Weyerhaeuser reports second quarter results
SEATTLE, July 28, 2017 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter earnings from continuing operations of $24 million, or 3 cents per diluted share, on net sales of $1.8 billion. This compares with earnings from continuing operations of $130 million, or 16 cents per diluted share, on net sales of $1.7 billion for the same period last year. Adjusted EBITDA for the second quarter was $506 million compared to $413 million for the second quarter of last year.
Excluding after-tax special items of $188 million, which includes $147 million non-cash impairment for our Uruguay operations and $31 million for product remediation, the company reported net earnings of $212 million, or 28 cents per diluted share for the second quarter. This compares with net earnings from continuing operations before special items of $130 million for the same period last year and $167 million for first quarter of 2017.
"Each of our businesses delivered strong second quarter operating results, leveraging ongoing operational excellence initiatives to capitalize on improving markets," said Doyle R. Simons, president and CEO. "In the quarter, we also announced the pending sale of our Uruguay operations and completed the asset value optimization process for our Western timberlands. Looking forward, we are extremely well positioned to continue to capitalize on the improving housing market, and remain relentlessly focused on driving value for our shareholders through operational improvements and disciplined capital allocation."
WEYERHAEUSER FINANCIAL HIGHLIGHTS
During 2016, Weyerhaeuser sold its Cellulose Fibers businesses. Results for the Cellulose Fibers segment are presented as discontinued operations.
| WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2017 |
2017 |
2016 |
||||||
| (millions, except per share data) |
1Q |
2Q |
2Q |
||||||
| Net sales |
$1,693 |
$1,808 |
$1,655 |
||||||
| Earnings from continuing operations |
$157 |
$24 |
$130 |
||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$157 |
$24 |
$157 |
||||||
| Earnings per diluted share from continuing operations |
$0.21 |
$0.03 |
$0.16 |
||||||
| Net earnings per diluted share |
$0.21 |
$0.03 |
$0.21 |
||||||
| Weighted average shares outstanding, diluted |
755 |
756 |
748 |
||||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(1) |
$167 |
$212 |
$130 |
||||||
| Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$0.22 |
$0.28 |
$0.17 |
||||||
| Adjusted EBITDA(2) |
$454 |
$506 |
$413 |
||||||
| (1) First quarter 2017 after-tax special items include charges of $10 million for Plum Creek merger-related costs. Second quarter 2017 after-tax special items include a $147 million non-cash impairment charge for the Uruguay business, $31 million for product remediation and $8 million for countervailing and antidumping duties on Canadian softwood lumber the company sold into the United States and $2 million for Plum Creek merger-related costs. Second quarter 2016 after-tax special items include $4 million of Plum Creek merger related costs and $7 million of legal expense. |
|||||||||
| (2) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations, adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. A reconciliation of Adjusted EBITDA to GAAP earnings is included within this release. |
|||||||||
TIMBERLANDS
| FINANCIAL HIGHLIGHTS (millions) |
1Q 2017 |
2Q 2017 |
Change |
||
| Net sales |
$688 |
$632 |
($56) |
||
| Contribution to pre-tax earnings |
$148 |
($12) |
($160) |
||
| Pre-tax charge for special items |
$0 |
$147 |
$147 |
||
| Contribution to pre-tax earnings before special items |
$148 |
$135 |
($13) |
||
| Adjusted EBITDA |
$242 |
$222 |
($20) |
2Q 2017 Performance - In the West, modestly higher average sales realizations for domestic and export logs were more than offset by seasonally higher road spending and forestry costs. In the South, average log sales realizations and volumes were comparable to first quarter. Second quarter results include a $147 million noncash impairment charge related to the pending sale of our Uruguay operations.
3Q 2017 Outlook - Weyerhaeuser expects third quarter earnings before special items and Adjusted EBITDA will be slightly lower than second quarter. In the West, the company anticipates slightly higher log sales realizations, lower fee harvest volumes, and increased road spending compared to the second quarter. In the South, the company anticipates seasonally higher fee harvest volumes, comparable log sales realizations and increased forestry and silviculture expense.
REAL ESTATE, ENERGY & NATURAL RESOURCES
| FINANCIAL HIGHLIGHTS (millions) |
1Q 2017 |
2Q 2017 |
Change |
||
| Net sales |
$53 |
$46 |
($7) |
||
| Contribution to pre-tax earnings |
$26 |
$23 |
($3) |
||
| Adjusted EBITDA |
$43 |
$37 |
($6) |
2Q 2017 Performance - Earnings and Adjusted EBITDA decreased as a result of lower Real Estate sales compared to the first quarter. Energy & Natural Resources royalties increased from first quarter levels.
3Q 2017 Outlook - Weyerhaeuser expects earnings and Adjusted EBITDA will be significantly higher than the second quarter. The company anticipates Real Estate sales in the third quarter will be about double second quarter levels. We continue to expect Adjusted EBITDA for the Real Estate, Energy & Natural Resources segment will exceed $250 million for full year 2017.
WOOD PRODUCTS
| FINANCIAL HIGHLIGHTS (millions) |
1Q 2017 |
2Q 2017 |
Change |
||
| Net sales |
$1,154 |
$1,293 |
$139 |
||
| Contribution to pre-tax earnings |
$172 |
$177 |
$5 |
||
| Pre-tax charge for special items |
$0 |
$61 |
$61 |
||
| Contribution to pre-tax earnings before special items |
$172 |
$238 |
$66 |
||
| Adjusted EBITDA |
$207 |
$274 |
$67 |
2Q 2017 Performance - Average sales realizations increased across all product lines in the second quarter. Sales volumes were higher for lumber and engineered wood products while oriented strand board sales volumes were comparable to the first quarter. Second quarter results include pre-tax special items of $61 million, which are comprised of a $50 million charge for product remediation and $11 million of softwood lumber countervailing and antidumping duties.
