Chart Newsroom

Print News Release

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.

Weyerhaeuser Company logo

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
& ENR


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
& ENR


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
& ENR


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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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,
 2016


September 30,
 2016


December 31,
 2015


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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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,
 2016


September 30,
 2016


September 30,
 2015


September 30,
 2016


September 30,
 2015

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
Net Sales
(millions)

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
South:  0.818 m3 = 1 ton
Canada (in Other):  1.244 m3 = 1 ton
International:  0.907 m3 = 1 ton













Weyerhaeuser Company

Real Estate, Energy and
Natural Resources Segment

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
(millions)

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
(board feet)

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
Section
(cubic feet)

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
I-joists
(lineal feet)

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
Board
(square feet 3/8')

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

Top
Welcome to Weyerhaeuser's new website!

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

Update my browser now

×