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Print News Release

Weyerhaeuser Reports Third Quarter Results

Oct 26, 2023

  • Achieved net earnings of $239 million, or $0.33 per diluted share
  • Generated Adjusted EBITDA of $509 million, a 9 percent increase compared with second quarter 2023
  • Received approval for the company's first forest carbon credits

SEATTLE, Oct. 26, 2023 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $239 million, or 33 cents per diluted share, on net sales of $2.0 billion. This compares with net earnings of $310 million, or 42 cents per diluted share, on net sales of $2.3 billion for the same period last year and net earnings of $230 million for second quarter 2023. There were no special items in third quarter 2023 or the same period last year. Net earnings before special items were $238 million for second quarter 2023. Adjusted EBITDA for third quarter 2023 was $509 million compared with $583 million for the same period last year and $469 million for second quarter 2023.

"In the third quarter, we delivered solid results across our businesses," said Devin W. Stockfish, president and chief executive officer. "In addition, we achieved an important milestone in our Natural Climate Solutions growth program with the approval of our first forest carbon credits in Maine. Looking ahead, although near-term market conditions have moderated, we remain constructive on the longer-term demand fundamentals that support our businesses. Our balance sheet is exceptionally strong, and we remain focused on maintaining our industry-leading operating performance, serving our customers and delivering superior long-term value and returns for our shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2023



2023



2022


(millions, except per share data)


Q2



Q3



Q3


Net sales


$

1,997



$

2,022



$

2,276


Net earnings


$

230



$

239



$

310


Net earnings per diluted share


$

0.31



$

0.33



$

0.42


Weighted average shares outstanding, diluted



732




732




741


Net earnings before special items(1)(2)


$

238



$

239



$

310


Net earnings per diluted share before special items(1)


$

0.32



$

0.33



$

0.42


Adjusted EBITDA(1)


$

469



$

509



$

583


Net cash from operations


$

496



$

523



$

562


Adjusted FAD(3)


$

415



$

424



$

468




(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


2023



2023





(millions)


Q2



Q3



Change


Net sales


$

567



$

521



$

(46)


Net contribution to pretax earnings


$

104



$

78



$

(26)


Adjusted EBITDA


$

172



$

143



$

(29)


Q3 2023 Performance – In the West, fee harvest and domestic sales volumes were moderately lower than the second quarter as a result of higher elevation harvest operations and temporary harvest restrictions due to wildfire risk. Export sales volumes were significantly lower, which was partially driven by fewer export shipments to Japan. Sales realizations were slightly lower, partially driven by a reduction in export volumes, while domestic sales realizations were comparable. Per unit log and haul costs were lower. In the South, fee harvest volumes were moderately lower, partly due to wet conditions early in the quarter. Sales realizations were slightly lower, and per unit log and haul costs were comparable. Forestry and road costs in the West and South were seasonally higher.

Q4 2023 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be comparable to the third quarter. In the West, the company expects fee harvest volumes, sales realizations and forestry and road costs to be comparable. Per unit log and haul costs are expected to be moderately higher. In the South, the company expects fee harvest volumes, sales realizations and per unit log and haul costs to be comparable to the third quarter. Forestry and road costs are expected to be moderately lower.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2023



2023





(millions)


Q2



Q3



Change


Net sales


$

80



$

105



$

25


Net contribution to pretax earnings


$

52



$

56



$

4


Adjusted EBITDA


$

70



$

94



$

24


Q3 2023 Performance – Earnings and Adjusted EBITDA increased from the second quarter due to higher real estate sales. The number of acres sold increased significantly due to the timing of transactions. The average price per acre was significantly lower and the average basis as a percentage of sales was significantly higher due to the mix of properties sold.

Q4 2023 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be lower than the third quarter due to the timing and mix of real estate sales. The company now expects full year 2023 Adjusted EBITDA to be approximately $310 million, a $10 million increase from prior outlook, and continues to expect 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)


Q2



Q3



Change


Net sales


$

1,500



$

1,537



$

37


Net contribution to pretax earnings


$

218



$

277



$

59


Adjusted EBITDA


$

270



$

328



$

58


Q3 2023 Performance – Sales realizations for lumber were comparable to the second quarter average, while sales realizations for oriented strand board increased 39 percent. Sales volumes for lumber were slightly lower due to reduced production at several mills, partially driven by temporary operational disruptions. Unit manufacturing costs were comparable and log costs were moderately lower. For oriented strand board, sales volumes were moderately lower and unit manufacturing costs were slightly higher due to planned downtime for annual maintenance. Sales realizations were slightly lower for most engineered wood products, while sales volumes were slightly higher, primarily for solid section products. Unit manufacturing costs were slightly higher and raw material costs were higher, primarily for oriented strand board webstock.

