Weyerhaeuser Reports Third Quarter Results - Net earnings rise 34 percent compared with third quarter 2012 on 23 percent improvement in net sales

- Acquisition of Longview Timber LLC closed on July 23

FEDERAL WAY, Wash., Oct. 25, 2013 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings to common shareholders of $157 million, or 27 cents per diluted share, for the third quarter. This compares with net earnings of $117 million, or 22 cents per diluted share, for the same period last year. Net sales for the third quarter of 2013 totaled $2.2 billion, compared with net sales of $1.8 billion for the third quarter of 2012.

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

"Solid operating results in the quarter contributed to a significant improvement in our year-over-year earnings," said Doyle Simons, president and chief executive officer. "In the quarter, we also closed on our previously announced acquisition of Longview Timber and are actively engaged in leveraging our silviculture, logistics and marketing expertise to realize the full potential of this valuable asset. We will continue to focus on improving performance in all of our businesses and generating additional value for our shareholders."





WEYERHAEUSER FINANCIAL HIGHLIGHTS

2013

2013

2012

(millions, except per share data)

2Q

3Q

3Q

Net sales

$2,141

$2,181

$1,772

Net earnings attributable to Weyerhaeuser common shareholders

$196

$157

$117

Weighted average shares outstanding, diluted(1)

558

587

542

Earnings per diluted share

$0.35

$0.27

$0.22

Net cash from operations

$374

$343

$122

Net change in cash and cash equivalents(2)

$1,723

($965)

($253)

Cash and cash equivalents at end of period(2)

$2,362

$1,397

$608



(1) 

Weyerhaeuser's common shares outstanding increased to approximately 578 million basic shares, or 583 million shares on a diluted basis, during the second quarter of 2013 following the issuance of 29 million common shares in conjunction with the acquisition of Longview Timber LLC. The company also issued 13.8 million mandatory convertible preference shares. During the third quarter of 2013, the company issued an additional 4.35 million common shares in connection with the exercise of an overallotment option.



(2) 

During the second and third quarters of 2013, Weyerhaeuser received $2,060 million from the issuance of debt and common and mandatory convertible preference shares related to the acquisition of Longview Timber LLC. These funds are recorded 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. Subsequent to the end of the third quarter, the company used the remaining funds for repayment of Longview Timber indebtedness assumed in the acquisition.



TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

2Q 2013

3Q 2013

Change

Net sales to unaffiliated customers

$333

$353

$20

Intersegment sales

166

194

28

Total net sales

$499

$547

$48

Contribution to earnings

$114

$118

$4





3Q 2013 Performance – Seasonally lower earnings from the company's legacy Western timberlands were largely offset by a partial quarter of earnings from the Longview Timber acquisition and improved earnings from Southern timberlands. Earnings from disposition of non-strategic timberlands also increased.

In the West, selling prices declined across domestic and export markets, and road and silviculture expenses increased. Seasonally lower fee harvest from legacy Western timberlands was more than offset by a partial quarter of harvest from the Longview Timber acquisition. Southern log realizations were comparable to the second quarter, and fee harvest volumes rose seasonally.

4Q 2013 Outlook - Weyerhaeuser anticipates comparable earnings from the Timberlands segment in the fourth quarter. In the West, the company expects improved domestic log prices and increased fee harvest volumes due to a full quarter of harvest from the Longview Timber acquisition. In the South, Weyerhaeuser anticipates seasonally higher silviculture costs, partially offset by increased fee harvest volumes. The company also expects slightly lower earnings from disposition of non-strategic timberlands.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

2Q 2013

3Q 2013

Change

Net sales to unaffiliated customers

$1,065

$1,030

($35)

Intersegment sales

18

19

1

Total net sales

$1,083

$1,049

($34)

Contribution to earnings

$136

$79

($57)





3Q 2013 Performance - Average selling prices for oriented strand board declined 26 percent compared with the second quarter, and selling prices for lumber fell 7 percent. These declines were partially offset by improved average selling prices for engineered wood products, higher sales volumes across all product lines, and lower Western log costs.

