FEDERAL WAY, Wash.,
Oct. 31, 2014 /PRNewswire/ --
Weyerhaeuser Company (NYSE: WY) today reported third quarter net
earnings to common shareholders of $1,153
million, or $2.15 per diluted
share, on net sales from continuing operations of $1.9 billion. This compares with net earnings of
$157 million, or 27 cents per diluted share, on net sales from
continuing operations of $1.9 billion
for the same period last year.
Third quarter earnings include $966
million from discontinued operations related to the
divestiture of Weyerhaeuser Real Estate Company and $9 million from special items. Excluding these
items, the company reported net earnings of $178 million, or 33
cents per diluted share for the third quarter. This compares
with net earnings from continuing operations before special items
of $136 million for the same period
last year and $234 million for second
quarter 2014.
"We increased our quarterly dividend by 32 percent and
repurchased $130 million of common
shares in the third quarter, demonstrating our strong commitment to
returning cash to shareholders," said Doyle
Simons, president and chief executive officer. "Our
relentless focus on operational excellence resulted in another very
good quarter for earnings and cash flow generation, as we continue
to drive sustainable performance improvements in each of our
businesses."
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WEYERHAEUSER
FINANCIAL HIGHLIGHTS
|
2014
|
2014
|
2013
|
(millions, except
per share data)
|
2Q
|
3Q
|
3Q
|
Net sales from
continuing operations
|
$1,964
|
$1,915
|
$1,857
|
Net earnings
attributable to Weyerhaeuser common shareholders(1)
|
$280
|
$1,153
|
$157
|
Weighted average
shares outstanding, diluted(2)
|
590
|
536
|
587
|
Earnings per diluted
share
|
$0.47
|
$2.15
|
$0.27
|
Earnings per diluted
share from continuing operations
|
$0.43
|
$0.35
|
$0.23
|
Net earnings from
continuing operations before special items(3)
|
$234
|
$178
|
$136
|
Earnings per diluted
share from continuing operations before special items
|
$0.40
|
$0.33
|
$0.23
|
Net change in cash
and cash equivalents(4)
|
$68
|
$775
|
($966)
|
Cash and cash
equivalents at end of period(5)
|
$845
|
$1,620
|
$1,392
|
(1) Includes net earnings from discontinued operations.
(2) Weyerhaeuser's weighted average common shares outstanding
decreased during the third quarter of 2014 due to retirement of
approximately 59 million shares tendered under the exchange offer
associated with the divestiture of Weyerhaeuser Real Estate Company
and repurchase of approximately 4 million common shares. At the end
of the third quarter the company had approximately 525 million
common shares outstanding.
(3) Special items for the second and third quarters of 2014
include gains on a postretirement plan amendment and restructuring
charges related to the company's SG&A cost reduction
initiative.
(4) Net change in cash and equivalents excludes discontinued
operations for all quarters. Third quarter 2014 includes
$707 million related to the
divestiture of Weyerhaeuser Real Estate Company.
(5) Cash and cash equivalents excludes discontinued operations
for all quarters. Third quarter 2013 includes cash and cash
equivalents designated for the purchase of Longview Timber LLC and
the repayment of their acquired debt.
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TIMBERLANDS
|
|
|
|
FINANCIAL
HIGHLIGHTS (millions)
|
2Q
2014
|
3Q
2014
|
Change
|
Net sales
|
$397
|
$364
|
($33)
|
Contribution to
pre-tax earnings
|
$170
|
$136
|
($34)
|
3Q 2014 Performance - Sales volumes and realizations for
Western logs declined due to seasonally softer domestic
market conditions and reduced Chinese demand. In the South, log
sales volumes increased and realizations improved slightly.
Earnings from disposition of non-strategic timberlands decreased
by $5 million compared with the
second quarter.
4Q 2014 Outlook - Weyerhaeuser anticipates lower earnings
from the Timberlands segment in the fourth quarter, primarily due
to reduced earnings from disposition of non-strategic timberlands.
In the West, the company expects improved log realizations and
increased road maintenance costs. In the South, Weyerhaeuser
anticipates higher silviculture costs.
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|
WOOD
PRODUCTS
|
|
FINANCIAL
HIGHLIGHTS (millions)
|
2Q
2014
|
3Q
2014
|
Change
|
Net sales
|
$1,077
|
$1,048
|
($29)
|
Contribution to
pre-tax earnings
|
$102
|
$105
|
$3
|
3Q 2014 Performance - Average realizations
for lumber and engineered wood products increased, and Western
log costs declined. These improvements were largely offset by lower
realizations for oriented strand board.
4Q 2014 Outlook - Weyerhaeuser expects earnings from the
Wood Products segment in the fourth quarter to be significantly
lower than the third quarter, and comparable to fourth quarter
2013. The company anticipates weaker realizations in lumber and
oriented strand board, and seasonally lower sales volumes across
all product lines.
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CELLULOSE
FIBERS
|
|
FINANCIAL
HIGHLIGHTS (millions)
|
2Q
2014
|
3Q
2014
|
Change
|
Net sales
|
$490
|
$503
|
$13
|
Contribution to
pre-tax earnings
|
$91
|
$59
|
($32)
|
3Q 2014 Performance - Maintenance costs increased as
expected due to an extended planned outage at the company's liquid
packaging board facility and additional maintenance outage days
within the pulp mill system. These costs were partially offset by
higher average price realizations for pulp and liquid packaging
board and improved sales volumes.
