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Weyerhaeuser reports second quarter results

Jul 29, 2022

  • Achieved net earnings of $788 million, or $1.06 per diluted share
  • Generated record first half Adjusted EBITDA of $2.7 billion
  • Enhanced portfolio with strategic timberlands acquisition in North and South Carolina

SEATTLE, July 29, 2022 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $788 million, or $1.06 per diluted share, on net sales of $3.0 billion. This compares with net earnings of $1.0 billion, or $1.37 per diluted share, on net sales of $3.1 billion for the same period last year and net earnings of $771 million for the first quarter of 2022. There were no special items in the second quarter of 2022 or the same period last year. Net earnings before special items was $978 million for the first quarter of 2022.

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

Adjusted EBITDA for the second quarter of 2022 was $1.2 billion compared with $1.6 billion for the same period last year and $1.5 billion for the first quarter of 2022.

"In the second quarter, our teams delivered strong results across each of our businesses," said Devin W. Stockfish, president and chief executive officer. "Year to date, we have generated $2.7 billion of Adjusted EBITDA and $1.9 billion of Adjusted Funds Available for Distribution. Looking forward, we remain constructive on long-term demand fundamentals that support our businesses, notwithstanding the recent macroeconomic headwinds. Our financial position is exceptionally strong, and we remain committed to delivering operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2022


2022


2021

(millions, except per share data)


Q1


Q2


Q2

Net sales


$3,112


$2,973


$3,144

Net earnings


$771


$788


$1,028

Net earnings per diluted share


$1.03


$1.06


$1.37

Weighted average shares outstanding, diluted


749


746


752

Net earnings before special items(1)(2)


$978


$788


$1,028

Net earnings per diluted share before special items(1)


$1.31


$1.06


$1.37

Adjusted EBITDA(1)


$1,497


$1,205


$1,573

Net cash from operations


$957


$1,146


$1,308

Adjusted FAD(3)


$850


$1,065


$1,236



(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)

Special items for prior periods presented are included in the reconciliation tables within this release.



(3)

Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.

 

TIMBERLANDS

FINANCIAL HIGHLIGHTS


2022


2022



(millions)


Q1


Q2


Change

Net sales


$626


$671


$45

Net contribution to pretax earnings


$182


$153


$(29)

Adjusted EBITDA


$247


$219


$(28)

 

Q2 2022 Performance – In the West, fee harvest volumes were moderately lower than the first quarter due to unseasonably wet weather. Domestic sales realizations were moderately lower and per unit log and haul costs were significantly higher as harvesting operations transitioned to higher elevation units. Export sales realizations were moderately higher and export sales volumes were significantly higher, driven by strong demand in Japan. In the South, sales realizations for sawlogs and fiber logs were slightly higher, and fee harvest volumes increased moderately. Per unit log and haul costs were significantly higher, primarily due to fuel-related costs. Forestry and road costs in the West and South were seasonally higher.

Q3 2022 Outlook – Weyerhaeuser anticipates third quarter earnings before special items and Adjusted EBITDA will be lower than second quarter 2022, but moderately higher than third quarter 2021. In the West, the company expects comparable fee harvest volumes and significantly lower sales volumes due to export. Sales realizations are expected to be moderately lower, and per unit log and haul costs are expected to be lower. In the South, the company expects sales realizations and per unit log and haul costs to be comparable and fee harvest volumes to be moderately higher. Forestry and road costs in the West and South are expected to be seasonally higher.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2022


2022



(millions)


Q1


Q2


Change

Net sales


$128


$117


$(11)

Net contribution to pretax earnings


$81


$65


$(16)

Adjusted EBITDA


$116


$107


$(9)

 

Q2 2022 Performance – Earnings and Adjusted EBITDA decreased from the first quarter due to lower real estate sales. The average price per acre decreased and the average basis as a percentage of sales increased due to the mix of properties sold.