3Q 2017 Outlook - Weyerhaeuser anticipates third quarter earnings before special items and Adjusted EBITDA will be comparable to the second quarter. The company expects average sales realizations and sales volumes for lumber will be comparable to the second quarter. For oriented strand board, the company anticipates slightly higher average sales realizations and modestly lower sales volumes.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 13 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2016, we generated $6.4 billion in net sales and employed approximately 10,400 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 28, 2017, to discuss second quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on https://www.weyerhaeuser.com on July 28, 2017.
To join the conference call from within North America, dial 877-296-9413 (access code: 43729080) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 43729080). Replays will be available for two weeks at 855-859-2056 (access code: 43729080) from within North America and at 404-537-3406 (access code: 43729080) from outside North America.
FORWARD LOOKING STATEMENTS
This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including with respect to the following for the third quarter of 2017: earnings and Adjusted EBITDA for each of our business segments; log sale realizations and fee harvest volumes; sales volumes across Wood Products product lines, expected sales realizations and volumes for lumber and oriented strand board; and various logging, forestry and silviculture costs; and real estate sales volumes. These statements generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and expressions such as "will be," "will continue," "will likely result," and similar words and expressions. These statements are based on our current expectations and assumptions and are not guarantees of future performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:
- the effect of general economic conditions, including employment rates, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;
- market demand for our products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
- changes in currency exchange rates and restrictions on international trade;
- performance of our manufacturing operations, including maintenance requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign producers;
- raw material availability and prices;
- the effect of weather;
- the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
- energy prices;
- the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
- the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;
- transportation and labor availability and costs;
- federal tax policies;
- the effect of forestry, land use, environmental and other governmental regulations;
- legal proceedings;
- performance of pension fund investments and related derivatives;
- the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;
- changes in accounting principles; and
- other factors described under "Risk Factors" in our 2016 Annual Report on Form 10-K as well as those set forth from time to time in our other public statements and other reports and filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
| For more information contact: |
Analysts - Krista Kochivar (206) 539-3907 |
|
| Media - Anthony Chavez (206) 539-4406 |
| RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS |
|||||||||||||||||||
| The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2017: |
|||||||||||||||||||
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
157 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
— |
||||||||||||||||||
| Interest expense, net of capitalized interest |
99 |
||||||||||||||||||
| Income taxes |
24 |
||||||||||||||||||
| Net contribution to earnings |
$ |
148 |
$ |
26 |
$ |
172 |
$ |
(66) |
$ |
280 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
— |
— |
— |
— |
||||||||||||||
| Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
22 |
22 |
||||||||||||||
| Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
| Operating income (loss) |
148 |
26 |
172 |
(53) |
293 |
||||||||||||||
| Depreciation, depletion and amortization |
94 |
3 |
35 |
1 |
133 |
||||||||||||||
| Basis of real estate sold |
— |
14 |
— |
— |
14 |
||||||||||||||
| Unallocated pension service costs |
— |
— |
— |
2 |
2 |
||||||||||||||
| Special items(1) |
— |
— |
— |
12 |
12 |
||||||||||||||
| Adjusted EBITDA |
$ |
242 |
$ |
43 |
$ |
207 |
$ |
(38) |
$ |
454 |
|||||||||
| (1) Pre-tax special items include: $12 million of Plum Creek merger-related costs. |
|||||||||||||||||||
| The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2017 : |
|||||||||||||||||||
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
24 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
— |
||||||||||||||||||
| Interest expense, net of capitalized interest |
100 |
||||||||||||||||||
| Income taxes |
34 |
||||||||||||||||||
| Net contribution to earnings |
$ |
(12) |
$ |
23 |
$ |
177 |
$ |
(30) |
$ |
158 |
|||||||||
| Equity earnings from joint ventures |
— |
— |
— |
— |
— |
||||||||||||||
| Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
8 |
8 |
||||||||||||||
| Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
| Operating income (loss) |
(12) |
23 |
177 |
(31) |
157 |
||||||||||||||
| Depreciation, depletion and amortization |
87 |
4 |
36 |
2 |
129 |
||||||||||||||
| Basis of real estate sold |
— |
10 |
— |
— |
10 |
||||||||||||||
| Unallocated pension service costs |
— |
— |
— |
— |
— |
||||||||||||||
| Special items(1) |
147 |
— |
61 |
2 |
210 |
||||||||||||||
| Adjusted EBITDA |
$ |
222 |
$ |
37 |
$ |
274 |
$ |
(27) |
$ |
506 |
|||||||||
| (1) Pre-tax special items include: $147 million of impairment charges related to our Uruguayan operations; $50 million for product remediation; $11 million of countervailing and antidumping duties; and $2 million of Plum Creek merger-related costs. |
|||||||||||||||||||
| The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2016: |
|||||||||||||||||||
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
168 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(38) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
114 |
||||||||||||||||||
| Income taxes |
31 |
||||||||||||||||||
| Net contribution to earnings |
$ |
125 |
$ |
12 |
$ |
156 |
$ |
(18) |
$ |
275 |
|||||||||
| Equity earnings from joint ventures |
— |
— |
— |
(7) |
(7) |
||||||||||||||
| Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
(10) |
(10) |
||||||||||||||
| Interest income and other |
— |
— |
— |
(10) |
(10) |
||||||||||||||
| Operating income (loss) |
125 |
12 |
156 |
(45) |
248 |
||||||||||||||
| Depreciation, depletion and amortization |
95 |
3 |
33 |
2 |
133 |
||||||||||||||
| Basis of real estate sold |
— |
13 |
— |
— |
13 |
||||||||||||||
| Unallocated pension service costs |
— |
— |
— |
— |
— |
||||||||||||||
| Special items(1) |
— |
— |
— |
19 |
19 |
||||||||||||||
| Adjusted EBITDA |
$ |
220 |
$ |
28 |
$ |
189 |
$ |
(24) |
$ |
413 |
|||||||||
| (1) Pre-tax special items include: $8 million of Plum Creek merger-related costs and $11 million of legal expense. |
| Weyerhaeuser Company |
Exhibit 99.2 |
||||||||||||||||||
| Q2.2017 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Consolidated Statement of Operations(1)(2) |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net sales |
$ |
1,693 |
$ |
1,808 |
$ |
1,655 |
$ |
3,501 |
$ |
3,060 |
|||||||||
| Cost of products sold |
1,272 |
1,336 |
1,271 |
2,608 |
2,374 |
||||||||||||||
| Gross margin |
421 |
472 |
384 |
893 |
686 |
||||||||||||||
| Selling expenses |
22 |
22 |
22 |
44 |
45 |
||||||||||||||
| General and administrative expenses |
87 |
76 |
94 |
163 |
173 |
||||||||||||||
| Research and development expenses |
4 |
4 |
4 |
8 |
9 |
||||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
13 |
151 |
14 |
164 |
125 |
||||||||||||||
| Other operating costs (income), net |
2 |
62 |
2 |
64 |
(53) |
||||||||||||||
| Operating income from continuing operations |
293 |
157 |
248 |
450 |
387 |
||||||||||||||
| Equity earnings from joint ventures |
— |
— |
7 |
— |
12 |
||||||||||||||
| Non-operating pension and other postretirement benefit (costs) credits |
(22) |
(8) |
10 |
(30) |
24 |
||||||||||||||
| Interest income and other |
9 |
9 |
10 |
18 |
19 |
||||||||||||||
| Interest expense, net of capitalized interest |
(99) |
(100) |
(114) |
(199) |
(209) |
||||||||||||||
| Earnings from continuing operations before income taxes |
181 |
58 |
161 |
239 |
233 |
||||||||||||||
| Income taxes |
(24) |
(34) |
(31) |
(58) |
(42) |
||||||||||||||
| Earnings from continuing operations |
157 |
24 |
130 |
181 |
191 |
||||||||||||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
38 |
— |
58 |
||||||||||||||
| Net earnings |
157 |
24 |
168 |
181 |
249 |
||||||||||||||
| Dividends on preference shares |
— |
— |
(11) |
— |
(22) |
||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ |
157 |
$ |
24 |
$ |
157 |
$ |
181 |
$ |
227 |
|||||||||
| (1) Discontinued operations as presented herein consist of the operations of our former Cellulose Fibers segment. The corresponding assets and liabilities were classified as discontinued operations on our balance sheet. |
|||||||||||||||||||
| (2) Amounts presented reflect the results of operations acquired in our merger with Plum Creek Timber, Inc., beginning on the merger date of February 19, 2016. |
|||||||||||||||||||
| Per Share Information |
|||||||||||||||||||
| Q1 |
Q2 |
Year-to-date |
|||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Earnings per share attributable to Weyerhaeuser common shareholders, basic: |
|||||||||||||||||||
| Continuing operations |
$ |
0.21 |
$ |
0.03 |
$ |
0.16 |
$ |
0.24 |
$ |
0.25 |
|||||||||
| Discontinued operations |
— |
— |
0.05 |
— |
0.08 |
||||||||||||||
| Net earnings per share |
$ |
0.21 |
$ |
0.03 |
$ |
0.21 |
$ |
0.24 |
$ |
0.33 |
|||||||||
| Earnings per share attributable to Weyerhaeuser common shareholders, diluted: |
|||||||||||||||||||
| Continuing operations |
$ |
0.21 |
$ |
0.03 |
$ |
0.16 |
$ |
0.24 |
$ |
0.25 |
|||||||||
| Discontinued operations |
— |
— |
0.05 |
— |
0.08 |
||||||||||||||
| Net earnings per share |
$ |
0.21 |
$ |
0.03 |
$ |
