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Weyerhaeuser Reports First Quarter Results

PR Newswire
FEDERAL WAY, Wash.
Apr 26, 2012

Weyerhaeuser Reports First Quarter Results

PR Newswire

FEDERAL WAY, Wash., April 27, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $41 million for the first quarter, or 8 cents per diluted share, on net sales of $1.5 billion. This compares with net earnings of $99 million on net sales from continuing operations of $1.4 billion for the same period last year.

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

Earnings for the first quarter of 2012 include after-tax gains of $32 million from special items. Excluding these items, the company reported net earnings of $9 million, or 2 cents per diluted share. This compares with net earnings before special items of $3 million, or breakeven results per diluted share, in the first quarter of 2011.

"Even as indicators of a modestly improving U.S. housing market begin to emerge, we remain relentlessly focused on improving our financial performance," said Dan Fulton, president and chief executive officer. "We will take full advantage of recovering markets while positioning Weyerhaeuser for future growth, to the benefit of our shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2011

2012

2011

(millions, except per share data)

4Q

1Q

1Q

Net sales from continuing operations

$1,615

$1,494

$1,422

Net earnings (1)

$65

$41

$99

Weighted average shares outstanding, diluted

538

540

540

Earnings per diluted share (1)

$0.12

$0.08

$0.18

Net earnings before special items (2)

$77

$9

$3

Earnings per diluted share before special items

$0.14

$0.02

$0.00

Net cash from operations

$147

($60)

($87)

Net change in cash and cash equivalents

($18)

($225)

($4)

Cash and cash equivalents at end of period

$953

$728

$1,463


(1) The first quarter of 2011 included net earnings of $1 million from discontinued operations, or $0.00 per diluted share, on net sales of $156 million. Discontinued operations include Weyerhaeuser's hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter of 2011.


(2) Special items for the first quarter of 2011 include an after-tax gain of $96 million from the sale of non-strategic timberlands.



TIMBERLANDS





FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$274

$250

($24)

Contribution to pre-tax earnings before special items

$70

$71

$1

Pre-tax special items

GAAP contribution to pre-tax earnings

$70

$71

$1

1Q 2012 Performance – The segment's results improved slightly compared with the fourth quarter. Income from operations increased $13 million, primarily due to lower Western operating costs. This was mostly offset by a $12 million decline in earnings from the disposition of non-strategic timberlands. Fee harvest volumes increased.

2Q 2012 Outlook – Weyerhaeuser expects modestly higher earnings from the Timberlands segment in the second quarter. The company expects higher log sales volumes and slightly improved domestic prices for Western logs, partially offset by an overall increase in fuel costs and seasonally higher silviculture expenses.

WOOD PRODUCTS





FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$542

$634

$92

Charge to pre-tax earnings before special items

($61)

($22)

$39

Pre-tax special items

(19)

19

GAAP charge to pre-tax earnings

($80)

($22)

$58

1Q 2012 Performance – Results before special items improved $39 million compared with the fourth quarter. Sales volumes and prices were higher across all product lines, and operating rates improved. These factors were partially offset by increased freight expense.

2Q 2012 Outlook – Weyerhaeuser anticipates approximately breakeven results from the Wood Products segment in the second quarter. The company expects higher sales volumes across all product lines and improved selling prices for lumber.

CELLULOSE FIBERS





FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$523

$473

($50)

Contribution to pre-tax earnings before special items

$134

$44

($90)

Pre-tax special items

GAAP contribution to pre-tax earnings

$134

$44

($90)

1Q 2012 Performance – First quarter earnings declined $90 million compared with fourth quarter. Average selling prices for pulp were lower, and sales volumes decreased. Maintenance costs increased significantly and production declined as the segment completed two planned annual maintenance outages in the first quarter. There were no annual maintenance outages in the fourth quarter.

2Q 2012 Outlook – Weyerhaeuser expects slightly higher earnings from the Cellulose Fibers segment in the second quarter due to improved selling prices for pulp, partly offset by higher planned annual maintenance expense.