4Q 2014 Outlook - Weyerhaeuser expects significantly
higher earnings from the Cellulose Fibers segment in the fourth
quarter due to reduced maintenance expense.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners
of timberlands, began operations in 1900. We own or control nearly
7 million acres of timberlands, primarily in the U.S., and manage
another 14 million acres 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 and cellulose fibers products. Our company is a real estate
investment trust. In 2013, our continuing operations generated
$7.3 billion in sales and employed
approximately 13,000 people who serve customers worldwide. We are
listed on the Dow Jones World Sustainability Index. Our common
stock trades on the New York Stock Exchange under the symbol WY.
Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10
a.m. Eastern) on October 31 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 31.
To join the conference call from within North America, dial 877-296-9413 (access code:
23991084) at least 15 minutes prior to the call. Those calling from
outside North America should dial
706-679-2458 (access code: 23991084). Replays will be available for
two weeks at 855-859-2056 (access code: 23991084) from within
North America and at 404-537-3406
(access code: 23991084) 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. These statements are based on various assumptions and may
not be accurate because of risks and uncertainties surrounding
these assumptions. Factors listed below, as well as other factors,
may cause actual results to differ significantly from these
forward-looking statements. There is no guarantee that any of the
events anticipated by these forward-looking statements will occur.
If any of the events occur, there is no guarantee what effect they
will have on company operations or financial condition. The company
will not update these forward-looking statements after the date of
this news release.
Some forward-looking statements discuss the company's plans,
strategies and intentions. They use words such as "expects," "may,"
"will," "believes," "should," "approximately," "anticipates,"
"estimates," and "plans." In addition, these words may use
the positive or negative or other variations of those terms.
This release contains forward-looking statements regarding the
company's expectations during the fourth quarter of 2014, including
with respect to earnings, log realizations, road maintenance and
silviculture costs, dispositions of non-strategic timberlands,
sales volumes across the Wood Products product lines, realizations
in lumber and oriented strand board, and maintenance expenses in
Cellulose Fibers.
Major risks, uncertainties and assumptions that affect the
company's businesses and may cause actual results to differ from
these forward-looking statements, include, but are not limited
to:
- the effect of general economic conditions, including employment
rates, housing starts, interest rate levels, availability of
financing for home mortgages, and strength of the U.S. dollar;
- market demand for the company's products, which is related to
the strength of the various U.S. business segments and U.S. and
international economic conditions;
- performance of the company's manufacturing operations,
including maintenance requirements;
- the level of competition from domestic and foreign
producers;
- the successful execution of internal performance plans,
including restructurings and cost reduction initiatives;
- raw material prices;
- energy prices;
- the effect of weather;
- the risk of loss from fires, floods, windstorms, hurricanes,
pest infestation and other natural disasters;
- transportation 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 retirements and changes in the market
price of company stock on charges for stock-based
compensation;
- changes in accounting principles; and
- other factors described under "Risk Factors" in the Company's
annual report on Form 10-K and quarterly reports on Form
10-Q.
The company also is a large exporter and is affected by changes
in economic activity in Europe and
Asia, particularly Japan and China. It is affected by changes in currency
exchange rates, particularly the relative value of the U.S. dollar
to the euro and the Canadian dollar, and the relative value of the
euro and the yen. Restrictions on international trade or tariffs
imposed on imports also may affect the company.
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For more information
contact:
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Analysts -
Beth Baum or Denise Merle (253) 924-2058
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Media -
