Weyerhaeuser reports fourth quarter, full year results
- Generated full year net earnings of over $1 billion or $1.39 per diluted share
- Increased Adjusted EBITDA by nearly 55 percent
- Merged with Plum Creek, ahead of schedule on capturing synergies
- Sold Cellulose Fibers businesses for $2.5 billion and net gain of $546 million
- Repurchased $2 billion of common shares
SEATTLE, Feb. 3, 2017 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings to common shareholders of $551 million, or 73 cents per diluted share, on net sales of $1.6 billion. This compares with net earnings of $59 million, or 11 cents per diluted share, on net sales of $1.3 billion for the same period last year.
Fourth quarter results include after-tax earnings of $489 million from discontinued operations, primarily consisting of gains from the divestiture of the Cellulose Fibers pulp mills and printing papers business, and net after-tax charges of $44 million for special items. Excluding discontinued operations and special items, the company reported net earnings of $106 million or 14 cents per diluted share. This compares with net earnings from continuing operations before special items of $81 million for the same period last year and $172 million for third quarter 2016.
For the full year 2016, Weyerhaeuser reported net earnings attributable to common shareholders of $1.005 billion, or $1.39 per diluted share, on net sales of $6.4 billion. This compares with net earnings of $462 million on net sales of $5.2 billion for the same period last year. 2016 results include after-tax earnings of $612 million from discontinued operations related to the divested Cellulose Fibers segment.
Full year 2016 includes net after-tax charges of $141 million from special items. Excluding these items, the company reported net earnings from continuing operations before special items of $534 million, or 75 cents per diluted share. This compares with net earnings from continuing operations before special items of $382 million for the full year 2015.
"2016 was a transformational year for Weyerhaeuser. Through our merger with Plum Creek and the $2.5 billion divestiture of our Cellulose Fibers business, we became a focused timber, land and forest products company and nearly doubled the size of our timberland holdings," said Doyle R. Simons, president and chief executive officer. "In addition to completing these significant portfolio changes, we increased Adjusted EBITDA by nearly 55 percent, delivered more than $100 million of operational excellence improvements, captured significant merger synergies, and achieved the highest annual Wood Products earnings in over a decade. Finally, we returned cash to shareholders through a $2 billion share repurchase. Entering 2017, we remain strongly committed to driving industry-leading performance, continuing to capture benefits of the merger, and demonstrating disciplined capital allocation to drive superior value for shareholders."
WEYERHAEUSER FINANCIAL HIGHLIGHTS
Weyerhaeuser merged with Plum Creek Timber Company, Inc. (Plum Creek) on February 19, 2016. The financial statements presented within this release do not include Plum Creek financial results for any period prior to the February 19, 2016 merger date.
During 2016, Weyerhaeuser sold its Cellulose Fibers businesses. Results for the Cellulose Fibers segment are presented as discontinued operations. All periods presented have been revised to separate results of discontinued operations from the results of our continuing operations.
| WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2016 |
2016 |
2015 |
2016 |
2015 |
|||||||||||||
| (millions, except per share data) |
Q3 |
Q4 |
Q4 |
Full Year |
||||||||||||||
| Net sales |
$ |
1,709 |
$ |
1,596 |
$ |
1,266 |
$ |
6,365 |
$ |
5,246 |
||||||||
| Net earnings attributable to common shareholders |
$ |
227 |
$ |
551 |
$ |
59 |
$ |
1,005 |
$ |
462 |
||||||||
| Weighted average shares outstanding, diluted(1) |
754 |
753 |
514 |
722 |
520 |
|||||||||||||
| Earnings per diluted share |
$ |
0.30 |
$ |
0.73 |
$ |
0.11 |
$ |
1.39 |
$ |
0.89 |
||||||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(2) |
$ |
172 |
$ |
106 |
$ |
81 |
$ |
534 |
$ |
382 |
||||||||
| Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$ |
0.23 |
$ |
0.14 |
$ |
0.16 |
$ |
0.75 |
$ |
0.74 |
||||||||
| Adjusted EBITDA(3) |
$ |
434 |
$ |
400 |
$ |
248 |
$ |
1,583 |
$ |
1,025 |
||||||||
| (1) In first quarter 2016, Weyerhaeuser issued approximately 279 million shares in conjunction with the Plum Creek merger. During 2016, Weyerhaeuser repurchased approximately 68 million shares to complete our $2 billion accelerated repurchase commitment, part of the $2.5 billion repurchase authorization announced in conjunction with the merger transaction. In third quarter 2016, the company issued approximately 23 million shares as a result of the conversion of its mandatory convertible preference shares. |
||||||||||||||||||
| (2) After-tax special items for fourth quarter 2016 include a $24 million tax adjustment, $11 million for Plum Creek merger-related costs and $9 million of non-cash charges related to legacy real estate projects. Full year 2016 and full year 2015 include after-tax special charges from continuing operations of $141 million and $15 million respectively, primarily for Plum Creek merger-related costs. |
||||||||||||||||||
| (3) 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, basis in real estate sold, pension and postretirement costs not allocated to business segments and special items. Adjusted EBITDA excludes results from joint ventures. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. A reconciliation of Adjusted EBITDA to GAAP earnings is included within this release. |
||||||||||||||||||
TIMBERLANDS
| FINANCIAL HIGHLIGHTS (millions) |
3Q 2016 |
4Q 2016 |
Change |
||||||||
| Net sales |
$ |
700 |
$ |
672 |
$ |
(28) |
|||||
| Contribution to pre-tax earnings |
$ |
122 |
$ |
123 |
$ |
1 |
|||||
| Adjusted EBITDA |
$ |
223 |
$ |
223 |
$ |
— |
|||||
4Q 2016 Performance - In the South, average log sales realizations were comparable to third quarter and silviculture expenses decreased seasonally. In the West, modestly higher sales realizations for domestic and export logs were offset by lower harvest volumes and seasonally higher logging and road costs.
1Q 2017 Outlook - Weyerhaeuser expects first quarter earnings and Adjusted EBITDA from the Timberlands segment will be comparable to the fourth quarter. In the South, the company anticipates lower fee harvest volumes, comparable log price realizations and a seasonal increase in forestry and silviculture expenses. In the West, the company expects modestly higher log sales volumes and improved average realizations due to higher export mix.
REAL ESTATE, ENERGY AND NATURAL RESOURCES
| FINANCIAL HIGHLIGHTS (millions) |
3Q 2016 |
4Q 2016 |
Change |
||||||||
| Net sales |
$ |
48 |
$ |
102 |
$ |
54 |
|||||
| Contribution to pre-tax earnings |
$ |
15 |
$ |
13 |
$ |
(2) |
|||||
| Pre-tax charge for special items |
$ |
— |
$ |
14 |
$ |
14 |
|||||
| Contribution to pre-tax earnings before special items |
$ |
15 |
$ |
27 |
$ |
12 |
|||||
| Adjusted EBITDA |
$ |
37 |
$ |
90 |
$ |
53 |
|||||
4Q 2016 Performance - Real Estate sales increased significantly compared with third quarter, and earnings from Energy and Natural Resources operations were modestly higher. Special items for the fourth quarter included $14 million of non-cash charges related to legacy real estate projects.
1Q 2017 Outlook - Weyerhaeuser expects a significant seasonal decline in earnings and Adjusted EBITDA in the first quarter compared with the fourth quarter due to lower real estate sales. The company anticipates full year 2017 Adjusted EBITDA for the segment will exceed $250 million.
