We’ve given these employees some of the best assets with which to work. Our timber is unmatched. We have some great facilities in place and we’re getting better. Our research capabilities are world-renowned. We have one of the strongest balance sheets in the industry. In short, we have the tools to become the best forest products company in the world. By being the best, we can deliver superior returns.

Some say such optimism is misplaced. They wonder how a company in our industry can produce superior returns. I don’t deny that we face challenges. Our industry has struggled recently. In 1998, the Asian economic situation affected our entire industry. Imported pulp and paper products found customers in our markets. Forest product exports originally bound for Asia glutted domestic markets. Prices sank. Weyerhaeuser adjusted to these conditions. We took downtime to balance inventory levels with market conditions. We found ways to reduce costs. We maintained our focus on customers. As a result, we fared better in 1998 than many predicted. But we weren’t untouched by market conditions. >