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Weyerhaeuser Reports First Quarter Results

Apr 25, 2024

  • Achieved net earnings of $114 million, or $0.16 per diluted share
  • Generated Adjusted EBITDA of $352 million, a 10 percent increase compared with fourth quarter 2023
  • Increased quarterly base dividend by 5.3 percent
  • Enhanced our carbon capture and sequestration business with exploration agreement across five potential sites in the U.S. South

SEATTLE, April 25, 2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $114 million, or 16 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $151 million, or 21 cents per diluted share, on net sales of $1.9 billion for the same period last year and net earnings of $219 million for fourth quarter 2023. There were no special items in first quarter 2024 or the same period last year. Net earnings before special items was $121 million for fourth quarter 2023. Adjusted EBITDA for first quarter 2024 was $352 million, compared with $395 million for the same period last year and $321 million for fourth quarter 2023.

"In the first quarter, we delivered solid results across our businesses," said Devin W. Stockfish, president and chief executive officer. "In addition, we continued to make progress toward our multi-year targets by increasing our base dividend by 5.3 percent and signing our third carbon capture and sequestration agreement in the U.S. South. Looking forward, we are encouraged by the strong underlying fundamentals that will drive long-term growth for housing and repair and remodel demand, and natural climate solutions. And given our unmatched portfolio of assets, we are uniquely positioned to capitalize on these opportunities well into the future. Our balance sheet is exceptionally strong, and we remain focused on driving peer-leading performance across our businesses, serving our customers and delivering superior long-term value and returns to our shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2023



2024



2023


(millions, except per share data)


Q4



Q1



Q1


Net sales


$

1,774



$

1,796



$

1,881


Net earnings


$

219



$

114



$

151


Net earnings per diluted share


$

0.30



$

0.16



$

0.21


Weighted average shares outstanding, diluted



731




731




734


Net earnings before special items(1)(2)


$

121



$

114



$

151


Net earnings per diluted share before special items(1)


$

0.16



$

0.16



$

0.21


Adjusted EBITDA(1)


$

321



$

352



$

395


Net cash from operations


$

288



$

124



$

126


Adjusted FAD(3)


$

92



$

45



$

55




(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



2024





(millions)


Q4



Q1



Change


Net sales


$

534



$

521



$

(13)


Net contribution to pretax earnings


$

186



$

80



$

(106)


Pretax benefit for special items


$

(109)



$



$

109


Net contribution to pretax earnings before special items


$

77



$

80



$

3


Adjusted EBITDA


$

143



$

144



$

1


Q1 2024 Performance – In the West, fee harvest volumes were moderately higher than the fourth quarter. Domestic sales volumes were significantly higher and export sales volumes were significantly lower, primarily for China, as the company flexed volumes to the domestic market. Domestic sales realizations were slightly lower, primarily due to mix, while export sales realizations were comparable. Per unit log and haul costs were significantly lower due to the seasonal transition to lower elevation harvest activity. In the South, fee harvest volumes were slightly lower than the fourth quarter. Sales realizations and per unit log and haul costs were comparable. Forestry and road costs in the West and South were seasonally lower.

Q2 2024 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be slightly higher than the first quarter. In the West, the company expects moderately higher fee harvest volumes, comparable sales realizations, and higher per unit log and haul costs. In the South, the company expects fee harvest volumes to be moderately higher and sales realizations and per unit log and haul costs to be comparable. Forestry and road costs in the West and South are expected to be seasonally higher.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2023



2024





(millions)


Q4



Q1



Change


Net sales


$

77



$

107



$

30


Net contribution to pretax earnings


$

50



$

60



$

10


Adjusted EBITDA


$

67



$

94



$

27


Q1 2024 Performance – Earnings and Adjusted EBITDA increased from the fourth quarter due to higher real estate sales. The number of acres sold increased significantly and the average price per acre decreased due to the timing and mix of properties sold.

