News Room

Print News Release

Weyerhaeuser reports first quarter results

- First quarter net earnings of $269 million, or $0.35 per diluted share

- Earnings before special items increased 65 percent compared with first quarter 2017

- Adjusted EBITDA increased 20 percent compared with first quarter 2017

- Highest first quarter Wood Products Adjusted EBITDA on record

Apr 27, 2018

SEATTLE, April 27, 2018 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $269 million, or 35 cents per diluted share, on net sales of $1.9 billion. This compares with earnings of $157 million, or 21 cents per diluted share, on net sales of $1.7 billion for the same period last year.

View our earnings release and financial statements in a printer-friendly PDF.

Excluding net after-tax special charges of $6 million, the company reported net earnings of $275 million, or 36 cents per diluted share for the first quarter. This compares with net earnings before special items of $167 million for the same period last year and $234 million for the fourth quarter of 2017.  Adjusted EBITDA for the first quarter was $544 million compared with $454 million for the first quarter of last year and $551 million for the fourth quarter of 2017.

"I am extremely pleased with our first quarter performance, as we fully capitalized on strong lumber, OSB and Western log markets to drive outstanding results, including the highest first quarter Wood Products EBITDA on record. This includes exceptional work by our teams to mitigate the effect of ongoing freight service disruptions," said Doyle R. Simons, president and chief executive officer. "Looking forward, we are relentlessly focused on capturing the full benefit of improving housing starts and favorable market dynamics to drive value for shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2017

 

2018

 

2017

(millions, except per share data)

Q4

 

Q1

 

Q1

Net sales

$1,823

 

$1,865

 

$1,693

Net earnings

$271

 

$269

 

$157

Net earnings per diluted share

$0.36

 

$0.35

 

$0.21

Weighted average shares outstanding, diluted

758

 

759

 

755

Net earnings before special items(1)

$234

 

$275

 

$167

Net earnings per diluted share before special items

$0.31

 

$0.36

 

$0.22

Adjusted EBITDA(2)

$551

 

$544

 

$454

 

(1) Fourth quarter 2017 after-tax special items include a $99 million gain on the sale of certain Southern timberlands, charges of $52 million for tax adjustments including enactment of tax legislation, charges of $31 million for product remediation, a benefit of $26 million for environmental remediation insurance recoveries, $12 million for Plum Creek merger-related costs, and a $7 million net benefit from an adjustment to accrued countervailing and antidumping duties on softwood lumber. First quarter 2018 after-tax special items include charges of $21 million for environmental remediation and a $15 million benefit from product remediation insurance proceeds. First quarter 2017 special items include after-tax charges of $10 million for Plum Creek merger-related costs.

(2) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income, adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. A reconciliation of Adjusted EBITDA to GAAP earnings is included within this release.

 

 

TIMBERLANDS

FINANCIAL HIGHLIGHTS

2017

 

2018

   

(millions)

Q4

 

Q1

 

Change

Net sales

$714

 

$733

 

$19

Contribution to pre-tax earnings

$265

 

$189

 

($76)

Pre-tax charge (benefit) for special items

($99)

 

$0

 

$99

Contribution to pre-tax earnings before special items

$166

 

$189

 

$23

Adjusted EBITDA

$252

 

$268

 

$16

1Q 2018 Performance - In the West, domestic and export log sales realizations improved compared with the fourth quarter, and forestry costs declined seasonally. In the South, seasonally lower fee harvest volumes were offset by slightly higher average sales realizations, lower unit logging costs and reduced forestry expense.

2Q 2018 Outlook - Weyerhaeuser expects second quarter earnings and Adjusted EBITDA will be significantly higher than the second quarter of 2017, but lower than the first quarter of 2018. Compared with the first quarter, the company anticipates seasonally higher unit logging costs and increased road and forestry costs, partially offset by slightly higher Western log sales realizations. Average Southern log sales realizations are expected to be similar to the first quarter.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS

2017

 

2018

   

(millions)

Q4

 

Q1

 

Change

Net sales

$100

 

$51

 

($49)

Contribution to pre-tax earnings

$50

 

$25

 

($25)

Adjusted EBITDA

$87

 

$41

 

($46)

1Q 2018 Performance - Earnings and Adjusted EBITDA decreased compared to the fourth quarter due to seasonally lower Real Estate sales.