REAL ESTATE





FINANCIAL HIGHLIGHTS (millions)

4Q 2011

1Q 2012

Change

Net sales

$276

$137

($139)

Contribution (charge) to pre-tax earnings before special items

$41

($8)

($49)

Pre-tax special items

GAAP contribution (charge) to pre-tax earnings

$41

($8)

($49)

1Q 2012 Performance – The segment's earnings declined $49 million compared with the fourth quarter. Home closings declined seasonally to 349 single-family homes, and average margins on homes closed fell 8 percentage points due to mix. First quarter results include earnings of $1 million from lot sales, compared with $19 million from the sale of land and lots in the fourth quarter.

At the end of the first quarter the backlog of homes sold, but not closed, totaled 777 units, a 27 percent increase compared with one year ago.

2Q 2012 Outlook – Weyerhaeuser expects a slight profit from the Real Estate segment in the second quarter. A land sale completed in April 2012 will contribute approximately $10 million to earnings. The company anticipates a small loss from single family homebuilding operations. Home closings should increase seasonally.

OTHER ITEMS

First quarter Unallocated Items include net pre-tax gains of $38 million from special items, comprised of a gain of $52 million from postretirement plan amendments and charges of $14 million for impairments, restructuring and other items.

First quarter special items also include a benefit of $8 million for income tax settlements.

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. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

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

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

To join the conference call from within North America, dial 877-296-9413 (access code – 41403656) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 41403656). Replays will be available for one week at 855-859-2056 (access code – 41403656) from within North America and at 404-537-3406 (access code – 41403656) from outside North America.

The webcast is available to both institutional and individual investors through the Thomson StreetEvents Network. Individual investors can listen to the call at www.fulldisclosure.com, Thomson's individual investor portal. Institutional investors can access the call via Thomson's password-protected site at 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 second quarter of 2012, including higher log sales volumes, slightly improved domestic prices for Western logs, increased fuel costs, seasonally higher silviculture expenses, and modestly higher earnings in the Timberlands segment; higher sales volumes across all product lines, improved selling prices for lumber, and a slight operating loss in the Wood Products segment; improved selling prices for pulp, higher planned annual maintenance expense, and slightly higher earnings in the Cellulose Fiber segment; and a small loss from single-family homebuilding operations, seasonally higher home closings, and a slight profit 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 weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation;
  • 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. Restrictions on international trade or tariffs imposed on imports also may affect the company.  

For more information contact:
Media - Anthony Chavez (253) 924-7148
Analysts - Kathryn McAuley (253) 924-2058

 

Exhibit 99.2

Weyerhaeuser Company

Q1.2012 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Operations





in millions

Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

Net sales and revenues

$                   1,615


$             1,494


$            1,422

Cost of products sold

1,317


1,290


1,177

Gross margin

298


204


245

Selling, general and administrative expenses

149


150


172

Research and development expenses

9


7


7

Charges for restructuring, closures and impairments

31


12


4

Other operating income, net

(22)


(66)


(174)

Operating income

131


101


236

Interest income and other

12


12


11

Interest expense, net of capitalized interest

(88)


(87)


(93)

Earnings from continuing operations before income taxes

55


26


154

Income taxes

10


15


(56)

Earnings from continuing operations

65


41


98

Earnings from discontinued operations, net of income taxes

-


-


1

Net earnings attributable to Weyerhaeuser common shareholders

$                        65


$                  41


$                  99



Per Share Information



Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted:






Continuing operations

$                      0.12


$                0.08


$                0.18

Discontinued operations

-


-


-

Net earnings per share

$                      0.12


$                0.08


$                0.18

Dividends paid per share

$                      0.15


$                0.15


$                0.15

Weighted average shares outstanding (in thousands):






Basic

536,432


537,368


537,140

Diluted

538,119


539,728


540,476

Common shares outstanding at end of period (in thousands)

536,425


537,409


538,408







Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*







in millions

Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

Operating income

$                      131


$               101


$               236

Depreciation, depletion and amortization

117


113


121

Special items

19


(38)


(152)

Capitalized interest included in cost of products sold

12


3


5

EBITDA, excluding special items*

$                      279


$               179


$               210














 

