Weyerhaeuser reports fourth quarter, full year results

- Generated full year net earnings before special items of $533 million, or $1.04 per diluted share, on net sales of $7.1 billion

- Announced agreement to merge with Plum Creek, creating the world's premier timber, land and forest products company

- Authorized exploration of strategic alternatives for Cellulose Fibers business

- Delivered on operational excellence targets

- Increased quarterly dividend 7 percent and repurchased over $500 million of common shares in 2015

Feb 05, 2016, 03:05 ET from Weyerhaeuser Company

FEDERAL WAY, Wash., Feb. 5, 2016 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings attributable to common shareholders of $59 million, or 11 cents per diluted share, on net sales of $1.7 billion. This compares with net earnings of $166 million, or 31 cents per diluted share, on net sales of $1.8 billion from continuing operations for the same period last year.

Earnings for the fourth quarter of 2015 include net after-tax charges of $62 million from special items. Excluding these items, the company reported net earnings of $121 million, or 24 cents per diluted share. This compares with net earnings from continuing operations before special items of $145 million, or 27 cents per diluted share for the same period last year.

For the full year 2015, Weyerhaeuser reported net earnings attributable to common shareholders of $462 million, or 89 cents per diluted share, on net sales of $7.1 billion. This compares with net earnings of $1.8 billion, or $3.18 per diluted share, on net sales from continuing operations of $7.4 billion for the same period last year. 2014 results included after-tax earnings of $998 million from discontinued operations, related to the divested Weyerhaeuser Real Estate Company.

Full year 2015 includes net after-tax charges of $71 million from special items. Excluding these items, the company reported net earnings of $533 million, or $1.04 per diluted share. This compares with net earnings from continuing operations before special items of $700 million, or $1.25 per diluted share, for the full year 2014.

"2015 was a milestone year for Weyerhaeuser, as we announced a transformational merger that will create the world's premier timber, land and forest products company," said Doyle R. Simons, president and chief executive officer. "At the same time, we maintained our relentless focus on improving our relative performance and delivered on our 2015 operational excellence targets. Finally, we fulfilled our commitment to return cash to shareholders through a 7 percent dividend increase and the repurchase of over $500 million of common shares. Looking forward to 2016, completion of our merger with Plum Creek, the strategic review of our Cellulose Fibers business, and our continued focus on operational excellence and disciplined capital allocation will position us to drive value for our shareholders."

 

WEYERHAEUSER FINANCIAL HIGHLIGHTS

3Q

4Q

4Q

Full Year

(millions, except per share data)

2015

2015

2014

2015

2014

Net sales from continuing operations

$1,820

$1,734

$1,788

$7,082

$7,403

Net earnings attributable to common shareholders(1)

$180

$59

$166

$462

$1,782

Weighted average shares outstanding, diluted(2)

517

514

529

520

561

Earnings per diluted share

$0.35

$0.11

$0.31

$0.89

$3.18

Earnings per diluted share from continuing operations

$0.35

$0.11

$0.31

$0.89

$1.40

Net earnings from continuing operations before special items(3)

$180

$121

$145

$533

$700

Earnings per diluted share from continuing operations before special items

$0.35

$0.24

$0.27

$1.04

$1.25

Cash and cash equivalents at end of period(4)

$1,048

$1,012

$1,580

$1,012

$1,580

(1) Full-Year 2014 includes net earnings from discontinued operations of $998 million, primarily related to the gain on the divestiture of Weyerhaeuser Real Estate Company.

(2) During the third quarter of 2014 Weyerhaeuser retired approximately 59 million shares tendered under the exchange offer associated with the divestiture of Weyerhaeuser Real Estate Company. Since the third quarter 2014 Weyerhaeuser repurchased approximately 22 million common shares. At the end of the fourth quarter 2015 the company had approximately 510 million common shares outstanding.

(3) Special items for fourth quarter 2015 include a noncash charge for Weyerhaeuser's share of an asset impairment by an equity affiliate, Plum Creek merger-related costs, a benefit from the expiration of the company's built-in-gains tax period, and restructuring charges related to closing four distribution centers. First quarter 2015 also included a noncash impairment charge on a nonstrategic asset. Special items for 2014 include gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative.

(4) Cash and cash equivalents at the end of the period exclude discontinued operations.