0.21 |
$ |
0.24 |
$ |
0.33 |
|||||||||
| Dividends paid per common share |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.62 |
$ |
0.62 |
|||||||||
| Weighted average shares outstanding (in thousands): |
|||||||||||||||||||
| Basic |
750,665 |
752,630 |
743,140 |
751,674 |
687,572 |
||||||||||||||
| Diluted |
754,747 |
756,451 |
747,701 |
755,625 |
691,060 |
||||||||||||||
| Common shares outstanding at end of period (in thousands) |
751,411 |
752,711 |
733,010 |
752,711 |
733,010 |
||||||||||||||
| Weyerhaeuser Company |
|||||||||||||||||||
| Q2.2017 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net earnings |
$ |
157 |
$ |
24 |
$ |
168 |
$ |
181 |
$ |
249 |
|||||||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
(38) |
— |
(58) |
||||||||||||||
| Equity earnings from joint ventures |
— |
— |
(7) |
— |
(12) |
||||||||||||||
| Non-operating pension and other postretirement benefit costs (credits) |
22 |
8 |
(10) |
30 |
(24) |
||||||||||||||
| Interest income and other |
(9) |
(9) |
(10) |
(18) |
(19) |
||||||||||||||
| Interest expense, net of capitalized interest |
99 |
100 |
114 |
199 |
209 |
||||||||||||||
| Income taxes |
24 |
34 |
31 |
58 |
42 |
||||||||||||||
| Operating income from continuing operations |
293 |
157 |
248 |
450 |
387 |
||||||||||||||
| Depreciation, depletion and amortization |
133 |
129 |
133 |
262 |
237 |
||||||||||||||
| Basis of real estate sold |
14 |
10 |
13 |
24 |
30 |
||||||||||||||
| Unallocated pension service costs |
2 |
— |
— |
2 |
2 |
||||||||||||||
| Special items |
12 |
210 |
19 |
222 |
93 |
||||||||||||||
| Adjusted EBITDA* |
$ |
454 |
$ |
506 |
$ |
413 |
$ |
960 |
$ |
749 |
|||||||||
| *Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. |
|||||||||||||||||||
| Special Items Included in Net Earnings (income tax affected) |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ |
157 |
$ |
24 |
$ |
157 |
$ |
181 |
$ |
227 |
|||||||||
| Plum Creek merger- and integration-related costs |
10 |
2 |
4 |
12 |
102 |
||||||||||||||
| Uruguay impairment |
— |
147 |
— |
147 |
— |
||||||||||||||
| Gain on sale of non-strategic asset |
— |
— |
— |
— |
(22) |
||||||||||||||
| Legal expense |
— |
— |
7 |
— |
7 |
||||||||||||||
| Product remediation |
— |
31 |
— |
31 |
— |
||||||||||||||
| Countervailing and antidumping duties |
— |
8 |
— |
8 |
— |
||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders before special items |
167 |
212 |
168 |
379 |
314 |
||||||||||||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
(38) |
— |
(58) |
||||||||||||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
167 |
$ |
212 |
$ |
130 |
$ |
379 |
$ |
256 |
|||||||||
| per share |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders |
$ |
0.21 |
$ |
0.03 |
$ |
0.21 |
$ |
0.24 |
$ |
0.33 |
|||||||||
| Plum Creek merger- and integration-related costs |
0.01 |
— |
— |
0.02 |
0.14 |
||||||||||||||
| Uruguay impairment |
— |
0.20 |
— |
0.19 |
— |
||||||||||||||
| Gain on sale of non-strategic asset |
— |
— |
— |
— |
(0.03) |
||||||||||||||
| Legal expense |
— |
— |
0.01 |
— |
0.01 |
||||||||||||||
| Product remediation |
— |
0.04 |
— |
0.04 |
— |
||||||||||||||
| Countervailing and antidumping duties |
— |
0.01 |
— |
0.01 |
— |
||||||||||||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items |
0.22 |
0.28 |
0.22 |
0.50 |
0.45 |
||||||||||||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
(0.05) |
— |
(0.08) |
||||||||||||||
| Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$ |
0.22 |
$ |
0.28 |
$ |
0.17 |
$ |
0.50 |
$ |
0.37 |
|||||||||
| Weyerhaeuser Company |
|||||||||||
| Q2.2017 Analyst Package |
|||||||||||
| Preliminary results (unaudited) |
|||||||||||
| Consolidated Balance Sheet |
|||||||||||
| in millions |
March 31, |
June 30, |
December 31, |
||||||||
| ASSETS |
|||||||||||
| Current assets: |
|||||||||||
| Cash and cash equivalents |
$ |
455 |
$ |
701 |
$ |
676 |
|||||
| Receivables, less allowances |
472 |
442 |
390 |
||||||||
| Receivables for taxes |
10 |
8 |
84 |
||||||||
| Inventories |
386 |
349 |
358 |
||||||||
| Prepaid expenses and other current assets |
142 |
177 |
114 |
||||||||
| Assets held for sale |
— |
411 |
— |
||||||||
| Total current assets |
1,465 |
2,088 |
1,622 |
||||||||
| Property and equipment, net |
1,544 |
1,534 |
1,562 |
||||||||
| Construction in progress |
230 |
190 |
213 |
||||||||
| Timber and timberlands at cost, less depletion charged to disposals |
14,218 |
13,669 |
14,299 |
||||||||
| Minerals and mineral rights, net |
317 |
314 |
319 |
||||||||
| Investments in and advances to joint ventures |
56 |
33 |
56 |
||||||||
| Goodwill |
40 |
40 |
40 |
||||||||
| Deferred tax assets |
287 |
261 |
293 |
||||||||
| Other assets |
229 |
246 |
224 |
||||||||
| Restricted financial investments held by variable interest entities |
615 |
615 |
615 |
||||||||
| Total assets |
$ |
19,001 |
$ |
18,990 |
$ |
19,243 |
|||||
| LIABILITIES AND EQUITY |
|||||||||||
| Current liabilities: |
|||||||||||
| Current maturities of long-term debt |
$ |
343 |
$ |
668 |
$ |
281 |
|||||
| Accounts payable |
227 |
252 |
233 |
||||||||
| Accrued liabilities |