 

Weyerhaeuser Company

Q1.2012 Analyst Package

Preliminary results, subject to audit

Consolidated Balance Sheet





in millions





March 31, 2012

December 31, 2011

ASSETS




Forest Products:




Current assets:




Cash and cash equivalents

$                 726


$                       950

Receivables, less allowances

503


490

Inventories

517


476

Prepaid expenses

80


68

Deferred tax assets

113


81

Total current assets

1,939


2,065

Property and equipment, net

2,829


2,901

Construction in progress

192


145

Timber and timberlands at cost, less depletion charged to disposals

3,970


3,978

Investments in and advances to equity affiliates

189


192

Goodwill

40


40

Other assets

442


444

Restricted assets held by special purpose entities

914


916


10,515


10,681

Real Estate:




Cash and cash equivalents

2


3

Receivables, less allowances

30


41

Real estate in process of development and for sale

606


555

Land being processed for development

943


936

Investments in and advances to equity affiliates

19


21

Deferred tax assets

246


240

Other assets

113


113

Consolidated assets not owned

-


8


1,959


1,917

Total assets

$          12,474


$                12,598





LIABILITIES AND EQUITY




Forest Products:




Current liabilities:




Current maturities of long-term debt

$                 167


$                         12

Accounts payable

343


336

Accrued liabilities

536


593

Total current liabilities

1,046


941

Long-term debt

4,026


4,181

Deferred income taxes

108


93

Deferred pension and other postretirement benefits

1,470


1,467

Other liabilities

407


408

Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities

775


776


7,832


7,866

Real Estate:




Long-term debt

283


285

Other liabilities

154


172

Consolidated liabilities not owned

-


8


437


465

Total liabilities

8,269


8,331

Equity:




Total Weyerhaeuser shareholders' interest

4,197


4,263

Noncontrolling interests

8


4

Total equity

4,205


4,267

Total liabilities and equity

$          12,474


$                12,598






Weyerhaeuser Company

Q1.2012 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Cash Flows





in millions

Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

Cash flows from operations:







Net earnings

$                         65


$                   41


$                   99

Noncash charges (credits) to income:






Depreciation, depletion and amortization

117


113


123

Deferred income taxes, net

51


(6)


39

Pension and other postretirement benefits

21


(28)


24

Share-based compensation expense

6


10


14

Charges for impairment of assets

19


8


1

Net gains on dispositions of assets

(9)


(7)


(156)

Foreign exchange transaction gains

(5)


(7)


(7)

Change in:






Receivables less allowances

(19)


(5)


(59)

Receivable for taxes

(18)


(2)


(20)

Inventories

(6)


(40)


(66)

Real estate and land

37


(55)


(2)

Prepaid expenses

17


(8)


(10)

Accounts payable and accrued liabilities

(59)


(56)


(38)

Deposits on land positions and other assets

5


-


-

Pension and postretirement contributions

(79)


(35)


(19)

Other

4


17


(10)

Net cash from operations

147


(60)


(87)







Cash flows from investing activities:






Property and equipment

(76)


(54)


(35)

Timberlands reforestation

(6)


(10)


(12)

Proceeds from sale of assets

9


6


193

Other

7


1


5

Cash from investing activities

(66)


(57)


151







Cash flows from financing activities:






Cash dividends

(81)


(81)


(81)

Change in book overdrafts

28


(29)


(19)

Payments on debt

(33)


(2)


(2)

Exercises of stock options

1


5


34

Repurchase of common stock

(13)


-


-

Other

(1)


(1)


-

Cash from financing activities

(99)


(108)


(68)







Net change in cash and cash equivalents

(18)


(225)


(4)

Cash and cash equivalents at beginning of period

971


953


1,467

Cash and cash equivalents at end of period

$                       953


$                 728


$              1,463

 

Cash paid (received) during the year for:






Interest, net of amount capitalized

$                         58


$                 114


$                 156

Income taxes

$                           7


$                 (10)


$                     2




















Weyerhaeuser Company



Total Company Statistics

Q1.2012 Analyst Package






Preliminary results, subject to audit












Special Items Included in Net Earnings







in millions

Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

 

