Weyerhaeuser Reports Fourth Quarter, Full Year Results - Full year 2013 net earnings before special items doubled compared with 2012 on 21 percent improvement in net sales

- Entered into agreement to combine Weyerhaeuser's homebuilding subsidiary with TRI Pointe Homes

- Acquired Longview Timber LLC

FEDERAL WAY, Wash., Jan. 31, 2014 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported full year 2013 net earnings of $540 million, or 95 cents per diluted share, on net sales of $8.5 billion. This compares with net earnings of $385 million, or 71 cents per diluted share, on net sales of $7.1 billion for the full year 2012.

(Logo:  http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)

Earnings for 2013 include after-tax charges of $114 million for special items, primarily for a previously announced real estate impairment that was partially offset by unrelated tax adjustments. Excluding these items, the company reported full year 2013 net earnings of $654 million, or $1.14 per diluted share, compared with net earnings before special items of $316 million, or 58 cents per diluted share, for the full year 2012.

SIGNIFICANT FULL YEAR 2013 AND 2012 ITEMS


FULL YEAR 2013

FULL YEAR 2012

(millions, except per share data)

Pre-Tax

After-Tax

Per Share

Pre-Tax

After-Tax

Per Share

Restructuring, impairments and other charges(1)

($366)

($247)

($0.42)

($14)

($10)

($0.02)

Tax adjustments

$168

$0.30

$8

$0.02

Loss on early extinguishment of debt

($25)

($25)

($0.05)

Costs related to Real Estate divestiture(2)

($15)

($10)

($0.02)

Gain on postretirement plan amendment

$103

$67

$0.12

Gain on sale of properties

$6

$4

$0.01



(1) 

 2013 charges include non-cash impairments in the Real Estate, Unallocated and Wood Products segments.

(2)  

Charges are included in the Real Estate and Unallocated segments.

"Our vision is to grow a truly great company for our shareholders, customers and employees. In 2013, we made initial progress toward this goal, as we doubled earnings before special items, increased our per share dividend by nearly 30 percent, announced an agreement to combine our real estate operation with TRI Pointe Homes, and acquired approximately 645,000 acres of outstanding timberlands in the Pacific Northwest through the purchase of Longview Timber," said Doyle Simons, president and chief executive officer. "As 2014 begins, we are relentlessly focused on driving operational excellence to fully capitalize on improving markets and deliver value to our shareholders."

For the fourth quarter of 2013, Weyerhaeuser reported net earnings before special items of $157 million, or 27 cents per diluted share, on net sales of $2.3 billion. Including after-tax charges of $114 million for special items, the company reported net earnings of $43 million, or 7 cents per diluted share. This compares with net earnings of $143 million, or 26 cents per diluted share, on net sales of $2.0 billion for the same period last year.

WEYERHAEUSER FINANCIAL HIGHLIGHTS


3Q

4Q

4Q

FULL YEAR

(millions, except per share data)

2013

2013

2012

2013

2012

Net sales

$2,181

$2,256

$2,000

$8,529

$7,059

Net earnings

$157

$43

$143

$540

$385

Weighted average shares outstanding, diluted(1)

587

589

547

571

542

Earnings per diluted share

$0.27

$0.07

$0.26

$0.95

$0.71

Net earnings before special items

$157

$157

$143

$654

$316

Earnings per diluted share before special items

$0.27

$0.27

$0.26

$1.14

$0.58

Net cash from operations

$343

$348

$252

$1,004

$581

Net change in cash and cash equivalents(2)

($965)

($562)

$290

($63)

($55)

Cash and cash equivalents at end of period(2)

$1,397

$835

$898

$835

$898


(1)  Weyerhaeuser's common shares outstanding increased during the second and third quarters of 2013 following the issuance of approximately 33 million common shares in conjunction with the acquisition of Longview Timber LLC.


(2)  During the second, third and fourth quarters of 2013, Weyerhaeuser received $2,610 million from the issuance of debt and common and mandatory convertible preference shares related to the acquisition of Longview Timber LLC. These funds were recorded upon receipt as "Cash and cash equivalents designated for purchase of Longview Timber LLC and the repayment of their acquired debt" on the Consolidated Balance Sheet. During the third quarter of 2013, the company used a portion of these funds to complete the acquisition of Longview Timber LLC. During the fourth quarter, the company used the remaining funds for repayment of Longview Timber indebtedness assumed in the acquisition.


TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

3Q 2013

4Q 2013

Change

Net sales

$353

$364

$11

Contribution to pre-tax earnings

$118

$134

$16

4Q 2013 Performance – Construction markets in China drove increased demand and selling prices for Western logs. Western fee harvest volumes rose due to this increased demand and a full quarter of harvest from the Longview Timber acquisition. Weyerhaeuser's average log price realizations were comparable to third quarter due to a shift in export mix and a greater proportion of domestic volume. These factors were partially offset by seasonally higher road and silviculture costs. Earnings from disposition of non-strategic timberlands decreased $3 million to $20 million in the fourth quarter.

