Newsroom
Weyerhaeuser reports third quarter results
-- Earnings increased approximately 45 percent compared with second quarter
-- Closed sale of liquid packaging board business for $285 million
-- Repurchased $306 million of common shares, completing $2 billion accelerated commitment
Oct 28, 2016
SEATTLE, Oct. 28, 2016 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings to common shareholders of $227 million, or $0.30 per diluted share, on net sales of $1.7 billion. This compares with net earnings of $180 million, or $0.35 per diluted share, on net sales of $1.4 billion for the same period last year.
Third quarter results include after-tax earnings of $65 million from discontinued operations, which included a net gain of $41 million on the divestiture of the liquid packaging board business. Third quarter results also include net after-tax charges of $10 million from special items. Excluding discontinued operations and special items, the company reported net earnings of $172 million, or $0.23 per diluted share for the third quarter. This compares with net earnings from continuing operations before special items of $121 million for the same period last year and $130 million for second quarter of 2016.
"Our employees delivered strong results in the quarter as Timberlands drove improved performance through merger synergies and Wood Products reported its best third quarter in over a decade," said Doyle R. Simons, president and CEO. "We also completed our $2 billion accelerated share repurchase and closed the sale of our liquid packaging business. We remain committed to driving value for shareholders through a focused portfolio, industry leading performance, and disciplined capital allocation. The integration with Plum Creek continues to go very well and we are confident we will fully capture the cost and operational synergies from the merger."
WEYERHAEUSER FINANCIAL HIGHLIGHTS
Weyerhaeuser merged with Plum Creek Timber Company, Inc. (Plum Creek) on February 19, 2016. The financial statements presented within this release do not include Plum Creek financial results for any period prior to the February 19, 2016 merger date.
During 2016, Weyerhaeuser announced the sale of its Cellulose Fibers pulp mills, liquid packaging board business, and printing papers joint venture. Results for the Cellulose Fibers segment are presented as discontinued operations. All periods presented have been revised to separate results of discontinued operations from the results of our continuing operations.
WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2016 |
2016 |
2015 |
|||
(millions, except per share data) |
2Q |
3Q |
3Q |
|||
Net sales |
$1,655 |
$1,709 |
$1,355 |
|||
Net earnings attributable to Weyerhaeuser common shareholders |
$157 |
$227 |
$180 |
|||
Weighted average shares outstanding, diluted(1) |
748 |
754 |
517 |
|||
Earnings per diluted share |
$0.21 |
$0.30 |
$0.35 |
|||
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(2) |
$130 |
$172 |
$121 |
|||
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$0.17 |
$0.23 |
$0.23 |
|||
Adjusted EBITDA(3) |
$413 |
$434 |
$245 |
(1) In the first quarter of 2016, Weyerhaeuser issued approximately 279 million shares in conjunction with the Plum Creek merger. During 2016, Weyerhaeuser has repurchased approximately 68 million shares to complete our $2 billion accelerated repurchase commitment, part of the $2.5 billion repurchase authorization that was announced in conjunction with the merger transaction. In the third quarter of 2016, the company issued approximately 23 million shares as a result of the conversion of its mandatory convertible preference shares. At the end of the third quarter of 2016, the company had approximately 748 million common shares outstanding.
(2) After-tax special items for the third quarter of 2016 represent $10 million of Plum Creek merger-related costs. There were no special items in the third quarter of 2015. After-tax special items from continuing operations for second quarter 2016 were $11 million.
(3) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations, adjusted for depreciation, depletion, amortization, basis in real estate sold, pension and postretirement costs not allocated to business segments and special items. Adjusted EBITDA excludes results from joint ventures. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. A reconciliation of Adjusted EBITDA to GAAP earnings is included within this release.
TIMBERLANDS
FINANCIAL HIGHLIGHTS (millions) |
2Q 2016 |
3Q 2016 |
Change | ||
Net sales |
$664 |
$700 |
$36 | ||
Contribution to pre-tax earnings |
$125 |
$122 |
($3) | ||
Adjusted EBITDA |
$220 |
$223 |
$3 |
3Q 2016 Performance - Sales volumes for Southern and Northern logs increased seasonally. Western fee harvest volumes declined and average realizations for Western logs were comparable to the second quarter, as improved domestic realizations were offset by slightly lower realizations for export logs. Silviculture and road costs increased seasonally, and the business benefited from merger-related synergies and operational excellence initiatives.
4Q 2016 Outlook - Weyerhaeuser anticipates modestly higher earnings and Adjusted EBITDA from the Timberlands segment in the fourth quarter. In the West, the company expects slightly higher realizations for domestic and export logs, partially offset by lower fee harvest volumes. In the South, the company anticipates increased fee harvest volumes and seasonally lower silviculture expense.
REAL ESTATE, ENERGY AND NATURAL RESOURCES
FINANCIAL HIGHLIGHTS (millions) |
2Q 2016 |
3Q 2016 |
Change | ||
Net sales |
$38 |
$48 |
$10 | ||
Contribution to pre-tax earnings |
$12 |
$15 |
$3 | ||
Adjusted EBITDA |
$28 |
$37 |
$9 |
3Q 2016 Performance - Earnings and Adjusted EBITDA improved compared to the second quarter. Real Estate sales increased, while contribution to earnings was impacted by higher land basis on the mix of properties sold. Earnings from Energy and Natural Resources operations were slightly higher.
4Q 2016 Outlook - Weyerhaeuser expects improved earnings and significantly higher Adjusted EBITDA from increased Real Estate sales in the fourth quarter.
WOOD PRODUCTS
FINANCIAL HIGHLIGHTS (millions) |
2Q 2016 |
3Q 2016 |
Change | ||
Net sales |
$1,168 |
$1,194 |
$26 | ||
Contribution to pre-tax earnings |
$156 |
$170 |
$14 | ||
Adjusted EBITDA |
$189 |
$203 |
$14 |
3Q 2016 Performance - Average sales realizations for oriented strand board increased 7 percent and lumber sales realizations rose slightly compared to the second quarter. Lumber sales volumes and operating rates were slightly lower and log costs for Canadian and Western mills increased. Manufacturing costs for oriented strand board improved due to operational excellence initiatives and higher operating rates.
4Q 2016 Outlook - Weyerhaeuser expects seasonally lower earnings and Adjusted EBITDA from the Wood Products segment in the fourth quarter compared with the third quarter due to lower sales volumes across most product lines and seasonally weaker average sales realizations for oriented strand board. Fourth quarter Adjusted EBITDA, however, should be nearly double the fourth quarter of 2015.
