**UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION**
      Washington,
      D. C. 20549**FORM
      10-Q****QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF****THE
      SECURITIES EXCHANGE ACT OF 1934****For
      quarter ended January 31, 2005**Commission
      File No. 0-1370**Longview
      Fibre Company**
      *(Exact
      name of registrant as specified in its
charter)*








**Washington**
    **91-0298760***(State
      or other jurisdiction of*
    *(I.R.S.
      employer**Incorporation
      or organization)*
    *Identification
      No.)***300
      Fibre Way, Longview, Washington**
    **98632***(Address
      of principal executive offices)*
    *(Zip
      Code)***(360)
      425-1550***(Registrant's
      telephone number including area code)*Not
      Applicable*(Former
      name, former address and former fiscal year, if changed since last
      report)*








Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.


Yes X No
____





Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule
12b-2 of the Act).


Yes X No
___





51,076,567
Common Shares were outstanding as of February 28, 2005










Page
1




**PART
I - FINANCIAL INFORMATION**





**ITEM
1. FINANCIAL STATEMENTS**











**CONSOLIDATED
STATEMENT OF OPERATIONS (Unaudited)**





Three
      Months EndedJanuary
      31(thousands
      except per share)
    
    2005
    
    2004**Net
      sales**Timber
    
    $
    43,367
    
    $
    34,510Paper
      and paperboard
    
    
    71,304
    
    
    42,367Converted
      products
    
    
    109,409
    
    
    93,050224,080
    
    
    169,927Cost
      of products sold, including outward freight
    
    
    188,214
    
    
    155,853**Gross
      profit**
    
    
    35,866
    
    
    14,074Selling,
      administrative and general expenses
    
    
    21,747
    
    
    19,437**Operating
      profit (loss)**Timber
    
    
    19,455
    
    
    13,657Paper
      and paperboard
    
    
    (2,873
    )
    
    (8,677
    )Converted
      products
    
    
    (2,463
    )
    
    (10,343
    )14,119
    
    
    (5,363
    )Interest
      income
    
    
    44
    
    
    36Interest
      expense
    
    
    (9,329
    )
    
    (9,620
    )Miscellaneous
    
    
    423
    
    
    213**Income
      (loss) before taxes**
    
    
    5,257
    
    
    (14,734
    )**Provision
      (benefit) for taxes**Current
    
    
    142
    
    
    (148
    )Deferred
    
    
    1,803
    
    
    (5,303
    )1,945
    
    
    (5,451
    )**Net
      Income (loss)**
    
    $
    3,312
    
    $
    (9,283
    )**Earnings
      per share**Net
      income (loss)
    
    $
    0.06
    
    $
    (0.18
    )Average
      shares outstanding in the hands of the public
    
    
    51,077
    
    
    51,077





The
accompanying notes are an integral part of these financial
statements.










Page
2





**CONSOLIDATED
BALANCE SHEET**





Jan.
      31
    
    Oct.
      31
    
    Jan.
      312005
    
    2004
    
    2004(dollars
      in thousands except per share)
    
    (Unaudited)
    
    
    
    (Unaudited)**ASSETS**Current
      assets:Accounts
      and notes receivable
    
    $
    108,652
    
    $
    111,723
    
    $
    84,205Allowance
      for doubtful accounts
    
    
    1,350
    
    
    1,350
    
    
    1,350Inventories,
      at lower cost or market; costs are based on last-in,first-out
      method except for supplies at current averagesFinished
      goods
    
