SEATTLE, Oct. 26, 2018 /PRNewswire/ -- Weyerhaeuser
Company (NYSE: WY) today reported third quarter net earnings of
$255 million, or 34 cents per diluted share, on net sales of
$1.9 billion. This compares with
earnings of $130 million, or
17 cents per diluted share, on net
sales of $1.9 billion for the same
period last year.
View our earnings release and financial statements in a
printer-friendly PDF.
Excluding a special tax benefit of $41
million, the company reported net earnings of $214 million, or 28
cents per diluted share for the third quarter. This compares
with net earnings before special items of $259 million for the same period last year and
$332 million for the second quarter
of 2018. Adjusted EBITDA for the third quarter was $505 million compared with $569 million for the third quarter of last year
and $637 million for the second
quarter of 2018.
"In the third quarter, our business delivered solid operating
performance despite significant headwinds from severe weather,
trade policy and unusually volatile wood products markets," said
Doyle R. Simons, president and chief
executive officer. "During the quarter we demonstrated our ongoing
commitment to disciplined capital allocation by increasing our
quarterly dividend six percent, repurchasing $290 million of common shares, and announcing
actions to reduce our pension liabilities. Going forward, we remain
relentlessly focused on driving value for shareholders through
industry-leading performance and disciplined capital
allocation."
WEYERHAEUSER
FINANCIAL HIGHLIGHTS
|
2018
|
|
2018
|
|
2017
|
(millions, except
per share data)
|
Q2
|
|
Q3
|
|
Q3
|
Net sales
|
$2,065
|
|
$1,910
|
|
$1,872
|
Net
earnings
|
$317
|
|
$255
|
|
$130
|
Net earnings per
diluted share
|
$0.42
|
|
$0.34
|
|
$0.17
|
Weighted average
shares outstanding, diluted
|
761
|
|
757
|
|
757
|
Net earnings before
special items(1)
|
$332
|
|
$214
|
|
$259
|
Net earnings per
diluted share before special items
|
$0.44
|
|
$0.28
|
|
$0.34
|
Adjusted
EBITDA(2)
|
$637
|
|
$505
|
|
$569
|
|
|
|
|
|
|
(1)
|
Second quarter 2018
special items include $15 million of net after-tax charges for
product remediation. Third quarter 2018 after-tax special items
include a $41 million tax benefit related to the previously
announced $300 million contribution to our U.S. qualified pension
plan. Third quarter 2017 after-tax special items include a $118
million charge for product remediation, $4 million for
countervailing and antidumping duties on Canadian softwood lumber
the company sold into the United States, $4 million for
restructuring, impairments, and other charges, and $3 million for
Plum Creek merger-related costs. Beginning first quarter 2018,
countervailing and antidumping duties are no longer reported as a
special item.
|
|
|
(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, 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
|
2018
|
|
2018
|
|
|
(millions)
|
Q2
|
|
Q3
|
|
Change
|
Net sales
|
$667
|
|
$653
|
|
($14)
|
Contribution to
pre-tax earnings
|
$161
|
|
$126
|
|
($35)
|
Adjusted
EBITDA
|
$240
|
|
$206
|
|
($34)
|
3Q 2018 Performance - In the West, average sales
realizations for domestic and Chinese export logs declined,
domestic and export log sales volumes decreased, and road and unit
logging costs increased seasonally. In the South, slightly higher
average sales realizations were more than offset by moderately
lower sales volumes due to weather, increased unit logging costs
and seasonally higher forestry spending.
4Q 2018 Outlook - Weyerhaeuser expects fourth quarter
earnings and Adjusted EBITDA will be lower than the third quarter.
In the West, the company anticipates lower average sales
realizations, partially offset by moderately higher export log
sales volumes. In the South, the company anticipates slightly
higher fee harvest volumes and comparable average log sales
realizations.
REAL ESTATE,
ENERGY & NATURAL RESOURCES
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
2018
|
|
2018
|
|
|
(millions)
|
Q2
|
|
Q3
|
|
Change
|
Net sales
|
$58
|
|
$96
|
|
$38
|
Contribution to
pre-tax earnings
|
$22
|
|
$36
|
|
$14
|
Adjusted
EBITDA
|
$47
|
|
$86
|
|
$39
|
3Q 2018 Performance - Earnings and Adjusted EBITDA
increased compared to the second quarter due to seasonally higher
real estate sales and a large acre transaction in Montana which accounted for approximately half
of the acres sold in the third quarter. Average land basis
increased modestly due to the mix of properties sold.
4Q 2018 Outlook - Weyerhaeuser anticipates fourth quarter
earnings and Adjusted EBITDA will be comparable to the third
quarter. The company expects full year 2018 Adjusted EBITDA for the
segment will be approximately $260
million.
WOOD
PRODUCTS
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
2018
|
|
2018
|
|
|
(millions)
|
Q2
|
|
Q3
|
|
Change
|
Net sales
|
$1,525
|
|
$1,346
|
|
($179)
|
Contribution to
pre-tax earnings
|
$329
|
|
$213
|
|
($116)
|
Pre-tax charge
(benefit) for special items
|
$20
|
|
—
|
|
($20)
|
Contribution to
pre-tax earnings before special items
|
$349
|
|
$213
|
|
($136)
|
Adjusted
EBITDA
|
$385
|
|
$250
|
|
($135)
|
|
|
|
|
|
|
|
3Q 2018 Performance - Average sales realizations for
lumber declined nine percent and average sales realizations for
oriented strand board were 13 percent lower compared to the second
quarter. Operating rates and sales volumes declined and unit
manufacturing costs increased, primarily due to mill downtime
related to severe weather in the U.S. South and a scheduled press
replacement at our Grayling,
Michigan oriented strand board mill. Canadian log costs also
increased.
4Q 2018 Outlook - Weyerhaeuser anticipates fourth quarter
earnings and Adjusted EBITDA will be significantly lower than the
third quarter. Based on current pricing, the company anticipates
average sales realizations for lumber and oriented strand board
will be substantially lower than third quarter averages. This will
be partially offset by lower Western and Canadian log costs,
improved unit manufacturing costs for lumber, and higher sales
volumes for oriented strand board due to completion of the
Grayling press replacement.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners
of timberlands, began operations in 1900. We own or control 12.4
million acres of timberlands in the U.S. and manage additional
timberlands under long-term licenses in Canada. We manage these timberlands on a
sustainable basis in compliance with internationally recognized
forestry standards. We are also one of the largest manufacturers of
wood products. Our company is a real estate investment trust. In
February 2016, we merged with Plum
Creek Timber Company, Inc. In 2017, we generated $7.2 billion in net sales and employed
approximately 9,300 people who serve customers worldwide. We are
listed on the North American and World Dow Jones Sustainability
Indices. Our common stock trades on the New York Stock Exchange
under the symbol WY. Learn more at
https://www.weyerhaeuser.com/.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10
a.m. Eastern) on October 26, 2018, to discuss third
quarter results.