4Q 2013 Outlook - Weyerhaeuser anticipates lower earnings from the Wood Products segment in the fourth quarter due to seasonally weaker sales volumes and higher log costs.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

2Q 2013

3Q 2013

Change

Net sales

$476

$474

($2)

Contribution to earnings

$57

$47

($10)





3Q 2013 Performance - Costs associated with completion of a scheduled annual maintenance outage for liquid packaging operations were higher than anticipated. Fiber costs rose due to wet weather in the South, and chemical costs also increased. These factors more than offset a slight improvement in average pulp price realizations due to mix.

4Q 2013 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the fourth quarter. The company anticipates modestly higher average pulp sales realizations and volumes, lower chemical costs, improved productivity for liquid packaging operations, and slightly lower maintenance expense.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

2Q 2013

3Q 2013

Change

Net sales

$267

$324

$57

Contribution to earnings

$14

$33

$19





3Q 2013 Performance - Home closings increased seasonally to 768 single-family homes and average margins on homes closed improved, primarily due to mix. Third quarter results include earnings of $9 million from land and lot sales, compared with earnings of $2 million in the second quarter.

At the end of the third quarter the backlog of homes sold, but not closed, totaled 1,435 units, compared with 1,055 units one year ago.

4Q 2013 Outlook - Weyerhaeuser expects significantly higher earnings from single-family homebuilding in the fourth quarter. Single-family closing volumes should increase to over 1,100 homes. The company anticipates higher average closing prices and higher selling-related expenses due to the additional closing volumes.

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 2012, we generated $7.1 billion in sales and employed approximately 13,200 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.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Oct. 25 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on Oct. 25.

To join the conference call from within North America, dial 877-296-9413 (access code – 86490025) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 86490025). Replays will be available for two weeks at 855-859-2056 (access code – 86490025) from within North America and at 404-537-3406 (access code – 86490025) from outside North America.

FORWARD LOOKING STATEMENTS

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

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

This release contains forward-looking statements regarding the company's expectations during the fourth quarter of 2013, including with respect to earnings, domestic and export log prices, fee harvest levels and realizations, silviculture costs, dispositions of non-strategic timberlands, average selling prices and sales volumes across the Wood Products product lines, average sales realizations and volumes for pulp and liquid packaging board, chemical and maintenance costs, productivity for liquid packaging operations, single-family closing volumes, average home closing prices and mix, and selling-related expenses.

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

  • the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar;
  • market demand for the company's products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
  • performance of the company's manufacturing operations, including maintenance requirements;
  • the level of competition from domestic and foreign producers;
  • the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
  • raw material prices;
  • energy prices;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • transportation costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of company stock on charges for stock-based compensation;
  • changes in accounting principles; and
  • other factors described under "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q.

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

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








Exhibit 99.2

Weyerhaeuser Company

Q3.2013 Analyst Package




Preliminary results, subject to audit






Consolidated Statement of Operations











in millions

Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012











Net Sales

$    2,141


$   2,181


$   1,772


$   6,273


$   5,059

Cost of products sold

1,664


1,728


1,424


4,925


4,230

Gross margin

477


453


348


1,348


829

Selling expenses

54


56


49


161


138

General and administrative expenses

108


112


107


338


310

Research and development expenses

8


8


8


23


23

Charges for restructuring, closures and impairments

6


2


10


12


26

Other operating income, net

(10)


(2)


(28)


(30)


(147)

Operating income

311


277


202


844


479

Interest income and other

10


21


15


42


38

Interest expense, net of capitalized interest

(81)


(95)


(87)


(258)


(260)

Earnings before income taxes

240


203


130


628


257

Income taxes

(42)


(36)


(13)


(119)


(15)

Net earnings

198


167


117


509


242

Dividends on preference shares

(2)


(10)



(12)


Net earnings attributable to Weyerhaeuser common shareholders

$        196


$      157


$      117


$      497


$      242


Per Share Information



Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012











Basic earnings per share attributable to Weyerhaeuser common shareholders

$        0.35


$       0.27


$       0.22


$       0.89


$       0.45

Diluted earnings per share attributable to Weyerhaeuser common shareholders

$        0.35


$       0.27


$       0.22


$       0.88


$       0.45

Dividends paid per common share

$        0.20


$       0.22


$       0.15


$       0.59


$       0.45

Weighted average shares outstanding (in thousands):