Anthony Chavez (253) 924-7148
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Weyerhaeuser
Company
|
|
Exhibit
99.2
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
Consolidated
Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Net
Sales
|
$ 1,964
|
|
$ 1,915
|
|
$ 1,857
|
|
$ 5,615
|
|
$ 5,486
|
Cost of products
sold
|
1,499
|
|
1,504
|
|
1,479
|
|
4,364
|
|
4,304
|
Gross
margin
|
465
|
|
411
|
|
378
|
|
1,251
|
|
1,182
|
Selling
expenses
|
27
|
|
28
|
|
32
|
|
83
|
|
96
|
General and
administrative expenses
|
88
|
|
73
|
|
98
|
|
249
|
|
299
|
Research and
development expenses
|
7
|
|
5
|
|
8
|
|
19
|
|
23
|
Charges for
restructuring, closures and impairments
|
8
|
|
10
|
|
1
|
|
37
|
|
7
|
Other operating
income, net
|
(65)
|
|
(23)
|
|
(4)
|
|
(163)
|
|
(32)
|
Operating
income
|
400
|
|
318
|
|
243
|
|
1,026
|
|
789
|
Interest income and
other
|
11
|
|
7
|
|
21
|
|
27
|
|
39
|
Interest expense, net
of capitalized interest
|
(83)
|
|
(88)
|
|
(94)
|
|
(254)
|
|
(256)
|
Earnings from
continuing operations before income taxes
|
328
|
|
237
|
|
170
|
|
799
|
|
572
|
Income
taxes
|
(59)
|
|
(39)
|
|
(24)
|
|
(148)
|
|
(99)
|
Earnings from
continuing operations
|
269
|
|
198
|
|
146
|
|
651
|
|
473
|
Earnings from
discontinued operations, net of income taxes
|
22
|
|
966
|
|
21
|
|
998
|
|
36
|
Net
earnings
|
291
|
|
1,164
|
|
167
|
|
1,649
|
|
509
|
Dividends on
preference shares
|
(11)
|
|
(11)
|
|
(10)
|
|
(33)
|
|
(12)
|
Net earnings
attributable to Weyerhaeuser common shareholders
|
$ 280
|
|
$ 1,153
|
|
$ 157
|
|
$ 1,616
|
|
$ 497
|
|
Per Share
Information
|
|
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Earnings per share
attributable to Weyerhaeuser common shareholders, basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$ 0.44
|
|
$ 0.35
|
|
$ 0.23
|
|
$ 1.09
|
|
$ 0.83
|
Discontinued
operations
|
0.04
|
|
1.82
|
|
0.04
|
|
1.76
|
|
0.06
|
Net earnings per
share
|
$ 0.48
|
|
$ 2.17
|
|
$ 0.27
|
|
$ 2.85
|
|
$ 0.89
|
Earnings per share
attributable to Weyerhaeuser common shareholders,
diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$ 0.43
|
|
$ 0.35
|
|
$ 0.23
|
|
$ 1.08
|
|
$ 0.82
|
Discontinued
operations
|
0.04
|
|
1.80
|
|
0.04
|
|
1.75
|
|
0.06
|
Net earnings per
share
|
$ 0.47
|
|
$ 2.15
|
|
$ 0.27
|
|
$ 2.83
|
|
$ 0.88
|
Dividends paid per
common share
|
$ 0.22
|
|
$ 0.29
|
|
$ 0.22
|
|
$ 0.73
|
|
$ 0.59
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
Basic
|
586,061
|
|
531,913
|
|
582,828
|
|
567,436
|
|
560,505
|
Diluted
|
589,766
|
|
536,012
|
|
587,179
|
|
571,503
|
|
565,383
|
Common shares
outstanding at end of period (in thousands)
|
586,698
|
|
525,485
|
|
582,578
|
|
525,485
|
|
582,578
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Net
earnings
|
$ 291
|
|
$ 1,164
|
|
$ 167
|
|
$ 1,649
|
|
$ 509
|
Earnings from
discontinued operations, net of income taxes
|
(22)
|
|
(966)
|
|
(21)
|
|
(998)
|
|
(36)
|
Interest income and
other
|
(11)
|
|
(7)
|
|
(21)
|
|
(27)
|
|
(39)
|
Interest expense, net
of capitalized interest
|
83
|
|
88
|
|
94
|
|
254
|
|
256
|
Income
taxes
|
59
|
|
39
|
|
24
|
|
148
|
|
99
|
Operating
income
|
400
|
|
318
|
|
243
|
|
1,026
|
|
789
|
Depreciation,
depletion and amortization
|
122
|
|
123
|
|
116
|
|
368
|
|
333
|
Non-operating pension
and postretirement costs (credits)
|
(11)
|
|
(12)
|
|
11
|
|
(33)
|
|
31
|
Special
items
|
(39)
|
|
(15)
|
|
—
|
|
(103)
|
|
—
|
Adjusted
EBITDA*
|
$ 472
|
|
$ 414
|
|
$ 370
|
|
$ 1,258
|
|
$ 1,153
|
* Non-GAAP measure -
see page 8 for definition.
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
in
millions
|
June 30,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 845
|
|
$
1,620
|
|
$
830
|
Receivables, less
allowances
|
590
|
|
583
|
|
518
|
Receivables for
taxes
|
37
|
|
23
|
|
101
|
Inventories
|
596
|
|
578
|
|
542
|
Prepaid
expenses
|
106
|
|
97
|
|
117
|
Deferred tax
assets
|
128
|
|
111
|
|
130
|
Current assets of
discontinued operations
|
988
|
|
—
|
|
88
|
Total current
assets
|
3,290
|
|
3,012
|
|
2,326
|
Property and
equipment, net
|
2,599
|
|
2,534
|
|
2,689
|
Construction in
progress
|
157
|
|
215
|
|
112
|
Timber and
timberlands at cost, less depletion charged to disposals
|
6,571
|
|
6,546
|
|
6,580
|
Investments in and
advances to equity affiliates
|
188
|
|
186
|
|
190
|
Goodwill
|
40
|
|
40
|
|
42
|
Deferred tax
assets
|
—
|
|
—
|
|
5
|
Other
assets
|
419
|
|
292
|
|
324
|
Restricted financial
investments held by variable interest entities
|
615
|
|
615
|
|
615
|
Noncurrent assets of
discontinued operations
|
1,827
|
|
—
|
|
1,694
|
Total
assets
|
$ 15,706
|
|
$
13,440
|
|
$
14,577
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Notes