To access the live webcast and presentation online, go to the
Investor Relations section on https://www.weyerhaeuser.com/ on
October 26, 2018.
To join the conference call from within North America, dial
855-223-0757 (access code: 6699896) at least 15 minutes prior to
the call. Those calling from outside North America should dial
574-990-1206 (access code: 6699896). Replays will be available for
two weeks at 855-859-2056 (access code: 6699896) from
within North America and at 404-537-3406 (access code:
6699896) from outside North America.
FORWARD LOOKING STATEMENTS
This report contains statements concerning our 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.
Forward-looking statements may appear throughout this report. These
forward-looking 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 "going forward",
"will be," "will continue," "will likely result," and similar words
and expressions. Forward-looking 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 the content of these 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, general availability
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 yen and the Canadian dollar, and
the relative value of the euro to the yen;
- restrictions on international trade, tariffs imposed on imports
of our products and 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, and cost reduction initiatives;
- 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;
- 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 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;
- changes in accounting principles; and
- other risks and uncertainties identified in our 2017 Annual
Report on Form 10-K, which are incorporated herein by reference, as
well as those set forth from time to time in our other public
statements and other reports and filings with the SEC.
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 - Beth Baum,
206-539-3907
Media - Nancy Thompson,
919-861-0342
|
|
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 June 30,
2018:
|
|
DOLLAR AMOUNTS IN
MILLIONS
|
Timberlands
|
|
Real
Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
$
|
317
|
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
92
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
65
|
|
Net contribution
to earnings
|
$
|
161
|
|
|
$
|
22
|
|
|
$
|
329
|
|
|
$
|
(38)
|
|
|
$
|
474
|
|
Non-operating pension
and other postretirement benefit costs
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
Interest income and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
(11)
|
|
|
(11)
|
|
Operating income
(loss)
|
161
|
|
|
22
|
|
|
329
|
|
|
(36)
|
|
|
476
|
|
Depreciation,
depletion and amortization
|
79
|
|
|
3
|
|
|
36
|
|
|
1
|
|
|
119
|
|
Basis of real estate
sold
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
Special
items(1)
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
Adjusted
EBITDA
|
$
|
240
|
|
|
$
|
47
|
|
|
$
|
385
|
|
|
$
|
(35)
|
|
|
$
|
637
|
|
|
(1)
Pre-tax special items included in Wood
Products consist of net charges of $20 million for finalization of
product remediation costs.
|
|
|
The table below
reconciles Adjusted EBITDA for the quarter ended September 30,
2018:
|
|
DOLLAR AMOUNTS IN
MILLIONS
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
$
|
255
|
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
93
|
|
Income
taxes(1)
|
|
|
|
|
|
|
|
|
(15)
|
|
Net contribution
to earnings
|
$
|
126
|
|
|
$
|
36
|
|
|
$
|
213
|
|
|
$
|
(42)
|
|
|
$
|
333
|
|
Non-operating pension
and other postretirement benefit costs
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
Interest income and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
(13)
|
|
Operating income
(loss)
|
126
|
|
|
36
|
|
|
213
|
|
|
(38)
|
|
|
337
|
|
Depreciation,
depletion and amortization
|
80
|
|
|
4
|
|
|
37
|
|
|
1
|
|
|
122
|
|
Basis of real estate
sold
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
Adjusted
EBITDA
|
$
|
206
|
|
|
$
|
86
|
|
|
$
|
250
|
|
|
$
|
(37)
|
|
|
$
|
505
|
|
|
(1) After
tax special items included a $41 million tax benefit related to our
$300 million pension contribution. There were no pre-tax special
items in third quarter 2018.
|
|
|
The table below
reconciles Adjusted EBITDA for the quarter ended September 30,
2017:
|
|
DOLLAR AMOUNTS IN
MILLIONS
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
$
|
130
|
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
98
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
(27)
|
|
Net contribution
to earnings
|
$
|
131
|
|
|
$
|
47
|
|
|
$
|
40
|
|
|
$
|
(17)
|
|
|
$
|
201
|
|
Non-operating pension
and other postretirement benefit costs
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
Interest income and
other
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(11)
|
|
|
(12)
|
|
Operating income
(loss)
|
131
|
|
|
46
|
|
|
40
|
|
|
(12)
|
|
|
205
|
|
Depreciation,
depletion and amortization
|
89
|
|
|
4
|
|
|
37
|
|
|
2
|
|
|
132
|
|
Basis of real estate
sold
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
Unallocated pension
service costs
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Special
items(1)
|
—
|
|
|
—
|
|
|
201
|
|
|
6
|
|
|
207
|
|
Adjusted
EBITDA
|
$
|
220
|
|
|
$
|
74
|
|
|
$
|
278
|
|
|
$
|
(3)
|
|
|
$
|
569
|
|
|
|
(1)
|
Special items
attributable to Wood Products includes: $190 million of product
remediation charges, $6 million of restructuring, impairments and
other charges and $5 million of retroactive and prospective
countervailing and antidumping duties. Special items attributable
to Unallocated Items include $6 million of Plum Creek
merger-related costs.