Q2 2024 Outlook – Weyerhaeuser anticipates second quarter earnings will be approximately $10 million lower than the first quarter and Adjusted EBITDA will be comparable to the first quarter due to the timing and mix of real estate sales.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2023



2024





(millions)


Q4



Q1



Change


Net sales


$

1,302



$

1,302



$


Net contribution to pretax earnings


$

119



$

128



$

9


Pretax benefit for special items


$

(14)



$



$

14


Net contribution to pretax earnings before special items


$

105



$

128



$

23


Adjusted EBITDA


$

159



$

184



$

25


Q1 2024 Performance – Sales realizations for both lumber and oriented strand board increased four percent compared with fourth quarter averages. Sales volumes for lumber were slightly lower, partially driven by winter weather disruptions early in the quarter. Unit manufacturing costs for lumber were slightly higher and log costs were slightly lower. For oriented strand board, sales volumes and fiber costs were slightly higher, while unit manufacturing costs were slightly lower. Sales realizations were lower for most engineered wood products, while raw material costs were moderately higher. Unit manufacturing costs were slightly higher, and sales volumes were comparable for solid section and lower for I-joist products. Distribution results were higher due to improved commodity realizations and margins.

Q2 2024 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be slightly higher than the first quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes, slightly lower log costs, and moderately lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes, slightly higher fiber costs, and comparable unit manufacturing costs. For engineered wood products, the company expects sales volumes to be higher, sales realizations to be comparable, and raw material costs to be higher, primarily for oriented strand board webstock. For distribution, the company anticipates higher results compared to the first quarter.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls approximately 10.5 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, and energy and natural resources, among others. In 2023, the company generated $7.7 billion in net sales and employed approximately 9,300 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's 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 April 26, 2024, to discuss first quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 26, 2024.

To join the conference call from within North America, dial 1-877-407-0792 (access code: 13742027) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13742027). Replays will be available for two weeks at 1-844-512-2921 (access code: 13742027) from within North America, and at 1-412-317-6671 (access code: 13742027) 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 growth in housing, repair and remodel demand and natural climate solutions; future operating performance, innovation 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 and sales volumes, sales realizations and raw material costs for our engineered wood products business and results for our distribution 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," "future," "growth," "look forward," "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 rates, inflation rates, housing starts, general availability and cost of financing for home mortgages and the relative strength of the U.S. dollar;
  • 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;
  • the effects of significant geopolitical conditions or developments such as significant international trade disputes or domestic or foreign terrorist attacks, armed conflict and political unrest;
  • the occurrence of regional or global health epidemics and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
  • 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 2023 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 December 31, 2023:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

219


Interest expense, net of capitalized interest















72


Income taxes















(3)


Net contribution (charge) to earnings


$

186



$

50



$

119



$

(67)



$

288


Non-operating pension and other post-employment benefit costs












12




12


Interest income and other












(22)




(22)


Operating income (loss)



186




50




119




(77)




278


Depreciation, depletion and amortization



66




4




54




2




126


Basis of real estate sold






13










13


Special items included in operating income (loss)(1)(2)(3)



(109)







(14)




27




(96)


Adjusted EBITDA


$

143



$

67



$

159



$

(48)



$

321




(1)

Operating income (loss) for Timberlands includes pretax special items consisting of an $84 million gain on the sale of timberlands and a $25 million legal benefit.

(2)

Operating income (loss) for Wood Products includes a pretax special item consisting of a $14 million insurance recovery.

(3)

Operating income (loss) for Unallocated includes a pretax special item consisting of $27 million of legal expense.

