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 weyerhaeuser 1998 Annual Report
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 Pulp • paper and packaging
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Improved operating efficiencies and a disciplined approach to capital spending helped our Pulp, Paper and Packaging sector withstand difficult market conditions. During the year, Asian demand for pulp, paper and containerboard declined while imports of fine papers into the United States increased significantly.
 

This led to high inventories and weak industry prices across most product lines. The effect of these forces was evident in our 1998 results: Operating earnings were $192 million, unchanged from 1997 levels. 1998 operating earnings exclude nonrecurring charges associated with the closure of a chlor-alkali facility and the streamlining of pulp and paper operations.
   
 

Operating earnings for 1997 exclude a gain for the sale of a chemical facility and changes associated with the consolidation, closure or disposition of some recycling facilities. Net sales were $4.3 billion in 1998 compared with $4.6 billion the prior year. Although these results are better than many in our industry, we are improving our performance to deliver superior shareholder returns. We have identified five specific ways to grow revenues and improve margins from our Pulp, Paper and Packaging sector. >