Weyerhaeuser Reports Third Quarter Results
- 35 percent increase in earnings compared with second quarter
- Increased quarterly dividend 7 percent
- Completed $700 million share repurchase program announced in 2014, authorized new $500 million program
FEDERAL WAY, Wash., Oct. 30, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings to common shareholders of $180 million, or 35 cents per diluted share. This compares with net earnings of $133 million, or 26 cents per diluted share, for second quarter 2015 and net earnings from continuing operations before special items of $178 million, or 33 cents per diluted share, for the same period last year. Third quarter 2014 net earnings of $1,153 million, or $2.15 per diluted share, included after-tax gains of $975 million from discontinued operations and special items, primarily related to the divestiture of Weyerhaeuser Real Estate Company.
Net sales for the third quarter 2015 totaled $1.8 billion, compared with net sales of $1.8 billion for the second quarter, and $1.9 billion for the third quarter 2014.
"I am very pleased with our third quarter performance, as each of our businesses leveraged operational excellence improvements to drive strong results despite market and global macroeconomic headwinds," said Doyle R. Simons, president and chief executive officer. "In addition, we delivered on our ongoing commitment to return cash to shareholders by increasing our quarterly dividend by 7 percent and have completed the $700 million share repurchase authorized in 2014. We remain relentlessly focused on driving value for our shareholders and fully capitalizing on an improving US housing market."
| WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2015 |
2015 |
2014 |
| (millions, except per share data) |
2Q |
3Q |
3Q |
| Net sales from continuing operations |
$1,807 |
$1,820 |
$1,915 |
| Net earnings attributable to Weyerhaeuser common shareholders(1) |
$133 |
$180 |
$1,153 |
| Weighted average shares outstanding, diluted |
520 |
517 |
536 |
| Earnings per diluted share |
$0.26 |
$0.35 |
$2.15 |
| Earnings per diluted share from continuing operations |
$0.26 |
$0.35 |
$0.35 |
| Net earnings from continuing operations before special items(2) |
$133 |
$180 |
$178 |
| Earnings per diluted share from continuing operations before special items |
$0.26 |
$0.35 |
$0.33 |
| Cash and cash equivalents at end of period(3) |
$1,121 |
$1,048 |
$1,620 |
| (1) |
Third quarter 2014 includes net earnings from discontinued operations of $966 million, primarily related to the gain on the divestiture of Weyerhaeuser Real Estate Company. |
| (2) |
There were no special items for the second or third quarter of 2015. Special items for the third quarter of 2014 includes gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative. |
| (3) |
Cash and cash equivalents at the end of the period exclude discontinued operations. |
| TIMBERLANDS |
|||
| FINANCIAL HIGHLIGHTS (millions) |
2Q 2015 |
3Q 2015 |
Change |
| Net sales |
$336 |
$326 |
($10) |
| Contribution to pre-tax earnings |
$127 |
$126 |
($1) |
3Q 2015 Performance - In the West, fee harvest volumes declined due to fire season logging constraints and log sales realizations decreased due to a shift in mix from export to domestic markets. In the South, higher fee harvest volumes were offset by seasonally higher silviculture costs. Earnings from the disposition of non-strategic timberlands increased by $8 million compared with the second quarter.
4Q 2015 Outlook - Weyerhaeuser expects comparable earnings from the Timberlands segment in the fourth quarter. In the West, the company expects slightly higher fee harvest volumes and improved mix primarily due to increased shipments to Japan. In the South, the company anticipates comparable fee harvest volumes and higher logging costs.
| WOOD PRODUCTS |
|||
| FINANCIAL HIGHLIGHTS (millions) |
2Q 2015 |
3Q 2015 |
Change |
| Net sales |
$1,004 |
$1,023 |
$19 |
| Contribution to pre-tax earnings |
$71 |
$85 |
$14 |
3Q 2015 Performance - Sales volumes increased across most product lines, Western log costs declined, and manufacturing costs improved. Higher average sales realizations for oriented strand board were more than offset by lower average sales realizations for lumber.
4Q 2015 Outlook - Weyerhaeuser expects significantly lower earnings from the Wood Products segment in the fourth quarter. The company anticipates seasonally lower sales volumes, reduced operating rates, and additional planned maintenance primarily in oriented strand board. The company also expects lower average sales realizations for lumber and higher average sales realizations for oriented strand board.
| CELLULOSE FIBERS |
|||
| FINANCIAL HIGHLIGHTS (millions) |
2Q 2015 |
3Q 2015 |
Change |
| Net sales |
$467 |
$471 |
$4 |
| Contribution to pre-tax earnings |
$27 |
$79 |
$52 |
3Q 2015 Performance - Maintenance costs decreased significantly and production increased due to minimal scheduled maintenance outage days. Input costs declined, offset by lower average sales realizations for pulp and liquid packaging board.