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
Exhibit
99.2
|
|
Q3.2018 Analyst
Package
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Net
sales
|
$
|
1,865
|
|
|
$
|
2,065
|
|
|
$
|
1,910
|
|
|
$
|
1,872
|
|
|
$
|
5,840
|
|
|
$
|
5,373
|
|
Cost of products
sold
|
1,348
|
|
|
1,447
|
|
|
1,452
|
|
|
1,374
|
|
|
4,247
|
|
|
3,982
|
|
Gross
margin
|
517
|
|
|
618
|
|
|
458
|
|
|
498
|
|
|
1,593
|
|
|
1,391
|
|
Selling
expenses
|
23
|
|
|
23
|
|
|
20
|
|
|
22
|
|
|
66
|
|
|
66
|
|
General and
administrative expenses
|
78
|
|
|
80
|
|
|
78
|
|
|
75
|
|
|
236
|
|
|
238
|
|
Research and
development expenses
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
|
6
|
|
|
12
|
|
Charges for
integration and restructuring, closures and asset
impairments
|
2
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
2
|
|
|
178
|
|
Charges (recoveries)
for product remediation, net
|
(20)
|
|
|
20
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
240
|
|
Other operating costs
(income), net
|
28
|
|
|
17
|
|
|
21
|
|
|
(12)
|
|
|
66
|
|
|
2
|
|
Operating
income
|
404
|
|
|
476
|
|
|
337
|
|
|
205
|
|
|
1,217
|
|
|
655
|
|
Non-operating pension
and other postretirement benefit costs
|
(24)
|
|
|
(13)
|
|
|
(17)
|
|
|
(16)
|
|
|
(54)
|
|
|
(46)
|
|
Interest income and
other
|
12
|
|
|
11
|
|
|
13
|
|
|
12
|
|
|
36
|
|
|
30
|
|
Interest expense, net
of capitalized interest
|
(93)
|
|
|
(92)
|
|
|
(93)
|
|
|
(98)
|
|
|
(278)
|
|
|
(297)
|
|
Earnings before
income taxes
|
299
|
|
|
382
|
|
|
240
|
|
|
103
|
|
|
921
|
|
|
342
|
|
Income
taxes
|
(30)
|
|
|
(65)
|
|
|
15
|
|
|
27
|
|
|
(80)
|
|
|
(31)
|
|
Net
earnings
|
$
|
269
|
|
|
$
|
317
|
|
|
$
|
255
|
|
|
$
|
130
|
|
|
$
|
841
|
|
|
$
|
311
|
|
|
|
Per Share
Information
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Earnings per share,
basic and diluted
|
$
|
0.35
|
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
|
$
|
0.17
|
|
|
$
|
1.11
|
|
|
$
|
0.41
|
|
Dividends paid per
common share
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
0.31
|
|
|
$
|
0.98
|
|
|
$
|
0.93
|
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
756,815
|
|
|
757,829
|
|
|
754,986
|
|
|
753,535
|
|
|
756,531
|
|
|
752,301
|
|
Diluted
|
759,462
|
|
|
760,533
|
|
|
757,389
|
|
|
756,903
|
|
|
759,116
|
|
|
756,058
|
|
Common shares
outstanding at end of period (in thousands)
|
756,700
|
|
|
757,646
|
|
|
749,199
|
|
|
753,051
|
|
|
749,199
|
|
|
753,051
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and Amortization
(Adjusted EBITDA)*
|
|
in
millions
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Net
earnings
|
$
|
269
|
|
|
$
|
317
|
|
|
$
|
255
|
|
|
$
|
130
|
|
|
$
|
841
|
|
|
$
|
311
|
|
Non-operating pension
and other postretirement benefit costs
|
24
|
|
|
13
|
|
|
17
|
|
|
16
|
|
|
54
|
|
|
46
|
|
Interest income and
other
|
(12)
|
|
|
(11)
|
|
|
(13)
|
|
|
(12)
|
|
|
(36)
|
|
|
(30)
|
|
Interest expense, net
of capitalized interest
|
93
|
|
|
92
|
|
|
93
|
|
|
98
|
|
|
278
|
|
|
297
|
|
Income
taxes
|
30
|
|
|
65
|
|
|
(15)
|
|
|
(27)
|
|
|
80
|
|
|
31
|
|
Operating
income
|
404
|
|
|
476
|
|
|
337
|
|
|
205
|
|
|
1,217
|
|
|
655
|
|
Depreciation,
depletion and amortization
|
120
|
|
|
119
|
|
|
122
|
|
|
132
|
|
|
361
|
|
|
394
|
|
Basis of real estate
sold
|
12
|
|
|
22
|
|
|
46
|
|
|
24
|
|
|
80
|
|
|
48
|
|
Unallocated pension
service costs
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
|
Special
items
|
8
|
|
|
20
|
|
|
—
|
|
|
207
|
|
|
28
|
|
|
429
|
|
Adjusted
EBITDA*
|
$
|
544
|
|
|
$
|
637
|
|
|
$
|
505
|
|
|
$
|
569
|
|
|
$
|
1,686
|
|
|
$
|
1,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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, 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.
|
|
|
|
Weyerhaeuser
Company
|
Total Company
Statistics
|
|
Q3.2018 Analyst
Package
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
Included in Net Earnings (Income Tax Affected)
|
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Net
earnings
|
$
|
269
|
|
|
$
|
317
|
|
|
$
|
255
|
|
|
$
|
130
|
|
|
$
|
841
|
|
|
$
|
311
|
|
Plum Creek merger and
integration-related costs
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
15
|
|
Restructuring,
impairment and other charges
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
151
|
|
Environmental
remediation charges (recoveries)
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
Countervailing and
antidumping duties charges (credits)(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
12
|
|
Product remediation
charges (recoveries), net
|
(15)
|
|
|
15
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
149
|
|
Tax
adjustments(2)
|
—
|
|
|
—
|
|
|
(41)
|
|
|
—
|
|
|
(41)
|
|
|
—
|
|
Net earnings
before special items
|
$
|
275
|
|
|
$
|
332
|
|
|
$
|
214
|
|
|
$
|
259
|
|
|
$
|
821
|
|
|
$
|
638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Net earnings per
diluted share
|
$
|
0.35
|
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
|
$
|
0.17
|
|
|
$
|
1.11
|
|
|
$
|
0.41
|
|
Plum Creek merger and
integration-related costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
Restructuring,
impairment and other charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.20
|
|
Environmental
remediation charges (recoveries)
|
0.03
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Countervailing and
antidumping duties charges (credits)(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Product remediation
charges (recoveries), net
|
(0.02)
|
|
|
0.02
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
0.20
|
|
Tax
adjustments(2)
|
—
|
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
Net earnings per
diluted share before special items
|
$
|
0.36
|
|
|
$
|
0.44
|
|
|
$
|
0.28
|
|
|
$
|
0.34
|
|
|
$
|
1.08
|
|
|
$
|
0.84
|
|
|
(1) As of
first quarter 2018, countervailing and antidumping duties are no
longer reported as a special item.