 

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

3Q 2015

4Q 2015

Change

Net sales to unaffiliated customers

$326

$337

$11

Contribution to pre-tax earnings

$126

$134

$8

 

4Q 2015 Performance - In the West, fee harvest volumes increased and average log sales realizations improved. In the South, fee harvest volumes decreased as a result of wet weather and average log sales realizations declined due to mix, mostly offset by lower costs. Earnings from the disposition of non-strategic timberlands increased by $6 million compared with the third quarter.

1Q 2016 Outlook - Weyerhaeuser expects comparable earnings from the Timberlands segment in the first quarter. In the West, the company expects higher log sales volumes and average realizations. In the South, the company anticipates seasonally lower fee harvest volumes and slightly decreased average log sales realizations due to mix. The company expects lower earnings from the disposition of nonstrategic timberlands in first quarter 2016 compared with fourth quarter 2015.

 

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

3Q 2015

4Q 2015

Change

Net sales to unaffiliated customers

$1,023

$922

($101)

Contribution to pre-tax earnings before special items

$85

$48

($37)

Pre-tax charge for special items

($8)

($8)

Contribution to pre-tax earnings

$85

$40

($45)

 

4Q 2015 Performance - Increased average sales realizations for oriented strand board were more than offset by reduced average lumber sales realizations and seasonally lower sales volumes across all product lines. Operating rates decreased, primarily due to downtime for planned maintenance in engineered wood products and oriented strand board and installation of capital projects in lumber.

Special items for the fourth quarter include restructuring charges related to the closure of four distribution centers.

1Q 2016 Outlook - Weyerhaeuser expects higher earnings from the Wood Products segment in the first quarter. The company expects moderately higher average sales realizations for lumber and increased production volumes across all product lines.

 

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

3Q 2015

4Q 2015

Change

Net sales

$471

$475

$4

Contribution to pre-tax earnings before special items

$79

$64

($15)

Pre-tax charge for special items

($84)

($84)

Contribution to pre-tax earnings

$79

($20)

($99)

 

4Q 2015 Performance - Lower average price realizations for pulp and increased maintenance costs due to additional scheduled outage days compared to the third quarter were partially offset by increased pulp sales volumes.

Special items for the fourth quarter include a noncash charge for Weyerhaeuser's share of an asset impairment recorded by an equity affiliate focused on newsprint and publication papers.

1Q 2016 Outlook - Weyerhaeuser expects significantly lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates decreased average sales realizations for pulp, seasonally lower pulp sales volumes, and additional maintenance expense due to a scheduled outage at the company's liquid packaging board facility.

PENDING MERGER WITH PLUM CREEK On November 6, 2015 Weyerhaeuser and Plum Creek Timber Company, Inc. entered into an Agreement and Plan of Merger. The outlooks contained in this release do not consider any incremental operating results attributable to this pending merger.

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 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 and cellulose fibers products. Our company is a real estate investment trust. In 2015, we generated $7.1 billion in net sales and employed approximately 12,600 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 February 5 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on February 5.

To join the conference call from within North America, dial 877-296-9413 (access code: 3192646) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 3192646). Replays will be available for one week at 855-859-2056 (access code: 3192646) from within North America and at 404-537-3406 (access code: 3192646) 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 the company's operations, cash flow or financial condition. All forward-looking statements are as of the date of this news release and we undertake no obligation to publicly update these forward-looking statements, whether as a result of new information, the occurrence of future events or otherwise.

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 2016, including with respect to earnings; log realizations and demand, harvest volumes and dispositions of non-strategic timberlands in Timberlands; lumber sales realizations and production volumes across Wood Products product lines; and maintenance expenses and pulp sales volumes and realizations in Cellulose Fibers.

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 the company's strategic plans, including its ability to complete and realize the expected benefits of the proposed transaction with Plum Creek and the results of its strategic alternatives review of the Cellulose Fibers business;
  • 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 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 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 in the company's other filings with the SEC, including the risks discussed in the definitive joint proxy statement/prospectus filed with the SEC on Form 424B3 on December 29, 2015 in connection with the proposed transaction with Plum Creek.

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China, restrictions on international trade, tariffs imposed on imports and disruptions in shipping and transportation. 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.

NO OFFER OR SOLICITATION This news release is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction with Plum Creek or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.