Q3 2022 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be slightly lower than third quarter 2021, primarily due to a decrease in acres sold year over year. The company now expects full year 2022 Adjusted EBITDA for the segment will be approximately $325 million, a $25 million increase from previous guidance.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2022


2022



(millions)


Q1


Q2


Change

Net sales


$2,519


$2,341


$(178)

Net contribution to pretax earnings


$1,182


$863


$(319)

Adjusted EBITDA


$1,233


$912


$(321)

 

Q2 2022 Performance – Sales realizations for lumber and oriented strand board decreased 25 percent and 14 percent, respectively, compared with first quarter averages. Sales volumes for lumber were significantly higher due to seasonal inventory drawdown and improved production, while unit manufacturing costs and log costs were slightly higher. Sales volumes for oriented strand board were slightly higher. Unit manufacturing costs were moderately higher and fiber costs were comparable. Sales realizations and production volumes for most engineered wood products were significantly higher. This was partially offset by significantly higher raw material costs, primarily for oriented strand board webstock. Distribution commodity realizations were significantly lower.

Q3 2022 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be comparable to the second quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. The company expects comparable sales volumes and unit manufacturing costs for lumber, as well as moderately lower log costs. For oriented strand board, the company expects slightly lower sales volumes, comparable fiber costs, and significantly higher unit manufacturing costs due to planned maintenance outages. Raw material costs for engineered wood products are expected to be significantly lower, primarily for oriented strand board webstock, partially offset by lower sales realizations, primarily for plywood. Sales volumes for engineered wood products are expected to be comparable.

UNALLOCATED

FINANCIAL HIGHLIGHTS


2022


2022



(millions)


Q1


Q2


Change

Net charge to pretax earnings


$(117)


$(44)


$73

Adjusted EBITDA


$(99)


$(33)


$66

 

Q2 2022 Performance – Second quarter results include an $18 million noncash benefit for the elimination of intersegment profit in inventory and LIFO due to a decrease in log and lumber inventories.

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 2021, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. 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 July 29, 2022 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 29, 2022.

To join the conference call from within North America, dial 877-407-0792 (access code: 13724915) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13724915). Replays will be available for two weeks at 844-512-2921 (access code: 13724915) from within North America, and at 412-317-6671 (access code: 13724915) 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, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for the company and for each of our businesses; sales volumes and sales realizations for our Timberlands business; log and haul, forestry and road costs and expenses; fee harvest volumes; acres to be sold; sales volumes and unit manufacturing costs for our lumber and oriented strand board businesses; sales realizations and sales volumes for our engineered wood products business; materials costs for each of our Wood Products lines; long-term demand fundamentals affecting our businesses; and long-term shareholder value and returns. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as "anticipate," "expect," "looking forward," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. 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, inflation, 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;
  • the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
  • our ability to hire and retain capable employees;
  • 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 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 as it relates to the cost of pension benefits 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 the accuracy of our estimates of charges related to casualty losses;
  • changes in accounting principles; and
  • other risks and uncertainties identified in our 2021 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 quarter ended March 31, 2022:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$771

Interest expense, net of capitalized interest










72

Loss on debt extinguishment(1)










276

Income taxes










209

Net contribution (charge) to earnings


$182


$81


$1,182


$(117)


$1,328

Non-operating pension and other post-employment benefit costs





15


15

Interest income and other





1


1

Operating income (loss)


182


81


1,182


(101)


1,344

Depreciation, depletion and amortization


65


4


51


2


122

Basis of real estate sold



31




31

Adjusted EBITDA


$247


$116


$1,233


$(99)


$1,497



(1)

Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt.

 

The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2022:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$788

Interest expense, net of capitalized interest










65

Income taxes










184

Net contribution (charge) to earnings


$153


$65


$863


$(44)


$1,037

Non-operating pension and other post-employment benefit costs





11


11

Interest income and other





(1)


(1)

Operating income (loss)


153


65


863


(34)


1,047

Depreciation, depletion and amortization


66


3


49


1


119

Basis of real estate sold



39




39

Adjusted EBITDA


$219


$107


$912


$(33)


$1,205

 

The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2021:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$1,028

Interest expense, net of capitalized interest










78

Income taxes










324

Net contribution (charge) to earnings


$113


$63


$1,338


$(84)


$1,430

Non-operating pension and other post-employment benefit costs





1


1

Interest income and other





(2)


(2)

Operating income (loss)


113


63


1,338


(85)


1,429

Depreciation, depletion and amortization


67


4


48


1


120

Basis of real estate sold



24




24

Adjusted EBITDA


$180


$91


$1,386


$(84)


$1,573

 

The table below reconciles Adjusted EBITDA for the year-to-date period ended June 30, 2022:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$1,559

Interest expense, net of capitalized interest










137

Loss on debt extinguishment(1)










276

Income taxes










393

Net contribution (charge) to earnings


$335


$146


$2,045


$(161)


$2,365

Non-operating pension and other post-employment benefit costs





26


26

Interest income and other






Operating income (loss)


335


146


2,045


(135)


2,391

Depreciation, depletion and amortization


131


7


100


3


241

Basis of real estate sold



70




70

Adjusted EBITDA


$466


$223


$2,145


$(132)


$2,702



(1)

Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt.