2Q 2018 Outlook - Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be comparable to the first quarter. We continue to expect full year 2018 Adjusted EBITDA for the segment will be approximately $250 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS

2017

 

2018

   

(millions)

Q4

 

Q1

 

Change

Net sales

$1,228

 

$1,309

 

$81

Contribution to pre-tax earnings

$180

 

$270

 

$90

Pre-tax charge (benefit) for special items

$41

 

($20)

 

($61)

Contribution to pre-tax earnings before special items

$221

 

$250

 

$29

Adjusted EBITDA

$258

 

$286

 

$28

1Q 2018 Performance - Sales volumes increased across most product lines compared with the fourth quarter due to seasonally higher demand, and operating rates improved. Higher average sales realizations for lumber and engineered wood products were partially offset by lower average sales realizations for oriented strand board and increased Western log costs.

First quarter Adjusted EBITDA includes charges of $5 million for countervailing and anti-dumping duties on Canadian softwood lumber. These duties are no longer reported as a special item.

First quarter special items consist of a $20 million pre-tax benefit from product remediation insurance proceeds.

2Q 2018 Outlook - Weyerhaeuser expects significantly higher earnings before special items and Adjusted EBITDA in the second quarter compared with the first quarter. The company anticipates seasonally higher sales volumes and improved operating rates. Higher average sales realizations for lumber, oriented strand board and engineered wood products will be partially offset by higher Western log costs.

UNALLOCATED

FINANCIAL HIGHLIGHTS

2017

 

2018

   

(millions)

Q4

 

Q1

 

Change

Contribution to pre-tax earnings

($25)

 

($92)

 

($67)

Pre-tax charge (benefit) for special items

($28)

 

$28

 

$56

Contribution to pre-tax earnings before special items

($53)

 

($64)

 

($11)

Adjusted EBITDA

($46)

 

($51)

 

($5)

1Q 2018 Performance - Non-cash charges for elimination of intercompany profit in inventory and LIFO increased compared with the fourth quarter due to higher values and volume for softwood lumber and Western log inventories. Non-cash non-operating pension and post-retirement expense also increased.

First quarter special items consist of $28 million in pre-tax charges for environmental remediation associated with a formerly owned mill site.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.4 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2017, we generated $7.2 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the North American and World Dow Jones Sustainability Indices. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 27, 2018, to discuss first quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 27, 2018.

To join the conference call from within North America, dial 855-223-0757 (access code: 1693068) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 1693068). Replays will be available for two weeks at 855-859-2056 (access code: 1693068) from within North America and at 404-537-3406 (access code: 1693068) from outside North America.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including without limitation with respect to the following for the second quarter of 2018: earnings and Adjusted EBITDA for each of our business segments; log sale realizations, fee harvest volumes and logging, road and forestry costs in our timber business; and sales volumes and realizations and operating rates for our Wood Products business. These statements generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and expressions such as "will be," "will continue," "will likely result," and similar words and expressions. These statements are based on our current expectations and assumptions and are not guarantees of future performance.  The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

  • the effect of general economic conditions, including employment rates, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;
  • market demand for our products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
  • changes in currency exchange rates, particularly the relative value of the U.S. dollar to the yen and the Canadian dollar, and the relative value of the euro to the yen;
  • restrictions on international trade, tariffs imposed on imports and the availability and cost of shipping and transportation;
  • economic activity in Asia, especially Japan and China;
  • performance of our manufacturing operations, including maintenance requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • raw material availability and prices;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
  • the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;
  • transportation and labor availability and costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;
  • changes in accounting principles; and
  • other matters described under "Risk Factors" in our 2017 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements and other reports and filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

