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Weyerhaeuser Reports Fourth Quarter, Full Year Results

PR Newswire
FEDERAL WAY, Wash.
Feb 2, 2012

Weyerhaeuser Reports Fourth Quarter, Full Year Results

PR Newswire

 

FEDERAL WAY, Wash., Feb. 3, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $65 million for the fourth quarter, or 12 cents per diluted share, on net sales from continuing operations of $1.6 billion. This compares with net earnings of $171 million, or 32 cents per diluted share, on net sales from continuing operations of $1.5 billion for the same period last year.

(Logo:  http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)

Earnings for the fourth quarter of 2011 include net after-tax charges of $12 million for restructuring and asset impairments. Excluding these items, the company reported net earnings of $77 million, or 14 cents per diluted share. This compares with net earnings before special items of $52 million in the fourth quarter of 2010.

For the full year 2011, Weyerhaeuser reported net earnings of $331 million, or $0.61 per diluted share, on net sales from continuing operations of $6.2 billion. This compares with net earnings of $1.281 billion on net sales from continuing operations of $6.0 billion for the full year 2010. Earnings for the full year 2010 include $1.064 billion from income tax adjustments related to Weyerhaeuser's conversion to a Real Estate Investment Trust (REIT).

"In 2011 we took full advantage of opportunities to improve our performance in a weaker than expected US housing market," said Dan Fulton, president and chief executive officer. "In Timberlands, we used our long term competitive strength in the Asian export markets to capitalize on emerging Chinese demand. Cellulose Fibers leveraged strong customer relationships and excellent operational performance to deliver a second consecutive year of record financial results. Our Real Estate business maintained profitability despite challenging market conditions, and Wood Products generated improved results. Through the sale of our hardwoods and Westwood Shipping Lines businesses we sharpened our strategic direction, and we remain focused on improving performance to generate superior sustainable returns for our shareholders in 2012."

 

 

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2011

2010

(millions, except per share data)                             

3Q

4Q

4Q

Net sales

 

 

 

From continuing operations

$1,569

$1,615

$1,516

   From discontinued operations (1)

$83

$0

$148

Total net sales

$1,652

$1,615

$1,664

Net earnings

 

 

 

From continuing operations

$133

$65

$171

   From discontinued operations (1)

$24

$0

$0

Net earnings

$157

$65

$171

Weighted average shares outstanding, diluted

540

538

538

Earnings per diluted share

 

 

 

From continuing operations

$0.25

$0.12

$0.32

   From discontinued operations (1)

$0.04

$0.00

$0.00

Earnings per diluted share

$0.29

$0.12

$0.32

Net earnings before special items

$66

$77

$52

Earnings per diluted share before special items

$0.12

$0.14

$0.10

Net cash from operations

$117

$147

$225

Net change in cash and cash equivalents

$90

($18)

$99

Cash and cash equivalents at end of period

$971

$953

$1,467

 

TIMBERLANDS

 

FINANCIAL HIGHLIGHTS (millions)                               

3Q 2011

4Q 2011

Change

Net sales

$252

$274

$22

Contribution to pre-tax earnings before special items

$62

$70

$8

Pre-tax gain from special items

$0

$0

$0

GAAP contribution to pre-tax earnings

$62

$70

$8

 

4Q 2011 Performance - The segment's earnings improved $8 million in the fourth quarter compared with the third. Earnings from disposition of non-strategic timberlands increased $17 million to $21 million, compared with $4 million in the third quarter. Average selling prices for Western logs declined due to weaker Chinese export demand. These declines were partially offset by increased log sales volumes and slightly higher selling prices in the South. Fee harvest volumes rose, primarily in the South. Silviculture and road costs were lower, and fuel costs increased.

1Q 2012 Outlook - Excluding earnings from disposition of non-strategic timberlands, Weyerhaeuser expects slightly higher earnings from the Timberlands segment in the first quarter. The company anticipates increased fee harvest volumes in the West and slightly improved average selling prices due to a higher percentage of export logs sold to Japan. Weyerhaeuser also anticipates higher fuel costs and seasonally higher silviculture expenses.

WOOD PRODUCTS

 

FINANCIAL HIGHLIGHTS (millions)                               

3Q 2011

4Q 2011

Change

Net sales

 

 

 

From continuing operations

$603

$542

($61)

From discontinued operations

$27

$0

($27)

Total net sales

$630

$542

($88)

Charge to pre-tax earnings before special items

 

 

 

From continuing operations

($43)

($61)

($18)

From discontinued operations

($4)

$0

$4

Total charge to pre-tax earnings before special items

($47)

($61)

($14)

Pre-tax charge from special items

($46)

($19)

$27

GAAP charge to pre-tax earnings

($93)

($80)

$13

 

4Q 2011 Performance - Results from continuing operations declined $18 million compared with the third quarter. Selling prices and volumes were seasonally lower for most products. The segment reduced operating rates to match weaker market demand, resulting in higher per unit manufacturing costs.

Fourth quarter includes special charges of $19 million for restructuring and asset impairments. Third quarter included special charges of $46 million related to restructuring, asset impairments, and sale of the hardwoods operations. Weyerhaeuser completed the sale of the hardwoods operations in the third quarter.

1Q 2012 Outlook - Excluding special items, Weyerhaeuser anticipates a smaller loss from the Wood Products segment in the first quarter.  The company expects slightly higher selling prices for lumber and oriented strand board and increased sales volumes across all product lines. Unit manufacturing costs should decline due to seasonally improved operating rates.

CELLULOSE FIBERS

 

FINANCIAL HIGHLIGHTS (millions)                              

3Q 2011

4Q 2011

Change

Net sales

$503

$523

$20

Contribution to pre-tax earnings before special items

$135

$134

($1)

Pre-tax gain from special items

$0

$0

$0

GAAP contribution to pre-tax earnings

$135

$134

($1)

 

4Q 2011 Performance - Fourth quarter earnings declined $1 million compared with third quarter.  Average selling prices for pulp declined throughout the fourth quarter. By the end of the quarter, commodity prices for Northern bleached softwood kraft (NBSK) pulp had fallen to levels last seen in the first quarter of 2010. The effect of the price decline was mostly offset by increased sales volumes. There were no annual maintenance outages in the third or fourth quarter.

1Q 2012 Outlook - Weyerhaeuser expects substantially lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates considerably lower average selling prices for pulp and significantly higher maintenance costs due to scheduled annual maintenance outages. Weyerhaeuser expects seasonally higher energy costs and increased fiber and chemical costs.

REAL ESTATE

 

FINANCIAL HIGHLIGHTS (millions)                               

3Q 2011

4Q 2011

Change

Net sales

$211

$276

$65

Contribution to pre-tax earnings before special items

$10

$41

$31

Pre-tax gain from special items

$0

$0

$0

GAAP contribution to pre-tax earnings

$10

$41

$31

 

4Q 2011 Performance - Earnings increased $31 million compared with the third quarter.  Home closings increased 15 percent to 582 single-family homes. Average margins on homes closed improved due to mix. Fourth quarter includes earnings of $19 million from the sale of land and lots. There were no significant earnings from land and lot sales in the third quarter.

1Q 2012 Outlook - Weyerhaeuser anticipates a loss from single-family homebuilding operations in the first quarter. The company expects a seasonal decline in home closing volume and lower average margins due to mix.

