SEATTLE, July 28, 2017
/PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported
second quarter earnings from continuing operations of $24 million, or 3
cents per diluted share, on net sales of $1.8 billion. This compares with earnings from
continuing operations of $130
million, or 16 cents per
diluted share, on net sales of $1.7
billion for the same period last year. Adjusted EBITDA for
the second quarter was $506 million
compared to $413 million for the
second quarter of last year.
Excluding after-tax special items of $188
million, which includes $147
million non-cash impairment for our Uruguay operations and $31 million for product remediation, the company
reported net earnings of $212
million, or 28 cents per
diluted share for the second quarter. This compares with net
earnings from continuing operations before special items of
$130 million for the same period last
year and $167 million for first
quarter of 2017.
"Each of our businesses delivered strong second quarter
operating results, leveraging ongoing operational excellence
initiatives to capitalize on improving markets," said Doyle R. Simons, president and CEO. "In the
quarter, we also announced the pending sale of our Uruguay operations and completed the asset
value optimization process for our Western timberlands. Looking
forward, we are extremely well positioned to continue to capitalize
on the improving housing market, and remain relentlessly focused on
driving value for our shareholders through operational improvements
and disciplined capital allocation."
WEYERHAEUSER FINANCIAL HIGHLIGHTS
During 2016, Weyerhaeuser sold its Cellulose Fibers businesses.
Results for the Cellulose Fibers segment are presented as
discontinued operations.
WEYERHAEUSER
FINANCIAL HIGHLIGHTS
|
2017
|
|
2017
|
|
2016
|
|
(millions, except
per share data)
|
1Q
|
|
2Q
|
|
2Q
|
|
Net sales
|
$1,693
|
|
$1,808
|
|
$1,655
|
|
Earnings from
continuing operations
|
$157
|
|
$24
|
|
$130
|
|
Net earnings
attributable to Weyerhaeuser common shareholders
|
$157
|
|
$24
|
|
$157
|
|
Earnings per diluted
share from continuing operations
|
$0.21
|
|
$0.03
|
|
$0.16
|
|
Net earnings per
diluted share
|
$0.21
|
|
$0.03
|
|
$0.21
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, diluted
|
755
|
|
756
|
|
748
|
|
Net earnings from
continuing operations attributable to Weyerhaeuser common
shareholders before special items(1)
|
$167
|
|
$212
|
|
$130
|
|
Net earnings from
continuing operations per diluted share attributable to
Weyerhaeuser common shareholders before special items
|
$0.22
|
|
$0.28
|
|
$0.17
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(2)
|
$454
|
|
$506
|
|
$413
|
|
|
|
|
|
|
|
|
(1) First quarter
2017 after-tax special items include charges of $10 million for
Plum Creek merger-related costs. Second quarter 2017 after-tax
special items include a $147 million non-cash impairment charge for
the Uruguay business, $31 million for product remediation and $8
million for countervailing and antidumping duties on Canadian
softwood lumber the company sold into the United States and $2
million for Plum Creek merger-related costs. Second quarter 2016
after-tax special items include $4 million of Plum Creek merger
related costs and $7 million of legal expense.
|
|
(2) 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, basis of real estate sold,
unallocated pension service costs and special items. Adjusted
EBITDA excludes results from joint ventures. Adjusted EBITDA should
not be considered in isolation from and is not intended to
represent an alternative to our GAAP results. A reconciliation of
Adjusted EBITDA to GAAP earnings is included within this
release.
|
|
|
|
|
|
|
|
|
|
|
TIMBERLANDS
FINANCIAL
HIGHLIGHTS (millions)
|
1Q
2017
|
|
2Q
2017
|
|
Change
|
Net sales
|
$688
|
|
$632
|
|
($56)
|
Contribution to
pre-tax earnings
|
$148
|
|
($12)
|
|
($160)
|
Pre-tax charge for
special items
|
$0
|
|
$147
|
|
$147
|
Contribution to
pre-tax earnings before special items
|
$148
|
|
$135
|
|
($13)
|
Adjusted
EBITDA
|
$242
|
|
$222
|
|
($20)
|
2Q 2017 Performance - In the West, modestly higher
average sales realizations for domestic and export logs were more
than offset by seasonally higher road spending and forestry costs.
In the South, average log sales realizations and volumes were
comparable to first quarter. Second quarter results include a
$147 million noncash impairment
charge related to the pending sale of our Uruguay operations.
3Q 2017 Outlook - Weyerhaeuser expects third
quarter earnings before special items and Adjusted EBITDA will be
slightly lower than second quarter. In the West, the company
anticipates slightly higher log sales realizations, lower fee
harvest volumes, and increased road spending compared to the second
quarter. In the South, the company anticipates seasonally higher
fee harvest volumes, comparable log sales realizations and
increased forestry and silviculture expense.
REAL ESTATE, ENERGY & NATURAL RESOURCES
FINANCIAL
HIGHLIGHTS (millions)
|
1Q
2017
|
|
2Q
2017
|
|
Change
|
Net sales
|
$53
|
|
$46
|
|
($7)
|
Contribution to
pre-tax earnings
|
$26
|
|
$23
|
|
($3)
|
Adjusted
EBITDA
|
$43
|
|
$37
|
|
($6)
|
2Q 2017 Performance - Earnings and Adjusted EBITDA
decreased as a result of lower Real Estate sales compared to the
first quarter. Energy & Natural Resources royalties increased
from first quarter levels.
3Q 2017 Outlook - Weyerhaeuser expects earnings and
Adjusted EBITDA will be significantly higher than the second
quarter. The company anticipates Real Estate sales in the third
quarter will be about double second quarter levels. We continue to
expect Adjusted EBITDA for the Real Estate, Energy & Natural
Resources segment will exceed $250
million for full year 2017.
WOOD PRODUCTS
FINANCIAL
HIGHLIGHTS (millions)
|
1Q
2017
|
|
2Q
2017
|
|
Change
|
Net sales
|
$1,154
|
|
$1,293
|
|
$139
|
Contribution to
pre-tax earnings
|
$172
|
|
$177
|
|
$5
|
Pre-tax charge for
special items
|
$0
|
|
$61
|
|
$61
|
Contribution to
pre-tax earnings before special items
|
$172
|
|
$238
|
|
$66
|
Adjusted
EBITDA
|
$207
|
|
$274
|
|
$67
|
2Q 2017 Performance - Average sales realizations
increased across all product lines in the second quarter. Sales
volumes were higher for lumber and engineered wood products while
oriented strand board sales volumes were comparable to the first
quarter. Second quarter results include pre-tax special items of
$61 million, which are comprised of a
$50 million charge for product
remediation and $11 million of
softwood lumber countervailing and antidumping duties.