|
|
(2) During
third quarter 2018, we recorded a tax benefit related to our $300
million contribution to our U.S. qualified pension plan.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Total
Company Items
|
|
in
millions
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Pension and
postretirement costs:
|
|
|
|
|
|
|
|
|
|
|
|
Pension and
postretirement service costs
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
28
|
|
|
$
|
26
|
|
Non-operating pension
and other postretirement benefit costs
|
24
|
|
|
13
|
|
|
17
|
|
|
16
|
|
|
54
|
|
|
46
|
|
Total company
pension and postretirement costs
|
$
|
34
|
|
|
$
|
21
|
|
|
$
|
27
|
|
|
$
|
25
|
|
|
$
|
82
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
Q3.2018 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
|
|
in
millions
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
December
31, 2017
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
598
|
|
|
$
|
901
|
|
|
$
|
348
|
|
|
$
|
824
|
|
Receivables, less
discounts and allowances
|
481
|
|
|
491
|
|
|
444
|
|
|
396
|
|
Receivables for
taxes
|
24
|
|
|
23
|
|
|
140
|
|
|
14
|
|
Inventories
|
445
|
|
|
414
|
|
|
389
|
|
|
383
|
|
Prepaid expenses and
other current assets
|
118
|
|
|
146
|
|
|
140
|
|
|
98
|
|
Current restricted
financial investments held by variable interest entities
|
253
|
|
|
253
|
|
|
253
|
|
|
—
|
|
Total current
assets
|
1,919
|
|
|
2,228
|
|
|
1,714
|
|
|
1,715
|
|
Property and
equipment, net
|
1,573
|
|
|
1,597
|
|
|
1,672
|
|
|
1,618
|
|
Construction in
progress
|
275
|
|
|
282
|
|
|
255
|
|
|
225
|
|
Timber and
timberlands at cost, less depletion
|
12,888
|
|
|
12,790
|
|
|
12,727
|
|
|
12,954
|
|
Minerals and mineral
rights, less depletion
|
306
|
|
|
302
|
|
|
297
|
|
|
308
|
|
Goodwill
|
40
|
|
|
40
|
|
|
40
|
|
|
40
|
|
Deferred tax
assets
|
244
|
|
|
168
|
|
|
71
|
|
|
268
|
|
Other
assets
|
278
|
|
|
279
|
|
|
289
|
|
|
316
|
|
Restricted financial
investments held by variable interest entities
|
362
|
|
|
362
|
|
|
362
|
|
|
615
|
|
Total
assets
|
$
|
17,885
|
|
|
$
|
18,048
|
|
|
$
|
17,427
|
|
|
$
|
18,059
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
62
|
|
Current debt
(nonrecourse to the company) held by variable interest
entities
|
209
|
|
|
209
|
|
|
511
|
|
|
209
|
|
Accounts
payable
|
245
|
|
|
270
|
|
|
271
|
|
|
249
|
|
Accrued
liabilities
|
457
|
|
|
543
|
|
|
491
|
|
|
645
|
|
Total current
liabilities
|
911
|
|
|
1,022
|
|
|
1,273
|
|
|
1,165
|
|
Long-term
debt
|
5,928
|
|
|
5,924
|
|
|
5,921
|
|
|
5,930
|
|
Long-term debt
(nonrecourse to the company) held by variable interest
entities
|
302
|
|
|
302
|
|
|
—
|
|
|
302
|
|
Deferred pension and
other postretirement benefits
|
1,454
|
|
|
1,224
|
|
|
885
|
|
|
1,487
|
|
Other
liabilities
|
299
|
|
|
295
|
|
|
291
|
|
|
276
|
|
Total
liabilities
|
8,894
|
|
|
8,767
|
|
|
8,370
|
|
|
9,160
|
|
Total
equity
|
8,991
|
|
|
9,281
|
|
|
9,057
|
|
|
8,899
|
|
Total liabilities
and equity
|
$
|
17,885
|
|
|
$
|
18,048
|
|
|
$
|
17,427
|
|
|
$
|
18,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
|
Q3.2018 Analyst
Package
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
in
millions
|
Q1
|
|
Q2
|
|
Q3
|
|
Year-to-Date
|
|
March
31, 2018
|
|
June
30, 2018
|
|
September
30, 2018
|
|
September
30, 2017
|
|
September
30, 2018
|
|
September
30, 2017
|
Cash flows from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
269
|
|
|
$
|
317
|
|
|
$
|
255
|
|
|
$
|
130
|
|
|
$
|
841
|
|
|
$
|
311
|
|
Noncash charges
earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
120
|
|
|
119
|
|
|
122
|
|
|
132
|
|
|
361
|
|
|
394
|
|
Basis of real estate
sold
|
12
|
|
|
22
|
|
|
46
|
|
|
24
|
|
|
80
|
|
|
48
|
|
Deferred income
taxes, net
|
10
|
|
|
15
|
|
|
86
|
|
|
3
|
|
|
111
|
|
|
9
|
|
Pension and other
postretirement benefits
|
34
|
|
|
21
|
|
|
27
|
|
|
25
|
|
|
82
|
|
|
72
|
|
Share-based
compensation expense
|
9
|
|
|
9
|
|
|
13
|
|
|
10
|
|
|
31
|
|
|
29
|
|
Charges for
impairments of assets
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
153
|
|
Change in:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables, less
allowances
|
(83)
|
|
|
(18)
|
|
|
46
|
|
|
(35)
|
|
|
(55)
|
|
|
(113)
|
|
Receivables and
payables for taxes
|
5
|
|
|
10
|
|
|
(124)
|
|
|
(63)
|
|
|
(109)
|
|
|
(116)
|
|
Inventories
|
(66)
|
|
|
30
|
|
|
27
|
|
|
11
|
|
|
(9)
|
|
|
4
|
|
Prepaid
expenses
|
(5)
|
|
|
4
|
|
|
(6)
|
|
|
4
|
|
|
(7)
|
|
|
(9)
|
|
Accounts payable and
accrued liabilities
|
(173)
|
|
|
103
|
|
|
(63)
|
|
|
129
|
|
|
(133)
|
|
|
184
|
|
Pension and
postretirement benefit contributions and payments
|
(16)
|
|
|
(16)
|
|
|
(323)
|
|
|
(22)
|
|
|
(355)
|
|
|
(59)
|
|
Other
|
19
|
|
|
(19)
|
|
|
(19)
|
|
|
(31)
|
|
|
(19)
|
|
|
(60)
|
|
Net cash from
operations