Q4 2023 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be moderately lower than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects moderately higher sales volumes, comparable log costs, and slightly lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes, slightly higher fiber costs, and slightly lower unit manufacturing costs. For engineered wood products, the company expects lower sales realizations, slightly higher raw material costs, and slightly lower sales volumes, primarily for solid section products. For distribution, the company anticipates lower results compared to the third quarter, primarily driven by a decrease in commodity realizations.

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 October 27, 2023 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 27, 2023.

To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734909) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734909). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734909) from within North America, and at 1-412-317-6671 (access code: 13734909) 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: long-term demand drivers and fundamentals and future operating performance and delivery of long-term shareholder value and returns; 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 costs 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; sales volumes, sales realizations and raw material costs for our engineered wood products business; commodity realizations for our distribution 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," "maintain," "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 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 September 30, 2023:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

239


Interest expense, net of capitalized
interest















72


Income taxes















54


Net contribution (charge) to earnings


$

78



$

56



$

277



$

(46)



$

365


Non-operating pension and other post-
employment benefit costs












12




12


Interest income and other












(24)




(24)


Operating income (loss)



78




56




277




(58)




353


Depreciation, depletion and amortization



65




4




51




2




122


Basis of real estate sold






34










34


Adjusted EBITDA


$

143



$

94



$

328



$

(56)



$

509


 

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

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

310


Interest expense, net of capitalized
interest















67


Income taxes















77


Net contribution (charge) to earnings


$

107



$

48



$

344



$

(45)



$

454


Non-operating pension and other post-
employment benefit costs












12




12


Interest income and other












(9)




(9)


Operating income (loss)



107




48




344




(42)



$

457


Depreciation, depletion and amortization



61




5




51




2




119


Basis of real estate sold






7










7


Adjusted EBITDA


$

168



$

60



$

395



$

(40)



$

583


 

 

The table below reconciles Adjusted EBITDA for the year-to-date period ended September 30, 2023:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

620


Interest expense, net of capitalized
interest















208


Income taxes















101


Net contribution (charge) to earnings


$

302



$

161



$

590



$

(124)



$

929


Non-operating pension and other post-
employment benefit costs












33




33


Interest income and other












(54)




(54)


Operating income (loss)



302




161




590




(145)




908


Depreciation, depletion and amortization



201




12




156




5




374


Basis of real estate sold






80










80


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












11




11


Adjusted EBITDA


$

503



$

253



$

746



$

(129)



$

1,373




(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)


Q2



Q3



Q3



Net earnings


$

230



$

239



$

310



Environmental remediation charge



8









Net earnings before special items


$

238



$

239



$

310



 

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



2023



2023



2022





Q2



Q3



Q3



Net earnings per diluted share


$

0.31



$

0.33



$

0.42



Environmental remediation charge



0.01









Net earnings per diluted share before special items


$

0.32



$

0.33



$

0.42



 

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)


Q2



Q3



Q3



Q3 YTD


Net cash from operations


$

496



$

523



$

562



$

1,145


Capital expenditures



(81)




(99)




(94)




(251)


Adjusted FAD


$

415



$

424



$

468



$

894


 

 

 

Weyerhaeuser Company 

Exhibit 99.2

Q3.2023 Analyst Package   

Preliminary results (unaudited)      


Consolidated Statement of Operations




Q1



Q2



Q3



Year-to-Date


in millions


March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Net sales


$

1,881



$

1,997



$

2,022



$

2,276



$

5,900



$

8,361


Costs of sales



1,512




1,528




1,520




1,694




4,560




5,130


Gross margin



369




469




502




582




1,340




3,231


Selling expenses



22




22




22




24




66




70


General and administrative expenses



101




108




107




100




316




294


Other operating costs, net



10




20




20




1




50




19


Operating income



236




319




353




457




908




2,848


Non-operating pension and other post-employment benefit costs



(9)