ADDITIONAL INFORMATION AND WHERE TO FIND IT The proposed transaction involving the company and Plum Creek will be submitted to the company's shareholders and Plum Creek's stockholders for their consideration.  In connection with the proposed transaction, the company filed with the SEC a registration statement on Form S-4 (the "Registration Statement"), which was declared effective by the SEC on December 28, 2015, that includes a prospectus with respect to the company's common shares to be issued in the proposed transaction and a joint proxy statement for the company's shareholders and Plum Creek's stockholders (the "Joint Proxy Statement") and each of the company and Plum Creek has mailed the Joint Proxy Statement to their respective shareholders or stockholders, as applicable, and filed or will file other documents regarding the proposed transaction with the SEC.  SECURITY HOLDERS ARE URGED AND ADVISED TO READ CAREFULLY ALL RELEVANT MATERIALS FILED OR TO BE FILED WITH THE SEC BY THE COMPANY OR PLUM CREEK WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS.  The Registration Statement, the Joint Proxy Statement and other relevant materials and any other documents filed or furnished by the company or Plum Creek with the SEC may be obtained free of charge at the SEC's web site at www.sec.gov.  In addition, security holders may obtain free copies of the Registration Statement and the Joint Proxy Statement from the company upon written request to Weyerhaeuser Company, 33663 Weyerhaeuser Way South, Federal Way, Washington 98003, Attention: Director, Investor Relations, or by calling (253) 924-2058, or from Plum Creek upon written request to Plum Creek, 601 Union Street, Suite 3100, Seattle Washington 98101, Attention: Investor Relations, or by calling (800) 858-5347.

PARTICIPANTS IN THE SOLICITATION The company, Plum Creek, their respective directors and certain of their respective executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction.  Information about the company's directors and executive officers is set forth in its definitive proxy statement for its 2015 Annual Meeting of Shareholders, which was filed with the SEC on April 1, 2015, and information about Plum Creek's directors and executive officers is set forth in its definitive proxy statement for its 2015 Annual Meeting of Stockholders, which was filed with the SEC on March 26, 2015.  These documents are available free of charge from the sources indicated above, and from the company by going to its investor relations page on its corporate web site at www.weyerhaeuser.com and from Plum Creek by going to its investor relations page on its corporate web site at www.plumcreek.com.

Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed transaction is included in the Registration Statement and the Joint Proxy Statement filed with the SEC and in other relevant materials the company or Plum Creek have filed or intend to file with the SEC.

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

 

Weyerhaeuser Company

Exhibit 99.2

Q4.2015 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Net Sales

$ 1,721

$ 1,807

$ 1,820

$ 1,734

$ 1,788

$ 7,082

$ 7,403

Cost of products sold

1,385

1,474

1,445

1,390

1,399

5,694

5,763

Gross margin

336

333

375

344

389

1,388

1,640

Selling expenses

28

28

27

30

29

113

112

General and administrative expenses

74

71

60

84

89

289

338

Research and development expenses

5

6

6

7

8

24

27

Charges for restructuring, closures and impairments

14

2

9

7

25

44

Other operating costs (income), net

15

(15)

21

(3)

(38)

18

(201)

Operating income

200

243

259

217

294

919

1,320

Loss from equity affiliates(1)

(6)

(7)

(5)

(87)

(105)

(1)

Interest income and other

9

9

9

9

10

36

38

Interest expense, net of capitalized interest

(83)

(88)

(88)

(88)

(90)

(347)

(344)

Earnings from continuing operations before income taxes

120

157

175

51

214

503

1,013

Income tax (expense) benefit

(19)

(13)

16

19

(37)

3

(185)

Earnings from continuing operations

101

144

191

70

177

506

828

Earnings from discontinued operations, net of income taxes

998

Net earnings

101

144

191

70

177

506

1,826

Dividends on preference shares

(11)

(11)

(11)

(11)

(11)

(44)

(44)

Net earnings attributable to Weyerhaeuser common shareholders

$       90

$     133

$     180

$       59

$     166

$     462

$ 1,782

(1) Loss from equity affiliates in Q4 2015 includes an $84 million non-cash charge for our share of an asset impairment recorded by an equity affiliate.