Net earnings

$                        65


$                  41


$                  99

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

-


-


(96)

Restructuring, impairments and other charges

12


10


-

Gain on postretirement plan amendment

-


(34)


-

Tax settlements

-


(8)


-

Net earnings before special items

$                        77


$                    9


$                    3



Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

Net earnings per diluted share

$                     0.12


$              0.08


$              0.18

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

-


-


(0.18)

Restructuring, impairments and other charges

0.02


0.02


-

Gain on postretirement plan amendment

-


(0.06)


-

Tax settlements

-


(0.02)


-

Net earnings before special items per diluted share

$                     0.14


$              0.02


$                   -


Selected Total Company Items, Excluding Discontinued Operations


in millions

Q4


Q1


 

December 31, 2011


March 31, 2012


March 31, 2011

Depreciation, depletion and amortization:






Cost of products sold

$                       104


$                 102


$                 105

Selling, general and administrative expenses

13


11


16

Total depreciation, depletion and amortization

$                       117


$                 113


$                 121






Pension and postretirement costs:






Pension and postretirement costs allocated to business segments

$                         12


$                   13


$                   10

Pension and postretirement costs not allocated

5


7


12

Total company pension and postretirement costs

$                         17


$                   20


$                   22






Total increase in Forest Products working capital (1)

$                        (41)


$               (148)


$               (194)

Cash spent for capital expenditures

$                        (82)


$                 (64)


$                 (47)







(1)  Working capital does not include cash balances.







Weyerhaeuser Company



Timberlands Segment

Q1.2012 Analyst Package






Preliminary results, subject to audit













Segment Statement of Operations








in millions


Q4.2011


Q1.2012


Q1.2011

Sales to and revenues from unaffiliated customers

$             274


$             250


$            230

Intersegment sales


167


190


191

Total net sales and revenues


441


440


421

Cost of products sold


359


352


320

Gross margin


82


88


101

Selling, general and administrative expenses

21


25


23

Research and development expenses

6


4


4

Other operating income, net


(14)


(11)


(166)

Operating income


69


70


240

Interest income and other


1


1


1

Net contribution to earnings


$              70


$              71


$           241








Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions


Q4.2011


Q1.2012


Q1.2011

Operating income


$              69


$              70


$           240

Depreciation, depletion and amortization

35


35


31

Special items


-


-


(152)

EBITDA, excluding special items*

$           104


$           105


$           119














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










Q4.2011


Q1.2012


Q1.2011

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

$               -


$               -


$            152








Selected Segment Items










Q4.2011


Q1.2012


Q1.2011

Total increase in working capital (1)

$               (4)


$             (11)


$               (9)

Cash spent for capital expenditures

$             (13)


$             (12)


$             (14)








(1)  Working capital does not include cash balances.













Segment Statistics









Q4.2011


Q1.2012


Q1.2011

Third Party

Net Sales 

and Revenue (millions)

Logs:






West

$             139


$             130


$            110

South

53


50


41

Canada

5


7


7

Total Logs

197


187


158

Pay as cut timber sales

9


11


8

Timberlands exchanges

15


8


21

Higher and better use land sales

14


4


4

Minerals, oil and gas

10


7


14

Products from international operations

27


25


17

Other products

2


8


8

Total

$             274


$             250


$            230

Logs

Third Party Sales

Realizations
(per cubic meter)

West

$          99.71


$          99.10


$       100.20

South

$          39.82


$          40.48


$         41.22

Canada

$          34.04


$          36.35


$         34.73

International

$          17.03


$          22.97


$         22.12

Logs
Third Party Sales
Volumes
(cubic meters,
thousands)

West

1,396


1,308


1,095

South

1,327


1,228


1,005

Canada

146


205


194

International

75


78


72

Total

2,944


2,819


2,366

Logs
Fee Harvest Volumes
(cubic meters,
thousands)

