Weyerhaeuser Reports Second Quarter Results

- Earnings rise 34 percent compared with first quarter

- Repurchased over $150 million of common shares

Jul 31, 2015, 03:05 ET from Weyerhaeuser Company

FEDERAL WAY, Wash., July 31, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings to common shareholders of $133 million, or 26 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $90 million, or 17 cents per diluted share, on net sales of $1.7 billion for first quarter 2015, and net earnings of $280 million, or 47 cents per diluted share, on net sales from continuing operations of $2.0 billion for the second quarter last year.

Excluding special items, second quarter net earnings of $133 million compares with net earnings from continuing operations before special items of $99 million for first quarter 2015, and $234 million for the second quarter last year.

"Each of our businesses delivered solid second quarter operating results, as operational excellence efforts helped mitigate the delayed arrival of the spring building season and the continuing challenge of a strong U.S. dollar," said Doyle Simons, president and chief executive officer. "In addition, we repurchased over $150 million of common shares in the quarter and neared completion of our existing authorization. Looking forward, we are well positioned to capitalize on the improving housing market, and we remain relentlessly focused on driving value for our shareholders through operational improvements and disciplined capital allocation."

View a printer-friendly PDF of our release and financials package.

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2015

2015

2014

(millions, except per share data)

1Q

2Q

2Q

Net sales from continuing operations

$1,721

$1,807

$1,964

Net earnings attributable to Weyerhaeuser common shareholders(1)

$90

$133

$280

Weighted average shares outstanding, diluted(2)

527

520

590

Earnings per diluted share

$0.17

$0.26

$0.47

Earnings per diluted share from continuing operations

$0.17

$0.26

$0.43

Net earnings from continuing operations before special items(3)

$99

$133

$234

Earnings per diluted share from continuing operations before special items

$0.19

$0.26

$0.40

Cash and cash equivalents at end of period(4)

$1,158

$1,121

$845

(1) Second quarter 2014 includes net earnings from discontinued operations of $22 million. (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. Through second quarter 2015, Weyerhaeuser repurchased approximately 18 million common shares under the repurchase program announced in third quarter 2014. At the end of the second quarter the company had approximately 514 million common shares outstanding. (3) There were no special items for the second quarter of 2015. Special items for the first quarter 2015 include a charge for impairment on a nonstrategic asset. Special items for the second quarter of 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)

1Q 2015

2Q 2015

Change

Net sales

$351

$336

($15)

Contribution to pre-tax earnings

$162

$127

($35)

2Q 2015 Performance - Western domestic and export log sales realizations declined, partially offset by seasonal increases in sales volumes. Earnings from the disposition of non-strategic timberlands decreased by $12 million compared with the first quarter.

3Q 2015 Outlook - Weyerhaeuser expects slightly lower earnings from the Timberlands segment in the third quarter. In the West, the company expects lower fee harvest volumes, partially offset by higher log sales realizations, as a result of a prolonged fire season. In the South, the company anticipates increased fee harvest volumes offset by seasonally higher silviculture costs.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

1Q 2015

2Q 2015

Change

Net sales

$923

$1,004

$81

Contribution to pre-tax earnings

$62

$71

$9

2Q 2015 Performance - Sales volumes increased seasonally across all product lines. Manufacturing costs improved due to higher operating rates and operational excellence initiatives, and Western log costs were lower. These higher sales volumes and lower costs were partially offset by lower average sales realizations for lumber and oriented strand board.

3Q 2015 Outlook - Weyerhaeuser expects higher earnings from the Wood Products segment in the third quarter. The company anticipates seasonally higher sales volumes across most product lines and improved average sales realizations for lumber and oriented strand board.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

1Q 2015

2Q 2015

Change

Net sales

$447

$467

$20

Contribution to pre-tax earnings

$33

$27

($6)

2Q 2015 Performance - Average pulp sales realizations decreased and maintenance costs increased due to an extended pulp mill outage for scheduled maintenance and installation of energy-related capital improvements. These factors were partially offset by lower net energy costs primarily due to operational excellence initiatives.

3Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the third quarter primarily due to minimal scheduled maintenance outage days. Additionally, the company anticipates lower average pulp sales realizations, partially offset by increased sales 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 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 2014, our continuing operations generated $7.4 billion in sales and employed approximately 12,800 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 31 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 31.

To join the conference call from within North America, dial 877-296-9413 (access code: 28347567) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28347567). Replays will be available for one week at 855-859-2056 (access code: 28347567) from within North America and at 404-537-3406 (access code: 28347567) 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 our current expectations and various assumptions that are subject to risks and uncertainties. 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, expectations 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 and similar words.

This release contains forward-looking statements regarding the company's expectations during the third quarter of 2015, including with respect to: earnings; harvest volumes, log realizations and costs in Timberlands; sales volumes and realizations across Wood Products product lines; and maintenance outages, pulp sales realizations and sales volumes in Cellulose Fibers.

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

 

Weyerhaeuser Company

Exhibit 99.2

Q2.2015 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Operations

in millions

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Net Sales

$  1,721

$  1,807

$  1,964

$  3,528

$  3,700

Cost of products sold

1,385

1,474

1,499

2,859

2,860

Gross margin

336

333

465

669

840

Selling expenses

28

28

27

56

55

General and administrative expenses

74

71

88

145

176

Research and development expenses

5

6

7

11

14

Charges for restructuring, closures and impairments

14

8

14

27

Other operating costs (income), net

15

(15)

(65)

(140)

Operating income

200

243

400

443

708

Interest income and other

3

2

11

5

20

Interest expense, net of capitalized interest

(83)

(88)

(83)

(171)

(166)

Earnings from continuing operations before income taxes

120

157

328

277

562

Income taxes

(19)

(13)

(59)

(32)

(109)

Earnings from continuing operations

101

144

269

245

453

Earnings from discontinued operations, net of income taxes

22

32

Net earnings

101

144

291

245

485

Dividends on preference shares

(11)

(11)

(11)

(22)

(22)

Net earnings attributable to Weyerhaeuser common shareholders

$        90

$     133

$     280

$     223

$     463

Per Share Information

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Earnings per share attributable to Weyerhaeuser common shareholders, basic:

Continuing operations

$      0.17

$      0.26

$      0.44

$      0.43

$      0.73

Discontinued operations

0.04

0.06

Net earnings per share

$      0.17

$      0.26

$      0.48

$      0.43

$      0.79

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:

Continuing operations

$      0.17

$      0.26

$      0.43

$      0.43

$      0.73

Discontinued operations

0.04

0.06

Net earnings per share

$      0.17

$      0.26

$      0.47

$      0.43

$      0.79

Dividends paid per common share

$      0.29

$      0.29

$      0.22

$      0.58

$      0.44

Weighted average shares outstanding (in thousands):

Basic

523,426

516,626

586,061

520,008

585,491

Diluted

527,423

519,804

589,766

523,595

589,542

Common shares outstanding at end of period (in thousands)

518,735

514,121

586,698

514,121

586,698

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

in millions

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Net earnings

$       101

$       144

$       291

$       245

$       485

Earnings from discontinued operations, net of income taxes

(22)

(32)

Interest income and other

(3)

(2)

(11)

(5)

(20)

Interest expense, net of capitalized interest

83

88

83

171

166

Income taxes

19

13

59

32

109

Operating income

200

243

400

443

708

Depreciation, depletion and amortization

123

118

122

241

245

Non-operating pension and postretirement credits

(3)

(3)

(11)

(6)

(21)

Special items

13

(39)

13

(88)

Adjusted EBITDA*

$     333

$     358

$     472

$     691

$     844

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

 

