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Weyerhaeuser Reports Fourth Quarter, Full Year Results

- Generated full year net earnings of $797 million, or $1.07 per diluted share

- Increased full year Adjusted EBITDA by 72 percent to $2.2 billion

- Highest full year Wood Products Operating Income and Adjusted EBITDA on record

Jan 29, 2021

SEATTLE, Jan. 29, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings of $292 million, or 39 cents per diluted share, on net sales of $2.1 billion. This compares with a net loss of $14 million, or two cents per diluted share, on net sales of $1.5 billion for the same period last year and net earnings of $283 million for the third quarter of 2020.

View our earnings release and financial statements in a printer-friendly PDF.

Excluding net after-tax charges of $69 million for special items, the company reported fourth quarter net earnings of $361 million, or 48 cents per diluted share. This compares with net earnings before special items of $23 million for the same period last year and $386 million for the third quarter of 2020.

Adjusted EBITDA for the fourth quarter of 2020 was $657 million compared with $260 million for the same period last year and $745 million for the third quarter of 2020.

For the full year 2020, Weyerhaeuser reported net earnings of $797 million, or $1.07 per diluted share, on net sales of $7.5 billion. This compares with a net loss of $76 million on net sales of $6.6 billion for the full year 2019.

Full year 2020 includes net after-tax charges of $165 million for special items. Excluding these items, the company reported net earnings of $962 million, or $1.29 per diluted share. This compares with net earnings before special items of $285 million for the full year 2019.

Adjusted EBITDA for full year 2020 was $2.2 billion compared with $1.3 billion for full year 2019.

"In 2020 each of our businesses delivered remarkable results in the face of unprecedented operating and market challenges," said Devin W. Stockfish, president and chief executive officer. "Our teams delivered the highest Wood Products Adjusted EBITDA on record, achieved record low cost performance in lumber, and captured approximately $100 million of operational excellence improvements across our businesses, all while demonstrating an unwavering commitment to safety. In addition, we reduced gross debt by more than $900 million, implemented a new dividend framework, strategically upgraded our Oregon timberland holdings and launched a new sustainability strategy. As we embark on 2021, we are encouraged by the macroeconomic tailwinds that continue to bolster strong U.S. housing and repair and remodel markets, and we remain focused on creating value for shareholders through our unrivaled portfolio of assets, industry-leading operating performance and disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2020


2020


2019


2020


2019

(millions, except per share data)


Q3


Q4


Q4


Full Year


Full Year

Net sales


$2,110


$2,063


$1,548


$7,532


$6,554

Net earnings (loss)


$283


$292


($14)


$797


($76)

Net earnings (loss) per diluted share


$0.38


$0.39


($0.02)


$1.07


($0.10)

Weighted average shares outstanding, diluted


748


749


746


748


746

Net earnings before special items(1)(2)


$386


$361


$23


$962


$285

Net earnings per diluted share before special items(1)


$0.52


$0.48


$0.03


$1.29


$0.39

Adjusted EBITDA(1)


$745


$657


$260


$2,201


$1,276



(1)

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, 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 adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.

(2)

Fourth quarter 2020 after-tax special items include a $193 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract, a $182 million gain related to the previously announced sale of certain southern Oregon timberlands and a $58 million charge related to the early extinguishment of debt. Special items for other periods presented are included in the reconciliation tables following this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q3


Q4


Change

Net sales


$452


$502


$50

Net contribution (charge) to pretax earnings


($11)


$286


$297

Pretax charge (benefit) for special items


$80


($182)


($262)

Net contribution to pretax earnings before special items


$69


$104


$35

Adjusted EBITDA


$130


$167


$37

Q4 2020 Performance – In the West, average sales realizations for domestic and Japan export logs increased from the third quarter, and export log sales volumes were significantly higher. Fee harvest volumes increased 9 percent as harvest operations fully resumed following third quarter wildfire activity. In the South, average log sales realizations were comparable to the third quarter, as higher average sawlog realizations were largely offset by lower realizations for fiber logs. Unit logging and hauling costs decreased, and log sales volumes were slightly lower.

Fourth quarter special items include a $182 million gain on the previously announced sale of certain southern Oregon timberlands, which was completed in November.

Q1 2021 Outlook – Weyerhaeuser expects first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter. In the West, the company anticipates higher export log sales volumes, slightly lower average domestic log sales realizations, slightly higher unit logging and hauling costs, and seasonally lower road spending. In the South, the company expects higher fee harvest volumes and comparable average log sales realizations.  