payable
|
$
—
|
|
$
—
|
|
$
2
|
Accounts
payable
|
335
|
|
351
|
|
343
|
Accrued
liabilities
|
597
|
|
606
|
|
629
|
Current liabilities
of discontinued operations
|
137
|
|
—
|
|
154
|
Total current
liabilities
|
1,069
|
|
957
|
|
1,128
|
Long-term
debt
|
4,891
|
|
4,891
|
|
4,891
|
Long-term debt
(nonrecourse to the company) held by variable interest
entities
|
511
|
|
511
|
|
511
|
Deferred income
taxes
|
410
|
|
338
|
|
285
|
Deferred pension and
other postretirement benefits
|
422
|
|
569
|
|
516
|
Other
liabilities
|
334
|
|
318
|
|
382
|
Noncurrent
liabilities of discontinued operations
|
926
|
|
—
|
|
32
|
Total
liabilities
|
8,563
|
|
7,584
|
|
7,745
|
Equity:
|
|
|
|
|
|
Total Weyerhaeuser
shareholders' interest
|
7,092
|
|
5,856
|
|
6,795
|
Noncontrolling
interests
|
2
|
|
—
|
|
3
|
Noncontrolling
interests in discontinued operations
|
49
|
|
—
|
|
34
|
Total
equity
|
7,143
|
|
5,856
|
|
6,832
|
Total liabilities
and equity
|
$ 15,706
|
|
$
13,440
|
|
$
14,577
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Cash flows from
operations:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$ 291
|
|
$
1,164
|
|
$
167
|
|
$
1,649
|
|
$
509
|
Noncash charges
(credits) to income:
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
126
|
|
123
|
|
120
|
|
375
|
|
343
|
Deferred income
taxes, net
|
89
|
|
45
|
|
24
|
|
170
|
|
73
|
Pension and other
postretirement benefits
|
(44)
|
|
(13)
|
|
27
|
|
(104)
|
|
79
|
Share-based
compensation expense
|
11
|
|
9
|
|
12
|
|
29
|
|
34
|
Charges for
impairment of assets
|
1
|
|
—
|
|
2
|
|
1
|
|
5
|
Net gains on
dispositions of assets and operations
|
(21)
|
|
(1,002)
|
|
(21)
|
|
(1,048)
|
|
(42)
|
Foreign exchange
transaction (gains) losses
|
(12)
|
|
13
|
|
(2)
|
|
15
|
|
6
|
Change in:
|
|
|
|
|
|
|
|
|
|
Receivables less
allowances
|
(47)
|
|
20
|
|
8
|
|
(28)
|
|
(112)
|
Receivable for
taxes
|
(3)
|
|
13
|
|
12
|
|
77
|
|
64
|
Inventories
|
34
|
|
8
|
|
36
|
|
(46)
|
|
—
|
Real estate and
land
|
(35)
|
|
(26)
|
|
(58)
|
|
(133)
|
|
(179)
|
Prepaid
expenses
|
(3)
|
|
6
|
|
(2)
|
|
6
|
|
(16)
|
Accounts payable and
accrued liabilities
|
(17)
|
|
21
|
|
77
|
|
(76)
|
|
45
|
Deposits on land
positions and other assets
|
(4)
|
|
7
|
|
(1)
|
|
15
|
|
(11)
|
Pension and
postretirement contributions
|
(30)
|
|
(22)
|
|
(35)
|
|
(85)
|
|
(104)
|
Other
|
(14)
|
|
(13)
|
|
(23)
|
|
(33)
|
|
(38)
|
Net cash from
operations
|
322
|
|
353
|
|
343
|
|
784
|
|
656
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Property and
equipment
|
(83)
|
|
(105)
|
|
(69)
|
|
(239)
|
|
(151)
|
Timberlands
reforestation
|
(11)
|
|
(7)
|
|
(7)
|
|
(32)
|
|
(28)
|
Acquisition of
Longview Timber LLC, net of cash acquired
|
—
|
|
—
|
|
(1,581)
|
|
—
|
|
(1,581)
|
Net proceeds from
Real Estate Divestiture, net of cash divested
|
—
|
|
707
|
|
—
|
|
707
|
|
—
|
Proceeds from sale of
assets
|
1
|
|
4
|
|
1
|
|
24
|
|
15
|
Net proceeds of
investments held by special purpose entities
|
—
|
|
—
|
|
—
|
|
—
|
|
22
|
Other
|
—
|
|
25
|
|
9
|
|
25
|
|
5
|
Cash from
investing activities
|
(93)
|
|
624
|
|
(1,647)
|
|
485
|
|
(1,718)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Net proceeds from
issuance of common shares
|
—
|
|
—
|
|
116
|
|
—
|
|
897
|
Net proceeds from
issuance of preference shares
|
—
|
|
—
|
|
—
|
|
—
|
|
669
|
Net proceeds from
issuance of debt
|
—
|
|
—
|
|
494
|
|
—
|
|
494
|
Net proceeds from
issuance of Weyerhaeuser Real Estate Company (WRECO)
debt
|
887
|
|
—
|
|
—
|
|
887
|
|
—
|
Deposit of WRECO debt
proceeds into escrow
|
(887)
|
|
—
|
|
—
|
|
(887)
|
|
—
|
Cash dividends on
common shares
|
(128)
|
|
(154)
|
|
(128)
|
|
(411)
|
|
(330)
|
Cash dividends on
preference shares
|
(11)
|
|
(11)
|
|
—
|
|
(22)
|
|
—
|
Change in book
overdrafts
|
—
|
|
(11)
|
|
1
|
|
(17)
|
|
8
|
Payments on
debt
|
—
|
|
—
|
|
(163)
|
|
—
|
|
(340)
|
Exercises of stock
options
|
39
|
|
30
|
|
9
|
|
84
|
|
141
|
Repurchase of common
stock
|
—
|
|
(123)
|
|
—
|
|
(123)
|
|
—
|
Other
|
(1)
|
|
4
|
|
10
|
|
5
|
|
22
|
Cash from
financing activities
|
(101)
|
|
(265)
|
|
339
|
|
(484)
|
|
1,561
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
128
|
|
712
|
|
(965)
|
|
785
|
|
499
|
Cash and cash
equivalents at beginning of period
|
780
|
|
908
|
|
2,362
|
|
835
|
|
898
|
Cash and cash
equivalents at end of period
|
$ 908
|
|
$
1,620
|
|
$
1,397
|
|
$
1,620
|
|
$
1,397
|
Cash paid (received)
during the year for:
|
|
|
|
|
|
|
|
|
|
Interest, net of
amount capitalized
|
$ 52
|
|
$
100
|
|
$
109
|
|
$
253
|
|
$
275
|
Income
taxes
|
$ 5
|
|
$
5
|
|
$
2
|
|
$
(40)
|
|
$
(4)
|
Noncash investing and
financing activity:
|
|
|
|
|
|
|
|
|
|
Acquisition of
