Chart Newsroom

Print News Release

Weyerhaeuser Reports First Quarter Results

- Wood Products reports strongest quarterly earnings since 2005

- Board of Directors increased dividend by 18 percent on April 11 to 20 cents per share

- Weyerhaeuser upgraded to investment grade on improved performance

Apr 26, 2013

FEDERAL WAY, Wash., April 26, 2013 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $144 million, or 26 cents per diluted share, for the first quarter. This compares with net earnings before special items of $9 million, or 2 cents per diluted share, for the same period last year. Net sales for the first quarter of 2013 totaled $2.0 billion, compared with net sales of $1.5 billion for the first quarter of 2012.

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

"Our Wood Products business reported its strongest quarterly earnings since 2005, as we effectively leveraged operational improvements in a strengthening housing market," said Dan Fulton, president and chief executive officer. "Our shareholders are benefiting from this improved performance with the decision by our Board of Directors this month to increase our quarterly dividend by 18 percent."

WEYERHAEUSER FINANCIAL HIGHLIGHTS





(millions, except per share data)

2012

4Q

2013

1Q

2012

1Q

Net sales

$2,000

$1,951

$1,494

Net earnings

$143

$144

$41

Weighted average shares outstanding, diluted

547

551

540

Earnings per diluted share

$0.26

$0.26

$0.08

Net earnings before special items

$143

$144

$9

Earnings per diluted share before special items

$0.26

$0.26

$0.02

Net cash from operations

$252

($61)

($60)

Net change in cash and cash equivalents(1)

$290

($259)

($225)

Cash and cash equivalents at end of period(1)

$898

$639

$728

(1) First quarter of 2013 includes $156 million for debt repayment. Fourth quarter of 2012 includes $110 million received upon maturity of financial investments related to a timber monetization.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

4Q 2012

1Q 2013

Change

Net sales to unaffiliated customers

$298

$293

($5)

Intersegment sales

185

224

39

Total net sales

$483

$517

$34

Contribution to earnings

$95

$104

$9

1Q 2013 Performance Earnings improved in the first quarter compared with the fourth due to strong demand for Western logs, partially offset by a $17 million decrease in earnings from disposition of non-strategic timberlands. Selling prices for Western logs increased in export and domestic markets, and fee harvest volumes rose. Selling prices for Southern logs improved slightly, and fee harvest declined due to wet weather.

2Q 2013 Outlook - Excluding dispositions of non-strategic timberlands, Weyerhaeuser expects earnings from the segment to be comparable to the first quarter. The company anticipates improved selling prices for Western domestic and export logs, offset by seasonally higher silviculture expenses. Earnings from disposition of non-strategic timberlands should increase somewhat.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

4Q 2012

1Q 2013

Change

Net sales to unaffiliated customers

$832

$988

$156

Intersegment sales

16

18

2

Total net sales

$848

$1,006

$158

Contribution to earnings

$38

$178

$140

1Q 2013 Performance - Average price realizations for oriented strand board rose 24 percent compared with the fourth quarter, and lumber realizations increased 20 percent. Operating rates improved across all product lines due to stronger market demand and better mill operating performance. These factors were partially offset by higher raw material costs.

2Q 2013 Outlook - Weyerhaeuser anticipates comparable earnings from the Wood Products segment in the second quarter. The company expects higher sales volumes across all product lines, offset by slightly lower average selling prices for lumber and oriented strand board and slightly higher raw material costs.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

4Q 2012

1Q 2013

Change

Net sales

$463

$474

$11

Contribution to earnings

$61

$31

($30)

1Q 2013 Performance Scheduled maintenance costs increased and pulp mill productivity declined due to a greater number of annual maintenance outage days and major maintenance projects. Fiber and energy costs increased, and average price realizations for pulp declined slightly.

2Q 2013 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the second quarter. The company anticipates reduced fiber and energy costs, lower maintenance expense, and slightly higher pulp price realizations.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

4Q 2012

1Q 2013

Change

Net sales

$407

$196

($211)

Contribution to earnings

$81

$0

($81)

1Q 2013 Performance Earnings from land and lot sales decreased $65 million compared with the fourth quarter, which included unusually large transactions. Home closings declined seasonally to 463 single-family homes, and average margins on homes closed decreased slightly due to mix and rising input costs. These factors were partially offset by reduced selling costs due to the lower closing volume.

