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Weyerhaeuser Reports Fourth Quarter, Full Year Results

- 31 percent increase in fourth quarter earnings from continuing operations before special items compared with prior year

- 2014 included divestiture of homebuilding business, 32 percent increase in common dividend, and repurchase of over $200 million of common shares

Jan 30, 2015

FEDERAL WAY, Wash., Jan. 30, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings attributable to common shareholders of $166 million, or 31 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $43 million, or 7 cents per diluted share, on net sales of $1.8 billion from continuing operations for the same period last year.

Weyerhaeuser Company logo.

Earnings for the fourth quarter of 2014 include net after-tax gains of $21 million from special items. Excluding these items, the company reported net earnings of $145 million, or 27 cents per diluted share. This compares with net earnings from continuing operations before special items of $111 million, or 19 cents per diluted share for the same period last year.

For the full year 2014, Weyerhaeuser reported net earnings attributable to common shareholders of $1.8 billion, or $3.18 per diluted share, on net sales from continuing operations of $7.4 billion. This compares with net earnings of $540 million, or 95 cents per diluted share, on net sales from continuing operations of $7.3 billion for the same period last year.

Full year 2014 includes after-tax earnings of $998 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $84 million from special items. Excluding these items, the company reported net earnings of $700 million, or $1.25 per diluted share. This compares with net earnings from continuing operations before special items of $572 million, or 99 cents per diluted share, for the full year 2013.

"In 2014, we demonstrated our commitment to driving shareholder value," said Doyle Simons, president and chief executive officer. "During the year, we divested our homebuilding business to become a focused forest products company, achieved our 2014 operational excellence targets and made significant progress on our multi-year initiatives, and improved earnings from continuing operations by more than 20 percent compared with 2013. In addition, we increased our dividend by 32 percent and completed nearly 30 percent of a newly authorized $700 million share repurchase program. For 2015, we remain relentlessly focused on driving operational excellence to fully capitalize on our improving markets and delivering value to our shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

3Q

4Q

4Q

Full Year

(millions, except per share data)

2014

2014

2013

2014

2013

Net sales from continuing operations

$1,915

$1,788

$1,768

$7,403

$7,254

Net earnings attributable to common shareholders(1)

$1,153

$166

$43

$1,782

$540

Weighted average shares outstanding, diluted(2)

536

529

589

561

571

Earnings per diluted share

$2.15

$0.31

$0.07

$3.18

$0.95

Earnings per diluted share from continuing operations

$0.35

$0.31

$0.01

$1.40

$0.82

Net earnings from continuing operations before special items(3)

$178

$145

$111

$700

$572

Earnings per diluted share from continuing operations before special items

$0.33

$0.27

$0.19

$1.25

$0.99

Net change in cash and cash equivalents(4)

$775

($40)

($68)

$750

($63)

Cash and cash equivalents at end of period(4)

$1,620

$1,580

$830

$1,580

$830

(1) Includes net earnings from discontinued operations.
(2) Weyerhaeuser's weighted average common shares outstanding decreased during the third quarter of 2014 due to retirement of approximately 59 million shares tendered under the exchange offer associated with the divestiture of Weyerhaeuser Real Estate Company. During the third and fourth quarters of 2014, Weyerhaeuser repurchased approximately 6 million common shares. At the end of the fourth quarter the company had approximately 524 million common shares outstanding.
(3) Special items for 2014 include gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative. Special Items for 2013 are primarily related to restructuring, impairments and other charges, partially offset by tax adjustments.
(4) Net change in cash and equivalents, and cash and cash equivalents at the end of the period exclude discontinued operations for all time periods presented. Third quarter 2014 includes $707 million related to the divestiture of Weyerhaeuser Real Estate Company.

TIMBERLANDS




FINANCIAL HIGHLIGHTS (millions)

3Q 2014

4Q 2014

Change

Net sales to unaffiliated customers

$364

$359

($5)

Contribution to pre-tax earnings

$136

$143

$7

4Q 2014 Performance - Western fee harvest volumes increased and log realizations improved in domestic and Japanese markets. These improvements were partially offset by weaker demand and pricing for Chinese export logs. In the South, fee harvest volumes increased and realizations improved slightly. Earnings from disposition of non-strategic timberlands decreased by $16 million compared with the third quarter.

1Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Timberlands segment in the first quarter. In the West, the company anticipates improved domestic volumes and realizations, partially offset by lower export log volumes. Western logging and road building costs should decline seasonally. In the South, the company expects lower fee harvest volumes due to seasonally wet weather. The company anticipates higher earnings from the disposition of non-strategic timberlands in the first quarter of 2015 compared to the fourth quarter 2014.

WOOD PRODUCTS




FINANCIAL HIGHLIGHTS (millions)

3Q 2014

4Q 2014

Change

Net sales to unaffiliated customers

$1,048

$947

($101)

Contribution to pre-tax earnings

$105

$56

($49)

4Q 2014 Performance - Average realizations for lumber and oriented strand board decreased, and sales volumes declined seasonally across all product lines. Per unit manufacturing costs increased due to seasonally lower production volumes.

1Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Wood Products segment in the first quarter. The company expects slightly improved average realizations for lumber and oriented strand board, and higher sales and production volumes across all product lines, partially offset by higher log costs.

CELLULOSE FIBERS




FINANCIAL HIGHLIGHTS (millions)

3Q 2014

4Q 2014

Change

Net sales

$503

$482

($21)

Contribution to pre-tax earnings

$59

$87

$28

4Q 2014 Performance - Average pulp price realizations increased, and sales volumes fell slightly. In liquid packaging board, lower realizations and lower shipment volumes as a result of West Coast port slowdowns were offset by lower maintenance costs and higher production rates following completion of an extended outage that occurred primarily in the third quarter.

1Q 2015 Outlook - Weyerhaeuser expects significantly lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates reduced pulp price realizations, higher maintenance expense, and decreased shipment volumes for liquid packaging board due to continuing West Coast port slowdowns, partially offset by higher liquid packaging board realizations due to mix.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products. Our company is a real estate investment trust. In 2014, our continuing operations generated $7.4 billion in sales and employed approximately 12,800 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on January 30 to discuss fourth quarter results.

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

To join the conference call from within North America, dial 877-296-9413 (access code: 28339647) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28339647). Replays will be available for one week at 855-859-2056 (access code: 28339647) from within North America and at 404-537-3406 (access code: 28339647) 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 first quarter of 2015, including with respect to earnings, log realizations and demand, logging and road building costs, harvest volumes and dispositions of non-strategic timberlands in Timberlands, sales and production volumes across Wood Products product lines and realizations in lumber and oriented strand board, maintenance expenses, realizations in pulp and liquid packaging board and the effect of continuing West Coast port slowdowns on shipping volumes in Cellulose Fibers.

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 availability and costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of 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 in the Company's other filings with the SEC.

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 and disruptions in shipping and transportation also may affect the company.

View our financials in a printer-friendly PDF.

For more information contact:


Analysts - Beth Baum or Denise Merle (253) 924-2058



Media - Anthony Chavez (253) 924-7148

 

Weyerhaeuser Company










Exhibit 99.2

Q4.2014 Analyst Package











Preliminary results, subject to audit











Consolidated Statement of Operations















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Net Sales

$ 1,736


$ 1,964


$ 1,915


$  1,788


$ 1,768


$ 7,403


$ 7,254

Cost of products sold

1,361


1,499


1,504


1,399


1,412


5,763


5,716

Gross margin

375


465


411


389


356


1,640


1,538

Selling expenses

28


27


28


29


29


112


125

General and administrative expenses

88


88


73


89


105


338


404

Research and development expenses

7


7


5


8


10


27


33

Charges for restructuring, closures and impairments

19


8


10


7


370


44


377

Other operating income, net

(75)


(65)


(23)


(38)


(3)


(201)


(35)

Operating income

308


400


318


294


(155)


1,320


634

Interest income and other

9


11


7


10


16


37


55

Interest expense, net of capitalized interest

(83)


(83)


(88)


(90)


(113)


(344)


(369)

Earnings from continuing operations before income taxes

234


328


237


214


(252)


1,013


320

Income taxes

(50)


(59)


(39)


(37)


270


(185)