Weyerhaeuser Company

Q2.2015 Analyst Package

Preliminary results, subject to audit

Consolidated Balance Sheet

in millions

March 31, 2015

June 30, 2015

December 31, 2014

ASSETS

Current assets:

Cash and cash equivalents

$     1,158

$     1,121

$           1,580

Receivables, less allowances

539

537

525

Receivables for taxes

23

12

25

Inventories

645

603

595

Prepaid expenses

95

82

80

Deferred tax assets

192

162

228

Total current assets

2,652

2,517

3,033

Property and equipment, net

2,524

2,557

2,623

Construction in progress

171

171

131

Timber and timberlands at cost, less depletion charged to disposals

6,552

6,531

6,530

Investments in and advances to equity affiliates

183

176

188

Goodwill

40

40

40

Deferred tax assets

3

2

8

Other assets

269

274

289

Restricted financial investments held by variable interest entities

615

615

615

Total assets

$ 13,009

$ 12,883

$       13,457

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$        319

$        343

$              331

Accrued liabilities

533

576

587

Total current liabilities

852

919

918

Long-term debt

4,891

4,891

4,891

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

511

511

511

Deferred income taxes

195

196

206

Deferred pension and other postretirement benefits

1,249

1,166

1,319

Other liabilities

284

275

308

Total liabilities

7,982

7,958

8,153

Total equity

5,027

4,925

5,304

Total liabilities and equity

$ 13,009

$ 12,883

$       13,457

 

Weyerhaeuser Company

Q2.2015 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Cash Flows

in millions

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Cash flows from operations:

Net earnings

$      101

$    144

$    291

$    245

$    485

Noncash charges (credits) to income:

Depreciation, depletion and amortization

123

118

126

241

252

Deferred income taxes, net

13

3

89

16

125

Pension and other postretirement benefits

10

11

(44)

21

(91)

Share-based compensation expense

8

8

11

16

20

Charges for impairment of assets

13

1

13

1

Net gains on dispositions of assets

(16)

(5)

(21)

(21)

(46)

Foreign exchange transaction (gains) losses

29

(8)

(12)

21

2

Change in:

Receivables less allowances

(16)

(10)

(47)

(26)

(48)

Receivable for taxes

2

12

(3)

14

64

Inventories

(57)

42

34

(15)

(54)

Real estate and land

(35)

(107)

Prepaid expenses

(11)

9

(3)

(2)

Accounts payable and accrued liabilities

(91)

66

(17)

(25)

(97)

Deposits on land positions and other assets

(4)

8

Pension and postretirement contributions

(20)

(19)

(30)

(39)

(63)

Other

(11)

(5)

(14)

(16)

(20)

Net cash from operations

77

366

322

443

431

Cash flows from investing activities:

Property and equipment

(71)

(99)

(83)

(170)

(134)

Timberlands reforestation

(18)

(9)

(11)

(27)

(25)

Acquisition of timberlands

(32)

(32)

Proceeds from sale of assets

2

4

1

6

20

Other

12

12

Cash from investing activities

(119)

(92)

(93)

(211)

(139)

Cash flows from financing activities:

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

887

887

Deposit of WRECO debt proceeds into escrow

(887)

(887)

Cash dividends on common shares

(152)

(149)

(128)

(301)

(257)

Cash dividends on preference shares

(11)

(11)

(11)

(11)

Change in book overdrafts

(6)

Exercises of stock options

21

4

39

25

54

Repurchase of common stock

(253)

(154)

(407)

Other

4

(1)

(1)

3

1

Cash from financing activities

(380)

(311)

(101)

(691)

(219)

Net change in cash and cash equivalents

(422)

(37)

128

(459)

73

Cash and cash equivalents at beginning of period

1,580

1,158

780

1,580

835

Cash and cash equivalents at end of period

$   1,158

$ 1,121

$    908

$ 1,121

$    908

Cash paid (received) during the year for:

Interest, net of amount capitalized

$      114

$      58

$      52

$    172

$    153

Income taxes

$          1

$        4

$        5

$        5

$    (45)

 

Weyerhaeuser Company

Total Company Statistics

Q2.2015 Analyst Package

Preliminary results, subject to audit

Special Items Included in Net Earnings

in millions

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Net earnings attributable to Weyerhaeuser common shareholders

$       90

$  133

$  280

$  223

$  463

Restructuring, impairments and other charges

9

5

9

18

Gain on sale of non-strategic asset

(14)

Gain on postretirement plan amendment

(29)

(58)

Net earnings attributable to Weyerhaeuser common shareholders before special items

99

133

256

232

409

Earnings from discontinued operations, net of income taxes

(22)

(32)

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

$       99

$  133

$  234

$  232

$  377

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$   0.17

$ 0.26

$ 0.47

$ 0.43

$ 0.79

Restructuring, impairments and other charges

0.02

0.01

0.01

0.03

Gain on sale of non-strategic asset

(0.02)

Gain on postretirement plan amendment

(0.04)

(0.10)

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

0.19

0.44

0.44

0.70

Earnings from discontinued operations, net of income taxes

(0.04)

(0.06)

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

$   0.19

$ 0.26

$ 0.40

$ 0.44

$ 0.64

Selected Total Company Items

in millions

Q1

Q2

Year-to-date

March 31, 2015

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

Depreciation, depletion and amortization:

Cost of products sold

$      118

$    116

$    117

$    234

$    234

Selling, general and administrative expenses

5

2

5

7

11

Total depreciation, depletion and amortization

$      123

$    118

$    122

$    241

$    245

Pension and postretirement costs:

Pension and postretirement costs allocated to business segments

$        13

$      14

$      12

$      27

$      22

Pension and postretirement credits not allocated

(3)

(3)

(11)

(6)

(21)

Total company pension and postretirement costs

$        10

$      11

$        1

$      21

$        1

Total decrease (increase) in working capital(1)

$    (212)

$    161

$      49

$    (51)

$  (121)

Cash spent for capital expenditures

$      (89)

$  (108)

$    (92)

$  (197)

$  (155)

(1) Working capital does not include cash balances.

 

Weyerhaeuser Company

Timberlands Segment

Q2.2015 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Sales to unaffiliated customers

$     351

$     336

$      397

$       687

$       774

Intersegment sales

228

187

186

415

424

Total net sales

579

523

583

1,102

1,198

Cost of products sold

405

385

399

790

830

Gross margin

174

138

184

312

368

Selling expenses

2

1

2

3

4

General and administrative expenses

22

21

23

43

49

Research and development expenses

3

4

3

7

7

Other operating income, net

(15)

(15)

(14)

(30)

(26)

Operating income

162

127

170

289

334

Interest income and other

Net contribution to earnings

$   162

$   127

$     170

$     289

$     334

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

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Operating income

$   162

$   127

$     170

$     289

$     334

Depreciation, depletion and amortization

53

51

51

104

103

Adjusted EBITDA*

$   215

$   178

$     221

$     393

$     437

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

Selected Segment Items

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital(1)

$     (26)

$       52

$       (15)

$         26

$       (44)

Cash spent for capital expenditures

$     (24)

$     (17)

$       (18)

$       (41)

$       (37)

(1) Working capital does not include cash balances.