WOOD PRODUCTS
| FINANCIAL HIGHLIGHTS (millions) |
3Q 2016 |
4Q 2016 |
Change |
||||||||
| Net sales |
$ |
1,194 |
$ |
1,039 |
$ |
(155) |
|||||
| Contribution to pre-tax earnings |
$ |
170 |
$ |
99 |
$ |
(71) |
|||||
| Adjusted EBITDA |
$ |
203 |
$ |
132 |
$ |
(71) |
|||||
4Q 2016 Performance - Sales volumes declined seasonally across all product lines during the fourth quarter. Average sales realizations for lumber were slightly lower and oriented strand board realizations were comparable to third quarter levels. Operating rates decreased primarily due to maintenance and planned downtime for the installation of capital projects.
1Q 2017 Outlook - Weyerhaeuser expects higher earnings and Adjusted EBITDA from the Wood Products segment in the first quarter. The company expects higher sales volumes, comparable sales realizations for lumber and oriented strand board, and seasonally improved operating rates and manufacturing costs.
DISCONTINUED OPERATIONS
Discontinued operations include the company's Cellulose Fibers segment, which consisted of pulp mills, a liquid packaging board facility, and a printing papers joint venture. Sales of the Cellulose Fibers pulp mills and printing papers business closed on December 1, 2016 and November 1, 2016 respectively. The sale of the liquid packaging board business closed on August 31, 2016.
| FINANCIAL HIGHLIGHTS (millions) |
3Q 2016 |
4Q 2016 |
Change |
||||||||
| Total net sales |
$ |
420 |
$ |
231 |
$ |
(189) |
|||||
| Earnings from discontinued operations before income taxes |
$ |
47 |
$ |
35 |
$ |
(12) |
|||||
| Income taxes |
$ |
(23) |
$ |
(51) |
$ |
(28) |
|||||
| Net earnings (loss) from operations |
$ |
24 |
$ |
(16) |
$ |
(40) |
|||||
| Net gain on divestitures |
$ |
41 |
$ |
505 |
$ |
464 |
|||||
| Net earnings from discontinued operations |
$ |
65 |
$ |
489 |
$ |
424 |
|||||
4Q 2016 Performance - Earnings increased primarily due to gains on the divestiture of the Cellulose Fibers pulp mills and printing papers business.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control over 13 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 products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2016, we generated $6.4 billion in net sales and employed approximately 10,400 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on February 3 to discuss fourth quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on February 3.
To join the conference call from within North America, dial 877-296-9413 (access code: 43726350) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 43726350). Replays will be available for two weeks at 855-859-2056 (access code: 43726350) from within North America and at 404-537-3406 (access code: 43726350) 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 "outlook," "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," "plans," or other similar words. In addition, these words may use the positive or negative or another variation of those and similar words.
This release contains forward-looking statements regarding the company's expectations during the first quarter of 2017, including with respect to: earnings and Adjusted EBITDA; cost and operational synergies from the merger with Plum Creek; log price realizations, log sales volumes and export mix, harvest volumes and silviculture expense; real estate sales volumes; and sales volumes, operating rates and manufacturing costs across Wood Products product lines and expected realizations for lumber and oriented strand board.
Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ materially from the content of these forward-looking statements, include, but are not limited to:
- the effect of general economic conditions, including employment rates, interest rates, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
- market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
- performance of our manufacturing operations, including maintenance requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign producers;
- our ability to successfully realize the expected benefits from the merger with Plum Creek;
- the results of our strategic alternatives review of our operations in Uruguay;
- raw material availability and prices;
- the effect of weather;
- the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
- energy prices;
- the successful execution of our internal plans and strategic initiatives,
- transportation and labor availability and costs;
- federal tax policies;
- the effect of forestry, land use, environmental and other governmental regulations;
- legal proceedings;
- performance of pension fund investments and related derivatives;
- the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;
- changes in accounting principles; and
- other factors described under "Risk Factors" in our 2015 Annual Report on Form 10-K, our Registration Statement on Form S-4/A filed on December 23, 2015 and in our other filings from time to time with the Securities and Exchange Commission.