West

1,633


1,679


1,611

South

2,668


2,714


2,180

International

265


172


98

Total

4.566


4.565


3.889









Weyerhaeuser Company




Wood Products Segment

Q1.2012 Analyst Package







Preliminary results, subject to audit













Segment Statement of Operations








in millions


Q4.2011


Q1.2012


Q1.2011

Sales to and revenues from unaffiliated customers

$         542


$         634


$         526

Intersegment sales

19


20


20

Total net sales and revenues

561


654


546

Cost of products sold

576


620


536

Gross margin

(15)


34


10

Selling, general and administrative expenses

46


50


50

Research and development expenses

1


1


1

Charges for restructuring, closures and impairments

20


1


2

Other operating costs (income), net

(2)


5


(5)

Operating loss

(80)


(23)


(38)

Interest income and other

-


1


2

Net contribution to earnings

$        (80)


$        (22)


$        (36)








Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions


Q4.2011


Q1.2012


Q1.2011

Operating loss


$        (80)


$        (23)


$        (38)

Depreciation, depletion and amortization

35


34


41

Special items


19


-


-

EBITDA, excluding special items*

$        (26)


$          11


$            3














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










Q4.2011


Q1.2012


Q1.2011

Charges for restructuring, closures and impairments

$         (19)


$            -


$            -








Selected Segment Items










Q4.2011


Q1.2012


Q1.2011

Total decrease (increase) in working capital (1)

$           21


$       (104)


$       (115)

Cash spent for capital expenditures

$         (14)


$           (6)


$           (6)








(1)  Working capital does not include cash balances.













Segment Statistics








in millions, except for third-party sales realizations

Q4.2011


Q1.2012


Q1.2011

Structural Lumber
(board feet)

Third Party Net Sales and Revenue

$         256


$         291


$         260

Third Party Sales Realizations

$    296.09


$    311.00


$    315.26

Third Party Sales Volumes

863


937


826

Production Volumes

842


958


893

Engineered Solid
Section
(cubic feet)

Third Party Net Sales and Revenue

$           55


$           65


$           53

Third Party Sales Realizations

$ 1,782.64


$ 1,830.07


$ 2,026.49

Third Party Sales Volumes

3


4


3

Production Volumes

2


4


4

Engineered
I-joists
(lineal feet)

Third Party Net Sales and Revenue

$           36


$           41


$           33

Third Party Sales Realizations

$ 1,257.62


$ 1,284.98


$ 1,266.51

Third Party Sales Volumes

30


32


26

Production Volumes

26


34


30

Oriented Strand
Board
(square feet 3/8')

Third Party Net Sales and Revenue

$           90


$         111


$           82

Third Party Sales Realizations

$    173.28


$    196.89


$    190.76

Third Party Sales Volumes

516


565


432

Production Volumes

541


601


494

Softwood Plywood (square feet 3/8')

Third Party Net Sales and Revenue

$           18


$           23


$           15

Third Party Sales Realizations

$    274.02


$    309.26


$    256.13

Third Party Sales Volumes

65


73


58

Production Volumes

47


51


53









Weyerhaeuser Company




Cellulose Fibers Segment

Q1.2012 Analyst Package







Preliminary results, subject to audit













Segment Statement of Operations








in millions


Q4.2011


Q1.2012


Q1.2011

Total net sales and revenues


$        523


$        473


$        506

Cost of products sold


370


411


400

Gross margin


153


62


106

Selling, general and administrative expenses

24


24


22

Research and development expenses

2


2


2

Charges for restructuring and impairments

1


-


-

Other operating income, net


(7)


(9)


(5)

Operating income


133


45


87

Interest income and other


1


(1)


(1)

Net contribution to earnings


$        134


$          44


$          86








Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions


Q4.2011


Q1.2012


Q1.2011

Operating income


$        133


$          45


$          87

Depreciation, depletion and amortization

37


37


37

EBITDA, excluding special items*

$        170


$          82


$        124














Selected Segment Items










Q4.2011


Q1.2012


Q1.2011

Total decrease (increase) in working capital (1)

$         (26)


$           49


$           20

Cash spent for capital expenditures

$         (54)


$         (45)


$         (26)








(1)  Working capital does not include cash balances.













