Weyerhaeuser Company (WY)

In 2006, the company sold its fine paper business to Domtar, a Canadian pulp and paper company. The transaction gave Weyerhaeuser $1.35 billion in cash, which it used to pay off debt, in addition to stock in the new merged company. Although this reduces the company's business diversity, many industry analysts praise the Domtar transaction as a well-executed move to streamline business and raise cash.

In 2006, the company sold its fine paper business to Domtar, a Canadian pulp and paper company. The transaction gave Weyerhaeuser $1.35 billion in cash, which it used to pay off debt, in addition to stock in the new merged company. Although this reduces the company's business diversity, many industry analysts praise the Domtar transaction as a well-executed move to streamline business and raise cash.

Wood waste materials, such as sawdust and woodchips, may be used as inputs for cellulostic ethanol production. The development of this new technology would increase revenue opportunities.

Weyerhaeuser has nearly halved its debt from $12.7 billion to $6.6 billion since 2002. Ongoing debt reduction efforts is an indication of the company's strong financial health and improves its ability to endure dips in the business cycle.