    
    18,186
    
    
    21,791
    
    
    15,820Goods
      in process
    
    
    11,886
    
    
    16,275
    
    
    9,160Raw
      materials and supplies
    
    
    46,920
    
    
    45,457
    
    
    39,215Other
    
    
    8,980
    
    
    7,800
    
    
    8,864Total
      current assets
    
    
    193,274
    
    
    201,696
    
    
    155,914Capital
      assets:Buildings,
      machinery and equipment at cost
    
    
    1,832,588
    
    
    1,828,195
    
    
    1,819,667Accumulated
      depreciation
    
    
    1,153,093
    
    
    1,139,390
    
    
    1,111,677Costs
      to be depreciated in future years
    
    
    679,495
    
    
    688,805
    
    
    707,990Plant
      sites at cost
    
    
    3,549
    
    
    3,549
    
    
    3,549683,044
    
    
    692,354
    
    
    711,539Timber
      at cost less depletion
    
    
    196,304
    
    
    196,440
    
    
    186,032Roads
      at cost less amortization
    
    
    8,557
    
    
    8,631
    
    
    8,378Timberlands
      at cost
    
    
    24,598
    
    
    24,598
    
    
    20,671229,459
    
    
    229,669
    
    
    215,081Total
      capital assets
    
    
    912,503
    
    
    922,023
    
    
    926,620Pension
      and other assets
    
    
    147,488
    
    
    147,211
    
    
    148,728$
    1,253,265
    
    $
    1,270,930
    
    $
    1,231,262





**LIABILITIES
AND SHAREHOLDERS' EQUITY**


Current
      liabilities:Payable
      to bank resulting from checks in transit
    
    $
    8,255
    
    $
    12,370
    
    $
    6,401Accounts
      payable
    
    
    56,067
    
    
    66,063
    
    
    44,574Short-term
      borrowings
    
    
    20,000
    
    
    10,000
    
    
    15,000Payrolls
      payable
    
    
    16,946
    
    
    15,897
    
    
    14,869Other
      taxes payable
    
    
    9,173
    
    
    9,100
    
    
    8,702Current
      installments of long-term debt
    
    
    -
    
    
    30,000
    
    
    30,000Total
      current liabilities
    
    
    110,441
    
    
    143,430
    
    
    119,546Long-term
      debt
    
    
    452,179
    
    
    442,148
    
    
    463,526Deferred
      taxes - net
    
    
    206,586
    
    
    204,783
    
    
    190,107Other
      liabilities
    
    
    38,115
    
    
    36,915
    
    
    35,059Shareholders'
      equity:Preferred
      stock; authorized 2,000,000 shares
    
    
    -
    
    
    -
    
    
    -Common
      stock, ascribed value $1.50 per share; authorized 150,000,000 shares;
      issued 51,076,567 shares
    
    
    76,615
    
    
    76,615
    
    
    76,615Additional
      paid-in capital
    
    
    3,306
    
    
    3,306
    
    
    3,306Retained
      earnings
    
    
    366,023
    
    
    363,733
    
    
    343,103Total
      shareholders' equity
    
    
    445,944
    
    
    443,654
    
    
    423,024$
    1,253,265
    
    $
    1,270,930
    
    $
    1,231,262





The
accompanying notes are an integral part of the financial
statements.









Page
3





**CONSOLIDATED
STATEMENT OF CASH FLOWS (Unaudited)**





Three
      Months EndedJanuary
      31(thousands)
    
    2005
    
    2004**Cash
      provided by (used for) operations:**Net
      income (loss)
    
    $
    3,312
    
    $
    (9,283
    )Charges
      to income (loss) not requiring cash:Depreciation
    
    
    17,619
    
    
    17,908Depletion
      and amortization
    
    
    2,790
    
    
    1,333Deferred
      taxes - net
    
    
    1,803
    
    
    (5,303
    )(Gain)
      loss on disposition of capital assets
    
    
    204
    
    
    (35
    )Change
      in:Accounts
      and notes receivable
    
    
    3,071
    
    
    15,549Inventories
    
    
    6,531
    
    
    1,153Other
    
    
    (1,180
    )
    
    (1,755
    )Pension
      and other noncurrent assets
    
    
    (277
    )
    
    (2,817
    )Accounts,
      payrolls and other taxes payable
    
    
    (8,890
    )
    
    (6,945
    )Other
      noncurrent liabilities
    
    
    184
    
    
    627Cash
      provided by operations
    
    
    25,167
    
    
    10,432**Cash
      provided by (used for) investing:**Additions
      to:Plant
      and equipment
    
    
    (9,440
    )
    
    (4,235
    )Timber
      and timberlands
    
    
    (2,593
    )
    
    (2,574
    )Proceeds
      from sale of capital assets
    
    
    940
    
    
    90Cash
      used for investing
    
    
    (11,093
    )
    
    (6,719
    )**Cash
      provided by (used for) financing:**Long-term
      debt
    
    
    (18,953
    )
    
    30,048Short-term
      borrowings
    
    
    10,000
    
    
    (29,000
    )Payable
      to bank resulting from checks in transit
    
    
    (4,115
    )
    