171

Earnings from continuing operations

184


269


198


177


18


828


491

Earnings from discontinued operations, net of income taxes

10


22


966



36


998


72

Net earnings

194


291


1,164


177


54


1,826


563

Dividends on preference shares

(11)


(11)


(11)


(11)


(11)


(44)


(23)

Net earnings attributable to Weyerhaeuser common shareholders

$    183


$    280


$ 1,153


$     166


$       43


$ 1,782


$    540


Per Share Information



Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Earnings per share attributable to Weyerhaeuser common shareholders, basic:














Continuing operations

$     0.29


$     0.44


$     0.35


$     0.32


$     0.01


$     1.41


$     0.82

Discontinued operations

0.02


0.04


1.82



0.06


1.79


0.13

Net earnings per share

$     0.31


$     0.48


$     2.17


$     0.32


$     0.07


$     3.20


$     0.95

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:














Continuing operations

$     0.29


$     0.43


$     0.35


$     0.31


$     0.01


$     1.40


$     0.82

Discontinued operations

0.02


0.04


1.80



0.06


1.78


0.13

Net earnings per share

$     0.31


$     0.47


$     2.15


$     0.31


$     0.07


$     3.18


$     0.95

Dividends paid per common share

$     0.22


$     0.22


$     0.29


$     0.29


$     0.22


$     1.02


$     0.81

Weighted average shares outstanding (in thousands):














Basic

584,915


586,061


531,913


524,838


583,610


556,705


566,329

Diluted

589,312


589,766


536,012


529,411


588,616


560,899


571,239

Common shares outstanding at end of period (in thousands)

584,961


586,698


525,485


524,474


583,548


524,474


583,548















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















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Net earnings

$      194


$      291


$   1,164


$      177


$        54


$   1,826


$      563

Earnings from discontinued operations, net of income taxes

(10)


(22)


(966)



(36)


(998)


(72)

Interest income and other

(9)


(11)


(7)


(10)


(16)


(37)


(55)

Interest expense, net of capitalized interest

83


83


88


90


113


344


369

Income taxes

50


59


39


37


(270)


185


(171)

Operating income

308


400


318


294


(155)


1,320


634

Depreciation, depletion and amortization

123


122


123


125


125


493


458

Non-operating pension and postretirement costs (credits)

(10)


(11)


(12)


(12)


9


(45)


40

Special items

(49)


(39)


(15)


(31)


366


(134)


366

Adjusted EBITDA*

$    372


$    472


$    414


$     376


$    345


$ 1,634


$ 1,498

* Non-GAAP measure - see page 8 for definition.













 

Weyerhaeuser Company








Q4.2014 Analyst Package










Preliminary results, subject to audit










Consolidated Balance Sheet











in millions

March 31,
2014


June 30,
2014


September 30,
2014


December 31,
2014


December 31,
2013




ASSETS










Current assets:










Cash and cash equivalents

$       777


$       845


$    1,620


$    1,580


$       830

Receivables, less allowances

543


590


583


525


518

Receivables for taxes

34


37


23


25


101

Inventories

626


596


578


595


542

Prepaid expenses

101


106


97


80


117

Deferred tax assets

186


128


111


228


130

Current assets of discontinued operations

48


988




88

Total current assets

2,315


3,290


3,012


3,033


2,326

Property and equipment, net

2,596


2,599


2,534


2,623


2,689

Construction in progress

140


157


215


131


112

Timber and timberlands at cost, less depletion charged to disposals

6,574


6,571


6,546


6,530


6,580

Investments in and advances to equity affiliates

189


188


186


188


190

Goodwill

40


40


40


40


42

Deferred tax assets

1




8


5

Other assets

354


419


292


289


324

Restricted financial investments held by variable interest entities

615


615


615


615


615

Noncurrent assets of discontinued operations

1,762


1,827




1,694

Total assets

$14,586


$15,706


$13,440


$13,457


$14,577











LIABILITIES AND EQUITY










Current liabilities:










Notes payable

$           2


$        —


$        —


$        —


$           2

Accounts payable

365


335


351


331


343

Accrued liabilities

582


597


606


587


629

Current liabilities of discontinued operations

123


137




154

Total current liabilities

1,072


1,069


957


918


1,128

Long-term debt

4,891


4,891


4,891


4,891


4,891

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

511


511


511


511


511

Deferred income taxes

387


410


338


206


285

Deferred pension and other postretirement benefits

471


422


569


1,319


516

Other liabilities

334


334


318


308


382

Noncurrent liabilities of discontinued operations

35


926




32

Total liabilities

7,701


8,563


7,584


8,153


7,745

Equity:










Total Weyerhaeuser shareholders' interest

6,852


7,092


5,856


5,304


6,795

Noncontrolling interests

3


2




3

Noncontrolling interests in discontinued operations

30


49




34

Total equity

6,885


7,143


5,856


5,304


6,832

Total liabilities and equity

$14,586


$15,706


$13,440


$13,457


$14,577

 

Weyerhaeuser Company












Q4.2014 Analyst Package














Preliminary results, subject to audit














Consolidated Statement of Cash Flows















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Cash flows from operations:














Net earnings

$     194


$     291


$  1,164


$     177


$       54


$ 1,826


$     563

Noncash charges (credits) to income:














Depreciation, depletion and amortization

126


126


123


125


129


500


472

Deferred income taxes, net

36


89


45


35


(102)


205


(29)

Pension and other postretirement benefits

(47)


(44)


(13)


(48)


22


(152)


101

Share-based compensation expense

9


11


9


11


8


40


42

Charges for impairment of assets


1



1


367


2


372

Net gains on dispositions of assets and operations

(25)


(21)


(1,002)


(2)


(16)


(1,050)


(58)

Foreign exchange transaction (gains) losses

14


(12)


13


12


1


27


7

Change in:














Receivables less allowances

(1)


(47)


20


57


85


29


(27)

Receivable for taxes

67


(3)


13


(1)


(70)


76


(6)

Inventories

(88)


34


8


(20)


(13)


(66)


(13)

Real estate and land

(72)


(35)


(26)



13


(133)


(166)

Prepaid expenses

3


(3)


6


11


(10)


17


(26)

Accounts payable and accrued liabilities

(80)


(17)


21


(22)


(96)


(98)


(51)

Deposits on land positions and other assets

12


(4)


7



(7)


15


(18)

Pension and postretirement contributions

(33)


(30)


(22)


(16)


(33)


(101)


(137)

Other

(6)


(14)


(13)


(16)


16


(49)


(22)

Net cash from operations

109


322


353


304


348


1,088


1,004















Cash flows from investing activities:














Property and equipment

(51)


(83)


(105)


(115)


(110)


(354)


(261)

Timberlands reforestation

(14)


(11)


(7)


(9)


(4)


(41)


(32)

Acquisition of Longview Timber LLC, net of cash acquired







(1,581)

Net proceeds from Real Estate Divestiture, net of cash divested



707




707


Proceeds from sale of assets

19


1


4


4


5


28


20

Net proceeds of investments held by special purpose entities







22

Other



25


(4)


(2)


21


3

Cash from investing activities

(46)


(93)


624


(124)


(111)


361


(1,829)















Cash flows from financing activities:














Net proceeds from issuance of common shares







897

Net proceeds from issuance of preference shares







669

Net proceeds from issuance of debt





550



1,044

Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt


887





887


Deposit of WRECO debt proceeds into escrow


(887)





(887)


Cash dividends on common shares

(129)


(128)


(154)


(152)


(128)


(563)


(458)

Cash dividends on preference shares


(11)


(11)


(22)


(23)


(44)


(23)

Change in book overdrafts

(6)



(11)



(1)


(17)


7

Payments on debt





(1,227)



(1,567)

Exercises of stock options

15


39


30


35


21


119


162

Repurchase of common stock



(123)


(80)



(203)


Other

2


(1)


4


(1)


9


4


31

Cash from financing activities

(118)


(101)


(265)


(220)


(799)


(704)


762















Net change in cash and cash equivalents

(55)


128


712


(40)


(562)


745


(63)

Cash and cash equivalents at beginning of period

835


780


908


1,620


1,397


835


898

Cash and cash equivalents at end of period

$     780


$     908


$  1,620


$  1,580


$     835


$ 1,580


$     835

Cash paid (received) during the year for:














Interest, net of amount capitalized

$     101


$       52


$     100


$       66


$       91


$    319


$     366

Income taxes

$     (50)


$         5


$         5


$         3


$       12


$     (37)


$         8

Noncash investing and financing activity:














Acquisition of Longview Timber LLC, debt assumed

$       —


$       —


$       —


$       —


$       —


$      —


$  1,070

Common shares tendered in WRECO divestiture

$       —


$       —


$  1,954


$       —


$       —


$ 1,954


$       —

 

Weyerhaeuser Company









Total Company Statistics

Q4.2014 Analyst Package












Preliminary results, subject to audit














Special Items Included in Net Earnings















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Net earnings attributable to Weyerhaeuser common shareholders

$   183


$   280


$1,153


$    166


$      43


$1,782


$    540

Restructuring, impairments and other charges

13


5


6


4


247


28


247

Gain on sale of non-strategic asset

(14)






(14)


Gain on postretirement plan amendment

(29)


(29)


(15)


(25)



(98)


Loss on early extinguishment of debt





25



25

Tax adjustments





(168)



(168)

Net earnings attributable to Weyerhaeuser common shareholders before special items

153


256


1,144


145


147


1,698


644

Earnings from discontinued operations, net of income taxes

(10)


(22)


(966)



(36)


(998)


(72)

Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items

$   143


$   234


$   178


$    145


$    111


$    700


$    572
















Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$  0.31


$  0.47


$  2.15


$   0.31


$   0.07


$   3.18


$   0.95

Restructuring, impairments and other charges

0.02


0.01


0.01


0.01


0.42


0.05


0.42

Gain on sale of non-strategic asset

(0.02)






(0.02)


Gain on postretirement plan amendment

(0.05)


(0.04)


(0.03)


(0.05)



(0.18)


Loss on early extinguishment of debt





0.05



0.05

Tax adjustments





(0.29)



(0.30)

Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items

0.26


0.44


2.13


0.27


0.25


3.03


1.12

Earnings from discontinued operations, net of income taxes

(0.02)


(0.04)


(1.80)



(0.06)


(1.78)


(0.13)

Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items

$  0.24


$  0.40


$  0.33


$   0.27


$   0.19


$   1.25


$   0.99


Selected Total Company Items


in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31, 2014


Jun 30, 2014


Sep 30, 2014


Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013

Depreciation, depletion and amortization:














Cost of products sold

$    117


$    117


$    117


$     119


$     120


$     470


$     435

Selling, general and administrative expenses

6


5


6


6


5


23


23

Total depreciation, depletion and amortization

$    123


$    122


$    123


$     125


$     125


$     493


$     458















Pension and postretirement costs:














Pension and postretirement costs allocated to business segments

$      10


$      12


$      11


$       12


$       14


$       45


$       56

Pension and postretirement costs (credits) not allocated

(10)


(11)


(12)


(12)


9


(45)


40

Total company pension and postretirement costs

$      —


$        1


$       (1)


$       —


$       23


$       —


$       96















Total decrease (increase) in working capital(1)

$   (170)


$      49


$    106


$         6


$     (17)


$       (9)


$     (52)

Cash spent for capital expenditures

$     (63)


$     (92)


$   (112)


$   (124)


$   (113)


$   (391)


$   (283)

(1)Working capital does not include cash balances.














 

Weyerhaeuser Company









Timberlands Segment

Q4.2014 Analyst Package












Preliminary results, subject to audit





























Segment Statement of Operations
















in millions


Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Sales to unaffiliated customers

$       377


$       397


$       364


$       359


$       364


$    1,497


$    1,343

Intersegment sales

238


186


218


225


215


867


799

Total net sales

615


583


582


584


579


2,364


2,142

Cost of products sold

431


399


432


424


425


1,686


1,592

Gross margin

184


184


150


160


154


678


550

Selling expenses

2


2


2


1


2


7


10

General and administrative expenses

26


23


23


25


26


97


103

Research and development expenses

4


3


4


5


6


16


19

Charges for restructuring, closures and impairments



1




1


2

Other operating income, net

(12)


(14)


(16)


(14)


(13)


(56)


(50)

Operating income

164


170


136


143


133


613


466

Interest income and other





1



4

Net contribution to earnings

$      164


$      170


$      136


$      143


$      134


$      613


$      470
















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
















in millions


Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Operating income

$      164


$      170


$      136


$      143


$      133


$      613


$      466

Depreciation, depletion and amortization

52


51


51


53


51


207


166

Adjusted EBITDA*

$      216


$      221


$      187


$      196


$      184


$      820


$      632

* Non-GAAP measure - see page 8 for definition.





