4Q 2015 Outlook - Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the fourth quarter. The company anticipates lower average pulp sales realizations, increased scheduled maintenance, and seasonally higher fiber costs.
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 webcast and conference call at 7 a.m. Pacific (10 a.m. Eastern) on October 30 to discuss third quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 30.
To join the conference call from within North America, dial 877-296-9413 (access code: 28175672) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28175672). Replays will be available for one week at 855-859-2056 (access code: 28175672) from within North America and at 404-537-3406 (access code: 28175672) 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 fourth quarter of 2015, including with respect to: earnings; harvest and shipment volumes, and costs in Timberlands; sales volumes, operating rates, planned maintenance, and average sales realizations in Wood Products; and pulp sales realizations, fiber costs, and scheduled maintenance 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 |
||||||||
| Q3.2015 Analyst Package |
|||||||||
| Preliminary results (unaudited) |
|||||||||
| Consolidated Statement of Operations |
|||||||||
| in millions |
Q2 |
Q3 |
Year-to-date |
||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Net Sales |
$ 1,807 |
$ 1,820 |
$ 1,915 |
$ 5,348 |
$ 5,615 |
||||
| Cost of products sold |
1,474 |
1,445 |
1,504 |
4,304 |
4,364 |
||||
| Gross margin |
333 |
375 |
411 |
1,044 |
1,251 |
||||
| Selling expenses |
28 |
27 |
28 |
83 |
83 |
||||
| General and administrative expenses |
71 |
60 |
73 |
205 |
249 |
||||
| Research and development expenses |
6 |
6 |
5 |
17 |
19 |
||||
| Charges for restructuring, closures and impairments |
— |
2 |
10 |
16 |
37 |
||||
| Other operating costs (income), net |
(15) |
21 |
(23) |
21 |
(163) |
||||
| Operating income |
243 |
259 |
318 |
702 |
1,026 |
||||
| Interest income and other |
2 |
4 |
7 |
9 |
27 |
||||
| Interest expense, net of capitalized interest |
(88) |
(88) |
(88) |
(259) |
(254) |
||||
| Earnings from continuing operations before income taxes |
157 |
175 |
237 |
452 |
799 |
||||
| Income tax (expense) benefit |
(13) |
16 |
(39) |
(16) |
(148) |
||||
| Earnings from continuing operations |
144 |
191 |
198 |
436 |
651 |
||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
966 |
— |
998 |
||||
| Net earnings |
144 |
191 |
1,164 |
436 |
1,649 |
||||
| Add: net loss attributable to noncontrolling interests |
— |
— |
— |
— |
— |
||||
| Dividends on preference shares |
(11) |
(11) |
(11) |
(33) |
(33) |
||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ 133 |
$ 180 |
$ 1,153 |
$ 403 |
$ 1,616 |
||||
| Per Share Information |
|||||||||
| Q2 |
Q3 |
Year-to-date |
|||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Earnings per share attributable to Weyerhaeuser common shareholders, basic: |
|||||||||
| Continuing operations |
$ 0.26 |
$ 0.35 |
$ 0.35 |
$ 0.78 |
$ 1.09 |
||||
| Discontinued operations |
— |
— |
1.82 |
— |
1.76 |
||||
| Net earnings per share |
$ 0.26 |
$ 0.35 |
$ 2.17 |
$ 0.78 |
$ 2.85 |
||||
| Earnings per share attributable to Weyerhaeuser common shareholders, diluted: |
|||||||||
| Continuing operations |
$ 0.26 |
$ 0.35 |
$ 0.35 |
$ 0.77 |
$ 1.08 |
||||
| Discontinued operations |
— |
— |
1.80 |
— |
1.75 |
||||
| Net earnings per share |
$ 0.26 |
