Weyerhaeuser Investor Relations
Weyerhaeuser reports second quarter results
- Achieved net earnings of $72 million, or $0.10 per diluted share
- Increased Adjusted EBITDA by more than 12 percent compared to second quarter 2019
Jul 31, 2020
SEATTLE, July 31, 2020 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $72 million, or 10 cents per diluted share, on net sales of $1.6 billion. This compares with net earnings of $128 million, or 17 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 a net after-tax charge of $5 million for special items, primarily related to the early extinguishment of debt, the company reported second quarter net earnings of $77 million, or 11 cents per diluted share. This compares with net earnings before special items of $123 million for the same period last year and $138 million for the first quarter of 2020.
Adjusted EBITDA for the second quarter of 2020 was $386 million compared with $343 million for the same period last year and $413 million for the first quarter of 2020.
"In the second quarter, we delivered strong results across each of our businesses despite the disruptive impacts of the COVID-19 pandemic," said Devin W. Stockfish, president and chief executive officer. "I am extremely proud of the dedication and focus of our teams as they safely adapted business practices, efficiently pivoted operating postures, and capitalized on operational excellence opportunities while navigating unprecedented fluctuations in market demand. This includes delivering record low cost performance in lumber despite significant production curtailments."
"These operational efforts, in conjunction with improving market conditions and our prior actions to enhance financial flexibility, enabled us to generate solid cash flow and strengthen our balance sheet. Entering the third quarter, U.S. housing activity is improving, but against a backdrop of rising COVID-19 infection rates and the rollback of certain economic reopening plans. We remain focused on operating safely and efficiently, effectively capitalizing on a full range of market conditions, and driving long-term value for our shareholders through disciplined, prudent capital allocation."
|
WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2020 |
2020 |
2019 |
|||
|
(millions, except per share data) |
Q1 |
Q2 |
Q2 |
|||
|
Net sales |
$1,728 |
$1,631 |
$1,692 |
|||
|
Net earnings |
$150 |
$72 |
$128 |
|||
|
Net earnings per diluted share |
$0.20 |
$0.10 |
$0.17 |
|||
|
Weighted average shares outstanding, diluted |
747 |
747 |
746 |
|||
|
Net earnings before special items(1)(2) |
$138 |
$77 |
$123 |
|||
|
Net earnings per diluted share before special items(1) |
$0.18 |
$0.11 |
$0.16 |
|||
|
Adjusted EBITDA(1) |
$413 |
$386 |
$343 |
|
(1) |
Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, 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 and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release. |
|
(2) |
Second quarter 2020 after-tax special items include an $11 million net charge related to the early extinguishment of debt and a $6 million benefit related to a product remediation insurance recovery. Special items for other periods presented are included in the reconciliation tables following this release. |
TIMBERLANDS
|
FINANCIAL HIGHLIGHTS |
2020 |
2020 |
||||
|
(millions) |
Q1 |
Q2 |
Change |
|||
|
Net sales |
$503 |
$480 |
($23) |
|||
|
Net contribution to pretax earnings |
$105 |
$75 |
($30) |
|||
|
Adjusted EBITDA |
$173 |
$140 |
($33) |
Q2 2020 Performance – In the West, log sales volumes and average sales realizations were comparable to the first quarter, as lower volumes and realizations for domestic and Japan export logs were offset by improved China export volumes and realizations. Forestry and road spending was seasonally higher, and export costs increased. In the South, harvest volumes decreased approximately 4 percent and average sales realizations declined slightly due to mix. In the North, fee harvest volumes decreased seasonally due to spring breakup.
Q3 2020 Outlook – Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be lower than second quarter. In the West, the company anticipates slightly lower average log sales realizations and seasonally higher road, forestry, and per unit logging and hauling costs. The company expects higher average Western domestic log realizations, slightly lower export log realizations, and a higher proportion of domestic log sales compared with the second quarter. In the South, the company expects seasonally higher forestry expenses, decreased fee harvest volumes and slightly lower average log sales realizations, primarily due to mix.
REAL ESTATE, ENERGY & NATURAL RESOURCES
|
FINANCIAL HIGHLIGHTS |
2020 |
2020 |
||||
|
(millions) |
Q1 |
Q2 |
Change |
|||
|
Net sales |
$112 |
$65 |
($47) |
|||
|
Net contribution to pretax earnings |
$36 |
$19 |
($17) |
|||
|
Adjusted EBITDA |
$101 |
$57 |
($44) |
Q2 2020 Performance – The number of real estate acres sold decreased compared with the first quarter, and average price per acre declined due to the mix of properties sold. Average land basis as a percent of sales increased slightly due to mix. Energy & Natural Resources earnings and Adjusted EBITDA were comparable to the first quarter.
Q3 2020 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be comparable to the second quarter. The company now expects full year 2020 Adjusted EBITDA for the segment will be approximately $235 million, an increase from the $200 million previously expected.
WOOD PRODUCTS
|
FINANCIAL HIGHLIGHTS |
2020 |
2020 |
||||
|
(millions) |
Q1 |
Q2 |
Change |
|||
|
Net sales |
$1,235 |
$1,207 |
($28) |
|||
|
Net contribution to pretax earnings |
$134 |
$159 |
$25 |
|||
|
Pretax benefit for special items |
$— |
($8) |
($8) |
|||
|
Net contribution to pretax earnings before special items |
$134 |
$151 |
$17 |
|||
|
Adjusted EBITDA |
$184 |
$198 |
$14 |
Q2 2020 Performance – Market demand for wood products declined sharply in April due to the economic impact of COVID-19 but rebounded later in the quarter. In April, Weyerhaeuser reduced production volumes across its manufacturing facilities to align with customer demand. As the quarter progressed, the company dynamically adjusted operating rates in response to improving market conditions.