 

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

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:



2022


2022


2021

(millions)


Q1


Q2


Q2

Net earnings


$771


$788


$1,028

Loss on debt extinguishment


207



Net earnings before special items


$978


$788


$1,028

 

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



2022


2022


2021



Q1


Q2


Q2

Net earnings per diluted share


$1.03


$1.06


$1.37

Loss on debt extinguishment


0.28



Net earnings per diluted share before special items


$1.31


$1.06


$1.37

 

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.

The table below reconciles Adjusted FAD to net cash from operations:



2022


2022


2021


2022

(millions)


Q1


Q2


Q2


Q2 YTD

Net cash from operations


$957


$1,146


$1,308


$2,103

Capital expenditures


(70)


(81)


(72)


(151)

Adjustments to FAD(1)


(37)




(37)

Adjusted FAD


$850


$1,065


$1,236


$1,915



(1)

Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022. 

 

For more information contact:
Analysts – Andy Taylor (206) 539-3907
Media - Nancy Thompson (919) 861-0342

 

Weyerhaeuser Company

Exhibit 99.2

Q2.2022 Analyst Package 

Preliminary results (unaudited)   


Consolidated Statement of Operations




Q1



Q2



Year-to-Date


in millions


March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Net sales


$

3,112



$

2,973



$

3,144



$

6,085



$

5,650


Costs of sales



1,647




1,789




1,583




3,436




3,013


Gross margin



1,465




1,184




1,561




2,649




2,637


Selling expenses



23




23




24




46




44


General and administrative expenses



92




102




95




194




185


Other operating costs, net



6




12




13




18




23


Operating income



1,344




1,047




1,429




2,391




2,385


Non-operating pension and other post-employment benefit costs



(15)




(11)




(1)




(26)




(9)


Interest income and other



(1)




1




2







3


Interest expense, net of capitalized interest



(72)




(65)




(78)




(137)




(157)


Loss on debt extinguishment



(276)










(276)





Earnings before income taxes



980




972




1,352




1,952




2,222


Income taxes



(209)




(184)




(324)




(393)




(513)


Net earnings


$

771



$

788



$

1,028



$

1,559



$

1,709


 

Per Share Information




Q1



Q2



Year-to-Date




March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Earnings per share, basic and diluted


$

1.03



$

1.06



$

1.37



$

2.09



$

2.28


Dividends paid per common share


$

1.63



$

0.18



$

0.17



$

1.81



$

0.34


Weighted average shares outstanding (in thousands):





















Basic



747,507




744,542




750,127




746,017




749,429


Diluted



748,823




745,582




751,508




747,194




750,773


Common shares outstanding at end of period (in thousands)



745,442




741,738




749,782




741,738




749,782


 

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




Q1



Q2



Year-to-Date


in millions


March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Net earnings


$

771



$

788



$

1,028



$

1,559



$

1,709


Non-operating pension and other post-employment benefit costs



15




11




1




26




9


Interest income and other



1




(1)




(2)







(3)


Interest expense, net of capitalized interest



72




65




78




137




157


Loss on debt extinguishment



276










276





Income taxes



209




184




324




393




513


Operating income



1,344




1,047




1,429




2,391




2,385


Depreciation, depletion and amortization



122




119




120




241




238


Basis of real estate sold



31




39




24




70




51


Adjusted EBITDA(1)


$

1,497



$

1,205



$

1,573



$

2,702



$

2,674




(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.

 

Weyerhaeuser Company

Total Company Statistics

Q2.2022 Analyst Package

Preliminary results (unaudited)



Special Items Included in Net Earnings (Income Tax Affected)




Q1



Q2



Year-to-Date


in millions


March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Net earnings


$

771



$

788



$

1,028



$

1,559



$

1,709


Loss on debt extinguishment(1)



207










207





Net earnings before special items(2)


$

978



$

788



$

1,028



$

1,766



$

1,709






Q1



Q2



Year-to-Date




March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Net earnings per diluted share


$

1.03



$

1.06



$

1.37



$

2.09



$

2.28


Loss on debt extinguishment(1)



0.28










0.28





Net earnings per diluted share before special items(2)


$

1.31



$

1.06



$

1.37



$

2.37



$

2.28




(1) 

We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022.