$ 0.35 |
$ 2.15 |
$ 0.77 |
$ 2.83 |
||||
| Dividends paid per common share |
$ 0.29 |
$ 0.31 |
$ 0.29 |
$ 0.89 |
$ 0.73 |
||||
| Weighted average shares outstanding (in thousands): |
|||||||||
| Basic |
516,626 |
514,301 |
531,913 |
518,121 |
567,436 |
||||
| Diluted |
519,804 |
517,088 |
536,012 |
521,455 |
571,503 |
||||
| Common shares outstanding at end of period (in thousands) |
514,121 |
511,033 |
525,485 |
511,033 |
525,485 |
||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
|||||||||
| in millions |
Q2 |
Q3 |
Year-to-date |
||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Net earnings |
$ 144 |
$ 191 |
$ 1,164 |
$ 436 |
$ 1,649 |
||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
(966) |
— |
(998) |
||||
| Interest income and other |
(2) |
(4) |
(7) |
(9) |
(27) |
||||
| Interest expense, net of capitalized interest |
88 |
88 |
88 |
259 |
254 |
||||
| Income tax expense (benefit) |
13 |
(16) |
39 |
16 |
148 |
||||
| Operating income |
243 |
259 |
318 |
702 |
1,026 |
||||
| Depreciation, depletion and amortization |
118 |
118 |
123 |
359 |
368 |
||||
| Non-operating pension and postretirement credits |
(3) |
(2) |
(12) |
(8) |
(33) |
||||
| Special items |
— |
— |
(15) |
13 |
(103) |
||||
| Adjusted EBITDA* |
$ 358 |
$ 375 |
$ 414 |
$ 1,066 |
$ 1,258 |
||||
| * Non-GAAP measure - see page 8 for definition. |
|||||||||
| Weyerhaeuser Company |
|||||
| Q3.2015 Analyst Package |
|||||
| Preliminary results (unaudited) |
|||||
| Consolidated Balance Sheet |
|||||
| in millions |
June 30, |
September 30, |
December 31, |
||
| ASSETS |
|||||
| Current assets: |
|||||
| Cash and cash equivalents |
$ 1,121 |
$ 1,048 |
$ 1,580 |
||
| Receivables, less allowances |
537 |
545 |
525 |
||
| Receivables for taxes |
12 |
14 |
25 |
||
| Inventories |
603 |
590 |
595 |
||
| Prepaid expenses |
82 |
87 |
80 |
||
| Deferred tax assets |
162 |
218 |
228 |
||
| Total current assets |
2,517 |
2,502 |
3,033 |
||
| Property and equipment, net |
2,557 |
2,484 |
2,623 |
||
| Construction in progress |
171 |
231 |
131 |
||
| Timber and timberlands at cost, less depletion charged to disposals |
6,531 |
6,507 |
6,530 |
||
| Investments in and advances to equity affiliates |
176 |
174 |
188 |
||
| Goodwill |
40 |
40 |
40 |
||
| Deferred tax assets |
2 |
— |
8 |
||
| Other assets |
274 |
267 |
289 |
||
| Restricted financial investments held by variable interest entities |
615 |
615 |
615 |
||
| Total assets |
$ 12,883 |
$ 12,820 |
$ 13,457 |
||
| LIABILITIES AND EQUITY |
|||||
| Current liabilities: |
|||||
| Accounts payable |
$ 343 |
$ 344 |
$ 331 |
||
| Accrued liabilities |
576 |
554 |
587 |
||
| Total current liabilities |
919 |
898 |
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 |
196 |
259 |
206 |
||
| Deferred pension and other postretirement benefits |
1,166 |
1,106 |
1,319 |
||
| Other liabilities |
275 |
277 |
308 |
||
| Total liabilities |
7,958 |
7,942 |
8,153 |
||
| Total equity |
4,925 |
4,878 |
5,304 |
||
| Total liabilities and equity |
$ 12,883 |
$ 12,820 |
$ 13,457 |
||
| Weyerhaeuser Company |
|||||||||
| Q3.2015 Analyst Package |
|||||||||
| Preliminary results (unaudited) |
|||||||||
| Consolidated Statement of Cash Flows |
|||||||||
| in millions |
Q2 |
Q3 |
Year-to-date |
||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Cash flows from operations: |
|||||||||
| Net earnings |
$ 144 |
$ 191 |
$ 1,164 |
$ 436 |
$ 1,649 |
||||