We are also a large exporter and our business is thus affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro, yen and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports and disruptions in shipping and transportation also may affect the company.
| For more information contact: |
Analysts - Beth Baum or Krista Kochivar (206) 539-3907 |
|
| Media - Anthony Chavez (206) 539-4406 |
| RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS |
|||||||||||||||||||
| We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income for the business segments, as those are the most directly comparable U.S. GAAP measures for each. |
|||||||||||||||||||
| The table below reconciles Adjusted EBITDA for the year ended December 31, 2016: |
|||||||||||||||||||
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
1,027 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(612) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
431 |
||||||||||||||||||
| Income taxes |
89 |
||||||||||||||||||
| Net contribution to earnings |
$ |
499 |
$ |
55 |
$ |
512 |
$ |
(131) |
$ |
935 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
(2) |
— |
(20) |
(22) |
||||||||||||||
| Interest income and other |
— |
— |
— |
(43) |
(43) |
||||||||||||||
| Operating income |
499 |
53 |
512 |
(194) |
870 |
||||||||||||||
| Depreciation, depletion and amortization |
366 |
13 |
129 |
4 |
512 |
||||||||||||||
| Basis of real estate sold |
— |
109 |
— |
— |
109 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(43) |
(43) |
||||||||||||||
| Special items(1)(2) |
— |
14 |
— |
121 |
135 |
||||||||||||||
| Adjusted EBITDA |
$ |
865 |
$ |
189 |
$ |
641 |
$ |
(112) |
$ |
1,583 |
|||||||||
| (1) Pre-tax special items included in Real Estate & ENR relate to non-cash charges recorded for legacy real estate projects. |
|
| (2) Pre-tax special items included in Unallocated Items consist of: $146 million Plum Creek merger-related costs, $36 million gain on sale of nonstrategic assets, and $11 million of legal expense. |
|
| The table below reconciles Adjusted EBITDA for the year ended December 31, 2015: |
|
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
506 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(95) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
341 |
||||||||||||||||||
| Income taxes |
(58) |
||||||||||||||||||
| Net contribution to earnings |
$ |
470 |
$ |
79 |
$ |
258 |
$ |
(113) |
$ |
694 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
— |
— |
— |
— |
||||||||||||||
| Interest income and other |
— |
— |
— |
(36) |
(36) |
||||||||||||||
| Operating income |
470 |
79 |
258 |
(149) |
658 |
||||||||||||||
| Depreciation, depletion and amortization |
208 |
1 |
106 |
10 |
325 |
||||||||||||||
| Basis of real estate sold |
— |
18 |
— |
— |
18 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(11) |
(11) |
||||||||||||||
| Special items(1)(2) |
— |
— |
8 |
27 |
35 |
||||||||||||||
| Adjusted EBITDA |
$ |
678 |
$ |
98 |
$ |
372 |
$ |
(123) |
$ |
1,025 |
|||||||||
| (1) Pre-tax special items included in Wood Products are restructuring charges related to the closure of four distribution centers. |
|
| (2) Pre-tax special items included in Unallocated Items consist of a $13 million noncash impairment charge related to a nonstrategic asset that was sold in the second quarter and $14 million of Plum Creek merger-related costs. |