 

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2024:

(millions)


Timberlands



Real Estate 
& ENR



Wood 
Products



Unallocated 
Items



Total


Adjusted EBITDA by Segment:
















Net earnings














$

114


Interest expense, net of capitalized interest















67


Income taxes















20


Net contribution (charge) to earnings


$

80



$

60



$

128



$

(67)



$

201


Non-operating pension and other post-employment benefit costs












11




11


Interest income and other












(16)




(16)


Operating income (loss)



80




60




128




(72)




196


Depreciation, depletion and amortization



64




3




56




2




125


Basis of real estate sold






31










31


Adjusted EBITDA


$

144



$

94



$

184



$

(70)



$

352


 

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


 

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



2024



2023


(millions)


Q4



Q1



Q1


Net earnings


$

219



$

114



$

151


Gain on sale of timberlands



(83)








Insurance recovery



(10)








Legal benefit



(25)








Legal expense



20








Net earnings before special items


$

121



$

114



$

151


 

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



2023



2024



2023




Q4



Q1



Q1


Net earnings per diluted share


$

0.30



$

0.16



$

0.21


Gain on sale of timberlands



(0.12)








Insurance recovery



(0.01)








Legal benefit



(0.03)








Legal expense



0.02








Net earnings per diluted share before special items


$

0.16



$

0.16



$

0.21


 

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



2024



2023


(millions)


Q4



Q1



Q1


Net cash from operations


$

288



$

124



$

126


Capital expenditures



(196)




(79)




(71)


Adjusted FAD


$

92



$

45



$

55


 

Weyerhaeuser Company

Exhibit 99.2


Q1.2024 Analyst Package


Preliminary results (unaudited)




Consolidated Statement of Operations




Q4



Q1


in millions


Dec 31,
 2023



March 31,
2024



March 31,
2023


Net sales


$

1,774



$

1,796



$

1,881


Costs of sales



1,432




1,441




1,512


Gross margin



342




355




369


Selling expenses



21




22




22


General and administrative expenses



115




120




101


Gain on sale of timberlands



(84)








Other operating costs, net



12




17




10


Operating income



278




196




236


Non-operating pension and other post-employment benefit costs



(12)




(11)




(9)


Interest income and other



22




16




12


Interest expense, net of capitalized interest



(72)




(67)




(66)


Earnings before income taxes



216




134




173


Income taxes



3




(20)




(22)


Net earnings


$

219



$

114



$

151


 

Per Share Information






Q4



Q1




Dec 31,
 2023



March 31,
2024



March 31,
2023


Earnings per share, basic and diluted


$

0.30



$

0.16



$

0.21


Dividends paid per common share


$

0.19



$

0.34



$

1.09


Weighted average shares outstanding (in thousands):










Basic



730,422




730,043




733,163


Diluted



731,277




730,558




733,546


Common shares outstanding at end of period (in thousands)



729,753




729,141




732,507


 

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






Q4



Q1


in millions


Dec 31,
 2023



March 31,
2024



March 31,
2023


Net earnings


$

219



$

114



$

151


Non-operating pension and other post-employment benefit costs



12




11




9


Interest income and other



(22)




(16)




(12)


Interest expense, net of capitalized interest



72




67




66


Income taxes



(3)




20




22


Operating income



278




196




236


Depreciation, depletion and amortization



126




125




126


Basis of real estate sold



13




31




33


Special items included in operating income



(96)








Adjusted EBITDA(1)


$

321



$

352



$

395




(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


Q1.2024 Analyst Package


Preliminary results (unaudited)




Special Items Included in Net Earnings (Income Tax Affected)






Q4



Q1


in millions


Dec 31,
 2023



March 31,
2024



March 31,
2023


Net earnings


$

219



$

114



$

151


Gain on sale of timberlands



(83)








Insurance recovery



(10)








Legal benefit



(25)








Legal expense



20








Net earnings before special items(1)


$

121



$

114



$

151








Q4



Q1




Dec 31,
 2023



March 31,
2024



March 31,
2023


Net earnings per diluted share


$

0.30



$

0.16



$

0.21


Gain on sale of timberlands



(0.12)








Insurance recovery



(0.01)








Legal benefit



(0.03)