DISCONTINUED OPERATIONS
Discontinued operations include the company's Cellulose Fibers segment, which consists of pulp mills, a liquid packaging board facility, and a printing papers joint venture. The sale of the liquid packaging board business closed on August 31, 2016. These results correspond to assets and liabilities that have been classified as discontinued operations on our balance sheet.
FINANCIAL HIGHLIGHTS (millions) |
2Q 2016 |
3Q 2016 |
Change | |||
Total net sales |
$456 |
$420 |
($36) | |||
Earnings from discontinued operations before income taxes |
$52 |
$47 |
($5) | |||
Income taxes |
($14) |
($23) |
($9) | |||
Net earnings from operations |
$38 |
$24 |
($14) | |||
Net gain on divestiture of Liquid Packaging Board |
— |
$41 |
$41 | |||
Net earnings from discontinued operations |
$38 |
$65 |
$27 | |||
3Q 2016 Performance - Improved sales realizations for pulp were more than offset by increased maintenance expense due to additional scheduled maintenance outage days. Third quarter includes a net after tax gain of $41 million on the divestiture of the liquid packaging board business.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 13 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 February 2016, we merged with Plum Creek Timber Company, Inc. In 2015, Weyerhaeuser and Plum Creek, on a combined basis, generated approximately $8.5 billion in net sales and employed nearly 14,000 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 October 28 to discuss third quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 28.
To join the conference call from within North America, dial 877-296-9413 (access code: 3192814) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 3192814). Replays will be available for two weeks at 855-859-2056 (access code: 3192814) from within North America and at 404-537-3406 (access code: 3192814) 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 our current expectations and various assumptions that are subject to risks and uncertainties. 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, expectations 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 and similar words.
This release contains forward-looking statements regarding the company's expectations during the fourth quarter of 2016, including with respect to: earnings and Adjusted EBITDA; cost and operational synergies from the merger with Plum Creek; domestic and export log realizations, harvest volumes and silviculture expense; real estate sales; and sales volumes across Wood Products product lines and expected realizations for oriented strand board.
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, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;
- market demand for our products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
- performance of our manufacturing operations, including maintenance requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign producers;
- raw material availability and prices;
- the effect of weather;
- the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
- energy prices;
- market demand for the company's products, including market demand for our timberland properties that have higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
- the successful execution of our internal plans and strategic initiatives,
- the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;
- transportation and labor availability and costs;
- federal tax policies;
- the effect of forestry, land use, environmental and other governmental regulations;
- legal proceedings;
- performance of pension fund investments and related derivatives;
- the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;
- changes in accounting principles;
- changes in implementation of acquisition accounting; and
- other factors described under "Risk Factors" in our 2015 Annual Report on Form 10-K and in our Registration Statement on Form S-4/A filed on December 23, 2015.
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, yen 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.
For more information contact:
Analysts - Beth Baum or Krista Kochivar (206) 539-3907
Media - Kate Tate (206) 539-4420
RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS
We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income for the business segments, as those are the most directly comparable U.S. GAAP measures for each.
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2016:
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
Adjusted EBITDA by Segment: |
|||||||||||||||||||
Net earnings |
$ |
227 | |||||||||||||||||
Earnings from discontinued operations, net of income taxes |
(65) | ||||||||||||||||||
Interest expense, net of capitalized interest |
114 | ||||||||||||||||||
Income taxes |
22 | ||||||||||||||||||
Net contribution to earnings |
$ |
122 |
$ |
15 |
$ |
170 |
$ |
(9) |
$ |
298 | |||||||||
Equity (earnings) loss from joint ventures |
— |
(1) |
— |
(8) |
(9) | ||||||||||||||
Interest income and other |
— |
— |
— |
(15) |
(15) | ||||||||||||||
Operating income |
122 |
14 |
170 |
(32) |
274 | ||||||||||||||
Depreciation, depletion and amortization |
101 |
4 |
33 |
— |
138 | ||||||||||||||
Basis of real estate sold |
— |
19 |
— |
— |
19 | ||||||||||||||
Non-operating pension and postretirement credits |
— |
— |
— |
(11) |
(11) | ||||||||||||||
Special items(1) |
— |
— |
— |
14 |
14 | ||||||||||||||
Adjusted EBITDA |
$ |
223 |
$ |
37 |
$ |
203 |
$ |
(29) |
$ |
434 |
(1) Pre-tax special items include $14 million of Plum Creek merger-related costs. | |||||||||||||||||||
The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2016: | |||||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
Adjusted EBITDA by Segment: |
|||||||||||||||||||
Net earnings |
$ |
168 | |||||||||||||||||
Earnings from discontinued operations, net of income taxes |
(38) | ||||||||||||||||||
Interest expense, net of capitalized interest |
114 | ||||||||||||||||||
Income taxes |
31 | ||||||||||||||||||
Net contribution to earnings |
$ |
125 |
$ |
12 |
$ |
156 |
$ |
(18) |
$ |
275 | |||||||||
Equity (earnings) loss from joint ventures |
— |
— |
— |
(7) |
(7) | ||||||||||||||
Interest income and other |
— |
— |
— |
(10) |
(10) | ||||||||||||||
Operating income |
125 |
12 |
156 |
(35) |
258 | ||||||||||||||
Depreciation, depletion and amortization |
95 |
3 |
33 |
2 |
133 | ||||||||||||||
Basis of real estate sold |
— |
13 |
— |
— |
13 | ||||||||||||||
Non-operating pension and postretirement credits |
— |
— |
— |
(10) |
(10) | ||||||||||||||
Special items(1) |