Longview Timber LLC, debt assumed
|
$ —
|
|
$
—
|
|
$
1,070
|
|
$
—
|
|
$
1,070
|
Common shares
tendered in WRECO divestiture
|
$ —
|
|
$
1,954
|
|
$
—
|
|
$
1,954
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
Total Company
Statistics
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
Special Items
Included in Net Earnings
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Net earnings
attributable to Weyerhaeuser common shareholders
|
$ 280
|
|
$
1,153
|
|
$
157
|
|
$
1,616
|
|
$
497
|
Restructuring,
impairments and other charges
|
5
|
|
6
|
|
—
|
|
24
|
|
—
|
Gain on sale of
non-strategic asset
|
—
|
|
—
|
|
—
|
|
(14)
|
|
—
|
Gain on
postretirement plan amendment
|
(29)
|
|
(15)
|
|
—
|
|
(73)
|
|
—
|
Net earnings
attributable to Weyerhaeuser common shareholders before special
items
|
256
|
|
1,144
|
|
157
|
|
1,553
|
|
497
|
Earnings from
discontinued operations, net of income taxes
|
(22)
|
|
(966)
|
|
(21)
|
|
(998)
|
|
(36)
|
Net earnings from
continuing operations attributable to Weyerhaeuser common
shareholders before special items
|
$ 234
|
|
$
178
|
|
$
136
|
|
$
555
|
|
$
461
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Net earnings per
diluted share attributable to Weyerhaeuser common
shareholders
|
$ 0.47
|
|
$
2.15
|
|
$
0.27
|
|
$
2.83
|
|
$
0.88
|
Restructuring,
impairments and other charges
|
0.01
|
|
0.01
|
|
—
|
|
0.04
|
|
—
|
Gain on sale of
non-strategic asset
|
—
|
|
—
|
|
—
|
|
(0.02)
|
|
—
|
Gain on
postretirement plan amendment
|
(0.04)
|
|
(0.03)
|
|
—
|
|
(0.13)
|
|
—
|
Net earnings per
diluted share attributable to Weyerhaeuser common shareholders
before special items
|
0.44
|
|
2.13
|
|
0.27
|
|
2.72
|
|
0.88
|
Earnings from
discontinued operations, net of income taxes
|
(0.04)
|
|
(1.80)
|
|
(0.04)
|
|
(1.75)
|
|
(0.06)
|
Net earnings from
continuing operations per diluted share attributable to
Weyerhaeuser common shareholders before special
items
|
$ 0.40
|
|
$
0.33
|
|
$
0.23
|
|
$
0.97
|
|
$
0.82
|
|
Selected Total
Company Items
|
|
in
millions
|
Q2
|
|
Q3
|
|
Year-to-date
|
|
June 30,
2014
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Depreciation,
depletion and amortization:
|
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
$ 117
|
|
$
117
|
|
$
110
|
|
$
351
|
|
$
315
|
Selling, general and
administrative expenses
|
5
|
|
6
|
|
6
|
|
17
|
|
18
|
Total depreciation,
depletion and amortization
|
$ 122
|
|
$
123
|
|
$
116
|
|
$
368
|
|
$
333
|
|
|
|
|
|
|
|
|
|
|
Pension and
postretirement costs:
|
|
|
|
|
|
|
|
|
|
Pension and
postretirement costs allocated to business segments
|
$ 12
|
|
$
11
|
|
$
15
|
|
$
33
|
|
$
42
|
Pension and
postretirement costs (credits) not allocated
|
(11)
|
|
(12)
|
|
11
|
|
(33)
|
|
31
|
Total company pension
and postretirement costs
|
$ 1
|
|
$
(1)
|
|
$
26
|
|
$
—
|
|
$
73
|
|
|
|
|
|
|
|
|
|
|
Total decrease
(increase) in working capital(1)
|
$ 49
|
|
$
106
|
|
$
138
|
|
$
(15)
|
|
$
(35)
|
Cash spent for
capital expenditures
|
$ (92)
|
|
$
(112)
|
|
$
(71)
|
|
$
(267)
|
|
$
(170)
|
(1)Working
capital does not include cash balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
Timberlands
Segment
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Sales to unaffiliated
customers
|
$ 397
|
|
$ 364
|
|
$ 353
|
|
$ 1,138
|
|
$ 979
|
Intersegment
sales
|
186
|
|
218
|
|
194
|
|
642
|
|
584
|
Total net
sales
|
583
|
|
582
|
|
547
|
|
1,780
|
|
1,563
|
Cost of products
sold
|
399
|
|
432
|
|
407
|
|
1,262
|
|
1,167
|
Gross
margin
|
184
|
|
150
|
|
140
|
|
518
|
|
396
|
Selling
expenses
|
2
|
|
2
|
|
3
|
|
6
|
|
8
|
General and
administrative expenses
|
23
|
|
23
|
|
27
|
|
72
|
|
77
|
Research and
development expenses
|
3
|
|
4
|
|
4
|
|
11
|
|
13
|
Charges for
restructuring, closures and impairments
|
—
|
|
1
|
|
—
|
|
1
|
|
2
|
Other operating
income, net
|
(14)
|
|
(16)
|
|
(11)
|
|
(42)
|
|
(37)
|
Operating
income
|
170
|
|
136
|
|
117
|
|
470
|
|
333
|
Interest income and
other
|
—
|
|
—
|
|
1
|
|
—
|
|
3
|
Net contribution
to earnings
|
$ 170
|
|
$ 136
|
|
$ 118
|
|
$ 470
|
|
$ 336
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Operating
income
|
$ 170
|
|
$ 136
|
|
$ 117
|
|
$ 470
|
|
$ 333
|
Depreciation,
depletion and amortization
|
51
|
|
51
|
|
45
|
|
154
|
|
115
|
Adjusted
EBITDA*
|
$ 221
|
|
$ 187
|
|
$ 162
|
|
$ 624
|
|
$ 448
|
* Non-GAAP measure -
see page 8 for definition.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Total decrease
(increase) in working capital(1)
|
$ (15)
|
|
$ 25
|
|
$ 31
|
|
$ (19)
|
|
$ —
|
Cash spent for
capital expenditures
|
$ (18)
|
|
$ (19)
|
|
$ (16)
|
|
$ (56)
|
|
$ (52)
|
(1)Working
capital does not include cash balances.