For more information contact:
Analysts - Beth Baum, 206-539-3907
Media - Nancy Thompson, 919-861-0342

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2017:

 

DOLLAR AMOUNTS IN MILLIONS

Timberlands

 

Real Estate
& ENR

 

Wood
Products

 

Unallocated
Items

 

Total

Adjusted EBITDA by Segment:

                 

Net earnings

               

$

271

 

Interest expense, net of capitalized interest

               

96

 

Income taxes

               

103

 

Net contribution to earnings

$

265

   

$

50

   

$

180

   

$

(25)

   

$

470

 

Non-operating pension and other postretirement benefit (costs) credits

   

   

   

16

   

16

 

Interest income and other

   

   

   

(10)

   

(10)

 

Operating income (loss)

265

   

50

   

180

   

(19)

   

476

 

Depreciation, depletion and amortization

86

   

4

   

37

   

   

127

 

Basis of real estate sold

   

33

   

   

   

33

 

Unallocated pension service costs

   

   

   

1

   

1

 

Special items(1)(2)(3)

(99)

   

   

41

   

(28)

   

(86)

 

Adjusted EBITDA

$

252

   

$

87

   

$

258

   

$

(46)

   

$

551

 
 

(1) Pre-tax special items included in Timberlands consist of a $99 million gain on the sale of certain Southern timberlands.

(2) Pre-tax special items included in Wood Products consist of $50 million of product remediation charges, partially offset by a $9 million benefit from an adjustment to accrued softwood lumber countervailing and antidumping duties.

(3) Pre-tax special items included in Unallocated Items consist of $42 million for environmental remediation insurance recoveries and $14 million for Plum Creek merger-related costs.

 

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2018:

 

DOLLAR AMOUNTS IN MILLIONS

Timberlands

 

Real Estate & ENR

 

Wood Products

 

Unallocated Items

 

Total

Adjusted EBITDA by Segment:

                 

Net earnings

               

$

269

 

Interest expense, net of capitalized interest

               

93

 

Income taxes

               

30

 

Net contribution to earnings

$

189

   

$

25

   

$

270

   

$

(92)

   

$

392

 

Non-operating pension and other postretirement benefit (costs) credits

   

   

   

24

   

24

 

Interest income and other

   

   

   

(12)

   

(12)

 

Operating income (loss)

189

   

25

   

270

   

(80)

   

404

 

Depreciation, depletion and amortization

79

   

4

   

36

   

1

   

120

 

Basis of real estate sold

   

12

   

   

   

12

 

Unallocated pension service costs

   

   

   

   

 

Special items(1)(2)

   

   

(20)

   

28

   

8

 

Adjusted EBITDA

$

268

   

$

41

   

$

286

   

$

(51)

   

$

544

 
 

(1)   Pre-tax special items attributable to Wood Products include a $20 million benefit from product remediation insurance proceeds.

(2)   Pre-tax special items included in Unallocated Items consist of charges of $28 million for environment remediation.

 

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2017:

DOLLAR AMOUNTS IN MILLIONS

Timberlands

 

Real Estate & ENR

 

Wood Products

 

Unallocated Items

 

Total

Adjusted EBITDA by Segment:

                 

Net earnings

               

$

157

 

Interest expense, net of capitalized interest

               

99

 

Income taxes

               

24

 

Net contribution to earnings

$

148

   

$

26

   

$

172

   

$

(66)

   

$

280

 

Non-operating pension and other postretirement benefit (costs) credits

   

   

   

22

   

22

 

Interest income and other

   

   

   

(9)

   

(9)

 

Operating income (loss)

148

   

26

   

172

   

(53)

   

293

 

Depreciation, depletion and amortization

94

   

3

   

35

   

1

   

133

 

Basis of real estate sold

   

14

   

   

   

14

 

Unallocated pension service costs

   

   

   

2

   

2

 

Special items(1)

   

   

   

12

   

12

 

Adjusted EBITDA

$

242

   

$

43

   

$

207

   

$

(38)

   

$

454

 
 

(1)   Pre-tax special items include $12 million of Plum Creek merger-related costs.