— |
— |
— |
19 |
19 | ||||||||||||||
Adjusted EBITDA |
$ |
220 |
$ |
28 |
$ |
189 |
$ |
(24) |
$ |
413 |
(1) Pre-tax special items include: $8 million of Plum Creek merger-related costs and $11 million of legal expense. | |||||||||||||||||||
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2015: | |||||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
Adjusted EBITDA by Segment: |
|||||||||||||||||||
Net earnings |
$ |
191 | |||||||||||||||||
Earnings from discontinued operations, net of income taxes |
(59) | ||||||||||||||||||
Interest expense, net of capitalized interest |
87 | ||||||||||||||||||
Income taxes |
(44) | ||||||||||||||||||
Net contribution to earnings |
$ |
107 |
$ |
19 |
$ |
85 |
$ |
(36) |
$ |
175 | |||||||||
Equity (earnings) loss from joint ventures |
— |
— |
— |
— |
— | ||||||||||||||
Interest income and other |
— |
— |
— |
(9) |
(9) | ||||||||||||||
Operating income |
107 |
19 |
85 |
(45) |
166 | ||||||||||||||
Depreciation, depletion and amortization |
51 |
— |
26 |
2 |
79 | ||||||||||||||
Basis of real estate sold |
— |
2 |
— |
— |
2 | ||||||||||||||
Non-operating pension and postretirement credits |
— |
— |
— |
(2) |
(2) | ||||||||||||||
Adjusted EBITDA |
$ |
158 |
$ |
21 |
$ |
111 |
$ |
(45) |
$ |
245 |
Weyerhaeuser Company |
Exhibit 99.2 | ||||||||||||||||||
Q3.2016 Analyst Package |
|||||||||||||||||||
Preliminary results (unaudited) |
|||||||||||||||||||
Consolidated Statement of Operations(1)(2) | |||||||||||||||||||
in millions |
Q2 |
Q3 |
Year-to-date | ||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Net sales |
$ |
1,655 |
$ |
1,709 |
$ |
1,355 |
$ |
4,769 |
$ |
3,980 |
|||||||||
Cost of products sold |
1,258 |
1,314 |
1,073 |
3,661 |
3,123 |
||||||||||||||
Gross margin |
397 |
395 |
282 |
1,108 |
857 |
||||||||||||||
Selling expenses |
22 |
22 |
24 |
67 |
73 |
||||||||||||||
General and administrative expenses |
94 |
78 |
55 |
248 |
184 |
||||||||||||||
Research and development expenses |
4 |
5 |
4 |
14 |
12 |
||||||||||||||
Charges for integration and restructuring, closures and asset impairments |
14 |
16 |
2 |
141 |
16 |
||||||||||||||
Other operating costs (income), net |
5 |
— |
31 |
(47) |
56 |
||||||||||||||
Operating income from continuing operations |
258 |
274 |
166 |
685 |
516 |
||||||||||||||
Equity earnings from joint ventures |
7 |
9 |
— |
21 |
— |
||||||||||||||
Interest income and other |
10 |
15 |
9 |
34 |
27 |
||||||||||||||
Interest expense, net of capitalized interest |
(114) |
(114) |
(87) |
(323) |
(254) |
||||||||||||||
Earnings from continuing operations before income taxes |
161 |
184 |
88 |
417 |
289 |
||||||||||||||
Income taxes |
(31) |
(22) |
44 |
(64) |
36 |
||||||||||||||
Earnings from continuing operations |
130 |
162 |
132 |
353 |
325 |
||||||||||||||
Earnings from discontinued operations, net of income taxes |
38 |
65 |
59 |
123 |
111 |
||||||||||||||
Net earnings |
168 |
227 |
191 |
476 |
436 |
||||||||||||||
Dividends on preference shares |
(11) |
— |
(11) |
(22) |
(33) |
||||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders |
$ |
157 |
$ |
227 |
$ |
180 |
$ |
454 |
$ |
403 |
|||||||||
(1) Discontinued operations as presented herein consist of the operations of our Cellulose Fibers segment. The corresponding assets and liabilities have been classified as held for sale on our balance sheet as of June 30, 2016. All periods presented have been revised to separate the results of discontinued operations from the results of our continuing operations. Detailed operating results of discontinued operations are presented on page 10. | |||||||||||||||||||
(2) Amounts presented reflect the balances and results of operations acquired in our merger with Plum Creek Timber, Inc., beginning on the merger date of February 19, 2016. | |||||||||||||||||||
Per Share Information | |||||||||||||||||||
Q2 |
Q3 |
Year-to-date | |||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, basic: | |||||||||||||||||||
Continuing operations |
$ |
0.16 |
$ |
0.22 |
$ |
0.24 |
$ |
0.47 |
$ |
0.56 |
|||||||||
Discontinued operations |
0.05 |
0.08 |
0.11 |
0.17 |
0.22 |
||||||||||||||
Net earnings per share |
$ |
0.21 |
$ |
0.30 |
$ |
0.35 |
$ |
0.64 |
$ |
0.78 |
|||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, diluted: | |||||||||||||||||||
Continuing operations |
$ |
0.16 |
$ |
0.21 |
$ |
0.23 |
$ |
0.46 |
$ |
0.56 |
|||||||||
Discontinued operations |
0.05 |
0.09 |
0.12 |
0.18 |
0.21 |
||||||||||||||
Net earnings per share |
$ |
0.21 |
$ |
0.30 |
$ |
0.35 |
$ |
0.64 |
$ |
0.77 |
|||||||||
Dividends paid per common share |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.93 |
$ |
0.89 |
|||||||||
Weighted average shares outstanding (in thousands): |
|||||||||||||||||||
Basic |
743,140 |
749,587 |
514,301 |
708,395 |
518,121 |
||||||||||||||
Diluted |
747,701 |
754,044 |
517,088 |
712,205 |
521,455 |
||||||||||||||
Common shares outstanding at end of period (in thousands) |
733,010 |
747,933 |
511,033 |
747,933 |
511,033 |
||||||||||||||
Weyerhaeuser Company |
|||||||||||||||||||
Q3.2016 Analyst Package |
|||||||||||||||||||
Preliminary results (unaudited) |
|||||||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | |||||||||||||||||||
in millions |
Q2 |
Q3 |
Year-to-date | ||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Net earnings |
$ |
168 |
$ |
227 |
$ |
191 |
$ |
476 |
$ |
436 |
|||||||||
Earnings from discontinued operations, net of income taxes |
(38) |
(65) |
(59) |
(123) |
(111) |
||||||||||||||
Equity earnings from joint ventures |
(7) |
(9) |
— |
(21) |
— |
||||||||||||||
Interest income and other |
(10) |
(15) |
(9) |
(34) |
(27) |
||||||||||||||
Interest expense, net of capitalized interest |
114 |
114 |
87 |
323 |
254 |
||||||||||||||
Income taxes |
31 |
22 |
(44) |
64 |
(36) |
||||||||||||||
Operating income from continuing operations |
258 |
274 |
166 |
685 |
516 |
||||||||||||||
Depreciation, depletion and amortization |
133 |
138 |
79 |
375 |
243 |
||||||||||||||
Basis of real estate sold |
13 |
19 |
2 |
49 |
13 |
||||||||||||||
Non-operating pension and postretirement credits |
(10) |
(11) |
(2) |
(33) |
(8) |
||||||||||||||
Special items |
19 |
14 |
— |
107 |
13 |
||||||||||||||
Adjusted EBITDA* |
$ |
413 |
$ |
434 |
$ |
245 |
$ |
1,183 |
$ |
777 |
|||||||||
*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Beginning in the first quarter of 2016, we revised our definition of Adjusted EBITDA to add back the basis of real estate sold. We have revised our prior-period presentation to conform to our current reporting.
Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, pension and postretirement costs not allocated to business segments and special items. Adjusted EBITDA excludes results from joint ventures.
Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. |
Special Items Included in Net Earnings (income tax affected) | |||||||||||||||||||
in millions |
Q2 |
Q3 |
Year-to-date | ||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders |
$ |
157 |
$ |
227 |
$ |
180 |
$ |
454 |
$ |
403 |
|||||||||
Plum Creek merger- and integration-related costs |
4 |
10 |
— |
112 |
— |
||||||||||||||
Gain on sale of non-strategic asset |
— |
— |
— |
(22) |
— |
||||||||||||||
Legal expense |
7 |
— |
— |
7 |
— |
||||||||||||||
Restructuring, impairments and other charges |
— |
— |
— |
— |
9 |
||||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders before special items |
168 |
237 |
180 |
551 |
412 |
||||||||||||||
Earnings from discontinued operations, net of income taxes |
(38) |
(65) |
(59) |
(123) |
(111) |
||||||||||||||
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
130 |
$ |
172 |
$ |
121 |
$ |
428 |
$ |
301 |
|||||||||
per share |
Q2 |
Q3 |
Year-to-date | ||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders |
$ |
0.21 |
$ |
0.30 |
$ |
0.35 |
$ |
0.64 |
$ |
0.77 |
|||||||||
Plum Creek merger- and integration-related costs |
— |
0.02 |
— |
0.16 |
— |
||||||||||||||
Gain on sale of non-strategic asset |
— |
— |
— |
(0.03) |
— |
||||||||||||||
Legal expense |
0.01 |
— |
— |
0.01 |
— |
||||||||||||||
Restructuring, impairments and other charges |
— |
— |
— |
— |
0.02 |
||||||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items |
0.22 |
0.32 |
0.35 |
0.78 |
0.79 |
||||||||||||||
Earnings from discontinued operations, net of income taxes |
(0.05) |
(0.09) |
(0.12) |
(0.18) |
(0.21) |
||||||||||||||
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$ |
0.17 |
$ |
0.23 |
$ |
0.23 |
$ |
0.60 |
$ |
0.58 |
Weyerhaeuser Company |
|||||||||||
Q3.2016 Analyst Package |
|||||||||||
Preliminary results (unaudited) |
|||||||||||
Consolidated Balance Sheet | |||||||||||
in millions |
June 30, |
September 30, |
December 31, | ||||||||
ASSETS |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ |
485 |
$ |
769 |
$ |
1,011 |
|||||
Receivables, less allowances |
409 |
412 |
276 |
||||||||
Receivables for taxes |
7 |
5 |
30 |
||||||||
Inventories |
387 |
368 |
325 |
||||||||
Prepaid expenses and other current assets |
132 |
150 |
63 |
||||||||
Assets of discontinued operations |
1,908 |
1,652 |
1,934 |
||||||||
Total current assets |
3,328 |
3,356 |
3,639 |
||||||||
Property and equipment, net |
1,462 |
1,476 |
1,233 |
||||||||
Construction in progress |
172 |
202 |
144 |
||||||||
Timber and timberlands at cost, less depletion charged to disposals |
14,474 |
14,424 |
6,479 |
||||||||
Minerals and mineral rights, net |
319 |
321 |
14 |
||||||||
Investments in and advances to joint ventures |
905 |
73 |
— |
||||||||
Goodwill |
40 |
40 |
40 |
||||||||
Deferred tax assets |
250 |
122 |
254 |
||||||||
Other assets |
424 |
317 |
302 |
||||||||
Restricted financial investments held by variable interest entities |
615 |
615 |
615 |
||||||||
Total assets |
$ |
21,989 |
$ |
20,946 |
$ |
12,720 |
|||||
LIABILITIES AND EQUITY |
|||||||||||
Current liabilities: |
|||||||||||
Current maturities of long-term debt |
$ |
— |
$ |
1,981 |
$ |
— |
|||||
Notes payable |
1 |
1 |
4 |
||||||||
Accounts payable |
300 |
234 |
204 |
||||||||
Accrued liabilities |
590 |
533 |
427 |
||||||||
Liabilities of discontinued operations |
666 |
578 |
690 |
||||||||
Total current liabilities |
1,557 |
3,327 |
1,325 |
||||||||
Note payable to timberland venture |
830 |
— |
— |
||||||||
Long-term debt |
8,013 |
6,329 |
4,787 |
||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities |
511 |
511 |
511 |
||||||||
Deferred pension and other postretirement benefits |
926 |
875 |
987 |
||||||||
Deposit received from contribution of timberlands to related party |
437 |
429 |
— |
||||||||
Other liabilities |
285 |
285 |
241 |
||||||||
Total liabilities |
12,559 |
11,756 |
7,851 |
||||||||
Total equity |
9,430 |
9,190 |
4,869 |
||||||||
Total liabilities and equity |
$ |
21,989 |
$ |
20,946 |
$ |
12,720 |
Weyerhaeuser Company |
|||||||||||||||||||
Q3.2016 Analyst Package |
|||||||||||||||||||
Preliminary results (unaudited) |
|||||||||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||||||
in millions |
Q2 |
Q3 |
Year-to-date | ||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Cash flows from operations: |
|||||||||||||||||||
Net earnings |
$ |
168 |
$ |
227 |
$ |
191 |
$ |
476 |
$ |
436 |
|||||||||
Noncash charges (credits) to income: |
|||||||||||||||||||
Depreciation, depletion and amortization |
147 |
139 |
118 |
428 |
359 |
||||||||||||||
Basis of real estate sold |
13 |
19 |
2 |
49 |
13 |
||||||||||||||
Deferred income taxes, net |
38 |
40 |
(6) |
96 |
10 |
||||||||||||||
Pension and other postretirement benefits |
1 |
— |
11 |
5 |
32 |
||||||||||||||