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q3


Q4


Change

Net sales


$69


$30


($39)

Net contribution to pretax earnings


$17


$14


($3)

Adjusted EBITDA


$60


$23


($37)

Q4 2020 Performance – Earnings and Adjusted EBITDA decreased due to fewer real estate sales. Average land basis was significantly lower due to the mix of properties sold. The segment reported full year Adjusted EBITDA of $241 million.

Q1 2021 Outlook – Weyerhaeuser anticipates first quarter earnings will be slightly higher than first quarter 2020, and Adjusted EBITDA will be modestly lower than first quarter 2020 due to the timing and mix of real estate transactions. The company expects full year 2021 Adjusted EBITDA for the segment will be approximately $255 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q3


Q4


Change

Net sales


$1,696


$1,652


($44)

Net contribution to pretax earnings


$566


$481


($85)

Adjusted EBITDA


$615


$530


($85)

Q4 2020 Performance – Sales volumes declined slightly across most product lines from the third quarter. Raw material costs increased significantly, primarily for Western and Canadian logs and oriented strand board webstock. Per unit manufacturing costs increased for oriented strand board due to planned maintenance outages.

Average sales realizations for oriented strand board improved 27 percent compared with the third quarter, as benchmark pricing remained near record levels. This was largely offset by a 10 percent decrease in average lumber sales realizations.

Q1 2021 Outlook – Excluding the effect of changes in average sales realizations for lumber and oriented strand board, the company expects first quarter earnings and Adjusted EBITDA will be significantly higher than the fourth quarter. The company expects improved manufacturing costs across product lines and slightly higher sales volumes, primarily for lumber and engineered wood products. To date, first quarter benchmark pricing for lumber and oriented strand board is significantly higher than the fourth quarter average.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands 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 products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on January 29, 2021 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January 29, 2021.

To join the conference call from within North America, dial 877-407-0792 (access code: 13714046) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714046). Replays will be available for two weeks at 844-512-2921 (access code: 13714046) from within North America, and at 412-317-6671 (access code: 13714046) 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, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log export sales volumes and domestic log sales realizations; forestry road expense and logging costs; fee harvest volumes; manufacturing costs for our wood products business and sales volumes for our lumber and engineered wood products lines. Forward-looking statements are generally identified by words such as "believe," "expect," "anticipate," "estimate," "future," "planned," "may," "will," "maintain," and similar words and expressions. Forward-looking statements are based on our current expectations and assumptions. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

  • the effect of general economic conditions, including employment rates, interest rate levels, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
  • the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
  • market demand for the company's 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;
  • changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
  • restrictions on international trade and tariffs imposed on imports or exports;
  • the availability and cost of shipping and transportation;
  • economic activity in Asia, especially Japan and China;
  • performance of our manufacturing operations, including maintenance and capital requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • our operational excellence 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, required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
  • raw material availability and prices;
  • the effect of weather;
  • changes in global or regional climate conditions and governmental response to such changes;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • 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 employee retirements and changes in the market price of our common stock on charges for share-based compensation;
  • the accuracy of our estimates of costs and expenses related to contingent liabilities and charges related to casualty losses;
  • changes in accounting principles; and
  • other risks and uncertainties identified in our 2019 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) 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 year ended December 31, 2020:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

797


Interest expense, net of capitalized interest(1)



















443


Income taxes



















185


Net contribution (charge) to earnings


$

455



$

86



$

1,340



$

(456)



$

1,425


Non-operating pension and other post-employment benefit costs(2)












290




290


Interest income and other












(5)




(5)


Operating income (loss)



455




86




1,340




(171)




1,710


Depreciation, depletion and amortization



257




14




195




6




472


Basis of real estate sold






141










141


Special items included in operating income (loss)(3)(4)(5)



(102)







(8)




(12)




(122)


Adjusted EBITDA


$

610



$

241



$

1,527



$

(177)



$

2,201




(1)

Interest expense, net of capitalized interest includes pretax special items consisting of $92 million of charges related to the early extinguishment of debt.

(2)

Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $253 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract.

(3)

Operating income (loss) for Timberlands includes pretax special items consisting of a $182 million gain on sale of certain southern Oregon timberlands and an $80 million timber casualty loss.

(4)

Operating income (loss) for Wood Products includes a pretax special item consisting of an $8 million product remediation insurance recovery.

(5)

Operating income (loss) for Unallocated Items includes a pretax special item consisting of a $12 million noncash legal benefit.