 

Weyerhaeuser Company

   

Exhibit 99.2

Q1.2018 Analyst Package

     

Preliminary results (unaudited)

   
           

Consolidated Statement of Operations

           

in millions

Q4

 

Q1

 

December 31,
2017

 

March 31,
 2018

 

March 31,
 2017

Net sales

$

1,823

   

$

1,865

   

$

1,693

 

Cost of products sold

1,316

   

1,348

   

1,272

 

Gross margin

507

   

517

   

421

 

Selling expenses

21

   

23

   

22

 

General and administrative expenses

72

   

78

   

87

 

Research and development expenses

2

   

2

   

4

 

Charges for integration and restructuring, closures and asset impairments

16

   

2

   

13

 

Charges (recoveries) for product remediation

50

   

(20)

   

 

Other operating costs (income), net

(130)

   

28

   

2

 

Operating income

476

   

404

   

293

 

Non-operating pension and other postretirement benefit (costs) credits

(16)

   

(24)

   

(22)

 

Interest income and other

10

   

12

   

9

 

Interest expense, net of capitalized interest

(96)

   

(93)

   

(99)

 

Earnings before income taxes

374

   

299

   

181

 

Income taxes

(103)

   

(30)

   

(24)

 

Net earnings

$

271

   

$

269

   

$

157

 
 

Per Share Information

 
 

Q4

 

Q1

 

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

Earnings per share, basic and diluted

$

0.36

   

$

0.35

   

$

0.21

 

Dividends paid per common share

$

0.32

   

$

0.32

   

$

0.31

 

Weighted average shares outstanding (in thousands):

         

Basic

755,409

   

756,815

   

750,665

 

Diluted

758,463

   

759,462

   

754,747

 

Common shares outstanding at end of period (in thousands)

755,223

   

756,700

   

751,411

 
           

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*

           

in millions

Q4

 

Q1

 

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

Net earnings

$

271

   

$

269

   

$

157

 

Non-operating pension and other postretirement benefit costs (credits)

16

   

24

   

22

 

Interest income and other

(10)

   

(12)

   

(9)

 

Interest expense, net of capitalized interest

96

   

93

   

99

 

Income taxes

103

   

30

   

24

 

Operating income

476

   

404

   

293

 

Depreciation, depletion and amortization

127

   

120

   

133

 

Basis of real estate sold

33

   

12

   

14

 

Unallocated pension service costs

1

   

   

2

 

Special items

(86)

   

8

   

12

 

Adjusted EBITDA*

$

551

   

$

544

   

$

454

 
           

*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs, and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.


 

 

Weyerhaeuser Company

Total Company Statistics

Q1.2018 Analyst Package

     

Preliminary results (unaudited)

   
           

Special Items Included in Net Earnings (Income Tax Affected)

           

in millions

Q4

 

Q1

 

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

Net earnings

$

271

   

$

269

   

$

157

 

Plum Creek merger and integration-related costs

12

   

   

10

 

Gain on sale of timberlands

(99)

   

   

 

Environmental remediation charges (recoveries)

(26)

   

21

   

 

Countervailing and antidumping duties charges (credits)(1)

(7)

   

   

 

Product remediation charges (recoveries)

31

   

(15)

   

 

Tax adjustments, including enactment of tax legislation

52

   

   

 

Net earnings before special items

$

234

   

$

275

   

$

167

 
           
 

Q4

 

Q1

 

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

Net earnings per diluted share

$

0.36

   

$

0.35

   

$

0.21

 

Plum Creek merger and integration-related costs

0.02

   

   

0.01

 

Gain on sale of timberlands

(0.14)

   

   

 

Environmental remediation charges (recoveries)

(0.03)

   

0.03

   

 

Countervailing and antidumping duties charges (credits)(1)

(0.01)

   

   

 

Product remediation charges (recoveries)

0.04

   

(0.02)

   

 

Tax adjustments, including enactment of tax legislation

0.07

   

   

 

Net earnings per diluted share before special items

$

0.31

   

$

0.36

   

$

0.22

 

(1)As of first quarter 2018, countervailing and anti-dumping duties are no longer reported as a special item.