CORPORATE AND OTHER

 

FINANCIAL HIGHLIGHTS (millions)                               

3Q 2011

4Q 2011

Change

Charge to pre-tax earnings before special items

 

 

 

From continuing operations

($16)

($22)

($6)

From discontinued operations

($4)

$0

$4

Total charge to pre-tax earnings before special items

($20)

($22)

($2)

Pre-tax gain from special items

$58

$0

($58)

GAAP contribution (charge) to pre-tax earnings

$38

($22)

($60)

 

Corporate and Other results from continuing operations declined $6 million compared with the third quarter, as gains on foreign exchange were more than offset by increased charges for share-based compensation and other items.

Third quarter results included pre-tax gains of $58 million from special items, primarily the sale of Westwood Shipping Lines.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest forest products companies, began operations in 1900. We grow and harvest trees, build homes and make a range of forest products essential to everyday lives. We manage our timberland on a sustainable basis in compliance with internationally recognized forestry standards. At the end of 2011, we employed approximately 12,800 employees in 11 countries. We have customers worldwide and generated $6.2 billion in sales from continuing operations in 2011. Our stock trades on the New York Stock exchange under the symbol WY. Additional information about us is available at http://www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Feb. 3 to discuss fourth quarter results.

To access the conference call from within North America, dial 877-296-9413 (access code – 41397589) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 41397589). Replays will be available for one week at (800) 585-8367 (access code – 41397589) from within North America and at 404-537-3406 (access code – 41397589) from outside North America.

The call is being webcast through Weyerhaeuser's Internet site at http://investor.weyerhaeuser.com and is accessible by selecting the "Q4 2011 Weyerhaeuser Co. Earnings Conference Call" link.

The webcast is available through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com, Thomson 's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson 's password-protected site, StreetEvents (http://www.streetevents.com).

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. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions.  Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements.  There is no guarantee that any of the events anticipated by these forward-looking statements will occur.  If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition.  The company will not update these forward-looking statements after the date of this news release.

Some forward-looking statements discuss the company's plans, strategies and intentions.  They use words such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans."  In addition, these words may use the positive or negative or other variations of those terms.

This release contains forward-looking statements regarding the company's expectations for the first quarter of 2012, including increased fee harvest volumes in the West, slightly improved average selling prices due to a higher percentage of export logs sold to Japan, flat fee harvest volume and prices in the South, higher fuel costs across all geographies, higher silviculture expenses in the South, and slightly higher earnings in the Timberlands segment excluding earnings from disposition of non-strategic timberlands; increased sales and slightly higher selling prices for lumber, higher sales volumes and over five percent increase in selling prices for oriented strand board, increased sales volumes and flat prices for engineered wood products, higher log costs in the South and Canada and lower log costs in the West, higher operating rates across all product lines, and a smaller loss from continuing operations in the Wood Products segment excluding special items; considerably lower average selling prices for pulp and slightly lower shipment volumes, significantly higher maintenance costs and lower production due to scheduled annual maintenance outages, higher energy and chemical costs, and substantially lower earnings in the Cellulose Fiber segment; seasonally lower home closing volume, lower average selling prices and margins due to mix, and a loss from single-family homebuilding operations in the Real Estate segment.

Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:

  • the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar;
  • market demand for the company's products, which is related to the strength of the various U.S. business segments and economic conditions;
  • performance of the company's manufacturing operations, including maintenance requirements;
  • the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
  • the level of competition from domestic and foreign producers;
  • raw material prices;
  • energy prices;
  • transportation costs;
  • the effect of design value changes on demand for the company's Southern yellow pine lumber
  • the effect of forestry, land use, environmental and other governmental regulations;
  • federal tax policies;
  • legal proceedings;
  • the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • changes in accounting principles;
  • performance of pension fund investments and related derivatives; and
  • other factors described under "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q.

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China.  It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar and the relative value of the euro to the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

For more information contact:
Kathryn McAuley, 253-924-2058

Exhibit 99.2

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Operations

 

 

 

 in millions

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-date

 

 

Mar 31,
2011

 

Jun 30,
2011

 

Sep 30,
2011

 

Dec 31,
2011

 

Dec 31,
2010

 

Dec 31,
2011

 

Dec 31,
2010

 

 

Net sales and revenues

$

1,422

 

 

$

1,610

 

 

$

1,569

 

 

$

1,615

 

 

$

1,516

 

 

$

6,216

 

 

$

5,954

 

 

Cost of products sold

1,177

 

 

1,343

 

 

1,283

 

 

1,317

 

 

1,222

 

 

5,120

 

 

4,831

 

 

Gross margin

245

 

 

267

 

 

286

 

 

298

 

 

294

 

 

1,096

 

 

1,123

 

 

Selling, general and administrative expenses

172

 

 

145

 

 

135

 

 

149

 

 

171

 

 

601

 

 

650

 

 

Research and development expenses

7

 

 

7

 

 

7

 

 

9

 

 

10

 

 

30

 

 

34

 

 

Charges for restructuring, closures and impairments

4

 

 

7

 

 

41

 

 

31

 

 

126

 

 

83

 

 

148

 

 

Other operating costs (income), net

(174)

 

 

(19)

 

 

3

 

 

(22)

 

 

(67)

 

 

(212)

 

 

(163)

 

 

Operating income

236

 

 

127

 

 

100

 

 

131

 

 

54

 

 

594

 

 

454

 

 

Interest income and other

11

 

 

9

 

 

15

 

 

12

 

 

10

 

 

47

 

 

83

 

 

Impairment of investments and other related charges

 

 

 

 

 

 

 

 

(3)

 

 

 

 

(3)

 

 

Interest expense, net of capitalized interest

(93)

 

 

(117)

 

 

(86)

 

 

(88)

 

 

(96)

 

 

(384)

 

 

(452)

 

 

Earnings (loss) from continuing operations before income taxes

154

 

 

19

 

 

29

 

 

55

 

 

(35)

 

 

257

 

 

82

 

 

Income taxes (1)

(56)

 

 

4

 

 

104

 

 

10

 

 

206

 

 

62

 

 

1,192

 

 

Earnings from continuing operations

98

 

 

23

 

 

133

 

 

65

 

 

171

 

 

319

 

 

1,274

 

 

Earnings (loss) from discontinued operations, net of income taxes

1

 

 

(13)

 

 

24

 

 

 

 

 

 

12

 

 

9

 

 

Net earnings

99

 

 

10

 

 

157

 

 

65

 

 

171

 

 

331

 

 

1,283

 

 

Less: net earnings attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

(2)

 

 

Net earnings attributable to Weyerhaeuser common shareholders

$

99

 

 

$

10

 

 

$

157

 

 

$

65

 

 

$

171

 

 

$

331

 

 

$

1,281

 

 

 

(1) Third quarter includes an $83 million and year-to-date 2011 includes a $76 million tax benefit related to foreign tax credits. Year-to-date 2010 includes $1.043 billion income for the reversal of deferred tax liabilities associated with the conversion to REIT status partially offset by $39 million for tax charges related to the elimination of the ability to claim a tax deduction provided to retirees and reimbursed under the Medicare Part D subsidy beginning in 2013, state tax law and rate changes, unrecognized tax benefits and other adjustments.