Average sales realizations for lumber increased 5 percent compared with the first quarter, and manufacturing costs improved across all product lines due to operational excellence and cost management initiatives. This was partially offset by lower sales volumes for most product lines.
Second quarter special items consist of an $8 million pretax benefit from product remediation insurance proceeds.
Q3 2020 Outlook – Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly higher than second quarter. To date, third quarter benchmark pricing for lumber and oriented strand board is significantly higher than the second quarter average. The company also anticipates increased sales volumes across most product lines.
UNALLOCATED
|
FINANCIAL HIGHLIGHTS |
2020 |
2020 |
||||
|
(millions) |
Q1 |
Q2 |
Change |
|||
|
Net charge to pretax earnings |
($43) |
($18) |
$25 |
|||
|
Pretax benefit for special items |
($12) |
$— |
$12 |
|||
|
Net charge to pretax earnings before special items |
($55) |
($18) |
$37 |
|||
|
Adjusted EBITDA |
($45) |
($9) |
$36 |
Q2 2020 Performance – Second quarter results include a benefit from elimination of intersegment profit in inventory and LIFO compared with a charge in the first quarter. The second quarter benefit was due to lower end of quarter log and lumber inventory levels.
INCOME TAXES
|
FINANCIAL HIGHLIGHTS |
2020 |
2020 |
||||
|
(millions) |
Q1 |
Q2 |
Change |
|||
|
Income tax (expense) benefit |
$3 |
($60) |
($63) |
|||
|
Income tax (expense) benefit attributable to special items |
$— |
($2) |
($2) |
|||
|
Income tax (expense) benefit before special items |
$3 |
($58) |
($61) |
Q2 2020 Performance – The provision for income taxes was a charge for second quarter, compared with a benefit for first quarter, as the company adjusted its estimated annual effective tax rate to reflect higher average sales realizations for lumber and oriented strand board.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 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 in North America. Our company is a real estate investment trust. In 2019, we generated $6.6 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. 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 July 31, 2020 to discuss second quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 31, 2020.
To join the conference call from within North America, dial 855-223-0757 (access code: 3297624) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 3297624). Replays will be available for two weeks at 855-859-2056 (access code: 3297624) from within North America and at 404-537-3406 (access code: 3297624) 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, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log sale realizations and sales volumes; log export sales volumes; fee harvest volumes; road, forestry and logging and hauling costs; and sales volumes across all of our wood products lines. Forward-looking statements are generally identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar words and expressions. Forward-looking statements are based on our current expectations and assumptions. 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, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
- the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
- market demand for the company's 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 Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
- restrictions on international trade and tariffs imposed on imports or exports;
- the availability and cost of shipping and transportation;
- economic activity in Asia, especially Japan and China;
- performance of our manufacturing operations, including maintenance and capital requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign producers;
- our operational excellence 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;
- raw material availability and prices;
- the effect of weather;
- changes in global or regional climate conditions and governmental response to such changes;
- the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
- energy prices;
- 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 employee retirements and changes in the market price of our common stock on charges for share-based compensation;
- the accuracy of our estimates of costs and expenses related to contingent liabilities;
- changes in accounting principles; and
- other risks and uncertainties identified in our 2019 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.
It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.
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.
RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS
We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) 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 March 31, 2020:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||||||||||||
|
Adjusted EBITDA by Segment: |
||||||||||||||||||||
|
Net earnings |
$ |
150 |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
85 |
|||||||||||||||||||
|
Income taxes |
(3) |
|||||||||||||||||||
|
Net contribution (charge) to earnings |
$ |
105 |
$ |
36 |
$ |
134 |
$ |
(43) |
$ |
232 |
||||||||||
|
Non-operating pension and other postretirement benefit costs |
— |
— |
— |
9 |
9 |
|||||||||||||||
|
Interest income and other |
— |
— |
— |
(1) |
(1) |
|||||||||||||||
|
Operating income (loss) |
105 |
36 |
134 |
(35) |
240 |
|||||||||||||||
|
Depreciation, depletion and amortization |
68 |
3 |
50 |
2 |
123 |
|||||||||||||||
|
Basis of real estate sold |
— |
62 |
— |
— |
62 |
|||||||||||||||
|
Special items included in operating income (loss)(1) |
— |
— |
— |
(12) |
(12) |
|||||||||||||||
|
Adjusted EBITDA |
$ |
173 |
$ |
101 |
$ |
184 |
$ |
(45) |
$ |
413 |
||||||||||
|
(1) |
Operating income (loss) includes a pretax special item consisting of a $12 million noncash legal benefit. |
The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2020:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||||||||||||
|
Adjusted EBITDA by Segment: |
||||||||||||||||||||
|
Net earnings |
$ |
72 |
||||||||||||||||||
|
Interest expense, net of capitalized interest(1) |
103 |
|||||||||||||||||||
|
Income taxes |
60 |
|||||||||||||||||||
|
Net contribution (charge) to earnings |
$ |
75 |
$ |
19 |
$ |
159 |
$ |
(18) |
$ |
235 |
||||||||||
|
Non-operating pension and other postretirement benefit costs |
— |
— |
— |
10 |
10 |
|||||||||||||||
|
Interest income and other |
— |
— |
— |
(2) |
(2) |
|||||||||||||||
|
Operating income (loss) |
75 |
19 |
159 |
(10) |
243 |
|||||||||||||||
|
Depreciation, depletion and amortization |
65 |
4 |
47 |
1 |
117 |
|||||||||||||||
|
Basis of real estate sold |
— |
34 |
— |
— |
34 |
|||||||||||||||
|
Special items included in operating income (loss)(2) |
— |
— |
(8) |
— |
(8) |
|||||||||||||||
|
Adjusted EBITDA |
$ |
140 |
$ |
57 |
$ |
198 |
$ |
(9) |
$ |
386 |
||||||||||
|
(1) |
Interest expense, net of capitalized interest includes a pretax special item consisting of an $11 million net charge related to the early extinguishment of debt. |
|
(2) |
Operating income (loss) includes a pretax special item consisting of an $8 million product remediation insurance recovery. |
The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2019:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||||||||||||
|
Adjusted EBITDA by Segment: |
||||||||||||||||||||
|
Net earnings |
$ |
128 |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
91 |
|||||||||||||||||||
|
Income taxes |
(37) |
|||||||||||||||||||
|
Net contribution (charge) to earnings |
$ |
102 |
$ |
35 |
$ |
81 |
$ |
(36) |
$ |
182 |
||||||||||
|
Non-operating pension and other postretirement benefit costs(1) |
— |
— |
— |
10 |
10 |
|||||||||||||||
|
Interest income and other |
— |
— |
— |
(6) |
(6) |
|||||||||||||||
|
Operating income (loss) |
102 |
35 |
81 |
(32) |
186 |
|||||||||||||||
|
Depreciation, depletion and amortization |
73 |
3 |
47 |
1 |
124 |
|||||||||||||||
|
Basis of real estate sold |
— |
33 |
— |
— |
33 |
|||||||||||||||
|
Adjusted EBITDA |
$ |
175 |
$ |
71 |
$ |
128 |
$ |
(31) |
$ |
343 |
||||||||||
|
(1) |
Non-operating pension and other postretirement benefit costs include a pretax special item consisting of a $6 million benefit from finalizing the noncash settlement charge incurred in first quarter 2019 related to the transfer of pension assets and liabilities through the purchase of a group annuity contract. |
RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS
We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.
The table below reconciles net earnings before special items to net earnings:
|
2020 |
2020 |
2019 |
||||
|
(millions) |
Q1 |
Q2 |
Q2 |
|||
|
Net earnings |
$150 |
$72 |
$128 |
|||
|
Early extinguishment of debt charge |
— |
11 |
— |
|||
|
Legal benefit |
(12) |
— |
— |
|||
|
Pension settlement benefit |
— |
— |
(5) |
|||
|
Product remediation recovery |
— |
(6) |
— |
|||
|
Net earnings before special items |
$138 |
$77 |
$123 |
The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:
|
2020 |
2020 |
2019 |
||||
|
Q1 |
Q2 |
Q2 |
||||
|
Net earnings per diluted share |
$0.20 |
$0.10 |
$0.17 |
|||
|
Early extinguishment of debt charge |
— |
0.02 |
— |