    (4,789
    )Accounts
      payable for construction
    
    
    16
    
    
    28Cash
      dividends
    
    
    (1,022
    )
    
    -Cash
      used for financing
    
    
    (14,074
    )
    
    (3,713
    )Change
      in cash position
    
    
    -
    
    
    -Cash
      position, beginning of period
    
    
    -
    
    
    -Cash
      position, end of period
    
    $
    -
    
    $
    -**Supplemental
      disclosures of cash flow information:**Cash
      paid (received) during the period for:Interest
      (net of amount capitalized)
    
    $
    15,998
    
    $
    15,333Income
      taxes
    
    
    68
    
    
    (1
    )





The
accompanying notes are an integral part of these financial
statements.













Page
4





**CONSOLIDATED
STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited)**





Three
      Months EndedJanuary
      31(thousands
      except per share)
    
    2005
    
    2004**COMMON
      STOCK:**Balance
      at beginning of period
    
    $
    76,615
    
    $
    76,615Balance
      at end of period
    
    $
    76,615
    
    $
    76,615**ADDITIONAL
      PAID-IN CAPITAL:**Balance
      at beginning of period
    
    $
    3,306
    
    $
    3,306Balance
      at end of period
    
    $
    3,306
    
    $
    3,306**RETAINED
      EARNINGS:**Balance
      at beginning of period
    
    $
    363,733
    
    $
    352,386Net
      income (loss)
    
    
    3,312
    
    
    (9,283
    )Less
      cash dividends on common stock
    
    
    (1,022
    )
    
    -Balance
      at end of period
    
    $
    366,023
    
    $
    343,103**DIVIDENDS
      PAID PER SHARE:**
    
    $
    0.02
    
    $
    -**COMMON
      SHARES:**Balance
      at beginning of period
    
    
    51,077
    
    
    51,077Balance
      at end of period
    
    
    51,077
    
    
    51,077





The
accompanying notes are an integral part of these financial
statements.










Page
5


****


**NOTE
1:** The
consolidated interim financial statements have been prepared by the company,
without audit and subject to year-end adjustment, in accordance with generally
accepted accounting principles, except that certain information and footnote
disclosure made in the latest annual report have been condensed or omitted for
the interim statements. Accordingly, these statements should be read in
conjunction with the company's latest annual report. Certain costs of a normal
recurring nature are estimated for the full year and allocated in interim
periods based on estimates of operating time expired, benefit received, or
activity associated with the interim period. The consolidated financial
statements reflect all adjustments that are, in the opinion of management,
necessary for fair presentation.








**NOTE
2:**





**Retirement
plans**





We have
two trusteed defined benefit pension programs which cover a majority of our
employees who have completed one year of continuous service. The plans provide
benefits of a stated amount for each year of service with an option for some
employees to receive benefits based on an average earnings formula.





The
components of net periodic pension income are summarized as
follows:





Three
      MonthsEnded
      January 31thousands
    
    2005
    
    2004Service
      cost - benefits earnedduring the year
    
    $
    2,470
    
    $
    2,257Interest
      cost on benefit obligation
    
    
    6,097
    
    
    5,988Expected
      return on plan assets
    
    
    (10,958
    )
    
    (11,309
    )Amortization
      of prior service cost
    
    
    1,469
    
    
    1,486Net
      periodic (income)
    
    $
    (922
    )
    $
    (1,578
    )








We do not
expect to make any contributions to our pension plans in 2005.





**Savings
plans**





Voluntary
savings plans are maintained for all employees who have completed one year of
continuous service. The plans allow salary deferrals in accordance with IRC
section 401(k) provisions. Our contribution as a matching incentive was $636,000
during the three month period ended January 31, 2005 and we expect to contribute
approximately $2.6 million for the full fiscal year.





**Postretirement
benefits other than pensions**





We
provide postretirement health care insurance benefits for all salaried and
certain non-salaried employees and their dependents. Individual benefits
generally continue until age 65. We do not pre-fund these benefits, and as such
have no plan assets. We paid $472,000 for these benefits during the three-month
period ended January 31, 2005 and we expect to pay approximately $2.0 million
for the full fiscal year.