At the end of the first quarter the backlog of homes sold, but not closed, totaled 1,131 units, compared with 777 units one year ago.

2Q 2013 Outlook - Weyerhaeuser expects a slight profit from single-family homebuilding in the second quarter. Home closings should increase seasonally to approximately 600 single-family homes, with a slightly lower average closing price due to mix. Although input costs are rising, average margins should be comparable to the first quarter. The company anticipates higher selling-related expenses due to the additional closing volume.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 6 million acres of timberlands, primarily in the U.S., and manage another 14 million acres 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 and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2012, we generated $7.1 billion in sales and employed approximately 13,200 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our stock trades on the New York Stock exchange under the symbol WY. Learn more about us 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 26 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 26.

To join the conference call from within North America, dial 877-296-9413 (access code – 86487340) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86487340). Replays will be available for one week at 855-859-2056 (access code – 86487340) from within North America and at 404-537-3406 (access code – 86487340) 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. 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 during the second quarter of 2013, including improved selling prices for Western domestic and export logs, slightly lower fee harvest volumes, flat realization and somewhat higher fee harvest volumes in the South, seasonally higher silviculture expenses, somewhat higher earnings from dispositions of non-strategic timberlands, and comparable earnings from the Timberlands segment excluding disposition of non-strategic timberlands; higher sales volumes across all product lines, slightly higher sales realization for engineered wood products, potential softening in prices for lumber and oriented strand board, slightly higher log costs, improved operating rates, and comparable earnings from the Wood Products segment; slightly higher pulp price realizations, lower maintenance costs, lower fiber and energy costs, and significantly higher earnings from the Cellulose Fibers segment; and seasonally increased home closings to approximately 600 single-family homes, slight decline in average price of homes closed due to mix, average margins comparable to the first quarter of 2013, higher selling-related expenses due to additional closing volume, and a slight profit from single-family homebuilding 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 U.S. and international economic conditions;
  • performance of the company's manufacturing operations, including maintenance requirements;
  • the level of competition from domestic and foreign producers;
  • the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
  • raw material prices;
  • energy prices;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • transportation costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation;
  • changes in accounting principles; 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 and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

For more information contact:
Media – Anthony Chavez, 253-924-7148
AnalystsKathryn McAuley, 253-924-2058

 


Weyerhaeuser Company

Exhibit 99.2

Q1.2013 Analyst Package




Preliminary results, subject to audit






Consolidated Statement of Operations







in millions

Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

Net Sales

$ 2,000


$ 1,951


$ 1,494

Cost of products sold

1,580


1,533


1,290

Gross margin

420


418


204

Selling expenses

56


51


42

General and administrative expenses

126


118


108

Research and development expenses

9


7


7

Charges for restructuring, closures and impairments

6


4


12

Other operating income, net

(33)


(18)


(66)

Operating income

256


256


101

Interest income and other

14


11


12

Interest expense, net of capitalized interest

(88)


(82)


(87)

Earnings before income taxes

182


185


26

Income taxes

(40)


(41)


15

Net earnings

142


144


41

Add: net loss attributable to noncontrolling interests

1



Net earnings attributable to Weyerhaeuser common shareholders

$           143


$           144


$             41







Per Share Information



Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

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

$ 0.26


$ 0.26


$ 0.08

Dividends paid per share

$           0.17


$           0.17


$           0.15

Weighted average shares outstanding (in thousands):






Basic

542,101


545,234


537,368

Diluted

547,137


550,785


539,728

Common shares outstanding at end of period (in thousands)

542,393


546,573


537,409







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







in millions

Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

Operating income

$ 256


$ 256


$ 101

Depreciation, depletion and amortization

118


112


113

Non-operating pension and postretirement costs

8


10


7

Special items



(38)

Capitalized interest included in cost of products sold

9


9


3

Adjusted EBITDA, excluding special items*

$           391


$           387


$           186

* Non-GAAP measure - see page 9 for definition.