Selected Segment Items


















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Total decrease (increase) in working capital(1)

$       (29)


$       (15)


$         25


$           8


$         (7)


$       (11)


$         (7)

Cash spent for capital expenditures

$       (19)


$       (18)


$       (19)


$       (18)


$       (21)


$       (74)


$       (73)

(1)Working capital does not include cash balances.





























Segment Statistics

















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Third Party
Net Sales
(millions)

Logs:














West

$       257


$       261


$       227


$       227


$       230


$       972


$       828

South

62


60


69


66


64


257


256

Canada

6


1


5


10


4


22


19

Total logs

325


322


301


303


298


1,251


1,103

Chip sales

3


2


4


3


2


12


9

Timberlands exchanges

4


28


17


3


21


52


65

Higher and better use land sales

3


7


4


5


9


19


19

Minerals, oil and gas

7


8


10


7


6


32


32

Products from international operations

24


26


22


24


22


96


90

Other products

11


4


6


14


6


35


25

Total

$       377


$       397


$       364


$       359


$       364


$    1,497


$    1,343

Logs
Third Party Sales
Realizations
(per cubic meter)

West

$  114.46


$  109.13


$  102.23


$  106.73


$  104.91


$  108.19


$  107.36

South

$    44.88


$    45.16


$    45.30


$    45.56


$    43.72


$    45.23


$    43.49

Canada

$    35.30


$    38.04


$    37.75


$    38.82


$    38.68


$    37.58


$    37.71

International

$    16.99


$    16.27


$    19.95


$    18.64


$    23.05


$    18.06


$    24.22

Logs
Third Party Sales
Volumes
(cubic meters, thousands)

West

2,246


2,390


2,223


2,121


2,185


8,980


7,708

South

1,385


1,339


1,500


1,454


1,468


5,678


5,888

Canada

156


30


152


254


128


592


511

International

147


139


170


148


112


604


357

Total

3,934


3,898


4,045


3,977


3,893


15,854


14,464

Logs
Fee Harvest Volumes
(cubic meters, thousands)

West

2,875


2,888


2,656


2,754


2,686


11,173


8,907

South

2,866


2,715


2,950


3,145


3,007


11,676


11,596

International

249


249


232


260


243


990


818

Total

5,990


5,852


5,838


6,159


5,936


23,839


21,321

 

Weyerhaeuser Company









Wood Products Segment

Q4.2014 Analyst Package












Preliminary results, subject to audit





























Segment Statement of Operations  
















in millions


Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Sales to unaffiliated customers

$    898


$ 1,077


$ 1,048


$     947


$     926


$   3,970


$    4,009

Intersegment sales

19


21


20


20


16


80


71

Total net sales

917


1,098


1,068


967


942


4,050


4,080

Cost of products sold

791


939


910


855


826


3,495


3,385

Gross margin

126


159


158


112


116


555


695

Selling expenses

25


23


22


24


24


94


98

General and administrative expenses

37


30


31


32


32


130


141

Research and development expenses

1


2



1


2


4


6

Charges for restructuring, closures and impairments


2




11


2


13

Other operating income, net

(1)




(1)


(1)


(2)


(4)

Operating income

64


102


105


56


48


327


441

Interest income and other







Net contribution to earnings

$     64


$   102


$   105


$      56


$      48


$    327


$      441
















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
















in millions


Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Operating income

$     64


$   102


$   105


$      56


$      48


$    327


$      441

Depreciation, depletion and amortization

29


30


30


30


30


119


123

Special items





10



10

Adjusted EBITDA*

$     93


$   132


$   135


$      86


$      88


$    446


$      574

* Non-GAAP measure - see page 8 for definition.





