3Q 2017 Outlook - Weyerhaeuser anticipates third quarter
earnings before special items and Adjusted EBITDA will be
comparable to the second quarter. The company expects average sales
realizations and sales volumes for lumber will be comparable to the
second quarter. For oriented strand board, the company anticipates
slightly higher average sales realizations and modestly lower sales
volumes.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the
world's largest private owners of timberlands, began operations in
1900. We own or control more than 13 million acres of timberlands,
primarily 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. Our company is a real
estate investment trust. In February
2016, we merged with Plum Creek Timber Company, Inc. In
2016, we generated $6.4 billion in
net sales and employed approximately 10,400 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
July 28, 2017, to discuss second quarter results.
To access the live webcast and presentation online, go to the
Investor Relations section on https://www.weyerhaeuser.com on
July 28, 2017.
To join the conference call from within North America, dial
877-296-9413 (access code: 43729080) at least 15 minutes prior to
the call. Those calling from outside North America should dial
706-679-2458 (access code: 43729080). Replays will be available for
two weeks at 855-859-2056 (access code: 43729080) from
within North America and at 404-537-3406 (access code:
43729080) 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, Section 27A of
the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, including with respect to the following for
the third quarter of 2017: earnings and Adjusted EBITDA for each of
our business segments; log sale realizations and fee harvest
volumes; sales volumes across Wood Products product lines, expected
sales realizations and volumes for lumber and oriented strand
board; and various logging, forestry and silviculture costs; and
real estate sales volumes. These statements generally are
identified by words such as "believe," "project," "expect,"
"anticipate," "estimate," "intend," "strategy," "future,"
"opportunity," "plan," "may," "should," "will," "would," and
expressions such as "will be," "will continue," "will likely
result," and similar words and expressions. These statements are
based on our current expectations and assumptions and are not
guarantees of future 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, housing starts, availability of
financing for home mortgages and strength of the U.S. dollar;
- market demand for our 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 and restrictions on
international trade;
- performance of our manufacturing operations, including
maintenance requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign
producers;
- raw material availability and prices;
- the effect of weather;
- the risk of loss from fires, floods, windstorms, hurricanes,
pest infestation and other natural disasters;
- energy prices;
- the successful execution of our internal plans and strategic
initiatives, including restructuring and cost reduction
initiatives;
- 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;
- 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 retirements and changes in the market
price of our common stock on charges for share-based
compensation;
- changes in accounting principles; and
- other factors described under "Risk Factors" in our 2016 Annual
Report on Form 10-K as well as those set forth from time to time in
our other public statements and other reports and filings with the
Securities and Exchange Commission.
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.
For more information contact:
|
|
Analysts -
Krista Kochivar (206) 539-3907
|
|
|
Media -
Anthony Chavez (206) 539-4406
|
RECONCILIATION OF
ADJUSTED EBITDA TO NET EARNINGS We reconcile Adjusted EBITDA
to net earnings for the consolidated company and to operating
income for the business segments, as those are the most directly
comparable U.S. GAAP measures for each.
|
|
The table below
reconciles Adjusted EBITDA for the quarter ended March 31,
2017:
|
|
DOLLAR AMOUNTS IN
MILLIONS
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
$
|
157
|
|
Earnings from
discontinued operations, net of income taxes
|
|
|
|
|
|
|
|
|
—
|
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
99
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
24
|
|
Net contribution
to earnings
|
$
|
148
|
|
|
$
|
26
|
|
|
$
|
172
|
|
|
$
|
(66)
|
|
|
$
|
280
|
|
Equity (earnings)
loss from joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-operating pension
and other postretirement benefit (costs) credits
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
Interest income and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
Operating income
(loss)
|
148
|
|
|
26
|
|
|
172
|
|
|
(53)
|
|
|
293
|
|
Depreciation,
depletion and amortization
|
94
|
|
|
3
|
|
|
35
|
|
|
1
|
|
|
133
|
|
Basis of real estate
sold
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
Unallocated pension
service costs
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Special
items(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
Adjusted
EBITDA
|
$
|
242
|
|
|
$
|
43
|
|
|
$
|
207
|
|
|
$
|
(38)
|
|
|
$
|
454
|
|
|
(1) Pre-tax special
items include: $12 million of Plum Creek merger-related
costs.
|
|
|
The table below
reconciles Adjusted EBITDA for the quarter ended June 30, 2017
:
|
|
DOLLAR AMOUNTS IN
MILLIONS
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
$
|
24
|
|
Earnings from
discontinued operations, net of income taxes
|
|
|
|
|
|
|
|
|
—
|
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
100
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
34
|
|
Net contribution
to earnings
|
$
|
(12)
|
|
|
$
|
23
|
|
|
$
|
177
|
|
|
$
|
(30)
|
|
|
$
|
158
|
|
Equity earnings from
joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-operating pension
and other postretirement benefit (costs) credits
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Interest income and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
Operating income
(loss)
|
(12)
|
|
|
23
|
|
|
177
|
|
|
(31)
|
|
|
157
|
|
Depreciation,
depletion and amortization
|
87
|
|
|
4
|
|
|
36
|
|
|
2
|
|
|
129
|
|
Basis of real estate
sold
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Unallocated pension
service costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Special
items(1)
|
147
|
|
|
—
|
|
|
61
|
|
|
2
|
|
|
210
|
|
Adjusted
EBITDA
|
$
|
222
|
|
|
$
|
37
|
|
|
$
|
274
|
|
|
$
|
(27)
|
|
|
$
|
506
|
|
|
(1) Pre-tax special
items include: $147 million of impairment charges related to our
Uruguayan operations; $50 million for product remediation; $11
million of countervailing and antidumping duties; and $2 million of
Plum Creek merger-related costs.
|
|
|
The table below
reconciles Adjusted EBITDA for the quarter ended June 30,
2016:
|
|
DOLLAR AMOUNTS IN
MILLIONS
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
$
|
168
|
|
Earnings from
discontinued operations, net of income taxes
|
|
|
|
|
|
|
|
|
(38)
|
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
114
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
31
|
|
Net contribution
to earnings
|
$
|
125
|
|
|
$
|
12
|
|
|
$
|
156
|
|
|
$
|
(18)
|
|
|
$
|
275
|
|
Equity earnings from
joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
(7)
|
|
Non-operating pension
and other postretirement benefit (costs) credits
|
—
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
(10)
|
|
Interest income and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
|
(10)
|
|
Operating income
(loss)
|
125
|
|
|
12
|
|
|
156
|
|
|
(45)
|
|
|
248
|
|
Depreciation,
depletion and amortization
|
95
|
|
|
3
|
|
|
33
|
|
|
2
|
|
|
133
|
|
Basis of real estate
sold
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
Unallocated pension
service costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Special
items(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
Adjusted
EBITDA
|
$
|
220
|
|
|
$
|
28
|
|
|
$
|
189
|
|
|
$
|
(24)
|
|
|
$
|
413
|
|
(1) Pre-tax
special items include: $8 million of Plum Creek merger-related
costs and $11 million of legal expense.