|
| The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2016: |
|
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
551 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(489) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
108 |
||||||||||||||||||
| Income taxes |
25 |
||||||||||||||||||
| Net contribution to earnings |
$ |
123 |
$ |
13 |
$ |
99 |
$ |
(40) |
$ |
195 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
(1) |
— |
— |
(1) |
||||||||||||||
| Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
| Operating income |
123 |
12 |
99 |
(49) |
185 |
||||||||||||||
| Depreciation, depletion and amortization |
100 |
4 |
33 |
— |
137 |
||||||||||||||
| Basis of real estate sold |
— |
60 |
— |
— |
60 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(10) |
(10) |
||||||||||||||
| Special items(1)(2) |
— |
14 |
— |
14 |
28 |
||||||||||||||
| Adjusted EBITDA |
$ |
223 |
$ |
90 |
$ |
132 |
$ |
(45) |
$ |
400 |
|||||||||
| (1) Pre-tax special items included in Real Estate & ENR relate to non-cash charges recorded for legacy real estate projects. |
|
| (2) Pre-tax special items included in Unallocated Items are Plum Creek merger-related costs. |
|
| The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2016: |
|
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
227 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(65) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
114 |
||||||||||||||||||
| Income taxes |
22 |
||||||||||||||||||
| Net contribution to earnings |
$ |
122 |
$ |
15 |
$ |
170 |
$ |
(9) |
$ |
298 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
(1) |
— |
(8) |
(9) |
||||||||||||||
| Interest income and other |
— |
— |
— |
(15) |
(15) |
||||||||||||||
| Operating income |
122 |
14 |
170 |
(32) |
274 |
||||||||||||||
| Depreciation, depletion and amortization |
101 |
4 |
33 |
— |
138 |
||||||||||||||
| Basis of real estate sold |
— |
19 |
— |
— |
19 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(11) |
(11) |
||||||||||||||
| Special items(1) |
— |
— |
— |
14 |
14 |
||||||||||||||
| Adjusted EBITDA |
$ |
223 |
$ |
37 |
$ |
203 |
$ |
(29) |
$ |
434 |
|||||||||
| (1) Pre-tax special items include $14 million of Plum Creek merger-related costs. |
|
| The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2015: |
|
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate |
Wood |
Unallocated |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
70 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
16 |
||||||||||||||||||
| Interest expense, net of capitalized interest |
87 |
||||||||||||||||||
| Income taxes |
(22) |
||||||||||||||||||
| Net contribution to earnings |
$ |
107 |
$ |
27 |
$ |
40 |
$ |
(23) |
$ |
151 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
— |
— |
— |
— |
||||||||||||||
| Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
| Operating income |
107 |
27 |
40 |
(32) |
142 |
||||||||||||||
| Depreciation, depletion and amortization |
53 |
1 |
27 |
1 |
82 |
||||||||||||||
| Basis of real estate sold |
— |
5 |
— |
— |
5 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(3) |
(3) |
||||||||||||||
| Special items(1)(2) |
— |
— |
8 |
14 |
22 |
||||||||||||||
| Adjusted EBITDA |
$ |
160 |
$ |
33 |
$ |
75 |
$ |
(20) |
$ |
248 |
|||||||||
| (1) Pre-tax special items included in Wood Products are restructuring charges related to the closure of four distribution centers. |