 

 

Per Share Information

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-date

 

 

Mar 31,
2011

 

Jun 30,
2011

 

Sep 30,
2011

 

Dec 31,
2011

 

Dec 31,
2010

 

Dec 31,
2011

 

Dec 31,
2010

 

 

Earnings (loss) per share attributable to Weyerhaeuser
common shareholders, basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.18

 

 

$

0.04

 

 

$

0.25

 

 

$

0.12

 

 

$

0.32

 

 

$

0.60

 

 

$

3.97

 

 

Discontinued operations

 

 

(0.02)

 

 

0.04

 

 

 

 

 

 

0.02

 

 

0.03

 

 

Net earnings per share

$

0.18

 

 

$

0.02

 

 

$

0.29

 

 

$

0.12

 

 

$

0.32

 

 

$

0.62

 

 

$

4.00

 

 

Earnings (loss) per share attributable to Weyerhaeuser
common shareholders, diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.18

 

 

$

0.04

 

 

$

0.25

 

 

$

0.12

 

 

$

0.32

 

 

$

0.59

 

 

$

3.96

 

 

Discontinued operations

 

 

(0.02)

 

 

0.04

 

 

 

 

 

 

0.02

 

 

0.03

 

 

Net earnings per share

$

0.18

 

 

$

0.02

 

 

$

0.29

 

 

$

0.12

 

 

$

0.32

 

 

$

0.61

 

 

$

3.99

 

 

Dividends paid per share

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.15

 

 

$

0.05

 

 

$

0.60

 

 

$

26.61

 

 

Weighted average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

537,140

 

 

538,599

 

 

537,969

 

 

536.432

 

 

535,956

 

 

537,534

 

 

319,976

 

 

Diluted

540,476

 

 

541,095

 

 

539,827

 

 

538.119

 

 

538,376

 

 

539,879

 

 

321,096

 

 

Common shares outstanding at end of period
(in thousands)

538,408

 

 

538,640

 

 

537,210

 

 

536,425

 

 

535,976

 

 

536,425

 

 

535,976

 

 

 

 

 

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Consolidated Balance Sheet

 

in millions

March 31,
2011

 

June 30,
2011

 

September 30,
2011

 

December 31,
2011

 

December 31,
2010

 

ASSETS

 

 

 

 

 

 

 

 

 

Forest Products:

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,459

 

 

$

877

 

 

$

969

 

 

$

950

 

 

$

1,466

 

Receivables, less allowances

505

 

 

533

 

 

467

 

 

490

 

 

451

 

Inventories

544

 

 

513

 

 

468

 

 

476

 

 

478

 

Prepaid expenses

85

 

 

115

 

 

81

 

 

68

 

 

81

 

Deferred tax assets

155

 

 

167

 

 

106

 

 

81

 

 

113

 

Total current assets

2,748

 

 

2,205

 

 

2,091

 

 

2,065

 

 

2,589

 

Property and equipment, net

3,151

 

 

3,083

 

 

2,943

 

 

2,901

 

 

3,217

 

Construction in progress

149

 

 

137

 

 

122

 

 

145

 

 

123

 

Timber and timberlands at cost, less depletion charged

4,003

 

 

3,987

 

 

3,997

 

 

3,978

 

 

4,035

 

Investments in and advances to equity affiliates

192

 

 

191

 

 

194

 

 

192

 

 

194

 

Goodwill

40

 

 

40

 

 

40

 

 

40

 

 

40

 

Other assets

424

 

 

511

 

 

558

 

 

444

 

 

363

 

Restricted assets held by special purpose entities

914

 

 

915

 

 

914

 

 

916

 

 

915

 

 

11,621

 

 

11,069

 

 

10,859

 

 

10,681

 

 

11,476

 

Real Estate:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

4

 

 

4

 

 

2

 

 

3

 

 

1

 

Receivables, less allowances

54

 

 

36

 

 

31

 

 

41

 

 

51

 

Real estate in process of development and for sale

515

 

 

535

 

 

549

 

 

555

 

 

517

 

Land being processed for development

978

 

 

988

 

 

989

 

 

936

 

 

974

 

Investments in and advances to equity affiliates

15

 

 

15

 

 

15

 

 

21

 

 

16

 

Deferred tax assets

266

 

 

263

 

 

260

 

 

240

 

 

266

 

Other assets

119

 

 

121

 

 

122

 

 

113

 

 

120

 

Consolidated assets not owned

8

 

 

8

 

 

8

 

 

8

 

 

8

 

 

1,959

 

 

1,970

 

 

1,976

 

 

1,917

 

 

1,953

 

Total assets

$

13,580

 

 

$

13,039

 

 

$

12,835

 

 

$

12,598

 

 

$

13,429

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Forest Products:

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$

 

 

$

 

 

$

11

 

 

$

12

 

 

$

 

Accounts payable

359

 

 

326

 

 

305

 

 

336

 

 

340

 

Accrued liabilities

686

 

 

712

 

 

672

 

 

593

 

 

734

 

Total current liabilities

1,045

 

 

1,038

 

 

988

 

 

941

 

 

1,074

 

Long-term debt

4,710

 

 

4,192

 

 

4,181

 

 

4,181

 

 

4,710

 

Deferred income taxes

485

 

 

533

 

 

440

 

 

93

 

 

366

 

Deferred pension and other postretirement benefits

908

 

 

835

 

 

797

 

 

1,467

 

 

930

 

Other liabilities

405

 

 

412

 

 

335

 

 

408

 

 

393

 

Liabilities (nonrecourse to Weyerhaeuser) held by
special purpose entities

771

 

 

774

 

 

773

 

 

776

 

 

772

 

 

8,324

 

 

7,784

 

 

7,514

 

 

7,866

 

 

8,245

 

Real Estate:

 

 

 

 

 

 

 

 

 

Long-term debt

348

 

 

318

 

 

318

 

 

285

 

 

350

 

Other liabilities

196

 

 

193

 

 

196

 

 

172

 

 

212

 

Consolidated liabilities not owned

8

 

 

8

 

 

8

 

 

8

 

 

8

 

 

552

 

 

519

 

 

522

 

 

465

 

 

570

 

Total liabilities

8,876

 

 

8,303

 

 

8,036

 

 

8,331

 

 

8,815

 

Equity:

 

 

 

 

 

 

 

 

 

Total Weyerhaeuser shareholders' interest

4,702

 

 

4,734

 

 

4,795

 

 

4,263

 

 

4,612

 

Noncontrolling interests

2

 

 

2

 

 

4

 

 

4

 

 

2

 

Total equity

4,704

 

 

4,736

 

 

4,799

 

 

4,267

 

 

4,614

 

Total liabilities and equity

$

13,580

 

 

$

13,039

 

 

$

12,835

 

 

$

12,598

 

 

$

13,429

 

 

 

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Consolidated Statement of Cash Flows

 

 

 

in millions

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-date

 

 

Mar 31,
2011

 

Jun 30,
2011

 

Sep 30,
2011

 

Dec 31,
2011

 

Dec 31,
2010

 

Dec 31,
2011

 

Dec 31,
2010

 

 

Cash flows from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

$

99

 

 

$

10

 

 

$

157

 

 

$

65

 

 

$

171

 

 

$

331

 

 

$

1,283

 

 

Noncash charges (credits) to income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

123

 

 

120

 

 

120

 

 

117

 

 

127

 