| Noncash charges (credits) to income: |
|||||||||
| Depreciation, depletion and amortization |
118 |
118 |
123 |
359 |
375 |
||||
| Deferred income taxes, net |
3 |
(6) |
45 |
10 |
170 |
||||
| Pension and other postretirement benefits |
11 |
11 |
(13) |
32 |
(104) |
||||
| Share-based compensation expense |
8 |
6 |
9 |
22 |
29 |
||||
| Charges for impairment of assets |
— |
1 |
— |
14 |
1 |
||||
| Net gains on dispositions of assets |
(5) |
(9) |
(1,002) |
(30) |
(1,048) |
||||
| Foreign exchange transaction (gains) losses |
(8) |
20 |
13 |
41 |
15 |
||||
| Change in: |
|||||||||
| Receivables less allowances |
(10) |
(15) |
20 |
(41) |
(28) |
||||
| Receivable for taxes |
12 |
(3) |
13 |
11 |
77 |
||||
| Inventories |
42 |
6 |
8 |
(9) |
(46) |
||||
| Real estate and land |
— |
— |
(26) |
— |
(133) |
||||
| Prepaid expenses |
9 |
— |
6 |
(2) |
6 |
||||
| Accounts payable and accrued liabilities |
66 |
(22) |
21 |
(47) |
(76) |
||||
| Deposits on land positions and other assets |
— |
— |
7 |
— |
15 |
||||
| Pension and postretirement contributions |
(19) |
(20) |
(22) |
(59) |
(85) |
||||
| Other |
(5) |
4 |
(13) |
(12) |
(33) |
||||
| Net cash from operations |
366 |
282 |
353 |
725 |
784 |
||||
| Cash flows from investing activities: |
|||||||||
| Property and equipment |
(99) |
(106) |
(105) |
(276) |
(239) |
||||
| Timberlands reforestation |
(9) |
(6) |
(7) |
(33) |
(32) |
||||
| Acquisition of timberlands |
— |
(2) |
— |
(34) |
— |
||||
| Net proceeds from Real Estate Divestiture, net of cash divested |
— |
— |
707 |
— |
707 |
||||
| Proceeds from sale of assets |
4 |
1 |
4 |
7 |
24 |
||||
| Other |
12 |
— |
25 |
12 |
25 |
||||
| Cash from investing activities |
(92) |
(113) |
624 |
(324) |
485 |
||||
| Cash flows from financing activities: |
|||||||||
| Net proceeds from issuance of Weyerhaeuser Real Estate |
— |
— |
— |
— |
887 |
||||
| Deposit of WRECO debt proceeds into escrow |
— |
— |
— |
— |
(887) |
||||
| Cash dividends on common shares |
(149) |
(159) |
(154) |
(460) |
(411) |
||||
| Cash dividends on preference shares |
(11) |
(11) |
(11) |
(22) |
(22) |
||||
| Change in book overdrafts |
— |
— |
(11) |
— |
(17) |
||||
| Payments on debt |
— |
— |
— |
— |
— |
||||
| Exercises of stock options |
4 |
4 |
30 |
29 |
84 |
||||
| Repurchase of common stock |
(154) |
(77) |
(123) |
(484) |
(123) |
||||
| Other |
(1) |
1 |
4 |
4 |
5 |
||||
| Cash from financing activities |
(311) |
(242) |
(265) |
(933) |
(484) |
||||
| Net change in cash and cash equivalents |
(37) |
(73) |
712 |
(532) |
785 |
||||
| Cash and cash equivalents at beginning of period |
1,158 |
1,121 |
908 |
1,580 |
835 |
||||
| Cash and cash equivalents at end of period |
$ 1,121 |
$ 1,048 |
$ 1,620 |
$ 1,048 |
$ 1,620 |
||||
| Cash paid (received) during the year for: |
|||||||||
| Interest, net of amount capitalized |
$ 58 |
$ 118 |
$ 100 |
$ 290 |
$ 253 |
||||
| Income taxes |
$ 4 |
$ (1) |
$ 5 |
$ 4 |
$ (40) |
||||
| Weyerhaeuser Company |
Total Company Statistics |
||||||||
| Q3.2015 Analyst Package |
|||||||||
| Preliminary results (unaudited) |
|||||||||
| Special Items Included in Net Earnings |
|||||||||
| in millions |
Q2 |
Q3 |
Year-to-date |
||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ 133 |
$ 180 |
$ 1,153 |
$ 403 |
$ 1,616 |
||||
| Restructuring, impairments and other charges |
— |
— |
6 |
9 |
24 |
||||
| Gain on sale of non-strategic asset |
— |
— |
— |
— |
(14) |
||||
