Net earnings before nonrecurring items were $339 million, or $1.71 per common share. This compares with $351 million, or $1.76 per common share, before nonrecurring items in 1997. Net sales were $10.8 billion compared with $11.2 billion last year. Net cash flow from operations, before working capital changes, was $1 billion compared with $1.1 billion in 1997.

It is easy to blame Asia for these disappointing results. It’s also easy to believe that our troubles will end when Asia’s economy improves. But such views ignore reality. While we will benefit from a stronger Asia, we recognize that we cannot rely on that recovery to solve our problems. Our industry has changed. We now operate in a global marketplace where the performance of domestic and international markets is intertwined.

Our task is to change Weyerhaeuser to succeed in this environment and capitalize on our potential. It requires that we leverage our strengths and eliminate our weaknesses to become the best forest products company in the world. Weyerhaeuser already was making significant progress toward this goal when I arrived last year. >