|
Weyerhaeuser
Company
|
|
|
|
Exhibit
99.2
|
Q2.2017 Analyst
Package
|
|
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations(1)(2)
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Net
sales
|
$
|
1,693
|
|
|
$
|
1,808
|
|
|
$
|
1,655
|
|
|
$
|
3,501
|
|
|
$
|
3,060
|
|
Cost of products
sold
|
1,272
|
|
|
1,336
|
|
|
1,271
|
|
|
2,608
|
|
|
2,374
|
|
Gross
margin
|
421
|
|
|
472
|
|
|
384
|
|
|
893
|
|
|
686
|
|
Selling
expenses
|
22
|
|
|
22
|
|
|
22
|
|
|
44
|
|
|
45
|
|
General and
administrative expenses
|
87
|
|
|
76
|
|
|
94
|
|
|
163
|
|
|
173
|
|
Research and
development expenses
|
4
|
|
|
4
|
|
|
4
|
|
|
8
|
|
|
9
|
|
Charges for
integration and restructuring, closures and asset
impairments
|
13
|
|
|
151
|
|
|
14
|
|
|
164
|
|
|
125
|
|
Other operating costs
(income), net
|
2
|
|
|
62
|
|
|
2
|
|
|
64
|
|
|
(53)
|
|
Operating income
from continuing operations
|
293
|
|
|
157
|
|
|
248
|
|
|
450
|
|
|
387
|
|
Equity earnings from
joint ventures
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
12
|
|
Non-operating pension
and other postretirement benefit (costs) credits
|
(22)
|
|
|
(8)
|
|
|
10
|
|
|
(30)
|
|
|
24
|
|
Interest income and
other
|
9
|
|
|
9
|
|
|
10
|
|
|
18
|
|
|
19
|
|
Interest expense, net
of capitalized interest
|
(99)
|
|
|
(100)
|
|
|
(114)
|
|
|
(199)
|
|
|
(209)
|
|
Earnings from
continuing operations before income taxes
|
181
|
|
|
58
|
|
|
161
|
|
|
239
|
|
|
233
|
|
Income
taxes
|
(24)
|
|
|
(34)
|
|
|
(31)
|
|
|
(58)
|
|
|
(42)
|
|
Earnings from
continuing operations
|
157
|
|
|
24
|
|
|
130
|
|
|
181
|
|
|
191
|
|
Earnings from
discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
58
|
|
Net
earnings
|
157
|
|
|
24
|
|
|
168
|
|
|
181
|
|
|
249
|
|
Dividends on
preference shares
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(22)
|
|
Net earnings
attributable to Weyerhaeuser common shareholders
|
$
|
157
|
|
|
$
|
24
|
|
|
$
|
157
|
|
|
$
|
181
|
|
|
$
|
227
|
|
|
(1)
Discontinued operations as presented herein consist of the
operations of our former Cellulose Fibers segment. The
corresponding assets and liabilities were classified as
discontinued operations on our balance sheet.
|
|
(2)
Amounts presented reflect the results of operations acquired in our
merger with Plum Creek Timber, Inc., beginning on the merger date
of February 19, 2016.
|
|
|
|
|
Per Share
Information
|
|
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Earnings per share
attributable to Weyerhaeuser common shareholders, basic:
|
Continuing
operations
|
$
|
0.21
|
|
|
$
|
0.03
|
|
|
$
|
0.16
|
|
|
$
|
0.24
|
|
|
$
|
0.25
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
|
0.08
|
|
Net earnings per
share
|
$
|
0.21
|
|
|
$
|
0.03
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Weyerhaeuser common shareholders,
diluted:
|
Continuing
operations
|
$
|
0.21
|
|
|
$
|
0.03
|
|
|
$
|
0.16
|
|
|
$
|
0.24
|
|
|
$
|
0.25
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
|
0.08
|
|
Net earnings per
share
|
$
|
0.21
|
|
|
$
|
0.03
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
common share
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.62
|
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
Basic
|
750,665
|
|
|
752,630
|
|
|
743,140
|
|
|
751,674
|
|
|
687,572
|
|
Diluted
|
754,747
|
|
|
756,451
|
|
|
747,701
|
|
|
755,625
|
|
|
691,060
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period (in thousands)
|
751,411
|
|
|
752,711
|
|
|
733,010
|
|
|
752,711
|
|
|
733,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
|
|
|
|
|
Q2.2017 Analyst
Package
|
|
|
|
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and Amortization
(Adjusted EBITDA)*
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Net
earnings
|
$
|
157
|
|
|
$
|
24
|
|
|
$
|
168
|
|
|
$
|
181
|
|
|
$
|
249
|
|
Earnings from
discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
(38)
|
|
|
—
|
|
|
(58)
|
|
Equity earnings from
joint ventures
|
—
|
|
|
—
|
|
|
(7)
|
|
|
—
|
|
|
(12)
|
|
Non-operating pension
and other postretirement benefit costs (credits)
|
22
|
|
|
8
|
|
|
(10)
|
|
|
30
|
|
|
(24)
|
|
Interest income and
other
|
(9)
|
|
|
(9)
|
|
|
(10)
|
|
|
(18)
|
|
|
(19)
|
|
Interest expense, net
of capitalized interest
|
99
|
|
|
100
|
|
|
114
|
|
|
199
|
|
|
209
|
|
Income
taxes
|
24
|
|
|
34
|
|
|
31
|
|
|
58
|
|
|
42
|
|
Operating income
from continuing operations
|
293
|
|
|
157
|
|
|
248
|
|
|
450
|
|
|
387
|
|
Depreciation,
depletion and amortization
|
133
|
|
|
129
|
|
|
133
|
|
|
262
|
|
|
237
|
|
Basis of real estate
sold
|
14
|
|
|
10
|
|
|
13
|
|
|
24
|
|
|
30
|
|
Unallocated pension
service costs
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Special
items
|
12
|
|
|
210
|
|
|
19
|
|
|
222
|
|
|
93
|
|
Adjusted
EBITDA*
|
$
|
454
|
|
|
$
|
506
|
|
|
$
|
413
|
|
|
$
|
960
|
|
|
$
|
749
|
|
|
|
|
|
|
|
|
|
|
|
*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, basis of real estate sold, unallocated
pension service costs and special items. Adjusted EBITDA excludes
results from joint ventures. 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.