1Q 2014 Outlook – Excluding dispositions of non-strategic timberlands, Weyerhaeuser anticipates significantly higher earnings from the Timberlands segment in the first quarter. In the West, the company anticipates improved selling prices and volumes due to increasing export demand, and road and silviculture costs should decline seasonally. In the South, the company anticipates seasonally lower fee harvest volumes and higher silviculture costs, partially offset by slightly higher pulpwood realizations. First quarter earnings from dispositions of non-strategic timberlands are expected to be minimal.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

3Q 2013

4Q 2013

Change

Net sales

$1,030

$926

($104)

Contribution to pre-tax earnings before special items

$79

$58

($21)

Pre-tax charge for special items

(10)

(10)

GAAP contribution to pre-tax earnings

$79

$48

($31)





4Q 2013 Performance – Sales volumes declined across all product lines due to seasonality and unusually severe winter weather. Seasonally lower oriented strand board prices were offset by higher average selling prices for lumber and engineered wood products. Log costs increased, primarily in the West, and production fell due to seasonally lower demand, severe cold weather, and planned downtime for capital projects.

Special items for the fourth quarter include non-cash impairment charges of $10 million related to the permanent closure of previously curtailed engineered wood products operations.

1Q 2014 Outlook – Weyerhaeuser anticipates higher earnings from the Wood Products segment in the first quarter. The company expects higher average selling prices for lumber, seasonally higher sales volumes across most product lines and improved operating rates, partially offset by higher log costs and the effect of abnormally adverse weather.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

3Q 2013

4Q 2013

Change

Net sales

$474

$478

$4

Contribution to pre-tax earnings

$47

$65

$18

4Q 2013 Performance – Average selling prices for pulp improved, maintenance expense declined and productivity increased due to fewer days of scheduled annual maintenance outages. These factors were partially offset by higher fiber costs and lower liquid packing board realizations due to mix.

1Q 2014 Outlook – Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates slightly lower pulp sales volumes, increased maintenance expense and higher fiber and labor costs, partially offset by improved liquid packaging board realizations due to mix.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

3Q 2013

4Q 2013

Change

Net sales

$324

$488

$164

Contribution to pre-tax earnings before special items

$33

$71

$38

Pre-tax charge for special items

(349)

(349)

GAAP contribution (charge) to pre-tax earnings

$33

($278)

($311)





4Q 2013 Performance – Earnings before special items increased significantly compared with the third quarter due to seasonally higher closing volumes, increased average closing prices, and improved margins. Home closings increased to 1,072 single-family homes, and average margins on homes closed improved to 23 percent. Selling costs increased due to the additional closing volume. Fourth quarter results include earnings of $7 million from land and lot sales, compared with earnings of $9 million in the third quarter.

At the end of the fourth quarter the backlog of homes sold, but not closed, totaled 883 units, compared with 774 units one year ago.

Fourth quarter special items include previously announced non-cash impairment charges of $343 million for a large master-planned community north of Las Vegas, Nevada that is excluded from the combination of Weyerhaeuser Real Estate Company (WRECO) and TRI Pointe Homes, and $6 million for other costs related to the WRECO divestiture.

1Q 2014 Outlook –- Weyerhaeuser anticipates a modest profit from single family homebuilding operations in the first quarter. Home closings should decline seasonally to approximately 600 homes. The company expects higher average closing prices, lower margins due to mix, and lower selling expenses due to the reduced closing volume.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage another 14 million acres under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2013, we generated $8.5 billion in sales and employed approximately 13,700 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 Jan. 31 to discuss fourth quarter results.

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

To join the conference call from within North America, dial 877-296-9413 (access code – 23989376) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 23989376). Replays will be available for one week at 855-859-2056 (access code – 23989376) from within North America and at 404-537-3406 (access code – 23989376) from outside North America.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news release.

Some forward-looking statements discuss the company's plans, strategies and intentions. They use words such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans." In addition, these words may use the positive or negative or other variations of those terms.

This release contains forward-looking statements regarding the company's expectations during the first quarter of 2014, including selling prices and realizations for domestic and export logs, fee harvest volumes, road and silviculture costs, and earnings from the Timberlands segment; sales volumes, prices and realizations for products within the Wood Products segment, operating rates, raw material costs, and earnings from the Wood Products segment; maintenance expenses within the Cellulose Fibers segment, volumes and realizations for pulp, fiber and labor costs, product mix, and earnings from the Cellulose Fibers segment; and home closings and average closing prices, margins and product mix, selling expenses, and profit from single-family homebuilding in the Real Estate segment.

Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:

  • the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar;
  • market demand for the company's products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
  • performance of the company's manufacturing operations, including maintenance requirements;
  • the level of competition from domestic and foreign producers;
  • raw material 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 internal performance plans, including restructurings and cost reduction initiatives;
  • transportation costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation;
  • changes in accounting principles;
  • the ability to complete the transaction relating to our homebuilding and real estate development business (WRECO) with TRI Pointe Homes, Inc. on the anticipated terms and schedule, including the ability of TRI Pointe to obtain shareholder and regulatory approvals and the anticipated tax treatment of the transactions and related transactions; and
  • other factors described under "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q.