 

 

Weyerhaeuser Company

Q1.2013 Analyst Package

Preliminary results, subject to audit

Consolidated Balance Sheet





in millions

March 31,
2013


December 31,
2012


ASSETS




Forest Products:




Current assets:




Cash and cash equivalents

$        635


$              893

Receivables, less allowances

628


468

Receivables for taxes

65


95

Inventories

596


531

Prepaid expenses

89


83

Deferred tax assets

189


65

Total current assets

2,202


2,135

Property and equipment, net

2,785


2,859

Construction in progress

56


50

Timber and timberlands at cost, less depletion charged to disposals

3,954


3,961

Investments in and advances to equity affiliates

191


192

Goodwill

40


40

Deferred tax assets

70


189

Other assets

351


358

Assets held by variable interest entities

804


805


10,453


10,589

Real Estate:




Cash and cash equivalents

4


5

Receivables, less allowances

75


72

Real estate in process of development and for sale

724


658

Land being processed for development

897


904

Investments in and advances to equity affiliates

20


21

Deferred tax assets

204


202

Other assets

100


94

Assets held by variable interest entities

33


47


2,057


2,003

Total assets

$ 12,510


$       12,592





LIABILITIES AND EQUITY




Forest Products:




Current liabilities:




Current maturities of long-term debt

$        184


$              340

Accounts payable

357


329

Accrued liabilities

531


561

Total current liabilities

1,072


1,230

Long-term debt

3,842


3,842

Deferred income taxes

46


Deferred pension and other postretirement benefits

1,856


1,930

Other liabilities

455


499

Liabilities (nonrecourse to the company) held by variable interest entities

680


681


7,951


8,182

Real Estate:




Long-term debt

109


109

Other liabilities

172


187

Liabilities (nonrecourse to the company) held by variable interest entities

2


1


283


297

Total liabilities

8,234


8,479

Equity:




Total Weyerhaeuser shareholders' interest

4,244


4,070

Noncontrolling interests

32


43

Total equity

4,276


4,113

Total liabilities and equity

$ 12,510


$       12,592

 

Weyerhaeuser Company




Q1.2013 Analyst Package






Preliminary results, subject to audit






Consolidated Statement of Cash Flows







in millions

Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

Cash flows from operations:






Net earnings

$           142


$      144


$        41

Noncash charges (credits) to income:






Depreciation, depletion and amortization

118


112


113

Deferred income taxes, net

40


26


(6)

Pension and other postretirement benefits

20


24


(28)

Share-based compensation expense

9


12


10

Charges for impairment of assets

5


1


8

Net gains on dispositions of assets

(30)


(7)


(7)

Foreign exchange transaction (gains) losses

2


4


(7)

Change in:






Receivables less allowances


(165)


(5)

Receivable for taxes

2


30


(2)

Inventories

(20)


(68)


(40)

Real estate and land

20


(59)


(55)

Prepaid expenses

2


(13)


(8)

Accounts payable and accrued liabilities

(5)


(66)


(56)

Deposits on land positions and other assets

(7)


(1)


Pension and postretirement contributions

(36)


(37)


(35)

Other

(10)


2


17

Net cash from operations

252


(61)


(60)







Cash flows from investing activities:






Property and equipment

(59)


(35)


(54)

Timberlands reforestation

(7)


(13)


(10)

Proceeds from sale of assets

44


6


6

Proceeds of investments held by special purpose entities

110



Other

1



1

Cash from investing activities

89


(42)


(57)







Cash flows from financing activities:






Cash dividends

(92)


(93)


(81)

Change in book overdrafts


3


(29)

Payments on debt


(156)


(2)

Exercises of stock options

39


81


5

Other

2


9


(1)

Cash from financing activities

(51)


(156)


(108)







Net change in cash and cash equivalents

290


(259)


(225)

Cash and cash equivalents at beginning of period

608


898


953

Cash and cash equivalents at end of period

$           898


$      639


$      728

Cash paid (received) during the year for:






Interest, net of amount capitalized

$             61


$      111


$      116

Income taxes

$               1


$        (2)


$      (10)

 

Weyerhaeuser Company

Total Company Statistics

Q1.2013 Analyst Package




Preliminary results, subject to audit






Special Items Included in Net Earnings







in millions

Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

Net earnings

$    143


$    144


$        41

Restructuring, impairments and other charges



10

Gain on postretirement plan amendment



(34)