 

The table below reconciles Adjusted EBITDA for the year ended December 31, 2019:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net loss


















$

(76)


Interest expense, net of capitalized interest(1)



















378


Income taxes



















(137)


Net contribution (charge) to earnings


$

347



$

144



$

353



$

(679)



$

165


Non-operating pension and other post-employment benefit costs(2)












516




516


Interest income and other












(30)




(30)


Operating income (loss)



347




144




353




(193)




651


Depreciation, depletion and amortization



301




14




191




4




510


Basis of real estate sold






116










116


Special items included in operating income (loss)(3)(4)(5)



32







(68)




35




(1)


Adjusted EBITDA


$

680



$

274



$

476



$

(154)



$

1,276




(1)

Interest expense, net of capitalized interest includes a pretax special item consisting of a $12 million charge related to the early extinguishment of debt.

(2)

Non-operating pension and other post-employment benefit costs includes pretax special items consisting of $455 million of noncash settlement charges related to transfers of pension plan assets and liabilities to an insurance company through the purchase of group annuity contracts.

(3)

Operating income (loss) for Timberlands includes pretax special items consisting of an $80 million noncash impairment charge related to the sale of our Montana timberlands and a $48 million gain on sale of our Michigan timberlands.

(4)

Operating income (loss) for Wood Products includes a pretax special item consisting of a $68 million product remediation insurance recovery.

(5)

Operating income (loss) for Unallocated Items includes pretax special items consisting of $35 million of legal charges.

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2020:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

292


Interest expense, net of capitalized interest(1)



















144


Income taxes



















19


Net contribution (charge) to earnings


$

286



$

14



$

481



$

(326)



$

455


Non-operating pension and other post-employment benefit costs(2)












262




262


Interest income and other
















Operating income (loss)



286




14




481




(64)




717


Depreciation, depletion and amortization



63




4




49




1




117


Basis of real estate sold






5










5


Special items included in operating income (loss)(3)



(182)













(182)


Adjusted EBITDA


$

167



$

23



$

530



$

(63)



$

657




(1)

Interest expense, net of capitalized interest includes a pretax special item consisting of a $58 million charge related to the early extinguishment of $500 million of 4.625 percent notes due September 2023.

(2)

Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $253 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract.

(3)

Operating income (loss) includes a pretax special item consisting of a $182 million gain on sale of certain southern Oregon timberlands.

 

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2020:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

283


Interest expense, net of capitalized interest(1)



















111


Income taxes



















109


Net contribution (charge) to earnings


$

(11)



$

17



$

566



$

(69)



$

503


Non-operating pension and other post-employment benefit costs












9




9


Interest income and other












(2)




(2)


Operating income (loss)



(11)




17




566




(62)




510


Depreciation, depletion and amortization



61




3




49




2




115


Basis of real estate sold






40










40


Special items included in operating income (loss)(2)



80













80


Adjusted EBITDA


$

130



$

60



$

615



$

(60)



$

745




(1)

Interest expense, net of capitalized interest includes a pretax special item consisting of a $23 million charge related to the early extinguishment of $325 million of 3.25 percent notes due March 2023.

(2)

Operating income (loss) includes a pretax special item consisting of an $80 million timber casualty loss.

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2019:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net loss


















$

(14)


Interest expense, net of capitalized interest



















89


Income taxes



















1


Net contribution (charge) to earnings


$

53



$

22



$

60



$

(59)



$

76


Non-operating pension and other post-employment benefit costs(1)












21




21


Interest income and other












(8)




(8)


Operating income (loss)



53




22




60




(46)




89


Depreciation, depletion and amortization



73




4




50




1




128


Basis of real estate sold






11










11


Special items included in operating income (loss)(2)



32













32


Adjusted EBITDA


$

158



$

37



$

110



$

(45)



$

260




(1)

Non-operating pension and other post-employment benefit costs include a pretax special item consisting of a $6 million noncash settlement charge related to the transfer of Canadian pension assets and liabilities through purchases of group annuity contracts.

(2)

Operating income (loss) includes pretax special items consisting of an $80 million noncash impairment charge related to the sale of our Montana timberlands and a $48 million gain on sale of our Michigan timberlands.