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

For more information contact:
Analysts - Kathryn McAuley (253) 924-2058
Media - Anthony Chavez (253) 924-7148

 









Weyerhaeuser Company



Exhibit 99.2

Q4.2013 Analyst Package

Preliminary results, subject to audit




Consolidated Statement of Operations















in millions

Q1


Q2


Q3


Q4


Year-to-date



Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Net sales and revenues

$ 1,951


$ 2,141


$ 2,181


$ 2,256


$ 2,000


$ 8,529


$ 7,059

Cost of products sold

1,533


1,664


1,728


1,784


1,580


6,709


5,810

Gross margin

418


477


453


472


420


1,820


1,249

Selling expenses

51


54


56


59


56


220


194

General and administrative expenses

118


108


112


117


126


455


436

Research and development expenses

7


8


8


10


9


33


32

Charges for restructuring, closures and impairments

4


6


2


378


6


390


32

Other operating costs (income), net

(18)


(10)


(2)


5


(33)


(25)


(180)

Operating income (loss)

256


311


277


(97)


256


747


735

Interest income and other

11


10


21


16


14


58


52

Interest expense, net of capitalized interest

(82)


(81)


(95)


(113)


(88)


(371)


(348)

Earnings (loss) from operations before income taxes

185


240


203


(194)


182


434


439

Income taxes

(41)


(42)


(36)


248


(40)


129


(55)

Net earnings

144


198


167


54


142


563


384

Net loss attributable to noncontrolling interests





1



1

Net earnings attributable to Weyerhaeuser

144


198


167


54


143


563


385

Dividends on preference shares


(2)


(10)


(11)



(23)


Net earnings attributable to Weyerhaeuser common shareholders

$     144


$     196


$     157


$       43


$     143


$     540


$     385


Per Share Information


in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Basic earnings per share attributable to Weyerhaeuser common shareholders

$     0.26


$     0.35


$     0.27


$     0.07


$     0.26


$     0.95


$     0.71

Diluted earnings per share attributable to Weyerhaeuser common shareholders

$     0.26


$     0.35


$     0.27


$     0.07


$     0.26


$     0.95


$     0.71

Dividends paid per common share

$     0.17


$     0.20


$     0.22


$     0.22


$     0.17


$     0.81


$     0.62

Weighted average shares outstanding (in thousands):














Basic

545,234


552,855


582,828


583,610


542,101


566,329


539,140

Diluted

550,785


557,588


587,179


588,616


547,137


571,239


542,310

Common shares outstanding at end of period (in thousands)

546,573


577,874


582,578


583,548


542,393


583,548


542,393















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Net earnings

$      144


$      198


$      167


$        54


$      142


$      563


$      384

Interest income and other

(11)


(10)


(21)


(16)


(14)


(58)


(52)

Interest expense, net of capitalized interest

82


81


95


113


88


371


348

Income taxes

41


42


36


(248)


40


(129)


55

Operating income

256


311


277


(97)


256


747


735

Depreciation, depletion and amortization

112


111


120


129


118


472


456

Non-operating pension and postretirement costs

10


10


11


9


8


40


29

Special items




381



381


(95)

Capitalized interest included in cost of products sold

9


13


10


11


9


43


37

Adjusted EBITDA, excluding special items*

$     387


$     445


$     418


$     433


$     391


$ 1,683


$ 1,162







* Non-GAAP measure




















 










Weyerhaeuser Company


Q4.2013 Analyst Package





Preliminary results, subject to audit





Consolidated Balance Sheet











in millions

Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012

ASSETS










Forest Products:










Current assets:










Cash and cash equivalents

$        635


$        908


$        898


$        830


$        893

Receivables, less allowances

633


589


586


518


474

Receivables for taxes

65


43


31


101


95

Inventories

596


561


533


542


531

Prepaid expenses

89


96


114


117


83

Deferred tax assets

189


144


113


128


65

Restricted financial investments held by variable interest entities

184





184

Total current assets

2,391


2,341


2,275


2,236


2,325

Property and equipment, net

2,785


2,706


2,709


2,687


2,859

Construction in progress

56


72


101


112


50

Timber and timberlands at cost, less depletion charged to disposals

3,954


3,949


6,603


6,580


3,961

Cash and cash equivalents designated for the purchase of Longview Timber LLC and the repayment of their acquired debt


1,450


494



Investments in and advances to equity affiliates

191


186


186


190


192

Goodwill

40


42


42


42


40

Deferred tax assets

70


64


66


5


189

Other assets

351


349


325


345


358

Restricted financial investments held by variable interest entities

615


615


615


615


615


10,453


11,774


13,416


12,812


10,589

Real Estate(1):