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Third Party
Net Sales
(millions)
|
Logs:
|
|
|
|
|
|
|
|
|
|
West
|
$ 261
|
|
$ 227
|
|
$ 213
|
|
$ 745
|
|
$ 598
|
South
|
60
|
|
69
|
|
66
|
|
191
|
|
192
|
Canada
|
1
|
|
5
|
|
6
|
|
12
|
|
15
|
Total logs
|
322
|
|
301
|
|
285
|
|
948
|
|
805
|
Chip sales
|
2
|
|
4
|
|
2
|
|
9
|
|
7
|
Timberlands
exchanges
|
28
|
|
17
|
|
28
|
|
49
|
|
44
|
Higher and better use
land sales
|
7
|
|
4
|
|
2
|
|
14
|
|
10
|
Minerals, oil and
gas
|
8
|
|
10
|
|
9
|
|
25
|
|
26
|
Products from
international operations
|
26
|
|
22
|
|
24
|
|
72
|
|
68
|
Other
products
|
4
|
|
6
|
|
3
|
|
21
|
|
19
|
Total
|
$ 397
|
|
$ 364
|
|
$ 353
|
|
$ 1,138
|
|
$ 979
|
Logs
Third Party Sales
Realizations
(per cubic meter)
|
West
|
$ 109.13
|
|
$ 102.23
|
|
$ 104.73
|
|
$ 108.64
|
|
$ 108.33
|
South
|
$ 45.16
|
|
$ 45.30
|
|
$ 43.32
|
|
$ 45.12
|
|
$ 43.42
|
Canada
|
$ 38.04
|
|
$ 37.75
|
|
$ 38.77
|
|
$ 36.65
|
|
$ 37.38
|
International
|
$ 16.27
|
|
$ 19.95
|
|
$ 25.07
|
|
$ 17.88
|
|
$ 24.75
|
Logs
Third Party Sales
Volumes
(cubic meters, thousands)
|
West
|
2,390
|
|
2,223
|
|
2,037
|
|
6,859
|
|
5,523
|
South
|
1,339
|
|
1,500
|
|
1,514
|
|
4,224
|
|
4,420
|
Canada
|
30
|
|
152
|
|
141
|
|
338
|
|
383
|
International
|
139
|
|
170
|
|
100
|
|
456
|
|
245
|
Total
|
3,898
|
|
4,045
|
|
3,792
|
|
11,877
|
|
10,571
|
Logs
Fee Harvest Volumes
(cubic meters, thousands)
|
West
|
2,888
|
|
2,656
|
|
2,305
|
|
8,419
|
|
6,221
|
South
|
2,715
|
|
2,950
|
|
2,928
|
|
8,531
|
|
8,589
|
International
|
249
|
|
232
|
|
211
|
|
730
|
|
575
|
Total
|
5,852
|
|
5,838
|
|
5,444
|
|
17,680
|
|
15,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
Wood Products
Segment
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Sales to unaffiliated
customers
|
$ 1,077
|
|
$ 1,048
|
|
$ 1,030
|
|
$ 3,023
|
|
$ 3,083
|
Intersegment
sales
|
21
|
|
20
|
|
19
|
|
60
|
|
55
|
Total net
sales
|
1,098
|
|
1,068
|
|
1,049
|
|
3,083
|
|
3,138
|
Cost of products
sold
|
939
|
|
910
|
|
905
|
|
2,640
|
|
2,559
|
Gross
margin
|
159
|
|
158
|
|
144
|
|
443
|
|
579
|
Selling
expenses
|
23
|
|
22
|
|
24
|
|
70
|
|
74
|
General and
administrative expenses
|
30
|
|
31
|
|
37
|
|
98
|
|
109
|
Research and
development expenses
|
2
|
|
—
|
|
2
|
|
3
|
|
4
|
Charges for
restructuring, closures and impairments
|
2
|
|
—
|
|
1
|
|
2
|
|
2
|
Other operating costs
(income), net
|
—
|
|
—
|
|
1
|
|
(1)
|
|
(3)
|
Operating
income
|
102
|
|
105
|
|
79
|
|
271
|
|
393
|
Interest income and
other
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Net contribution
to earnings
|
$
102
|
|
$
105
|
|
$
79
|
|
$
271
|
|
$
393
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Operating
income
|
$
102
|
|
$
105
|
|
$
79
|
|
$
271
|
|
$
393
|
Depreciation,
depletion and amortization
|
30
|
|
30
|
|
31
|
|
89
|
|
93
|
Adjusted
EBITDA*
|
$
132
|
|
$
135
|
|
$
110
|
|
$
360
|
|
$
486
|
* Non-GAAP measure -
see page 8 for definition.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Total decrease
(increase) in working capital(1)
|
$
29
|
|
$
41
|
|
$
74
|
|
$ (67)
|
|
$ (45)
|
Cash spent for
capital expenditures
|
$ (38)
|
|
$ (56)
|
|
$ (26)
|
|
$ (112)
|
|
$ (52)
|
(1)Working
capital does not include cash balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
in millions, except
for third-party sales realizations
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Structural Lumber
(board feet)
|
Third party net
sales
|
$ 515
|
|
$ 500
|
|
$ 480
|
|
$ 1,442
|
|
$ 1,433
|
Third party sales
realizations
|
$ 427
|
|
$ 431
|
|
$ 404
|
|
$ 430
|
|
$ 425
|
Third party sales
volumes(1)
|
1,206
|
|
1,162
|
|
1,189
|
|
3,357
|
|
3,370
|
Production
volumes
|
1,081
|
|
1,049
|
|
1,040
|
|
3,139
|
|
3,114
|
Outside purchase
volumes
|
82
|
|
91
|
|
92
|
|
251
|
|
271
|
Engineered Solid
Section
(cubic feet)
|
Third party net
sales
|
$ 114
|
|
$ 104
|
|
$
97
|
|
$ 308
|
|
$ 263
|
Third party sales
realizations
|
$ 1,976
|
|
$ 2,031
|
|
$ 1,963
|
|
$ 1,989
|
|
$ 1,913
|
Third party sales
volumes(1)
|
5.8
|
|
5.1
|
|