Other noncash charges (credits) |
16 |
(57) |
23 |
(74) |
65 |
||||||||||||||
Change in: |
|||||||||||||||||||
Receivables less allowances |
(43) |
(6) |
(15) |
(96) |
(41) |
||||||||||||||
Receivable for taxes |
25 |
2 |
(3) |
37 |
11 |
||||||||||||||
Inventories |
60 |
32 |
6 |
49 |
(9) |
||||||||||||||
Prepaid expenses |
— |
(2) |
— |
(3) |
(2) |
||||||||||||||
Accounts payable and accrued liabilities |
106 |
25 |
(22) |
61 |
(47) |
||||||||||||||
Pension and postretirement contributions |
(12) |
(54) |
(20) |
(83) |
(59) |
||||||||||||||
Distributions received from joint ventures |
— |
— |
— |
5 |
— |
||||||||||||||
Other |
(27) |
(18) |
(3) |
(64) |
(32) |
||||||||||||||
Net cash from operations |
492 |
347 |
282 |
886 |
736 |
||||||||||||||
Cash flows from investing activities: |
|||||||||||||||||||
Capital expenditures: |
|||||||||||||||||||
Purchases of property and equipment |
(83) |
(120) |
(106) |
(260) |
(276) |
||||||||||||||
Timberlands reforestation costs |
(18) |
(9) |
(6) |
(43) |
(33) |
||||||||||||||
Acquisition of timberlands |
(2) |
(2) |
(2) |
(10) |
(34) |
||||||||||||||
Proceeds from sale of assets |
13 |
296 |
1 |
379 |
7 |
||||||||||||||
Proceeds from contribution of timberlands to related party |
440 |
— |
— |
440 |
— |
||||||||||||||
Distributions received from joint ventures |
3 |
7 |
— |
34 |
— |
||||||||||||||
Cash and cash equivalents acquired in the merger with Plum Creek |
— |
— |
— |
9 |
— |
||||||||||||||
Other |
(3) |
45 |
— |
42 |
12 |
||||||||||||||
Cash from (used in) investing activities |
350 |
217 |
(113) |
591 |
(324) |
||||||||||||||
Cash flows from financing activities: |
|||||||||||||||||||
Cash dividends on common shares |
(228) |
(231) |
(159) |
(700) |
(460) |
||||||||||||||
Cash dividends on preference shares |
(11) |
(11) |
(11) |
(22) |
(22) |
||||||||||||||
Proceeds from issuance of long-term debt |
300 |
300 |
— |
1,698 |
— |
||||||||||||||
Payments of long-term debt |
(3) |
— |
— |
(723) |
— |
||||||||||||||
Repurchase of common stock |
(831) |
(374) |
(77) |
(2,003) |
(484) |
||||||||||||||
Other |
8 |
39 |
5 |
40 |
22 |
||||||||||||||
Cash used in financing activities |
(765) |
(277) |
(242) |
(1,710) |
(944) |
||||||||||||||
Net change in cash and cash equivalents |
77 |
287 |
(73) |
(233) |
(532) |
||||||||||||||
Cash and cash equivalents from continuing operations at beginning of period |
411 |
485 |
1,117 |
1,011 |
1,577 |
||||||||||||||
Cash and cash equivalents from discontinued operations at beginning of period |
4 |
7 |
4 |
1 |
3 |
||||||||||||||
Cash and cash equivalents at beginning of period |
415 |
492 |
1,121 |
1,012 |
1,580 |
||||||||||||||
Cash and cash equivalents from continuing operations at end of period |
485 |
769 |
1,046 |
769 |
1,046 |
||||||||||||||
Cash and cash equivalents from discontinued operations at end of period |
7 |
10 |
2 |
10 |
2 |
||||||||||||||
Cash and cash equivalents at end of period |
$ |
492 |
$ |
779 |
$ |
1,048 |
$ |
779 |
$ |
1,048 |
|||||||||
Cash paid (received) during the year for: |
|||||||||||||||||||
Interest, net of amount capitalized |
$ |
92 |
$ |
142 |
$ |
118 |
$ |
367 |
$ |
290 |
|||||||||
Income taxes |
$ |
(12) |
$ |
(1) |
$ |
(1) |
$ |
(26) |
$ |
4 |
|||||||||
Noncash investing and financing activities: |
|||||||||||||||||||
Equity issued as consideration for our merger with Plum Creek |
$ |
— |
$ |
— |
$ |
— |
$ |
6,383 |
$ |
— |
Weyerhaeuser Company |
Total Company Statistics | ||||||||||||||||||
Q3.2016 Analyst Package |
|||||||||||||||||||
Preliminary results (unaudited) |
|||||||||||||||||||
Selected Total Company Items | |||||||||||||||||||
in millions |
Q2 |
Q3 |
Year-to-date | ||||||||||||||||
June 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
Pension and postretirement costs: |
|||||||||||||||||||
Pension and postretirement costs allocated to business segments |
$ |
8 |
$ |
8 |
$ |
8 |
$ |
23 |
$ |
27 |
|||||||||
Pension and postretirement credits not allocated |
(10) |
(11) |
(2) |
(33) |
(8) |
||||||||||||||
Accelerated pension costs included in Plum Creek merger-related costs (not allocated) |
— |
— |
— |
5 |
— |
||||||||||||||
Total pension and postretirement costs for continuing operations |
(2) |
(3) |
6 |
(5) |
19 |
||||||||||||||
Pension and postretirement service costs directly attributable to discontinued operations |
3 |
3 |
5 |
10 |
13 |
||||||||||||||
Total company pension and postretirement costs |
$ |
1 |
$ |
— |
$ |
11 |
$ |
5 |
$ |
32 |
|||||||||
Cash spent for capital expenditures for continuing operations |
$ |
(89) |
$ |
(100) |
$ |
(85) |
$ |
(240) |
$ |
(224) |
Weyerhaeuser Company |
Timberlands Segment | |||||||||||||||||||
Q3.2016 Analyst Package |
||||||||||||||||||||
Preliminary results (unaudited) |
||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Sales to unaffiliated customers |
$ |
471 |
$ |
484 |
$ |
310 |
$ |
1,342 |
$ |
961 |
||||||||||
Intersegment sales |
193 |
216 |
210 |
631 |
625 |
|||||||||||||||
Total net sales |
664 |
700 |
520 |
1,973 |
1,586 |
|||||||||||||||