Cash and Cash Equivalents

4


4


5


5


5

Receivables, less allowances

75


74


77


60


72

Real estate in process of development and for sale

736


783


851


842


682

Land being processed for development

918


940


932


583


927

Investments in and advances to equity affiliates

20


20


20


21


21

Deferred tax assets

204


201


195


289


202

Other assets

100


112


113


116


94


2,057


2,134


2,193


1,916


2,003

Total assets

$ 12,510


$ 13,908


$ 15,609


$ 14,728


$ 12,592











LIABILITIES AND EQUITY










Forest Products:










Current liabilities:










Notes Payable

$         —


$            2


$            2


$            2


$         —

Current maturities of long-term debt

184


163




340

Current maturities of long-term debt (nonrecourse to the company) held by variable interest entities

162





161

Accounts payable

357


341


362


343


329

Accrued liabilities

538


573


623


626


570

Total current liabilities

1,241


1,079


987


971


1,400

Long-term debt

3,842


3,842


5,459


4,891


3,842

Long-term debt (nonrecourse to the company) held by variable interest entities

511


511


511


511


511

Deferred income taxes

46


38


44


436


Deferred pension and other postretirement benefits

1,856


1,785


1,727


516


1,930

Other liabilities

455


446


438


356


499


7,951


7,701


9,166


7,681


8,182

Real Estate(1):










Long-term debt

109


109


109



109

Long-term debt (nonrecourse to the company) held by variable interest entities

2


4


5


5


1

Other liabilities

172


188


212


210


187


283


301


326


215


297

Total liabilities

8,234


8,002


9,492


7,896


8,479

Equity:










Total Weyerhaeuser shareholders' interest

4,244


5,868


6,078


6,795


4,070

Noncontrolling interests

32


38


39


37


43

Total equity

4,276


5,906


6,117


6,832


4,113

Total liabilities and equity

$ 12,510


$ 13,908


$ 15,609


$ 14,728


$ 12,592


(1) In our 2013 Annual Report on Form 10-K, our real estate and forest products asset and liability line items will be combined into respective total asset and liability line items.

 







Weyerhaeuser Company



Q4.2013 Analyst Package









Preliminary results, subject to audit









Consolidated Statement of Cash Flows















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Cash flows from operations:














Net earnings

$   144


$    198


$     167


$     54


$  142


$     563


$   384

Noncash charges (credits) to income:














Depreciation, depletion and amortization

112


111


120


129


118


472


456

Deferred income taxes, net

26


23


24


(102)


40


(29)


109

Pension and other postretirement benefits

24


28


27


22


20


101


(19)

Share-based compensation expense

12


10


12


8


9


42


37

Charges for impairment of assets

1


2


2


367


5


372


24

Net gains on dispositions of assets

(7)


(14)


(21)


(16)


(30)


(58)


(69)

Foreign exchange transaction (gains) losses

4


4


(2)


1


2


7


(6)

Change in:














Receivables less allowances

(165)


45


8


85



(27)


(33)

Receivable for taxes

30


22


12


(70)


2


(6)


(73)

Inventories

(68)


32


36


(13)


(20)


(13)


(54)

Real estate and land

(59)


(62)


(58)


13


20


(166)


(75)

Prepaid expenses

(13)


(1)


(2)


(10)


2


(26)


(16)

Accounts payable and accrued liabilities

(66)


34


77


(96)


(5)


(51)


18

Deposits on land positions and other assets

(1)


(9)


(1)


(7)


(7)


(18)


4

Pension and postretirement contributions

(37)


(32)


(35)


(33)


(36)


(137)


(145)

Other

2


(17)


(23)


16


(10)


(22)


39

Net cash from operations

(61)


374


343


348


252


1,004


581















Cash flows from investing activities:














Property and equipment

(35)


(47)


(69)


(110)


(59)


(261)


(256)

Timberlands reforestation

(13)


(8)


(7)


(4)


(7)


(32)


(29)

Acquisition of Longview Timber LLC, net of cash acquired



(1,581)




(1,581)


Proceeds from sale of assets

6


8


1


5


44


20


80

Proceeds of investments held by special purpose entities


22




110


22


13

Other


(4)


9


(2)


1


3


Cash from investing activities

(42)


(29)


(1,647)


(111)


89


(1,829)


(192)















Cash flows from financing activities:














Net proceeds from issuance of common shares(1)


781


116




897


Net proceeds from issuance of preference shares(1)


669





669


Net proceeds from issuance of debt(1)



494


550



1,044


Cash dividends on common shares

(93)


(109)


(128)


(128)


(92)


(458)


(334)

Cash dividends on preference shares




(23)



(23)


Change in book overdrafts

3


4


1


(1)



7


(32)

Payments on debt

(156)


(21)


(163)


(1,227)



(1,567)


(187)

Exercises of stock options

81


51


9


21


39


162


112

Other

9


3


10


9


2


31


(3)

Cash from financing activities

(156)


1,378


339


(799)


(51)


762


(444)















Net change in cash and cash equivalents

(259)