The
components of net periodic postretirement cost are summarized as
follows:





Three
      MonthsEnded
      January 31thousands
    
    2005
    
    2004Service
      cost - benefits earnedduring the year
    
    $
    362
    
    $
    316Interest
      cost on benefit obligation
    
    
    578
    
    
    574Amortization
      of transition obligation
    
    
    124
    
    
    124Amortization
      of net loss
    
    
    27
    
    
    11Net
      periodic benefit cost
    
    $
    1,091
    
    $
    1,025









Page
6


****


**NOTE
3:**We use
derivative financial instruments that are designated as hedges of the fair value
of long-term debt and meet the shortcut method requirements under Statement of
Financial Accounting Standards No. 133 “Accounting for Derivative Instruments
and Hedging Activities”. Interest rate swap agreements are used as part of our
program to manage the fixed and floating interest rate mix of our total debt
portfolio and related overall cost of borrowing by replacing fixed rate debt
with floating rate debt. The interest rate swap agreements involve the periodic
exchange of payments without the exchange of the notional amount upon which the
payments are based. The changes in fair values of the interest rate swap
agreements are exactly offset by changes in the fair value of the underlying
long-term debt, therefore the adjustments are recorded on the balance sheet and
do not impact income. Unrealized gains and losses are recorded as current or
non-current assets or liabilities on the balance sheet based on the
classification of the underlying debt. No ineffectiveness has been recorded to
net income related to interest rate swaps designated as fair value hedges for
the fiscal quarters ended January 31, 2005 and 2004.




Total
deferred gain on all terminated interest rate swap agreements relating to our
senior subordinated notes was $6.64 million and $6.61 million at January 31,
2005 and 2004, respectively. The deferred gain is included in Other long-term
liabilities in the accompanying balance sheet and will reduce interest expense
over the term of the senior subordinated notes, which mature in 2009. The
mark-to-market adjustment for the outstanding interest rate swaps resulted in a
derivative liability of $1.1 million at January 31, 2005 and a derivative asset
of $0.5 million at January 31, 2004, with a corresponding adjustment to
long-term debt. See Note 4.


**NOTE
4:**Subsequent
event - In February 2005, we terminated our two interest rate swap agreements
and paid cash of $1.0 million resulting in a deferred loss of $1.1 million,
which taken alone would increase our interest expense. However, this deferred
loss will be netted with deferred gains on prior interest rate swap terminations
and will be included in Other liabilities in the balance sheet. The resulting
net gain will reduce interest expense over the remaining term of the senior
subordinated notes, which mature in 2009.









Page
7





**ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS**








**CONSOLIDATED
STATEMENT OF OPERATIONS**


**THREE
MONTHS ENDED JANUARY 31, 2005 COMPARED WITH**





**THREE
MONTHS ENDED JANUARY 31, 2004**








**Net
Sales** - First
fiscal quarter 2005 net sales were $224.1 million, compared with $169.9 million
for the first fiscal quarter of 2004. This 31.9% increase was attributed to an
increase of 25.7% in timber segment sales, a 68.3% increase in the paper and
paperboard segment sales, and a 17.6% increase in converted products
sales.  See
“Selected Segment Results” below.


Cost of
Products Sold- First
fiscal quarter 2005 cost of products sold was $188.2 million, or 84.0% of net
sales, compared with $155.9 million, or 91.7% of net sales, for first fiscal
quarter 2004. This decrease as a percentage of net sales was primarily due to a
20.9% decrease in total energy cost per ton of production at the paper mill, a
15.1% and 14.0% decrease in labor costs per ton of production at the paper mill
and the converting plants, respectively, and an 80.4% utilization rate at the
paper mill in the first fiscal quarter of 2005, compared with 62.4% in the first
fiscal quarter of 2004. This decrease was offset in part by a 14.9% increase in
total logging costs and reduced pension income. Pension income has a positive
effect on cost of products sold in all of our segments by reducing our accrued
labor obligations. Total fiber costs remained flat.





Our cost
of products sold also includes depreciation, depletion and amortization costs.
Depreciation, depletion and amortization consist primarily of depreciation on
our plant and equipment, the depletion cost of timber harvested and, to a lesser
degree, amortization of logging roads.





**Selling,
General and Administrative Expenses** - First
fiscal quarter 2005 selling, general and administrative expenses were $21.7
million, or 9.7% of net sales, compared with $19.4 million, or 11.4% of net
sales, for first fiscal quarter 2004. The primary reason for this decrease
percentage of net sales was an increase in net sales due to pricing and volume
increases, partially offset by increased salaries, consulting costs and less
pension income.  See
“Selected Segment Results” below.