|
$
|
136
|
|
|
$
|
597
|
|
|
$
|
87
|
|
|
$
|
323
|
|
|
$
|
820
|
|
|
$
|
847
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
for property and equipment
|
$
|
(61)
|
|
|
$
|
(83)
|
|
|
$
|
(94)
|
|
|
$
|
(87)
|
|
|
$
|
(238)
|
|
|
$
|
(213)
|
|
Capital expenditures
for timberlands reforestation
|
(20)
|
|
|
(14)
|
|
|
(11)
|
|
|
(10)
|
|
|
(45)
|
|
|
(46)
|
|
Proceeds from sale of
assets and operations
|
2
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|
2
|
|
|
423
|
|
Other
|
3
|
|
|
24
|
|
|
(10)
|
|
|
(16)
|
|
|
17
|
|
|
28
|
|
Cash from (used
in) investing activities
|
$
|
(76)
|
|
|
$
|
(73)
|
|
|
$
|
(115)
|
|
|
$
|
298
|
|
|
$
|
(264)
|
|
|
$
|
192
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends on
common shares
|
$
|
(242)
|
|
|
$
|
(243)
|
|
|
$
|
(256)
|
|
|
$
|
(233)
|
|
|
$
|
(741)
|
|
|
$
|
(699)
|
|
Proceeds from
issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
225
|
|
Payments of long-term
debt
|
(62)
|
|
|
—
|
|
|
—
|
|
|
(831)
|
|
|
(62)
|
|
|
(831)
|
|
Proceeds from
borrowing on line of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
Payments on line of
credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(100)
|
|
|
—
|
|
|
(100)
|
|
Proceeds from
exercise of stock options
|
25
|
|
|
23
|
|
|
4
|
|
|
8
|
|
|
52
|
|
|
89
|
|
Repurchases of common
shares
|
—
|
|
|
—
|
|
|
(273)
|
|
|
—
|
|
|
(273)
|
|
|
—
|
|
Other
|
(7)
|
|
|
(1)
|
|
|
—
|
|
|
6
|
|
|
(8)
|
|
|
(2)
|
|
Cash used in
financing activities
|
$
|
(286)
|
|
|
$
|
(221)
|
|
|
$
|
(525)
|
|
|
$
|
(825)
|
|
|
$
|
(1,032)
|
|
|
$
|
(1,218)
|
|
Net change in cash
and cash equivalents
|
$
|
(226)
|
|
|
$
|
303
|
|
|
$
|
(553)
|
|
|
$
|
(204)
|
|
|
$
|
(476)
|
|
|
$
|
(179)
|
|
Cash and cash
equivalents at beginning of period
|
824
|
|
|
598
|
|
|
901
|
|
|
701
|
|
|
824
|
|
|
676
|
|
Cash and cash
equivalents at end of period
|
$
|
598
|
|
|
$
|
901
|
|
|
$
|
348
|
|
|
$
|
497
|
|
|
$
|
348
|
|
|
$
|
497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net of
amount capitalized
|
$
|
105
|
|
|
$
|
67
|
|
|
$
|
113
|
|
|
$
|
123
|
|
|
$
|
285
|
|
|
$
|
315
|
|
Income
taxes
|
$
|
17
|
|
|
$
|
41
|
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
80
|
|
|
$
|
129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
Timberlands
Segment
|
|
|
Q3.2018 Analyst
Package
|
|
|
|
Preliminary results
(unaudited)
|
|
|
Segment Statement
of Operations
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Sales to unaffiliated
customers
|
$
|
505
|
|
|
$
|
482
|
|
|
$
|
468
|
|
|
$
|
491
|
|
|
$
|
1,455
|
|
|
$
|
1,446
|
|
|
Intersegment
sales
|
228
|
|
|
185
|
|
|
185
|
|
|
179
|
|
|
598
|
|
|
544
|
|
|
Total net
sales
|
733
|
|
|
667
|
|
|
653
|
|
|
670
|
|
|
2,053
|
|
|
1,990
|
|
|
Cost of products
sold
|
526
|
|
|
485
|
|
|
505
|
|
|
517
|
|
|
1,516
|
|
|
1,512
|
|
|
Gross
margin
|
207
|
|
|
182
|
|
|
148
|
|
|
153
|
|
|
537
|
|
|
478
|
|
|
Selling
expenses
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
General and
administrative expenses
|
23
|
|
|
25
|
|
|
23
|
|
|
24
|
|
|
71
|
|
|
71
|
|
|
Research and
development expenses
|
2
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
5
|
|
|
10
|
|
|
Charges for
integration and restructuring, closures and asset
impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
Other operating costs
(income), net
|
(8)
|
|
|
(5)
|
|
|
(4)
|
|
|
(6)
|
|
|
(17)
|
|
|
(20)
|
|
|
Operating income
and Net contribution to earnings
|
$
|
189
|
|
|
$
|
161
|
|
|
$
|
126
|
|
|
$
|
131
|
|
|
$
|
476
|
|
|
$
|
267
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Operating
income
|
$
|
189
|
|
|
$
|
161
|
|
|
$
|
126
|
|
|
$
|
131
|
|
|
$
|
476
|
|
|
$
|
267
|
|
|
Depreciation,
depletion and amortization
|
79
|
|
|
79
|
|
|
80
|
|
|
89
|
|
|
238
|
|
|
270
|
|
|
Special
items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
Adjusted
EBITDA*
|
$
|
268
|
|
|
$
|
240
|
|
|
$
|
206
|
|
|
$
|
220
|
|
|
$
|
714
|
|
|
$
|
684
|
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
|
|
|
|
|
|
|
Segment Special
Items Included in Net Contribution to Earnings
(Pre-Tax)
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Restructuring,
impairment and other charges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(147)
|
|
|
|
|
|
|
Selected Segment
Items
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Total decrease
(increase) in working capital(1)
|
$
|
(40)
|
|
|
$
|
70
|
|
|
$
|
(32)
|
|
|
$
|
(3)
|
|
|
$
|
(2)
|
|
|
$
|
(45)
|
|
|
Cash spent for
capital expenditures
|
$
|
(28)
|
|
|
$
|
(29)
|
|
|
$
|
(25)
|
|
|
$
|
(24)
|
|
|
$
|
(82)
|
|
|
$
|
(79)
|
|
|
(1)
Represents the change in prepaid assets, accounts receivable,
accounts payable, accrued liabilities and log inventory for the
Timberlands and Real Estate & ENR segments combined.