1,723


(965)


(562)


290


(63)


(55)

Cash and cash equivalents at beginning of period

898


639


2,362


1,397


608


898


953

Cash and cash equivalents at end of period

$   639


$ 2,362


$  1,397


$   835


$  898


$     835


$   898

Cash paid (received) during the year for:














Interest, net of amount capitalized

$   111


$      55


$     109


$     91


$    61


$     366


$   351

Income taxes

$     (2)


$      (4)


$         2


$     12


$      1


$         8


$   (13)

Noncash investing and financing activity: Acquisition of Longview Timber LLC, debt assumed

$    —


$      —


$  1,070


$     —


$    —


$  1,070


$    —


(1) During second and third quarter 2013, we received $2,060 million in cash related to the issuance of common shares, mandatory convertible preference shares and debt related to the acquisition of Longview Timber LLC. We have recorded this cash as "Cash and cash equivalents designated for the purchase of Longview Timber LLC and the repayment of their acquired debt" on our Consolidated Balance Sheet.

 







Weyerhaeuser Company


Total Company Statistics

Q4.2013 Analyst Package







Preliminary results, subject to audit










Special Items Included in Net Earnings















in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Net earnings

$  144


$  196


$  157


$    43


$  143


$  540


$  385

Loss on early extinguishment of debt




25



25


Restructuring, impairments and other charges




247



247


10

Costs related to Real Estate divestiture




10



10


Gain on postretirement plan amendment







(67)

Gain on sale of properties







(4)

Tax adjustments




(168)



(168)


(8)

Net earnings before special items

$  144


$  196


$  157


$  157


$  143


$  654


$  316







Q1


Q2


Q3


Q4


Year-to-date


Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Net earnings per diluted share

$ 0.26


$ 0.35


$ 0.27


$ 0.07


$ 0.26


$ 0.95


$ 0.71

Loss on early extinguishment of debt




0.05



0.05


Restructuring, impairments and other charges




0.42



0.42


0.02

Costs related to Real Estate divestiture




0.02



0.02


Gain on postretirement plan amendment







(0.12)

Gain on sale of properties







(0.01)

Tax adjustments




(0.29)



(0.30)


(0.02)

Net earnings before special items per diluted share

$ 0.26


$ 0.35


$ 0.27


$ 0.27


$ 0.26


$ 1.14


$ 0.58


Selected Total Company Items


in millions

Q1


Q2


Q3


Q4


Year-to-date


Mar 31,
2013


Jun 30,
2013


Sep 30,
2013


Dec 31,
2013


Dec 31,
2012


Dec 31,
2013


Dec 31,
2012

Depreciation, depletion and amortization:














Cost of products sold

$   103


$   102


$   110


$   120


$   109


$   435


$   416

Selling, general and administrative expenses

9


9


10


9


9


37


40

Total depreciation, depletion and amortization

$   112


$   111


$   120


$   129


$   118


$   472


$   456














Pension and postretirement costs:














Pension and postretirement costs allocated to business segments

$     14


$     16


$     16


$     15


$     12


$     61


$     51

Pension and postretirement costs not allocated

10


10


11


9


8


40


29

Total company pension and postretirement costs

$     24


$     26


$     27


$     24


$     20


$   101


$     80















Total decrease (increase) in Forest Products working capital (1)

$  (334)


$   161


$   138


$    (17)


$    (85)


$    (52)


$  (159)

Cash spent for capital expenditures

$    (48)


$    (55)


$    (76)


$  (114)


$    (66)


$  (293)


$  (285)









(1) Working capital does not include cash balances.






















  

 









Weyerhaeuser Company



Timberlands Segment

Q4.2013 Analyst Package










Preliminary results, subject to audit

























Segment Statement of Operations
















in millions


Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Sales to and revenues from unaffiliated customers

$      293


$      333


$      353


$      364


$     298


$    1,343


$    1,077

Intersegment sales

224


166


194


215


185


799


683

Total net sales and revenues

517


499


547


579


483


2,142


1,760

Cost of products sold

395


365


407


425


374


1,592


1,376

Gross margin

122


134


140


154


109


550


384

Selling expenses

3


2


3


2


2


10


9

General and administrative expenses

25


25


27


26


20


103


85

Research and development expenses

4


5


4


6


6


19


19

Charges for restructuring, closures and impairments

2





2


2


2

Other operating income, net

(15)


(11)


(11)


(13)


(14)


(50)


(49)

Operating income

103


113


117


133


93


466


318

Interest income and other

1


1


1


1


1


4


3

Loss attributable to noncontrolling interest





1



1

Net contribution to earnings

$     104


$     114


$     118


$     134


$      95


$     470


$     322
















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*
















in millions


Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Operating income

$     103


$     113


$     117


$     133


$      93


$     466


$     318

Depreciation, depletion and amortization

36


34


45


51


38


166


142

Adjusted EBITDA, excluding special items*

$     139


$     147


$     162


$     184


$   131


$     632


$     460










* Non-GAAP measure
























Selected Segment Items


















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital (1)

$      (10)


$      (21)


$        31


$        (7)


$     (37)


$         (7)


$       (21)

Cash spent for capital expenditures

$      (18)


$      (18)


$      (16)


$      (21)


$     (16)


$       (73)


$       (60)











(1) Working capital does not include cash balances.

