Per Share Information

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Earnings per share attributable to Weyerhaeuser common shareholders, basic:

Continuing operations

$     0.17

$     0.26

$     0.35

$     0.11

$     0.32

$     0.89

$     1.41

Discontinued operations

1.79

Net earnings per share

$     0.17

$     0.26

$     0.35

$     0.11

$     0.32

$     0.89

$     3.20

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:

Continuing operations

$     0.17

$     0.26

$     0.35

$     0.11

$     0.31

$     0.89

$     1.40

Discontinued operations

1.78

Net earnings per share

$     0.17

$     0.26

$     0.35

$     0.11

$     0.31

$     0.89

$     3.18

Dividends paid per common share

$     0.29

$     0.29

$     0.31

$     0.31

$     0.29

$     1.20

$     1.02

Weighted average shares outstanding (in thousands):

Basic

523,426

516,626

514,301

511,175

524,838

516,371

556,705

Diluted

527,423

519,804

517,088

514,167

529,411

519,618

560,899

Common shares outstanding at end of period (in thousands)

518,735

514,121

511,033

510,483

524,474

510,483

524,474

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Net earnings

$      101

$      144

$      191

$        70

$      177

$      506

$   1,826

Earnings from discontinued operations, net of income taxes

(998)

Loss from equity affiliates(1)

6

7

5

87

105

1

Interest income and other

(9)

(9)

(9)

(9)

(10)

(36)

(38)

Interest expense, net of capitalized interest

83

88

88

88

90

347

344

Income tax expense (benefit)

19

13

(16)

(19)

37

(3)

185

Operating income

200

243

259

217

294

919

1,320

Depreciation, depletion and amortization

123

118

118

120

125

479

493

Non-operating pension and postretirement credits

(3)

(3)

(2)

(3)

(12)

(11)

(45)

Special items in operating income

13

22

(31)

35

(134)

Adjusted EBITDA*

$     333

$     358

$     375

$     356

$     376

$ 1,422

$ 1,634

* Non-GAAP measure - see page 8 for definition.

 

Weyerhaeuser Company

Q4.2015 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

in millions

March 31, 2015

June 30, 2015

September 30, 2015

December 31, 2015

December 31, 2014

ASSETS

Current assets:

Cash and cash equivalents

$     1,158

$     1,121

$            1,048

$           1,012

$           1,580

Receivables, less allowances

539

537

545

487

525

Receivables for taxes

23

12

14

30

25

Inventories

645

603

590

568

595

Prepaid expenses

95

82

87

77

80

Total current assets

2,460

2,355

2,284

2,174

2,805

Property and equipment, net

2,524

2,557

2,484

2,586

2,623

Construction in progress

171

171

231

195

131

Timber and timberlands at cost, less depletion charged to disposals

6,552

6,531

6,507

6,480

6,530

Investments in and advances to equity affiliates

183

176

174

74

188

Goodwill

40

40

40

40

40

Deferred tax assets

34

22

15

4

44

Other assets

269

274

267

318

289

Restricted financial investments held by variable interest entities

615

615

615

615

615

Total assets

$ 12,848

$ 12,741

$        12,617

$       12,486

$       13,265

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

319

343

344

326

331

Accrued liabilities

533

576

554

549

587

Current liabilities of discontinued operations

Total current liabilities

852

919

898

875

918

Long-term debt

4,891

4,891

4,891

4,891

4,891

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

511

511

511

511

511

Deferred income taxes

34

54

56

86

14

Deferred pension and other postretirement benefits

1,249

1,166

1,106

987

1,319

Other liabilities

284

275

277

267

308

Noncurrent liabilities of discontinued operations

Total liabilities

7,821

7,816

7,739

7,617

7,961

Equity:

Total Weyerhaeuser shareholders' interest

5,027

4,925

4,878

4,869

5,304

Noncontrolling interests

Noncontrolling interests in discontinued operations

Total equity

5,027

4,925

4,878

4,869

5,304

Total liabilities and equity

$ 12,848

$ 12,741

$        12,617

$       12,486

$       13,265

 

Weyerhaeuser Company

Q4.2015 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Cash Flows

in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Cash flows from operations:

Net earnings

$    101

$    144

$    191

$      70

$    177

$     506

$ 1,826

Noncash charges (credits) to income:

Depreciation, depletion and amortization

123

118

118

120

125

479

500

Deferred income taxes, net

13

3

(6)

(10)

35

205

Pension and other postretirement benefits

10

11

11

10

(48)

42

(152)

Share-based compensation expense

8

8

6

9

11

31

40

Charges for impairment of assets

13

1

1

1

15

2

Net gains on dispositions of assets and operations

(16)

(5)

(9)

(8)

(2)

(38)

(1,050)

Foreign exchange transaction (gains) losses

29

(8)

20

6

12

47

27

Change in:

Receivables less allowances

(16)

(10)

(15)

58

57

17

29

Receivable for taxes

2

12

(3)