|
|
|
|
|
Special Items
Included in Net Earnings (income tax affected)
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Net earnings
attributable to Weyerhaeuser common shareholders
|
$
|
157
|
|
|
$
|
24
|
|
|
$
|
157
|
|
|
$
|
181
|
|
|
$
|
227
|
|
Plum Creek merger-
and integration-related costs
|
10
|
|
|
2
|
|
|
4
|
|
|
12
|
|
|
102
|
|
Uruguay
impairment
|
—
|
|
|
147
|
|
|
—
|
|
|
147
|
|
|
—
|
|
Gain on sale of
non-strategic asset
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22)
|
|
Legal
expense
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
Product
remediation
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
Countervailing and
antidumping duties
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
Net earnings
attributable to Weyerhaeuser common shareholders before special
items
|
167
|
|
|
212
|
|
|
168
|
|
|
379
|
|
|
314
|
|
Earnings from
discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
(38)
|
|
|
—
|
|
|
(58)
|
|
Net earnings from
continuing operations attributable to Weyerhaeuser common
shareholders before special items
|
$
|
167
|
|
|
$
|
212
|
|
|
$
|
130
|
|
|
$
|
379
|
|
|
$
|
256
|
|
|
|
|
|
|
|
|
|
|
|
per share
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Net earnings per
diluted share attributable to Weyerhaeuser common
shareholders
|
$
|
0.21
|
|
|
$
|
0.03
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.33
|
|
Plum Creek merger-
and integration-related costs
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.14
|
|
Uruguay
impairment
|
—
|
|
|
0.20
|
|
|
—
|
|
|
0.19
|
|
|
—
|
|
Gain on sale of
non-strategic asset
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.03)
|
|
Legal
expense
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Product
remediation
|
—
|
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Countervailing and
antidumping duties
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Net earnings per
diluted share attributable to Weyerhaeuser common shareholders
before special items
|
0.22
|
|
|
0.28
|
|
|
0.22
|
|
|
0.50
|
|
|
0.45
|
|
Earnings from
discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
(0.08)
|
|
Net earnings from
continuing operations per diluted share attributable to
Weyerhaeuser common shareholders before special
items
|
$
|
0.22
|
|
|
$
|
0.28
|
|
|
$
|
0.17
|
|
|
$
|
0.50
|
|
|
$
|
0.37
|
|
Weyerhaeuser
Company
|
|
|
|
Q2.2017 Analyst
Package
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
in
millions
|
March 31,
2017
|
|
June 30,
2017
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
455
|
|
|
$
|
701
|
|
|
$
|
676
|
|
Receivables, less
allowances
|
472
|
|
|
442
|
|
|
390
|
|
Receivables for
taxes
|
10
|
|
|
8
|
|
|
84
|
|
Inventories
|
386
|
|
|
349
|
|
|
358
|
|
Prepaid expenses and
other current assets
|
142
|
|
|
177
|
|
|
114
|
|
Assets held for
sale
|
—
|
|
|
411
|
|
|
—
|
|
Total current
assets
|
1,465
|
|
|
2,088
|
|
|
1,622
|
|
Property and
equipment, net
|
1,544
|
|
|
1,534
|
|
|
1,562
|
|
Construction in
progress
|
230
|
|
|
190
|
|
|
213
|
|
Timber and
timberlands at cost, less depletion charged to disposals
|
14,218
|
|
|
13,669
|
|
|
14,299
|
|
Minerals and mineral
rights, net
|
317
|
|
|
314
|
|
|
319
|
|
Investments in and
advances to joint ventures
|
56
|
|
|
33
|
|
|
56
|
|
Goodwill
|
40
|
|
|
40
|
|
|
40
|
|
Deferred tax
assets
|
287
|
|
|
261
|
|
|
293
|
|
Other
assets
|
229
|
|
|
246
|
|
|
224
|
|
Restricted financial
investments held by variable interest entities
|
615
|
|
|
615
|
|
|
615
|
|
Total
assets
|
$
|
19,001
|
|
|
$
|
18,990
|
|
|
$
|
19,243
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
|
343
|
|
|
$
|
668
|
|
|
$
|
281
|
|
Accounts
payable
|
227
|
|
|
252
|
|
|
233
|
|
Accrued
liabilities
|
452
|
|
|
585
|
|
|
692
|
|
Liabilities held for
sale
|
—
|
|
|
19
|
|
|
—
|
|
Total current
liabilities
|
1,022
|
|
|
1,524
|
|
|
1,206
|
|
Long-term
debt
|
6,263
|
|
|
5,936
|
|
|
6,329
|
|
Long-term debt
(nonrecourse to the company) held by variable interest
entities
|
511
|
|
|
511
|
|
|
511
|
|
Deferred pension and
other postretirement benefits
|
1,287
|
|
|
1,230
|
|
|
1,322
|
|
Deposit received from
contribution of timberlands to related party
|
422
|
|
|
419
|
|
|
426
|
|
Other
liabilities
|
281
|
|
|
280
|
|
|
269
|
|
Total
liabilities
|
9,786
|
|
|
9,900
|
|
|
10,063
|
|
Total
equity
|
9,215
|
|
|
9,090
|
|
|
9,180
|
|
Total liabilities
and equity
|
$
|
19,001
|
|
|
$
|
18,990
|
|
|
$
|
19,243
|
|
Weyerhaeuser
Company
|
|
|
|
|
Q2.2017 Analyst
Package
|
|
|
|
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Cash flows from
operations:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
157
|
|
|
$
|
24
|
|
|
$
|
168
|
|
|
$
|
181
|
|
|
$
|
249
|
|
Noncash charges
(credits) to income:
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
133
|
|
|
129
|
|
|
147
|
|
|
262
|
|
|
289
|
|
Basis of real estate
sold
|
14
|
|
|
10
|
|
|
13
|
|
|
24
|
|
|
30
|
|
Deferred income
taxes, net
|
3
|
|
|
3
|
|
|
38
|
|
|
6
|
|
|
56
|
|
Gains on sales of
discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Gains on sales of
non-strategic assets
|
(7)
|
|
|
(2)
|
|
|
(10)
|
|
|
(9)
|
|
|
(51)
|
|
Pension and other
postretirement benefits
|
32
|
|
|
15
|
|
|
1
|
|
|
47
|
|
|
5
|
|
Other noncash charges
(credits)
|
13
|
|
|
156
|
|
|
26
|
|
|
169
|
|
|
34
|
|
Change in:
|
|
|
|
|
|
|
|
|
|
Receivables less
allowances
|
(70)
|
|
|
(8)
|
|
|
(43)
|
|
|
(78)
|
|
|
(90)
|
|
Receivable for
taxes
|
(36)
|
|
|
(17)
|
|
|
25
|
|
|
(53)
|
|
|
35
|
|
Inventories
|
(28)
|
|
|
21
|
|
|
60
|
|
|
(7)
|
|
|
17
|
|
Prepaid
expenses
|
(9)
|
|
|
(4)
|
|
|
—
|
|
|
(13)
|
|
|
(1)
|
|
Accounts payable and
accrued liabilities
|
(137)
|
|
|
192
|
|
|
106
|
|
|
55
|
|
|
36
|
|
Pension and
postretirement contributions
|
(22)
|
|
|
(15)
|
|
|
(12)
|
|
|
(37)
|
|
|
(29)
|
|
Distributions of
earnings received from joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Other
|
(8)
|
|
|
(15)
|
|
|
(27)
|
|
|
(23)
|
|
|
(46)
|
|
Net cash from
operations
|
35
|
|
|
489
|
|
|
492
|
|
|
524
|
|
|
539
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(52)
|
|
|
(74)
|
|
|
(83)
|
|
|
(126)
|
|
|
(140)
|
|