| Gain on postretirement plan amendment |
— |
— |
(15) |
— |
(73) |
||||
| Net earnings attributable to Weyerhaeuser common shareholders before special items |
133 |
180 |
1,144 |
412 |
1,553 |
||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
(966) |
— |
(998) |
||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ 133 |
$ 180 |
$ 178 |
$ 412 |
$ 555 |
||||
| Q2 |
Q3 |
Year-to-date |
|||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders |
$ 0.26 |
$ 0.35 |
$ 2.15 |
$ 0.77 |
$ 2.83 |
||||
| Restructuring, impairments and other charges |
— |
— |
0.01 |
0.02 |
0.04 |
||||
| Gain on sale of non-strategic asset |
— |
— |
— |
— |
(0.02) |
||||
| Gain on postretirement plan amendment |
— |
— |
(0.03) |
— |
(0.13) |
||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items |
0.26 |
— |
2.13 |
0.79 |
2.72 |
||||
| Earnings from discontinued operations, net of income taxes |
— |
— |
(1.80) |
— |
(1.75) |
||||
| Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$ 0.26 |
$ 0.35 |
$ 0.33 |
$ 0.79 |
$ 0.97 |
||||
| Selected Total Company Items |
|||||||||
| in millions |
Q2 |
Q3 |
Year-to-date |
||||||
| June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
|||||
| Depreciation, depletion and amortization: |
|||||||||
| Cost of products sold |
$ 116 |
$ 116 |
$ 117 |
$ 350 |
$ 351 |
||||
| Selling, general and administrative expenses |
2 |
2 |
6 |
9 |
17 |
||||
| Total depreciation, depletion and amortization |
$ 118 |
$ 118 |
$ 123 |
$ 359 |
$ 368 |
||||
| Pension and postretirement costs: |
|||||||||
| Pension and postretirement costs allocated to business segments |
$ 14 |
$ 13 |
$ 11 |
$ 40 |
$ 33 |
||||
| Pension and postretirement credits not allocated |
(3) |
(2) |
(12) |
(8) |
(33) |
||||
| Total company pension and postretirement costs |
$ 11 |
$ 11 |
$ (1) |
$ 32 |
$ — |
||||
| Total decrease (increase) in working capital(1) |
$ 161 |
$ (79) |
$ 106 |
$ (25) |
$ (15) |
||||
| Cash spent for capital expenditures |
$ (108) |
$ (112) |
$ (112) |
$ (309) |
$ (267) |
||||
| (1) Working capital does not include cash balances. |
|||||||||
| Weyerhaeuser Company |
Timberlands Segment |
|||||||||
| Q3.2015 Analyst Package |
||||||||||
| Preliminary results (unaudited) |
||||||||||
| Segment Statement of Operations |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Sales to unaffiliated customers |
$ 336 |
$ 326 |
$ 364 |
$ 1,013 |
$ 1,138 |
|||||
| Intersegment sales |
187 |
210 |
218 |
625 |
642 |
|||||
| Total net sales |
523 |
536 |
582 |
1,638 |
1,780 |
|||||
| Cost of products sold |
385 |
401 |
432 |
1,191 |
1,262 |
|||||
| Gross margin |
138 |
135 |
150 |
447 |
518 |
|||||
| Selling expenses |
1 |
1 |
2 |
4 |
6 |
|||||
| General and administrative expenses |
21 |
21 |
23 |
64 |
72 |
|||||
| Research and development expenses |
4 |
3 |
4 |
10 |
11 |
|||||
| Charges for restructuring, closures and impairments |
— |
— |
1 |
— |
1 |
|||||
| Other operating income, net |
(15) |
(16) |
(16) |
(46) |
(42) |
|||||
| Operating income |
127 |
126 |
136 |
415 |
470 |
|||||
| Interest income and other |
— |
— |
— |
— |
— |
|||||
| Net contribution to earnings |
$ 127 |
$ 126 |
$ 136 |
$ 415 |
$ 470 |
|||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Operating income |
$ 127 |
$ 126 |
$ 136 |
$ 415 |
$ 470 |
|||||
| Depreciation, depletion and amortization |
51 |
51 |
51 |
155 |
154 |
|||||
| Adjusted EBITDA* |
$ 178 |
$ 177 |
$ 187 |
$ 570 |
$ 624 |
|||||