Tax settlements



(8)

Net earnings before special items

$    143


$    144


$         9



Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

Net earnings per diluted share

$    0.26


$    0.26


$    0.08

      Restructuring, impairments and other charges



0.02

      Gain on postretirement plan amendment



(0.06)

      Tax settlements



(0.02)

Net earnings before special items per diluted share

$   0.26


$   0.26


$   0.02


Selected Total Company Items


in millions

Q4


Q1


December 31,
2012


March 31,
2013


March 31,
2012

Depreciation, depletion and amortization:






       Cost of products sold

$      109


$      103


$      102

       Selling, general and administrative expenses

9


9


11

Total depreciation, depletion and amortization

$      118


$      112


$      113






Pension and postretirement costs:






Pension and postretirement costs allocated to business segments

$        12


$        14


$        13

Pension and postretirement costs not allocated

8


10


7

Total company pension and postretirement costs

$        20


$        24


$        20







Total increase in Forest Products working capital(1)

$      (85)


$    (334)


$    (148)

Cash spent for capital expenditures

$      (66)


$      (48)


$      (64)

(1)Working capital does not include cash balances.






 

Weyerhaeuser Company

Timberlands Segment

Q1.2013 Analyst Package




Preliminary results, subject to audit













Segment Statement of Operations








in millions


Q4.2012


Q1.2013


Q1.2012

Sales to unaffiliated customers

$     298


$      293


$     250

Intersegment sales

185


224


190

Total net sales

483


517


440

Cost of products sold

374


395


353

Gross margin

109


122


87

Selling expenses

2


3


2

General and administrative expenses

20


25


23

Research and development expenses

6


4


4

Restructuring, closures and impairments

2


2


Other operating income, net

(14)


(15)


(11)

Operating income

93


103


69

Interest income and other

1


1


1

Loss attributable to noncontrolling interest

1



Net contribution to earnings (see note 1 on page 9)

$      95


$     104


$      70








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








in millions


Q4.2012


Q1.2013


Q1.2012

Operating income

$      93


$     103


$      69

Depreciation, depletion and amortization

38


36


35

Adjusted EBITDA, excluding special items*

$   131


$     139


$   104

* Non-GAAP measure - see page 9 for definition.













Selected Segment Items










Q4.2012


Q1.2013


Q1.2012

Total increase in working capital(1)

$     (37)


$      (10)


$       (9)

Cash spent for capital expenditures

$     (16)


$      (18)


$     (12)

(1)Working capital does not include cash balances.













Segment Statistics










Q4.2012


Q1.2013


Q1.2012

Third Party 
Net Sales 
(millions)

Logs:






West

$     151


$      177


$     130

South

67


61


50

Canada

5


7


7

Total Logs

223


245


187

Pay as cut timber sales

4


1


3

Chip sales

4


3


6

Timberlands exchanges

20


2


8

Higher and better use land sales

9


3


4

Minerals, oil and gas

9


8


7

Products from international operations

26


22


25

Other products

3


9


10

Total

$     298


$      293


$     250

Logs
Third Party Sales
Realizations
(per cubic meter)

West

$  96.46


$ 105.38


$  99.10

South

$  43.30


$   43.47


$  40.48

Canada

$  38.70


$   36.61


$  36.35

International

$  24.30


$   24.01


$  22.97

Logs
Third Party Sales
Volumes
(cubic meters,
thousands)

West

1,559


1,674


1,308

South

1,563


1,399


1,228

Canada

139


204


205

International

84


68


78

Total

3,345


3,345


2,819

Logs
Fee Harvest Volumes
(cubic meters,
thousands)

West

1,876


1,995


1,679

South

3,177


2,833


2,714

International

232


197


172

Total

5,285


5,025


4,565

 

Weyerhaeuser Company

Wood Products Segment

Q1.2013 Analyst Package




Preliminary results, subject to audit













Segment Statement of Operations  








in millions


Q4.2012


Q1.2013


Q1.2012

Sales to unaffiliated customers

$     832


$     988


$     634

Intersegment sales

16


18


20

Total net sales

848


1,006


654

Cost of products sold

748


770


611

Gross margin

100


236


43

Selling expenses

24


26


21

General and administrative expenses

34


36


29

Research and development expenses

1


1


1

Charges for restructuring, closures and impairments

1



1

Other operating costs (income), net

2


(5)