Basic

552,855


582,828


539,094


560,505


538,146

Diluted

557,588


587,179


542,311


565,383


540,694

Common shares outstanding at end of period (in thousands)

577,874


582,578


540,672


582,578


540,672











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











in millions

Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012











Net earnings

$         198


$        167


$        117


$        509


$        242

Interest income and other

(10)


(21)


(15)


(42)


(38)

Interest expense, net of capitalized interest

81


95


87


258


260

Income taxes

42


36


13


119


15

Operating income

311


277


202


844


479

Depreciation, depletion and amortization

111


120


112


343


338

Non-operating pension and postretirement costs

10


11


7


31


21

Special items





(95)

Capitalized interest included in cost of products sold

13


10


6


32


28

Adjusted EBITDA, excluding special items*

$        445


$      418


$      327


$   1,250


$      771

* Non-GAAP measure





















Weyerhaeuser Company




Q3.2013 Analyst Package






Preliminary results, subject to audit






Consolidated Balance Sheet







in millions

June 30,

2013


September 30,

2013


December 31,

2012


ASSETS






Forest Products:






Current assets:






    Cash and cash equivalents

$        908


$               898


$             893

    Receivables, less allowances

589


586


474

    Receivables for taxes

43


31


95

    Inventories

561


533


531

    Prepaid expenses

96


114


83

    Deferred tax assets

144


113


65

    Restricted financial investments held by variable interest entities



184

        Total current assets

2,341


2,275


2,325

Property and equipment, net

2,706


2,709


2,859

Construction in progress

72


101


50

Timber and timberlands at cost, less depletion charged to disposals

3,949


6,603


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

186


186


192

Goodwill

42


42


40

Deferred tax assets

64


66


189

Other assets

349


325


358

Restricted financial investments held by variable interest entities

615


615


615


11,774


13,416


10,589

Real Estate:






Cash and cash equivalents

4


5


5

Receivables, less allowances

74


77


72

Real estate in process of development and for sale

783


851


682

Land being processed for development

940


932


927

Investments in and advances to equity affiliates

20


20


21

Deferred tax assets

201


195


202

Other assets

112


113


94


2,134


2,193


2,003

Total assets

$ 13,908


$        15,609


$      12,592







LIABILITIES AND EQUITY






Forest Products:






Current liabilities:






    Notes payable

$            2


$                   2


$               —

    Current maturities of long-term debt

163



340

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



161

    Accounts payable

341


362


329

    Accrued liabilities

573


623


570

        Total current liabilities

1,079


987


1,400

Long-term debt

3,842


5,459


3,842

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

511


511


511

Deferred income taxes

38


44


Deferred pension and other postretirement benefits

1,785


1,727


1,930

Other liabilities

446


438


499


7,701


9,166


8,182

Real Estate:






Long-term debt

109


109


109

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

4


5


1

Other liabilities

188


212


187


301


326


297

Total liabilities

8,002


9,492


8,479

Equity:






Total Weyerhaeuser shareholders' interest

5,868


6,078


4,070

Noncontrolling interests

38


39


43

Total equity

5,906


6,117


4,113

Total liabilities and equity

$ 13,908


$        15,609


$      12,592













Weyerhaeuser Company



Q3.2013 Analyst Package





Preliminary results, subject to audit






Consolidated Statement of Cash Flows











in millions

Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012

Cash flows from operations:










Net earnings

$    198


$            167


$            117


$             509


$            242

Noncash charges (credits) to income:










    Depreciation, depletion and amortization

111


120


112


343


338

    Deferred income taxes, net

23


24


62


73


69

    Pension and other postretirement benefits

28


27


19


79


(39)

    Share-based compensation expense

10


12


10


34


28

    Charges for impairment of assets

2


2


7


5


19

    Net gains on dispositions of assets

(14)


(21)


(22)


(42)


(39)