| * Non-GAAP measure - see page 8 for definition. |
||||||||||
| Selected Segment Items |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Total decrease (increase) in working capital(1) |
$ 52 |
$ (12) |
$ 25 |
$ 14 |
$ (19) |
|||||
| Cash spent for capital expenditures |
$ (17) |
$ (17) |
$ (19) |
$ (58) |
$ (56) |
|||||
| (1) Working capital does not include cash balances. |
||||||||||
| Segment Statistics |
||||||||||
| Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
||||||
| Third Party |
Logs: |
|||||||||
| West |
$ 221 |
$ 196 |
$ 227 |
$ 627 |
$ 745 |
|||||
| South |
58 |
64 |
69 |
180 |
191 |
|||||
| Canada |
3 |
6 |
5 |
17 |
12 |
|||||
| Total logs |
282 |
266 |
301 |
824 |
948 |
|||||
| Chip sales |
4 |
4 |
4 |
12 |
9 |
|||||
| Timberlands exchanges |
5 |
12 |
17 |
42 |
49 |
|||||
| Higher and better use land sales |
3 |
4 |
4 |
9 |
14 |
|||||
| Minerals, oil and gas |
5 |
7 |
10 |
19 |
25 |
|||||
| Products from international operations |
25 |
20 |
22 |
69 |
72 |
|||||
| Other products |
12 |
13 |
6 |
38 |
21 |
|||||
| Total |
$ 336 |
$ 326 |
$ 364 |
$ 1,013 |
$ 1,138 |
|||||
| Logs |
West |
$ 94.70 |
$ 93.44 |
$ 102.23 |
$ 95.63 |
$ 108.64 |
||||
| South |
$ 45.20 |
$ 45.96 |
$ 45.30 |
$ 45.51 |
$ 45.12 |
|||||
| Canada |
$ 35.43 |
$ 35.50 |
$ 37.75 |
$ 35.15 |
$ 36.65 |
|||||
| International |
$ 22.63 |
$ 18.71 |
$ 19.95 |
$ 20.29 |
$ 17.88 |
|||||
| Logs |
West |
2,330 |
2,104 |
2,223 |
6,554 |
6,859 |
||||
| South |
1,295 |
1,396 |
1,500 |
3,962 |
4,224 |
|||||
| Canada |
75 |
159 |
152 |
479 |
338 |
|||||
| International |
179 |
175 |
170 |
504 |
456 |
|||||
| Total |
3,879 |
3,834 |
4,045 |
11,499 |
11,877 |
|||||
| Logs |
West |
2,811 |
2,666 |
2,656 |
8,388 |
8,419 |
||||
| South |
2,912 |
3,008 |
2,950 |
8,652 |
8,531 |
|||||
| International |
219 |
200 |
232 |
658 |
730 |
|||||
| Total |
5,942 |
5,874 |
5,838 |
17,698 |
17,680 |
|||||
| Weyerhaeuser Company |
Wood Products Segment |
|||||||||
| Q3.2015 Analyst Package |
||||||||||
| Preliminary results (unaudited) |
||||||||||
| Segment Statement of Operations |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Sales to unaffiliated customers |
$ 1,004 |
$ 1,023 |
$ 1,048 |
$ 2,950 |
$ 3,023 |
|||||
| Intersegment sales |
22 |
20 |
20 |
61 |
60 |
|||||
| Total net sales |
1,026 |
1,043 |
1,068 |
3,011 |
3,083 |
|||||
| Cost of products sold |
903 |
914 |
910 |
2,646 |
2,640 |
|||||
| Gross margin |
123 |
129 |
158 |
365 |
443 |
|||||
| Selling expenses |
23 |
23 |
22 |
69 |
70 |
|||||
| General and administrative expenses |
26 |
21 |
31 |
74 |
98 |
|||||
| Research and development expenses |
1 |
1 |
— |
2 |
3 |
|||||
| Charges for restructuring, closures and impairments |
— |
1 |
— |
1 |
2 |
|||||
| Other operating costs (income), net |
2 |
(2) |
— |
1 |
(1) |
|||||
| Operating income |
71 |
85 |
105 |
218 |
271 |
|||||
| Interest income and other |
— |
— |
— |
— |
— |
|||||
| Net contribution to earnings |
$ 71 |
$ 85 |
$ 105 |
$ 218 |
$ 271 |
|||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Operating income |
$ 71 |
$ 85 |
$ 105 |
$ 218 |
$ 271 |
|||||
| Depreciation, depletion and amortization |
27 |
26 |
30 |
79 |
89 |
|||||
| Adjusted EBITDA* |
$ 98 |
$ 111 |
$ 135 |
$ 297 |
$ 360 |
|||||
| * Non-GAAP measure - see page 8 for definition. |
||||||||||
| Selected Segment Items |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Total decrease (increase) in working capital(1) |
$ 42 |
$ 23 |
