Weyerhaeuser Investor Relations

Weyerhaeuser Reports Second Quarter Results

Jul 27, 2023

  • Achieved net earnings of $230 million, or $0.31 per diluted share, and net earnings before special items of $238 million, or $0.32 per diluted share
  • Generated Adjusted EBITDA of $469 million, a 19 percent increase compared with first quarter 2023
  • Completed strategic timberlands acquisition in Mississippi in July 2023

SEATTLE, July 27, 2023 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $230 million, or 31 cents per diluted share, on net sales of $2.0 billion. This compares with net earnings of $788 million, or $1.06 per diluted share, on net sales of $3.0 billion for the same period last year and net earnings of $151 million for first quarter 2023. Excluding an after-tax charge of $8 million for special items, the company reported second quarter net earnings of $238 million, or 32 cents per diluted share. There were no special items in second quarter 2022 or first quarter 2023. Adjusted EBITDA for second quarter 2023 was $469 million compared with $1.2 billion for the same period last year and $395 million for first quarter 2023.

Weyerhaeuser Company logo. (PRNewsFoto/Weyerhaeuser Company)

In July, Weyerhaeuser acquired 22 thousand acres of timberlands in Mississippi for approximately $60 million. These highly productive timberlands are strategically located to deliver immediate synergies with existing Weyerhaeuser operations and offer incremental real estate and natural climate solutions opportunities. 

"In the second quarter, our teams delivered solid results across each of our businesses," said Devin W. Stockfish, president and chief executive officer. "In addition, we continue to make meaningful progress towards our multi-year growth targets with the recent acquisition of high-quality timberlands in Mississippi. Looking forward, we are encouraged by recent improvements in the housing market, and maintain a favorable longer-term outlook for the demand fundamentals that will drive growth for our businesses. Our financial position is exceptionally strong, and we remain focused on delivering operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2023



2023



2022


(millions, except per share data)


Q1



Q2



Q2


Net sales


$

1,881



$

1,997



$

2,973


Net earnings


$

151



$

230



$

788


Net earnings per diluted share


$

0.21



$

0.31



$

1.06


Weighted average shares outstanding, diluted



734




732




746


Net earnings before special items(1)(2)


$

151



$

238



$

788


Net earnings per diluted share before special items(1)


$

0.21



$

0.32



$

1.06


Adjusted EBITDA(1)


$

395



$

469



$

1,205


Net cash from operations


$

126



$

496



$

1,146


Adjusted FAD(3)


$

55



$

415



$

1,065




(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)

Second quarter 2023 after-tax special items include an $8 million noncash environmental remediation charge. 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


2023



2023





(millions)


Q1



Q2



Change


Net sales


$

604



$

567



$

(37)


Net contribution to pretax earnings


$

120



$

104



$

(16)


Adjusted EBITDA


$

188



$

172



$

(16)


Q2 2023 Performance – In the West, fee harvest volumes were slightly higher than the first quarter. Export sales realizations were lower, while domestic sales realizations were comparable. Sales volumes to China were significantly lower and domestic sales volumes were significantly higher as the company intentionally flexed logs to domestic customers to capture higher margin opportunities. Per unit log and haul costs were lower. In the South, fee harvest volumes were comparable, while sales realizations and per unit log and haul costs were slightly lower. Forestry and road costs in the West and South were seasonally higher.

Q3 2023 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be approximately $25 million lower than the second quarter. In the West, the company expects fee harvest volumes and sales realizations to be moderately lower, partially offset by improved per unit log and haul costs. In the South, sales realizations are expected to be slightly lower, while fee harvest volumes and per unit log and haul costs are expected to be comparable. The company expects forestry and road costs in the West and South to be seasonally higher.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2023



2023





(millions)


Q1



Q2



Change


Net sales


$

101



$

80



$

(21)


Net contribution to pretax earnings


$

53



$

52



$

(1)


Adjusted EBITDA


$

89



$

70



$

(19)


Q2 2023 Performance – Earnings and Adjusted EBITDA decreased from the first quarter due to lower real estate sales. The number of acres sold decreased significantly due to the timing of transactions. The average price per acre was significantly higher and the average basis as a percentage of sales was significantly lower due to the mix of properties sold. 