|
| (2) Pre-tax special items included in Unallocated Items consist of Plum Creek merger-related costs. |
|
| Weyerhaeuser Company |
Exhibit 99.2 |
|||||||||||||||||||
| Q4.2016 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Consolidated Statement of Operations (1)(2) |
||||||||||||||||||||
| in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
|||||||||||||||
| Mar 31, 2016 |
Jun 30, 2016 |
Sep 30, 2016 |
Dec 31, 2016 |
Dec 31, 2015 |
Dec 31, 2016 |
Dec 31, |
||||||||||||||
| Net Sales |
$ |
1,405 |
$ |
1,655 |
$ |
1,709 |
$ |
1,596 |
$ |
1,266 |
$ |
6,365 |
$ |
5,246 |
||||||
| Cost of products sold |
1,089 |
1,258 |
1,314 |
1,265 |
998 |
4,926 |
4,121 |
|||||||||||||
| Gross margin |
316 |
397 |
395 |
331 |
268 |
1,439 |
1,125 |
|||||||||||||
| Selling expenses |
23 |
22 |
22 |
22 |
26 |
89 |
99 |
|||||||||||||
| General and administrative expenses |
76 |
94 |
78 |
84 |
75 |
332 |
259 |
|||||||||||||
| Research and development expenses |
5 |
4 |
5 |
5 |
6 |
19 |
18 |
|||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
111 |
14 |
16 |
29 |
23 |
170 |
39 |
|||||||||||||
| Other operating costs (income), net |
(52) |
5 |
— |
6 |
(4) |
(41) |
52 |
|||||||||||||
| Operating income from continuing operations |
153 |
258 |
274 |
185 |
142 |
870 |
658 |
|||||||||||||
| Equity earnings from joint ventures |
5 |
7 |
9 |
1 |
— |
22 |
— |
|||||||||||||
| Interest income and other |
9 |
10 |
15 |
9 |
9 |
43 |
36 |
|||||||||||||
| Interest expense, net of capitalized interest |
(95) |
(114) |
(114) |
(108) |
(87) |
(431) |
(341) |
|||||||||||||
| Earnings from continuing operations before income taxes |
72 |
161 |
184 |
87 |
64 |
504 |
353 |
|||||||||||||
| Income taxes |
(11) |
(31) |
(22) |
(25) |
22 |
(89) |
58 |
|||||||||||||
| Earnings from continuing operations |
61 |
130 |
162 |
62 |
86 |
415 |
411 |
|||||||||||||
| Earnings (loss) from discontinued operations, net of income taxes |
20 |
38 |
65 |
489 |
(16) |
612 |
95 |
|||||||||||||
| Net earnings |
81 |
168 |
227 |
551 |
70 |
1,027 |
506 |
|||||||||||||
| Dividends on preference shares |
(11) |
(11) |
— |
— |
(11) |
(22) |
(44) |
|||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ |
70 |
$ |
157 |
$ |
227 |
$ |
551 |
$ |
59 |
$ |
1,005 |
$ |
462 |
||||||
| (1) |
Discontinued operations as presented herein consist of the operations of our Cellulose Fibers segment. The corresponding assets and liabilities were classified as held for sale on our balance sheet as of June 30, 2016. All periods presented have been revised to separate the results of discontinued operations from the results of our continuing operations. Detailed operating results of discontinued operations are presented on page 10. |
| (2) |
Amounts presented reflect the balances and results of operations acquired in our merger with Plum Creek Timber, Inc., beginning on the merger date of February 19, 2016. |
| Per Share Information |
|||||||||||||||||||||||||||
| Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
|||||||||||||||||||||||
| Mar 31, |
Jun 30, 2016 |
Sep 30, |
Dec 31, 2016 |
Dec 31, |
Dec 31, 2016 |
Dec 31, 2015 |
|||||||||||||||||||||
| Earnings per share attributable to Weyerhaeuser common shareholders, basic: |
|||||||||||||||||||||||||||
| Continuing operations |
$ |
0.08 |
$ |
0.16 |
$ |
0.22 |
$ |
0.09 |
$ |