**Operating
Profit (Loss)** - First
fiscal quarter 2005 operating profit was $14.1 million compared with operating
loss of $5.4 million for the first fiscal quarter 2004. This increase in
operating profit was attributed to an increase of 42.5% in the timber segment,
an improvement of 66.9% in the paper and paperboard segment, and a 76.2%
improvement in the converted products segment. See “Selected Segment Results”
below.





**Provision
(Benefit) for Taxes** - First
fiscal quarter 2005 provision for income taxes was $1.9 million reflecting a tax
rate of 37.0%. First fiscal quarter 2004 provision for income taxes was a
benefit of $5.5 million reflecting a tax rate of 37.0%.





**Net
Income (Loss)** - For the
reasons noted above, we earned net income of $3.3 million for the first fiscal
quarter 2005 compared with a net loss of $9.3 million for first fiscal quarter
2004.





**Selected
Segment Results**


**Timber**


Fiscal
      Quarter EndedJanuary
      31
    
    Percentage2005
    
    2004
    
    Increase/(Decrease)Timber
      net sales, $ millions
    
    $
    43.4
    
    $
    34.5
    
    
    25.7Timber
      operating profit, $ millions
    
    
    19.5
    
    
    13.7
    
    
    42.5Logs,
      thousands of board feet
    
    
    63,445
    
    
    48,752
    
    
    30.1Lumber,
      thousands of board feet
    
    
    18,023
    
    
    26,085
    
    
    (30.9
    )Logs,
      $/thousand board feet
    
    $
    587
    
    $
    524
    
    
    12.0Lumber,
      $/thousand board feet
    
    
    339
    
    
    343
    
    
    (1.2
    )








First
fiscal quarter 2005 timber net sales were $43.4 million, compared with $34.5
million for first fiscal quarter 2004. This 25.7% increase was due primarily to
an increase in log volume of 30.1% and an increase in log prices of 12.0%,
partially offset by a decrease in lumber volume of 30.9% along with a decrease
in lumber prices of 1.2%. Strong demand and favorable weather conditions
resulted in log volume increases compared to first fiscal quarter 2004, which
was adversely affected by severe winter weather. First quarter harvest levels
are inline with our target sales levels of 240 to 250 million board feet for
fiscal year 2005. The lumber decreases reflected our decision to optimize our
total returns and discontinue the processing of logs into lumber at a third
party sawmill in Oregon.










Page
8





First
fiscal quarter 2005 domestic log sales increased 78.9% on a 50.1% volume
increase and 19.1% price increase from year ago-levels due to the strong housing
market. First fiscal quarter 2005 export sales in the timber segment were $6.2
million, or 14.2% of timber net sales, compared with $8.3 million, or 24.1%, for
first fiscal quarter 2004. Export log sales declined 24.6% on a 29.7% volume
decline, partially offset by a 7.3% increase in average prices. The volume
decline was primarily the result of less volume of export quality logs harvested
in the first fiscal quarter of 2005 and the selling of certain export quality
logs in the strong domestic market.





First
fiscal quarter 2005 timber operating profit was $19.5 million, compared with
$13.7 million for first fiscal quarter 2004. The primary reasons for this 42.5%
improvement were an increase in log volume sold and increased log prices,
partially offset by a 14.9% increase in logging costs and lower lumber volume
and price.








**Paper
and Paperboard**


Fiscal
      Quarter EndedJanuary
      31
    
    Percentage2005
    
    2004
    
    Increase/(Decrease)Paper
      and Paperboard net sales,$
      millions
    
    $
    71.3
    
    $
    42.4
    
    
    68.3Paper
      and Paperboard operatingProfit
      (loss), $ millions
    
    
    (2.9
    )
    
    (8.7
    )
    