 

480

 

 

503

 

 

Deferred income taxes, net

39

 

 

(13)

 

 

(103)

 

 

51

 

 

(317)

 

 

(26)

 

 

(1,257)

 

 

Pension and other postretirement benefits

24

 

 

19

 

 

17

 

 

21

 

 

(2)

 

 

81

 

 

(21)

 

 

Share-based compensation expense

14

 

 

3

 

 

2

 

 

6

 

 

8

 

 

25

 

 

24

 

 

Charges for impairment of assets

1

 

 

2

 

 

34

 

 

19

 

 

112

 

 

56

 

 

117

 

 

Net gains on dispositions of assets and operations

(156)

 

 

(20)

 

 

(51)

 

 

(9)

 

 

(46)

 

 

(236)

 

 

(149)

 

 

Foreign exchange transaction (gains) losses

(7)

 

 

(1)

 

 

19

 

 

(5)

 

 

(4)

 

 

6

 

 

(8)

 

 

Change in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables less allowances

(59)

 

 

(10)

 

 

35

 

 

(19)

 

 

36

 

 

(53)

 

 

(67)

 

 

Receivable for taxes

1

 

 

 

 

6

 

 

(21)

 

 

62

 

 

(14)

 

 

583

 

 

Inventories

(66)

 

 

35

 

 

(9)

 

 

(6)

 

 

2

 

 

(46)

 

 

(30)

 

 

Real estate and land

(2)

 

 

(32)

 

 

(15)

 

 

37

 

 

48

 

 

(12)

 

 

5

 

 

Prepaid expenses

(10)

 

 

(4)

 

 

 

 

17

 

 

14

 

 

3

 

 

6

 

 

Accounts payable and accrued liabilities

(38)

 

 

15

 

 

(51)

 

 

(83)

 

 

(12)

 

 

(157)

 

 

(53)

 

 

Deposits on land positions and other assets

 

 

(4)

 

 

(5)

 

 

5

 

 

3

 

 

(4)

 

 

(10)

 

 

Pension and postretirement contributions

(19)

 

 

(18)

 

 

(27)

 

 

(79)

 

 

(43)

 

 

(143)

 

 

(280)

 

 

Other

(31)

 

 

12

 

 

(12)

 

 

31

 

 

66

 

 

 

 

43

 

 

Net cash from operations

(87)

 

 

114

 

 

117

 

 

147

 

 

225

 

 

291

 

 

689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment

(35)

 

 

(39)

 

 

(62)

 

 

(76)

 

 

(79)

 

 

(212)

 

 

(194)

 

 

Timberlands reforestation

(12)

 

 

(7)

 

 

(4)

 

 

(6)

 

 

(10)

 

 

(29)

 

 

(36)

 

 

Redemption of short-term investments

 

 

 

 

 

 

 

 

2

 

 

 

 

49

 

 

Proceeds from sale of assets and operations

193

 

 

3

 

 

157

 

 

9

 

 

53

 

 

362

 

 

213

 

 

Repayments from pension trust

 

 

 

 

 

 

 

 

 

 

 

 

146

 

 

Other

5

 

 

(10)

 

 

(1)

 

 

7

 

 

(17)

 

 

1

 

 

(14)

 

 

Cash from investing activities

151

 

 

(53)

 

 

90

 

 

(66)

 

 

(51)

 

 

122

 

 

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes, commercial paper borrowings and revolving credit 
facilities, net

 

 

 

 

 

 

 

 

(1)

 

 

 

 

(4)

 

 

Cash dividends

(81)

 

 

(80)

 

 

(81)

 

 

(81)

 

 

(27)

 

 

(323)

 

 

(608)

 

 

Change in book overdrafts

(19)

 

 

1

 

 

(8)

 

 

28

 

 

17

 

 

2

 

 

(10)

 

 

Payments on debt

(2)

 

 

(548)

 

 

 

 

(33)

 

 

(65)

 

 

(583)

 

 

(632)

 

 

Exercises of stock options

34

 

 

3

 

 

 

 

1

 

 

 

 

38

 

 

 

 

Repurchase of common stock

 

 

 

 

(24)

 

 

(13)

 

 

 

 

(37)

 

 

 

 

Other

 

 

(19)

 

 

(40

 

 

(1)

 

 

1

 

 

(24)

 

 

(1)

 

 

Cash from financing activities

(68)

 

 

(643)

 

 

(117)

 

 

(99)

 

 

(75)

 

 

(927)

 

 

(1,255)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

(4)

 

 

(582)

 

 

90

 

 

(18)

 

 

99

 

 

(514)

 

 

(402)

 

 

Cash and cash equivalents at beginning of period

1,467

 

 

1,463

 

 

881

 

 

971

 

 

1,368

 

 

1,467

 

 

1,869

 

 

Cash and cash equivalents at end of period

$

1,463

 

 

$

881

 

 

$

971

 

 

$

953

 

 

$

1,467

 

 

$

953

 

 

$

1,467

 

 

Cash paid (received) during the year for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest, net of amount capitalized

$

156

 

 

$

91

 

 

$

115

 

 

$

58

 

 

$

57

 

 

$

420

 

 

$

463

 

 

Income taxes

$

2

 

 

$

13

 

 

$

6

 

 

$

7

 

 

$

(9)

 

 

$

28

 

 

$

(453)

 

 

 

 

 

Weyerhaeuser Company                          

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Total Company Statistics

 

 

 

 

 

Special Items Included in Net Earnings

 

 

 

in millions

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-date

 

 

Mar 31,
2011

 

Jun 30,
2011

 

Sep 30,
2011

 

Dec 31,
2011

 

Dec 31,
2010

 

Dec 31,
2011

 

Dec 31,
2010

 

 

Net earnings

$

99

 

 

$

10

 

 

$

157

 

 

$

65

 

 

$

171

 

 

$

331

 

 

$

1,281

 

 

Income tax adjustments

 

 

 

 

(83)

 

 

 

 

(1770

 

 

(83)

 

 

(1,181)

 

 

Gain on sale of wood products assets

 

 

 

 

 

 

 

 

 

 

 

 

(31)

 

 

Loss on early extinguishment of debt

 

 

16

 

 

 

 

 

 

 

 

16

 

 

33

 

 

Gain on sale of 82,000 acres of non-strategic timberlands

(96)

 

 

 

 

 

 

 

 

 

 

(96)

 

 

 

 

Charges for restructuring, closures and impairments

 

 

 

 

24

 

 

12

 

 

89

 

 

36

 

 

89

 

 

Charges related to the sale of hardwoods

 

 

6

 

 

8

 

 

 

 

 

 

14

 

 

 

 

Gain on sale of properties

 

 

 

 

(9)

 

 

 

 

 

 

(9)

 

 

 

 

Gain on sale of Westwood Shipping Lines

 

 

 

 

(31)

 

 

 

 

 

 

(31)

 

 

 

 

Gain on sale of rail roads

 

 

 

 

 

 

 

 

(31)

 

 

 

 

(31)

 

 

Net earnings before special items

$

3

 

 

$

32

 

 

$

66

 

 

$

77

 

 

$

52

 

 

$

178

 

 

$

160

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-date

 

 

Mar 31,
2011

 

Jun 30,
2011

 

Sep 30,
2011

 

Dec 31,
2011

 

Dec 31,
2010

 