Q3 2023 Outlook – Weyerhaeuser anticipates third quarter earnings will be slightly higher than the second quarter and Adjusted EBITDA will be approximately $20 million higher than the second quarter due to the timing and mix of real estate sales. The company still expects full year 2023 Adjusted EBITDA of approximately $300 million and now expects basis as a percentage of real estate sales to be 35 to 40 percent for the full year. 

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2023



2023





(millions)


Q1



Q2



Change


Net sales


$

1,318



$

1,500



$

182


Net contribution to pretax earnings


$

95



$

218



$

123


Adjusted EBITDA


$

148



$

270



$

122


Q2 2023 Performance – Sales realizations for lumber and oriented strand board increased 6 percent and 11 percent, respectively, compared with first quarter averages. Sales volumes for lumber were moderately higher and log costs were slightly lower, primarily for western logs. Unit manufacturing costs were slightly higher. For oriented strand board, sales and production volumes were moderately lower and unit manufacturing costs were moderately higher due to planned downtime for annual maintenance as well as a temporary period of unplanned downtime resulting from wildfire activity near the company's facility in Alberta. Fiber costs were slightly lower. Sales and production volumes were significantly higher for most engineered wood products, driven by improving demand from the homebuilding segment. Unit manufacturing costs were significantly lower for solid section and I-joist products, and raw material costs were lower for all products. Sales realizations were lower for most engineered wood products. Distribution results were significantly higher due to strong sales volumes for engineered wood products.

Q3 2023 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be significantly higher than the second quarter due to higher average sales realizations for lumber and oriented strand board. Excluding the effect of those items, the company expects third quarter financial results will be slightly lower than the second quarter. For lumber, the company expects moderately higher sales volumes, moderately lower log costs and slightly lower unit manufacturing costs. For oriented strand board, the company anticipates comparable sales volumes and fiber costs and slightly higher unit manufacturing costs. For engineered wood products, the company expects slightly higher sales volumes, slightly lower sales realizations and higher raw material costs, primarily for oriented strand board webstock.

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 2022, 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 28, 2023 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 28, 2023.

To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734908) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734908). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734908) from within North America, and at 1-412-317-6671 (access code: 13734908) 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: the growth of our business and long-term demand drivers; earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest volumes, sales realizations, log and haul costs and forestry and road expenses for our Timberlands business; sales volumes, log costs and unit manufacturing costs for our lumber business; sales volumes, fiber costs and unit manufacturing costs for our oriented strand board business; and sales volumes, sales realizations and raw material costs for our engineered wood products business; and basis as a percentage of real estate sales in our Real Estate, Energy and Natural Resources Business. 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 and cost 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 2022 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, 2023:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

151


Interest expense, net of capitalized interest















66


Income taxes















22


Net contribution (charge) to earnings


$

120



$

53



$

95



$

(29)



$

239


Non-operating pension and other post-employment benefit costs












9




9


Interest income and other












(12)




(12)


Operating income (loss)



120




53




95




(32)




236


Depreciation, depletion and amortization



68




3




53




2




126


Basis of real estate sold






33










33


Adjusted EBITDA


$

188



$

89



$

148



$

(30)



$

395


The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2023:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

230


Interest expense, net of capitalized interest















70


Income taxes















25


Net contribution (charge) to earnings


$

104



$

52



$

218



$

(49)



$

325


Non-operating pension and other post-employment benefit costs












12




12


Interest income and other












(18)




(18)


Operating income (loss)



104




52




218




(55)




319


Depreciation, depletion and amortization



68




5




52




1




126


Basis of real estate sold






13










13


Special items included in operating income (loss)(1)












11




11


Adjusted EBITDA


$

172



$

70



$

270



$

(43)



$

469




(1)

Operating income (loss) for Unallocated Items includes a pretax special item consisting of an $11 million noncash environmental remediation charge.

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 year-to-date period ended June 30, 2023:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

381


Interest expense, net of capitalized interest















136


Income taxes















47


Net contribution (charge) to earnings


$

224



$

105



$

313



$

(78)



$

564


Non-operating pension and other post-employment benefit costs












21




21


Interest income and other












(30)




(30)


Operating income (loss)



224




105




313




(87)




555


Depreciation, depletion and amortization



136




8




105




3




252


Basis of real estate sold






46










46


Special items included in operating income (loss)(1)












11




11


Adjusted EBITDA


$

360



$

159



$

418



$

(73)



$

864




(1)

Operating income (loss) for Unallocated Items includes a pretax special item consisting of an $11 million noncash environmental remediation charge.

