Weyerhaeuser Q4 2008 Earnings Call Transcript

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2009-02-06 11:21:11.0

Tags: Pulp, Weyerhaeuser Co., Call Transcript, Earnings, UBS AG, Taxes, Free Trade, Sales Strategy, Personal Finance, Financial Planning, Finance, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. Ladies and gentlemen, we'll now begin the question and answer session. (Operator Instructions). And we have a question from the line of Gail Glazerman with UBS. Please go ahead.

Gail Glazerman - UBS Securities

Hi, good morning.

Daniel Fulton

Good morning Gail.

Gail Glazerman - UBS Securities

I guess just starting on the timber segment, if a third of 2008 volumes were salvage and I am assuming you are running through that activity. How should we think about harvest volumes and mix in 2009?

Thomas Gideon

Gail this is Tom. And looking to 2009 in the west you'll see a lower harvest level and it will be more aligned towards Douglas-fir as apposed to Hemlock.

Gail Glazerman - UBS Securities

Okay. And can you give any sort of visibility into, I guess, part of the change in the fourth quarter was one off land sales just a magnitude of land sales between the third and fourth quarter and all of 2008?

Thomas Gideon

Well as we indicated, we did not have any land and adjustment program sales in 2008 at 8.4 (ph) during the fourth quarter. We are in the market on an ongoing basis, and so the difference was that as we looked at the opportunities that -- there wasn't a match in timing between the assets that we were looking to the purchase and opportunities that we felt comfortable with exchanging for. So we had nothing in the fourth quarter.

Gail Glazerman - UBS Securities

Okay but you did in third, correct?

Thomas Gideon

Yes.

Gail Glazerman - UBS Securities

Okay. And just looking on the Cellulose business, the weakness that you referred to in emerging market was that more a commodity pulp or was that across the board including fluff?

Thomas Gideon

It was primarily in the paper grade segment which obviously over time has an impact and flows over to some degree on the fluff producers as well. As we are predominantly into market pulp -- excuse me, the reserve in pulp and specialty fiber markets but we weren't new into the slowdown in the Asian markets.

Gail Glazerman - UBS Securities

Okay and then Patty just a quick question. Can you remind us what the cash tax payments on the IP sale was in the quarter?

Patricia Bedient

Well we pay taxes on our total in all-in taxes Gail. So the total cash taxes that we paid out in the quarter were just over $1 billion.

 

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