Segment Statistics

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Third Party  Net Sales  (millions)

Logs:

West

$     210

$     221

$      261

$       431

$       518

South

58

58

60

116

122

Canada

8

3

1

11

7

Total logs

276

282

322

558

647

Chip sales

4

4

2

8

5

Timberlands exchanges

25

5

28

30

32

Higher and better use land sales

2

3

7

5

10

Minerals, oil and gas

7

5

8

12

15

Products from international operations

24

25

26

49

50

Other products

13

12

4

25

15

Total

$     351

$     336

$      397

$       687

$       774

Logs Third Party Sales Realizations (per cubic meter)

West

$  98.83

$  94.70

$ 109.13

$    96.67

$  111.71

South

$  45.33

$  45.20

$   45.16

$    45.27

$    45.02

Canada

$  34.84

$  35.43

$   38.04

$    34.98

$    35.75

International

$  19.35

$  22.63

$   16.27

$    21.14

$    16.64

Logs Third Party Sales Volumes (cubic meters, thousands)

West

2,120

2,330

2,390

4,450

4,636

South

1,271

1,295

1,339

2,566

2,724

Canada

245

75

30

320

186

International

150

179

139

329

286

Total

3,786

3,879

3,898

7,665

7,832

Logs Fee Harvest Volumes (cubic meters, thousands)

West

2,911

2,811

2,888

5,722

5,763

South

2,732

2,912

2,715

5,644

5,581

International

239

219

249

458

498

Total

5,882

5,942

5,852

11,824

11,842

 

Weyerhaeuser Company

Wood Products Segment

Q2.2015 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations  

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Sales to unaffiliated customers

$     923

$  1,004

$  1,077

$    1,927

$    1,975

Intersegment sales

19

22

21

41

40

Total net sales

942

1,026

1,098

1,968

2,015

Cost of products sold

829

903

939

1,732

1,730

Gross margin

113

123

159

236

285

Selling expenses

23

23

23

46

48

General and administrative expenses

27

26

30

53

67

Research and development expenses

1

2

1

3

Charges for restructuring, closures and impairments

2

2

Other operating costs (income), net

1

2

3

(1)

Operating income

62

71

102

133

166

Interest income and other

Net contribution to earnings

$      62

$      71

$   102

$     133

$     166

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

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Operating income

$      62

$      71

$   102

$     133

$     166

Depreciation, depletion and amortization

26

27

30

53

59

Adjusted EBITDA*

$      88

$      98

$   132

$     186

$     225

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

Selected Segment Items

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital(1)

$     (99)

$       42

$       29

$       (57)

$     (108)

Cash spent for capital expenditures

$     (37)

$     (60)

$     (38)

$       (97)

$       (56)

(1) Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Structural Lumber (board feet)

Third party net sales

$     434

$     450

$     515

$       884

$       942

Third party sales realizations

$     403

$     383

$     427

$       393

$       429

Third party sales volumes(1)

1,075

1,175

1,206

2,250

2,195

Production volumes

1,043

1,087

1,081

2,130

2,090

Outside purchase volumes

89

98

82

187

160

Engineered Solid Section (cubic feet)

Third party net sales

$       94

$     113

$     114

$       207

$       204

Third party sales realizations

$  1,965

$  2,032

$  1,976

$    2,001

$    1,968

Third party sales volumes(1)

4.8

5.6

5.8

10.4

10.4

Production volumes

5.0

5.6

5.7

10.6

10.6

Outside purchase volumes

0.5

2.3

Engineered I-joists (lineal feet)

Third party net sales

$       61

$       76

$       81

$       137

$       140

Third party sales realizations

$  1,510

$  1,502

$  1,470

$    1,506

$    1,463

Third party sales volumes(1)

41

50

55

91

95

Production volumes

43

48

55

91

99

Outside purchase volumes

1

1

3

2

4

Oriented Strand Board (square feet 3/8')

Third party net sales

$     137

$     147

$     159

$       284

$       307

Third party sales realizations

$     196

$     191

$     226

$       193

$       228

Third party sales volumes(1)

700

771

706

1,471

1,347

Production volumes

704

700

681

1,404

1,338

Outside purchase volumes

65

81

51

146

104

Softwood Plywood (square feet 3/8')

Third party net sales

$       33

$       36

$       35

$         69

$         65

Third party sales realizations

$     366

$     354

$     348

$       360

$       340

Third party sales volumes(1)