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:



2023



2023



2022


(millions)


Q1



Q2



Q2


Net earnings


$

151



$

230



$

788


Environmental remediation charge






8





Net earnings before special items


$

151



$

238



$

788


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



2023



2023



2022




Q1



Q2



Q2


Net earnings per diluted share


$

0.21



$

0.31



$

1.06


Environmental remediation charge






0.01





Net earnings per diluted share before special items


$

0.21



$

0.32



$

1.06


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:



2023



2023



2022



2023


(millions)


Q1



Q2



Q2



Q2 YTD


Net cash from operations


$

126



$

496



$

1,146



$

622


Capital expenditures



(71)




(81)




(81)




(152)


Adjusted FAD


$

55



$

415



$

1,065



$

470


 

Weyerhaeuser Company

Exhibit 99.2

Q2.2023 Analyst Package   

Preliminary results (unaudited)


Consolidated Statement of Operations




Q1



Q2



Year-to-Date


in millions


March 31,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Net sales


$

1,881



$

1,997



$

2,973



$

3,878



$

6,085


Costs of sales



1,512




1,528




1,789




3,040




3,436


Gross margin



369




469




1,184




838




2,649


Selling expenses



22




22




23




44




46


General and administrative expenses



101




108




102




209




194


Other operating costs, net



10




20




12




30




18


Operating income



236




319




1,047




555




2,391


Non-operating pension and other post-employment benefit costs



(9)




(12)




(11)




(21)




(26)


Interest income and other



12




18




1




30





Interest expense, net of capitalized interest



(66)




(70)




(65)




(136)




(137)


Loss on debt extinguishment















(276)


Earnings before income taxes



173




255




972




428




1,952


Income taxes



(22)




(25)




(184)




(47)




(393)


Net earnings


$

151



$

230



$

788



$

381



$

1,559


 

Per Share Information




Q1



Q2



Year-to-Date




March 31,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Earnings per share, basic and diluted


$

0.21



$

0.31



$

1.06



$

0.52



$

2.09


Dividends paid per common share


$

1.09



$

0.19



$

0.18



$

1.28



$

1.81


Weighted average shares outstanding (in thousands):
















Basic



733,163




732,021




744,542




732,599




746,017


Diluted



733,546




732,362




745,582




732,961




747,194


Common shares outstanding at end of period (in thousands)       



732,507




730,850




741,738




730,850




741,738


 

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




Q1



Q2



Year-to-Date


in millions


March 31,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Net earnings


$

151



$

230



$

788



$

381



$

1,559


Non-operating pension and other post-employment benefit costs



9




12




11




21




26


Interest income and other



(12)




(18)




(1)




(30)





Interest expense, net of capitalized interest



66




70




65




136




137


Loss on debt extinguishment















276


Income taxes



22




25




184




47




393


Operating income



236




319




1,047




555




2,391


Depreciation, depletion and amortization



126




126




119




252




241


Basis of real estate sold



33




13




39




46




70


Special items included in operating income






11







11





Adjusted EBITDA(1)


$

395



$

469



$

1,205



$

864



$

2,702




(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

Q2.2023 Analyst Package

Preliminary results (unaudited)


Special Items Included in Net Earnings (Income Tax Affected)




Q1



Q2



Year-to-Date


in millions


March 31,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Net earnings


$

151



$

230



$

788



$

381



$

1,559


Loss on debt extinguishment(1)















207


Environmental remediation charge






8







8





Net earnings before special items(2)


$

151



$

238



$

788



$

389



$

1,766






Q1



Q2



Year-to-Date




March 31,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Net earnings per diluted share


$

0.21



$

0.31



$

1.06



$

0.52



$

2.09


Loss on debt extinguishment(1)















0.28


Environmental remediation charge






0.01







0.01





Net earnings per diluted share before special items(2)


$

0.21



$

0.32



$

1.06



$

0.53



$

2.37




(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,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Pension and post-employment costs:
















