SEATTLE, July 18, 2017 /PRNewswire/ -- Weyerhaeuser
Company (NYSE: WY) today announced it is implementing a solution to
address concerns regarding its TJI® Joists with Flak Jacket®
Protection product.
The company has determined that recent customer feedback
regarding an odor in certain newly constructed homes is related to
a recent formula change to the Flak Jacket coating that included
formaldehyde-based resin. This issue is isolated to Flak Jacket
product manufactured after Dec. 1,
2016, and does not affect any of the company's other
products.
Flak Jacket Protection is a coating applied to I-joists to
enhance fire resistance, and it is not widely in use. The product
is present in the basements of approximately 2,200 houses in
various stages of construction in limited markets. Most of the
houses are not yet occupied.
Weyerhaeuser is working proactively with its customers to
address this situation and will cover the cost to either remediate
or replace affected joists. The company has halted all production,
sales and shipments of the product, and is collecting unused
product from customers.
"We deeply regret the disruption and inconvenience this
situation has caused," said Doyle R.
Simons, president and CEO. "Our top priority is to take care
of our customers and their customers. We are absolutely committed
to doing the right thing and resolving this situation as quickly as
possible."
The company expects the before-tax costs associated with
resolving this issue to be approximately $50-60 million and a reserve will be recorded in
the second quarter of 2017.
Weyerhaeuser notes that the company has sold a total of
approximately $9.0 million of the
Flak Jacket product since December
2016, representing less than one half of one percent of the
company's total Wood Products sales. For the full year 2016,
Weyerhaeuser reported net sales of $6.4 billion.
About Weyerhaeuser
Weyerhaeuser Company, one of the
world's largest private owners of timberlands, began operations in
1900. We own or control more than 13 million acres of timberlands,
primarily in the U.S., and manage additional timberlands under
long-term licenses in Canada. We
manage these timberlands on a sustainable basis in compliance with
internationally recognized forestry standards. We are also one of
the largest manufacturers of wood products. Our company is a real
estate investment trust. In February
2016, we merged with Plum Creek Timber Company, Inc. In
2016, we generated $6.4 billion in
net sales and employed approximately 10,400 people who serve
customers worldwide. We are listed on the Dow Jones World
Sustainability Index. Our common stock trades on the New York Stock
Exchange under the symbol WY. Learn more at
www.weyerhaeuser.com.
FORWARD LOOKING STATEMENTS
This news release contains
statements relating to one of the company's manufactured wood
products that are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, including with respect to the company's
estimates of remediation costs and related charge against earnings
the company expects to record for the second quarter 2017 and the
scope of the products distribution and use in homes. These
statements generally are identified by words such as "expects,"
"approximately," and "will," and similar words and expressions.
These statements are based on our current expectations and
assumptions and are not guarantees of future results or
developments. The accuracy of our expectations and assumptions is
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties
include without limitation the extent and scope of use and
distribution of the affected wood product, and the actual costs of
remediation. Forward-looking statements speak only as of the
date they are made, and we undertake no obligation to publicly
update or revise any forward-looking statements, whether because of
new information, future events, or otherwise.
For more information contact:
Analysts — Krista
Kochivar, 206-539-4080
Media — Andrew Siegel,
212-355-4449
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SOURCE Weyerhaeuser Company