Timberlands
reforestation costs
|
(23)
|
|
|
(13)
|
|
|
(18)
|
|
|
(36)
|
|
|
(34)
|
|
Acquisition of
timberlands
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(8)
|
|
Proceeds from sales
of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Proceeds from sale of
assets
|
8
|
|
|
4
|
|
|
13
|
|
|
12
|
|
|
83
|
|
Proceeds from
contribution of timberlands to related party
|
—
|
|
|
—
|
|
|
440
|
|
|
—
|
|
|
440
|
|
Distributions of
investment received from joint ventures
|
—
|
|
|
23
|
|
|
3
|
|
|
23
|
|
|
27
|
|
Cash and cash
equivalents acquired in the merger with Plum Creek
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
Other
|
(1)
|
|
|
22
|
|
|
(3)
|
|
|
21
|
|
|
(3)
|
|
Cash from (used
in) investing activities
|
(68)
|
|
|
(38)
|
|
|
350
|
|
|
(106)
|
|
|
374
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Cash dividends on
common shares
|
(233)
|
|
|
(233)
|
|
|
(228)
|
|
|
(466)
|
|
|
(469)
|
|
Cash dividends on
preference shares
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
Proceeds from
issuance of long-term debt
|
—
|
|
|
—
|
|
|
300
|
|
|
—
|
|
|
1,398
|
|
Payments of long-term
debt
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(723)
|
|
Repurchase of common
stock
|
—
|
|
|
—
|
|
|
(831)
|
|
|
—
|
|
|
(1,629)
|
|
Other
|
45
|
|
|
28
|
|
|
8
|
|
|
73
|
|
|
1
|
|
Cash used in
financing activities
|
(188)
|
|
|
(205)
|
|
|
(765)
|
|
|
(393)
|
|
|
(1,433)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
(221)
|
|
|
246
|
|
|
77
|
|
|
25
|
|
|
(520)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents from continuing operations at beginning of
period
|
$
|
676
|
|
|
$
|
455
|
|
|
$
|
411
|
|
|
$
|
676
|
|
|
1,011
|
|
Cash and cash
equivalents from discontinued operations at beginning of
period
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
1
|
|
Cash and cash
equivalents at beginning of period
|
$
|
676
|
|
|
$
|
455
|
|
|
$
|
415
|
|
|
$
|
676
|
|
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents from continuing operations at end of period
|
$
|
455
|
|
|
$
|
701
|
|
|
$
|
485
|
|
|
$
|
701
|
|
|
485
|
|
Cash and cash
equivalents from discontinued operations at end of
period
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
Cash and cash
equivalents at end of period
|
$
|
455
|
|
|
$
|
701
|
|
|
$
|
492
|
|
|
$
|
701
|
|
|
$
|
492
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid (received)
during the year for:
|
|
|
|
|
|
|
|
|
|
Interest, net of
amount capitalized
|
$
|
120
|
|
|
$
|
72
|
|
|
$
|
92
|
|
|
$
|
192
|
|
|
$
|
225
|
|
Income
taxes
|
$
|
59
|
|
|
$
|
47
|
|
|
$
|
(12)
|
|
|
$
|
106
|
|
|
$
|
(25)
|
|
Weyerhaeuser
Company
|
|
|
Total Company
Statistics
|
Q2.2017 Analyst
Package
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Total
Company Items
|
|
in
millions
|
Q1
|
|
Q2
|
|
Year-to-date
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Pension and
postretirement costs:
|
|
|
|
|
|
|
|
|
|
Pension and
postretirement costs allocated to business segments
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
15
|
|
Pension and
postretirement credits not allocated:
|
|
|
|
|
|
|
|
|
|
Unallocated pension
service costs
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Non-operating pension
and other postretirement benefit costs (credits)
|
22
|
|
|
8
|
|
|
(10)
|
|
|
30
|
|
|
(24)
|
|
Accelerated pension
costs included in Plum Creek merger-related costs (not
allocated)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Total pension and
postretirement costs (credits) for continuing
operations
|
32
|
|
|
15
|
|
|
(2)
|
|
|
47
|
|
|
(2)
|
|
Pension and
postretirement service costs directly attributable to discontinued
operations
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
7
|
|
Total company
pension and postretirement costs
|
$
|
32
|
|
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
47
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
Cash spent for
capital expenditures for continuing operations
|
$
|
(75)
|
|
|
$
|
(87)
|
|
|
$
|
(89)
|
|
|
$
|
(162)
|
|
|
$
|
(140)
|
|
Weyerhaeuser
Company
|
|
|
|
|
Timberlands
Segment
|
Q2.2017 Analyst
Package
|
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Sales to unaffiliated
customers
|
$
|
486
|
|
|
$
|
469
|
|
|
$
|
471
|
|
|
$
|
955
|
|
|
$
|
858
|
|
Intersegment
sales
|
202
|
|
|
163
|
|
|
193
|
|
|
365
|
|
|
415
|
|
Total net
sales
|
688
|
|
|
632
|
|
|
664
|
|
|
1,320
|
|
|
1,273
|
|
Cost of products
sold
|
519
|
|
|
476
|
|
|
509
|
|
|
995
|
|
|
968
|
|
Gross
margin
|
169
|
|
|
156
|
|
|
155
|
|
|
325
|
|
|
305
|
|
Selling
expenses
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
General and
administrative expenses
|
24
|
|
|
23
|
|
|
32
|
|
|
47
|
|
|
60
|
|
Research and
development expenses
|
3
|
|
|
4
|
|
|
4
|
|
|
7
|
|
|
8
|
|
Charges for
integration and restructuring, closures and assets
impairments
|
—
|
|
|
147
|
|
|
—
|
|
|
147
|
|
|
—
|
|
Other operating
income, net
|
(7)
|
|
|
(7)
|
|
|
(8)
|
|
|
(14)
|
|
|
(20)
|
|
Operating income
and Net contribution to earnings
|
$
|
148
|
|
|
$
|
(12)
|
|
|
$
|
125
|
|
|
$
|
136
|
|
|
$
|
254
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Operating
income
|
$
|
148
|
|
|
$
|
(12)
|
|
|
$
|
125
|
|
|
$
|
136
|
|
|
$
|
254
|
|
Depreciation,
depletion and amortization
|
94
|
|
|
87
|
|
|
95
|
|
|
181
|
|
|
165
|
|
Special
items
|
—
|
|
|
147
|
|
|
—
|
|
|
147
|
|
|
—
|
|
Adjusted
EBITDA*
|
$
|
242
|
|
|
$
|
222
|
|
|
$
|
220
|
|
|
$
|
464
|
|
|
$
|
419
|
|
|
|
|
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Special
Items Included in Net Contribution to Earnings
(Pre-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Uruguay
impairment
|
—
|
|
|
(147)
|
|
|
—
|
|
|
(147)
|
|
|
—
|
|
Selected Segment
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Total decrease
(increase) in working capital (1)
|
$
|
(37)
|
|
|
$
|
(5)
|
|
|
$
|
28
|
|
|
$
|
(42)
|
|
|
$
|
(25)
|
|
Cash spent for
capital expenditures
|
$
|
(30)
|
|
|
$
|
(25)
|
|
|
$
|
(31)
|
|
|
$
|
(55)
|
|
|
$
|
(51)
|
|
|
(1)
Working capital does not include cash balances. Represents the
change in combined working capital of Timberlands and Real Estate
& ENR.