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS (LOSS)

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings (loss):



2020


2020


2019


2020


2019

(millions)


Q3


Q4


Q4


Full Year


Full Year

Net earnings (loss)


$283


$292


($14)


$797


($76)

Early extinguishment of debt charges


23


58



92


9

Gain on sale of timberlands



(182)


(48)


(182)


(48)

Legal charges (benefits)





(12)


26

Pension settlement charges



193


5


193


345

Product remediation recoveries





(6)


(51)

Restructuring, impairments and other charges




80



80

Timber casualty loss


80




80


Net earnings before special items


$386


$361


$23


$962


$285

The table below reconciles net earnings per diluted share before special items to net earnings (loss) per diluted share:



2020


2020


2019


2020


2019



Q3


Q4


Q4


Full Year


Full Year

Net earnings (loss) per diluted share


$0.38


$0.39


($0.02)


$1.07


($0.10)

Early extinguishment of debt charges


0.03


0.07



0.12


0.01

Gain on sale of timberlands



(0.24)


(0.07)


(0.24)


(0.07)

Legal charges (benefits)





(0.02)


0.04

Pension settlement charges



0.26


0.01


0.26


0.47

Product remediation recoveries





(0.01)


(0.07)

Restructuring, impairments and other charges




0.11



0.11

Timber casualty loss


0.11




0.11


Net earnings per diluted share before special items


$0.52


$0.48


$0.03


$1.29


$0.39

 

 

Exhibit 99.2

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)    

Consolidated Statement of Operations




Q1



Q2



Q3



Q4



Year-to-Date


in millions


Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Net sales


$

1,728



$

1,631



$

2,110



$

2,063



$

1,548



$

7,532



$

6,554


Costs of sales



1,382




1,283




1,390




1,392




1,301




5,447




5,412


Gross margin



346




348




720




671




247




2,085




1,142


Selling expenses



22




18




22




21




22




83




84


General and administrative expenses



74




84




96




93




94




347




348


Gain on sale of timberlands












(182)




(48)




(182)




(48)


Charges for integration and restructuring, closures and asset impairments



1













80




1




80


Product remediation recoveries






(8)













(8)




(68)


Other operating costs, net



9




11




92




22




10




134




95


Operating income



240




243




510




717




89




1,710




651


Non-operating pension and other post-employment benefit costs



(9)




(10)




(9)




(262)




(21)




(290)




(516)


Interest income and other



1




2




2







8




5




30


Interest expense, net of capitalized interest



(85)




(103)




(111)




(144)




(89)




(443)




(378)


Earnings (loss) before income taxes



147




132




392




311




(13)




982




(213)


Income taxes



3




(60)




(109)




(19)




(1)




(185)




137


Net earnings (loss)


$

150



$

72



$

283



$

292



$

(14)



$

797



$

(76)


 

Per Share Information




Q1



Q2



Q3



Q4



Year-to-Date




Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Earnings (loss) per share, basic and diluted


$

0.20



$

0.10



$

0.38



$

0.39



$

(0.02)



$

1.07



$

(0.10)


Dividends paid per common share


$

0.34



$



$



$

0.17



$

0.34



$

0.51



$

1.36


Weighted average shares outstanding (in thousands):





























Basic



746,534




746,896




746,996




747,294




745,886




746,931




745,897


Diluted



747,155




746,984




748,450




749,004




745,886




747,899




745,897


Common shares outstanding at end of period (in thousands)



746,206




746,251




746,398




747,385




745,300




747,385




745,300


 


Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)




Q1



Q2



Q3



Q4



Year-to-Date


in millions


Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Net earnings (loss)


$

150



$

72



$

283



$

292



$

(14)



$

797



$

(76)


Non-operating pension and other post-employment benefit costs



9




10




9




262




21




290




516


Interest income and other



(1)




(2)




(2)







(8)




(5)




(30)


Interest expense, net of capitalized interest



85




103




111




144




89




443




378


Income taxes



(3)




60




109




19




1




185




(137)


Operating income



240




243




510




717




89




1,710




651


Depreciation, depletion and amortization



123




117




115




117




128




472




510


Basis of real estate sold



62




34




40




5




11




141




116


Special items included in operating income



(12)




(8)




80




(182)




32




(122)




(1)


Adjusted EBITDA(1)


$

413



$

386



$

745



$

657



$

260



$

2,201



$

1,276




(1)  

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 adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. 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.