(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



Year-to-Date


in millions


March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Pension and post-employment costs:





















Pension and post-employment service costs


$

10



$

8



$

10



$

18



$

21


Non-operating pension and other post-employment benefit costs



15




11




1




26




9


Total company pension and post-employment costs


$

25



$

19



$

11



$

44



$

30


 

Weyerhaeuser Company

Q2.2022 Analyst Package

Preliminary results (unaudited)


Consolidated Balance Sheet


in millions


March 31,

2022



June 30,

2022



December 31,

2021


ASSETS













Current assets:













Cash and cash equivalents


$

1,205



$

1,723



$

1,879


Receivables, net



745




547




507


Receivables for taxes



8




6




24


Inventories



611




571




520


Prepaid expenses and other current assets



206




165




205


Total current assets



2,775




3,012




3,135


Property and equipment, net



2,026




2,000




2,057


Construction in progress



203




233




175


Timber and timberlands at cost, less depletion



11,469




11,706




11,510


Minerals and mineral rights, less depletion



252




248




255


Deferred tax assets



15




11




17


Other assets



376




370




503


Total assets


$

17,116



$

17,580



$

17,652















LIABILITIES AND EQUITY













Current liabilities:













Accounts payable


$

310



$

283



$

281


Accrued liabilities



674




658




673


Total current liabilities



984




941




954


Long-term debt, net



5,053




5,053




5,099


Deferred tax liabilities



66




83




46


Deferred pension and other post-employment benefits



432




347




440


Other liabilities



344




340




346


Total liabilities



6,879




6,764




6,885


Total equity



10,237




10,816




10,767


Total liabilities and equity


$

17,116



$

17,580



$

17,652


 

Weyerhaeuser Company

Q2.2022 Analyst Package

Preliminary results (unaudited)


Consolidated Statement of Cash Flows




Q1



Q2



Year-to-Date


in millions


March 31,

2022



June 30,

2022



June 30,

2021



June 30,

2022



June 30,

2021


Cash flows from operations:





















Net earnings


$

771



$

788



$

1,028



$

1,559



$

1,709


Noncash charges (credits) to earnings:





















Depreciation, depletion and amortization



122




119




120




241




238


Basis of real estate sold



31




39




24




70




51


Deferred income taxes, net



14







11




14




19


Pension and other post-employment benefits



25




19




11




44




30


Share-based compensation expense



8




9




8




17




15


Loss on debt extinguishment



276










276





Change in:





















Receivables, net



(238)




198




(113)




(40)




(252)


Receivables and payables for taxes



110




(83)




116




27




236


Inventories



(87)




29




9




(58)




(51)


Prepaid expenses and other current assets



(1)




(2)




1




(3)




(1)


Accounts payable and accrued liabilities



(62)




47




125




(15)




65


Pension and post-employment benefit contributions and payments



(4)




(10)




(25)




(14)




(33)


Other



(8)




(7)




(7)




(15)




(20)


Net cash from operations


$

957



$

1,146



$

1,308



$

2,103



$

2,006


Cash flows from investing activities:





















Capital expenditures for property and equipment


$

(50)



$

(71)



$

(62)



$

(121)



$

(93)


Capital expenditures for timberlands reforestation



(20)




(10)




(10)




(30)




(32)


Acquisition of timberlands



(18)




(265)




(149)




(283)




(149)


Other



1







1




1




1


Net cash from investing activities


$

(87)



$

(346)



$

(220)



$

(433)



$

(273)


Cash flows from financing activities:





















Cash dividends on common shares


$

(1,218)



$

(134)



$

(128)



$

(1,352)



$

(255)


Net proceeds from issuance of long-term debt



881










881





Payments on long-term debt



(1,203)







(225)




(1,203)




(225)


Proceeds from exercise of stock options



12




2




28




14




45


Repurchases of common shares



(118)




(141)







(259)





Other



(18)




(1)




(2)




(19)




(16)