Dec 31,
2011

 

Dec 31,
2010

 

 

Net earnings per diluted share

$

0.18

 

 

$

0.02

 

 

$

0.29

 

 

$

0.12

 

 

$

0.32

 

 

$

0.61

 

 

$

3.99

 

 

Income tax adjustments

 

 

 

 

(0.15)

 

 

 

 

(0.33)

 

 

(0.15)

 

 

(3.68)

 

 

Gain on sale of wood products assets

 

 

 

 

 

 

 

 

 

 

 

 

(0.10)

 

 

Loss on early extinguishment of debt

 

 

0.03

 

 

 

 

 

 

 

 

0.03

 

 

0.11

 

 

Gain on sale of 82,000 acres of non-strategic timberlands

(0.18)

 

 

 

 

 

 

 

 

 

 

(0.18)

 

 

 

 

Charges for restructuring, closures and impairments

 

 

 

 

0.04

 

 

0.02

 

 

0.17

 

 

0.07

 

 

0.28

 

 

Charges related to the sale of hardwoods

 

 

0.01

 

 

0.01

 

 

 

 

 

 

0.03

 

 

 

 

Gain on sale of properties

 

 

 

 

(0.01)

 

 

 

 

 

 

(0.02)

 

 

 

 

Gain on sale of Westwood Shipping Lines

 

 

 

 

(0.06)

 

 

 

 

 

 

(0.06)

 

 

 

 

Gain on sale of rail roads

 

 

 

 

 

 

 

 

(0.06)

 

 

 

 

(0.10)

 

 

Net earnings before special items per diluted share

$

 

 

$

0.06

 

 

$

0.12

 

 

$

0.14

 

 

$

0.10

 

 

$

0.33

 

 

$

0.50

 

 

 

 

 

 

 

 

Selected Total Company Items, Excluding Discontinued Operations

 

 

 

 

 

 

 

in millions

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-date

 

 

Mar 31,
2011

 

Jun 30,
2011

 

Sep 30,
2011

 

Dec 31,
2011

 

Dec 31,
2010

 

Dec 31,
2011

 

Dec 31,
2010

 

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

$

105

 

 

$

105

 

 

$

108

 

 

$

104

 

 

$

110

 

 

$

422

 

 

$

431

 

 

Selling, general and administrative expenses

16

 

 

13

 

 

12

 

 

13

 

 

15

 

 

54

 

 

64

 

 

Total depreciation, depletion and amortization

$

121

 

 

$

118

 

 

$

120

 

 

$

117

 

 

$

125

 

 

$

476

 

 

$

495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and postretirement costs (credits):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and postretirement costs allocated to business segments

$

10

 

 

$

15

 

 

$

9

 

 

$

12

 

 

$

11

 

 

$

46

 

 

$

39

 

 

Pension and postretirement costs (credits) retained
by Corporate segment

12

 

 

3

 

 

6

 

 

5

 

 

(19)

 

 

26

 

 

(73)

 

 

Total company pension and postretirement costs (credits)

$

22

 

 

$

18

 

 

$

15

 

 

$

17

 

 

$

(8)

 

 

$

72

 

 

$

(34)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total decrease (increase) in Forest Products working capital

$

(158)

 

 

$

(21)

 

 

$

69

 

 

$

(63)

 

 

$

139

 

 

$

(173)

 

 

$

731

 

 

Cash spent for capital expenditures

$

(47)

 

 

$

(44)

 

 

$

(65)

 

 

$

(82)

 

 

$

(88)

 

 

$

(238)

 

 

$

(228)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weyerhaeuser Company                                                                                                                                                                      Timberlands Segment
Q4.2011 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations

 

in millions

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Trade sales and revenues (unaffiliated customers)

$

230

 

 

$

288

 

 

$

252

 

 

$

274

 

 

$

1,044

 

 

$

207

 

 

$

874

 

Intersegment sales

191

 

 

134

 

 

154

 

 

167

 

 

646

 

 

164

 

 

603

 

Total net sales and revenues

421

 

 

422

 

 

406

 

 

441

 

 

1,690

 

 

371

 

 

1,477

 

Cost of products sold

320

 

 

296

 

 

321

 

 

359

 

 

1,296

 

 

298

 

 

1,129

 

Gross margin

101

 

 

126

 

 

85

 

 

82

 

 

394

 

 

73

 

 

348

 

Selling, general and administrative expenses

23

 

 

24

 

 

23

 

 

21

 

 

91

 

 

22

 

 

85

 

Research and development expenses

4

 

 

4

 

 

4

 

 

6

 

 

18

 

 

7

 

 

21

 

Charges for restructuring, closures and impairments

 

 

 

 

 

 

 

 

 

 

 

 

2

 

Other operating income, net

(166)

 

 

(13)

 

 

(3)

 

 

(14)

 

 

(196)

 

 

(11)

 

 

(39)

 

Operating income

240

 

 

111

 

 

61

 

 

69

 

 

481

 

 

55

 

 

279

 

Interest income and other

1

 

 

1

 

 

1

 

 

1

 

 

4

 

 

1

 

 

3

 

Net contribution to earnings

$

241

 

 

$

112

 

 

$

62

 

 

$

70

 

 

$

485

 

 

$

56

 

 

$

282

 

Selected Segment Items

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Depreciation, depletion and amortization

$

31

 

 

$

35

 

 

$

34

 

 

$

35

 

 

$

135

 

 

$

30

 

 

$

118

 

Total decrease (increase) in working capital

$

(16)

 

 

$

(40)

 

 

$

32

 

 

$

(3)

 

 

$

(27)

 

 

$

(6)

 

 

$

(10)

 

Cash spent for capital expenditures

$

(14)

 

 

$

(14)

 

 

$

(12)

 

 

$

(13)

 

 

$

(53)

 

 

$

(20)

 

 

$

(72)

 

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

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Gain on sale of 82,000 acres of non-strategic timberlands

$

152

 

 

$

 

 

$

 

 

$

 

 

$

152

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Statistics

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Third Party Net Sales and  Revenue (millions)

 

Logs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West

$

110

 

 

$

152

 

 

$

144

 

 

$

139

 

 

$

545

 

 

$

97

 

 

$

414

 

 

South

41

 

 

49

 

 

53

 

 

53

 

 

196

 

 

41

 

 

145

 

 

Canada

7

 

 

1

 

 

4

 

 

5

 

 

17

 

 

5

 

 

17

 

 

Total logs

158

 

 

202

 

 

201

 

 

197

 

 

758

 

 

143

 

 

576

 

 

Pay as cut timber sales

8

 

 

8

 

 

9

 

 

9

 

 

34

 

 

8

 

 

33

 

 

Timberlands exchanges and dispositions

21

 

 

39

 

 

2

 

 

15

 

 

77

 

 

20

 

 

109

 

 

Higher and better use land sales

4

 

 

2

 

 

5

 

 

14

 

 

25

 

 

4

 

 

22

 

 

Minerals, oil and gas

14

 

 

15

 

 

14

 

 

10

 

 

53

 

 

14

 

 

60

 

 

Products from international operations

17

 

 

21

 

 

21

 

 

27

 

 

86

 

 

16

 

 

65

 

 

Other products

8

 

 

1

 

 

 

 

2

 

 

11

 

 

2

 

 

9

 

 