4.9
|
|
15.5
|
|
13.7
|
Production
volumes
|
5.7
|
|
5.2
|
|
4.6
|
|
15.8
|
|
13.8
|
Outside purchase
volumes
|
0.5
|
|
—
|
|
0.3
|
|
2.3
|
|
1.6
|
Engineered
I-joists
(lineal feet)
|
Third party net
sales
|
$
81
|
|
$
74
|
|
$
68
|
|
$ 214
|
|
$ 184
|
Third party sales
realizations
|
$ 1,470
|
|
$ 1,540
|
|
$ 1,428
|
|
$ 1,489
|
|
$ 1,364
|
Third party sales
volumes(1)
|
55
|
|
49
|
|
48
|
|
144
|
|
135
|
Production
volumes
|
55
|
|
50
|
|
44
|
|
149
|
|
130
|
Outside purchase
volumes
|
3
|
|
1
|
|
2
|
|
5
|
|
6
|
Oriented Strand
Board
(square feet 3/8')
|
Third party net
sales
|
$ 159
|
|
$ 157
|
|
$ 188
|
|
$ 464
|
|
$ 648
|
Third party sales
realizations
|
$ 226
|
|
$ 215
|
|
$ 246
|
|
$ 223
|
|
$ 309
|
Third party sales
volumes(1)
|
706
|
|
732
|
|
762
|
|
2,079
|
|
2,094
|
Production
volumes
|
681
|
|
717
|
|
725
|
|
2,055
|
|
2,050
|
Outside purchase
volumes
|
51
|
|
52
|
|
49
|
|
156
|
|
173
|
Softwood Plywood
(square feet 3/8')
|
Third party net
sales
|
$
35
|
|
$
42
|
|
$
38
|
|
$ 107
|
|
$ 115
|
Third party sales
realizations
|
$ 348
|
|
$ 381
|
|
$ 344
|
|
$ 355
|
|
$ 364
|
Third party sales
volumes(1)
|
102
|
|
110
|
|
108
|
|
302
|
|
315
|
Production
volumes
|
60
|
|
72
|
|
62
|
|
191
|
|
186
|
Outside purchase
volumes
|
36
|
|
31
|
|
40
|
|
100
|
|
115
|
(1)Volumes
include sales of internally produced products and products
purchased for resale primarily through our distribution
business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
Cellulose Fibers
Segment
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Total net
sales
|
$
490
|
|
$
503
|
|
$
474
|
|
$
1,454
|
|
$
1,424
|
Cost of products
sold
|
381
|
|
427
|
|
406
|
|
1,198
|
|
1,224
|
Gross
margin
|
109
|
|
76
|
|
68
|
|
256
|
|
200
|
Selling
expenses
|
4
|
|
3
|
|
5
|
|
11
|
|
14
|
General and
administrative expenses
|
20
|
|
18
|
|
21
|
|
58
|
|
62
|
Research and
development expenses
|
2
|
|
1
|
|
2
|
|
5
|
|
6
|
Other operating
income, net
|
(8)
|
|
(6)
|
|
(6)
|
|
(23)
|
|
(18)
|
Operating
income
|
91
|
|
60
|
|
46
|
|
205
|
|
136
|
Interest income and
other
|
—
|
|
(1)
|
|
1
|
|
(1)
|
|
(1)
|
Net contribution
to earnings
|
$
91
|
|
$
59
|
|
$
47
|
|
$
204
|
|
$
135
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Operating
income
|
$
91
|
|
$
60
|
|
$
46
|
|
$
205
|
|
$
136
|
Depreciation,
depletion and amortization
|
39
|
|
39
|
|
38
|
|
116
|
|
116
|
Adjusted
EBITDA*
|
$
130
|
|
$
99
|
|
$
84
|
|
$
321
|
|
$
252
|
* Non-GAAP measure -
see page 8 for definition.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Total decrease
(increase) in working capital(1)
|
$
(37)
|
|
$
39
|
|
$
19
|
|
$
33
|
|
$
24
|
Cash spent for
capital expenditures
|
$
(35)
|
|
$
(36)
|
|
$
(28)
|
|
$
(97)
|
|
$
(62)
|
(1)Working
capital does not include cash balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Pulp
(air-dry metric tons)
|
Third party net sales
(millions)
|
$
383
|
|
$
408
|
|
$
371
|
|
$
1,154
|
|
$
1,111
|
Third party sales
realizations
|
$
845
|
|
$
858
|
|
$
805
|
|
$
843
|
|
$
799
|
Third party sales
volumes (thousands)
|
454
|
|
474
|
|
460
|
|
1,368
|
|
1,389
|
Production volumes
(thousands)
|
467
|
|
465
|
|
457
|
|
1,391
|
|
1,365
|
Liquid
Packaging
Board
(tons)
|
Third party net sales
(millions)
|
$
87
|
|
$
80
|
|
$
83
|
|
$
247
|
|
$
254
|
Third party sales
realizations
|
$
1,165
|
|
$
1,185
|
|
$
1,082
|
|
$
1,157
|
|
$
1,080
|
Third party sales
volumes (thousands)
|
75
|
|
68
|
|
76
|
|
214
|
|
235
|
Production volumes
(thousands)
|
79
|
|
57
|
|
67
|
|
214
|
|
222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
|
|
|
Unallocated
Items
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
|
|
|
|
|
|
|
|
|
|
Unallocated items are
gains or charges not related to or allocated to an individual
operating segment. They include a portion of items such as:
share-based compensation, pension and postretirement costs, foreign
exchange transaction gains and losses associated with outstanding
borrowings and the elimination of intersegment profit in inventory
and the LIFO reserve.