 

 

Total Company Statistics

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)




Q1



Q2



Q3



Q4



Year-to-Date


in millions


Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Net earnings (loss)


$

150



$

72



$

283



$

292



$

(14)



$

797



$

(76)


Early extinguishment of debt charges(1)






11




23




58







92




9


Gain on sale of timberlands












(182)




(48)




(182)




(48)


Legal charges (benefits)



(12)
















(12)




26


Pension settlement charges












193




5




193




345


Product remediation recoveries






(6)













(6)




(51)


Restructuring, impairments and other charges















80







80


Timber casualty loss









80










80





Net earnings before special items(2)


$

138



$

77



$

386



$

361



$

23



$

962



$

285


 



Q1



Q2



Q3



Q4



Year-to-Date




Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Net earnings (loss) per diluted share


$

0.20



$

0.10



$

0.38



$

0.39



$

(0.02)



$

1.07



$

(0.10)


Early extinguishment of debt charges(1)






0.02




0.03




0.07







0.12




0.01


Gain on sale of timberlands












(0.24)




(0.07)




(0.24)




(0.07)


Legal charges (benefits)



(0.02)
















(0.02)




0.04


Pension settlement charges












0.26




0.01




0.26




0.47


Product remediation recoveries






(0.01)













(0.01)




(0.07)


Restructuring, impairments and other charges















0.11







0.11


Timber casualty loss









0.11










0.11





Net earnings per diluted share before special items(2)


$

0.18



$

0.11



$

0.52



$

0.48



$

0.03



$

1.29



$

0.39




(1)  

We recorded pretax charges of $12 million ($9 million after-tax), $11 million ($11 million after-tax), $23 million ($23 million after-tax) and $58 million ($58 million after-tax) related to the early extinguishment of debt in first quarter 2019, second quarter 2020, third quarter 2020 and fourth quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

(2)  

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Selected Total Company Items




Q1



Q2



Q3



Q4



Year-to-Date


in millions


Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Pension and post-employment costs:





























Pension and post-employment service costs


$

10



$

8



$

9



$

9



$

8



$

36



$

32


Non-operating pension and other post-employment benefit costs



9




10




9




262




21




290




516


Total company pension and post-employment costs


$

19



$

18



$

18



$

271



$

29



$

326



$

548



 

 

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet


in millions


March 31,

2020



June 30,

2020



September 30,

2020



December 31,

2020



December 31,

2019


ASSETS





















Current assets:





















Cash and cash equivalents


$

1,458



$

643



$

787



$

495



$

139


Receivables, net



390




420




500




450




309


Receivables for taxes



24




48




48




82




98


Inventories



480




409




411




443




416


Assets held for sale









199







140


Prepaid expenses and other current assets



141




131




101




139




147


Current restricted financial investments held by variable interest entities















362


Total current assets



2,493




1,651




2,046




1,609




1,611


Property and equipment, net



1,911




1,958




1,945




2,013




1,969


Construction in progress



153




110




119




73




130


Timber and timberlands at cost, less depletion



11,847




11,780




11,465




11,827




11,929


Minerals and mineral rights, less depletion



278




275




271




268




281


Deferred tax assets



147




65




44




120




72


Other assets



399




415




466




401




414


Total assets


$

17,228



$

16,254



$

16,356



$

16,311



$

16,406























LIABILITIES AND EQUITY





















Current liabilities:





















Current maturities of long-term debt


$

577



$



$



$

150



$


Borrowings on line of credit



550













230


Accounts payable



241




199




215




204




246


Accrued liabilities



448




525




617




596




530


Total current liabilities



1,816




724




832




950




1,006


Long-term debt, net



6,299




6,299




5,974




5,325




6,147


Deferred tax liabilities



10




18




27




24




6


Deferred pension and other post-employment benefits



669




652




638




911




693


Other liabilities



352




359




358




370




377


Total liabilities



9,146




8,052




7,829




7,580




8,229


Total equity



8,082




8,202




8,527




8,731




8,177


Total liabilities and equity


$

17,228



$

16,254



$

16,356



$

16,311



$

16,406


 

 

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows




Q1



Q2



Q3



Q4



Year-to-Date


in millions


Mar 31,

2020



June 30,

2020



Sept 30,

2020



Dec 31,

2020



Dec 31,

2019



Dec 31,

2020



Dec 31,

2019


Cash flows from operations:





























Net earnings (loss)


$

150



$

72



$

283



$

292



$

(14)



$

797



$

(76)


Noncash charges (credits) to earnings (loss):





























Depreciation, depletion and amortization



123




117




115




117




128




472




510


Basis of real estate sold



62




34




40




5




11




141




116


Deferred income taxes, net



(82)




80




22




(76)




(5)




(56)




(169)


Pension and other post-employment benefits



19




18




18




271




29




326




548


Share-based compensation expense



7




8




7




8




7




30




30


Timber casualty loss









80










80





Charges for impairment of assets















80







80


Net gains on sale of timberlands












(182)




(48)




(182)




(48)


Change in:





























Receivables, net



(82)




(30)




(80)




51




60




(141)




13


Receivables and payables for taxes



79




(18)




42




(38)