 

 

           

Selected Total Company Items

 

in millions

Q4

 

Q1

 

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

Pension and postretirement costs:

         

Pension and postretirement service costs

$

9

   

$

10

   

$

10

 

Non-operating pension and other postretirement benefit costs (credits)

16

   

24

   

22

 

Total company pension and postretirement costs

$

25

   

$

34

   

$

32

 

 

 

Weyerhaeuser Company

     

Q1.2018 Analyst Package

   

Preliminary results (unaudited)

         

Consolidated Balance Sheet

           

in millions

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

 

ASSETS

         

Current assets:

         

Cash and cash equivalents

$

824

   

$

598

   

$

455

 

Receivables, less allowances

396

   

481

   

472

 

Receivables for taxes

14

   

24

   

10

 

Inventories

383

   

445

   

386

 

Prepaid expenses and other current assets

98

   

118

   

142

 

Current restricted financial investments held by variable interest entities

   

253

   

 

Total current assets

1,715

   

1,919

   

1,465

 

Property and equipment, net

1,618

   

1,573

   

1,544

 

Construction in progress

225

   

275

   

230

 

Timber and timberlands at cost, less depletion

12,954

   

12,888

   

14,218

 

Minerals and mineral rights, less depletion

308

   

306

   

317

 

Goodwill

40

   

40

   

40

 

Deferred tax assets

268

   

244

   

287

 

Other assets

316

   

278

   

285

 

Restricted financial investments held by variable interest entities

615

   

362

   

615

 

Total assets

$

18,059

   

$

17,885

   

$

19,001

 
           

LIABILITIES AND EQUITY

         

Current liabilities:

         

Current maturities of long-term debt

$

62

   

$

   

$

343

 

Current debt (nonrecourse to the company) held by variable interest entities

209

   

209

   

 

Accounts payable

249

   

245

   

227

 

Accrued liabilities

645

   

457

   

452

 

Total current liabilities

1,165

   

911

   

1,022

 

Long-term debt

5,930

   

5,928

   

6,263

 

Long-term debt (nonrecourse to the company) held by variable interest entities

302

   

302

   

511

 

Deferred pension and other postretirement benefits

1,487

   

1,454

   

1,287

 

Deposit received from contribution of timberlands to related party

   

   

422

 

Other liabilities

276

   

299

   

281

 

Total liabilities

9,160

   

8,894

   

9,786

 

Total equity

8,899

   

8,991

   

9,215

 

Total liabilities and equity

$

18,059

   

$

17,885

   

$

19,001

 

 

 

Weyerhaeuser Company

 

Q1.2018 Analyst Package

Preliminary results (unaudited)

         

Consolidated Statements of Cash Flows

           

in millions

Q4

 

Q1

 

December 31,
 2017

 

March 31,
 2018

 

March 31,
 2017

Cash flows from operations:

         

Net earnings

$

271

   

$

269

   

$

157

 

Noncash charges (credits) to income:

         

Depreciation, depletion and amortization

127

   

120

   

133

 

Basis of real estate sold

33

   

12

   

14

 

Deferred income taxes, net

35

   

10

   

3

 

Pension and other postretirement benefits

25

   

34

   

32

 

Share-based compensation expense

11

   

9

   

10

 

Charges for impairments of assets

1

   

   

 

Net gain on sale of southern timberlands

(99)

   

   

 

Foreign exchange transaction (gains) losses

(1)

   

2

   

3

 

Change in:

         

Receivables, less allowances

78

   

(83)

   

(70)

 

Receivables and payables for taxes

66

   

5

   

(36)

 

Inventories

(43)

   

(66)

   

(28)

 

Prepaid expenses

(3)

   

(5)

   

(9)

 

Accounts payable and accrued liabilities

(78)

   

(173)

   

(137)

 

Pension and postretirement benefit contributions and payments

(19)

   

(16)