Cost of products sold |
509 |
559 |
398 |
1,527 |
1,176 |
|||||||||||||||
Gross margin |
155 |
141 |
122 |
446 |
410 |
|||||||||||||||
Selling expenses |
2 |
1 |
1 |
4 |
4 |
|||||||||||||||
General and administrative expenses |
32 |
20 |
21 |
80 |
61 |
|||||||||||||||
Research and development expenses |
4 |
4 |
3 |
12 |
10 |
|||||||||||||||
Other operating income, net |
(8) |
(6) |
(10) |
(26) |
(28) |
|||||||||||||||
Operating income and Net contribution to earnings |
$ |
125 |
$ |
122 |
$ |
107 |
$ |
376 |
$ |
363 |
||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Operating income |
$ |
125 |
$ |
122 |
$ |
107 |
$ |
376 |
$ |
363 |
||||||||||
Depreciation, depletion and amortization |
95 |
101 |
51 |
266 |
155 |
|||||||||||||||
Adjusted EBITDA* |
$ |
220 |
$ |
223 |
$ |
158 |
$ |
642 |
$ |
518 |
||||||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||||
Total decrease (increase) in working capital (1) |
$ |
28 |
$ |
(15) |
$ |
(12) |
$ |
(40) |
$ |
14 |
||||||||||
Cash spent for capital expenditures |
$ |
(31) |
$ |
(26) |
$ |
(17) |
$ |
(77) |
$ |
(58) |
||||||||||
(1) Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR. | ||||||||||||||||||||
Segment Statistics(2) | ||||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||||
Third Party |
Delivered logs: |
|||||||||||||||||||
West |
$ |
232 |
$ |
217 |
$ |
196 |
$ |
664 |
$ |
627 |
||||||||||
South |
154 |
160 |
64 |
415 |
180 |
|||||||||||||||
North |
19 |
29 |
— |
61 |
— |
|||||||||||||||
Other |
7 |
11 |
6 |
25 |
17 |
|||||||||||||||
Total delivered logs |
412 |
417 |
266 |
1,165 |
824 |
|||||||||||||||
Stumpage and pay-as-cut timber |
23 |
24 |
13 |
62 |
27 |
|||||||||||||||
Products from international operations |
21 |
21 |
20 |
58 |
69 |
|||||||||||||||
Recreational and other lease revenue |
8 |
15 |
7 |
29 |
18 |
|||||||||||||||
Other revenue |
7 |
7 |
4 |
28 |
23 |
|||||||||||||||
Total |
$ |
471 |
$ |
484 |
$ |
310 |
$ |
1,342 |
$ |
961 |
||||||||||
Delivered Logs Third Party Sales Realizations (per ton) |
West |
$ |
98.21 |
$ |
98.18 |
$ |
98.67 |
$ |
98.99 |
$ |
100.98 |
|||||||||
South |
$ |
35.54 |
$ |
35.27 |
$ |
37.60 |
$ |
35.64 |
$ |
37.23 |
||||||||||
North |
$ |
65.43 |
$ |
59.17 |
$ |
— |
$ |
61.06 |
$ |
— |
||||||||||
International |
$ |
23.29 |
$ |
24.27 |
$ |
16.97 |
$ |
20.48 |
$ |
18.41 |
||||||||||
Delivered Logs Third Party Sales Volumes (tons, thousands)(3) |
West |
2,363 |
2,209 |
1,992 |
6,705 |
6,207 |
||||||||||||||
South |
4,340 |
4,538 |
1,707 |
11,659 |
4,844 |
|||||||||||||||
North |
292 |
503 |
— |
1,005 |
— |
|||||||||||||||
International |
89 |
117 |
194 |
352 |
556 |
|||||||||||||||
Other |
169 |
263 |
127 |
601 |
384 |
|||||||||||||||
Fee Harvest Volumes (tons, thousands)(3) |
West |
2,980 |
2,744 |
2,548 |
8,525 |
7,967 |
||||||||||||||
South |
7,061 |
6,992 |
3,648 |
19,083 |
10,548 |
|||||||||||||||
North |
454 |
678 |
— |
1,392 |
— |
|||||||||||||||
International |
248 |
242 |
220 |
789 |
725 |
|||||||||||||||
Other |
181 |
191 |
— |
372 |
— |
|||||||||||||||
(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations. | ||||||||||||||||||||
(3) Beginning in first quarter 2016, we report log sales and fee harvest volumes in tons. Prior period volumes have been converted from cubic meters to tons using annualized 2015 conversion factors as follows: West: 1.056 m3 = 1 ton |
Weyerhaeuser Company |
Real Estate, Energy and | |||||||||||||||||||
Q3.2016 Analyst Package | ||||||||||||||||||||
Preliminary results (unaudited) |
||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Total net sales |
$ |
38 |
$ |
48 |
$ |
22 |
$ |
125 |
$ |
69 |
||||||||||
Cost of products sold |
19 |
26 |
3 |
65 |
15 |
|||||||||||||||
Gross margin |
19 |
22 |
19 |
60 |
54 |
|||||||||||||||
Selling expenses |
— |
— |
— |
— |
— |
|||||||||||||||
General and administrative expenses |
8 |
7 |
— |
19 |
3 |
|||||||||||||||
Charges for integration, restructuring, closures and asset impairments |
1 |
— |
— |
1 |
— |
|||||||||||||||
Other operating costs (income), net |
(2) |
1 |
— |
(1) |
(1) |
|||||||||||||||
Operating income |
12 |
14 |
19 |
41 |
52 |
|||||||||||||||
Equity earnings (loss) from joint ventures(1) |
— |
1 |
— |
1 |
— |
|||||||||||||||
Net contribution to earnings |
$ |
12 |
$ |
15 |
$ |
19 |
$ |
42 |
$ |
52 |
||||||||||
(1) Equity earnings (loss) from joint ventures attributed to the Real Estate and ENR segment are generated from our investments in our real estate development ventures. | ||||||||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Operating income |
$ |
12 |
$ |
14 |
$ |
19 |
$ |
41 |
$ |
52 |
||||||||||
Depreciation, depletion and amortization |
3 |
4 |
— |
9 |
— |
|||||||||||||||
Basis of real estate sold |
13 |
19 |
2 |
49 |
13 |
|||||||||||||||
Adjusted EBITDA* |
$ |
28 |
$ |
37 |
$ |
21 |
$ |
99 |
$ |
65 |
||||||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||||
Cash spent for capital expenditures |
$ |
(1) |
$ |
— |
$ |
— |
$ |
(1) |
$ |
— |
||||||||||
Segment Statistics | ||||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||||