|
|
Segment
Statistics(2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Third Party
Net Sales(millions)
|
Delivered
logs:
|
|
|
|
|
|
|
|
|
|
West
|
$
|
225
|
|
|
$
|
227
|
|
|
$
|
232
|
|
|
$
|
452
|
|
|
$
|
447
|
|
South
|
148
|
|
|
148
|
|
|
154
|
|
|
296
|
|
|
255
|
|
North
|
27
|
|
|
16
|
|
|
19
|
|
|
43
|
|
|
32
|
|
Other
|
20
|
|
|
11
|
|
|
7
|
|
|
31
|
|
|
14
|
|
Total delivered
logs
|
420
|
|
|
402
|
|
|
412
|
|
|
822
|
|
|
748
|
|
Stumpage and
pay-as-cut timber
|
12
|
|
|
17
|
|
|
23
|
|
|
29
|
|
|
38
|
|
Products from
international operations
|
19
|
|
|
21
|
|
|
21
|
|
|
40
|
|
|
37
|
|
Recreational and
other lease revenue
|
14
|
|
|
15
|
|
|
8
|
|
|
29
|
|
|
14
|
|
Other
revenue
|
21
|
|
|
14
|
|
|
7
|
|
|
35
|
|
|
21
|
|
Total
|
$
|
486
|
|
|
$
|
469
|
|
|
$
|
471
|
|
|
$
|
955
|
|
|
$
|
858
|
|
Delivered
Logs
Third Party
Sales
Realizations
(per ton)
|
West
|
$
|
104.27
|
|
|
$
|
105.84
|
|
|
$
|
98.21
|
|
|
$
|
105.06
|
|
|
$
|
99.39
|
|
South
|
$
|
34.48
|
|
|
$
|
34.48
|
|
|
$
|
35.54
|
|
|
$
|
34.48
|
|
|
$
|
35.87
|
|
North
|
$
|
59.57
|
|
|
$
|
63.49
|
|
|
$
|
65.43
|
|
|
$
|
60.97
|
|
|
$
|
62.95
|
|
International
|
$
|
28.18
|
|
|
$
|
29.73
|
|
|
$
|
23.29
|
|
|
$
|
28.98
|
|
|
$
|
18.59
|
|
Delivered
Logs
Third Party
Sales
Volumes
(tons,
thousands)
|
West
|
2,157
|
|
|
2,143
|
|
|
2,363
|
|
|
4,300
|
|
|
4,496
|
|
South
|
4,293
|
|
|
4,285
|
|
|
4,340
|
|
|
8,578
|
|
|
7,121
|
|
North
|
454
|
|
|
253
|
|
|
292
|
|
|
707
|
|
|
502
|
|
International
|
90
|
|
|
96
|
|
|
89
|
|
|
186
|
|
|
235
|
|
Other
|
510
|
|
|
292
|
|
|
169
|
|
|
802
|
|
|
338
|
|
Fee Harvest
Volumes
(tons,
thousands)
|
West
|
2,657
|
|
|
2,652
|
|
|
2,980
|
|
|
5,309
|
|
|
5,781
|
|
South
|
6,373
|
|
|
6,473
|
|
|
7,061
|
|
|
12,846
|
|
|
12,091
|
|
North
|
622
|
|
|
383
|
|
|
454
|
|
|
1,005
|
|
|
714
|
|
International
|
265
|
|
|
319
|
|
|
248
|
|
|
584
|
|
|
547
|
|
Other
|
371
|
|
|
444
|
|
|
181
|
|
|
815
|
|
|
181
|
|
|
(2) The
Western region includes Washington and Oregon. The Southern region
includes Virginia, North Carolina, South Carolina, Florida,
Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and
Oklahoma. The Northern region includes West Virginia, Maine, New
Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes
our Canadian operations and managed Twin Creeks
operations.
|
|
(3)
Western logs are primarily transacted in MBF but are converted to
ton equivalents for external reporting purposes.
