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FORWARD-LOOKING STATEMENTS
This report contains statements concerning our future results and performance that are forward-looking statements according to the Private Securities Litigation Reform Act of 1995. These statements: • use forward-looking terminology; • are based on various assumptions we make; and • may not be accurate because of risks and uncertainties surrounding the assumptions that we make. Factors listed in this section – as well as other factors not included – may cause our actual results to differ from our forward-looking statements. There is no guarantee that any of the events anticipated by our forward-looking statements will occur. If any of the events occurs, there is no guarantee what effect it will have on our operations or financial condition. We will not update our forward-looking statements after the date of this report. Forward-Looking Terminology Some forward-looking statements discuss our plans, strategies and intentions. They use words such as expects, may, will, believes, should, approximately, anticipates, estimates, and plans. In addition, these words may use the positive or negative or a variation of those terms. Statements We make forward-looking statements of our expectations regarding: • our markets in the first quarter of 2008; • earnings and performance of our business segments during the first quarter of 2008; • demand and pricing for our products during the first quarter of 2008; • lower timber fee harvest volumes and higher costs in the west as well as fewer sales of nonstrategic timberlands during the first quarter of 2008; • losses from operations in Wood Products as a result of continuing poor market conditions; • increases in manufacturing costs in Cellulose Fibers businesses due to scheduled annual maintenance outages; • decline of packaging shipments; • increases in prices for OCC and wood chips; • reduced land sales in the first quarter of 2008; • higher energy costs; • effect of capital expenditures on our operations; • results of execution of our business strategies; and • new home sales and closings. In addition, we also base our forward-looking statements on the expected effect of: • foreign exchange rates, primarily Canadian and the euro; • adverse litigation outcomes and the adequacy of reserves; • regulations; • changes in accounting principles; • contributions to pension plans; • projected benefit payments; • projected tax rates; • loss of tax credits; and • other related matters. Risks, Uncertainties and Assumptions The major risks and uncertainties – and assumptions that we make – that affect our business include, but are not limited to: • general economic conditions, including the level of interest rates, strength of the U.S. dollar and housing starts; • market demand for our products, which is related to the strength of the various U.S. business segments; • energy prices; • raw material prices; • chemical prices; • performance of our manufacturing operations including unexpected maintenance requirements; • successful execution of our internal performance plans and cost reduction initiatives; • level of competition from domestic and foreign producers; • forestry, land use, environmental and other governmental regulations; • weather; • loss from fires, floods, windstorms, pest infestations and other natural disasters; • transportation costs; • legal proceedings; • performance of pension fund investments and derivatives; • changes in accounting principles; • the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation; and • the other factors described under “Risk Factors.” Exporting Issues We are a large exporter, affected by changes in: • economic activity in Europe and Asia – especially Japan; • currency exchange rates – particularly the relative value of the U.S. dollar to the euro and the Canadian dollar; and • restrictions on international trade or tariffs imposed on imports. |