Pension and post-employment service costs


$

6



$

5



$

8



$

11



$

18


Non-operating pension and other post-employment benefit costs



9




12




11




21




26


Total company pension and post-employment costs


$

15



$

17



$

19



$

32



$

44


 

Weyerhaeuser Company

Q2.2023 Analyst Package

Preliminary results (unaudited)


Condensed Consolidated Balance Sheet


in millions


March 31,
 2023



June 30,
2023



December 31,
 2022


ASSETS










Current assets:










Cash and cash equivalents


$

797



$

1,095



$

1,581


Short-term investments






665





Receivables, net



440




462




357


Receivables for taxes



28




18




42


Inventories



586




539




550


Prepaid expenses and other current assets



202




188




216


Total current assets



2,053




2,967




2,746


Property and equipment, net



2,157




2,133




2,171


Construction in progress



222




260




222


Timber and timberlands at cost, less depletion



11,564




11,512




11,604


Minerals and mineral rights, less depletion



211




207




214


Deferred tax assets



8




8




8


Other assets



365




383




375


Total assets


$

16,580



$

17,470



$

17,340












LIABILITIES AND EQUITY










Current liabilities:










Current maturities of long-term debt


$

981



$

980



$

982


Accounts payable



266




254




247


Accrued liabilities



403




473




511


Total current liabilities



1,650




1,707




1,740


Long-term debt, net



4,072




4,817




4,071


Deferred tax liabilities



101




105




96


Deferred pension and other post-employment benefits



346




348




344


Other liabilities



335




352




340


Total liabilities



6,504




7,329




6,591


Total equity



10,076




10,141




10,749


Total liabilities and equity


$

16,580



$

17,470



$

17,340


 

Weyerhaeuser Company

Q2.2023 Analyst Package

Preliminary results (unaudited)


Consolidated Statement of Cash Flows




Q1



Q2



Year-to-Date


in millions


March 31,
 2023



June 30,
2023



June 30,
2022



June 30,
2023



June 30,
2022


Cash flows from operations:
















Net earnings


$

151



$

230



$

788



$

381



$

1,559


Noncash charges (credits) to earnings:
















Depreciation, depletion and amortization



126




126




119




252




241


Basis of real estate sold



33




13




39




46




70


Pension and other post-employment benefits



15




17




19




32




44


Share-based compensation expense



8




9




9




17




17


Loss on debt extinguishment















276


Other



3




(1)







2




14


Change in:
















Receivables, net



(83)




(22)




198




(105)




(40)


Receivables and payables for taxes



14




13




(83)




27




27


Inventories



(36)




50




29




14




(58)


Prepaid expenses and other current assets



(9)




17




(2)




8




(3)


Accounts payable and accrued liabilities



(87)




57




47




(30)




(15)


Pension and post-employment benefit contributions and payments



(6)




(5)




(10)




(11)




(14)


Other



(3)




(8)




(7)




(11)




(15)


Net cash from operations


$

126



$

496



$

1,146



$

622



$

2,103


Cash flows from investing activities:
















Capital expenditures for property and equipment


$

(50)



$

(69)



$

(71)



$

(119)



$

(121)


Capital expenditures for timberlands reforestation



(21)




(12)




(10)




(33)




(30)


Acquisition of timberlands






(2)




(265)




(2)




(283)


Purchase of short-term investments






(664)







(664)





Other



2




(2)










1


Net cash from investing activities


$

(69)



$

(749)



$

(346)



$

(818)



$

(433)


Cash flows from financing activities:
















Cash dividends on common shares


$

(799)



$

(139)



$

(134)



$

(938)



$

(1,352)


Net proceeds from issuance of long-term debt






743







743




881


Payments on long-term debt















(1,203)


Repurchases of common shares



(34)




(51)




(141)




(85)




(259)


Other



(8)




(2)




1




(10)




(5)


Net cash from financing activities


$

(841)



$

551



$

(274)



$

(290)



$

(1,938)


















Net change in cash, cash equivalents and restricted cash


$

(784)



$

298



$

526



$

(486)



$

(268)


Cash, cash equivalents and restricted cash at beginning of period



1,581




797




1,205




1,581




1,999


Cash, cash equivalents and restricted cash at end of period


$

797



$

1,095



$

1,731



$

1,095



$

1,731


















Cash paid during the period for:
