    -Paper,
      tons
    
    
    93,348
    
    
    60,632
    
    
    54.0Paperboard,
      tons
    
    
    43,036
    
    
    19,891
    
    
    116.4Paper,
      $/ton FOB mill equivalent
    
    $
    549
    
    $
    550
    
    
    (0.2
    )Paperboard,
      $/ton FOB mill equivalent
    
    
    350
    
    
    340
    
    
    2.9








First
fiscal quarter 2005 paper and paperboard net sales were $71.3 million, compared
with $42.4 million for first fiscal quarter 2004. Paper net sales in the first
fiscal quarter 2005 increased 58.1% to $56.0 million from $35.4 million in the
prior year period. Paperboard net sales in the first fiscal quarter 2005
increased 120.1% to $15.3 million from $7.0 million in the prior year period.
The increased sales were primarily due to a 54.0% and 116.4% increase in paper
and paperboard volume, respectively, and an increase in average paperboard price
of 2.9%. Paper prices remained flat. The paper volume increase was the result of
the general economic improvement in the U.S. market and the company enjoying an
increased share of the lightweight bag paper market as some competitors changed
from lightweight paper to paperboard production. The increase in lightweight bag
paper sales caused average paper sales price, from what we would have otherwise
experienced, to decline due to the relative lower price of these grades of
paper. The paperboard volume increase was primarily due to our decision to
produce and sell roll pulp to paperboard producers in Asia, with approximately
14,000 tons sold in first fiscal quarter 2005, compared with no sales in first
fiscal quarter 2004. The balance of the increased volume was from linerboard
sales resulting from the improved economy.





Domestic
paper net sales increased 65.7% on a 62.8% volume increase. Domestic paperboard
net sales increased 54.5% as volume increased 35.6% and average prices improved
14.7%. Export sales in the paper and paperboard segment were $19.2 million, or
27.0% of paper and paperboard net sales, compared with $10.7 million, or 25.3%,
for first fiscal quarter 2004. Export paper sales grew 29.2% on 24.8% higher
volume and 2.8% higher average price. Export paperboard sales increased 189.1%
as volume grew 192.3%. The primary reason for the volume increases in export
sales were the new sales of roll pulp and increased linerboard sales in the
export market.





First
fiscal quarter 2005 paper and paperboard operating loss was $2.9 million,
compared with an operating loss of $8.7 million for first fiscal quarter 2004.
Operating results were positively affected by lower paper mill energy costs per
ton of production, down 20.9% compared with first fiscal quarter 2004, and
decreased labor costs per ton of production, down 15.1%. Higher mill utilization
of 80.4% compared with first fiscal quarter 2004 of 62.4% also positively
contributed to operating results. During the quarter, we continued to fully
curtail two of our twelve paper machines and partially curtailed another in
order to match incoming orders with production.










Page
9





**Converted
Products**





Fiscal
      Quarter EndedJanuary
      31
    
    Percentage2005
    
    2004
    
    Increase/(Decrease)Converted
      Products sales, $ millions
    
    $
    109.4
    
    $
    93.1
    
    
    17.6Converted
      Products operatingprofit
      (loss), $ millions
    
    
    (2.5
    )
    
    (10.3
    )
    
    -Converted
      Products, tons
    
    
    132,111
    
    
    115,969
    
    
    13.9Converted
      Products, $/ton
    
    $
    828
    
    $
    802
    
    
    3.2








First
fiscal quarter 2005 converted products net sales were $109.4 million, compared
with $93.1 million for first fiscal quarter 2004. This 17.6% increase is due
primarily to an increase in volume of 13.9% and an increase in price of 3.2%.
Demand for our products was up due to the improving general economy.





First
fiscal quarter 2005 operating loss was $2.5 million, compared with an operating
loss of $10.3 million for first fiscal quarter 2004. Operating results were
positively affected by the price and volume improvement and by a 14.0% decrease
in labor costs per ton of product produced. The average mill cost of paperboard
supplied to our converting plants decreased by 9.1% for first fiscal quarter
2005, as compared with first fiscal quarter 2004; however, outside purchased
paperboard increased approximately 15%, resulting in a 0.9% net increase in the
cost of paperboard provided to our converting
plants.








**LIQUIDITY
AND CAPITAL RESOURCES**





At
January 31, 2005, our total borrowed debt was $473.2 million including long-term
debt of $453.2 million and short-term borrowings of $20.0 million.