|
Weyerhaeuser
Company
|
|
|
|
Real Estate,
Energy and Natural
Resources Segment
|
Q2.2017 Analyst
Package
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Sales to unaffiliated
customers
|
$
|
53
|
|
|
$
|
46
|
|
|
$
|
38
|
|
|
$
|
99
|
|
|
$
|
77
|
|
Intersegment
sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
sales
|
53
|
|
|
46
|
|
|
38
|
|
|
99
|
|
|
77
|
|
Cost of products
sold
|
20
|
|
|
16
|
|
|
19
|
|
|
36
|
|
|
39
|
|
Gross
margin
|
33
|
|
|
30
|
|
|
19
|
|
|
63
|
|
|
38
|
|
Selling
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
General and
administrative expenses
|
7
|
|
|
7
|
|
|
8
|
|
|
14
|
|
|
12
|
|
Charges for
integration, restructuring, closures and asset
impairments
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Other operating costs
(income), net
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Operating
income
|
26
|
|
|
23
|
|
|
12
|
|
|
49
|
|
|
27
|
|
Equity earnings
(loss) from joint ventures(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net contribution
to earnings
|
$
|
26
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
49
|
|
|
$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Operating
income
|
$
|
26
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
49
|
|
|
$
|
27
|
|
Depreciation,
depletion and amortization
|
3
|
|
|
4
|
|
|
3
|
|
|
7
|
|
|
5
|
|
Basis of real estate
sold
|
14
|
|
|
10
|
|
|
13
|
|
|
24
|
|
|
30
|
|
Adjusted
EBITDA*
|
$
|
43
|
|
|
$
|
37
|
|
|
$
|
28
|
|
|
$
|
80
|
|
|
$
|
62
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Cash spent for
capital expenditures
|
$
|
—
|
|
|
$
|
(1)
|
|
|
$
|
(1)
|
|
|
$
|
(1)
|
|
|
$
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Net Sales
(millions)
|
Real
Estate
|
$
|
37
|
|
|
$
|
27
|
|
|
$
|
26
|
|
|
$
|
64
|
|
|
$
|
56
|
|
Energy and natural
resources
|
16
|
|
|
19
|
|
|
12
|
|
|
35
|
|
|
21
|
|
Total
|
$
|
53
|
|
|
$
|
46
|
|
|
$
|
38
|
|
|
$
|
99
|
|
|
$
|
77
|
|
Acres sold
|
Real
Estate
|
13,257
|
|
|
10,003
|
|
|
10,020
|
|
|
23,260
|
|
|
25,245
|
|
Price per
acre
|
Real
Estate
|
$
|
2,403
|
|
|
$
|
2,714
|
|
|
$
|
2,555
|
|
|
$
|
2,537
|
|
|
$
|
2,210
|
|
Weyerhaeuser
Company
|
Wood Products
Segment
|
Q2.2017 Analyst
Package
|
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
in
millions
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Sales to unaffiliated
customers
|
$
|
1,154
|
|
|
$
|
1,293
|
|
|
$
|
1,146
|
|
|
$
|
2,447
|
|
|
$
|
2,125
|
|
Intersegment
sales
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
44
|
|
Total net
sales
|
1,154
|
|
|
1,293
|
|
|
1,168
|
|
|
2,447
|
|
|
2,169
|
|
Cost of products
sold
|
926
|
|
|
1,002
|
|
|
957
|
|
|
1,928
|
|
|
1,819
|
|
Gross
margin
|
228
|
|
|
291
|
|
|
211
|
|
|
519
|
|
|
350
|
|
Selling
expenses
|
21
|
|
|
19
|
|
|
20
|
|
|
40
|
|
|
42
|
|
General and
administrative expenses
|
32
|
|
|
32
|
|
|
30
|
|
|
64
|
|
|
57
|
|
Research and
development expenses
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Charges for
integration and restructuring, closures and asset
impairments
|
1
|
|
|
2
|
|
|
4
|
|
|
3
|
|
|
5
|
|
Other operating costs
(income), net
|
1
|
|
|
61
|
|
|
1
|
|
|
62
|
|
|
2
|
|
Operating income
and Net contribution to earnings
|
$
|
172
|
|
|
$
|
177
|
|
|
$
|
156
|
|
|
$
|
349
|
|
|
$
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Operating
income
|
$
|
172
|
|
|
$
|
177
|
|
|
$
|
156
|
|
|
$
|
349
|
|
|
$
|
243
|
|
Depreciation,
depletion and amortization
|
35
|
|
|
36
|
|
|
33
|
|
|
71
|
|
|
63
|
|
Special
items
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
|
—
|
|
Adjusted
EBITDA*
|
$
|
207
|
|
|
$
|
274
|
|
|
$
|
189
|
|
|
$
|
481
|
|
|
$
|
306
|
|
|
|
|
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 2.
|
|
|
|
|
|
Segment Special
Items Included in Net Contribution to Earnings
(Pre-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Countervailing and
antidumping duties
|
$
|
—
|
|
|
$
|
(11)
|
|
|
$
|
—
|
|
|
$
|
(11)
|
|
|
$
|
—
|
|
Product
remediation
|
—
|
|
|
(50)
|
|
|
—
|
|
|
(50)
|
|
|
—
|
|
Total
|
$
|
—
|
|
|
$
|
(61)
|
|
|
$
|
—
|
|
|
$
|
(61)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Segment
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Total decrease
(increase) in working capital (1)
|
$
|
(122)
|
|
|
$
|
113
|
|
|
$
|
35
|
|
|
$
|
(9)
|
|
|
$
|
(97)
|
|
Cash spent for
capital expenditures
|
$
|
(44)
|
|
|
$
|
(61)
|
|
|
$
|
(52)
|
|
|
$
|
(105)
|
|
|
$
|
(81)
|
|
|
|
|
|
|
(1)
Working capital does not include cash balances.