Total

$

230

 

 

$

288

 

 

$

252

 

 

$

274

 

 

$

1,044

 

 

$

207

 

 

$

874

 

Logs

Third Party Sales

Realizations

(per cubic meter)

 

West

$

100.20

 

 

$

109.42

 

 

$

104.27

 

 

$

99.71

 

 

$

103.57

 

 

$

95.30

 

 

$

92.59

 

 

South

$

41.22

 

 

$

40.59

 

 

$

39.11

 

 

$

39.82

 

 

$

40.10

 

 

$

41.86

 

 

$

43.21

 

 

Canada

$

34.73

 

 

$

42.79

 

 

$

33.73

 

 

$

34.04

 

 

$

34.65

 

 

$

33.84

 

 

$

33.11

 

 

International

$

22.12

 

 

$

37.78

 

 

$

33.73

 

 

$

17.03

 

 

$

28.11

 

 

$

18.21

 

 

$

19.01

 

Logs

Third Party Sales

Volumes

(cubic meters,

thousands)

 

West

1,095

 

 

1,391

 

 

1,385

 

 

1,396

 

 

5,267

 

 

1,020

 

 

4,476

 

 

South

1,005

 

 

1,211

 

 

1,336

 

 

1,327

 

 

4,879

 

 

993

 

 

3,357

 

 

Canada

194

 

 

23

 

 

116

 

 

146

 

 

479

 

 

141

 

 

507

 

 

International

72

 

 

79

 

 

88

 

 

75

 

 

314

 

 

74

 

 

283

 

 

Total

2,366

 

 

2,704

 

 

2,925

 

 

2,944

 

 

10,939

 

 

2,228

 

 

8,623

 

Logs

Fee Depletion

(cubic meters,

thousands)

 

West

1,611

 

 

1,747

 

 

1,604

 

 

1,633

 

 

6,595

 

 

1,290

 

 

5,569

 

 

South

2,180

 

 

2,355

 

 

2,535

 

 

2,668

 

 

9,738

 

 

2,116

 

 

8,197

 

 

International

98

 

 

221

 

 

270

 

 

265

 

 

854

 

 

79

 

 

349

 

 

Total

3,889

 

 

4,323

 

 

4,409

 

 

4,566

 

 

17,187

 

 

3,485

 

 

14,115

 

 

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Wood Products Segment

 

 

 

 

Segment Statement of Operations

 

in millions

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Trade sales and revenues (unaffiliated customers)

$

526

 

 

$

605

 

 

$

603

 

 

$

542

 

 

$

2,276

 

 

$

487

 

 

$

2,224

 

Intersegment sales

20

 

 

21

 

 

20

 

 

19

 

 

80

 

 

16

 

 

63

 

Total net sales and revenues

546

 

 

626

 

 

623

 

 

561

 

 

2,356

 

 

503

 

 

2,287

 

Cost of products sold

536

 

 

629

 

 

620

 

 

576

 

 

2,361

 

 

527

 

 

2,289

 

Gross margin

10

 

 

(3)

 

 

3

 

 

(15)

 

 

(5)

 

 

(24)

 

 

(2)

 

Selling, general and administrative expenses

50

 

 

49

 

 

47

 

 

46

 

 

192

 

 

58

 

 

250

 

Research and development expenses

1

 

 

1

 

 

1

 

 

1

 

 

4

 

 

1

 

 

5

 

Charges for restructuring, closures and impairments

2

 

 

4

 

 

38

 

 

20

 

 

64

 

 

102

 

 

113

 

Other operating income, net

(5)

 

 

(4)

 

 

(6)

 

 

(2)

 

 

(17)

 

 

(1)

 

 

(49)

 

Operating loss

(38)

 

 

(53)

 

 

(77)

 

 

(80)

 

 

(248)

 

 

(184)

 

 

(321)

 

Interest income and other

2

 

 

 

 

1

 

 

 

 

3

 

 

1

 

 

3

 

Net contribution to earnings from continuing operations

(36)

 

 

(530

 

 

(76)

 

 

(80)

 

 

(245)

 

 

(183)

 

 

(318)

 

Net contribution to earnings from discontinued hardwoods operations

 

 

(8)

 

 

(17)

 

 

 

 

(25)

 

 

(5)

 

 

8

 

Net contribution to earnings

$

(36)

 

 

$

(61)

 

 

$

(93)

 

 

$

(80)

 

 

$

(270)

 

 

$

(188)

 

 

$

(3100

 

 

 

Selected Segment Items, Excluding Hardwoods Operations

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Depreciation, depletion and amortization

$

39

 

 

$

35

 

 

$

36

 

 

$

34

 

 

$

144

 

 

$

41

 

 

$

170

 

Total decrease (increase) in working capital

$

(115)

 

 

$

43

 

 

$

16

 

 

$

21

 

 

$

(35)

 

 

$

26

 

 

$

16

 

Cash spent for capital expenditures

$

(6)

 

 

$

(7)

 

 

$

(8)

 

 

$

(14)

 

 

$

(35)

 

 

$

(20)

 

 

$

(31)

 

 

 

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

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Gain on sale of wood products assets

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

52

 

Charges for restructuring, closures and impairments

 

 

 

 

(38)

 

 

(19)

 

 

(57)

 

 

(103)

 

 

(103)

 

Gain on sale of properties

 

 

 

 

5

 

 

 

 

5

 

 

 

 

 

Total special items from continuing operations

 

 

 

 

(33)

 

 

(19)

 

 

(52)

 

 

(103)

 

 

(51)

 

Charges related to sale of discontinued hardwoods operations

 

 

(9)

 

 

(13)

 

 

 

 

(22)

 

 

 

 

 

Total

$

 

 

$

(9)

 

 

$

(46)

 

 

$

(19)

 

 

$

(74)

 

 

$

(103)

 

 

$

(51)

 

 

 

Segment Statistics

 

in millions, except for third-party sales realizations

 

Q1.2011

 

 

 

Q2.2011

 

 

 

Q3.2011

 

 

 

Q4.2011

 

 

 

YTD.2011

 

 

 

Q4.2010

 

 

 

YTD.2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Party Sales Realizations

$

315.26

 

 

$

300.84

 

 

$

300.74

 

 

$

296.09

 

 

$

302.99

 

 

$

292.63

 

 

$

311.09

 

 

Third Party Sales Volumes

826

 

 

963

 

 

934

 

 

863

 

 

3,586

 

 

822

 

 

3,356

 

 

Production Volumes

893

 

 

903

 

 

890

 

 

842

 

 

3,528

 

 

785

 

 

3,289

 

Engineered Solid

Section

(cubic feet)

 

 

Third Party Net Sales and Revenue

$

62

 

 

$

71

 

 

$

65

 

 

$

55

 

 

$

253

 

 

$

59

 

 

$

272

 

 

Third Party Sales Realizations

$

1,851.05

 

 

$

1,904.83

 

 

$

1,865.05

 

 

$

1,782.64

 

 

$

1,853.98

 

 

$

1,853.91

 

 

$

1,797.79

 

 

Third Party Sales Volumes

3

 

 

4

 

 

4

 

 

3

 

 

14

 

 

3

 

 

15

 

 

Production Volumes

4

 

 

3

 

 

4

 

 

2

 

 

13

 

 

3

 

 

15

 

Engineered

I-joists

(lineal feet)