|
|
|
|
|
|
|
|
|
|
|
Contribution to
Earnings
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Unallocated corporate
function expenses
|
$
(7)
|
|
$
(3)
|
|
$
(8)
|
|
$
(17)
|
|
$
(26)
|
Unallocated
share-based compensation
|
(6)
|
|
1
|
|
(1)
|
|
(2)
|
|
(3)
|
Unallocated pension
& postretirement credits (costs)
|
56
|
|
35
|
|
(11)
|
|
146
|
|
(31)
|
Foreign exchange
gains (losses)
|
13
|
|
(14)
|
|
2
|
|
(16)
|
|
(6)
|
Elimination of
intersegment profit in inventory and LIFO
|
(1)
|
|
12
|
|
25
|
|
(8)
|
|
9
|
Other
|
(18)
|
|
(14)
|
|
(5)
|
|
(23)
|
|
(16)
|
Operating income
(loss)
|
37
|
|
17
|
|
2
|
|
80
|
|
(73)
|
Interest income and
other
|
11
|
|
8
|
|
18
|
|
28
|
|
37
|
Net contribution
to earnings from continuing operations(1)
|
$
48
|
|
$
25
|
|
$
20
|
|
$
108
|
|
$
(36)
|
(1)We have
reclassified certain results from the prior periods to present the
results of operations discontinued in 2014 separately. Our
reclassifications had no effect on net earnings or Weyerhaeuser
shareholders' interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Operating income
(loss)
|
$
37
|
|
$
17
|
|
$
2
|
|
$
80
|
|
$
(73)
|
Depreciation,
depletion and amortization
|
2
|
|
3
|
|
2
|
|
9
|
|
9
|
Non-operating pension
and postretirement costs (credits)
|
(11)
|
|
(12)
|
|
11
|
|
(33)
|
|
31
|
Special
items
|
(39)
|
|
(15)
|
|
—
|
|
(103)
|
|
—
|
Adjusted
EBITDA*
|
$
(11)
|
|
$
(7)
|
|
$
15
|
|
$
(47)
|
|
$
(33)
|
* Non-GAAP measure -
see below for definition.
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Special Items Included in Net Contribution to Earnings
(Pre-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Gain on
postretirement plan amendment
|
$
45
|
|
$
23
|
|
$
—
|
|
$
113
|
|
$
—
|
Restructuring,
impairments and other charges
|
(6)
|
|
(8)
|
|
—
|
|
(32)
|
|
—
|
Gain on sale of
non-strategic asset
|
—
|
|
—
|
|
—
|
|
22
|
|
—
|
Total
|
$
39
|
|
$
15
|
|
$
—
|
|
$
103
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Selected Items
|
|
|
|
|
|
|
|
|
|
|
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Total decrease
(increase) in working capital(1)
|
$
72
|
|
$
1
|
|
$
14
|
|
$
38
|
|
$
(14)
|
Cash spent for
capital expenditures
|
$
(1)
|
|
$
(1)
|
|
$
(1)
|
|
$
(2)
|
|
$
(4)
|
(1)Working
capital does not include cash balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 from continuing operations adjusted for
depreciation, depletion, amortization, pension and postretirement
costs not allocated to business segments (primarily interest cost,
expected return on plan assets, amortization of actuarial loss and
amortization of prior service cost/credit), special items and
discontinued operations. Adjusted EBITDA should not be considered
in isolation from and is not intended to represent an alternative
to our GAAP results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
Discontinued
Operations
|
Q3.2014 Analyst
Package
|
Preliminary results,
subject to audit
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations relate to WRECO, which was combined with TRI Pointe
Homes, Inc. through a Reverse Morris Trust transaction on July 7,
2014. It was previously reported under the Real Estate segment and
Unallocated Items.
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q2.2014
|
|
Q3.2014
|
|
Q3.2013
|
|
YTD.2014
|
|
YTD.2013
|
Total net
sales
|
$
317
|
|
$
8
|
|
$
324
|
|
$
573
|
|
$
787
|
Income (loss) from
operations
|
$
27
|
|
$
(1)
|
|
$
33
|
|
$
42
|
|
$
56
|
Income
taxes
|
(5)
|
|
(5)
|
|
(12)
|
|
(16)
|
|
(20)
|
Net earnings
(loss) from operations
|
22
|
|
(6)
|
|
21
|
|
26
|
|
36
|
Net gain on
divestiture
|
—
|
|
972
|
|
—
|
|
972
|
|
—
|
Net earnings from
discontinued operations
|
$
22
|
|
$
966
|
|
$
21
|
|
$
998
|
|
$
36
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Weyerhaeuser Company