(12)




(12)




(12)




(33)




(38)


Interest income and other



12




18




24




9




54




9


Interest expense, net of capitalized interest



(66)




(70)




(72)




(67)




(208)




(204)


Loss on debt extinguishment


















(276)


Earnings before income taxes



173




255




293




387




721




2,339


Income taxes



(22)




(25)




(54)




(77)




(101)




(470)


Net earnings


$

151



$

230



$

239



$

310



$

620



$

1,869




Per Share Information




Q1



Q2



Q3



Year-to-Date




March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Earnings per share, basic and diluted


$

0.21



$

0.31



$

0.33



$

0.42



$

0.85



$

2.51


Dividends paid per common share


$

1.09



$

0.19



$

0.19



$

0.18



$

1.47



$

1.99


Weighted average shares outstanding (in thousands):



















Basic



733,163




732,021




731,046




740,058




732,069




743,990


Diluted



733,546




732,362




731,742




740,975




732,542




745,081


Common shares outstanding at end of period
(in thousands)



732,507




730,850




730,128




737,547




730,128




737,547




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




Q1



Q2



Q3



Year-to-Date


in millions


March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Net earnings


$

151



$

230



$

239



$

310



$

620



$

1,869


Non-operating pension and other post-employment benefit costs



9




12




12




12




33




38


Interest income and other



(12)




(18)




(24)




(9)




(54)




(9)


Interest expense, net of capitalized interest



66




70




72




67




208




204


Loss on debt extinguishment


















276


Income taxes



22




25




54




77




101




470


Operating income



236




319




353




457




908




2,848


Depreciation, depletion and amortization



126




126




122




119




374




360


Basis of real estate sold



33




13




34




7




80




77


Special items included in operating income






11










11





Adjusted EBITDA(1)


$

395



$

469



$

509



$

583



$

1,373



$

3,285




(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

Q3.2023 Analyst Package 
























Preliminary results (unaudited) 
















































Special Items Included in Net Earnings (Income Tax Affected)


















































Q1



Q2



Q3



Year-to-Date


in millions


March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Net earnings


$

151



$

230



$

239



$

310



$

620



$

1,869


Loss on debt extinguishment(1)


















207


Environmental remediation charge






8










8





Net earnings before special items(2)


$

151



$

238



$

239



$

310



$

628



$

2,076




























Q1



Q2



Q3



Year-to-Date




March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Net earnings per diluted share


$

0.21



$

0.31



$

0.33



$

0.42



$

0.85



$

2.51


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



$

0.33



$

0.42



$

0.86



$

2.79




(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



Q3



Year-to-Date


in millions


March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Pension and post-employment costs:



















Pension and post-employment service costs


$

6



$

5



$

6



$

9



$

17



$

27


Non-operating pension and other post-employment benefit costs



9




12




12




12




33




38


Total company pension and post-employment costs


$

15



$

17



$

18



$

21



$

50



$

65


 

 

 

Weyerhaeuser Company    

Q3.2023 Analyst Package 

Preliminary results (unaudited) 


Condensed Consolidated Balance Sheet


in millions


March 31,
2023



June 30,
2023



September 30,
2023



December 31,
2022


ASSETS













Current assets:













Cash and cash equivalents


$

797



$

1,095



$

1,173



$

1,581


Short-term investments






665




668





Receivables, net



440




462




443




357


Receivables for taxes



28




18




18




42


Inventories



586




539




528




550


Prepaid expenses and other current assets



202




188




186




216


Total current assets



2,053




2,967




3,016




2,746


Property and equipment, net



2,157




2,133




2,106




2,171


Construction in progress



222




260




311




222


Timber and timberlands at cost, less depletion



11,564




11,512




11,521




11,604


Minerals and mineral rights, less depletion



211




207




203




214


Deferred tax assets



8




8




8




8


Other assets



365




383




385




375


Total assets


$

16,580



$

17,470



$

17,550



$

17,340















LIABILITIES AND EQUITY













Current liabilities:













Current maturities of long-term debt


$

981



$

980



$

861



$

982


Accounts payable



266




254




288




247


Accrued liabilities



403




473




537




511


Total current liabilities



1,650




1,707




1,686




1,740


Long-term debt, net



4,072




4,817




4,818




4,071


Deferred tax liabilities



101




105




113




96


Deferred pension and other post-employment benefits



346




348




349




344


Other liabilities



335




352




356




340


Total liabilities



6,504




7,329




7,322




6,591


Total equity



10,076




10,141




10,228




10,749


Total liabilities and equity


$

16,580



$

17,470



$

17,550



$

17,340


 

 

 

Weyerhaeuser Company    

Q3.2023 Analyst Package 

Preliminary results (unaudited) 


Consolidated Statement of Cash Flows




Q1



Q2



Q3



Year-to-Date


in millions


March 31,
 2023



June 30,
 2023



Sept 30,
2023



Sept 30,
2022



Sept 30,
2023



Sept 30,
2022


Cash flows from operations:



















Net earnings


$

151



$

230



$

239



$

310



$

620



$

1,869


Noncash charges (credits) to earnings:



















Depreciation, depletion and amortization



126




126




122




119




374




360


Basis of real estate sold



33




13




34




7




80




77


Pension and other post-employment benefits



15




17




18




21




50




65


Share-based compensation expense



8




9




9




8




26




25


Loss on debt extinguishment


















276


Other



3




(1)




(6)




3




(4)




17


Change in:



















Receivables, net



(83)




(22)




28




121




(77)




81


Receivables and payables for taxes



14




13




24




(12)




51




15


Inventories



(36)




50




9




28




23




(30)


Prepaid expenses and other current assets



(9)




17




(13)




(4)




(5)




(7)


Accounts payable and accrued liabilities



(87)




57




73




(8)




43




(23)


Pension and post-employment benefit contributions and payments



(6)




(5)




(5)




(5)




(16)




(19)


Other



(3)




(8)




(9)




(26)




(20)




(41)


Net cash from operations


$

126



$

496



$

523



$

562



$

1,145



$

2,665


Cash flows from investing activities:



















Capital expenditures for property and equipment


$

(50)



$

(69)



$

(90)



$

(86)



$

(209)



$

(207)


Capital expenditures for timberlands reforestation



(21)




(12)




(9)




(8)




(42)




(38)


Acquisition of timberlands






(2)




(68)




(3)




(70)




(286)


Purchase of short-term investments






(664)










(664)





Other



2




(2)




3







3




1


Net cash from investing activities


$

(69)



$

(749)



$

(164)



$

(97)



$

(982)



$

(530)


Cash flows from financing activities:



















Cash dividends on common shares


$

(799)



$

(139)



$

(138)



$

(133)



$

(1,076)



$

(1,485)


Net proceeds from issuance of long-term debt






743










743




881


Payments on long-term debt









(118)







(118)




(1,203)


Repurchases of common shares



(34)




(51)




(24)




(143)




(109)




(402)


Other



(8)




(2)




(1)







(11)




(5)


Net cash from financing activities


$

(841)



$

551



$

(281)



$

(276)



$

(571)



$

(2,214)





















Net change in cash, cash equivalents and restricted cash


$

(784)



$

298



$

78



$

189



$

(408)



$

(79)


Cash, cash equivalents and restricted cash at beginning of period



1,581




797




1,095




1,731




1,581




1,999


Cash, cash equivalents and restricted cash at end of period


$

797



$

1,095



$

1,173



$

1,920



$

1,173



$

1,920





















Cash paid during the period for:



















Interest, net of amounts capitalized


$

57



$

70



$

63



$

62



$

190



$

211


Income taxes, net of refunds


$

6



$

12



$

22



$

92



$

40



$

446


 

 

 

Weyerhaeuser Company    


Timberlands Segment

Q3.2023 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Sales to unaffiliated customers


$

462



$

417



$

380



$

441



$

1,259



$

1,421


Intersegment sales



142




150




141




133




433




450


Total net sales



604




567




521




574




1,692




1,871


Costs of sales



461




439




417




442




1,317




1,360


Gross margin



143




128




104




132




375




511


Selling expenses









1




1




1




1


General and administrative expenses



25




24




25




25




74




73


Other operating income, net



(2)










(1)




(2)




(5)