|
|
|
|
|
|
Segment
Statistics(2)(3)
|
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Third Party
Net Sales
(millions)
|
Delivered
logs:
|
|
|
|
|
|
|
|
|
|
|
|
|
West
|
$
|
266
|
|
|
$
|
262
|
|
|
$
|
238
|
|
|
$
|
221
|
|
|
$
|
766
|
|
|
$
|
673
|
|
|
South
|
157
|
|
|
158
|
|
|
157
|
|
|
155
|
|
|
472
|
|
|
451
|
|
|
North
|
25
|
|
|
20
|
|
|
25
|
|
|
25
|
|
|
70
|
|
|
68
|
|
|
Other
|
14
|
|
|
7
|
|
|
9
|
|
|
17
|
|
|
30
|
|
|
48
|
|
|
Total delivered
logs
|
462
|
|
|
447
|
|
|
429
|
|
|
418
|
|
|
1,338
|
|
|
1,240
|
|
|
Stumpage and
pay-as-cut timber
|
15
|
|
|
11
|
|
|
13
|
|
|
23
|
|
|
39
|
|
|
52
|
|
|
Products from
international operations
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
63
|
|
|
Recreational and
other lease revenue
|
14
|
|
|
15
|
|
|
15
|
|
|
16
|
|
|
44
|
|
|
45
|
|
|
Other
revenue
|
14
|
|
|
9
|
|
|
11
|
|
|
11
|
|
|
34
|
|
|
46
|
|
|
Total
|
$
|
505
|
|
|
$
|
482
|
|
|
$
|
468
|
|
|
$
|
491
|
|
|
$
|
1,455
|
|
|
$
|
1,446
|
|
|
Delivered
Logs
Third Party
Sales
Realizations (per
ton)
|
West
|
$
|
131.59
|
|
|
$
|
132.24
|
|
|
$
|
125.67
|
|
|
$
|
116.03
|
|
|
$
|
129.91
|
|
|
$
|
108.43
|
|
|
South
|
$
|
34.83
|
|
|
$
|
34.55
|
|
|
$
|
34.88
|
|
|
$
|
34.24
|
|
|
$
|
34.75
|
|
|
$
|
34.40
|
|
|
North
|
$
|
60.79
|
|
|
$
|
64.92
|
|
|
$
|
60.97
|
|
|
$
|
59.02
|
|
|
$
|
62.00
|
|
|
$
|
60.24
|
|
|
Delivered
Logs
Third Party
Sales
Volumes
(tons,
thousands)
|
West
|
2,019
|
|
|
1,984
|
|
|
1,897
|
|
|
1,910
|
|
|
5,900
|
|
|
6,210
|
|
|
South
|
4,510
|
|
|
4,560
|
|
|
4,521
|
|
|
4,527
|
|
|
13,591
|
|
|
13,105
|
|
|
North
|
404
|
|
|
313
|
|
|
414
|
|
|
428
|
|
|
1,131
|
|
|
1,135
|
|
|
Other
|
317
|
|
|
81
|
|
|
154
|
|
|
424
|
|
|
552
|
|
|
1,226
|
|
|
Fee Harvest
Volumes
(tons,
thousands)
|
West
|
2,443
|
|
|
2,360
|
|
|
2,305
|
|
|
2,230
|
|
|
7,108
|
|
|
7,539
|
|
|
South
|
6,751
|
|
|
6,630
|
|
|
6,478
|
|
|
6,953
|
|
|
19,859
|
|
|
19,799
|
|
|
North
|
549
|
|
|
423
|
|
|
537
|
|
|
565
|
|
|
1,509
|
|
|
1,570
|
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
569
|
|
|
—
|
|
|
1,384
|
|
|
|
|
(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 (our
management agreement for the Twin Creeks Venture began in April
2016 and terminated in December 2017).
|
|
|
(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
|
|
|
Q3.2018 Analyst
Package
|
|
Resources
Segment
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
|
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Net
sales
|
$
|
51
|
|
|
$
|
58
|
|
|
$
|
96
|
|
|
$
|
82
|
|
|
$
|
205
|
|
|
$
|
181
|
|
|
Cost of products
sold
|
19
|
|
|
30
|
|
|
54
|
|
|
31
|
|
|
103
|
|
|
67
|
|
|
Gross
margin
|
32
|
|
|
28
|
|
|
42
|
|
|
51
|
|
|
102
|
|
|
114
|
|
|
General and
administrative expenses
|
7
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
19
|
|
|
20
|
|
|
Other operating costs
(income), net
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
Operating
income
|
25
|
|
|
22
|
|
|
36
|
|
|
46
|
|
|
83
|
|
|
95
|
|
|
Interest income and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Operating income
and net contribution to earnings
|
$
|
25
|
|
|
$
|
22
|
|
|
$
|
36
|
|
|
$
|
47
|
|
|
$
|
83
|
|
|
$
|
96
|
|
|
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Operating
income
|
$
|
25
|
|
|
$
|
22
|
|
|
$
|
36
|
|
|
$
|
46
|
|
|
$
|
83
|
|
|
$
|
95
|
|
|
Depreciation,
depletion and amortization
|
4
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
11
|
|
|
11
|
|
|
Basis of real estate
sold
|
12
|
|
|
22
|
|
|
46
|
|
|
24
|
|
|
80
|
|
|
48
|
|
|
Adjusted
EBITDA*
|
$
|
41
|
|
|
$
|
47
|
|
|
$
|
86
|
|
|
$
|
74
|
|
|
$
|
174
|
|
|
$
|
154
|
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
|
|
|
|
|
|
|
Selected Segment
Items
|
|
|
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Cash spent for
capital expenditures
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
(2)
|
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
|
Net Sales
(millions)
|
Real
Estate
|
$
|
34
|
|
|
$
|
38
|
|
|
$
|
76
|
|
|
$
|
64
|
|
|
$
|
148
|
|
|
$
|
128
|
|
|
Energy and Natural
Resources
|
17
|
|
|
20
|
|
|
20
|
|
|
18
|
|
|
57
|
|
|
53
|
|
|
Total
|
$
|
51
|
|
|
$
|
58
|
|
|
$
|
96
|
|
|
$
|
82
|
|
|
$
|
205
|
|
|
$
|
181
|
|
|
Acres Sold
|
Real
Estate
|
21,771
|
|
|
16,290
|
|
|
61,681
|
|
|
35,749
|
|
|
99,742
|
|
|
59,009
|
|
|
Price per
Acre
|
Real
Estate
|
$
|
1,539
|
|
|
$
|
2,258
|
|
|
$
|
1,209
|
|
|
$
|
1,784
|
|
|
$
|
1,452
|
|
|
$
|
2,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weyerhaeuser