|||
|
Legal benefit |
(0.02) |
— |
— |
|||
|
Pension settlement benefit |
— |
— |
(0.01) |
|||
|
Product remediation recovery |
— |
(0.01) |
— |
|||
|
Net earnings per diluted share before special items |
$0.18 |
$0.11 |
$0.16 |
|
Exhibit 99.2 |
||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Consolidated Statement of Operations |
||||||||||||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
in millions |
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
|||||||||||||||
|
Net sales |
$ |
1,728 |
$ |
1,631 |
$ |
1,692 |
$ |
3,359 |
$ |
3,335 |
||||||||||
|
Costs of sales |
1,382 |
1,283 |
1,390 |
2,665 |
2,712 |
|||||||||||||||
|
Gross margin |
346 |
348 |
302 |
694 |
623 |
|||||||||||||||
|
Selling expenses |
22 |
18 |
21 |
40 |
42 |
|||||||||||||||
|
General and administrative expenses |
74 |
84 |
80 |
158 |
169 |
|||||||||||||||
|
Other operating costs (income), net |
10 |
3 |
15 |
13 |
52 |
|||||||||||||||
|
Operating income |
240 |
243 |
186 |
483 |
360 |
|||||||||||||||
|
Non-operating pension and other postretirement benefit costs |
(9) |
(10) |
(10) |
(19) |
(480) |
|||||||||||||||
|
Interest income and other |
1 |
2 |
6 |
3 |
16 |
|||||||||||||||
|
Interest expense, net of capitalized interest |
(85) |
(103) |
(91) |
(188) |
(198) |
|||||||||||||||
|
Earnings (loss) before income taxes |
147 |
132 |
91 |
279 |
(302) |
|||||||||||||||
|
Income taxes |
3 |
(60) |
37 |
(57) |
141 |
|||||||||||||||
|
Net earnings (loss) |
$ |
150 |
$ |
72 |
$ |
128 |
$ |
222 |
$ |
(161) |
||||||||||
|
Per Share Information |
||||||||||||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
||||||||||||||||
|
Earnings (loss) per share, basic and diluted |
$ |
0.20 |
$ |
0.10 |
$ |
0.17 |
$ |
0.30 |
$ |
(0.22) |
||||||||||
|
Dividends paid per common share |
$ |
0.34 |
$ |
— |
$ |
0.34 |
$ |
0.34 |
$ |
0.68 |
||||||||||
|
Weighted average shares outstanding (in thousands): |
||||||||||||||||||||
|
Basic |
746,534 |
746,896 |
745,486 |
746,715 |
746,041 |
|||||||||||||||
|
Diluted |
747,155 |
746,984 |
746,232 |
747,070 |
746,041 |
|||||||||||||||
|
Common shares outstanding at end of period (in thousands) |
746,206 |
746,251 |
744,905 |
746,251 |
744,905 |
|||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) |
||||||||||||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
in millions |
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
|||||||||||||||
|
Net earnings (loss) |
$ |
150 |
$ |
72 |
$ |
128 |
$ |
222 |
$ |
(161) |
||||||||||
|
Non-operating pension and other postretirement benefit costs |
9 |
10 |
10 |
19 |
480 |
|||||||||||||||
|
Interest income and other |
(1) |
(2) |
(6) |
(3) |
(16) |
|||||||||||||||
|
Interest expense, net of capitalized interest |
85 |
103 |
91 |
188 |
198 |
|||||||||||||||
|
Income taxes |
(3) |
60 |
(37) |
57 |
(141) |
|||||||||||||||
|
Operating income |
240 |
243 |
186 |
483 |
360 |
|||||||||||||||
|
Depreciation, depletion and amortization |
123 |
117 |
124 |
240 |
247 |
|||||||||||||||
|
Basis of real estate sold |
62 |
34 |
33 |
96 |
81 |
|||||||||||||||
|
Special items included in operating income |
(12) |
(8) |
— |
(20) |
20 |
|||||||||||||||
|
Adjusted EBITDA(1) |
$ |
413 |
$ |
386 |
$ |
343 |
$ |
799 |
$ |
708 |
||||||||||
|
(1) |
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 and special items. 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. |
|
Total Company Statistics |
||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Special Items Included in Net Earnings (Income Tax Affected) |
||||||||||||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
in millions |
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
|||||||||||||||
|
Net earnings (loss) |
$ |
150 |
$ |
72 |
$ |
128 |
$ |
222 |
$ |
(161) |
||||||||||
|
Early extinguishment of debt charges(1) |
— |
11 |
— |
11 |
9 |
|||||||||||||||
|
Legal charge (benefit) |
(12) |
— |
— |
(12) |
15 |
|||||||||||||||
|
Pension settlement charges |
— |
— |
(5) |
— |
340 |
|||||||||||||||
|
Product remediation recovery |
— |
(6) |
— |
(6) |
— |
|||||||||||||||
|
Net earnings before special items(2) |
$ |
138 |
$ |
77 |
$ |
123 |
$ |
215 |
$ |
203 |
||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
||||||||||||||||
|
Net earnings (loss) per diluted share |
$ |
0.20 |
$ |
0.10 |
$ |
0.17 |
$ |
0.30 |
$ |
(0.22) |
||||||||||
|
Early extinguishment of debt charges(1) |
— |
0.02 |
— |
0.02 |
0.01 |
|||||||||||||||
|
Legal charge (benefit) |
(0.02) |
— |
— |
(0.02) |
0.02 |
|||||||||||||||
|
Pension settlement charges |
— |
— |
(0.01) |
— |
0.46 |
|||||||||||||||
|
Product remediation recovery |