(16)

(1)

(5)

76

Inventories

(57)

42

6

19

(20)

10

(66)

Real estate and land

(133)

Prepaid expenses

(11)

9

5

11

3

17

Accounts payable and accrued liabilities

(91)

66

(22)

12

(22)

(35)

(98)

Deposits on land positions and other assets

15

Pension and postretirement contributions

(20)

(19)

(20)

(24)

(16)

(83)

(101)

Other

(17)

(12)

(1)

(16)

(30)

(50)

Net cash from operations

77

366

282

339

304

1,064

1,088

Cash flows from investing activities:

Property and equipment

(71)

(99)

(106)

(167)

(115)

(443)

(354)

Timberlands reforestation

(18)

(9)

(6)

(7)

(9)

(40)

(41)

Acquisition of Longview Timber LLC, net of cash acquired

Net proceeds from Real Estate Divestiture, net of cash divested

707

Proceeds from sale of assets

2

4

1

12

4

19

28

Net proceeds of investments held by special purpose entities

Other

12

1

(1)

13

21

Cash from investing activities

(119)

(92)

(113)

(163)

(124)

(487)

361

Cash flows from financing activities:

Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt

887

Deposit of WRECO debt proceeds into escrow

(887)

Cash dividends on common shares

(152)

(149)

(159)

(159)

(152)

(619)

(563)

Cash dividends on preference shares

(11)

(11)

(22)

(22)

(44)

(44)

Change in book overdrafts

(17)

Exercises of stock options

21

4

4

5

35

34

119

Repurchase of common stock

(253)

(154)

(77)

(34)

(80)

(518)

(203)

Other

4

(1)

1

(2)

(1)

2

4

Cash from financing activities

(380)

(311)

(242)

(212)

(220)

(1,145)

(704)

Net change in cash and cash equivalents

(422)

(37)

(73)

(36)

(40)

(568)

745

Cash and cash equivalents at beginning of period

1,580

1,158

1,121

1,048

1,620

1,580

835

Cash and cash equivalents at end of period

$ 1,158

$ 1,121

$ 1,048

$ 1,012

$ 1,580

$  1,012

$ 1,580

Cash paid (received) during the year for:

Interest, net of amount capitalized

$    114

$      58

$    118

$      57

$      66

$     347

$    319

Income taxes

$        1

$        4

$      (1)

$      10

$        3

$       14

$    (37)

Noncash investing and financing activity:

Acquisition of Longview Timber LLC, debt assumed

$      —

$      —

$      —

$      —

$      —

$      —

$      —

Common shares tendered in WRECO divestiture

$      —

$      —

$      —

$      —

$      —

$      —

$ 1,954

 

Weyerhaeuser Company

Total Company Statistics

Q4.2015 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings

in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Net earnings attributable to Weyerhaeuser common shareholders

$    90

$  133

$  180

$    59

$  166

$  462

$ 1,782

Restructuring, impairments and other charges

9

5

4

14

28

Gain on sale of non-strategic asset

(14)

Gain on postretirement plan amendment

(25)

(98)

Plum Creek merger-related costs

14

14

Impairment charge recorded by equity method affiliate

56

56

Tax adjustments

(13)

(13)

Net earnings attributable to Weyerhaeuser common shareholders before special items

99

133

180

121

145

533

1,698

Earnings from discontinued operations, net of income taxes

(998)

Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items

$    99

$  133

$  180

$  121

$  145

$  533

$    700

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$ 0.17

$ 0.26

$ 0.35

$ 0.11

$ 0.31

$ 0.89

$   3.18

Restructuring, impairments and other charges

0.02

0.01

0.01

0.03

0.05

Gain on sale of non-strategic asset

(0.02)

Gain on postretirement plan amendment

(0.05)

(0.18)

Plum Creek merger-related costs

0.03

0.03

Impairment charge recorded by equity method affiliate

0.12

0.12

Tax adjustments

(0.03)

(0.03)

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

0.19

0.26

0.35

0.24

0.27

1.04

3.03

Earnings from discontinued operations, net of income taxes

(1.78)

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

$ 0.19

$ 0.26

$ 0.35

$ 0.24

$ 0.27

$ 1.04

$   1.25

Selected Total Company Items

in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014

Depreciation, depletion and amortization:

Cost of products sold

$   118

$   116

$   116

$   118

$   119

$   468

$      470

Selling, general and administrative expenses

5

2

2

2

6

11

23

Total depreciation, depletion and amortization

$   123

$   118

$   118

$   120

$   125

$   479

$      493

Pension and postretirement costs:

Pension and postretirement costs allocated to business segments

$     13

$     14

$     13

$     13

$     12

$     53

$        45

Pension and postretirement costs (credits) not allocated

(3)

(3)

(2)

(3)

(12)

(11)

(45)

Total company pension and postretirement costs

$     10

$     11

$     11

$     10

$     —

$     42

$       —

Cash spent for capital expenditures

$    (89)

$  (108)

$  (112)

$  (174)

$  (124)

$  (483)

$    (391)

 

Weyerhaeuser Company

Timberlands Segment

Q4.2015 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Sales to unaffiliated customers

$     351

$     336

$     326

$     337

$      359

$    1,350

$    1,497

Intersegment sales

228

187

210

205

225

830

867

Total net sales

579

523

536

542

584

2,180

2,364

Cost of products sold

405

385

401

395

424

1,586

1,686

Gross margin

174

138

135

147

160

594

678

Selling expenses

2

1

1

1

1

5

7

General and administrative expenses

22

21

21

24

25

88

97

Research and development expenses

3

4

3

6

5

16

16

Charges for restructuring, closures and impairments

1

Other operating income, net

(15)

(15)

(16)

(18)

(14)

(64)

(56)

Operating income

162

127

126

134

143

549

613

Interest income and other

Net contribution to earnings

$   162

$   127

$   126

$   134

$     143

$     549

$     613

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Operating income

$   162

$   127

$   126

$   134

$     143

$     549

$     613

Depreciation, depletion and amortization

53

51

51

54

53

209

207

Adjusted EBITDA*

$   215

$   178

$   177

$   188

$     196

$     758

$     820

* Non-GAAP measure - see page 8 for definition.

Selected Segment Items

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital(1)

$     (26)

$       52

$     (12)

$         4

$          8

$         18

$       (11)

Cash spent for capital expenditures

$     (24)

$     (17)

$     (17)

$     (17)

$      (18)

$       (75)

$       (74)

(1) Working capital does not include cash balances.

Segment Statistics

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Third Party Net Sales (millions)

Logs:

West

$     210

$     221

$     196

$     203

$      227

$       830

$       972

South

58

58

64

61

66

241

257

Canada

8

3

6

7

10

24

22

Total logs

276

282

266

271

303

1,095

1,251

Chip sales

4

4

4

3

3

15

12

Timberlands exchanges

25

5

12

20

3

62

52

Higher and better use land sales

2

3

4

5

5

14

19

Minerals, oil and gas

7

5

7

7

7

26

32

Products from international operations

24

25

20

18

24

87

96

Other products

13

12

13

13

14

51

35

Total

$     351

$     336

$     326

$     337

$      359

$    1,350

$    1,497

Logs Third Party Sales Realizations (per cubic meter)

West

$  98.83

$  94.70

$  93.44

$  96.16

$ 106.73

$    95.76

$  108.19

South

$  45.33

$  45.20

$  45.96

$  45.07

$   45.56

$    45.40

$    45.23

Canada

$  34.84

$  35.43

$  35.50

$  34.54

$   38.82

$    34.97

$    37.58

International

$  19.35

$  22.63

$  18.71

$  18.31

$   18.64

$    19.85

$    18.06

Logs Third Party Sales Volumes (cubic meters, thousands)

West

2,120

2,330

2,104

2,118

2,121

8,672

8,980

South

1,271

1,295

1,396

1,338

1,454

5,300

5,678

Canada

245

75

159

208

254

687

592

International

150

179

175

144

148

648

604

Total

3,786

3,879

3,834

3,808

3,977

15,307

15,854

Logs Fee Harvest Volumes (cubic meters, thousands)

West

2,911

2,811

2,666

2,742

2,754

11,130

11,173

South

2,732

2,912

3,008

2,916

3,145

11,568

11,676

International

239

219

200

231

260

889

990

Total

5,882

5,942

5,874

5,889

6,159

23,587

23,839

 

Weyerhaeuser Company

Wood Products Segment

Q4.2015 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations  

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Sales to unaffiliated customers