Segment Statistics









Q4.2011


Q1.2012


Q1.2011

Pulp
(air-dry metric
tons)

Third Party Net Sales and Revenue (millions)

$         419


$         367


$         398

Third Party Sales Realizations

$    894.71


$    818.42


$    912.12

Third Party Sales Volumes (thousands)

468


449


436

Production Volumes (thousands)

460


438


437

Liquid
Packaging
Board
(tons)

Third Party Net Sales and Revenue (millions)

$           81


$           83


$           85

Third Party Sales Realizations

$ 1,151.48


$ 1,181.34


$ 1,148.29

Third Party Sales Volumes (thousands)

70


70


74

Production Volumes (thousands)

79


65


67









Weyerhaeuser Company



Real Estate Segment

Q1.2012 Analyst Package






Preliminary results, subject to audit













Segment Statement of Operations








in millions

Q4.2011


Q1.2012


Q1.2011

Total net sales and revenues

$   276


$   137


$   160

Cost of products sold

191


113


126

Gross margin

85


24


34

Selling, general and administrative expenses

37


32


35

Charges for restructuring, closures and impairments

10


1


1

Other operating income, net

(1)


-


-

Operating income (loss)

39


(9)


(2)

Interest income and other

2


1


1

Net contribution to earnings

$      41


$      (8)


$      (1)








Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions

Q4.2011


Q1.2012


Q1.2011

Operating income (loss)

$      39


$      (9)


$      (2)

Depreciation, depletion and amortization

4


2


3

Capitalized interest included in cost of products sold

10


3


4

EBITDA, excluding special items*

$      53


$      (4)


$        5














Selected Segment Items









Q4.2011


Q1.2012


Q1.2011

Cash spent for capital expenditures

$       (1)


$       (1)


$       (1)








Segment Statistics









Q4.2011


Q1.2012


Q1.2011

Net sales and revenues:






Single-family housing

$     232


$     131


$     152

Land

44


3


7

Other

-


3


1

Total net sales and revenue

$     276


$     137


$     160

Single-family homes sold

406


697


535

Single-family homes closed

582


349


363

Single-family homes sold but not closed (backlog)

429


777


611

Single-family cancellation rate

18.2 %


10.1 %


11.6 %

Single-family buyer traffic

10,533


14,272


12,904

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

$     398


$     376


$     419

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

25.4 %


17.3 %


21.7 %







(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



Unallocated Items

Q1.2012 Analyst Package






Preliminary results, subject to audit












Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; and foreign exchange transaction gains and losses associated with financing.







Contribution to Earnings







in millions

Q4.2011


Q1.2012


Q1.2011

Unallocated corporate function expenses

$       (8)


$       (6)


$     (17)

Unallocated share-based compensation

(6)


(5)


(16)

Unallocated pension & postretirement costs

(5)


(7)


(12)

Foreign exchange gains

4


6


6

Other

(15)


30


(12)

Operating income (loss)

(30)


18


(51)

Interest income and other

8


10


8

Net contribution to earnings from continuing operations

(22)


28


(43)

Net contribution to earnings from discontinued operations

-


-


2

Net contribution to earnings

$    (22)


$      28


$    (41)







Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*







in millions

Q4.2011


Q1.2012


Q1.2011

Operating income (loss)

$    (30)


$      18


$    (51)

Depreciation, depletion and amortization

6


5


9

Special items

-


(38)


-

Capitalized interest included in cost of products sold

2


-


1

EBITDA, excluding special items*

$    (22)


$    (15)


$    (41)













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








Q4.2011


Q1.2012


Q1.2011

Gain on postretirement plan amendment

$       -


$       52


$       -

Restructuring, impairments and other charges

-


(14)


-

Total

$       -


$      38


$       -







Unallocated Selected Items








Q4.2011


Q1.2012


Q1.2011

Total increase in working capital (1)

$     (32)


$     (82)


$     (90)







(1)  Working capital does not include cash balances.
























 

*EBITDA excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. EBITDA excluding special items, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. EBITDA excluding special items should not be considered in isolation from and is not intended to represent an alternative to our results computed under GAAP.


 

 

SOURCE Weyerhaeuser Company

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