— |
(0.01) |
— |
(0.01) |
— |
|||||||||||||||
|
Net earnings per diluted share before special items(2) |
$ |
0.18 |
$ |
0.11 |
$ |
0.16 |
$ |
0.29 |
$ |
0.27 |
||||||||||
|
(1) |
We recorded pretax charges of $12 million ($9 million after-tax) and $11 million ($11 million after-tax) related to the early extinguishment of debt in first quarter 2019 and second quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations. |
|
(2) |
Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. |
|
Selected Total Company Items |
||||||||||||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
in millions |
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
|||||||||||||||
|
Pension and postretirement costs: |
||||||||||||||||||||
|
Pension and postretirement service costs |
$ |
10 |
$ |
8 |
$ |
8 |
$ |
18 |
$ |
16 |
||||||||||
|
Non-operating pension and other postretirement benefit costs |
9 |
10 |
10 |
19 |
480 |
|||||||||||||||
|
Total company pension and postretirement costs |
$ |
19 |
$ |
18 |
$ |
18 |
$ |
37 |
$ |
496 |
||||||||||
|
Weyerhaeuser Company |
||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||
|
Preliminary results (unaudited) |
||||||||||||
|
Consolidated Balance Sheet |
||||||||||||
|
in millions |
March 31, 2020 |
June 30, 2020 |
December 31, 2019 |
|||||||||
|
ASSETS |
||||||||||||
|
Current assets: |
||||||||||||
|
Cash and cash equivalents |
$ |
1,458 |
$ |
643 |
$ |
139 |
||||||
|
Receivables, net |
390 |
420 |
309 |
|||||||||
|
Receivables for taxes |
24 |
48 |
98 |
|||||||||
|
Inventories |
480 |
409 |
416 |
|||||||||
|
Assets held for sale |
— |
— |
140 |
|||||||||
|
Prepaid expenses and other current assets |
141 |
131 |
147 |
|||||||||
|
Current restricted financial investments held by variable interest entities |
— |
— |
362 |
|||||||||
|
Total current assets |
2,493 |
1,651 |
1,611 |
|||||||||
|
Property and equipment, net |
1,911 |
1,958 |
1,969 |
|||||||||
|
Construction in progress |
153 |
110 |
130 |
|||||||||
|
Timber and timberlands at cost, less depletion |
11,847 |
11,780 |
11,929 |
|||||||||
|
Minerals and mineral rights, less depletion |
278 |
275 |
281 |
|||||||||
|
Deferred tax assets |
147 |
65 |
72 |
|||||||||
|
Other assets |
399 |
415 |
414 |
|||||||||
|
Total assets |
$ |
17,228 |
$ |
16,254 |
$ |
16,406 |
||||||
|
LIABILITIES AND EQUITY |
||||||||||||
|
Current liabilities: |
||||||||||||
|
Current maturities of long-term debt |
$ |
577 |
$ |
— |
$ |
— |
||||||
|
Borrowings on line of credit |
550 |
— |
230 |
|||||||||
|
Accounts payable |
241 |
199 |
246 |
|||||||||
|
Accrued liabilities |
448 |
525 |
530 |
|||||||||
|
Total current liabilities |
1,816 |
724 |
1,006 |
|||||||||
|
Long-term debt, net |
6,299 |
6,299 |
6,147 |
|||||||||
|
Deferred tax liabilities |
10 |
18 |
6 |
|||||||||
|
Deferred pension and other postretirement benefits |
669 |
652 |
693 |
|||||||||
|
Other liabilities |
352 |
359 |
377 |
|||||||||
|
Total liabilities |
9,146 |
8,052 |
8,229 |
|||||||||
|
Total equity |
8,082 |
8,202 |
8,177 |
|||||||||
|
Total liabilities and equity |
$ |
17,228 |
$ |
16,254 |
$ |
16,406 |
||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Consolidated Statement of Cash Flows |
||||||||||||||||||||
|
Q1 |
Q2 |
Year-to-Date |
||||||||||||||||||
|
in millions |
March 31, 2020 |
June 30, 2020 |
June 30, 2019 |
June 30, 2020 |
June 30, 2019 |
|||||||||||||||
|
Cash flows from operations: |
||||||||||||||||||||
|
Net earnings (loss) |
$ |
150 |
$ |
72 |
$ |
128 |
$ |
222 |
$ |
(161) |
||||||||||
|
Noncash charges (credits) to earnings (loss): |
||||||||||||||||||||
|
Depreciation, depletion and amortization |
123 |
117 |
124 |
240 |
247 |
|||||||||||||||
|
Basis of real estate sold |
62 |
34 |
33 |
96 |
81 |
|||||||||||||||
|
Deferred income taxes, net |
(82) |
80 |
(43) |
(2) |
(166) |
|||||||||||||||
|
Pension and other postretirement benefits |
19 |
18 |
18 |
37 |
496 |
|||||||||||||||
|
Share-based compensation expense |
7 |
8 |
7 |
15 |
16 |
|||||||||||||||
|
Change in: |
||||||||||||||||||||
|
Receivables, less allowances |
(82) |
(30) |
(10) |
(112) |
(87) |
|||||||||||||||
|
Receivables and payables for taxes |
79 |
(18) |
6 |
61 |
(25) |
|||||||||||||||
|
Inventories |
(72) |
74 |
28 |
2 |
(32) |
|||||||||||||||
|
Prepaid expenses and other current assets |
(2) |
7 |
8 |
5 |
3 |
|||||||||||||||
|
Accounts payable and accrued liabilities |
(91) |
30 |
127 |
(61) |
45 |
|||||||||||||||
|
Pension and postretirement benefit contributions and payments |
(10) |
(6) |
(13) |
(16) |
(27) |
|||||||||||||||
|
Other |
(15) |
5 |
(17) |
(10) |
(8) |
|||||||||||||||
|