Company
|
|
|
|
Wood Products
Segment
|
|
Q3.2018 Analyst
Package
|
|
|
Preliminary results
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Statement
of Operations
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Net
sales
|
$
|
1,309
|
|
|
$
|
1,525
|
|
|
$
|
1,346
|
|
|
$
|
1,299
|
|
|
$
|
4,180
|
|
|
$
|
3,746
|
|
Cost of products
sold
|
1,005
|
|
|
1,119
|
|
|
1,071
|
|
|
1,005
|
|
|
3,195
|
|
|
2,933
|
|
Gross
margin
|
304
|
|
|
406
|
|
|
275
|
|
|
294
|
|
|
985
|
|
|
813
|
|
Selling
expenses
|
21
|
|
|
22
|
|
|
18
|
|
|
20
|
|
|
61
|
|
|
60
|
|
General and
administrative expenses
|
34
|
|
|
31
|
|
|
32
|
|
|
30
|
|
|
97
|
|
|
94
|
|
Research and
development expenses
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Charges for
integration and restructuring, closures and asset
impairments
|
2
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
2
|
|
|
11
|
|
Charges (recoveries)
for product remediation, net
|
(20)
|
|
|
20
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
240
|
|
Other operating costs
(income), net
|
(3)
|
|
|
3
|
|
|
12
|
|
|
5
|
|
|
12
|
|
|
17
|
|
Operating income
and Net contribution to earnings
|
$
|
270
|
|
|
$
|
329
|
|
|
$
|
213
|
|
|
$
|
40
|
|
|
$
|
812
|
|
|
$
|
389
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Operating
income
|
$
|
270
|
|
|
$
|
329
|
|
|
$
|
213
|
|
|
$
|
40
|
|
|
$
|
812
|
|
|
$
|
389
|
|
Depreciation,
depletion and amortization
|
36
|
|
|
36
|
|
|
37
|
|
|
37
|
|
|
109
|
|
|
108
|
|
Special
items
|
(20)
|
|
|
20
|
|
|
—
|
|
|
201
|
|
|
—
|
|
|
262
|
|
Adjusted
EBITDA*
|
$
|
286
|
|
|
$
|
385
|
|
|
$
|
250
|
|
|
$
|
278
|
|
|
$
|
921
|
|
|
$
|
759
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
|
|
|
|
Segment Special
Items Included in Net Contribution to Earnings
(Pre-Tax)
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Countervailing and
antidumping duties (charges) credits(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5)
|
|
|
$
|
—
|
|
|
$
|
(16)
|
|
Restructuring,
impairments, and other charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(6)
|
|
Product remediation
(charges) recoveries, net
|
20
|
|
|
(20)
|
|
|
—
|
|
|
(190)
|
|
|
—
|
|
|
(240)
|
|
Total
|
$
|
20
|
|
|
$
|
(20)
|
|
|
$
|
—
|
|
|
$
|
(201)
|
|
|
$
|
—
|
|
|
$
|
(262)
|
|
(1) As of
first quarter 2018, countervailing and antidumping duties are no
longer reported as a special item.
|
|
|
Selected Segment
Items
|
in
millions
|
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Total decrease
(increase) in working capital(2)
|
$
|
(226)
|
|
|
$
|
3
|
|
|
$
|
71
|
|
|
$
|
150
|
|
|
$
|
(152)
|
|
|
$
|
141
|
|
Cash spent for
capital expenditures
|
$
|
(52)
|
|
|
$
|
(68)
|
|
|
$
|
(79)
|
|
|
$
|
(71)
|
|
|
$
|
(199)
|
|
|
$
|
(176)
|
|
(2)
Represents the change in prepaid assets, accounts receivable,
accounts payable, accrued liabilities and inventory for the Wood
Products segment.
|
|
|
Segment
Statistics
|
in millions, except
for third party sales realizations
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Structural Lumber
(volumes
presented
in board
feet)
|
Third party net
sales
|
$
|
569
|
|
|
$
|
681
|
|
|
$
|
581
|
|
|
$
|
525
|
|
|
$
|
1,831
|
|
|
$
|
1,541
|
|
Third party sales
realizations
|
$
|
498
|
|
|
$
|
541
|
|
|
$
|
491
|
|
|
$
|
448
|
|
|
$
|
511
|
|
|
$
|
434
|
|
Third party sales
volumes(3)
|
1,140
|
|
|
1,261
|
|
|
1,184
|
|
|
1,172
|
|
|
3,585
|
|
|
3,548
|
|
Production
volumes
|
1,160
|
|
|
1,180
|
|
|
1,106
|
|
|
1,093
|
|
|
3,446
|
|
|
3,391
|
|
Engineered
Solid
Section
(volumes
presented
in cubic
feet)
|
Third party net
sales
|
$
|
129
|
|
|
$
|
139
|
|
|
$
|
132
|
|
|
$
|
131
|
|
|
$
|
400
|
|
|
$
|
378
|
|
Third party sales
realizations
|
$
|
2,088
|
|
|
$
|
2,156
|
|
|
$
|
2,208
|
|
|
$
|
2,047
|
|
|
$
|
2,150
|
|
|
$
|
1,970
|
|
Third party sales
volumes(3)
|
6.2
|
|
|
6.4
|
|
|
6.0
|
|
|
6.4
|
|
|
18.6
|
|
|
19.2
|
|
Production
volumes
|
6.3
|
|
|
6.4
|
|
|
6.3
|
|
|
6.4
|
|
|
19.0
|
|
|
19.3
|
|
Engineered
I-joists
(volumes
presented
in lineal
feet)
|
Third party net
sales
|
$
|
78
|
|
|
$
|
92
|
|
|
$
|
91
|
|
|
$
|
93
|
|
|
$
|
261
|
|
|
$
|
251
|
|
Third party sales
realizations
|
$
|
1,585
|
|
|
$
|
1,630
|
|
|
$
|
1,668
|
|
|
$
|
1,529
|
|
|
$
|
1,629
|
|
|
$
|
1,512
|
|
Third party sales
volumes(3)
|
49
|
|
|
57
|
|
|
54
|
|
|
60
|
|
|
160
|
|
|
166
|
|
Production
volumes
|
56
|
|
|
52
|
|
|
46
|
|
|
58
|
|
|
154
|
|
|
161
|
|
Oriented
Strand
Board
(volumes