At
January 31, 2005, we had $115.0 million outstanding under our $250 million
revolving credit facility, excluding letters of credit of $9.9 million. Also
outstanding at January 31, 2005, were various senior notes totaling $124.5
million, revenue bonds of $14.5 million and senior subordinated notes of $214.2
million, net of original issuance discount. In addition, we had $5.0 million
outstanding on a $15 million uncommitted line of credit. As of January 31, 2005,
we had approximately $135.0 million available under our bank lines of credit.
During the quarter, we paid off a $30 million senior note from borrowings under
our revolving credit facility. At current interest rates, we estimate the annual
savings from paying off this high rate senior note with LIBOR based borrowings
to be over $1 million. Our financing arrangements require us to be in compliance
with certain financial covenants, including minimum net worth, long-term
borrowing ratio and fixed charge coverage ratio and restrict our payment of
dividends. At January 31, 2005, we were in compliance with such
covenants.





Net cash
provided by operations was $25.2 million in the first fiscal quarter 2005 and
$10.4 million for the first fiscal quarter 2004. The primary reason for this
increase was the increase in net income.





Net cash
used for investing was $11.1 million in the first fiscal quarter 2005 and $6.7
million in the first fiscal quarter 2004. Our capital expenditures, including
timberland acquisitions, were $12.0 million in the first fiscal quarter 2005,
compared with $6.8 million in the first fiscal quarter 2004. Capital
expenditures are expected to be approximately $40 to $50 million for fiscal year
2005 including expenditures for timberland purchases, plant and equipment, and
environmental compliance.





Net cash
used for financing in the first fiscal quarter 2005 was $14.1 million while net
cash used for financing was $3.7 million for the first fiscal quarter 2004.
Borrowed debt decreased by $9.0 million during the first fiscal quarter 2005 due
to improved earnings. Borrowed debt increased by $1.0 million during the first
fiscal quarter 2004 from the previous quarter due partially to reduced cash from
operations offset in part by modest capital expenditures.





Each
quarter we determine the amount of our dividend, if any, based on, among other
things, operating results, current market conditions, debt levels and covenants
of financing agreements. A cash dividend of $0.02 per share was declared and
paid in the first fiscal quarter 2005 in the aggregate amount of $1.0 million.
Cash dividends were not paid in the first fiscal quarter of 2004.





In
February 2005, we terminated our two interest rate swap agreements and paid cash
of $1.0 million resulting in a deferred loss of $1.1 million, which taken alone
would increase our interest expense. However, this deferred loss will be netted
withdeferred
gains on prior interest rate swap terminations and will be included in Other
liabilities in the balance sheet. The resulting net deferred gain will reduce
interest expense over the remaining term of the underlying senior subordinated
notes, which mature in 2009.





We
believe that our cash flow generated from operations and available borrowings
under our revolving credit facility and our other line of credit provide
sufficient resources to fund operations and to meet our debt payment obligations
and foreseeable capital expenditure requirements.









Page
10





**FORWARD-LOOKING
STATEMENTS**





This Form
10-Q contains forward-looking statements, including statements concerning
expected log sales volume; expected capital expenditures; expected interest
savings; and anticipated cost of and availability of cash flow and financing to
fund operations, meet debt payment obligations and for planned capital
expenditure requirements.





Forward-looking
statements are based on the company’s estimates and projections on the date they
are made, and are subject to a variety of risks and uncertainties. Actual events
could differ materially from those anticipated by the company due to a variety
of factors, including, among others, developments in the world, national, or
regional economy or involving the company’s customers or competitors affecting
supply of or demand for the company’s products, energy or raw materials, changes
in product, energy or raw material prices; capital project delay, cost overruns
or unforeseen maintenance on capital assets or advantageous capital
acquisitions; changes in currency exchange rates between the U.S. dollar and the
currencies of important export markets; weather; labor disputes; unforeseen
adverse developments involving environmental matters or other legal proceedings
or the assertion of additional claims; unforeseen developments in the company's
business; adverse changes in the capital markets or interest rates affecting the
cost or availability of financing; or other unforeseen events. The company does
not undertake any obligation to update forward-looking statements should
circumstances or the company's estimates or projections change.





**ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK**





Our
derivative activities are primarily limited to interest rate swaps. During the
quarter we had in effect two interest rate swaps on a portion of our debt, to
hedge exposure of our fixed rate debt. See Notes 3 and 4 to our financial
statements for a more detailed discussion of our interest rate swaps. The swaps
were terminated in February 2005. Our exposure to market risks on our financial
instruments is limited to interest rate changes on variable rate debt, including
debt under our revolving credit facilities. The interest rates applied to our
variable rate borrowings are adjusted often and therefore react quickly to any
movement in the general trend of market interest rates. Interest expense
incurred annually related to our variable rate debt is dependent upon the amount
outstanding during the year and the extent to which interest rates rise and
fall. The fair market value of long-term fixed interest rate debt is subject to
interest rate risk as well. Generally, the fair market value of fixed rate debt
will increase as interest rates fall and decrease as interest rates rise. The
interest rate changes affect the fair market value but do not impact earnings or
cash flows.