51




65




33


Inventories



(72)




74







(27)




(21)




(25)




(23)


Prepaid expenses and other current assets



(2)




7







(9)




1




(4)




6


Accounts payable and accrued liabilities



(91)




30




64




(20)




50




(17)




37


Pension and post-employment benefit contributions and payments



(10)




(6)




(5)




(9)




(9)




(30)




(45)


Other



(15)




5




22




61




(28)




73




(46)


Net cash from operations


$

86



$

391



$

608



$

444



$

292



$

1,529



$

966


Cash flows from investing activities:





























Capital expenditures for property and equipment


$

(47)



$

(55)



$

(56)



$

(67)



$

(128)



$

(225)



$

(327)


Capital expenditures for timberlands reforestation



(21)




(11)




(9)




(15)




(15)




(56)




(57)


Acquisition of timberlands












(425)







(425)





Proceeds from note receivable held by variable interest entities



362
















362




253


Proceeds from sale of timberlands



145










381




297




526




297


Other



2




1










1




3




21


Net cash from investing activities


$

441



$

(65)



$

(65)



$

(126)



$

155



$

185



$

187


Cash flows from financing activities:





























Cash dividends on common shares


$

(254)



$



$



$

(127)



$

(253)



$

(381)



$

(1,013)


Net proceeds from issuance of long-term debt



732
















732




739


Payments on long-term debt






(588)




(348)




(556)







(1,492)




(512)


Proceeds from borrowings on line of credit



550













220




550




1,095


Payments on line of credit



(230)




(550)










(430)




(780)




(1,290)


Payments on debt held by variable interest entities





















(302)


Proceeds from exercise of stock options



6







3




24




5




33




13


Repurchases of common shares





















(60)


Other



(12)




(3)




(1)




(4)




(3)




(20)




(18)


Net cash from financing activities


$

792



$

(1,141)



$

(346)



$

(663)



$

(461)



$

(1,358)



$

(1,348)































Net change in cash and cash equivalents


$

1,319



$

(815)



$

197



$

(345)



$

(14)



$

356



$

(195)


Cash and cash equivalents at beginning of period



139




1,458




643




840




153




139




334


Cash and cash equivalents at end of period


$

1,458



$

643



$

840



$

495



$

139



$

495



$

139































Cash paid (received) during the period for:





























Interest, net of amounts capitalized


$

108



$

70



$

100



$

87



$

60



$

365



$

370


Income taxes, net of refunds


$



$

1



$

45



$

130



$

(48)



$

176



$

(2)


 

 

Timberlands Segment

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Sales to unaffiliated customers


$

381



$

359



$

345



$

381



$

388



$

1,466



$

1,618


Intersegment sales



122




121




107




121




122




471




503


Total net sales



503




480




452




502




510




1,937




2,121


Costs of sales



375




383




358




375




402




1,491




1,649


Gross margin



128




97




94




127




108




446




472


Selling expenses






1







1







2




1


General and administrative expenses



24




22




24




23




23




93




94


Gain on sale of timberlands












(182)




(48)




(182)




(48)


Charges for integration and restructuring, closures and asset impairments















80







80


Other operating costs (income), net



(1)




(1)




81




(1)







78




(2)


Operating income (loss) and Net contribution (charge) to earnings


$

105



$

75



$

(11)



$

286



$

53



$

455



$

347


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Operating income (loss)


$

105



$

75



$

(11)



$

286



$

53



$

455



$

347


Depreciation, depletion and amortization



68




65




61




63




73




257




301


Special items









80




(182)




32




(102)




32


Adjusted EBITDA(1)


$

173



$

140



$

130



$

167



$

158



$

610



$

680




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Segment Special Items Included in Net Contribution (Charge) to Earnings (Pretax)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Gain on sale of timberlands


$



$



$



$

182



$

48



$

182



$

48


Restructuring, impairments and other charges


$



$



$



$



$

(80)



$



$

(80)


Timber casualty loss


$



$



$

(80)



$



$



$

(80)



$


 

Selected Segment Items


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Total decrease (increase) in working capital(2)


$

(3)



$

(2)



$

43



$

(47)



$

(12)



$

(9)



$

12


Cash spent for capital expenditures(3)


$

(30)



$

(21)



$

(24)



$

(29)



$

(33)



$

(104)



$

(112)




(2)

Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

(3)

Does not include cash spent for the acquisition of timberlands.