presented
in square feet
3/8")
|
Third party net
sales
|
$
|
232
|
|
|
$
|
277
|
|
|
$
|
215
|
|
|
$
|
243
|
|
|
$
|
724
|
|
|
$
|
671
|
|
Third party sales
realizations
|
$
|
314
|
|
|
$
|
367
|
|
|
$
|
321
|
|
|
$
|
328
|
|
|
$
|
335
|
|
|
$
|
295
|
|
Third party sales
volumes(3)
|
739
|
|
|
754
|
|
|
669
|
|
|
741
|
|
|
2,162
|
|
|
2,274
|
|
Production
volumes
|
734
|
|
|
747
|
|
|
665
|
|
|
744
|
|
|
2,146
|
|
|
2,256
|
|
Softwood Plywood
(volumes
presented
in square feet
3/8")
|
Third party net
sales
|
$
|
50
|
|
|
$
|
55
|
|
|
$
|
53
|
|
|
$
|
45
|
|
|
$
|
158
|
|
|
$
|
136
|
|
Third party sales
realizations
|
$
|
438
|
|
|
$
|
461
|
|
|
$
|
439
|
|
|
$
|
386
|
|
|
$
|
446
|
|
|
$
|
381
|
|
Third party sales
volumes(3)
|
115
|
|
|
118
|
|
|
122
|
|
|
117
|
|
|
355
|
|
|
358
|
|
Production
volumes
|
97
|
|
|
105
|
|
|
106
|
|
|
88
|
|
|
308
|
|
|
284
|
|
Medium
Density
Fiberboard
(volumes
presented
in square feet
3/4")
|
Third party net
sales
|
$
|
43
|
|
|
$
|
47
|
|
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
138
|
|
|
$
|
146
|
|
Third party sales
realizations
|
$
|
839
|
|
|
$
|
839
|
|
|
$
|
828
|
|
|
$
|
821
|
|
|
$
|
835
|
|
|
$
|
820
|
|
Third party sales
volumes(3)
|
51
|
|
|
55
|
|
|
59
|
|
|
58
|
|
|
165
|
|
|
177
|
|
Production
volumes
|
50
|
|
|
57
|
|
|
61
|
|
|
63
|
|
|
168
|
|
|
182
|
|
(3)
Volumes include sales of internally produced products and products
purchased for resale primarily through our distribution
business.
|
|
|
|
Weyerhaeuser
Company
|
|
Unallocated
Items
|
|
Q3.2018 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 expense, pension and postretirement costs,
foreign exchange transaction gains and losses and the elimination
of intersegment profit in inventory and LIFO.
|
|
Contribution to
Earnings
|
|
in
millions
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Unallocated corporate
function and variable compensation expense
|
$
|
(18)
|
|
|
$
|
(19)
|
|
|
$
|
(19)
|
|
|
$
|
(19)
|
|
|
$
|
(56)
|
|
|
$
|
(55)
|
|
Liability classified
share-based compensation
|
—
|
|
|
(2)
|
|
|
4
|
|
|
(1)
|
|
|
2
|
|
|
(7)
|
|
Foreign exchange
gains (losses)
|
(2)
|
|
|
2
|
|
|
(2)
|
|
|
3
|
|
|
(2)
|
|
|
—
|
|
Elimination of
intersegment profit in inventory and LIFO
|
(21)
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
(18)
|
|
|
(6)
|
|
Charges for
integration and restructuring, closures and asset
impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(20)
|
|
Other
|
(39)
|
|
|
(20)
|
|
|
(21)
|
|
|
8
|
|
|
(80)
|
|
|
(8)
|
|
Operating income
(loss)
|
(80)
|
|
|
(36)
|
|
|
(38)
|
|
|
(12)
|
|
|
(154)
|
|
|
(96)
|
|
Non-operating pension
and other postretirement benefit (costs) credits
|
(24)
|
|
|
(13)
|
|
|
(17)
|
|
|
(16)
|
|
|
(54)
|
|
|
(46)
|
|
Interest income and
other
|
12
|
|
|
11
|
|
|
13
|
|
|
11
|
|
|
36
|
|
|
29
|
|
Net contribution
to earnings
|
$
|
(92)
|
|
|
$
|
(38)
|
|
|
$
|
(42)
|
|
|
$
|
(17)
|
|
|
$
|
(172)
|
|
|
$
|
(113)
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization*
|
|
in
millions
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Operating income
(loss)
|
$
|
(80)
|
|
|
$
|
(36)
|
|
|
$
|
(38)
|
|
|
$
|
(12)
|
|
|
$
|
(154)
|
|
|
$
|
(96)
|
|
Depreciation,
depletion and amortization
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
5
|
|
Unallocated pension
service costs
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
|
Special
items
|
28
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
28
|
|
|
20
|
|
Adjusted
EBITDA*
|
$
|
(51)
|
|
|
$
|
(35)
|
|
|
$
|
(37)
|
|
|
$
|
(3)
|
|
|
$
|
(123)
|
|
|
$
|
(68)
|
|
*See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Special Items Included in Net Contribution to Earnings
(Pre-Tax)
|
|
in
millions
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Plum Creek merger and
integration-related costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(6)
|
|
|
$
|
—
|
|
|
$
|
(20)
|
|
Environmental
remediation insurance (charges) recoveries
|
(28)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28)
|
|
|
—
|
|
Total
|
$
|
(28)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(6)
|
|
|
$
|
(28)
|
|
|
$
|
(20)
|
|
|
|
Unallocated
Selected Items
|
|
in
millions
|
Q1.2018
|
|
Q2.2018
|
|
Q3.2018
|
|
Q3.2017
|
|
YTD.2018
|
|
YTD.2017
|
Cash spent for
capital expenditures
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
(1)
|
|
|
$
|
(1)
|
|
|
$
|
(2)
|
|
|
$
|
(2)
|
|
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SOURCE Weyerhaeuser Company