Legal expense



0.02








Net earnings per diluted share before special items(1)


$

0.16



$

0.16



$

0.21




(1)

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






Q4



Q1


in millions


Dec 31,
 2023



March 31,
2024



March 31,
2023


Pension and post-employment costs:










Pension and post-employment service costs


$

6



$

5



$

6


Non-operating pension and other post-employment benefit costs



12




11




9


Total company pension and post-employment costs


$

18



$

16



$

15


 

Weyerhaeuser Company


Q1.2024 Analyst Package


Preliminary results (unaudited)




Condensed Consolidated Balance Sheet




in millions


December 31,
2023



March 31,
2024



March 31,
 2023


ASSETS










Current assets:










Cash and cash equivalents


$

1,164



$

871



$

797


Receivables, net



354




405




440


Receivables for taxes



10




13




28


Inventories



566




630




586


Prepaid expenses and other current assets



219




192




202


Total current assets



2,313




2,111




2,053


Property and equipment, net



2,269




2,283




2,157


Construction in progress



270




243




222


Timber and timberlands at cost, less depletion



11,528




11,481




11,564


Minerals and mineral rights, less depletion



200




198




211


Deferred tax assets



15




14




8


Other assets



388




426




365


Total assets


$

16,983



$

16,756



$

16,580












LIABILITIES AND EQUITY










Current liabilities:










Current maturities of long-term debt


$



$

210



$

981


Accounts payable



287




310




266


Accrued liabilities



501




424




403


Total current liabilities



788




944




1,650


Long-term debt, net



5,069




4,861




4,072


Deferred tax liabilities



81




84




101


Deferred pension and other post-employment benefits



461




460




346


Other liabilities



348




353




335


Total liabilities



6,747




6,702




6,504


Total equity



10,236




10,054




10,076


Total liabilities and equity


$

16,983



$

16,756



$

16,580


 

Weyerhaeuser Company


Q1.2024 Analyst Package


Preliminary results (unaudited)




Consolidated Statement of Cash Flows






Q4



Q1


in millions


December 31,
2023



March 31,
2024



March 31,
2023


Cash flows from operations:










Net earnings


$

219



$

114



$

151


Noncash charges (credits) to earnings:










Depreciation, depletion and amortization



126




125




126


Basis of real estate sold



13




31




33


Pension and other post-employment benefits



18




16




15


Share-based compensation expense



10




10




8


Net gain on sale of timberlands



(84)








Other



(2)




1




3


Change in:










Receivables, net



81




(53)




(83)


Receivables and payables for taxes



(10)




(3)




14


Inventories



(36)




(68)




(36)


Prepaid expenses and other current assets



(8)




17




(9)


Accounts payable and accrued liabilities



(8)




(51)




(87)


Pension and post-employment benefit contributions and payments



(4)




(4)




(6)


Other



(27)




(11)




(3)


Net cash from operations


$

288



$

124



$

126


Cash flows from investing activities:










Capital expenditures for property and equipment


$

(181)



$

(57)



$

(50)


Capital expenditures for timberlands reforestation



(15)




(22)




(21)


Acquisition of timberlands



(163)








Proceeds from sale of timberlands



166








Maturities of short-term investments



664








Other



3




2




2


Net cash from investing activities


$

474



$

(77)



$

(69)


Cash flows from financing activities:










Cash dividends on common shares


$

(140)



$

(248)



$

(799)


Net proceeds from issuance of long-term debt



249








Payments on long-term debt



(860)








Repurchases of common shares



(22)




(50)




(34)


Other



2




(10)




(8)


Net cash from financing activities


$

(771)



$

(308)



$

(841)












Net change in cash, cash equivalents and restricted cash


$

(9)



$

(261)



$

(784)


Cash, cash equivalents and restricted cash at beginning of period



1,173




1,164




1,581


Cash, cash equivalents and restricted cash at end of period


$

1,164



$

903



$

797












Cash paid during the period for:










Interest, net of amounts capitalized


$

93



$

57



$

57


Income taxes, net of refunds


$

23



$

23



$

6


 

Weyerhaeuser Company

Timberlands Segment


Q1.2024 Analyst Package


Preliminary results (unaudited)




Segment Statement of Operations




in millions


Q4.2023



Q1.2024



Q1.2023


Sales to unaffiliated customers


$

395



$

387



$

462


Intersegment sales



139




134




142


Total net sales



534




521




604


Costs of sales



429




415




461


Gross margin



105




106




143


General and administrative expenses



26




25




25


Gain on sale of timberlands



(84)








Other operating (income) costs, net



(23)




1




(2)


Operating income and Net contribution to earnings


$

186



$

80



$

120


 

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




in millions


Q4.2023



Q1.2024



Q1.2023


Operating income


$

186



$

80



$

120


Depreciation, depletion and amortization



66




64




68


Special items



(109)








Adjusted EBITDA(1)


$

143



$

144



$

188




(1)

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

 

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




in millions


Q4.2023



Q1.2024



Q1.2023


Gain on sale of timberlands


$

(84)



$



$


Legal benefit


$

(25)



$



$


 

Selected Segment Items




in millions


Q4.2023



Q1.2024



Q1.2023


Total (increase) decrease in working capital(2)


$

(45)



$

8



$

(24)


Cash spent for capital expenditures(3)


$

(37)



$

(31)



$

(26)




(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)





Q4.2023



Q1.2024



Q1.2023


Third Party


Delivered logs:









Net Sales


West

$

183



$

176



$

229


(millions)


South


158




151




168




North


13




13




17




Total delivered logs


354




340




414




Stumpage and pay-as-cut timber


13




11




16




Recreational and other lease revenue


20




19




18




Other revenue


8




17




14




Total

$

395



$

387



$

462


Delivered Logs


West

$

126.58



$

121.06



$

137.10


Third Party Sales


South

$

37.15



$

36.93



$

38.23


Realizations (per ton)


North

$

69.92



$

73.58



$

81.71


Delivered Logs


West


1,445




1,452




1,674


Third Party Sales


South


4,266




4,089




4,386


Volumes (tons, thousands)


North


179




175




204


Fee Harvest Volumes


West


2,079




2,214




2,245


(tons, thousands)


South


6,169




5,990




6,432




North


259




239




285




(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


Q1.2024 Analyst Package


Preliminary results (unaudited)




Segment Statement of Operations




in millions


Q4.2023



Q1.2024



Q1.2023


Net sales


$

77



$

107



$

101


Costs of sales



21




41




41


Gross margin



56




66




60


General and administrative expenses



6




6




7


Operating income and Net contribution to earnings


$

50



$

60



$

53


 

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




in millions


Q4.2023



Q1.2024



Q1.2023


Operating income


$

50



$

60



$

53


Depreciation, depletion and amortization



4




3




3


Basis of real estate sold



13




31




33


Adjusted EBITDA(1)


$

67



$

94



$

89




(1)

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

 

Selected Segment Items




in millions


Q4.2023



Q1.2024



Q1.2023


Cash spent for capital expenditures


$



$



$


 

Segment Statistics





Q4.2023



Q1.2024



Q1.2023


Net Sales

Real Estate


$

39



$

83



$

72


(millions)

Energy and Natural Resources



38




24




29



Total


$

77



$

107



$

101


Acres Sold

Real Estate



7,187




19,774




20,753


Price per Acre

Real Estate


$

4,202



$

3,629



$

3,241


Basis as a Percent of
Real Estate Net Sales

Real Estate



33

%



37

%



46

%

 