89

101

102

190

192

Production volumes

61

63

60

124

119

Outside purchase volumes

37

27

36

64

69

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

 

Weyerhaeuser Company

Cellulose Fibers Segment

Q2.2015 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Total net sales

$   447

$   467

$   490

$     914

$     951

Cost of products sold

394

417

381

811

771

Gross margin

53

50

109

103

180

Selling expenses

3

4

4

7

8

General and administrative expenses

17

17

20

34

40

Research and development expenses

2

1

2

3

4

Other operating income, net

(8)

(6)

(8)

(14)

(17)

Operating income

39

34

91

73

145

Interest income and other

(6)

(7)

(13)

Net contribution to earnings

$      33

$      27

$      91

$        60

$     145

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

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Operating income

$      39

$      34

$      91

$        73

$     145

Depreciation, depletion and amortization

39

38

39

77

77

Adjusted EBITDA*

$      78

$      72

$   130

$     150

$     222

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

Selected Segment Items

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital(1)

$       40

$         6

$     (37)

$         46

$         (6)

Cash spent for capital expenditures

$     (27)

$     (31)

$     (35)

$       (58)

$       (61)

(1) Working capital does not include cash balances.

Segment Statistics

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Pulp (air-dry metric tons)

Third party net sales (millions)

$     360

$     368

$     383

$       728

$       746

Third party sales realizations

$     854

$     823

$     845

$       838

$       835

Third party sales volumes (thousands)

421

448

454

869

894

Production volumes (thousands)

442

422

467

864

926

Liquid Packaging Board (metric tons)

Third party net sales (millions)

$       74

$       84

$       87

$       158

$       167

Third party sales realizations

$  1,194

$  1,218

$  1,284

$    1,206

$    1,261

Third party sales volumes (thousands)

62

69

67

131

132

Production volumes (thousands)

60

64

72

124

142

 

Weyerhaeuser Company

Unallocated Items

Q2.2015 Analyst Package

Preliminary results, subject to audit

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

Contribution to Earnings

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Unallocated corporate function expenses

$       (9)

$       (7)

$       (7)

$       (16)

$       (14)

Unallocated share-based compensation

3

1

(6)

4

(3)

Unallocated pension & postretirement credits

3

3

56

6

111

Foreign exchange gains (losses)

(29)

9

13

(20)

(2)

Elimination of intersegment profit in inventory and LIFO

(12)

18

(1)

6

(20)

Other

(19)

(13)

(18)

(32)

(9)

Operating income (loss)

(63)

11

37

(52)

63

Interest income and other

9

9

11

18

20

Net contribution to earnings from continuing operations(1)

$    (54)

$      20

$      48

$      (34)

$        83

(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

Q2.2014

YTD.2015

YTD.2014

Operating income (loss)

$    (63)

$      11

$      37

$      (52)

$        63

Depreciation, depletion and amortization

5

2

2

7

6

Non-operating pension and postretirement credits

(3)

(3)

(11)

(6)

(21)

Special items

13

(39)

13

(88)

Adjusted EBITDA*

$    (48)

$      10

$    (11)

$      (38)

$      (40)

* Non-GAAP measure - see below for definition.

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

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Gain on postretirement plan amendment

$      —

$      —

$       45

$        —

$         90

Restructuring, impairments and other charges

(13)

(6)

(13)

(24)

Gain on sale of non-strategic asset

22

Total

$    (13)

$      —

$      39

$      (13)

$        88

Unallocated Selected Items

in millions

Q1.2015

Q2.2015

Q2.2014

YTD.2015

YTD.2014

Total decrease (increase) in working capital(1)

$   (127)

$       61

$       72

$       (66)

$         37

Cash spent for capital expenditures

$       (1)

$       —

$       (1)

$         (1)

$         (1)

(1) Working capital does not include cash balances.

*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.

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SOURCE Weyerhaeuser Company



RELATED LINKS

http://www.weyerhaeuser.com