Segment Statistics


















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Third Party 
Net Sales
and Revenue
(millions)

Logs:














West

$      177


$      208


$      213


$      230


$     151


$       828


$       559

South

61


65


66


64


67


256


233

Canada

7


2


6


4


5


19


19

Total Logs

245


275


285


298


223


1,103


811

Pay as cut timber sales

1


4


2


2


4


9


13

Chip sales

3


2


2


2


4


9


18

Timberlands exchanges

2


14


28


21


20


65


59

Higher and better use land sales

3


5


2


9


9


19


22

Minerals, oil and gas

8


9


9


6


9


32


31

Products from international operations

22


22


24


22


26


90


106

Other products

9


2


1


4


3


16


17

Total

$      293


$      333


$      353


$      364


$     298


$    1,343


$    1,077

 

Logs
Third Party Sales
Realizations
(per cubic meter)

West

$ 105.38


$ 115.11


$ 104.73


$ 104.91


$  96.46


$  107.36


$    94.72

South

$   43.47


$   43.47


$   43.32


$   43.72


$  43.30


$    43.49


$    41.83

Canada

$   36.61


$   36.38


$   38.77


$   38.68


$  38.70


$    37.71


$    36.51

International

$   24.01


$   25.00


$   25.07


$   23.05


$  24.30


$    24.22


$    23.66

 

Logs
Third Party Sales
Volumes
(cubic meters,
thousands)

West

1,674


1,812


2,037


2,185


1,559


7,708


5,898

South

1,399


1,507


1,514


1,468


1,563


5,888


5,575

Canada

204


38


141


128


139


511


531

International

68


77


100


112


84


357


343

Total

3,345


3,434


3,792


3,893


3,345


14,464


12,347

 

Logs
Fee Harvest Volumes
(cubic meters,
thousands)

West

1,995


1,921


2,305


2,686


1,876


8,907


7,170

South

2,833


2,828


2,928


3,007


3,177


11,596


11,488

International

197


167


211


243


232


818


763

Total

5,025


4,916


5,444


5,936


5,285


21,321


19,421
















 

















Weyerhaeuser Company


Wood Products Segment

Q4.2013 Analyst Package











Preliminary results, subject to audit

























Segment Statement of Operations  
















in millions


Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Sales to and revenues from unaffiliated customers

$    988


$ 1,065


$ 1,030


$    926


$    832


$   4,009


$    3,058

Intersegment sales

18


18


19


16


16


71


74

Total net sales and revenues

1,006


1,083


1,049


942


848


4,080


3,132

Cost of products sold

770


884


905


826


748


3,385


2,780

Gross margin

236


199


144


116


100


695


352

Selling expenses

26


24


24


24


24


98


89

General and administrative expenses

36


36


37


32


34


141


123

Research and development expenses

1


1


2


2


1


6


5

Charges for restructuring, closures and impairments


1


1


11


1


13


6

Other operating costs (income), net

(5)


1


1


(1)


2


(4)


10

Operating income

178


136


79


48


38


441


119

Interest income and other







1

Net contribution to earnings

$   178


$   136


$     79


$     48


$     38


$     441


$     120
















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*
















in millions


Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Operating income

$   178


$   136


$     79


$     48


$     38


$     441


$     119

Depreciation, depletion and amortization

31


31


31


30


33


123


133

Special items




10



10


(6)

Adjusted EBITDA, excluding special items*

$   209


$   167


$   110


$     88


$     71


$     574


$     246












* Non-GAAP measure


























Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  


















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Gain on sale of property

$      —


$      —


$      —


$      —


$      —


$        —


$           6

Charges for restructuring, closures, and impairments




(10)



(10)


Total

$     —


$     —


$     —


$   (10)


$     —


$     (10)


$          6
















Selected Segment Items


















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital (1)

$  (194)


$      75


$      74


$      40


$        9


$        (5)


$     (119)

Cash spent for capital expenditures

$    (10)


$    (16)


$    (26)


$    (61)


$    (19)


$    (113)


$       (56)












(1) Working capital does not include cash balances.


