Interest, net of amounts capitalized


$

57



$

70



$

71



$

127



$

149


Income taxes, net of refunds


$

6



$

12



$

269



$

18



$

354


 

Weyerhaeuser Company

Timberlands Segment

Q2.2023 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations



in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Sales to unaffiliated customers


$

462



$

417



$

515



$

879



$

980


Intersegment sales



142




150




156




292




317


Total net sales



604




567




671




1,171




1,297


Costs of sales



461




439




495




900




918


Gross margin



143




128




176




271




379


General and administrative expenses



25




24




24




49




48


Other operating income, net



(2)







(1)




(2)




(4)


Operating income and Net contribution to earnings


$

120



$

104



$

153



$

224



$

335



 

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


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Operating income


$

120



$

104



$

153



$

224



$

335


Depreciation, depletion and amortization                            



68




68




66




136




131


Adjusted EBITDA(1)


$

188



$

172



$

219



$

360



$

466



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

 

Selected Segment Items


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Total (increase) decrease in working capital(2)                 


$

(24)



$

51



$

57



$

27



$

23


Cash spent for capital expenditures(3)


$

(26)



$

(22)



$

(23)



$

(48)



$

(53)




(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)





Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Third Party


Delivered logs:















Net Sales


West

$

229



$

206



$

308



$

435



$

567


(millions)


South


168




162




160




330




314




North


17




7




10




24




25




Total delivered logs


414




375




478




789




906




Stumpage and pay-as-cut timber


16




15




11




31




20




Recreational and other lease revenue


18




17




16




35




33




Other revenue


14




10




10




24




21




Total

$

462



$

417



$

515



$

879



$

980


Delivered Logs


West

$

137.10



$

123.45



$

173.35



$

130.30



$

167.63


Third Party Sales


South

$

38.23



$

37.49



$

38.47



$

37.86



$

37.81


Realizations (per ton)


North

$

81.71



$

78.69



$

83.93



$

80.73



$

76.79


Delivered Logs


West


1,674




1,661




1,778




3,335




3,382


Third Party Sales


South


4,386




4,341




4,167




8,727




8,302


Volumes (tons, thousands)


North


204




98




118




302




328


Fee Harvest Volumes


West


2,245




2,292




2,085




4,537




4,325


(tons, thousands)


South


6,432




6,430




6,159




12,862




12,001




North


285




175




180




460




458




(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

Q2.2023 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Net sales


$

101



$

80



$

117



$

181



$

245


Costs of sales



41




21




45




62




86


Gross margin



60




59




72




119




159


General and administrative expenses



7




7




7




14




13


Operating income and Net contribution to earnings


$

53



$

52



$

65



$

105



$

146


 

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


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Operating income


$

53



$

52



$

65



$

105



$

146


Depreciation, depletion and amortization



3




5




3




8




7


Basis of real estate sold



33




13




39




46




70


Adjusted EBITDA(1)


$

89



$

70



$

107



$

159



$

223



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

 

Selected Segment Items


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Cash spent for capital expenditures


$



$



$



$



$























 

Segment Statistics





Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Net Sales

Real Estate


$

72



$

47



$

90



$

119



$

187


(millions)

Energy and Natural Resources



29




33




27




62




58



Total


$

101



$

80



$

117



$

181



$

245


Acres Sold

Real Estate



20,753




9,281




26,906




30,034




51,032


Price per Acre

Real Estate


$

3,241



$

4,790



$

3,215



$

3,720



$

3,484


Basis as a Percent of
Real Estate Net Sales

Real Estate



46

%



28

%



43

%



39

%



37

%

 

Weyerhaeuser Company

Wood Products Segment

Q2.2023 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Net sales


$

1,318



$

1,500



$

2,341



$

2,818



$

4,860


Costs of sales



1,159




1,218




1,414




2,377




2,690


Gross margin



159




282




927




441




2,170


Selling expenses



22




21




21




43




42


General and administrative expenses



36




37




35




73




70


Other operating costs, net



6




6




8




12




13


Operating income and Net contribution to earnings


$

95



$

218



$

863



$

313



$

2,045


 