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


















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Charges for restructuring, closures and impairments

$      —


$      —


$      —


$       —


$     (10)


$       —


$       (10)
















Selected Segment Items


















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Total decrease (increase) in working capital(1)

$   (137)


$      29


$      41


$       29


$       40


$      (38)


$         (5)

Cash spent for capital expenditures

$     (18)


$     (38)


$     (56)


$     (78)


$     (61)


$    (190)


$     (113)

(1)Working capital does not include cash balances.





























Segment Statistics
















in millions, except for third-party sales realizations

Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Structural Lumber
(board feet)

Third party net sales

$    427


$    515


$    500


$     459


$     440


$   1,901


$    1,873

Third party sales realizations

$    432


$    427


$    431


$     415


$     413


$      426


$       422

Third party sales volumes(1)

989


1,206


1,162


1,106


1,066


4,463


4,436

Production volumes

1,009


1,081


1,049


1,013


970


4,152


4,084

Outside purchase volumes

78


82


91


94


83


345


354

Engineered Solid
Section
(cubic feet)

Third party net sales

$      90


$    114


$    104


$       94


$       90


$      402


$       353

Third party sales realizations

$ 1,959


$ 1,976


$ 2,031


$  2,060


$  2,006


$   2,005


$    1,936

Third party sales volumes(1)

4.6


5.8


5.1


4.5


4.5


20.0


18.2

Production volumes

4.9


5.7


5.2


4.6


4.2


20.4


18.0

Outside purchase volumes

1.8


0.5




0.2


2.3


1.8

Engineered
I-joists
(lineal feet)

Third party net sales

$      59


$      81


$      74


$       63


$       63


$      277


$       247

Third party sales realizations

$ 1,454


$ 1,470


$ 1,540


$  1,549


$  1,485


$   1,502


$    1,393

Third party sales volumes(1)

40


55


49


40


42


184


177

Production volumes

44


55


50


33


38


182


168

Outside purchase volumes

1


3


1


2


2


7


8

Oriented Strand
Board
(square feet 3/8')

Third party net sales

$    148


$    159


$    157


$     146


$     161


$      610


$       809

Third party sales realizations

$    230


$    226


$    215


$     206


$     237


$      219


$       292

Third party sales volumes(1)

641


706


732


709


678


2,788


2,772

Production volumes

657


681


717


694


673


2,749


2,723

Outside purchase volumes

53


51


52


61


54


217


227

Softwood Plywood
(square feet 3/8')

Third party net sales

$      30


$      35


$      42


$       36


$       29


$      143


$       144

Third party sales realizations

$    332


$    348


$    381


$     384


$     339


$      362


$       358

Third party sales volumes(1)

90


102


110


93


87


395


402

Production volumes

59


60


72


61


55


252


241

Outside purchase volumes

33


36


31


42


40


142


155

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

 

Weyerhaeuser Company









Cellulose Fibers Segment

Q4.2014 Analyst Package












Preliminary results, subject to audit





























Segment Statement of Operations
















in millions


Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Total net sales

$   461


$   490


$   503


$    482


$    478


$1,936


$  1,902

Cost of products sold

390


381


427


379


397


1,577


1,621

Gross margin

71


109


76


103


81


359


281

Selling expenses

4


4


3


4


3


15


17

General and administrative expenses

20


20


18


18


17


76


79

Research and development expenses

2


2


1


2


2


7


8

Other operating income, net

(9)


(8)


(6)


(8)


(2)


(31)


(20)

Operating income

54


91


60


87


61


292


197

Interest income and other



(1)



4


(1)


3

Net contribution to earnings

$     54


$     91


$     59


$      87


$      65


$    291


$     200
















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
















in millions


Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Operating income

$     54


$     91


$     60


$      87


$      61


$    292


$     197

Depreciation, depletion and amortization

38


39


39


39


40


155


156

Adjusted EBITDA*

$     92


$   130


$     99


$    126


$    101


$    447


$     353

* Non-GAAP measure - see page 8 for definition.





























Selected Segment Items


















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Total decrease (increase) in working capital(1)

$       31


$     (37)


$       39


$     (47)


$     (12)


$     (14)


$         12

Cash spent for capital expenditures

$     (26)


$     (35)


$     (36)


$     (26)


$     (30)


$   (123)


$       (92)

(1)Working capital does not include cash balances.





