$ 41 |
$ (34) |
$ (67) |
|||||
| Cash spent for capital expenditures |
(60) |
(60) |
(56) |
(165) |
(112) |
|||||
| (1) Working capital does not include cash balances. |
||||||||||
| Segment Statistics |
||||||||||
| in millions, except for third-party sales realizations |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Structural Lumber |
Third party net sales |
$ 450 |
$ 455 |
$ 500 |
$ 1,339 |
$ 1,442 |
||||
| Third party sales realizations |
$ 383 |
$ 372 |
$ 431 |
$ 385 |
$ 430 |
|||||
| Third party sales volumes(1) |
1,175 |
1,224 |
1,162 |
3,474 |
3,357 |
|||||
| Production volumes |
1,087 |
1,087 |
1,049 |
3,217 |
3,139 |
|||||
| Outside purchase volumes |
98 |
92 |
91 |
279 |
251 |
|||||
| Engineered Solid |
Third party net sales |
$ 113 |
$ 116 |
$ 104 |
$ 323 |
$ 308 |
||||
| Third party sales realizations |
$ 2,032 |
$ 2,043 |
$ 2,031 |
$ 2,016 |
$ 1,989 |
|||||
| Third party sales volumes(1) |
5.6 |
5.6 |
5.1 |
16 |
15.5 |
|||||
| Production volumes |
5.6 |
5.2 |
5.2 |
15.8 |
15.8 |
|||||
| Outside purchase volumes |
— |
— |
— |
— |
2.3 |
|||||
| Engineered |
Third party net sales |
$ 76 |
$ 79 |
$ 74 |
$ 216 |
$ 214 |
||||
| Third party sales realizations |
$ 1,502 |
$ 1,520 |
$ 1,540 |
$ 1,511 |
$ 1,489 |
|||||
| Third party sales volumes(1) |
50 |
52 |
49 |
143 |
144 |
|||||
| Production volumes |
48 |
50 |
50 |
141 |
149 |
|||||
| Outside purchase volumes |
1 |
2 |
1 |
4 |
5 |
|||||
| Oriented Strand |
Third party net sales |
$ 147 |
$ 151 |
$ 157 |
$ 435 |
$ 464 |
||||
| Third party sales realizations |
$ 191 |
$ 194 |
$ 215 |
$ 194 |
$ 223 |
|||||
| Third party sales volumes(1) |
771 |
778 |
732 |
2,249 |
2,079 |
|||||
| Production volumes |
700 |
746 |
717 |
2,150 |
2,055 |
|||||
| Outside purchase volumes |
82 |
77 |
52 |
223 |
156 |
|||||
| Softwood Plywood |
Third party net sales |
$ 36 |
$ 33 |
$ 42 |
$ 102 |
$ 107 |
||||
| Third party sales realizations |
$ 354 |
$ 330 |
$ 381 |
$ 349 |
$ 355 |
|||||
| Third party sales volumes(1) |
101 |
100 |
110 |
290 |
302 |
|||||
| Production volumes |
63 |
67 |
72 |
191 |
191 |
|||||
| Outside purchase volumes |
27 |
27 |
31 |
91 |
100 |
|||||
| (1) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
| Weyerhaeuser Company |
Cellulose Fibers Segment |
|||||||||
| Q3.2015 Analyst Package |
||||||||||
| Preliminary results (unaudited) |
||||||||||
| Segment Statement of Operations |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Total net sales |
$ 467 |
$ 471 |
$ 503 |
$ 1,385 |
$ 1,454 |
|||||
| Cost of products sold |
417 |
371 |
427 |
1,182 |
1,198 |
|||||
| Gross margin |
50 |
100 |
76 |
203 |
256 |
|||||
| Selling expenses |
4 |
3 |
3 |
10 |
11 |
|||||
| General and administrative expenses |
17 |
16 |
18 |
50 |
58 |
|||||
| Research and development expenses |
1 |
2 |
1 |
5 |
5 |
|||||
| Other operating income, net |
(6) |
(5) |
(6) |
(19) |
(23) |
|||||
| Operating income |
34 |
84 |
60 |
157 |
205 |
|||||
| Interest income and other |
(7) |
(5) |
(1) |
(18) |
(1) |
|||||
| Net contribution to earnings |
$ 27 |
$ 79 |
$ 59 |
$ 139 |
$ 204 |
|||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Operating income |
$ 34 |
$ 84 |
$ 60 |
$ 157 |
$ 205 |
|||||
| Depreciation, depletion and amortization |
38 |
39 |
39 |
116 |
116 |
|||||
| Adjusted EBITDA* |
$ 72 |
$ 123 |
$ 99 |
$ 273 |
$ 321 |
|||||
| * Non-GAAP measure - see page 8 for definition. |
||||||||||
| Selected Segment Items |