   

(22)

 

Other

(50)

   

18

   

(15)

 

Net cash from operations

$

354

   

$

136

   

$

35

 
           

Cash flows from investing activities:

         

Purchases of property and equipment(1)

$

(145)

   

$

(61)

   

$

(52)

 

Timberlands reforestation costs(1)

(15)

   

(20)

   

(23)

 

Proceeds from sale of nonstrategic assets

6

   

2

   

8

 

Proceeds from sale of southern timberlands

 

203

   

   

 

Proceeds from redemption of ownership in related party

108

   

   

 

Other

18

   

3

   

(1)

 

Cash from (used in) investing activities

$

175

   

$

(76)

   

$

(68)

 
           

Cash flows from financing activities:

         

Cash dividends on common shares

$

(242)

   

$

(242)

   

$

(233)

 

Payments of long-term debt

   

(62)

   

 

Proceeds from exercise of stock options

39

   

25

   

55

 

Other

1

   

(7)

   

(10)

 

Cash from (used in) financing activities

$

(202)

   

$

(286)

   

$

(188)

 
           

Net change in cash and cash equivalents

$

327

   

$

(226)

   

$

(221)

 

Cash and cash equivalents at beginning of period

497

   

824

   

676

 

Cash and cash equivalents at end of period

$

824

   

$

598

   

$

455

 
           

Cash paid during the period for:

         

Interest, net of amount capitalized

$

66

   

$

105

   

$

120

 

Income taxes

$

40

   

$

17

   

$

59

 
           

(1) Purchases for property and equipment and Timberlands reforestation costs represent total Company cash spent for capital expenditures.

 

Weyerhaeuser Company

Timberlands Segment

 

Q1.2018 Analyst Package

   

Preliminary results (unaudited)

 

Segment Statement of Operations

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Sales to unaffiliated customers

$

496

   

$

505

   

$

486

   

Intersegment sales

218

   

228

   

202

   

Total net sales

714

   

733

   

688

   

Cost of products sold

531

   

526

   

519

   

Gross margin

183

   

207

   

169

   

Selling expenses

1

   

1

   

1

   

General and administrative expenses

19

   

23

   

24

   

Research and development expenses

2

   

2

   

3

   

Other operating income, net

(104)

   

(8)

   

(7)

   

Operating income and Net contribution to earnings

$

265

   

$

189

   

$

148

   
               

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Operating income

$

265

   

$

189

   

$

148

   

Depreciation, depletion and amortization

86

   

79

   

94

   

Special items

(99)

   

   

   

Adjusted EBITDA*

$

252

   

$

268

   

$

242

   

*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 
               

Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Gain on sale of timberlands

$

99

   

$

   

$

   
   

Selected Segment Items

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Total decrease (increase) in working capital(1)

$

(15)

   

$

(40)

   

$

(18)

   

Cash spent for capital expenditures

$

(36)

   

$

(28)

   

$

(30)

   

(1) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

 
               

Segment Statistics(2)(3)

 
               
 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Third Party Net Sales(millions)

Delivered logs:

           

West

$

242

   

$

266

   

$

225

   

South

165

   

157

   

148

   

North

27

   

25

   

27

   

Other

11

   

14

   

20

   

Total delivered logs

445

   

462

   

420

   

Stumpage and pay-as-cut timber

21

   

15

   

12

   

Products from international operations

   

   

19

   

Recreational and other lease revenue

14

   

14

   

14

   

Other revenue

16

   

14

   

21

   

Total

$

496

   

$

505

   

$

486

   

Delivered Logs

Third Party Sales

Realizations (per ton)

West

$

121.41

   

$

131.59

   

$

104.27

   

South

$

34.53

   

$

34.83

   

$

34.48

   

North

$

60.77

   

$

60.79

   

$

59.57

   

Delivered Logs

Third Party Sales

Volumes

(tons, thousands)

West

1,992

   

2,019

   

2,157

   

South

4,790

   

4,510

   

4,293

   

North

439

   

404

   

454

   

Other

232

   

317

   

510

   

Fee Harvest Volumes

(tons, thousands)

West

2,544

   

2,443

   

2,657

   

South

7,350

   

6,751

   

6,373

   

North

635

   

549

   

622

   

Other

   

   

371

   

(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations (our management agreement for the Twin Creeks Venture began in April 2016 and terminated in December 2017).