Net cash from financing activities


$

(1,664)



$

(274)



$

(327)



$

(1,938)



$

(451)























Net change in cash, cash equivalents and restricted cash


$

(794)



$

526



$

761



$

(268)



$

1,282


Cash, cash equivalents and restricted cash at beginning of period



1,999




1,205




1,016




1,999




495


Cash, cash equivalents and restricted cash at end of period


$

1,205



$

1,731



$

1,777



$

1,731



$

1,777























Cash paid during the period for:





















Interest, net of amounts capitalized


$

78



$

71



$

79



$

149



$

154


Income taxes, net of refunds


$

85



$

269



$

197



$

354



$

263


 

Weyerhaeuser Company

Timberlands Segment

Q2.2022 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Sales to unaffiliated customers


$

465



$

515



$

405



$

980



$

784


Intersegment sales



161




156




136




317




270


Total net sales



626




671




541




1,297




1,054


Costs of sales



423




495




407




918




790


Gross margin



203




176




134




379




264


General and administrative expenses



24




24




23




48




46


Other operating income, net



(3)




(1)




(2)




(4)




(3)


Operating income and Net contribution to earnings


$

182



$

153



$

113



$

335



$

221




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


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Operating income


$

182



$

153



$

113



$

335



$

221


Depreciation, depletion and amortization



65




66




67




131




131


Adjusted EBITDA(1)


$

247



$

219



$

180



$

466



$

352




(1)

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



Selected Segment Items


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Total decrease (increase) in working capital(2)


$

(34)



$

57



$

2



$

23



$

(11)


Cash spent for capital expenditures(3)


$

(30)



$

(23)



$

(21)



$

(53)



$

(49)




(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)





Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Third Party


Delivered logs:




















Net Sales


West

$

259



$

308



$

222



$

567



$

423


(millions)


South


154




160




145




314




276




North


15




10




9




25




25




Total delivered logs


428




478




376




906




724




Stumpage and pay-as-cut timber


9




11




7




20




13




Recreational and other lease revenue


17




16




16




33




32




Other revenue


11




10




6




21




15




Total

$

465



$

515



$

405



$

980



$

784


Delivered Logs


West

$

161.29



$

173.35



$

137.80



$

167.63



$

134.32


Third Party Sales


South

$

37.15



$

38.47



$

35.11



$

37.81



$

34.82


Realizations (per ton)


North

$

72.79



$

83.93



$

74.88



$

76.79



$

66.51


Delivered Logs


West


1,604




1,778




1,608




3,382




3,147


Third Party Sales


South


4,135




4,167




4,150




8,302




7,932


Volumes (tons, thousands)


North


210




118




115




328




376


Fee Harvest Volumes


West


2,240




2,085




2,099




4,325




4,200


(tons, thousands)


South


5,842




6,159




5,856




12,001




11,232




North


278




180




199




458




536




(4)

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

 

Weyerhaeuser Company

Real Estate, Energy & Natural Resources Segment

Q2.2022 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions

Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Net sales

$

128



$

117



$

110



$

245



$

216


Costs of sales


41




45




41




86




75


Gross margin


87




72




69




159




141


General and administrative expenses


6




7




6




13




12


Operating income and Net contribution to earnings

$

81



$

65



$

63



$

146



$

129




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


in millions

Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Operating income

$

81



$

65



$

63



$

146



$

129


Depreciation, depletion and amortization


4




3




4




7




7


Basis of real estate sold


31




39




24




70




51


Adjusted EBITDA(1)

$

116



$

107



$

91



$

223



$

187




(1)

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


Selected Segment Items


in millions

Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Cash spent for capital expenditures

$



$



$



$



$
























Segment Statistics





Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Net Sales

Real Estate


$

97



$

90



$

83



$

187



$

167


(millions)

Energy and Natural Resources



31




27




27




58




49



Total


$

128



$

117



$

110



$

245



$

216


Acres Sold

Real Estate



24,126




26,906




18,415




51,032




37,870


Price per Acre

Real Estate


$

3,785



$

3,215



$

3,227



$

3,484



$

3,523


Basis as a Percent of

Real Estate Net Sales

Real Estate



32

%



43

%



29

%



37

%



31

%

 