    Foreign exchange transaction (gains) losses

4


(2)


(10)


6


(8)

Change in:










    Receivables less allowances

45


8


(10)


(112)


(33)

    Receivable for taxes

22


12


(91)


64


(75)

    Inventories

32


36


(22)



(34)

    Real estate and land

(62)


(58)


(47)


(179)


(95)

    Prepaid expenses

(1)


(2)


2


(16)


(18)

    Accounts payable and accrued liabilities

34


77


14


45


23

    Deposits on land positions and other assets

(9)


(1)


(11)


(11)


11

Pension and postretirement contributions

(32)


(35)


(41)


(104)


(109)

Other

(17)


(23)


33


(38)


49

Net cash from operations

374


343


122


656


329











Cash flows from investing activities:










Property and equipment

(47)


(69)


(75)


(151)


(197)

Timberlands reforestation

(8)


(7)


(5)


(28)


(22)

Acquisition of Longview Timber LLC, net of cash acquired


(1,581)



(1,581)


Proceeds from sale of assets

8


1


12


15


36

Proceeds of investments (payments of liabilities) held by special purpose entities

22



(97)


22


(97)

Other

(4)


9


(1)


5


(1)

Cash from investing activities

(29)


(1,647)


(166)


(1,718)


(281)











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



494


Cash dividends on common shares

(109)


(128)


(81)


(330)


(242)

Change in book overdrafts

4


1


(12)


8


(32)

Payments on debt

(21)


(163)


(181)


(340)


(187)

Exercises of stock options

51


9


66


141


73

Other

3


10


(1)


22


(5)

Cash from financing activities

1,378


339


(209)


1,561


(393)











Net change in cash and cash equivalents

1,723


(965)


(253)


499


(345)

Cash and cash equivalents at beginning of period

639


2,362


861


898


953

Cash and cash equivalents at end of period

$ 2,362


$         1,397


$            608


$          1,397


$            608

Cash paid (received) during the year for:










    Interest, net of amount capitalized

$      55


$            109


$            122


$             275


$            290

    Income taxes

$      (4)


$                2


$                1


$               (4)


$             (14)

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.
















Total Company Statistics

Weyerhaeuser Company

Q3.2013 Analyst Package



Preliminary results, subject to audit





Special Items Included in Net Earnings











in millions

Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012

Net earnings attributable to Weyerhaeuser common shareholders

$   196


$            157


$      117


$            497


$            242

Restructuring, impairments and other charges





10

Gain on postretirement plan amendment





(67)

Tax settlements





(8)

Gain on sale of property





(4)

Net earnings attributable to Weyerhaeuser common shareholders before special items

$   196


$            157


$      117


$            497


$            173







Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012











Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$  0.35


$           0.27


$     0.22


$           0.88


$           0.45

Restructuring, impairments and other charges





0.02

Gain on postretirement plan amendment





(0.12)

Tax settlements





(0.02)

Gain on sale of property





(0.01)

Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items

$  0.35


$           0.27


$     0.22


$           0.88


$           0.32


Selected Total Company Items


in millions

Q2


Q3


Year-to-date


June 30,

2013


September 30,

2013


September 30,

2012


September 30,

2013


September 30,

2012











Depreciation, depletion and amortization:










Cost of products sold

$    102


$             110


$       102


$             315


$             307

Selling, general and administrative expenses

9


10


10


28


31

Total depreciation, depletion and amortization

$    111


$             120


$       112


$             343


$             338










Pension and postretirement costs:










Pension and postretirement costs allocated to business segments

$      16


$               16


$         12


$               46


$               39

Pension and postretirement costs not allocated

10


11


7


31


21

Total company pension and postretirement costs

$      26


$               27


$         19


$               77


$               60











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

$    161


$             138


$       (29)


$             (35)


$             (74)

Cash spent for capital expenditures

$    (55)


$             (76)


$       (80)


$           (179)


$           (219)







(1)Working capital does not include cash balances.