 

(3) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

 

Weyerhaeuser Company

Real Estate, Energy and Natural Resources Segment

 

Q1.2018 Analyst Package

 

Preliminary results (unaudited)

       
         

Segment Statement of Operations

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Net sales

$

100

   

$

51

   

$

53

   

Cost of products sold

43

   

19

   

20

   

Gross margin

57

   

32

   

33

   

General and administrative expenses

6

   

7

   

7

   

Other operating costs (income), net

1

   

   

   

Operating income and net contribution to earnings

$

50

   

$

25

   

$

26

   
               

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Operating income

$

50

   

$

25

   

$

26

   

Depreciation, depletion and amortization

4

   

4

   

3

   

Basis of real estate sold

33

   

12

   

14

   

Adjusted EBITDA*

$

87

   

$

41

   

$

43

   

*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 
               

Selected Segment Items

 
               

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Cash spent for capital expenditures

$

   

$

   

$

   
               

Segment Statistics

 
               
 

Q4.2017

 

Q1.2018

 

Q1.2017

 

Net Sales
(millions)

Real Estate

$

80

   

$

34

   

$

37

   

Energy and Natural Resources

20

   

17

   

16

   

Total

$

100

   

$

51

   

$

53

   

Acres Sold

Real Estate

38,226

   

21,771

   

13,257

   

Price per Acre

Real Estate

$

2,076

   

$

1,539

   

$

2,403

   

 

Weyerhaeuser Company

Wood Products Segment

Q1.2018 Analyst Package

       

Preliminary results (unaudited)

     
             

Segment Statement of Operations

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

Net sales

$

1,228

   

$

1,309

   

$

1,154

 

Cost of products sold

947

   

1,005

   

926

 

Gross margin

281

   

304

   

228

 

Selling expenses

20

   

21

   

21

 

General and administrative expenses

32

   

34

   

32

 

Research and development expenses

   

   

1

 

Charges for integration and restructuring, closures and asset impairments

2

   

2

   

1

 

Charges (recoveries) for product remediation

50

   

(20)

   

 

Other operating costs (income), net

(3)

   

(3)

   

1

 

Operating income and Net contribution to earnings

$

180

   

$

270

   

$

172

 
             

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

Operating income

$

180

   

$

270

   

$

172

 

Depreciation, depletion and amortization

37

   

36

   

35

 

Special items

41

   

(20)

   

 

Adjusted EBITDA*

$

258

   

$

286

   

$

207

 

*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

Countervailing and antidumping duties (charges) credits(1)

$

9

   

$

   

$

 

Product remediation (charges) recoveries

(50)

   

20

   

 

Total

$

(41)

   

$

20

   

$

 

(1)As of first quarter 2018, countervailing and anti-dumping duties are no longer reported as a special item.

             

Selected Segment Items

             

in millions

 

Q4.2017

 

Q1.2018

 

Q1.2017

Total decrease (increase) in working capital(1)

$

(81)

   

$

(226)

   

$

(122)

 

Cash spent for capital expenditures

$

(123)

   

$

(52)

   

$

(44)

 

(1) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

Segment Statistics

in millions, except for third party sales realizations

Q4.2017

 

Q1.2018

 

Q1.2017

Structural Lumber
(volumes presented

in board feet)

Third party net sales

$

517

   

$

569

   

$

478

 

Third party sales realizations

$

466

   

$

498

   

$

413

 

Third party sales volumes(2)

1,110

   

1,140

   

1,158

 

Production volumes

1,118

   

1,160

   

1,152

 

Engineered Solid
Section
(volumes presented

in cubic feet)

Third party net sales

$

122

   

$

129

   

$

117

 