**ITEM
4. CONTROLS AND PROCEDURES**





We
maintain a system of controls and procedures designed to provide reasonable
assurance as to the reliability of the financial statements and other
disclosures included in this quarterly report. We performed an evaluation, under
the supervision and with the participation of our management, including our
Chief Executive Officer and Senior Vice President-Finance, of the effectiveness
of the design and operation of our disclosure controls and procedures. Based on
that evaluation, our management, including our Chief Executive Officer and
Senior Vice President-Finance, concluded that as of January 31, 2005, the
disclosure controls and procedures were effective.





There
have not been any significant changes in our internal controls over financial
reporting during the most recent quarter that have materially affected, or are
reasonably likely to materially affect, our internal controls over financial
reporting.





Our Chief
Executive Officer and Senior Vice President-Finance do not expect that our
disclosure controls or our internal controls will prevent all errors and all
instances of fraud. A control system, no matter how well conceived and operated,
can provide only reasonable, not absolute, assurance that the objectives of the
system are met. Further, the design of a control system must reflect the fact
that there are resource constraints, and the benefits of controls must be
considered relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that
we have detected all our control issues and instances of fraud, if any. The
design of any system of controls also is based partly on certain assumptions
about the likelihood of future events, and there can be no assurance that any
design will succeed in achieving its stated goals under all potential future
conditions.









Page
11





**PART
II - OTHER INFORMATION** ****


ITEM 1.
LEGAL PROCEEDINGS.
 
 As we
have reported from time to time since 2002, we have been, and currently are,
named a defendant in a number of asbestos-related lawsuits in Madison County,
Illinois and St. Louis, Missouri, along with numerous other defendants. In each
of the lawsuits, the plaintiff alleges asbestos-related injuries from exposure
to the defendants’ asbestos products, as well as exposure to asbestos while
working on certain of the defendants' premises. At least one lawsuit alleges the
plaintiff worked at our premises for unidentified contractors. In all other
respects the claims are not specific as to what, if any, contacts the plaintiffs
had with us or our manufacturing plants or products. None of the claims
specifies damages sought from us individually, but each plaintiff alleges a
general jurisdictional amount against all defendants.
 
 In
the past, we have been routinely dismissed from these types of actions without
any payment or liability to the plaintiffs. The process by which the plaintiffs
in these actions file claims have led, and we believe will continue to lead, to
additional similar lawsuits. We believe we will likely again be dismissed as a
defendant, without prejudice, from these suits.
   **ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS.**
 Nothing
      to report.
 
 **ITEM
3. DEFAULTS UPON SENIOR SECURITIES.**
 
 Nothing
      to report.
 
 **ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**
 
 Nothing
      to report.
 
 **ITEM
5. OTHER INFORMATION.**
 
 Nothing
      to report.
 
 **ITEM
6. EXHIBITS.**
 
 The
      Exhibits to this report on Form 10-Q are listed on the accompanying
      Exhibit Index.











**SIGNATURES**





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.





**LONGVIEW
FIBRE COMPANY**


(Registrant)





**L.
J. McLAUGHLIN**  03/10/05


L. J.
McLAUGHLIN


Senior
Vice President-Finance,


Secretary
and Treasurer








**A.**  **G.**  **HIGGENS**  03/10/05


A. G.
HIGGENS


Assistant
Treasurer









Page
12




**EXHIBIT
INDEX**








**Exhibit
      No.**
    
    **Description**31.1
    
    Section
      302 Certification by R. H. Wollenberg, President and Chief Executive
      Officer.31.2
    
    Section
      302 Certification by L. J. McLaughlin, Sr. Vice President-Finance,
      Secretary and Treasurer.32.1
    
    Section
      1350 Certification by R. H. Wollenberg, President and Chief Executive
      Officer.32.2
    
    Section
      1350 Certification by L. J. McLaughlin, Sr. Vice President-Finance,
      Secretary and Treasurer.










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13