5

Operating income (loss)

38


178


(14)

Interest income and other



1

Net contribution to earnings (see note 1 on page 9)

$      38


$   178


$    (13)








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








in millions


Q4.2012


Q1.2013


Q1.2012

Operating income (loss)

$      38


$   178


$    (14)

Depreciation, depletion and amortization

33


31


34

Adjusted EBITDA, excluding special items*

$      71


$   209


$      20

* Non-GAAP measure - see page 9 for definition.













Selected Segment Items










Q4.2012


Q1.2013


Q1.2012

Total decrease (increase) in working capital(1)

$         9


$   (194)


$   (112)

Cash spent for capital expenditures

$     (19)


$     (10)


$       (6)

(1)Working capital does not include cash balances.













Segment Statistics








in millions, except for third-party sales realizations

Q4.2012


Q1.2013


Q1.2012

Structural Lumber
(board feet)

Third Party Net Sales

$     376


$     451


$     291

Third Party Sales Realizations

$     366


$     440


$     311

Third Party Sales Volumes(1)

1,025


1,025


937

Production Volumes

939


1,021


958

Outside Purchase Volumes

77


102


32

Engineered Solid
Section
(cubic feet)

Third Party Net Sales

$       68


$       82


$       65

Third Party Sales Realizations

$  1,817


$  1,850


$  1,830

Third Party Sales Volumes(1)

3.7


4.4


3.6

Production Volumes

3.6


4.6


3.7

Outside Purchase Volumes

1.6


0.9


1.0

Engineered
I-joists
(lineal feet)

Third Party Net Sales

$       47


$       56


$       41

Third Party Sales Realizations

$  1,265


$  1,300


$  1,285

Third Party Sales Volumes(1)

37


43


32

Production Volumes

37


44


34

Outside Purchase Volumes

2


3


2

Oriented Strand
Board
(square feet 3/8')

Third Party Net Sales

$     194


$     236


$     111

Third Party Sales Realizations

$     290


$     359


$     197

Third Party Sales Volumes(1)

670


657


565

Production Volumes

642


662


601

Outside Purchase Volumes

60


68


32

Softwood Plywood
(square feet 3/8')

Third Party Net Sales

$       32


$       36


$       23

Third Party Sales Realizations

$     347


$     370


$     309

Third Party Sales Volumes(1)

91


99


73

Production Volumes

59


61


51

Outside Purchase Volumes

34


42


25

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

 

Weyerhaeuser Company

Cellulose Fibers Segment

Q1.2013 Analyst Package




Preliminary results, subject to audit













Segment Statement of Operations








in millions


Q4.2012


Q1.2013


Q1.2012

Total net sales

$   463


$   474


$   473

Cost of products sold

385


424


407

Gross margin

78


50


66

Selling expenses

5


4


4

General and administrative expenses

18


20


20

Research and development expenses

2


2


2

Other operating income, net

(6)


(7)


(9)

Operating income

59


31


49

Interest income and other

2



(1)

Net contribution to earnings (see note 1 on page 9)

$      61


$      31


$      48








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








in millions


Q4.2012


Q1.2013


Q1.2012

Operating income

$      59


$      31


$      49

Depreciation, depletion and amortization

40


39


37

Adjusted EBITDA, excluding special items*

$      99


$      70


$      86

* Non-GAAP measure - see page 9 for definition.













Selected Segment Items










Q4.2012


Q1.2013


Q1.2012

Total decrease (increase) in working capital(1)

$     (30)


$       (7)


$       45

Cash spent for capital expenditures

$     (26)


$     (17)


$     (45)

(1)Working capital does not include cash balances.