 

 

Third Party Net Sales and Revenue

$

33

 

 

$

48

 

 

$

44

 

 

$

36

 

 

$

161

 

 

$

35

 

 

$

171

 

 

Third Party Sales Realizations

$

1,266.51

 

 

$

1,258.14

 

 

$

1,275.43

 

 

$

1,257.62

 

 

$

1,264.35

 

 

$

1,259.46

 

 

$

1,180.45

 

 

Third Party Sales Volumes

26

 

 

38

 

 

34

 

 

30

 

 

128

 

 

29

 

 

145

 

 

Production Volumes

30

 

 

34

 

 

32

 

 

26

 

 

122

 

 

26

 

 

133

 

Oriented Strand

Board

(square feet 3/8')

 

 

Third Party Net Sales and Revenue

$

85

 

 

$

89

 

 

$

97

 

 

$

90

 

 

$

361

 

 

$

72

 

 

$

334

 

 

Third Party Sales Realizations

$

192.16

 

 

$

178.43

 

 

$

176.33

 

 

$

173.28

 

 

$

179.57

 

 

$

177.84

 

 

$

207.92

 

 

Third Party Sales Volumes

445

 

 

498

 

 

549

 

 

516

 

 

2,008

 

 

408

 

 

1,607

 

 

Production Volumes

494

 

 

518

 

 

574

 

 

541

 

 

2,127

 

 

429

 

 

1,721

 

Softwood Plywood

(square feet 3/8')

 

 

Third Party Net Sales and Revenue

$

17

 

 

$

16

 

 

$

18

 

 

$

18

 

 

$

69

 

 

$

15

 

 

$

73

 

 

Third Party Sales Realizations

$

263.83

 

 

$

271.01

 

 

$

260.23

 

 

$

274.02

 

 

$

267.13

 

 

$

250.61

 

 

$

279.58

 

 

Third Party Sales Volumes

63

 

 

61

 

 

69

 

 

65

 

 

258

 

 

57

 

 

260

 

 

Production Volumes

53

 

 

48

 

 

49

 

 

47

 

 

197

 

 

43

 

 

212

 

Hardwood Lumber (board feet)

 

 

Third Party Net Sales and Revenue

$

58

 

 

$

63

 

 

$

17

 

 

$

 

 

$

138

 

 

$

51

 

 

$

223

 

 

Third Party Sales Realizations

$

845.42

 

 

$

858.51

 

 

$

861.33

 

 

$

 

 

$

853.30

 

 

$

833.75

 

 

$

829.40

 

 

Third Party Sales Volumes

69

 

 

73

 

 

20

 

 

 

 

162

 

 

61

 

 

269

 

 

Production Volumes

58

 

 

62

 

 

15

 

 

 

 

135

 

 

51

 

 

231

 

 

 

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Cellulose Fibers Segment

 

 

 

 

Segment Statement of Operations

 

 

in millions

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Total net sales and revenues

$

506

 

 

$

526

 

 

$

503

 

 

$

523

 

 

$

2,058

 

 

$

511

 

 

$

1,911

 

Cost of products sold

400

 

 

422

 

 

349

 

 

370

 

 

1,541

 

 

356

 

 

1,424

 

Gross margin

106

 

 

104

 

 

154

 

 

153

 

 

517

 

 

155

 

 

487

 

Selling, general and administrative expenses

22

 

 

24

 

 

24

 

 

24

 

 

94

 

 

21

 

 

82

 

Research and development expenses

2

 

 

2

 

 

2

 

 

2

 

 

8

 

 

2

 

 

8

 

Charges for restructuring, closures and impairments

 

 

 

 

 

 

1

 

 

1

 

 

 

 

 

Other operating income, net

(5)

 

 

(3)

 

 

(4)

 

 

(7)

 

 

(19)

 

 

(7)

 

 

(20)

 

Operating income

87

 

 

81

 

 

132

 

 

133

 

 

433

 

 

139

 

 

417

 

Interest income and other

(1)

 

 

(1)

 

 

3

 

 

1

 

 

2

 

 

(1)

 

 

(5)

 

Net contribution to earnings

$

86

 

 

$

80

 

 

$

135

 

 

$

134

 

 

$

435

 

 

$

138

 

 

$

412

 

 

 

Selected Segment Items

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Depreciation, depletion and amortization

$

36

 

 

$

35

 

 

$

37

 

 

$

36

 

 

$

144

 

 

$

39

 

 

$

145

 

Total decrease (increase) in working capital

$

20

 

 

$

(32)

 

 

$

(9)

 

 

$

(26)

 

 

$

(47)

 

 

$

21

 

 

$

(52)

 

Cash spent for capital expenditures

$

(26)

 

 

$

(23)

 

 

$

(43)

 

 

$

(54)

 

 

$

(146)

 

 

$

(46)

 

 

$

(119)

 

 

 

Segment Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1.2011

 

 

 

Q2.2011

 

 

 

Q3.2011

 

 

 

Q4.2011

 

 

 

YTD.2011

 

 

 

Q4.2010

 

 

 

YTD.2010

 

Pulp

(air-dry metric

tons)

 

Third Party Net Sales and
Revenue (millions)

$

398

 

 

$

409

 

 

$

391

 

 

$

419

 

 

$

1,617

 

 

$

402

 

 

$

1,489

 

 

Third Party Sales
Realizations

$

912.12

 

 

$

960.04

 

 

$

919.65

 

 

$

894.71

 

 

$

920.93

 

 

$

926.29

 

 

$

868.91

 

 

Third Party Sales Volumes 
(thousands)

436

 

 

426

 

 

426

 

 

468

 

 

1,756

 

 

434

 

 

1,714

 

 

Production Volumes
(thousands)

437

 

 

410

 

 

462

 

 

460

 

 

1,769

 

 

453

 

 

1,774

 

Liquid

Packaging

Board

(tons)

 

Third Party Net Sales and
Revenue (millions)

$

85

 

 

$

93

 

 

$

87

 

 

$

81

 

 

$

346

 

 

$

88

 

 

$

337

 

 

Third Party Sales
Realizations

$

1,148.29

 

 

$

1,194.46

 

 

$

1,164.99

 

 

$

1,151.48

 

 

$

1,165.31

 

 

$

1,081.52

 

 

$

1,083.31

 

 

Third Party Sales Volumes
(thousands)

74

 

 

77

 

 

76

 

 

70

 

 

297

 

 

81

 

 

311

 

 

Production Volumes
(thousands)

67

 

 

80

 

 

81

 

 

79

 

 

307

 

 

84

 

 

316

 

 

 

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Real Estate Segment

 

 

 

Segment Statement of Operations

 

 

in millions

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Total net sales and revenues

$

160

 

 

$

191

 

 

$

211

 

 

$

276

 

 

$

838

 

 

$

305

 

 

$

923

 

Cost of products sold

126

 

 

147

 

 

164

 

 

191

 

 

628

 

 

228

 

 

696

 

Gross margin

34

 

 

44

 

 

47

 

 

85

 

 

210

 

 

77

 

 

227

 

Selling, general and administrative expenses

35

 

 

36

 

 

36

 

 

37

 

 

144

 

 

45

 

 

160

 

Charges for restructuring, closures and impairments

1

 

 

1

 

 

2

 

 

10

 

 

14

 

 