Net cash from operations |
$ |
86 |
$ |
391 |
$ |
396 |
$ |
477 |
$ |
382 |
||||||||||
|
Cash flows from investing activities: |
||||||||||||||||||||
|
Capital expenditures for property and equipment |
$ |
(47) |
$ |
(55) |
$ |
(71) |
$ |
(102) |
$ |
(112) |
||||||||||
|
Capital expenditures for timberlands reforestation |
(21) |
(11) |
(13) |
(32) |
(31) |
|||||||||||||||
|
Proceeds from note receivable held by variable interest entities |
362 |
— |
— |
362 |
253 |
|||||||||||||||
|
Proceeds from sale of nonstrategic timberlands |
145 |
— |
— |
145 |
— |
|||||||||||||||
|
Other |
2 |
1 |
1 |
3 |
19 |
|||||||||||||||
|
Net cash from investing activities |
$ |
441 |
$ |
(65) |
$ |
(83) |
$ |
376 |
$ |
129 |
||||||||||
|
Cash flows from financing activities: |
||||||||||||||||||||
|
Cash dividends on common shares |
$ |
(254) |
$ |
— |
$ |
(253) |
$ |
(254) |
$ |
(507) |
||||||||||
|
Net proceeds from issuance of long-term debt |
732 |
— |
— |
732 |
739 |
|||||||||||||||
|
Payments of long-term debt |
— |
(588) |
— |
(588) |
(512) |
|||||||||||||||
|
Proceeds from borrowings on line of credit |
550 |
— |
140 |
550 |
385 |
|||||||||||||||
|
Payments on line of credit |
(230) |
(550) |
(245) |
(780) |
(670) |
|||||||||||||||
|
Proceeds from exercise of stock options |
6 |
— |
2 |
6 |
4 |
|||||||||||||||
|
Repurchases of common shares |
— |
— |
— |
— |
(60) |
|||||||||||||||
|
Other |
(12) |
(3) |
(4) |
(15) |
(12) |
|||||||||||||||
|
Net cash from financing activities |
$ |
792 |
$ |
(1,141) |
$ |
(360) |
$ |
(349) |
$ |
(633) |
||||||||||
|
Net change in cash and cash equivalents |
$ |
1,319 |
$ |
(815) |
$ |
(47) |
$ |
504 |
$ |
(122) |
||||||||||
|
Cash and cash equivalents at beginning of period |
139 |
1,458 |
259 |
139 |
334 |
|||||||||||||||
|
Cash and cash equivalents at end of period |
$ |
1,458 |
$ |
643 |
$ |
212 |
$ |
643 |
$ |
212 |
||||||||||
|
Cash paid (received) during the period for: |
||||||||||||||||||||
|
Interest, net of amounts capitalized |
$ |
108 |
$ |
70 |
$ |
60 |
$ |
178 |
$ |
187 |
||||||||||
|
Income taxes, net of refunds |
$ |
— |
$ |
1 |
$ |
1 |
$ |
1 |
$ |
51 |
||||||||||
|
Timberlands Segment |
||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Segment Statement of Operations |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Sales to unaffiliated customers |
$ |
381 |
$ |
359 |
$ |
401 |
$ |
740 |
$ |
832 |
||||||||||
|
Intersegment sales |
122 |
121 |
131 |
243 |
256 |
|||||||||||||||
|
Total net sales |
503 |
480 |
532 |
983 |
1,088 |
|||||||||||||||
|
Costs of sales |
375 |
383 |
405 |
758 |
818 |
|||||||||||||||
|
Gross margin |
128 |
97 |
127 |
225 |
270 |
|||||||||||||||
|
Selling expenses |
— |
1 |
— |
1 |
1 |
|||||||||||||||
|
General and administrative expenses |
24 |
22 |
25 |
46 |
47 |
|||||||||||||||
|
Other operating income, net |
(1) |
(1) |
— |
(2) |
— |
|||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
105 |
$ |
75 |
$ |
102 |
$ |
180 |
$ |
222 |
||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Operating income |
$ |
105 |
$ |
75 |
$ |
102 |
$ |
180 |
$ |
222 |
||||||||||
|
Depreciation, depletion and amortization |
68 |
65 |
73 |
133 |
146 |
|||||||||||||||
|
Adjusted EBITDA(1) |
$ |
173 |
$ |
140 |
$ |
175 |
$ |
313 |
$ |
368 |
||||||||||
|
(1) |
See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Selected Segment Items |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Total decrease (increase) in working capital(2) |
$ |
(3) |
$ |
(2) |
$ |
46 |
$ |
(5) |
$ |
22 |
||||||||||
|
Cash spent for capital expenditures |
$ |
(30) |
$ |
(21) |
$ |
(25) |
$ |
(51) |
$ |
(51) |
||||||||||
|
(2) |
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(3) |
||||||||||||||||||||||
|
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
||||||||||||||||||
|
Third Party |
Delivered logs: |
|||||||||||||||||||||
|
Net Sales |
West |
$ |
177 |
$ |
179 |
$ |
194 |
$ |
356 |
$ |
399 |
|||||||||||
|
(millions) |
South |
150 |
145 |
156 |
295 |
315 |
||||||||||||||||
|
North |
17 |
7 |
17 |
24 |
46 |
|||||||||||||||||
|
Total delivered logs |
344 |
331 |
367 |
675 |
760 |
|||||||||||||||||
|
Stumpage and pay-as-cut timber |
5 |
5 |
10 |
10 |
19 |
|||||||||||||||||
|
Recreational and other lease revenue |
15 |
16 |
15 |
31 |
30 |
|||||||||||||||||
|
Other revenue |
17 |
7 |
9 |
24 |
23 |
|||||||||||||||||
|
Total |
$ |
381 |
$ |
359 |
$ |
401 |
$ |
740 |
$ |
832 |
||||||||||||
|
Delivered Logs |
West |
$ |
104.91 |
$ |
104.90 |
$ |
104.07 |
$ |
104.91 |
$ |
105.52 |
|||||||||||
|
Third Party Sales |
South |
$ |
34.27 |
$ |
33.68 |
$ |
35.45 |
$ |
33.97 |
$ |