Operating income and Net contribution to earnings


$

120



$

104



$

78



$

107



$

302



$

442



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


in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Operating income


$

120



$

104



$

78



$

107



$

302



$

442


Depreciation, depletion and amortization



68




68




65




61




201




192


Adjusted EBITDA(1)


$

188



$

172



$

143



$

168



$

503



$

634



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


Selected Segment Items


in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Total (increase) decrease in working capital(2)


$

(24)



$

51



$

23



$

14



$

50



$

37


Cash spent for capital expenditures(3)


$

(26)



$

(22)



$

(26)



$

(22)



$

(74)



$

(75)




























(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



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Third Party


Delivered logs:


















Net Sales


West

$

229



$

206



$

176



$

224



$

611



$

791


(millions)


South


168




162




155




166




485




480




North


17




7




11




15




35




40




Total delivered logs


414




375




342




405




1,131




1,311




Stumpage and pay-as-cut timber


16




15




12




10




43




30




Recreational and other lease revenue


18




17




19




18




54




51




Other revenue


14




10




7




8




31




29




Total

$

462



$

417



$

380



$

441



$

1,259



$

1,421


Delivered Logs


West

$

137.10



$

123.45



$

119.19



$

158.59



$

126.89



$

164.97


Third Party Sales


South

$

38.23



$

37.49



$

36.92



$

38.59



$

37.56



$

38.08


Realizations (per ton)


North

$

81.71



$

78.69



$

73.81



$

83.84



$

78.46



$

79.26


Delivered Logs


West


1,674




1,661




1,479




1,411




4,814




4,793


Third Party Sales


South


4,386




4,341




4,180




4,310




12,907




12,612


Volumes (tons, thousands)


North


204




98




148




177




450




505


Fee Harvest Volumes


West


2,245




2,292




2,137




1,760




6,674




6,085


(tons, thousands)


South


6,432




6,430




6,146




6,112




19,008




18,113




North


285




175




223




245




683




703


(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

Q3.2023 Analyst Package

Preliminary results (unaudited)



Segment Statement of Operations

in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Net sales


$

101



$

80



$

105



$

68



$

286



$

313


Costs of sales



41




21




43




14




105




100


Gross margin



60




59




62




54




181




213


General and administrative expenses



7




7




6




6




20




19


Operating income and Net contribution to earnings


$

53



$

52



$

56



$

48



$

161



$

194


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

in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Operating income


$

53



$

52



$

56



$

48



$

161



$

194


Depreciation, depletion and amortization



3




5




4




5




12




12


Basis of real estate sold



33




13




34




7




80




77


Adjusted EBITDA(1)


$

89



$

70



$

94



$

60



$

253



$

283


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


Selected Segment Items

in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Cash spent for capital expenditures


$



$



$



$



$



$



























Segment Statistics




Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Net Sales

Real Estate


$

72



$

47



$

79



$

30



$

198



$

217


(millions)

Energy and Natural Resources



29




33




26




38




88




96



Total


$

101



$

80



$

105



$

68



$

286



$

313


Acres Sold

Real Estate



20,753




9,281




25,721




5,014




55,755




56,046


Price per Acre

Real Estate


$

3,241



$

4,790



$

3,033



$

5,046



$

3,403



$

3,624


Basis as a Percent of
Real Estate Net Sales

Real Estate



46

%



28

%



43

%



23

%



40

%



35

%























































Weyerhaeuser Company

                                                                                                                                              Wood Products Segment

Q3.2023 Analyst Package

Preliminary results (unaudited)









































Segment Statement of Operations








































in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


























Net sales


$

1,318



$

1,500



$

1,537



$

1,767



$

4,355



$

6,627


























Costs of sales



1,159




1,218




1,195




1,360




3,572




4,050


























Gross margin



159




282




342




407




783




2,577


























Selling expenses



22




21




20




22




63




64


























General and administrative expenses



36




37




38




36




111




106


























Other operating costs, net



6




6




7




5




19




18


























Operating income and Net contribution to earnings


$

95



$

218



$

277



$

344



$

590



$

2,389











































































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





































































in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


























Operating income


$

95



$

218



$

277



$

344



$

590



$

2,389


























Depreciation, depletion and amortization



53




52




51




51




156




151


























Adjusted EBITDA(1)