17

 

 

21

 

Other operating income, net

 

 

 

 

 

 

(1)

 

 

(1)

 

 

(1)

 

 

(1)

 

Operating income (loss)

(2)

 

 

7

 

 

9

 

 

39

 

 

53

 

 

16

 

 

47

 

Interest income and other

1

 

 

1

 

 

1

 

 

2

 

 

5

 

 

 

 

49

 

Impairments of investments and other related charges

 

 

 

 

 

 

 

 

 

 

(3)

 

 

(3)

 

Loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

(20)

 

Net contribution to earnings

$

(1)

 

 

$

8

 

 

$

10

 

 

$

41

 

 

$

58

 

 

$

13

 

 

$

91

 

 

 

Selected Segment Items

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Depreciation and amortization

$

3

 

 

$

3

 

 

$

3

 

 

$

3

 

 

$

12

 

 

$

4

 

 

$

16

 

Cash spent for capital expenditures

$

(1)

 

 

$

 

 

$

(1)

 

 

$

(1)

 

 

$

(3)

 

 

$

(2)

 

 

$

(5)

 

 

 

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

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Charges for restructuring and impairments (1)

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(20)

 

 

$

(20)

 

 

(1)

Fourth quarter 2011 charges for restructuring, closures and impairments were mostly offset by other nonrecurring income.

 

 

Segment Statistics

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Net sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Single-family housing

$

152

 

 

$

180

 

 

$

204

 

 

$

232

 

 

$

768

 

 

$

266

 

 

$

842

 

Land

7

 

 

11

 

 

5

 

 

44

 

 

67

 

 

25

 

 

64

 

Other

1

 

 

 

 

2

 

 

 

 

3

 

 

14

 

 

17

 

Total net sales and revenue

$

160

 

 

$

191

 

 

$

211

 

 

$

276

 

 

$

838

 

 

$

305

 

 

$

923

 

Single-family homes sold

535

 

 

521

 

 

440

 

 

406

 

 

1,902

 

 

385

 

 

1,914

 

Single-family homes closed

363

 

 

459

 

 

508

 

 

582

 

 

1,912

 

 

606

 

 

2,125

 

Single-family homes sold but not closed (backlog)

611

 

 

673

 

 

605

 

 

429

 

 

429

 

 

439

 

 

439

 

Single-family average price of homes closed (in thousands)

$

419

 

 

$

391

 

 

$

403

 

 

$

398

 

 

$

402

 

 

$

439

 

 

$

396

 

Single-family home gross margin - excluding impairments (1)

21.7

%

 

22.4

%

 

23.0

%

 

25.4

%

 

23.3

%

 

26.1

%

 

23.7

%

 

(1)

Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weyerhaeuser Company

Q4.2011 Analyst Package

Preliminary results, subject to audit

 

Corporate & Other Segment

 

 

 

Corporate and Other includes certain gains or charges that are not related to an individual operating segment and the portion of items such as share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses associated with financing and other general and administrative expenses that are not allocated to the business segments. Historically, Corporate and Other included the results of our transportation operations. This included our five short line railroads that were sold at the end of 2010 and Westwood Shipping Lines that was sold on September 30, 2011. Westwood results are included in our results of discontinued operations.

 

Segment Statement of Operations

 

 

in millions

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Trade sales and revenues (unaffiliated customers)

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

6

 

 

$

22

 

Intersegment sales

 

 

 

 

 

 

 

 

 

 

1

 

 

3

 

Total net sales and revenues

 

 

 

 

 

 

 

 

 

 

7

 

 

25

 

Cost of products sold (1)

6

 

 

4

 

 

3

 

 

7

 

 

20

 

 

(6)

 

 

(38)

 

Gross margin

(6)

 

 

(4)

 

 

(3)

 

 

(7)

 

 

(20)

 

 

13

 

 

63

 

Selling, general and administrative expenses

42

 

 

12

 

 

5

 

 

21

 

 

80

 

 

25

 

 

73

 

Charges for restructuring, closures and impairments

1

 

 

2

 

 

1

 

 

 

 

4

 

 

6

 

 

12

 

Other operating costs (income), net

2

 

 

1

 

 

16

 

 

2

 

 

21

 

 

(46)

 

 

(54)

 

Operating income (loss)

(51)

 

 

(19)

 

 

(25)

 

 

(30)

 

 

(125)

 

 

28

 

 

32

 

Interest income and other

8

 

 

8

 

 

9

 

 

8

 

 

33

 

 

9

 

 

33

 

Net contribution to earnings from continuing operations

(43)

 

 

(110

 

 

(16)

 

 

(22)

 

 

(92)

 

 

37

 

 

65

 

Net contribution to earnings from discontinued operations (2)

2

 

 

(11)

 

 

54

 

 

 

 

45

 

 

4

 

 

6

 

Net contribution to earnings

$

(41)

 

 

$

(22)

 

 

$

38

 

 

$

(22)

 

 

$

(47)

 

 

$

41

 

 

$

71

 

 

(1)

Cost of products sold include the portion of pension and postretirement costs (credits) and other costs retained by the Corporate segment allocable to production employees.

(2)

Third quarter 2011 includes a $9 million gain and second quarter 2011 includes charges of $13 million related to businesses we have divested in prior years. Third quarter 2011 also includes a $49 million gain on the sale of Westwood Shipping Lines.

 

 

Selected Segment Items, Excluding Westwood Shipping Lines

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Depreciation, depletion and amortization

$

12

 

 

$

10

 

 

$

10

 

 

$

9

 

 

$

41

 

 

$

11

 

 

$

46

 

Total decrease (increase) in working capital

$

(47)

 

 

$

8

 

 

$

30

 

 

$

(55)

 

 

$

(64)

 

 

$

98

 

 

$

777

 

Cash spent for capital expenditures

$

 

 

$

 

 

$

(10)

 

 

$

 

 

$

(1)

 

 

$

 

 

$

(1)

 

Share-based compensation expense (income)

$

16

 

 

$

(5)

 

 

$

(12)

 

 

$

6

 

 

$

5

 

 

$

8

 

 

$

15

 

Foreign exchange losses (gains)

$

(6)

 

 

$

(1)

 

 

$

16

 

 

$

(4)

 

 

$

5

 

 

$

(5

)

 

$

(11)

 

Pension and postretirement costs (credits) retained by
Corporate segment

$

12

 

 

$

3

 

 

$

6

 

 

$

5

 

 

$

26

 

 

$

(19

)

 

$

(74)

 

 

 

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

 

 

Q1.2011

 

Q2.2011

 

Q3.2011

 

Q4.2011

 

YTD.2011

 

Q4.2010

 

YTD.2010

Gain on sale of five short line railroads

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

46

 

 

$

46

 

Charges for restructuring, closures and impairments

 

 

 

 

 

 

 

 

 

 

(7)

 

 

(7)

 

Total special items from continuing operations

 

 

 

 

 

 

 

 

 

 

39

 

 

39

 

Gain on sale of property

 

 

 

 

9

 

 

 

 

9

 

 

 

 

 

Gain on sale of Westwood Shipping Lines

 

 

 

 

49

 

 

 

 

49

 

 

 

 

 

Total

$

 

 

$

 

 

$

58

 

 

$

 

 

$

58

 

 

$

39

 

 

$

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE Weyerhaeuser Company

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