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
in millions, except
for third-party sales realizations
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Structural Lumber
(board feet)
|
Third party net
sales
|
$
|
478
|
|
|
$
|
538
|
|
|
$
|
498
|
|
|
$
|
1,016
|
|
|
$
|
917
|
|
Third party sales
realizations
|
$
|
413
|
|
|
$
|
441
|
|
|
$
|
399
|
|
|
$
|
427
|
|
|
$
|
382
|
|
Third party sales
volumes (2)
|
1,158
|
|
|
1,218
|
|
|
1,249
|
|
|
2,376
|
|
|
2,401
|
|
Production
volumes
|
1,152
|
|
|
1,146
|
|
|
1,205
|
|
|
2,298
|
|
|
2,334
|
|
Engineered Solid
Section
(cubic feet)
|
Third party net
sales
|
$
|
117
|
|
|
$
|
130
|
|
|
$
|
115
|
|
|
$
|
247
|
|
|
$
|
224
|
|
Third party sales
realizations
|
$
|
1,881
|
|
|
$
|
1,979
|
|
|
$
|
1,922
|
|
|
$
|
1,931
|
|
|
$
|
1,946
|
|
Third party sales
volumes (2)
|
6.2
|
|
|
6.6
|
|
|
6.0
|
|
|
12.8
|
|
|
11.5
|
|
Production
volumes
|
6.3
|
|
|
6.6
|
|
|
5.9
|
|
|
12.9
|
|
|
11.5
|
|
Engineered
I-joists
(lineal feet)
|
Third party net
sales
|
$
|
73
|
|
|
$
|
85
|
|
|
$
|
73
|
|
|
$
|
158
|
|
|
$
|
139
|
|
Third party sales
realizations
|
$
|
1,481
|
|
|
$
|
1,522
|
|
|
$
|
1,471
|
|
|
$
|
1,503
|
|
|
$
|
1,488
|
|
Third party sales
volumes (2)
|
49
|
|
|
57
|
|
|
50
|
|
|
106
|
|
|
94
|
|
Production
volumes
|
50
|
|
|
53
|
|
|
46
|
|
|
103
|
|
|
92
|
|
Oriented Strand
Board
(square feet 3/8")
|
Third party net
sales
|
$
|
203
|
|
|
$
|
225
|
|
|
$
|
182
|
|
|
$
|
428
|
|
|
$
|
345
|
|
Third party sales
realizations
|
$
|
263
|
|
|
$
|
295
|
|
|
$
|
240
|
|
|
$
|
279
|
|
|
$
|
227
|
|
Third party sales
volumes (2)
|
769
|
|
|
764
|
|
|
761
|
|
|
1,533
|
|
|
1,520
|
|
Production
volumes
|
758
|
|
|
754
|
|
|
733
|
|
|
1,512
|
|
|
1,482
|
|
Softwood Plywood
(square feet
3/8")
|
Third party net
sales
|
$
|
44
|
|
|
$
|
47
|
|
|
$
|
50
|
|
|
$
|
91
|
|
|
$
|
85
|
|
Third party sales
realizations
|
$
|
377
|
|
|
$
|
380
|
|
|
$
|
382
|
|
|
$
|
379
|
|
|
$
|
352
|
|
Third party sales
volumes (2)
|
118
|
|
|
123
|
|
|
131
|
|
|
241
|
|
|
241
|
|
Production
volumes
|
97
|
|
|
99
|
|
|
111
|
|
|
196
|
|
|
199
|
|
Medium Density
Fiberboard
(square feet 3/4")
|
Third party net
sales
|
$
|
47
|
|
|
$
|
51
|
|
|
$
|
47
|
|
|
$
|
98
|
|
|
$
|
64
|
|
Third party sales
realizations
|
$
|
795
|
|
|
$
|
845
|
|
|
$
|
772
|
|
|
$
|
820
|
|
|
$
|
769
|
|
Third party sales
volumes (2)
|
59
|
|
|
60
|
|
|
60
|
|
|
119
|
|
|
83
|
|
Production
volumes
|
56
|
|
|
63
|
|
|
62
|
|
|
119
|
|
|
87
|
|
|
(2)
Volumes include sales of internally produced products and products
purchased for resale primarily through our distribution
business.
|
Weyerhaeuser
Company
|
Unallocated
Items
|
Q2.2017 Analyst
Package
|
|
|
|
|
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 financing and
the elimination of intersegment profit in inventory, equity
earnings from our timberland venture, and the LIFO
reserve.
|
|
|
|
|
|
|
|
|
|
|
Contribution to
Earnings
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Unallocated corporate
function expenses
|
$
|
(19)
|
|
|
$
|
(17)
|
|
|
$
|
(24)
|
|
|
$
|
(36)
|
|
|
$
|
(41)
|
|
Unallocated
share-based compensation
|
(6)
|
|
|
—
|
|
|
1
|
|
|
(6)
|
|
|
(1)
|
|
Unallocated pension
service costs
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(2)
|
|
Foreign exchange
gains (losses)
|
(3)
|
|
|
—
|
|
|
1
|
|
|
(3)
|
|
|
14
|
|
Elimination of
intersegment profit in inventory and LIFO
|
(6)
|
|
|
(3)
|
|
|
(2)
|
|
|
(9)
|
|
|
(8)
|
|
Gain on sale of
non-strategic asset
|
3
|
|
|
1
|
|
|
8
|
|
|
4
|
|
|
44
|
|
Charges for
integration and restructuring, closures and asset
impairments:
|
|
|
|
|
|
|
|
|
Plum
Creek merger- and integration-related costs
|
(12)
|
|
|
(2)
|
|
|
(8)
|
|
|
(14)
|
|
|
(118)
|
|
Other
restructuring, closures and asset impairments
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Other
|
(8)
|
|
|
(10)
|
|
|
(20)
|
|
|
(18)
|
|
|
(24)
|
|
Operating income
(loss)
|
(53)
|
|
|
(31)
|
|
|
(45)
|
|
|
(84)
|
|
|
(137)
|
|
Equity earnings from
joint venture (1)
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
12
|
|
Non-operating pension
and other postretirement benefit (costs) credits
(2)
|
(22)
|
|
|
(8)
|
|
|
10
|
|
|
(30)
|
|
|
24
|
|
Interest income and
other
|
9
|
|
|
9
|
|
|
10
|
|
|
18
|
|
|
19
|
|
Net contribution
to earnings
|
$
|
(66)
|
|
|
$
|
(30)
|
|
|
$
|
(18)
|
|
|
$
|
(96)
|
|
|
$
|
(82)
|
|
|
(1) 2016
results include equity earnings from our Timberland Venture, which
was consolidated as a wholly-owned subsidiary effective August 31,
2016.
|
|
(2) During
Q1 2017 we adopted ASU 2017-07. This ASU requires us to show
components of pension and other post retirement benefit costs
(interest, expected return on plan assets, amortization of
actuarial gains or losses, amortization of prior service credits or
costs) on the Consolidated Statement of Operations as a line item
outside of "Operating income." We reclassified these components for
all periods shown above.
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Operating income
(loss)
|
$
|
(53)
|
|
|
$
|
(31)
|
|
|
$
|
(45)
|
|
|
$
|
(84)
|
|
|
$
|
(137)
|
|
Depreciation,
depletion and amortization
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
4
|
|
Unallocated pension
service costs
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Special
items
|
12
|
|
|
2
|
|
|
19
|
|
|
14
|
|
|
93
|
|
Adjusted
EBITDA*
|
$
|
(38)
|
|
|
$
|
(27)
|
|
|
$
|
(24)
|
|
|
$
|
(65)
|
|
|
$
|
(38)
|
|
|
|
|
|
|
|
|
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Special Items Included in Net Contribution to Earnings
(Pre-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Plum Creek merger-
and integration-related costs
|
(12)
|
|
|
(2)
|
|
|
(8)
|
|
|
(14)
|
|
|
(118)
|
|
Gain on sale of
non-strategic asset
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
Legal
expense
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
Total
|
$
|
(12)
|
|
|
$
|
(2)
|
|
|
$
|
(19)
|
|
|
$
|
(14)
|
|
|
$
|
(93)
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Selected Items
|
|
|
|
|
|
|
|
|
|
|
|
Q1.2017
|
|
Q2.2017
|
|
Q2.2016
|
|
YTD.2017
|
|
YTD.2016
|
Cash spent for
capital expenditures
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
(5)
|
|
|
$
|
(1)
|
|
|
$
|
(7)
|
|
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SOURCE Weyerhaeuser Company