$

148



$

270



$

328



$

395



$

746



$

2,540



















































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


















































Selected Segment Items

























in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


























Total (increase) decrease in working capital(2)


$

(127)



$

40



$

52



$

136



$

(35)



$

(30)


























Cash spent for capital expenditures


$

(43)



$

(56)



$

(69)



$

(68)



$

(168)



$

(163)



























(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



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Structural Lumber

Third party net sales


$

515



$

573



$

570



$

676



$

1,658



$

2,880


(volumes presented

Third party sales realizations


$

450



$

479



$

481



$

556



$

470



$

786


in board feet)

Third party sales volumes(3)



1,144




1,196




1,184




1,216




3,524




3,662



Production volumes



1,143




1,164




1,174




1,140




3,481




3,575


Oriented Strand

Third party net sales


$

208



$

215



$

284



$

287



$

707



$

1,348


Board

Third party sales realizations


$

269



$

299



$

416



$

401



$

325



$

622


(volumes presented

Third party sales volumes(3)



773




720




683




715




2,176




2,167


in square feet 3/8")

Production volumes



761




727




724




735




2,212




2,232


Engineered Solid

Third party net sales


$

169



$

215



$

216



$

233



$

600



$

676


Section

Third party sales realizations


$

3,643



$

3,571



$

3,458



$

3,946



$

3,549



$

3,754


(volumes presented

Third party sales volumes(3)



4.7




6.0




6.2




5.9




16.9




18.0


in cubic feet)

Production volumes



4.6




5.9




5.6




6.0




16.1




18.1


Engineered

Third party net sales


$

87



$

126



$

122



$

166



$

335



$

471


I-joists

Third party sales realizations


$

3,171



$

2,901



$

2,862



$

3,525



$

2,951



$

3,312


(volumes presented

Third party sales volumes(3)



27




44




42




47




113




142


in lineal feet)

Production volumes



25




38




42




47




105




141


Softwood Plywood

Third party net sales


$

41



$

44



$

42



$

47



$

127



$

158


(volumes presented

Third party sales realizations


$

490



$

474



$

488



$

632



$

484



$

720


in square feet 3/8")

Third party sales volumes(3)



83




94




86




74




263




219



Production volumes



74




84




77




64




235




197


Medium Density

Third party net sales


$

38



$

42



$

40



$

50



$

120



$

151


Fiberboard

Third party sales realizations


$

1,314



$

1,342



$

1,242



$

1,274



$

1,298



$

1,173


(volumes presented

Third party sales volumes(3)



29




31




33




40




93




129


in square feet 3/4")

Production volumes



34




33




34




38




101




130



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

 

 

 

Weyerhaeuser Company                                                                                                                                                                Unallocated Items

Q3.2023 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



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Unallocated corporate function and variable compensation expense


$

(27)



$

(32)



$

(33)



$

(36)



$

(92)



$

(103)


Liability classified share-based compensation






(2)




2




2







5


Foreign exchange (loss) gain



(1)




2







9




1




12


Elimination of intersegment profit in inventory and LIFO



9




3




(4)




2




8




(39)


Other, net



(13)




(26)




(23)




(19)




(62)




(52)


Operating loss



(32)




(55)




(58)




(42)




(145)




(177)


Non-operating pension and other post-employment benefit costs



(9)




(12)




(12)




(12)




(33)




(38)


Interest income and other



12




18




24




9




54




9


Net charge to earnings


$

(29)



$

(49)



$

(46)



$

(45)



$

(124)



$

(206)



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


in millions


Q1.2023



Q2.2023



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Operating loss


$

(32)



$

(55)



$

(58)



$

(42)



$

(145)



$

(177)


Depreciation, depletion and amortization



2




1




2




2




5




5


Special items






11










11





Adjusted EBITDA(1)


$

(30)



$

(43)



$

(56)



$

(40)



$

(129)



$

(172)



(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



Q3.2023



Q3.2022



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



Q3.2023



Q3.2022



YTD.2023



YTD.2022


Cash spent for capital expenditures


$

(2)



$

(3)



$

(4)



$

(4)



$

(9)



$

(7)



























 

For more information contact:

Analysts – Andy Taylor (206) 539-3907

Media  Nancy Thompson (919) 861-0342

SOURCE Weyerhaeuser Company

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