Segment Statistics
















in millions, except for third-party sales realizations

Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Structural 
Lumber
(board feet)

Third Party Net Sales and Revenue

$    451


$    502


$    480


$    440


$    376


$   1,873


$    1,400

Third Party Sales Realizations

$    440


$    434


$    404


$    413


$    366


$      422


$       347

Third Party Sales Volumes

1,025


1,156


1,189


1,066


1,025


4,436


4,031

Production Volumes

1,021


1,053


1,040


970


939


4,084


3,846

Outside Purchase Volumes

102


77


92


83


77


354


225

Engineered Solid
Section
(cubic feet)

Third Party Net Sales and Revenue

$      82


$      84


$      97


$      90


$      68


$      353


$       279

Third Party Sales Realizations

$ 1,850


$ 1,920


$ 1,963


$ 2,006


$ 1,817


$   1,936


$    1,808

Third Party Sales Volumes

4.4


4.4


4.9


4.5


3.7


18.2


15.4

Production Volumes

4.6


4.6


4.6


4.2


3.6


18.0


15.4

Outside Purchase Volumes

0.9


0.4


0.3


0.2


1.6


1.8


3.2

Engineered
I-joists
(lineal feet)

Third Party Net Sales and Revenue

$      56


$      60


$      68


$      63


$      47


$      247


$       190

Third Party Sales Realizations

$ 1,300


$ 1,358


$ 1,428


$ 1,485


$ 1,265


$   1,393


$    1,250

Third Party Sales Volumes

43


44


48


42


37


177


152

Production Volumes

44


42


44


38


37


168


147

Outside Purchase Volumes

3


1


2


2


2


8


9

Oriented Strand
Board
(square feet 3/8')

Third Party Net Sales and Revenue

$    236


$    224


$    188


$    161


$    194


$      809


$       612

Third Party Sales Realizations

$    359


$    332


$    246


$    237


$    290


$      292


$       244

Third Party Sales Volumes

657


675


762


678


670


2,772


2,508

Production Volumes

662


663


725


673


642


2,723


2,511

Outside Purchase Volumes

68


56


49


54


60


227


200

Softwood 
Plywood
(square feet 3/8')

Third Party Net Sales and Revenue

$      36


$      41


$      38


$      29


$      32


$      144


$       115

Third Party Sales Realizations

$    370


$    378


$    344


$    339


$    347


$      358


$       338

Third Party Sales Volumes

99


108


108


87


91


402


340

Production Volumes

61


63


62


55


59


241


214

Outside Purchase Volumes

42


33


40


40


34


155


127
















 

















Weyerhaeuser Company



Cellulose Fibers Segment

Q4.2013 Analyst Package











Preliminary results, subject to audit

























Segment Statement of Operations
















in millions


Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Total net sales and revenues

$   474


$   476


$   474


$       478


$   463


$  1,902


$  1,854

Cost of products sold

424


394


406


397


385


1,621


1,560

Gross margin

50


82


68


81


78


281


294

Selling expenses

4


5


5


3


5


17


18

General and administrative expenses

20


21


21


17


18


79


74

Research and development expenses

2


2


2


2


2


8


8

Other operating income, net

(7)


(5)


(6)


(2)


(6)


(20)


(24)

Operating income

31


59


46


61


59


197


218

Interest income and other


(2)


1


4


2


3


5

Net contribution to earnings

$      31


$      57


$      47


$         65


$      61


$     200


$     223
















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*
















in millions


Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Operating income

$      31


$      59


$      46


$         61


$      59


$     197


$     218

Depreciation, depletion and amortization

39


39


38


40


40


156


150

Adjusted EBITDA, excluding special items*

$      70


$      98


$      84


$       101


$      99


$     353


$     368












* Non-GAAP measure


























Selected Segment Items


















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital (1)

$       (7)


$       12


$       19


$        (12)


$     (30)


$         12


$         19

Cash spent for capital expenditures

$     (17)


$     (17)


$     (28)


$        (30)


$     (26)


$       (92)


$     (160)












(1) Working capital does not include cash balances.


























Segment Statistics


















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Pulp
(air-dry metric
tons)

Third Party Net Sales and Revenue (millions)

$     371


$     369


$     371


$        390


$     364


$    1,501


$    1,433

Third Party Sales Realizations

$     796


$     797


$     805


$        818


$     799


$       804


$       813

Third Party Sales Volumes (thousands)

467


462


460


477


456


1,866


1,762

Production Volumes (thousands)

445


463


457


450


465


1,815


1,773

Liquid
Packaging
Board
(tons)

Third Party Net Sales and Revenue (millions)

$       85


$       86


$       83


$          72


$       75


$       326


$       332

Third Party Sales Realizations

$  1,079


$  1,079


$  1,082


$     1,029


$  1,085


$    1,068


$    1,150

Third Party Sales Volumes (thousands)

78


81


76


70


69


305


289

Production Volumes (thousands)

78


77


67


85


72


307


292























 













Weyerhaeuser Company





Real Estate Segment

Q4.2013 Analyst Package










Preliminary results, subject to audit
























Segment Statement of Operations















in millions

Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Total net sales and revenues

$   196


$   267


$   324


$   488


$   407


$  1,275


$  1,070

Cost of products sold

160


210


248


371


276


989


812

Gross margin

36


57


76


117


131


286


258

Selling expenses

18


23


24


30


25


95


78

General and administrative expenses

18


19


20


17


27


74


76

Charges for restructuring, closures and impairments

1


3


1


352


1


357


6

Other operating income, net


(1)


(1)


(3)