Net Sales |
Real Estate |
$ |
26 |
$ |
31 |
$ |
15 |
$ |
87 |
$ |
50 |
|||||||||
Energy and natural resources |
12 |
17 |
7 |
38 |
19 |
|||||||||||||||
Total |
$ |
38 |
$ |
48 |
$ |
22 |
$ |
125 |
$ |
69 |
||||||||||
Acres sold |
Real Estate |
10,020 |
12,853 |
5,030 |
38,098 |
20,625 |
||||||||||||||
Price per acre |
Real Estate |
$ |
2,555 |
$ |
2,354 |
$ |
2,635 |
$ |
2,271 |
$ |
2,175 |
Weyerhaeuser Company |
Wood Products Segment | |||||||||||||||||||
Q3.2016 Analyst Package |
||||||||||||||||||||
Preliminary results (unaudited) |
||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Sales to unaffiliated customers |
$ |
1,146 |
$ |
1,177 |
$ |
1,023 |
$ |
3,302 |
$ |
2,950 |
||||||||||
Intersegment sales |
22 |
17 |
20 |
61 |
61 |
|||||||||||||||
Total net sales |
1,168 |
1,194 |
1,043 |
3,363 |
3,011 |
|||||||||||||||
Cost of products sold |
957 |
980 |
914 |
2,799 |
2,646 |
|||||||||||||||
Gross margin |
211 |
214 |
129 |
564 |
365 |
|||||||||||||||
Selling expenses |
20 |
21 |
23 |
63 |
69 |
|||||||||||||||
General and administrative expenses |
30 |
24 |
21 |
81 |
74 |
|||||||||||||||
Research and development expenses |
— |
1 |
1 |
2 |
2 |
|||||||||||||||
Charges for integration and restructuring, closures and asset impairments |
4 |
1 |
1 |
6 |
1 |
|||||||||||||||
Other operating costs (income), net |
1 |
(3) |
(2) |
(1) |
1 |
|||||||||||||||
Operating income and Net contribution to earnings |
$ |
156 |
$ |
170 |
$ |
85 |
$ |
413 |
$ |
218 |
||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Operating income |
$ |
156 |
$ |
170 |
$ |
85 |
$ |
413 |
$ |
218 |
||||||||||
Depreciation, depletion and amortization |
33 |
33 |
26 |
96 |
79 |
|||||||||||||||
Adjusted EBITDA* |
$ |
189 |
$ |
203 |
$ |
111 |
$ |
509 |
$ |
297 |
||||||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||||
Total decrease (increase) in working capital (1) |
$ |
35 |
$ |
49 |
$ |
23 |
$ |
(48) |
$ |
(34) |
||||||||||
Cash spent for capital expenditures |
$ |
(52) |
$ |
(71) |
$ |
(68) |
$ |
(152) |
$ |
(165) |
||||||||||
(1) Working capital does not include cash balances. |
||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
in millions, except for third-party sales realizations |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Structural Lumber |
Third party net sales |
$ |
498 |
$ |
495 |
$ |
455 |
$ |
1,412 |
$ |
1,339 |
|||||||||
Third party sales realizations |
$ |
399 |
$ |
401 |
$ |
372 |
$ |
389 |
$ |
385 |
||||||||||
Third party sales volumes (2) |
1,249 |
1,233 |
1,224 |
3,634 |
3,474 |
|||||||||||||||
Production volumes |
1,205 |
1,130 |
1,087 |
3,464 |
3,217 |
|||||||||||||||
Engineered Solid |
Third party net sales |
$ |
115 |
$ |
119 |
$ |
116 |
$ |
343 |
$ |
323 |
|||||||||
Third party sales realizations |
$ |
1,922 |
$ |
1,916 |
$ |
2,043 |
$ |
1,935 |
$ |
2,016 |
||||||||||
Third party sales volumes (2) |
6.0 |
6.2 |
5.6 |
17.7 |
16.0 |
|||||||||||||||
Production volumes |
5.9 |
5.7 |
5.2 |
17.2 |
15.8 |
|||||||||||||||
Engineered |
Third party net sales |
$ |
73 |
$ |
79 |
$ |
79 |
$ |
218 |
$ |
216 |
|||||||||
Third party sales realizations |
$ |
1,471 |
$ |
1,475 |
$ |
1,520 |
$ |
1,483 |
$ |
1,511 |
||||||||||
Third party sales volumes (2) |
50 |
53 |
52 |
147 |
143 |
|||||||||||||||
Production volumes |
46 |
49 |
50 |
141 |
141 |
|||||||||||||||
Oriented Strand |
Third party net sales |
$ |
182 |
$ |
199 |
$ |
151 |
$ |
544 |
$ |
435 |
|||||||||
Third party sales realizations |
$ |
240 |
$ |
256 |
$ |
194 |
$ |
237 |
$ |
194 |
||||||||||
Third party sales volumes (2) |
761 |
776 |
778 |
2,296 |
2,249 |
|||||||||||||||
Production volumes |
733 |
777 |
746 |
2,259 |
2,150 |
|||||||||||||||
Softwood Plywood (square feet 3/8') |
Third party net sales |
$ |
50 |
$ |
48 |
$ |
33 |
$ |
133 |
$ |
102 |
|||||||||
Third party sales realizations |
$ |
382 |
$ |
378 |
$ |
330 |
$ |
369 |
$ |
349 |
||||||||||
Third party sales volumes (2) |
131 |
127 |
100 |
368 |
290 |
|||||||||||||||
Production volumes |
111 |
105 |
67 |
304 |
191 |
|||||||||||||||
(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
Weyerhaeuser Company |
Unallocated Items | ||||||||||||||||||
Q3.2016 Analyst Package |
|||||||||||||||||||
Preliminary results (unaudited) |
|||||||||||||||||||
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, equity earnings from our timberland venture, and the LIFO reserve. | |||||||||||||||||||
Contribution to Earnings | |||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||
Unallocated corporate function expenses |
$ |
(24) |
$ |
(21) |
$ |
(14) |
$ |
(62) |
$ |
(48) |
|||||||||
Unallocated share-based compensation |
1 |
(4) |
6 |
(5) |
10 |
||||||||||||||
Unallocated pension & postretirement credits |
10 |
11 |
2 |
33 |
8 |
||||||||||||||
Foreign exchange gains (losses) |
1 |
(1) |
(20) |
13 |
(40) |
||||||||||||||
Elimination of intersegment profit in inventory and LIFO |
(2) |
2 |
3 |
(6) |
7 |
||||||||||||||
Gain on sale of non-strategic asset |
8 |
1 |
— |
45 |
2 |