||||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
|||||
| Total decrease (increase) in working capital(1) |
$ 6 |
$ (24) |
$ 39 |
$ 22 |
$ 33 |
|||||
| Cash spent for capital expenditures |
(31) |
(27) |
(36) |
(85) |
(97) |
|||||
| (1) Working capital does not include cash balances. |
||||||||||
| Segment Statistics |
||||||||||
| Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
||||||
| Pulp |
Third party net sales (millions) |
$ 368 |
$ 383 |
$ 408 |
$ 1,111 |
$ 1,154 |
||||
| Third party sales realizations |
$ 823 |
$ 818 |
$ 858 |
$ 831 |
$ 843 |
|||||
| Third party sales volumes (thousands) |
448 |
468 |
474 |
1,337 |
1,368 |
|||||
| Production volumes (thousands) |
422 |
477 |
465 |
1,341 |
1,391 |
|||||
| Liquid |
Third party net sales (millions) |
$ 84 |
$ 74 |
$ 80 |
$ 232 |
$ 247 |
||||
| Third party sales realizations |
$ 1,218 |
$ 1,168 |
$ 1,307 |
$ 1,194 |
$ 1,275 |
|||||
| Third party sales volumes (thousands) |
69 |
63 |
62 |
194 |
194 |
|||||
| Production volumes (thousands) |
64 |
68 |
53 |
192 |
195 |
|||||
| Weyerhaeuser Company |
Unallocated Items |
||||||||
| Q3.2015 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 financing and the elimination of intersegment profit in inventory and the LIFO reserve. |
|||||||||
| Contribution to Earnings |
|||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
||||
| Unallocated corporate function expenses |
$ (7) |
$ (4) |
$ (3) |
$ (20) |
$ (17) |
||||
| Unallocated share-based compensation |
1 |
6 |
1 |
10 |
(2) |
||||
| Unallocated pension & postretirement credits |
3 |
2 |
35 |
8 |
146 |
||||
| Foreign exchange gains (losses) |
9 |
(20) |
(14) |
(40) |
(16) |
||||
| Elimination of intersegment profit in inventory and LIFO |
18 |
3 |
12 |
9 |
(8) |
||||
| Other |
(13) |
(23) |
(14) |
(55) |
(23) |
||||
| Operating income (loss) |
11 |
(36) |
17 |
(88) |
80 |
||||
| Interest income and other |
9 |
9 |
8 |
27 |
28 |
||||
| Net contribution to earnings from continuing operations(1) |
$ 20 |
$ (27) |
$ 25 |
$ (61) |
$ 108 |
||||
| (1) We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately. |
|||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
|||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
||||
| Operating income (loss) |
$ 11 |
$ (36) |
$ 17 |
$ (88) |
$ 80 |
||||
| Depreciation, depletion and amortization |
2 |
2 |
3 |
9 |
9 |
||||
| Non-operating pension and postretirement credits |
(3) |
(2) |
(12) |
(8) |
(33) |
||||
| Special items |
— |
— |
(15) |
13 |
(103) |
||||
| Adjusted EBITDA* |
$ 10 |
$ (36) |
$ (7) |
$ (74) |
$ (47) |
||||
| * Non-GAAP measure - see below for definition. |
|||||||||
| Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) |
|||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
||||
| Gain on postretirement plan amendment |
$ — |
$ — |
$ 23 |
$ — |
$ 113 |
||||
| Restructuring, impairments and other charges |
— |
— |
(8) |
(13) |
(32) |
||||
| Gain on sale of non-strategic asset |
— |
— |
— |
— |
22 |
||||
| Total |
$ — |
$ — |
$ 15 |
$ (13) |
$ 103 |
||||
| Unallocated Selected Items |
|||||||||
| in millions |
Q2.2015 |
Q3.2015 |
Q3.2014 |
YTD.2015 |
YTD.2014 |
||||
| Total decrease (increase) in working capital(1) |
$ 61 |
$ (66) |
$ 1 |
$ (132) |
$ 38 |
||||
| Cash spent for capital expenditures |
$ — |
$ — |
$ (1) |
$ (1) |
$ (2) |
||||
| (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
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