(1)


(5)


(2)

Operating income (loss)

(1)


13


32


(279)


79


(235)


100

Interest income and other

1


1


1


1


2


4


5

Net contribution to earnings

$      —


$      14


$      33


$  (278)


$      81


$    (231)


$     105















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*















in millions

Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Operating income (loss)

$      (1)


$      13


$      32


$  (279)


$      79


$    (235)


$     100

Depreciation, depletion and amortization

3


3


4


4


4


14


12

Capitalized interest included in cost of products sold

7


12


9


9


8


37


30

Special items




349



349


Adjusted EBITDA, excluding special items*

$        9


$      28


$      45


$      83


$      91


$     165


$     142

* Non-GAAP measure




























Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Restructuring, impairments and other charges

$      —


$      —


$      —


$   (343)


$      —


$     (343)


$        —

Costs related to Real Estate divestiture




(6)



(6)


Total

$      —


$      —


$      —


$  (349)


$      —


$    (349)


$        —















Selected Segment Items
















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Cash from operations

$     (71)


$     (56)


$       (2)


$     106


$       77


$       (23)


$         64

Cash spent for capital expenditures

$       (2)


$       (2)


$       (5)


$       (1)


$       (2)


$       (10)


$         (4)















Segment Statistics
















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Net sales and revenues:














Single-family housing

$     183


$     257


$     305


$     474


$     320


$    1,219


$       870

Land

11


10


18


13


84


52


193

Other

2



1


1


3


4


7

Total net sales and revenue

$     196


$     267


$     324


$     488


$     407


$    1,275


$    1,070

Single-family homes sold

820


943


765


520


561


3,048


2,659

Single-family homes closed

463


636


768


1,072


842


2,939


2,314

Single-family homes sold but not closed (backlog)

1,131


1,438


1,435


883


774


883


774

Single-family cancellation rate

12.2 %


14.6 %


15.7 %


20.7 %


15.9 %


15.4 %


14.9 %

Single-family buyer traffic

17,764


20,080


16,370


14,252


14,567


68,466


64,410

Single-family average price of homes closed (in thousands)

$     394


$     405


$     397


$     442


$     381


$       415


$       376

Single-family home gross margin (1)

19.5 %


21.6 %


22.3 %


23.0 %


20.0 %


22.0 %


20.3 %















(1) Single-family gross margin equals revenue less cost of sales and period costs.

 





















Weyerhaeuser Company


Unallocated Items

Q4.2013 Analyst Package







Preliminary results, subject to audit






















Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve.















Contribution to Earnings















in millions

Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Unallocated corporate function expenses

$       (3)


$       (3)


$       (2)


$       (7)


$       (8)


$       (15)


$       (22)

Unallocated share-based compensation

(7)


5


(1)


(5)


(3)


(8)


(16)

Unallocated pension & postretirement costs

(10)


(10)


(11)


(9)


(8)


(40)


(29)

Foreign exchange gains (losses)

(4)


(4)


2


(1)


(2)


(7)


7

Elimination of intersegment profit in inventory and LIFO (1)

(24)


8


25


6


8


15


(16)

Other

(7)


(6)


(10)


(44)



(67)


56

Operating income (loss)

(55)


(10)


3


(60)


(13)


(122)


(20)

Interest income and other

9


10


18


10


9


47


38

Net contribution to earnings

$    (46)


$      —


$      21


$    (50)


$      (4)


$      (75)


$        18


We now report the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of business operating results. Prior period results have been adjusted to reflect the change.















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*















in millions

Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Operating income (loss)

$    (55)


$    (10)


$        3


$    (60)


$    (13)


$    (122)


$      (20)

Depreciation, depletion and amortization

3


4


2


4


3


13


19

Non-operating pension and postretirement costs

10


10


11


9


8


40


29

Capitalized interest included in cost of products sold

2


1


1


2


1


6


7

Special items




22



22


(89)

Adjusted EBITDA, excluding special items*

$    (40)


$        5


$      17


$    (23)


$      (1)


$      (41)


$      (54)










* Non-GAAP measure - see below for definition.























Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)
















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Gain on postretirement plan amendment

$      —


$      —


$      —


$      —


$      —


$        —


$       103

Restructuring, impairments and other charges




(13)



(13)


(14)

Costs related to Real Estate divestiture




(9)



(9)


Total

$      —


$      —


$      —


$    (22)


$      —


$      (22)


$        89















Unallocated Selected Items
















Q1.2013


Q2.2013


Q3.2013


Q4.2013


Q4.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital (1)

$   (123)


$       95


$       14


$     (38)


$     (27)


$       (52)


$       (38)

Cash spent for capital expenditures

$       (1)


$       (2)


$       (1)


$       (1)


$      —


$         (5)


$         (5)

(1) Working capital does not include cash balances.




























*Adjusted EBITDA, excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and interest included in cost of products sold. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

























 

 

SOURCE Weyerhaeuser Company



RELATED LINKS
http://www.weyerhaeuser.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.