452 |
585 |
692 |
||||||||
| Liabilities held for sale |
— |
19 |
— |
||||||||
| Total current liabilities |
1,022 |
1,524 |
1,206 |
||||||||
| Long-term debt |
6,263 |
5,936 |
6,329 |
||||||||
| Long-term debt (nonrecourse to the company) held by variable interest entities |
511 |
511 |
511 |
||||||||
| Deferred pension and other postretirement benefits |
1,287 |
1,230 |
1,322 |
||||||||
| Deposit received from contribution of timberlands to related party |
422 |
419 |
426 |
||||||||
| Other liabilities |
281 |
280 |
269 |
||||||||
| Total liabilities |
9,786 |
9,900 |
10,063 |
||||||||
| Total equity |
9,215 |
9,090 |
9,180 |
||||||||
| Total liabilities and equity |
$ |
19,001 |
$ |
18,990 |
$ |
19,243 |
|||||
| Weyerhaeuser Company |
|||||||||||||||||||
| Q2.2017 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Consolidated Statement of Cash Flows |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Cash flows from operations: |
|||||||||||||||||||
| Net earnings |
$ |
157 |
$ |
24 |
$ |
168 |
$ |
181 |
$ |
249 |
|||||||||
| Noncash charges (credits) to income: |
|||||||||||||||||||
| Depreciation, depletion and amortization |
133 |
129 |
147 |
262 |
289 |
||||||||||||||
| Basis of real estate sold |
14 |
10 |
13 |
24 |
30 |
||||||||||||||
| Deferred income taxes, net |
3 |
3 |
38 |
6 |
56 |
||||||||||||||
| Gains on sales of discontinued operations |
— |
— |
— |
— |
— |
||||||||||||||
| Gains on sales of non-strategic assets |
(7) |
(2) |
(10) |
(9) |
(51) |
||||||||||||||
| Pension and other postretirement benefits |
32 |
15 |
1 |
47 |
5 |
||||||||||||||
| Other noncash charges (credits) |
13 |
156 |
26 |
169 |
34 |
||||||||||||||
| Change in: |
|||||||||||||||||||
| Receivables less allowances |
(70) |
(8) |
(43) |
(78) |
(90) |
||||||||||||||
| Receivable for taxes |
(36) |
(17) |
25 |
(53) |
35 |
||||||||||||||
| Inventories |
(28) |
21 |
60 |
(7) |
17 |
||||||||||||||
| Prepaid expenses |
(9) |
(4) |
— |
(13) |
(1) |
||||||||||||||
| Accounts payable and accrued liabilities |
(137) |
192 |
106 |
55 |
36 |
||||||||||||||
| Pension and postretirement contributions |
(22) |
(15) |
(12) |
(37) |
(29) |
||||||||||||||
| Distributions of earnings received from joint ventures |
— |
— |
— |
— |
5 |
||||||||||||||
| Other |
(8) |
(15) |
(27) |
(23) |
(46) |
||||||||||||||
| Net cash from operations |
35 |
489 |
492 |
524 |
539 |
||||||||||||||
| Cash flows from investing activities: |
|||||||||||||||||||
| Capital expenditures: |
|||||||||||||||||||
| Purchases of property and equipment |
(52) |
(74) |
(83) |
(126) |
(140) |
||||||||||||||
| Timberlands reforestation costs |
(23) |
(13) |
(18) |
(36) |
(34) |
||||||||||||||
| Acquisition of timberlands |
— |
— |
(2) |
— |
(8) |
||||||||||||||
| Proceeds from sales of discontinued operations |
— |
— |
— |
— |
— |
||||||||||||||
| Proceeds from sale of assets |
8 |
4 |
13 |
12 |
83 |
||||||||||||||
| Proceeds from contribution of timberlands to related party |
— |
— |
440 |
— |
440 |
||||||||||||||
| Distributions of investment received from joint ventures |
— |
23 |
3 |
23 |
27 |
||||||||||||||
| Cash and cash equivalents acquired in the merger with Plum Creek |
— |
— |
— |
— |
9 |
||||||||||||||
| Other |
(1) |
22 |
(3) |
21 |
(3) |
||||||||||||||
| Cash from (used in) investing activities |
(68) |
(38) |
350 |
(106) |
374 |
||||||||||||||
| Cash flows from financing activities: |
|||||||||||||||||||
| Cash dividends on common shares |
(233) |
(233) |
(228) |
(466) |
(469) |
||||||||||||||
| Cash dividends on preference shares |
— |
— |
(11) |
— |
(11) |
||||||||||||||
| Proceeds from issuance of long-term debt |
— |
— |
300 |
— |
1,398 |
||||||||||||||
| Payments of long-term debt |
— |
— |
(3) |
— |
(723) |
||||||||||||||
| Repurchase of common stock |
— |
— |
(831) |
— |
(1,629) |
||||||||||||||
| Other |
45 |
28 |
8 |
73 |
1 |
||||||||||||||
| Cash used in financing activities |
(188) |
(205) |
(765) |
(393) |
(1,433) |
||||||||||||||
| Net change in cash and cash equivalents |
(221) |
246 |
77 |
25 |
(520) |
||||||||||||||
| Cash and cash equivalents from continuing operations at beginning of period |
$ |
676 |
$ |
455 |
$ |
411 |
$ |
676 |
1,011 |
||||||||||
| Cash and cash equivalents from discontinued operations at beginning of period |
— |
— |
4 |
— |
1 |
||||||||||||||
| Cash and cash equivalents at beginning of period |
$ |
676 |
$ |
455 |
$ |
415 |
$ |
676 |
1,012 |
||||||||||
| Cash and cash equivalents from continuing operations at end of period |
$ |
455 |
$ |
701 |
$ |
485 |
$ |
701 |
485 |
||||||||||
| Cash and cash equivalents from discontinued operations at end of period |
— |
— |
7 |
— |
7 |
||||||||||||||
| Cash and cash equivalents at end of period |
$ |
455 |
$ |
701 |
$ |
492 |
$ |
701 |
$ |
492 |
|||||||||
| Cash paid (received) during the year for: |
|||||||||||||||||||
| Interest, net of amount capitalized |
$ |
120 |
$ |
72 |
$ |
92 |
$ |
192 |
$ |
225 |
|||||||||
| Income taxes |
$ |
59 |
$ |
47 |
$ |
(12) |
$ |
106 |
$ |
(25) |
|||||||||
| Weyerhaeuser Company |
Total Company Statistics |
||||||||||||||||||