Weyerhaeuser Company

Timberlands Segment

Q3.2013 Analyst Package





Preliminary results, subject to audit




















Segment Statement of Operations












in millions


Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Sales to unaffiliated customers

$      333


$      353


$     267


$       979


$       779

Intersegment sales

166


194


162


584


498

Total net sales

499


547


429


1,563


1,277

Cost of products sold

365


407


336


1,167


1,002

Gross margin

134


140


93


396


275

Selling expenses

2


3


3


8


7

General and administrative expenses

25


27


21


77


65

Research and development expenses

5


4


4


13


13

Charges for restructuring, closures and impairments




2


Other operating income, net

(11)


(11)


(14)


(37)


(35)

Operating income

113


117


79


333


225

Interest income and other

1


1


1


3


2

Net contribution to earnings

$     114


$     118


$      80


$     336


$     227












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












in millions

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Operating income

$     113


$     117


$      79


$     333


$     225

Depreciation, depletion and amortization

34


45


35


115


104

Adjusted EBITDA, excluding special items*

$     147


$     162


$   114


$     448


$     329

* Non-GAAP measure





















Selected Segment Items













Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital(1)

$      (21)


$        31


$       19


$        —


$         16

Cash spent for capital expenditures

$      (18)


$      (16)


$     (17)


$       (52)


$       (44)

(1)Working capital does not include cash balances.





















Segment Statistics














Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Third Party

Net Sales

(millions)

Logs:










    West

$      208


$      213


$     132


$       598


$       408

    South

65


66


60


192


166

    Canada

2


6


5


15


14

Total logs

275


285


197


805


588

Pay as cut timber sales

4


2


3


7


9

Chip sales

2


2


4


7


14

Timberlands exchanges

14


28


24


44


39

Higher and better use land sales

5


2


4


10


13

Minerals, oil and gas

9


9


8


26


22

Products from international operations

22


24


26


68


80

Other products

2


1


1


12


14

Total

$      333


$      353


$     267


$       979


$       779

Logs

Third Party Sales

Realizations

(per cubic meter)

West

$ 115.11


$ 104.73


$  89.28


$  108.33


$    94.09

South

$   43.47


$   43.32


$  42.04


$    43.42


$    41.26

Canada

$   36.38


$   38.77


$  35.23


$    37.38


$    35.74

International

$   25.00


$   25.07


$  23.76


$    24.75


$    23.45

Logs

Third Party Sales

Volumes

(cubic meters,

thousands)

West

1,812


2,037


1,480


5,523


4,339

South

1,507


1,514


1,430


4,420


4,012

Canada

38


141


133


383


392

International

77


100


99


245


259

Total

3,434


3,792


3,142


10,571


9,002

Logs

Fee Harvest Volumes

(cubic meters,

thousands)

West

1,921


2,305


1,784


6,221


5,294

South

2,828


2,928


2,809


8,589


8,311

International

167


415


198


779


531

Total

4,916


5,648


4,791


15,589


14,136














Wood Products Segment

Weyerhaeuser Company

Q3.2013 Analyst Package





Preliminary results, subject to audit



















Segment Statement of Operations  











in millions

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Sales to unaffiliated customers

$  1,065


$  1,030


$    816


$    3,083


$    2,226

Intersegment sales

18


19


18


55


58

Total net sales

1,083


1,049


834


3,138


2,284

Cost of products sold

884


905


713


2,559


2,032

Gross margin

199


144


121


579


252

Selling expenses

24


24


23


74


65

General and administrative expenses

36


37


31


109


89

Research and development expenses

1


2


2


4


4

Charges for restructuring, closures and impairments

1


1


2


2


5

Other operating costs (income), net

1


1


4


(3)


8

Operating income

136


79


59


393


81

Interest income and other





1

Net contribution to earnings

$   136


$      79


$     59


$     393


$        82











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











in millions

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Operating income

$   136


$      79


$     59


$     393


$        81

Depreciation, depletion and amortization

31


31


33


93


100

Special items





(6)

Adjusted EBITDA, excluding special items*

$   167


$   110


$     92


$     486


$     175

* Non-GAAP measure




















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












Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Gain on sale of property

$      —


$      —


$      —


$        —


$           6

Total

$      —


$      —


$     —


$        —


$          6











Selected Segment Items












Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital(1)

$       75


$       74


$    (21)


$       (45)


$     (128)

Cash spent for capital expenditures

$     (16)


$     (26)


$    (16)


$       (52)


$       (37)

(1)Working capital does not include cash balances.




