Third party sales realizations

$

2,076

   

$

2,088

   

$

1,881

 

Third party sales volumes(2)

5.9

   

6.2

   

6.2

 

Production volumes

5.8

   

6.3

   

6.3

 

Engineered
I-joists
(volumes presented

in lineal feet)

Third party net sales

$

85

   

$

78

   

$

73

 

Third party sales realizations

$

1,561

   

$

1,585

   

$

1,481

 

Third party sales volumes(2)

54

   

49

   

49

 

Production volumes

52

   

56

   

50

 

Oriented Strand
Board
(volumes presented

in square feet 3/8")

Third party net sales

$

233

   

$

232

   

$

203

 

Third party sales realizations

$

335

   

$

314

   

$

263

 

Third party sales volumes(2)

697

   

739

   

769

 

Production volumes

739

   

734

   

758

 

Softwood Plywood

(volumes presented

in square feet 3/8")

Third party net sales

$

40

   

$

50

   

$

44

 

Third party sales realizations

$

417

   

$

438

   

$

377

 

Third party sales volumes(2)

95

   

115

   

118

 

Production volumes

86

   

97

   

97

 

Medium Density
Fiberboard 
(volumes presented

in square feet 3/4")

Third party net sales

$

37

   

$

43

   

$

47

 

Third party sales realizations

$

829

   

$

839

   

$

795

 

Third party sales volumes(2)

45

   

51

   

59

 

Production volumes

50

   

50

   

56

 
 

(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

 

Weyerhaeuser Company

Unallocated Items

Q1.2018 Analyst Package

     

Preliminary results (unaudited)

   
           

Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as share-based compensation expense, pension and postretirement costs, foreign exchange transaction gains and losses and the elimination of intersegment profit in inventory and LIFO.

           

Contribution to Earnings

           

in millions

Q4.2017

 

Q1.2018

 

Q1.2017

Unallocated corporate function and variable compensation expense

$

(18)

   

$

(18)

   

$

(19)

 

Liability classified share-based compensation

(2)

   

   

(6)

 

Foreign exchange gains (losses)

1

   

(2)

   

(3)

 

Elimination of intersegment profit in inventory and LIFO

(14)

   

(21)

   

(6)

 

Charges for integration and restructuring, closures and asset impairments

(14)

   

   

(12)

 

Other

28

   

(39)

   

(7)

 

Operating income (loss)

(19)

   

(80)

   

(53)

 

Non-operating pension and other postretirement benefit (costs) credits

(16)

   

(24)

   

(22)

 

Interest income and other

10

   

12

   

9

 

Net contribution to earnings

$

(25)

   

$

(92)

   

$

(66)

 
           

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

           

in millions

Q4.2017

 

Q1.2018

 

Q1.2017

Operating income (loss)

$

(19)

   

$

(80)

   

$

(53)

 

Depreciation, depletion and amortization

   

1

   

1

 

Unallocated pension service costs

1

   

   

2

 

Special items

(28)

   

28

   

12

 

Adjusted EBITDA*

$

(46)

   

$

(51)

   

$

(38)

 

*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

         
           

Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)

           

in millions

Q4.2017

 

Q1.2018

 

Q1.2017

Plum Creek merger and integration-related costs

$

(14)

   

$

   

$

(12)

 

Environmental remediation insurance (charges) recoveries

42

   

(28)

   

 

Total

$

28

   

$

(28)

   

$

(12)

 
           

Unallocated Selected Items

           

in millions

Q4.2017

 

Q1.2018

 

Q1.2017

Cash spent for capital expenditures

$

(1)

   

$

(1)

   

$

(1)

 

 

SOURCE Weyerhaeuser Company


Top
Welcome to Weyerhaeuser's new website!

You appear to be using an older browser. This website is best viewed using the latest versions of Internet Explorer, Chrome, Safari, and Firefox. If you proceed without upgrading or switching browsers, you may not experience optimal navigation or page functionality. Thank you for your interest in Weyerhaeuser and we hope you enjoy your visit.

Update my browser now

×