Segment Statistics


















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Pulp
(air-dry metric tons)

Third party net sales (millions)

$    363


$    383


$    408


$     405


$     390


$  1,559


$   1,501

Third party sales realizations

$    825


$    845


$    858


$     886


$     818


$     854


$      804

Third party sales volumes (thousands)

440


454


474


458


477


1,826


1,866

Production volumes (thousands)

459


467


465


468


450


1,859


1,815

Liquid
Packaging
Board
(tons)

Third party net sales (millions)

$      80


$      87


$      80


$       63


$       72


$     310


$      326

Third party sales realizations

$ 1,122


$ 1,165


$ 1,185


$  1,028


$  1,029


$  1,129


$   1,068

Third party sales volumes (thousands)

71


75


68


60


70


274


305

Production volumes (thousands)

78


79


57


78


85


292


307

 

 

Weyerhaeuser Company









Unallocated Items

Q4.2014 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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve.















Contribution to Earnings















in millions

Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Unallocated corporate function expenses

$       (7)


$       (7)


$       (3)


$       (7)


$     (12)


$     (24)


$     (38)

Unallocated share-based compensation

3


(6)


1


(7)


(5)


(9)


(8)

Unallocated pension & postretirement credits (costs)

55


56


35


50


(9)


196


(40)

Foreign exchange gains (losses)

(15)


13


(14)


(11)


(1)


(27)


(7)

Elimination of intersegment profit in inventory and LIFO

(19)


(1)


12


(2)


6


(10)


15

Other

9


(18)


(14)


(15)


(376)


(38)


(392)

Operating income (loss)

26


37


17


8


(397)


88


(470)

Interest income and other

9


11


8


10


11


38


48

Net contribution to earnings from continuing operations(1)

$     35


$     48


$     25


$      18


$  (386)


$    126


$  (422)

(1)We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately.
Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders' interest.





























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















in millions

Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Operating income (loss)

$     26


$     37


$     17


$        8


$  (397)


$      88


$   (470)

Depreciation, depletion and amortization

4


2


3


3


4


12


13

Non-operating pension and postretirement costs (credits)

(10)


(11)


(12)


(12)


9


(45)


40

Special items

(49)


(39)


(15)


(31)


356


(134)


356

Adjusted EBITDA*

$    (29)


$    (11)


$      (7)


$    (32)


$    (28)


$    (79)


$     (61)

* Non-GAAP measure - see below for definition.




























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
















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Gain on postretirement plan amendment

$      45


$      45


$      23


$       38


$       —


$     151


$       —

Restructuring, impairments and other charges

(18)


(6)


(8)


(7)


(356)


(39)


(356)

Gain on sale of non-strategic asset

22






22


Total

$      49


$      39


$     15


$      31


$  (356)


$     134


$   (356)















Unallocated Selected Items
















Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Total decrease (increase) in working capital(1)

$     (35)


$       72


$         1


$       16


$     (38)


$       54


$     (52)

Cash spent for capital expenditures

$       —


$       (1)


$       (1)


$       (2)


$       (1)


$       (4)


$       (5)

(1)Working capital does not include cash balances.




























*Adjusted EBITDAis a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

 

Weyerhaeuser Company









Discontinued Operations

Q4.2014 Analyst Package












Preliminary results, subject to audit




























Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items.















Discontinued Operations Statement of Operations















in millions

Q1.2014


Q2.2014


Q3.2014


Q4.2014


Q4.2013


YTD.2014


YTD.2013

Total net sales

$    248


$    317


$        8


$       —


$     488


$     573


$  1,275

Income (loss) from operations

$      16


$      27


$       (1)


$       —


$       58


$       42


$     114

Income taxes

(6)


(5)


(5)



(22)


(16)


(42)

Net earnings (loss) from operations

10


22


(6)



36


26


72

Net gain on divestiture



972




972


Net earnings from discontinued operations

$     10


$     22


$   966


$      —


$      36


$    998


$      72

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weyerhaeuser-reports-fourth-quarter-full-year-results-300028371.html

SOURCE Weyerhaeuser Company

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