Segment Statistics











in millions, except for third-party sales realizations

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Structural Lumber

(board feet)

Third party net sales

$     502


$     480


$    363


$    1,433


$    1,024

Third party sales realizations

$     434


$     404


$    359


$       425


$       341

Third party sales volumes(1)

1,156


1,189


1,013


3,370


3,006

Production volumes

1,053


1,040


945


3,114


2,907

Outside purchase volumes

77


92


69


271


148

Engineered Solid

Section

(cubic feet)

Third party net sales

$       84


$       97


$      76


$       263


$       211

Third party sales realizations

$  1,920


$  1,963


$ 1,800


$    1,913


$    1,806

Third party sales volumes(1)

4.4


4.9


4.2


13.7


11.7

Production volumes

4.6


4.6


4.3


13.8


11.8

Outside purchase volumes

0.4


0.3


0.4


1.6


1.6

Engineered

I-joists

(lineal feet)

Third party net sales

$       60


$       68


$      53


$       184


$       143

Third party sales realizations

$  1,358


$  1,428


$ 1,248


$    1,364


$    1,246

Third party sales volumes(1)

44


48


43


135


115

Production volumes

42


44


39


130


110

Outside purchase volumes

1


2


3


6


7

Oriented Strand

Board

(square feet 3/8')

Third party net sales

$     224


$     188


$    169


$       648


$       418

Third party sales realizations

$     332


$     246


$    268


$       309


$       227

Third party sales volumes(1)

675


762


630


2,094


1,838

Production volumes

663


725


642


2,050


1,869

Outside purchase volumes

56


49


60


173


140

Softwood Plywood

(square feet 3/8')

Third party net sales

$       41


$       38


$      34


$       115


$         83

Third party sales realizations

$     378


$     344


$    356


$       364


$       334

Third party sales volumes(1)

108


108


95


315


249

Production volumes

63


62


54


186


155

Outside purchase volumes

33


40


39


115


93


(1)Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.







Weyerhaeuser Company

Cellulose Fibers Segment

Q3.2013 Analyst Package





Preliminary results, subject to audit




















Segment Statement of Operations












in millions


Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Total net sales

$   476


$   474


$   459


$  1,424


$  1,391

Cost of products sold

394


406


364


1,224


1,175

Gross margin

82


68


95


200


216

Selling expenses

5


5


4


14


13

General and administrative expenses

21


21


19


62


56

Research and development expenses

2


2


2


6


6

Other operating income, net

(5)


(6)


(5)


(18)


(18)

Operating income

59


46


75


136


159

Interest income and other

(2)


1


3


(1)


3

Net contribution to earnings

$     57


$     47


$     78


$     135


$     162












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












in millions


Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Operating income

$     59


$     46


$     75


$     136


$     159

Depreciation, depletion and amortization

39


38


37


116


110

Adjusted EBITDA, excluding special items*

$     98


$     84


$   112


$     252


$     269

* Non-GAAP measure





















Selected Segment Items














Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital(1)

$      12


$      19


$    (20)


$         24


$         49

Cash spent for capital expenditures

$    (17)


$    (28)


$    (45)


$       (62)


$     (134)

(1)Working capital does not include cash balances.





















Segment Statistics














Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Pulp

(air-dry  metric

tons)

Third party net sales (millions)

$    369


$    371


$    354


$    1,111


$    1,069

Third party sales realizations

$    797


$    805


$    818


$       799


$       818

Third party sales volumes (thousands)

462


460


432


1,389


1,306

Production volumes (thousands)

463


457


453


1,365


1,308

Liquid

Packaging

Board

(tons)

Third party net sales (millions)

$      86


$      83


$      84


$       254


$       257

Third party sales realizations

$ 1,079


$ 1,082


$ 1,155


$    1,080


$    1,171

Third party sales volumes (thousands)