Weyerhaeuser Company

Wood Products Segment

Q2.2022 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021

Net sales


$

2,519



$

2,341



$

2,629



$

4,860



$

4,650

Costs of sales



1,276




1,414




1,229




2,690




2,353

Gross margin



1,243




927




1,400




2,170




2,297

Selling expenses



21




21




21




42




40

General and administrative expenses



35




35




35




70




70

Other operating costs, net



5




8




6




13




9

Operating income and Net contribution to earnings


$

1,182



$

863



$

1,338



$

2,045



$

2,178



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


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021

Operating income


$

1,182



$

863



$

1,338



$

2,045



$

2,178

Depreciation, depletion and amortization



51




49




48




100




97

Adjusted EBITDA(1)


$

1,233



$

912



$

1,386



$

2,145



$

2,275



(1)

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



Selected Segment Items


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Total decrease (increase) in working capital(2)


$

(371)



$

205



$

(49)



$

(166)



$

(261)


Cash spent for capital expenditures


$

(39)



$

(56)



$

(51)



$

(95)



$

(76)




(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


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Structural Lumber

Third party net sales


$

1,206



$

998



$

1,349



$

2,204



$

2,339


(volumes presented

Third party sales realizations


$

1,041



$

776



$

1,077



$

901



$

975


in board feet)

Third party sales volumes(3)



1,157




1,289




1,252




2,446




2,397



Production volumes



1,203




1,232




1,234




2,435




2,445


Oriented Strand

Third party net sales


$

564



$

497



$

605



$

1,061



$

1,043


Board

Third party sales realizations


$

787



$

676



$

911



$

731



$

757


(volumes presented

Third party sales volumes(3)



717




735




663




1,452




1,377


in square feet 3/8")

Production volumes



739




758




683




1,497




1,425


Engineered Solid

Third party net sales


$

196



$

247



$

166



$

443



$

308


Section

Third party sales realizations


$

3,433



$

3,863



$

2,533



$

3,660



$

2,412


(volumes presented

Third party sales volumes(3)



5.7




6.4




6.6




12.1




12.8


in cubic feet)

Production volumes



5.7




6.4




6.2




12.1




12.2


Engineered

Third party net sales


$

137



$

168



$

104



$

305



$

187


I-joists

Third party sales realizations


$

2,969



$

3,432



$

1,980



$

3,207



$

1,882


(volumes presented

Third party sales volumes(3)



46




49




53




95




100


in lineal feet)

Production volumes



44




50




51




94




95


Softwood Plywood

Third party net sales


$

58



$

53



$

69



$

111



$

125


(volumes presented

Third party sales realizations


$

783



$

746



$

902



$

765



$

733


in square feet 3/8")

Third party sales volumes(3)



75




70




77




145




171



Production volumes



66




67




62




133




142


Medium Density

Third party net sales


$

48



$

53



$

43



$

101



$

91


Fiberboard

Third party sales realizations


$

1,082



$

1,174



$

869



$

1,129



$

855


(volumes presented

Third party sales volumes(3)



44




45




50




89




107


in square feet 3/4")

Production volumes



44




48




52




92




108




(3)

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

 

Weyerhaeuser Company

Unallocated Items

Q2.2022 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


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Unallocated corporate function and variable compensation expense


$

(31)



$

(36)



$

(36)



$

(67)



$

(61)


Liability classified share-based compensation



1




2







3




(1)


Foreign exchange gain (loss)






3




(1)




3




(3)


Elimination of intersegment profit in inventory and LIFO



(59)




18




(28)




(41)




(45)


Other, net



(12)




(21)




(20)




(33)




(33)


Operating loss



(101)




(34)




(85)




(135)




(143)


Non-operating pension and other post-employment benefit costs



(15)




(11)




(1)




(26)




(9)


Interest income and other



(1)




1




2







3


Net charge to earnings


$

(117)



$

(44)



$

(84)



$

(161)



$

(149)




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


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Operating loss


$

(101)



$

(34)



$

(85)



$

(135)



$

(143)


Depreciation, depletion and amortization



2




1




1




3




3


Adjusted EBITDA(1)


$

(99)



$

(33)



$

(84)



$

(132)



$

(140)




(1)

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



Unallocated Selected Items


in millions


Q1.2022



Q2.2022



Q2.2021



YTD.2022



YTD.2021


Cash spent for capital expenditures


$

(1)



$

(2)



$



$

(3)



$























 

SOURCE Weyerhaeuser Company

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