 


Segment Statistics(4)






Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Third Party


Delivered logs:





























Net Sales


West


$

177



$

179



$

163



$

201



$

169



$

720



$

740


(millions)


South



150




145




141




137




157




573




640




North



17




7




13




15




22




52




92




Total delivered logs



344




331




317




353




348




1,345




1,472




Stumpage and pay-as-cut timber



5




5




5




4




13




19




42




Recreational and other lease revenue



15




16




16




16




16




63




61




Other revenue



17




7




7




8




11




39




43




Total


$

381



$

359



$

345



$

381



$

388



$

1,466



$

1,618


Delivered Logs


West


$

104.91



$

104.90



$

109.01



$

124.37



$

102.12



$

110.69



$

103.18


Third Party Sales


South


$

34.27



$

33.68



$

33.68



$

33.69



$

34.71



$

33.83



$

35.13


Realizations (per ton)


North


$

60.51



$

59.82



$

57.19



$

58.96



$

56.95



$

59.10



$

58.80


Delivered Logs


West



1,684




1,714




1,489




1,619




1,660




6,506




7,173


Third Party Sales


South



4,365




4,307




4,185




4,097




4,538




16,954




18,232


Volumes (tons, thousands)


North



284




113




234




241




372




872




1,558


Fee Harvest Volumes


West



2,310




2,236




1,911




2,085




2,214




8,542




9,237


(tons, thousands)


South



6,130




5,914




5,596




5,509




6,617




23,149




26,278




North



386




194




321




325




477




1,226




2,042




(4)

Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Net sales


$

112



$

65



$

69



$

30



$

46



$

276



$

314


Costs of sales



70




40




46




9




18




165




145


Gross margin



42




25




23




21




28




111




169


General and administrative expenses



6




6




6




7




7




25




27


Other operating income, net















(1)







(2)


Operating income and Net contribution to earnings


$

36



$

19



$

17



$

14



$

22



$

86



$

144


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Operating income


$

36



$

19



$

17



$

14



$

22



$

86



$

144


Depreciation, depletion and amortization



3




4




3




4




4




14




14


Basis of real estate sold



62




34




40




5




11




141




116


Adjusted EBITDA(1)


$

101



$

57



$

60



$

23



$

37



$

241



$

274




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Selected Segment Items

in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Cash spent for capital expenditures


$



$



$



$



$



$



$































 

Segment Statistics





Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Net Sales

Real Estate


$

95



$

48



$

49



$

10



$

25



$

202



$

225


(millions)

Energy and Natural Resources



17




17




20




20




21




74




89



Total


$

112



$

65



$

69



$

30



$

46



$

276



$

314


Acres Sold

Real Estate



44,974




31,337




34,917




670




9,393




111,898




113,315


Price per Acre

Real Estate


$

1,992



$

1,501



$

1,381



$

6,316



$

2,308



$

1,690



$

1,848


Basis as a Percent of

Real Estate Net Sales

Real Estate



65

%



71

%



82

%



50

%



44

%



70

%



52

%

 

Wood Products Segment

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Net sales


$

1,235



$

1,207



$

1,696



$

1,652



$

1,115



$

5,790



$

4,623


Costs of sales



1,040




997




1,075




1,109




994




4,221




4,098


Gross margin



195




210




621




543




121




1,569




525


Selling expenses



21




18




18




20




21




77




80


General and administrative expenses



36




33




33




34




35




136




139


Product remediation recoveries






(8)













(8)




(68)


Charges for integration and restructuring, closures and asset impairments



1
















1





Other operating costs, net



3




8




4




8




5




23




21


Operating income and Net contribution to earnings


$

134



$

159



$

566



$

481



$

60



$

1,340



$

353


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Operating income


$

134



$

159



$

566



$

481



$

60



$

1,340



$

353


Depreciation, depletion and amortization



50




47




49




49




50




195




191


Special items






(8)













(8)




(68)


Adjusted EBITDA(1)


$

184



$

198



$

615



$

530



$

110



$

1,527



$

476




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Segment Special Items Included in Net Contribution to Earnings (Pretax)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Product remediation recoveries


$



$

8



$



$



$



$

8



$

68































 

Selected Segment Items


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Total decrease (increase) in working capital(2)


$

(186)



$

56



$

(68)



$

16



$

49



$

(182)



$

1


Cash spent for capital expenditures


$

(38)



$

(45)



$

(41)



$

(52)



$

(109)



$

(176)



$

(257)




(2)

Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

Segment Statistics


in millions, except for third party sales realizations


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Structural Lumber

Third party net sales


$

508



$

538



$

819



$

737



$

466



$

2,602



$

1,892


(volumes presented

Third party sales realizations


$

416



$

438



$

674



$

609



$

389



$

534



$

389


in board feet)