||||||||||||||
Charges for integration and restructuring, closures and asset impairments: |
|||||||||||||||||||
Plum Creek merger- and integration-related costs |
(8) |
(14) |
— |
(132) |
— |
||||||||||||||
Other restructuring, closures and asset impairments |
(1) |
(1) |
(1) |
(2) |
(15) |
||||||||||||||
Other |
(20) |
(5) |
(21) |
(29) |
(41) |
||||||||||||||
Operating income (loss) |
(35) |
(32) |
(45) |
(145) |
(117) |
||||||||||||||
Equity earnings from joint venture (1) |
7 |
8 |
— |
20 |
— |
||||||||||||||
Interest income and other |
10 |
15 |
9 |
34 |
27 |
||||||||||||||
Net contribution to earnings |
$ |
(18) |
$ |
(9) |
$ |
(36) |
$ |
(91) |
$ |
(90) |
|||||||||
(1) Equity earnings from joint venture included in Unallocated Items is generated from our investment in our timberland venture. | |||||||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||
Operating income (loss) |
$ |
(35) |
$ |
(32) |
$ |
(45) |
$ |
(145) |
$ |
(117) |
|||||||||
Depreciation, depletion and amortization |
2 |
— |
2 |
4 |
9 |
||||||||||||||
Non-operating pension and postretirement credits |
(10) |
(11) |
(2) |
(33) |
(8) |
||||||||||||||
Special items |
19 |
14 |
— |
107 |
13 |
||||||||||||||
Adjusted EBITDA* |
$ |
(24) |
$ |
(29) |
$ |
(45) |
$ |
(67) |
$ |
(103) |
|||||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
|||||||||||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Plum Creek merger- and integration-related costs |
(8) |
(14) |
— |
(132) |
— |
||||||||||||||
Gain on sale of non-strategic asset |
— |
— |
— |
36 |
— |
||||||||||||||
Legal expense |
(11) |
— |
— |
(11) |
— |
||||||||||||||
Restructuring, impairments and other charges |
— |
— |
— |
— |
(13) |
||||||||||||||
Total |
$ |
(19) |
$ |
(14) |
$ |
— |
$ |
(107) |
$ |
(13) |
|||||||||
Unallocated Selected Items | |||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Cash spent for capital expenditures |
$ |
(5) |
$ |
(3) |
$ |
— |
$ |
(10) |
$ |
(1) |
Weyerhaeuser Company |
Discontinued Operations | |||||||||||||||||||
Q3.2016 Analyst Package |
||||||||||||||||||||
Preliminary results (unaudited) |
||||||||||||||||||||
Discontinued operations consist of our Cellulose Fibers businesses, which were previously disclosed as a separate reportable business segment. | ||||||||||||||||||||
Discontinued Operations Statement of Operations | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Total net sales |
$ |
456 |
$ |
420 |
$ |
471 |
$ |
1,306 |
$ |
1,385 |
||||||||||
Costs of products sold |
374 |
350 |
372 |
1,110 |
1,181 |
|||||||||||||||
Gross margin |
82 |
70 |
99 |
196 |
204 |
|||||||||||||||
Selling expenses |
3 |
3 |
3 |
10 |
10 |
|||||||||||||||
General and administrative expenses |
8 |
7 |
5 |
24 |
21 |
|||||||||||||||
Research and development expenses |
2 |
— |
2 |
3 |
5 |
|||||||||||||||
Charges for integration and restructuring, closures and asset impairments |
25 |
13 |
1 |
44 |
1 |
|||||||||||||||
Other operating income, net |
(10) |
(2) |
(5) |
(21) |
(19) |
|||||||||||||||
Operating income |
54 |
49 |
93 |
136 |
186 |
|||||||||||||||
Equity loss from joint venture |
(1) |
— |
(5) |
(3) |
(18) |
|||||||||||||||
Interest expense, net of capitalized interest |
(1) |
(2) |
(1) |
(5) |
(5) |
|||||||||||||||
Earnings from discontinued operations before income taxes |
52 |
47 |
87 |
128 |
163 |
|||||||||||||||
Income taxes |
(14) |
(23) |
(28) |
(46) |
(52) |
|||||||||||||||
Net earnings from operations |
38 |
24 |
59 |
82 |
111 |
|||||||||||||||
Net gain on divestiture of Liquid Packaging Board |
— |
41 |
— |
41 |
— |
|||||||||||||||
Net earnings from discontinued operations |
$ |
38 |
$ |
65 |
$ |
59 |
$ |
123 |
$ |
111 |
||||||||||
Discontinued Operations Selected Items | ||||||||||||||||||||
in millions |
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | |||||||||||||||
Depreciation, depletion and amortization |
$ |
15 |
$ |
— |
$ |
39 |
$ |
53 |
$ |
116 |
||||||||||
Cash spent for capital expenditures |
$ |
(12) |
$ |
(29) |
$ |
(27) |
$ |
(63) |
$ |
(85) |
||||||||||
Discontinued Operations Statistics | ||||||||||||||||||||
Q2.2016 |
Q3.2016 |
Q3.2015 |
YTD.2016 |
YTD.2015 | ||||||||||||||||
Pulp (air-dry metric tons) |
Third party net sales (millions) |
$ |
350 |
$ |
349 |
$ |
383 |
$ |
1,050 |
$ |
1,111 |
|||||||||
Third party sales realizations |
$ |
762 |
$ |
780 |
$ |
818 |
$ |
766 |
$ |
831 |
||||||||||
Third party sales volumes (thousands) |
460 |
446 |
468 |
1,370 |
1,337 |
|||||||||||||||
Production volumes (thousands) |
454 |
426 |
477 |
1,337 |
1,341 |
|||||||||||||||
Liquid Packaging Board (metric tons) |
Third party net sales (millions) |
$ |
85 |
$ |
61 |
$ |
74 |
$ |
213 |
$ |
232 |
|||||||||
Third party sales realizations |
$ |
1,127 |
$ |
1,144 |
$ |
1,168 |
$ |
1,112 |
$ |
1,194 |
||||||||||
Third party sales volumes (thousands) |
76 |
53 |
63 |
192 |
194 |
|||||||||||||||
Production volumes (thousands) |
65 |
48 |
68 |
177 |
192 |
Logo - http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO
SOURCE Weyerhaeuser Company