Weyerhaeuser Company

Wood Products Segment

Q1.2024 Analyst Package

Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q4.2023



Q1.2024



Q1.2023


Net sales


$

1,302



$

1,302



$

1,318


Costs of sales



1,127




1,107




1,159


Gross margin



175




195




159


Selling expenses



21




21




22


General and administrative expenses



38




40




36


Other operating (income) costs, net



(3)




6




6


Operating income and Net contribution to earnings


$

119



$

128



$

95


 

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


in millions


Q4.2023



Q1.2024



Q1.2023


Operating income


$

119



$

128



$

95


Depreciation, depletion and amortization



54




56




53


Special items



(14)








Adjusted EBITDA(1)


$

159



$

184



$

148




(1)

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

 

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


in millions


Q4.2023



Q1.2024



Q1.2023


Insurance recovery


$

(14)



$



$


 

Selected Segment Items


in millions


Q4.2023



Q1.2024



Q1.2023


Total decrease (increase) in working capital(2)


$

61



$

(174)



$

(127)


Cash spent for capital expenditures


$

(155)



$

(42)



$

(43)




(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


Q4.2023



Q1.2024



Q1.2023


Structural Lumber

Third party net sales


$

465



$

464



$

515


(volumes presented

Third party sales realizations


$

413



$

429



$

450


in board feet)

Third party sales volumes(3)



1,125




1,080




1,144



Production volumes



1,091




1,085




1,143


Oriented Strand

Third party net sales


$

237



$

255



$

208


Board

Third party sales realizations


$

344



$

359



$

269


(volumes presented

Third party sales volumes(3)



688




710




773


in square feet 3/8")

Production volumes



721




735




761


Engineered Solid

Third party net sales


$

183



$

177



$

169


Section

Third party sales realizations


$

3,385



$

3,212



$

3,643


(volumes presented

Third party sales volumes(3)



5.4




5.4




4.7


in cubic feet)

Production volumes



5.8




5.7




4.6


Engineered

Third party net sales


$

112



$

99



$

87


I-joists

Third party sales realizations


$

2,766



$

2,648



$

3,171


(volumes presented

Third party sales volumes(3)



41




37




27


in lineal feet)

Production volumes



42




43




25


Softwood Plywood

Third party net sales


$

39



$

41



$

41


(volumes presented

Third party sales realizations


$

495



$

508



$

490


in square feet 3/8")

Third party sales volumes(3)



79




81




83



Production volumes



75




72




74


Medium Density

Third party net sales


$

35



$

39



$

38


Fiberboard

Third party sales realizations


$

1,191



$

1,183



$

1,314


(volumes presented

Third party sales volumes(3)



29




33




29


in square feet 3/4")

Production volumes



31




34




34




(3)

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

 

Weyerhaeuser Company

Unallocated Items

Q1.2024 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


Q4.2023



Q1.2024



Q1.2023


Unallocated corporate function and variable compensation expense


$

(35)



$

(38)



$

(27)


Liability classified share-based compensation



(2)




(1)





Foreign exchange loss






(1)




(1)


Elimination of intersegment profit in inventory and LIFO



3




(6)




9


Other, net



(43)




(26)




(13)


Operating loss



(77)




(72)




(32)


Non-operating pension and other post-employment benefit costs



(12)




(11)




(9)


Interest income and other



22




16




12


Net charge to earnings


$

(67)



$

(67)



$

(29)


 

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


in millions


Q4.2023



Q1.2024



Q1.2023


Operating loss


$

(77)



$

(72)



$

(32)


Depreciation, depletion and amortization



2




2




2


Special items



27








Adjusted EBITDA(1)


$

(48)



$

(70)



$

(30)




(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


Q4.2023



Q1.2024



Q1.2023



Legal expense



27









Special items included in operating loss and net charge to earnings


$

27



$



$



 

Unallocated Selected Items


in millions


Q4.2023



Q1.2024



Q1.2023


Cash spent for capital expenditures


$

(4)



$

(6)



$

(2)


 

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

 

SOURCE Weyerhaeuser Company

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