Third party sales volumes(3)



1,222




1,225




1,216




1,210




1,197




4,873




4,857



Production volumes



1,209




1,108




1,170




1,179




1,178




4,666




4,705


Oriented Strand

Third party net sales


$

190



$

179



$

290



$

354



$

157



$

1,013



$

632


Board

Third party sales realizations


$

246



$

240



$

395



$

503



$

216



$

343



$

217


(volumes presented

Third party sales volumes(3)



770




747




736




703




726




2,956




2,916


in square feet 3/8")

Production volumes



777




742




759




735




757




3,013




2,969


Engineered Solid

Third party net sales


$

127



$

111



$

135



$

132



$

122



$

505



$

510


Section

Third party sales realizations


$

2,149



$

2,151



$

2,128



$

2,221



$

2,166



$

2,162



$

2,196


(volumes presented

Third party sales volumes(3)



5.9




5.2




6.3




6.0




5.6




23.4




23.2


in cubic feet)

Production volumes



6.1




5.3




5.4




6.2




5.4




23.0




22.6


Engineered

Third party net sales


$

78



$

70



$

83



$

85



$

77



$

316



$

323


I-joists

Third party sales realizations


$

1,667



$

1,645



$

1,638



$

1,695



$

1,678



$

1,662



$

1,677


(volumes presented

Third party sales volumes(3)



47




42




51




50




45




190




192


in lineal feet)

Production volumes



47




38




43




47




43




175




182


Softwood Plywood

Third party net sales


$

39



$

34



$

55



$

43



$

31



$

171



$

161


(volumes presented

Third party sales realizations


$

348



$

356



$

507



$

433



$

337



$

411



$

363


in square feet 3/8")

Third party sales volumes(3)



113




95




107




99




94




414




445



Production volumes



97




76




94




80




84




347




386


Medium Density

Third party net sales


$

44



$

33



$

47



$

47



$

39



$

171



$

166


Fiberboard

Third party sales realizations


$

841



$

825



$

864



$

867



$

826



$

851



$

834


(volumes presented

Third party sales volumes(3)



52




40




55




54




48




201




200


in square feet 3/4")

Production volumes



56




35




57




52




49




200




202




(3)

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


 

Unallocated Items

Weyerhaeuser Company

Q4.2020 Analyst Package

Preliminary results (unaudited)


Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.


Net Charge to Earnings


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Unallocated corporate function and variable compensation expense


$

(19)



$

(23)



$

(36)



$

(31)



$

(30)



$

(109)



$

(80)


Liability classified share-based compensation



10




(4)




(5)




(3)




(2)




(2)




(7)


Foreign exchange gain (loss)



(8)




3




2




(4)







(7)




(2)


Elimination of intersegment profit in inventory and LIFO



(13)




18




(9)




(13)




(1)




(17)




(5)


Other, net



(5)




(4)




(14)




(13)




(13)




(36)




(99)


Operating loss



(35)




(10)




(62)




(64)




(46)




(171)




(193)


Non-operating pension and other post-employment benefit costs



(9)




(10)




(9)




(262)




(21)




(290)




(516)


Interest income and other



1




2




2







8




5




30


Net charge to earnings


$

(43)



$

(18)



$

(69)



$

(326)



$

(59)



$

(456)



$

(679)


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Operating loss


$

(35)



$

(10)



$

(62)



$

(64)



$

(46)



$

(171)



$

(193)


Depreciation, depletion and amortization



2




1




2




1




1




6




4


Special items



(12)
















(12)




35


Adjusted EBITDA(1)


$

(45)



$

(9)



$

(60)



$

(63)



$

(45)



$

(177)



$

(154)




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Unallocated Special Items Included in Net Charge to Earnings (Pretax)


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Legal benefits (charges)


$

12



$



$



$



$



$

12



$

(35)


Special items included in operating loss



12
















12




(35)


Pension settlement charges












(253)




(6)




(253)




(455)


Special items included in net charge to earnings


$

12



$



$



$

(253)



$

(6)



$

(241)



$

(490)


 

Unallocated Selected Items


in millions


Q1.2020



Q2.2020



Q3.2020



Q4.2020



Q4.2019



YTD.2020



YTD.2019


Cash spent for capital expenditures


$



$



$



$

(1)



$

(1)



$

(1)



$

(15)































For more information contact:
Analysts - Beth Baum, 206-539-3907
Media - Nancy Thompson, 919-861-0342

 

SOURCE Weyerhaeuser Company

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