35.40 |
|||||||||||
|
Realizations (per ton) |
North |
$ |
60.51 |
$ |
59.82 |
$ |
62.10 |
$ |
60.31 |
$ |
60.52 |
|||||||||||
|
Delivered Logs |
West |
1,684 |
1,714 |
1,864 |
3,398 |
3,784 |
||||||||||||||||
|
Third Party Sales |
South |
4,365 |
4,307 |
4,400 |
8,672 |
8,899 |
||||||||||||||||
|
Volumes (tons, thousands) |
North |
284 |
113 |
263 |
397 |
757 |
||||||||||||||||
|
Fee Harvest Volumes |
West |
2,310 |
2,236 |
2,455 |
4,546 |
4,840 |
||||||||||||||||
|
(tons, thousands) |
South |
6,130 |
5,914 |
6,367 |
12,044 |
12,859 |
||||||||||||||||
|
North |
386 |
194 |
378 |
580 |
1,005 |
|||||||||||||||||
|
(3) |
Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. |
|
Real Estate, Energy & Natural Resources Segment |
||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Segment Statement of Operations |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Net sales |
$ |
112 |
$ |
65 |
$ |
81 |
$ |
177 |
$ |
199 |
||||||||||
|
Costs of sales |
70 |
40 |
39 |
110 |
95 |
|||||||||||||||
|
Gross margin |
42 |
25 |
42 |
67 |
104 |
|||||||||||||||
|
General and administrative expenses |
6 |
6 |
7 |
12 |
14 |
|||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
36 |
$ |
19 |
$ |
35 |
$ |
55 |
$ |
90 |
||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Operating income |
$ |
36 |
$ |
19 |
$ |
35 |
$ |
55 |
$ |
90 |
||||||||||
|
Depreciation, depletion and amortization |
3 |
4 |
3 |
7 |
6 |
|||||||||||||||
|
Basis of real estate sold |
62 |
34 |
33 |
96 |
81 |
|||||||||||||||
|
Adjusted EBITDA(1) |
$ |
101 |
$ |
57 |
$ |
71 |
$ |
158 |
$ |
177 |
||||||||||
|
(1) |
See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Selected Segment Items |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Cash spent for capital expenditures |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||||||
|
Segment Statistics |
|||||||||||||||||||||
|
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||||
|
Net Sales |
Real Estate |
$ |
95 |
$ |
48 |
$ |
59 |
$ |
143 |
$ |
155 |
||||||||||
|
(millions) |
Energy and Natural Resources |
17 |
17 |
22 |
34 |
44 |
|||||||||||||||
|
Total |
$ |
112 |
$ |
65 |
$ |
81 |
$ |
177 |
$ |
199 |
|||||||||||
|
Acres Sold |
Real Estate |
44,974 |
31,337 |
47,031 |
76,310 |
85,865 |
|||||||||||||||
|
Price per Acre |
Real Estate |
$ |
1,992 |
$ |
1,501 |
$ |
1,063 |
$ |
1,790 |
$ |
1,678 |
||||||||||
|
Basis as a Percent of Real Estate Net Sales |
Real Estate |
65 |
% |
71 |
% |
56 |
% |
67 |
% |
52 |
% |
||||||||||
|
Wood Products Segment |
||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Segment Statement of Operations |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Net sales |
$ |
1,235 |
$ |
1,207 |
$ |
1,210 |
$ |
2,442 |
$ |
2,304 |
||||||||||
|
Costs of sales |
1,040 |
997 |
1,070 |
2,037 |
2,037 |
|||||||||||||||
|
Gross margin |
195 |
210 |
140 |
405 |
267 |
|||||||||||||||
|
Selling expenses |
21 |
18 |
20 |
39 |
39 |
|||||||||||||||
|
General and administrative expenses |
36 |
33 |
34 |
69 |
69 |
|||||||||||||||
|
Other operating costs, net |
4 |
— |
5 |
4 |
9 |
|||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
134 |
$ |
159 |
$ |
81 |
$ |
293 |
$ |
150 |
||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Operating income |
$ |
134 |
$ |
159 |
$ |
81 |
$ |
293 |
$ |
150 |
||||||||||
|
Depreciation, depletion and amortization |
50 |
47 |
47 |
97 |
93 |
|||||||||||||||
|
Special items |
— |
(8) |
— |
(8) |
— |
|||||||||||||||
|
Adjusted EBITDA(1) |
$ |
184 |
$ |
198 |
$ |
128 |
$ |
382 |
$ |
243 |
||||||||||
|
(1) |
See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Segment Special Items Included in Net Contribution to Earnings (Pretax) |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Product remediation recovery |
$ |
— |
$ |
8 |
$ |
— |
$ |
8 |
$ |
— |
||||||||||
|
Selected Segment Items |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Total decrease (increase) in working capital(2) |
$ |
(186) |
$ |
56 |
$ |
75 |
$ |
(130) |
$ |
(80) |
||||||||||
|
Cash spent for capital expenditures |
$ |
(38) |
$ |
(45) |
$ |
(53) |
$ |
(83) |
$ |
(83) |
||||||||||
|
(2) |
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 |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
||||||||||||||||
|
Structural Lumber |
Third party net sales |
$ |
508 |
$ |
538 |
$ |
495 |
$ |
1,046 |
$ |
939 |
||||||||||
|
(volumes presented |
Third party sales realizations |
$ |
416 |
$ |
438 |
$ |
388 |
$ |
427 |
$ |
390 |
||||||||||
|
in board feet) |
Third party sales volumes(3) |
1,222 |
1,225 |
1,274 |
2,447 |
2,407 |
|||||||||||||||
|
Production volumes |
1,209 |