| Q2.2017 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Selected Total Company Items |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Pension and postretirement costs: |
|||||||||||||||||||
| Pension and postretirement costs allocated to business segments |
$ |
8 |
$ |
7 |
$ |
8 |
$ |
15 |
$ |
15 |
|||||||||
| Pension and postretirement credits not allocated: |
|||||||||||||||||||
| Unallocated pension service costs |
2 |
— |
— |
2 |
2 |
||||||||||||||
| Non-operating pension and other postretirement benefit costs (credits) |
22 |
8 |
(10) |
30 |
(24) |
||||||||||||||
| Accelerated pension costs included in Plum Creek merger-related costs (not allocated) |
— |
— |
— |
— |
5 |
||||||||||||||
| Total pension and postretirement costs (credits) for continuing operations |
32 |
15 |
(2) |
47 |
(2) |
||||||||||||||
| Pension and postretirement service costs directly attributable to discontinued operations |
— |
— |
3 |
— |
7 |
||||||||||||||
| Total company pension and postretirement costs |
$ |
32 |
$ |
15 |
$ |
1 |
$ |
47 |
$ |
5 |
|||||||||
| Cash spent for capital expenditures for continuing operations |
$ |
(75) |
$ |
(87) |
$ |
(89) |
$ |
(162) |
$ |
(140) |
|||||||||
| Weyerhaeuser Company |
Timberlands Segment |
|||||||||||||||||||
| Q2.2017 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Sales to unaffiliated customers |
$ |
486 |
$ |
469 |
$ |
471 |
$ |
955 |
$ |
858 |
||||||||||
| Intersegment sales |
202 |
163 |
193 |
365 |
415 |
|||||||||||||||
| Total net sales |
688 |
632 |
664 |
1,320 |
1,273 |
|||||||||||||||
| Cost of products sold |
519 |
476 |
509 |
995 |
968 |
|||||||||||||||
| Gross margin |
169 |
156 |
155 |
325 |
305 |
|||||||||||||||
| Selling expenses |
1 |
1 |
2 |
2 |
3 |
|||||||||||||||
| General and administrative expenses |
24 |
23 |
32 |
47 |
60 |
|||||||||||||||
| Research and development expenses |
3 |
4 |
4 |
7 |
8 |
|||||||||||||||
| Charges for integration and restructuring, closures and assets impairments |
— |
147 |
— |
147 |
— |
|||||||||||||||
| Other operating income, net |
(7) |
(7) |
(8) |
(14) |
(20) |
|||||||||||||||
| Operating income and Net contribution to earnings |
$ |
148 |
$ |
(12) |
$ |
125 |
$ |
136 |
$ |
254 |
||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Operating income |
$ |
148 |
$ |
(12) |
$ |
125 |
$ |
136 |
$ |
254 |
||||||||||
| Depreciation, depletion and amortization |
94 |
87 |
95 |
181 |
165 |
|||||||||||||||
| Special items |
— |
147 |
— |
147 |
— |
|||||||||||||||
| Adjusted EBITDA* |
$ |
242 |
$ |
222 |
$ |
220 |
$ |
464 |
$ |
419 |
||||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
| Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Uruguay impairment |
— |
(147) |
— |
(147) |
— |
|||||||||||||||
| Selected Segment Items |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Total decrease (increase) in working capital (1) |
$ |
(37) |
$ |
(5) |
$ |
28 |
$ |
(42) |
$ |
(25) |
||||||||||
| Cash spent for capital expenditures |
$ |
(30) |
$ |
(25) |
$ |
(31) |
$ |
(55) |
$ |
(51) |
||||||||||
| (1) Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR. |
||||||||||||||||||||
| Segment Statistics(2)(3) |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Third Party |
Delivered logs: |
|||||||||||||||||||
| West |
$ |
225 |
$ |
227 |
$ |
232 |
$ |
452 |
$ |
447 |
||||||||||
| South |
148 |
148 |
154 |
296 |
255 |
|||||||||||||||
| North |
27 |
16 |
19 |
43 |
32 |
|||||||||||||||
| Other |
20 |
11 |
7 |
31 |
14 |
|||||||||||||||
| Total delivered logs |
420 |
402 |
412 |
822 |
748 |
|||||||||||||||
| Stumpage and pay-as-cut timber |
12 |
17 |
23 |
29 |
38 |
|||||||||||||||
| Products from international operations |
19 |
21 |
21 |
40 |
37 |
|||||||||||||||
| Recreational and other lease revenue |
14 |
15 |
8 |
29 |
14 |
|||||||||||||||
| Other revenue |
21 |
14 |
7 |
35 |
21 |
|||||||||||||||
| Total |
$ |
486 |
$ |
469 |
$ |
471 |
$ |
955 |
$ |
858 |
||||||||||
| Delivered Logs Third Party Sales Realizations (per ton) |
West |
$ |
104.27 |
$ |
105.84 |
$ |
98.21 |
$ |
105.06 |
$ |
99.39 |
|||||||||
| South |
$ |
34.48 |
$ |
34.48 |
$ |
35.54 |
$ |
34.48 |
$ |
35.87 |
||||||||||
| North |
$ |
59.57 |
$ |
63.49 |
$ |
65.43 |
$ |
60.97 |
$ |
62.95 |
||||||||||
| International |
$ |
28.18 |
$ |
29.73 |
$ |
23.29 |
$ |
28.98 |
$ |
18.59 |
||||||||||
| Delivered Logs Third Party Sales Volumes (tons, thousands) |
West |
2,157 |
2,143 |
2,363 |
4,300 |
4,496 |
||||||||||||||
| South |
4,293 |
4,285 |
4,340 |
8,578 |
7,121 |
|||||||||||||||
| North |
454 |
253 |
292 |
707 |
502 |
|||||||||||||||
| International |
90 |
96 |
89 |
186 |
235 |
|||||||||||||||
| Other |
510 |
292 |
169 |
802 |
338 |
|||||||||||||||
| Fee Harvest Volumes (tons, thousands) |
West |
2,657 |
2,652 |
2,980 |
5,309 |
5,781 |
||||||||||||||
| South |
6,373 |
6,473 |
7,061 |
12,846 |
12,091 |
|||||||||||||||
| North |
622 |
383 |
454 |
1,005 |
714 |
|||||||||||||||
| International |
265 |
319 |
248 |
584 |
547 |
|||||||||||||||
| Other |
371 |
444 |
181 |
815 |
181 |
|||||||||||||||
| (2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations. |
||||||||||||||||||||