$     923

$  1,004

$  1,023

$     922

$     947

$    3,872

$    3,970

Intersegment sales

19

22

20

21

20

82

80

Total net sales

942

1,026

1,043

943

967

3,954

4,050

Cost of products sold

829

903

914

841

855

3,487

3,495

Gross margin

113

123

129

102

112

467

555

Selling expenses

23

23

23

25

24

94

94

General and administrative expenses

27

26

21

28

32

102

130

Research and development expenses

1

1

1

2

4

Charges for restructuring, closures and impairments

1

9

10

2

Other operating income, net

1

2

(2)

(1)

1

(2)

Operating income

62

71

85

40

56

258

327

Interest income and other

Net contribution to earnings

$      62

$      71

$      85

$      40

$      56

$     258

$     327

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Operating income

$      62

$      71

$      85

$      40

$      56

$     258

$     327

Depreciation, depletion and amortization

26

27

26

27

30

106

119

Special items

8

8

Adjusted EBITDA*

$      88

$      98

$   111

$      75

$      86

$     372

$     446

* Non-GAAP measure - see page 8 for definition.

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

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Restructuring, impairments and other charges

$      —

$      —

$      —

$       (8)

$      —

$         (8)

$        —

Selected Segment Items

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital (1)

$     (99)

$       42

$       23

$       79

$       29

$         45

$       (38)

Cash spent for capital expenditures

$     (37)

$     (60)

$     (68)

$   (122)

$     (78)

$     (287)

$     (190)

(1) Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Structural Lumber (board feet)

Third party net sales

$     434

$     450

$     455

$     402

$     459

$    1,741

$    1,901

Third party sales realizations

$     403

$     383

$     372

$     360

$     415

$       379

$       426

Third party sales volumes(1)

1,075

1,175

1,224

1,114

1,106

4,588

4,463

Production volumes

1,043

1,087

1,087

1,035

1,013

4,252

4,152

Outside purchase volumes

89

98

92

77

94

356

345

Engineered Solid Section (cubic feet)

Third party net sales

$       94

$     113

$     116

$     105

$       94

$       428

$       402

Third party sales realizations

$  1,965

$  2,032

$  2,043

$  1,987

$  2,060

$    2,008

$    2,005

Third party sales volumes(1)

4.8

5.6

5.6

5.3

4.5

21.3

20.0

Production volumes

5

5.6

5.2

5.1

4.6

20.9

20.4

Outside purchase volumes

2.3

Engineered I-joists (lineal feet)

Third party net sales

$       61

$       76

$       79

$       68

$       63

$       284

$       277

Third party sales realizations

$  1,510

$  1,502

$  1,520

$  1,515

$  1,549

$    1,512

$    1,502

Third party sales volumes(1)

41

50

52

45

40

188

184

Production volumes

43

48

50

44

33

185

182

Outside purchase volumes

1

1

2

1

2

5

7

Oriented Strand Board (square feet 3/8')

Third party net sales

$     137

$     147

$     151

$     160

$     146

$       595

$       610

Third party sales realizations

$     196

$     191

$     194

$     221

$     206

$       200

$       219

Third party sales volumes(1)

700

771

778

723

709

2,972

2,788

Production volumes

704

700

746

697

694

2,847

2,749

Outside purchase volumes

65

82

77

55

61

278

217

Softwood Plywood (square feet 3/8')

Third party net sales

$       33

$       36

$       33

$       27

$       36

$       129

$       143

Third party sales realizations

$     366

$     354

$     330

$     308

$     384

$       339

$       362

Third party sales volumes(1)

89

101

100

91

93

381

395

Production volumes

61

63

67

57

61

248

252

Outside purchase volumes

37

27

27

25

42

116

142

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

 

Weyerhaeuser Company

Cellulose Fibers Segment

Q4.2015 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Total net sales

$   447

$   467

$   471

$   475

$   482

$  1,860

$  1,936

Cost of products sold

394

417

371

393

379

1,575

1,577

Gross margin

53

50

100

82

103

285

359

Selling expenses

3

4

3

4

4

14

15

General and administrative expenses

17

17

16

17

18

67

76

Research and development expenses

2

1

2

1

2

6

7

Charges for restructuring, closures and impairments

Other operating income, net

(8)

(6)

(5)

(7)

(8)

(26)

(31)

Operating income

39

34

84

67

87

224

292

Loss from equity affiliates(1)

(6)

(7)

(5)

(87)

(105)

(1)

Net contribution to earnings

$      33

$      27

$      79

$    (20)

$      87

$     119

$     291

(1) Loss from equity affiliates in Q4 2015 includes an $84 million non-cash charge for our share of an asset impairment recorded by an equity affiliate.