1,108 |
1,193 |
2,317 |
2,338 |
||||||||||||||||
|
Oriented Strand |
Third party net sales |
$ |
190 |
$ |
179 |
$ |
156 |
$ |
369 |
$ |
316 |
||||||||||
|
Board |
Third party sales realizations |
$ |
246 |
$ |
240 |
$ |
213 |
$ |
243 |
$ |
218 |
||||||||||
|
(volumes presented |
Third party sales volumes(3) |
770 |
747 |
733 |
1,517 |
1,450 |
|||||||||||||||
|
in square feet 3/8") |
Production volumes |
777 |
742 |
736 |
1,519 |
1,465 |
|||||||||||||||
|
Engineered Solid |
Third party net sales |
$ |
127 |
$ |
111 |
$ |
134 |
$ |
238 |
$ |
250 |
||||||||||
|
Section |
Third party sales realizations |
$ |
2,149 |
$ |
2,151 |
$ |
2,214 |
$ |
2,150 |
$ |
2,216 |
||||||||||
|
(volumes presented |
Third party sales volumes(3) |
5.9 |
5.2 |
6.1 |
11.1 |
11.3 |
|||||||||||||||
|
in cubic feet) |
Production volumes |
6.1 |
5.3 |
6.0 |
11.4 |
11.9 |
|||||||||||||||
|
Engineered |
Third party net sales |
$ |
78 |
$ |
70 |
$ |
86 |
$ |
148 |
$ |
156 |
||||||||||
|
I-joists |
Third party sales realizations |
$ |
1,667 |
$ |
1,645 |
$ |
1,662 |
$ |
1,656 |
$ |
1,683 |
||||||||||
|
(volumes presented |
Third party sales volumes(3) |
47 |
42 |
52 |
89 |
93 |
|||||||||||||||
|
in lineal feet) |
Production volumes |
47 |
38 |
47 |
85 |
91 |
|||||||||||||||
|
Softwood Plywood |
Third party net sales |
$ |
39 |
$ |
34 |
$ |
44 |
$ |
73 |
$ |
88 |
||||||||||
|
(volumes presented |
Third party sales realizations |
$ |
348 |
$ |
356 |
$ |
380 |
$ |
352 |
$ |
382 |
||||||||||
|
in square feet 3/8") |
Third party sales volumes(3) |
113 |
95 |
115 |
208 |
230 |
|||||||||||||||
|
Production volumes |
97 |
76 |
104 |
173 |
202 |
||||||||||||||||
|
Medium Density |
Third party net sales |
$ |
44 |
$ |
33 |
$ |
45 |
$ |
77 |
$ |
83 |
||||||||||
|
Fiberboard |
Third party sales realizations |
$ |
841 |
$ |
825 |
$ |
833 |
$ |
834 |
$ |
839 |
||||||||||
|
(volumes presented |
Third party sales volumes(3) |
52 |
40 |
55 |
92 |
99 |
|||||||||||||||
|
in square feet 3/4") |
Production volumes |
56 |
35 |
61 |
91 |
106 |
|||||||||||||||
|
(3) |
Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
|
Unallocated Items |
||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||
|
Q2.2020 Analyst Package |
||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||
|
Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations. |
||||||||||||||||||||
|
Net Charge to Earnings |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Unallocated corporate function and variable compensation expense |
$ |
(19) |
$ |
(23) |
$ |
(12) |
$ |
(42) |
$ |
(31) |
||||||||||
|
Liability classified share-based compensation |
10 |
(4) |
— |
6 |
(4) |
|||||||||||||||
|
Foreign exchange gain (loss) |
(8) |
3 |
2 |
(5) |
(1) |
|||||||||||||||
|
Elimination of intersegment profit in inventory and LIFO |
(13) |
18 |
(5) |
5 |
(10) |
|||||||||||||||
|
Other, net |
(5) |
(4) |
(17) |
(9) |
(56) |
|||||||||||||||
|
Operating income (loss) |
(35) |
(10) |
(32) |
(45) |
(102) |
|||||||||||||||
|
Non-operating pension and other postretirement benefit costs |
(9) |
(10) |
(10) |
(19) |
(480) |
|||||||||||||||
|
Interest income and other |
1 |
2 |
6 |
3 |
16 |
|||||||||||||||
|
Net charge to earnings |
$ |
(43) |
$ |
(18) |
$ |
(36) |
$ |
(61) |
$ |
(566) |
||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Operating income (loss) |
$ |
(35) |
$ |
(10) |
$ |
(32) |
$ |
(45) |
$ |
(102) |
||||||||||
|
Depreciation, depletion and amortization |
2 |
1 |
1 |
3 |
2 |
|||||||||||||||
|
Special items |
(12) |
— |
— |
(12) |
20 |
|||||||||||||||
|
Adjusted EBITDA(1) |
$ |
(45) |
$ |
(9) |
$ |
(31) |
$ |
(54) |
$ |
(80) |
||||||||||
|
(1) |
See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Unallocated Special Items Included in Net Charge to Earnings (Pretax) |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Legal benefit (charge) |
12 |
— |
— |
12 |
(20) |
|||||||||||||||
|
Special items included in operating income (loss) |
12 |
— |
— |
12 |
(20) |
|||||||||||||||
|
Pension settlement charges |
— |
— |
6 |
— |
(449) |
|||||||||||||||
|
Special items included in net charge to earnings |
$ |
12 |
$ |
— |
$ |
6 |
$ |
12 |
$ |
(469) |
||||||||||
|
Unallocated Selected Items |
||||||||||||||||||||
|
in millions |
Q1.2020 |
Q2.2020 |
Q2.2019 |
YTD.2020 |
YTD.2019 |
|||||||||||||||
|
Cash spent for capital expenditures |
$ |
— |
$ |
— |
$ |
(6) |
$ |
— |
$ |
(9) |
||||||||||
For more information contact:
Analysts - Beth Baum, 206-539-3907
Media - Nancy Thompson, 919-861-0342
SOURCE Weyerhaeuser Company
https://investor.weyerhaeuser.com/2020-07-30-Weyerhaeuser-reports-second-quarter-results