| (3) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. |
||||||||||||||||||||
| Weyerhaeuser Company |
Real Estate, Energy and Natural |
|||||||||||||||||||
| Q2.2017 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Sales to unaffiliated customers |
$ |
53 |
$ |
46 |
$ |
38 |
$ |
99 |
$ |
77 |
||||||||||
| Intersegment sales |
— |
— |
— |
— |
— |
|||||||||||||||
| Total net sales |
53 |
46 |
38 |
99 |
77 |
|||||||||||||||
| Cost of products sold |
20 |
16 |
19 |
36 |
39 |
|||||||||||||||
| Gross margin |
33 |
30 |
19 |
63 |
38 |
|||||||||||||||
| Selling expenses |
— |
— |
— |
— |
— |
|||||||||||||||
| General and administrative expenses |
7 |
7 |
8 |
14 |
12 |
|||||||||||||||
| Charges for integration, restructuring, closures and asset impairments |
— |
— |
1 |
— |
1 |
|||||||||||||||
| Other operating costs (income), net |
— |
— |
(2) |
— |
(2) |
|||||||||||||||
| Operating income |
26 |
23 |
12 |
49 |
27 |
|||||||||||||||
| Equity earnings (loss) from joint ventures(1) |
— |
— |
— |
— |
— |
|||||||||||||||
| Net contribution to earnings |
$ |
26 |
$ |
23 |
$ |
12 |
$ |
49 |
$ |
27 |
||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Operating income |
$ |
26 |
$ |
23 |
$ |
12 |
$ |
49 |
$ |
27 |
||||||||||
| Depreciation, depletion and amortization |
3 |
4 |
3 |
7 |
5 |
|||||||||||||||
| Basis of real estate sold |
14 |
10 |
13 |
24 |
30 |
|||||||||||||||
| Adjusted EBITDA* |
$ |
43 |
$ |
37 |
$ |
28 |
$ |
80 |
$ |
62 |
||||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
| Selected Segment Items |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Cash spent for capital expenditures |
$ |
— |
$ |
(1) |
$ |
(1) |
$ |
(1) |
$ |
(1) |
||||||||||
| Segment Statistics |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Net Sales |
Real Estate |
$ |
37 |
$ |
27 |
$ |
26 |
$ |
64 |
$ |
56 |
|||||||||
| Energy and natural resources |
16 |
19 |
12 |
35 |
21 |
|||||||||||||||
| Total |
$ |
53 |
$ |
46 |
$ |
38 |
$ |
99 |
$ |
77 |
||||||||||
| Acres sold |
Real Estate |
13,257 |
10,003 |
10,020 |
23,260 |
25,245 |
||||||||||||||
| Price per acre |
Real Estate |
$ |
2,403 |
$ |
2,714 |
$ |
2,555 |
$ |
2,537 |
$ |
2,210 |
|||||||||
| Weyerhaeuser Company |
Wood Products Segment |
|||||||||||||||||||
| Q2.2017 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Sales to unaffiliated customers |
$ |
1,154 |
$ |
1,293 |
$ |
1,146 |
$ |
2,447 |
$ |
2,125 |
||||||||||
| Intersegment sales |
— |
— |
22 |
— |
44 |
|||||||||||||||
| Total net sales |
1,154 |
1,293 |
1,168 |
2,447 |
2,169 |
|||||||||||||||
| Cost of products sold |
926 |
1,002 |
957 |
1,928 |
1,819 |
|||||||||||||||
| Gross margin |
228 |
291 |
211 |
519 |
350 |
|||||||||||||||
| Selling expenses |
21 |
19 |
20 |
40 |
42 |
|||||||||||||||
| General and administrative expenses |
32 |
32 |
30 |
64 |
57 |
|||||||||||||||
| Research and development expenses |
1 |
— |
— |
1 |
1 |
|||||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
1 |
2 |
4 |
3 |
5 |
|||||||||||||||
| Other operating costs (income), net |
1 |
61 |
1 |
62 |
2 |
|||||||||||||||
| Operating income and Net contribution to earnings |
$ |
172 |
$ |
177 |
$ |
156 |
$ |
349 |
$ |
243 |
||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Operating income |
$ |
172 |
$ |
177 |
$ |
156 |
$ |
349 |
$ |
243 |
||||||||||
| Depreciation, depletion and amortization |
35 |
36 |
33 |
71 |
63 |
|||||||||||||||
| Special items |
— |
61 |
— |
61 |
— |
|||||||||||||||
| Adjusted EBITDA* |
$ |
207 |
$ |
274 |
$ |
189 |
$ |
481 |
$ |
306 |
||||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
| Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Countervailing and antidumping duties |
$ |
— |
$ |
(11) |
$ |
— |
$ |
(11) |
$ |
— |
||||||||||
| Product remediation |
— |
(50) |
— |
(50) |
— |
|||||||||||||||
| Total |
$ |
— |
$ |
(61) |
$ |
— |
$ |
(61) |
$ |
— |
||||||||||
| Selected Segment Items |
||||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||||
| Total decrease (increase) in working capital (1) |
$ |
(122) |
$ |
113 |
$ |
35 |
$ |
(9) |
$ |
(97) |
||||||||||
| Cash spent for capital expenditures |
$ |
(44) |
$ |
(61) |
$ |
(52) |
$ |
(105) |
$ |
(81) |
||||||||||
| (1) Working capital does not include cash balances. |
||||||||||||||||||||
| Segment Statistics |
||||||||||||||||||||
| in millions, except for third-party sales realizations |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Structural Lumber |
Third party net sales |
$ |
478 |
$ |
538 |
$ |
498 |
$ |
1,016 |
$ |
917 |
|||||||||
| Third party sales realizations |
$ |
413 |
$ |
441 |
$ |
399 |
$ |
427 |
$ |
382 |
||||||||||
| Third party sales volumes (2) |
1,158 |
1,218 |
1,249 |
2,376 |
2,401 |
|||||||||||||||
| Production volumes |
1,152 |
1,146 |
1,205 |
2,298 |
2,334 |
|||||||||||||||
| Engineered Solid |
Third party net sales |
$ |
117 |
$ |
130 |
$ |
115 |
$ |
247 |
$ |
224 |
|||||||||
| Third party sales realizations |
$ |
1,881 |
$ |
1,979 |
$ |
1,922 |
$ |
1,931 |
$ |
1,946 |
||||||||||
| Third party sales volumes (2) |
6.2 |
6.6 |
6.0 |
12.8 |
11.5 |
|||||||||||||||
| Production volumes |
6.3 |
6.6 |
5.9 |
12.9 |
11.5 |