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Operating income

$      39

$      34

$      84

$      67

$      87

$     224

$     292

Depreciation, depletion and amortization

39

38

39

38

39

154

155

Adjusted EBITDA*

$      78

$      72

$   123

$   105

$   126

$     378

$     447

* Non-GAAP measure - see page 8 for definition.

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

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Impairment charge recorded by equity method affiliate

$      —

$      —

$      —

$     (84)

$      —

$       (84)

$        —

Selected Segment Items

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital(1)

$       40

$         6

$     (24)

$     (13)

$     (47)

$           9

$       (14)

Cash spent for capital expenditures

$     (27)

$     (31)

$     (27)

$     (33)

$     (26)

$     (118)

$     (123)

(1) Working capital does not include cash balances.

Segment Statistics

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Pulp (air-dry metric tons)

Third party net sales (millions)

$     360

$     368

$     383

$     388

$     405

$    1,499

$    1,559

Third party sales realizations

$     854

$     823

$     818

$     800

$     886

$       823

$       854

Third party sales volumes (thousands)

421

448

468

484

458

1,821

1,826

Production volumes (thousands)

442

422

477

481

468

1,822

1,859

Liquid Packaging Board (metric tons)

Third party net sales (millions)

$       74

$       84

$       74

$       73

$       63

$       305

$       310

Third party sales realizations

$  1,194

$  1,218

$  1,168

$  1,203

$  1,133

$    1,196

$    1,244

Third party sales volumes (thousands)

62

69

63

61

55

255

249

Production volumes (thousands)

60

64

68

63

70

255

265

 

Weyerhaeuser Company

Unallocated Items

Q4.2015 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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve.

Contribution to Earnings

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Unallocated corporate function expenses

$       (9)

$       (7)

$       (4)

$       (7)

$       (7)

$       (27)

$       (24)

Unallocated share-based compensation

3

1

6

(4)

(7)

6

(9)

Unallocated pension & postretirement credits (costs)

3

3

2

3

50

11

196

Foreign exchange gains (losses)

(29)

9

(20)

(6)

(11)

(46)

(27)

Elimination of intersegment profit in inventory and LIFO

(12)

18

3

1

(2)

10

(10)

Other

(19)

(13)

(23)

(11)

(15)

(66)

(38)

Operating income (loss)

(63)

11

(36)

(24)

8

(112)

88

Interest income and other

9

9

9

9

10

36

38

Net contribution to earnings from continuing operations(1)

$    (54)

$      20

$    (27)

$    (15)

$      18

$      (76)

$     126

(1)

We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately.  Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders' interest.

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Operating income (loss)

$    (63)

$      11

$    (36)

$    (24)

$        8

$    (112)

$        88

Depreciation, depletion and amortization

5

2

2

1

3

10

12

Non-operating pension and postretirement costs (credits)

(3)

(3)

(2)

(3)

(12)

(11)

(45)

Special items

13

14

(31)

27

(134)

Adjusted EBITDA*

$    (48)

$      10

$    (36)

$    (12)

$    (32)

$      (86)

$      (79)

* Non-GAAP measure - see below for definition.

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

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Restructuring, impairments and other charges

$     (13)

$      —

$      —

$      —

$       (7)

$       (13)

$       (39)

Gain on sale of non-strategic asset

22

Gain on postretirement plan amendment

38

151

Plum Creek merger-related costs

(14)

(14)

Total

$    (13)

$      —

$      —

$    (14)

$      31

$      (27)

$     134

Unallocated Selected Items

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Cash spent for capital expenditures

$       (1)

$      —

$      —

$       (2)

$       (2)

$         (3)

$         (4)

* 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, 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 discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

 

Weyerhaeuser Company

Discontinued Operations

Q4.2015 Analyst Package

Preliminary results (unaudited)

Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items.

Discontinued Operations Statement of Operations

in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014

Total net sales

$      —

$      —

$      —

$      —

$      —

$        —

$     573

Income (loss) from operations

$      —

$      —

$      —

$      —

$      —

$        —

$         42

Income taxes

(16)

Net earnings (loss) from operations

26

Net gain on divestiture

972

Net earnings from discontinued operations

$      —

$      —

$      —

$      —

$      —

$        —

$     998

 

Logo - http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO

 

SOURCE Weyerhaeuser Company



RELATED LINKS

http://www.weyerhaeuser.com