81


76


74


235


220

Production volumes (thousands)

77


67


77


222


220


















Weyerhaeuser Company

Real Estate Segment

Q3.2013 Analyst Package




Preliminary results, subject to audit


















Segment Statement of Operations











in millions

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Total net sales

$   267


$   324


$   230


$     787


$     663

Cost of products sold

210


248


175


618


536

Gross margin

57


76


55


169


127

Selling expenses

23


24


19


65


53

General and administrative expenses

19


20


17


57


49

Charges for restructuring, closures and impairments

3


1


3


5


5

Other operating income, net

(1)


(1)



(2)


(1)

Operating income

13


32


16


44


21

Interest income and other

1


1


1


3


3

Net contribution to earnings

$     14


$     33


$     17


$        47


$       24











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











in millions

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Operating income

$     13


$     32


$     16


$        44


$       21

Depreciation, depletion and amortization

3


4


3


10


8

Capitalized interest included in cost of products sold

12


9


5


28


22

Adjusted EBITDA, excluding special items*

$     28


$     45


$     24


$        82


$       51

* Non-GAAP measure




















Selected Segment Items












Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Cash from operations

$    (56)


$      (2)


$    (24)


$     (129)


$       (13)

Cash spent for capital expenditures

$      (2)


$      (5)


$      (1)


$         (9)


$         (2)











Segment Statistics












Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Net sales:










Single-family housing

$    257


$    305


$    229


$       745


$      550

Land

10


18


1


39


109

Other


1



3


4

Total net sales

$    267


$    324


$    230


$       787


$      663

Single-family homes sold

943


765


637


2,528


2,098

Single-family homes closed

636


768


615


1,867


1,472

Single-family homes sold but not closed (backlog)

1,438


1,435


1,055


1,435


1,055

Single-family cancellation rate

14.6 %


15.7 %


18.3 %


14.2 %


14.6 %

Single-family buyer traffic

20,080


16,370


17,894


54,214


49,843

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

$   405


$   397


$   372


$      399


$     374

Single-family gross margin(1)

21.6 %


22.3 %


23.3 %


21.4 %


20.5 %


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











Weyerhaeuser Company



Unallocated Items

Q3.2013 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

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Unallocated corporate function expenses

$      (3)


$      (2)


$      (5)


$         (8)


$       (14)

Unallocated share-based compensation

5


(1)


(7)


(3)


(13)

Unallocated pension & postretirement costs

(10)


(11)


(7)


(31)


(21)

Foreign exchange gains (losses)

(4)


2


11


(6)


9

Elimination of intersegment profit in inventory and LIFO

8


25


(10)


9


(24)

Other

(6)


(10)


(9)


(23)


56

Operating income (loss)

(10)


3


(27)


(62)


(7)

Interest income and other

10


18


10


37


29

Net contribution to earnings

$     —


$     21


$   (17)


$      (25)


$        22












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











in millions

Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Operating income (loss)

$   (10)


$       3


$   (27)


$      (62)


$        (7)

Depreciation, depletion and amortization

4


2


4


9


16

Non-operating pension and postretirement costs

10


11


7


31


21

Special items





(89)

Capitalized interest included in cost of products sold

1


1


1


4


6

Adjusted EBITDA, excluding special items*

$       5


$     17


$   (15)


$      (18)


$      (53)

* Non-GAAP measure - see below for definition.




















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












Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Gain on postretirement plan amendment

$      —


$      —


$      —


$        —


$       103

Restructuring, impairments and other charges





(14)

Total

$     —


$     —


$     —


$        —


$        89











Unallocated Selected Items












Q2.2013


Q3.2013


Q3.2012


YTD.2013


YTD.2012

Total decrease (increase) in working capital(1)

$      95


$      14


$      (7)


$       (14)


$       (11)

Cash spent for capital expenditures

$      (2)


$      (1)


$      (1)


$         (4)


$         (2)

(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 excluding special items, as we define it, is operating income adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. Adjusted EBITDA excluding special items should not be considered in isolation from and is not intended to represent an alternative to our results computed under GAAP.











SOURCE Weyerhaeuser Company



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