|||||||||||||||
| Engineered |
Third party net sales |
$ |
73 |
$ |
85 |
$ |
73 |
$ |
158 |
$ |
139 |
|||||||||
| Third party sales realizations |
$ |
1,481 |
$ |
1,522 |
$ |
1,471 |
$ |
1,503 |
$ |
1,488 |
||||||||||
| Third party sales volumes (2) |
49 |
57 |
50 |
106 |
94 |
|||||||||||||||
| Production volumes |
50 |
53 |
46 |
103 |
92 |
|||||||||||||||
| Oriented Strand |
Third party net sales |
$ |
203 |
$ |
225 |
$ |
182 |
$ |
428 |
$ |
345 |
|||||||||
| Third party sales realizations |
$ |
263 |
$ |
295 |
$ |
240 |
$ |
279 |
$ |
227 |
||||||||||
| Third party sales volumes (2) |
769 |
764 |
761 |
1,533 |
1,520 |
|||||||||||||||
| Production volumes |
758 |
754 |
733 |
1,512 |
1,482 |
|||||||||||||||
| Softwood Plywood (square feet 3/8") |
Third party net sales |
$ |
44 |
$ |
47 |
$ |
50 |
$ |
91 |
$ |
85 |
|||||||||
| Third party sales realizations |
$ |
377 |
$ |
380 |
$ |
382 |
$ |
379 |
$ |
352 |
||||||||||
| Third party sales volumes (2) |
118 |
123 |
131 |
241 |
241 |
|||||||||||||||
| Production volumes |
97 |
99 |
111 |
196 |
199 |
|||||||||||||||
| Medium Density |
Third party net sales |
$ |
47 |
$ |
51 |
$ |
47 |
$ |
98 |
$ |
64 |
|||||||||
| Third party sales realizations |
$ |
795 |
$ |
845 |
$ |
772 |
$ |
820 |
$ |
769 |
||||||||||
| Third party sales volumes (2) |
59 |
60 |
60 |
119 |
83 |
|||||||||||||||
| Production volumes |
56 |
63 |
62 |
119 |
87 |
|||||||||||||||
| (2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
||||||||||||||||||||
| Weyerhaeuser Company |
Unallocated Items |
||||||||||||||||||
| Q2.2017 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses associated with financing and the elimination of intersegment profit in inventory, equity earnings from our timberland venture, and the LIFO reserve. |
|||||||||||||||||||
| Contribution to Earnings |
|||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||
| Unallocated corporate function expenses |
$ |
(19) |
$ |
(17) |
$ |
(24) |
$ |
(36) |
$ |
(41) |
|||||||||
| Unallocated share-based compensation |
(6) |
— |
1 |
(6) |
(1) |
||||||||||||||
| Unallocated pension service costs |
(2) |
— |
— |
(2) |
(2) |
||||||||||||||
| Foreign exchange gains (losses) |
(3) |
— |
1 |
(3) |
14 |
||||||||||||||
| Elimination of intersegment profit in inventory and LIFO |
(6) |
(3) |
(2) |
(9) |
(8) |
||||||||||||||
| Gain on sale of non-strategic asset |
3 |
1 |
8 |
4 |
44 |
||||||||||||||
| Charges for integration and restructuring, closures and asset impairments: |
|||||||||||||||||||
| Plum Creek merger- and integration-related costs |
(12) |
(2) |
(8) |
(14) |
(118) |
||||||||||||||
| Other restructuring, closures and asset impairments |
— |
— |
(1) |
— |
(1) |
||||||||||||||
| Other |
(8) |
(10) |
(20) |
(18) |
(24) |
||||||||||||||
| Operating income (loss) |
(53) |
(31) |
(45) |
(84) |
(137) |
||||||||||||||
| Equity earnings from joint venture (1) |
— |
— |
7 |
— |
12 |
||||||||||||||
| Non-operating pension and other postretirement benefit (costs) credits (2) |
(22) |
(8) |
10 |
(30) |
24 |
||||||||||||||
| Interest income and other |
9 |
9 |
10 |
18 |
19 |
||||||||||||||
| Net contribution to earnings |
$ |
(66) |
$ |
(30) |
$ |
(18) |
$ |
(96) |
$ |
(82) |
|||||||||
| (1) 2016 results include equity earnings from our Timberland Venture, which was consolidated as a wholly-owned subsidiary effective August 31, 2016. |
|||||||||||||||||||
| (2) During Q1 2017 we adopted ASU 2017-07. This ASU requires us to show components of pension and other post retirement benefit costs (interest, expected return on plan assets, amortization of actuarial gains or losses, amortization of prior service credits or costs) on the Consolidated Statement of Operations as a line item outside of "Operating income." We reclassified these components for all periods shown above. |
|||||||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
|||||||||||||||||||
| in millions |
Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
||||||||||||||
| Operating income (loss) |
$ |
(53) |
$ |
(31) |
$ |
(45) |
$ |
(84) |
$ |
(137) |
|||||||||
| Depreciation, depletion and amortization |
1 |
2 |
2 |
3 |
4 |
||||||||||||||
| Unallocated pension service costs |
2 |
— |
— |
2 |
2 |
||||||||||||||
| Special items |
12 |
2 |
19 |
14 |
93 |
||||||||||||||
| Adjusted EBITDA* |
$ |
(38) |
$ |
(27) |
$ |
(24) |
$ |
(65) |
$ |
(38) |
|||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
|||||||||||||||||||
| Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) |
|||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Plum Creek merger- and integration-related costs |
(12) |
(2) |
(8) |
(14) |
(118) |
||||||||||||||
| Gain on sale of non-strategic asset |
— |
— |
— |
— |
36 |
||||||||||||||
| Legal expense |
— |
— |
(11) |
— |
(11) |
||||||||||||||
| Total |
$ |
(12) |
$ |
(2) |
$ |
(19) |
$ |
(14) |
$ |
(93) |
|||||||||
| Unallocated Selected Items |
|||||||||||||||||||
| Q1.2017 |
Q2.2017 |
Q2.2016 |
YTD.2017 |
YTD.2016 |
|||||||||||||||
| Cash spent for capital expenditures |
$ |
(1) |
$ |
— |
$ |
(5) |
$ |
(1) |
$ |
(7) |
|||||||||
SOURCE Weyerhaeuser Company
Share this article