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


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Operating income


$

95



$

218



$

863



$

313



$

2,045


Depreciation, depletion and amortization



53




52




49




105




100


Adjusted EBITDA(1)


$

148



$

270



$

912



$

418



$

2,145



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

 

Selected Segment Items


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Total (increase) decrease in working capital(2)


$

(127)



$

40



$

205



$

(87)



$

(166)


Cash spent for capital expenditures


$

(43)



$

(56)



$

(56)



$

(99)



$

(95)




(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


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Structural Lumber

Third party net sales


$

515



$

573



$

998



$

1,088



$

2,204


(volumes presented

Third party sales realizations


$

450



$

479



$

776



$

465



$

901


in board feet)

Third party sales volumes(3)



1,144




1,196




1,289




2,340




2,446



Production volumes



1,143




1,164




1,232




2,307




2,435


Oriented Strand

Third party net sales


$

208



$

215



$

497



$

423



$

1,061


Board

Third party sales realizations


$

269



$

299



$

676



$

283



$

731


(volumes presented

Third party sales volumes(3)



773




720




735




1,493




1,452


in square feet 3/8")

Production volumes



761




727




758




1,488




1,497


Engineered Solid

Third party net sales


$

169



$

215



$

247



$

384



$

443


Section

Third party sales realizations


$

3,643



$

3,571



$

3,863



$

3,602



$

3,660


(volumes presented

Third party sales volumes(3)



4.7




6.0




6.4




10.7




12.1


in cubic feet)

Production volumes



4.6




5.9




6.4




10.5




12.1


Engineered

Third party net sales


$

87



$

126



$

168



$

213



$

305


I-joists

Third party sales realizations


$

3,171



$

2,901



$

3,432



$

3,006



$

3,207


(volumes presented

Third party sales volumes(3)



27




44




49




71




95


in lineal feet)

Production volumes



25




38




50




63




94


Softwood Plywood

Third party net sales


$

41



$

44



$

53



$

85



$

111


(volumes presented

Third party sales realizations


$

490



$

474



$

746



$

481



$

765


in square feet 3/8")

Third party sales volumes(3)



83




94




70




177




145



Production volumes



74




84




67




158




133


Medium Density

Third party net sales


$

38



$

42



$

53



$

80



$

101


Fiberboard

Third party sales realizations


$

1,314



$

1,342



$

1,174



$

1,329



$

1,129


(volumes presented

Third party sales volumes(3)



29




31




45




60




89


in square feet 3/4")

Production volumes



34




33




48




67




92




(3)

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

 

Weyerhaeuser Company

Unallocated Items

Q2.2023 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 and interest income and other.


Net Charge to Earnings


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Unallocated corporate function and variable compensation expense


$

(27)



$

(32)



$

(36)



$

(59)



$

(67)


Liability classified share-based compensation






(2)




2




(2)




3


Foreign exchange (loss) gain



(1)




2




3




1




3


Elimination of intersegment profit in inventory and LIFO



9




3




18




12




(41)


Other, net



(13)




(26)




(21)




(39)




(33)


Operating loss



(32)




(55)




(34)




(87)




(135)


Non-operating pension and other post-employment benefit costs



(9)




(12)




(11)




(21)




(26)


Interest income and other



12




18




1




30





Net charge to earnings


$

(29)



$

(49)



$

(44)



$

(78)



$

(161)


 

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


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Operating loss


$

(32)



$

(55)



$

(34)



$

(87)



$

(135)


Depreciation, depletion and amortization



2




1




1




3




3


Special items






11







11





Adjusted EBITDA(1)


$

(30)



$

(43)



$

(33)



$

(73)



$

(132)



(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


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Environmental remediation charge


$



$

11



$



$

11



$


Special items included in operating loss and net charge to
earnings


$



$

11



$



$

11



$


 

Unallocated Selected Items


in millions


Q1.2023



Q2.2023



Q2.2022



YTD.2023



YTD.2022


Cash spent for capital expenditures


$

(2)



$

(3)



$

(2)



$

(5)



$

(3)























For more information contact:

Analysts – Andy Taylor (206) 539-3907
Media  Nancy Thompson (919) 861-0342

SOURCE Weyerhaeuser Company


https://investor.weyerhaeuser.com/2023-07-27-Weyerhaeuser-Reports-Second-Quarter-Results