Feb 09, 2007. /Lesprom Network/. Weyerhaeuser Company reported on February 9 net earnings of $395 million for 2006, or $1.61 per diluted share, on net sales of $21.9 billion. This compares with net earnings of $733 million, or $2.98 per diluted share, on net sales of $22 billion for 2005. For the fourth quarter 2006, Weyerhaeuser reported net earnings of $450 million, or $1.88 per diluted share, on net sales of $5.7 billion. Last year, Weyerhaeuser reported a fourth quarter net loss of $211 million, or $0.86 cents per diluted share, on net sales of $5.7 billion. During fourth quarter 2006, Weyerhaeuser repurchased 5.5 million shares of common stock. As of the end of the fourth quarter, Weyerhaeuser has repurchased 11 million shares of the 18 million-share repurchase previously authorized by the company's board of directors. "This past year was a time of ongoing dynamic change as we took steps to further improve shareholder value," said Steven R. Rogel, chairman, president and chief executive officer. "These efforts included our work to significantly restructure containerboard packaging and wood products, two of our major segments. To focus our portfolio, we entered into an agreement to combine our fine paper business and related assets with Domtar and began the complex process of implementing this landmark transaction. As part of our growth strategy, we expanded our real estate business and increased our timberlands position in South America. We continue to improve our efficiency by implementing significant changes in how we manage our supply chains and continuing to migrate to a single information technology platform. While we haven't finished our work on many of these efforts, and we may not see their full benefit for several quarters, our continued focus on these initiatives will benefit our shareholders despite challenging market conditions." Fourth quarter earnings decreased from the third quarter mainly due to lower domestic log prices, primarily in the West. Higher fee harvest volumes in the South partially offset the decline in log prices. Costs were slightly higher in the fourth quarter due to weather and curtailment of operations in the West to balance harvest with customer demand. Weyerhaeuser expects the first quarter earnings to be slightly lower for the segment compared to the fourth quarter due to lower demand for lumber resulting in lower domestic log prices, and lower fee harvest volumes in the South. Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2006, sales were $21.9 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.