerhaeuser Company. The Weyerhaeuser board of directors consists of: Mark Emmert, Sara Grootwassink Lewis, Rick Holley, Deidra "Dee" Merriwether, Al Monaco, Nicole Piasecki, Marc Racicot, Lawrence Selzer, D. Michael Steuert, Devin Stockfish, Kim Williams and Charles Williamson.[20]

References
  1. "Weyerhaeuser Company History".
  2. "WEYERHAEUSER TO IMPLEMENT LEADERSHIP SUCCESSION PLAN". Weyerhaeuser. 2018-08-27. Retrieved 2019-07-17.
  3. "Weyerhaeuser Timber Company, Form 10-K, Annual Report, Filing Date Feb 16, 2018". secdatabase.com. Retrieved May 13, 2018.
  4. 40. "Weyerhaeuser Co (NYSE:WY) Stock Price While Sentiment Crashed to 0.86 – Enbulletin". Retrieved 2018-12-21.CS1 maint: numeric names: authors list (link)
  5. "Weyerhaeuser in Brief" (PDF). Weyerhaeuser. Archived from the original (PDF) on November 9, 2006. Retrieved 2006-11-24.
  6. "Weyerhaeuser makes one of the largest land purchases in United States history on January 3, 1900". HistoryLink.org. Retrieved 2007-08-23.
  7. Veninga, Catherine (2004), "Spatial Prescriptions and Social Realities: New Urbanism and the Production of Northwest Landing", Urban Geography, 25 (4): 458–482, doi:10.2747/0272-3638.25.5.458
  8. "Weyerhaeuser Welcomes Oregon Willamette Employees as Companies Combine to grow Global Leader". PR Newswire.
  9. "Weyerhaeuser Timber Company, Form 8-K, Current Report, Filing Date Mar 20, 2008" (PDF). secdatabase.com. Retrieved May 13, 2018.
  10. "Weyerhaeuser Timber Company, Form 10-Q, Quarterly Report, Filing Date Aug 8, 2008". secdatabase.com. Retrieved May 13, 2018.
  11. Weyerhaeuser Declares Special Dividend, Marks Milestone in Planned REIT Conversion, http://investor.weyerhaeuser.com/2010-07-12-Weyerhaeuser-Declares-Special-Dividend-Marks-Milestone-in-Planned-REIT-Conversion
  12. "Weyerhaeuser pays $2.6B to snag Longview Timber". Seattle Times. 2013-06-16. Retrieved 2014-05-26.
  13. "With Merger Closed, TRI Pointe Homes to Focus on Expansion, New Services". The Wall Street Journal. 2014-07-07. Retrieved 2014-07-13.
  14. "Weyerhaeuser moving to Seattle's Pioneer Square". The Seattle Times. 2014-08-26. Retrieved 2014-08-27.
  15. "Weyerhaeuser sets down in urban Seattle after decades in Federal Way". The Seattle Times. 2016-10-10. Retrieved 2016-10-10.
  16. Bhatt, Sanjay (November 8, 2015). "Weyerhaeuser is buying Plum Creek for $8.4B to form timber giant". The Seattle Times. Retrieved November 9, 2015.
  17. http://investor.weyerhaeuser.com/2016-02-19-Weyerhaeuser-completes-merger-with-Plum-Creek
  18. "WEYERHAEUSER CO. v. UNITED STATES FISH AND WILDLIFE SERVICE ET AL" (PDF).
  19. 2016 Annual Report https://www.sec.gov/Archives/edgar/data/106535/000010653517000007/wy-123116x10k.htm. Missing or empty |title= (help)
  20. "Weyerhaeuser Board of Directors". Weyerhaeuser.com. Retrieved 2020-12-22.

Further reading
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