Industry Press Releases

Weyerhaeuser Reports Third Quarter Results

Saturday, Oct 31, 2015
Pressreleases

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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,
2015

 

September 30,
2015

 

December 31,
2014

 

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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
Company (WRECO) debt

 

 

 

 

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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,
2015

 

September 30,
2015

 

September 30,
2014

 

September 30,
2015

 

September 30,
2014

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 
Net Sales 
(millions)

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
Third Party Sales
Realizations
(per cubic meter)

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
Third Party Sales
Volumes
(cubic meters, thousands)

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
Fee Harvest Volumes
(cubic meters, thousands)

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
(board feet)

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
Section
(cubic feet)

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
I-joists
(lineal feet)

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
Board
(square feet 3/8')

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
(square feet 3/8')

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
(air-dry metric tons)

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
Packaging
Board
(metric tons)

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.
Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders' interest.

                   
                   

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.

 

prnewswire.com 

Other Press Releases