Segment Statistics










Q4.2012


Q1.2013


Q1.2012

Pulp
(air-dry metric
tons)

Third Party Net Sales (millions)

$     364


$     371


$     367

Third Party Sales Realizations

$     799


$     796


$     818

Third Party Sales Volumes (thousands)

456


467


449

Production Volumes (thousands)

465


445


438

Liquid
Packaging
Board
(tons)

Third Party Net Sales (millions)

$       75


$       85


$       83

Third Party Sales Realizations

$  1,085


$  1,079


$  1,181

Third Party Sales Volumes (thousands)

69


78


70

Production Volumes (thousands)

72


78


65

 

Weyerhaeuser Company

Real Estate Segment

Q1.2013 Analyst Package




Preliminary results, subject to audit












Segment Statement of Operations







in millions

Q4.2012


Q1.2013


Q1.2012

Total net sales

$   407


$   196


$   137

Cost of products sold

276


160


113

Gross margin

131


36


24

Selling expenses

25


18


15

General and administrative expenses

27


18


17

Charges for restructuring, closures and impairments

1


1


1

Other operating income, net

(1)



Operating income (loss)

79


(1)


(9)

Interest income and other

2


1


1

Net contribution to earnings

$      81


$      —


$      (8)







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







in millions

Q4.2012


Q1.2013


Q1.2012

Operating income (loss)

$      79


$      (1)


$      (9)

Depreciation, depletion and amortization

4


3


2

Capitalized interest included in cost of products sold

8


7


3

Adjusted EBITDA, excluding special items*

$      91


$        9


$      (4)

* Non-GAAP measure - see page 9 for definition.












Selected Segment Items








Q4.2012


Q1.2013


Q1.2012

Cash from operations

$       77


$     (71)


$     (32)

Cash spent for capital expenditures

$       (2)


$       (2)


$       (1)







Segment Statistics








Q4.2012


Q1.2013


Q1.2012

Net sales:






Single-family housing

$     320


$     183


$     131

Land

84


11


3

Other

3


2


3

Total net sales

$     407


$     196


$     137

Single-family homes sold

561


820


697

Single-family homes closed

842


463


349

Single-family homes sold but not closed (backlog)

774


1,131


777

Single-family cancellation rate

15.9 %


12.2 %


10.1 %

Single-family buyer traffic

14,567


17,764


14,272

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

$    381


$    394


$    376

Single-family gross margin(1)

20.0 %


19.5 %


17.2 %

(1)Single-family gross margin equals revenue less cost of sales and period costs.

 

Weyerhaeuser Company

Unallocated Items

Q1.2013 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; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve.







Contribution to Earnings







in millions

Q4.2012


Q1.2013


Q1.2012

Unallocated corporate function expenses

$       (8)


$       (3)


$       (6)

Unallocated share-based compensation

(3)


(7)


(5)

Unallocated pension & postretirement costs

(8)


(10)


(7)

Foreign exchange gains (losses)

(2)


(4)


6

Elimination of intersegment profit in inventory and LIFO(1)

8


(24)


(12)

Other


(7)


30

Operating income (loss)

(13)


(55)


6

Interest income and other

9


9


10

Net contribution to earnings

$      (4)


$    (46)


$      16

(1)We began reporting the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items in second quarter 2012. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of business operating results. Prior period results have been adjusted to reflect the change.







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







in millions

Q4.2012


Q1.2013


Q1.2012

Operating income (loss)

$    (13)


$    (55)


$        6

Depreciation, depletion and amortization

3


3


5

Non-operating pension and postretirement costs

8


10


7

Special items



(38)

Capitalized interest included in cost of products sold

1


2


Adjusted EBITDA, excluding special items*

$      (1)


$    (40)


$    (20)

* Non-GAAP measure - see below for definition.












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








Q4.2012


Q1.2013


Q1.2012

Gain on postretirement plan amendment

$      —


$      —


$       52

Restructuring, impairments and other charges



(14)

Total

$      —


$      —


$      38







Unallocated Selected Items








Q4.2012


Q1.2013


Q1.2012

Total increase in working capital(1)

$     (27)


$   (123)


$     (72)

Cash spent for capital expenditures

$       (3)


$       (1)


$      —

(1)Working capital does not include cash balances.












*Adjusted EBITDA excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA excluding special items, as we define it, is operating income adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. Adjusted 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

Top
Welcome to Weyerhaeuser's new website!

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

Update my browser now

×