0.15 |
$ |
0.55 |
$ |
0.71 |
|||||||||||||
| Discontinued operations |
0.03 |
0.05 |
0.08 |
0.65 |
(0.04) |
0.85 |
0.18 |
||||||||||||||||||||
| Net earnings per share |
$ |
0.11 |
$ |
0.21 |
$ |
0.30 |
$ |
0.74 |
$ |
0.11 |
$ |
1.40 |
$ |
0.89 |
|||||||||||||
| Earnings per share attributable to Weyerhaeuser common shareholders, diluted: |
|||||||||||||||||||||||||||
| Continuing operations |
$ |
0.08 |
$ |
0.16 |
$ |
0.21 |
$ |
0.08 |
$ |
0.15 |
$ |
0.55 |
$ |
0.71 |
|||||||||||||
| Discontinued operations |
0.03 |
0.05 |
0.09 |
0.65 |
(0.04) |
0.84 |
0.18 |
||||||||||||||||||||
| Net earnings per share |
$ |
0.11 |
$ |
0.21 |
$ |
0.30 |
$ |
0.73 |
$ |
0.11 |
$ |
1.39 |
$ |
0.89 |
|||||||||||||
| Dividends paid per common share |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
1.24 |
$ |
1.20 |
|||||||||||||
| Weighted average shares outstanding (in thousands): |
|||||||||||||||||||||||||||
| Basic |
632,004 |
743,140 |
749,587 |
748,835 |
511,175 |
718,560 |
516,371 |
||||||||||||||||||||
| Diluted |
634,872 |
747,701 |
754,044 |
752,768 |
514,167 |
722,401 |
519,618 |
||||||||||||||||||||
| Common shares outstanding at end of period (in thousands) |
759,044 |
733,010 |
747,933 |
748,528 |
510,483 |
748,528 |
510,483 |
||||||||||||||||||||
| Weyerhaeuser Company |
|||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
|||||||||||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* |
|||||||||||||||||||||||||||
| in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
||||||||||||||||||||||
| Mar 31, 2016 |
Jun 30, 2016 |
Sep 30, 2016 |
Dec 31, 2016 |
Dec 31, 2015 |
Dec 31, 2016 |
Dec 31, 2015 |
|||||||||||||||||||||
| Net earnings |
$ |
81 |
$ |
168 |
$ |
227 |
$ |
551 |
$ |
70 |
$ |
1,027 |
$ |
506 |
|||||||||||||
| (Earnings) loss from discontinued operations, net of tax |
(20) |
(38) |
(65) |
(489) |
16 |
(612) |
(95) |
||||||||||||||||||||
| Equity earnings from joint ventures |
(5) |
(7) |
(9) |
(1) |
— |
(22) |
— |
||||||||||||||||||||
| Interest income and other |
(9) |
(10) |
(15) |
(9) |
(9) |
(43) |
(36) |
||||||||||||||||||||
| Interest expense, net of capitalized interest |
95 |
114 |
114 |
108 |
87 |
431 |
341 |
||||||||||||||||||||
| Income taxes |
11 |
31 |
22 |
25 |
(22) |
89 |
(58) |
||||||||||||||||||||
| Operating income from continuing operations |
153 |
258 |
274 |
185 |
142 |
870 |
658 |
||||||||||||||||||||
| Depreciation, depletion and amortization |
104 |
133 |
138 |
137 |
82 |
512 |
325 |
||||||||||||||||||||
| Basis of real estate sold |
17 |
13 |
19 |
60 |
5 |
109 |
18 |
||||||||||||||||||||
| Non-operating pension and postretirement credits |
(12) |
(10) |
(11) |
(10) |
(3) |
(43) |
(11) |
||||||||||||||||||||
| Special items in operating income |
74 |
19 |
14 |
28 |
22 |
135 |
35 |
||||||||||||||||||||
| Adjusted EBITDA* |
$ |
336 |
$ |
413 |
$ |
434 |
$ |
400 |
$ |
248 |
$ |
1,583 |
$ |
1,025 |
|||||||||||||
| *Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Beginning in the first quarter of 2016, we revised our definition of Adjusted EBITDA to add back the basis of real estate sold. We have revised our prior-period presentation to conform to our current reporting.
Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, pension and postretirement costs not allocated to business segments and special items. Adjusted EBITDA excludes results from joint ventures.
Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. |
|||||||||||||||||||||||||||
| Special Items Included in Net Earnings (income tax affected) |
|||||||||||||||||||||||||||
| in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
||||||||||||||||||||||
| Mar 31, 2016 |
Jun 30, 2016 |
Sep 30, 2016 |
Dec 31, |
Dec 31, 2015 |
Dec 31, 2016 |
Dec 31, |
|||||||||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ |
70 |
$ |
157 |
$ |
227 |
$ |
551 |
$ |
59 |
$ |
1,005 |
$ |
462 |
|||||||||||||
| Plum Creek merger-and integration-related costs |
98 |
4 |
10 |
11 |
14 |
123 |
14 |
||||||||||||||||||||
| Gain on sale of non-strategic asset |
(22) |
— |
— |
— |
— |
(22) |
— |
||||||||||||||||||||
| Legal expense |
— |
7 |
— |
— |
— |
7 |
— |
||||||||||||||||||||
| Restructuring, impairments and other charges |
— |
— |
— |
9 |
5 |
9 |
14 |
||||||||||||||||||||
| Tax adjustment |
— |
— |
— |
24 |
(13) |
24 |
(13) |
||||||||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders before special items |
146 |
168 |
237 |
595 |
65 |
1,146 |
477 |
||||||||||||||||||||
| (Earnings) loss from discontinued operations, net of tax |
(20) |
(38) |
(65) |
(489) |
16 |
(612) |
(95) |
||||||||||||||||||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
126 |
$ |
130 |
$ |
172 |
$ |
106 |
$ |
81 |
$ |
534 |
$ |
382 |
|||||||||||||
| Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
|||||||||||||||||||||||
| Mar 31, 2016 |
Jun 30, 2016 |
Sep 30, 2016 |
Dec 31, 2016 |
Dec 31, 2015 |
Dec 31, |
Dec 31, |
|||||||||||||||||||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders |
$ |
0.11 |
$ |
0.21 |
$ |
0.30 |
$ |
0.73 |
$ |
0.11 |
$ |
1.39 |
$ |
0.89 |
|||||||||||||
| Plum Creek merger-and integration-related costs |
0.15 |
— |
0.02 |
0.01 |
0.03 |
0.17 |
0.03 |
||||||||||||||||||||
| Gain on sale of non-strategic asset |
(0.03) |
— |
— |
— |
— |
(0.03) |
— |
||||||||||||||||||||
| Legal expense |
— |
0.01 |
— |
— |
— |
0.01 |
— |
||||||||||||||||||||
| Restructuring, impairments and other charges |
— |
— |
— |
0.01 |
0.01 |
0.01 |
0.03 |
||||||||||||||||||||
| Tax adjustment |
— |
— |
— |
0.04 |
(0.03) |
0.04 |
(0.03) |
||||||||||||||||||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items |
0.23 |
0.22 |
0.32 |
0.79 |
0.12 |
1.59 |
0.92 |
||||||||||||||||||||
| (Earnings) loss from discontinued operations, net of tax |
(0.03) |
(0.05) |
(0.09) |
(0.65) |
0.04 |
(0.84) |
(0.18) |
||||||||||||||||||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
0.20 |
$ |
0.17 |
$ |
0.23 |
$ |
0.14 |
$ |
0.16 |
$ |
0.75 |
$ |
0.74 |
|||||||||||||
| Weyerhaeuser Company |
|||||||||||||||||||
| Q4.2016 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Consolidated Balance Sheet |
|||||||||||||||||||
| in millions |
March 31, |
June 30, |
September 30, |
December 31, |
December 31, |
||||||||||||||
| ASSETS |
|||||||||||||||||||
| Current assets: |
|||||||||||||||||||
| Cash and cash equivalents |
$ |
411 |
$ |
485 |
$ |
769 |
$ |
676 |
$ |
1,011 |
|||||||||
| Receivables, less allowances |
382 |
409 |
412 |
390 |
276 |
||||||||||||||
| Receivables for taxes |
25 |
7 |
5 |
84 |
30 |
||||||||||||||
| Inventories |
423 |
387 |
368 |
358 |
325 |
||||||||||||||
| Prepaid expenses and other current assets |
123 |
132 |
150 |
114 |
63 |
||||||||||||||
| Assets of discontinued operations |
1,929 |
1,908 |
1,652 |
— |
1,934 |
||||||||||||||
| Total current assets |
3,293 |
3,328 |
3,356 |
1,622 |
3,639 |
||||||||||||||
| Property and equipment, net |
1,446 |
1,462 |
1,476 |
1,562 |
1,233 |
||||||||||||||
| Construction in progress |
151 |
172 |
202 |
213 |
144 |
||||||||||||||
| Timber and timberlands at cost, less depletion charged to disposals |
14,547 |
14,474 |
14,424 |
14,299 |
6,479 |
||||||||||||||
| Minerals and mineral rights, net |
325 |
319 |
321 |
319 |
14 |
||||||||||||||
| Investments in and advances to equity affiliates |
938 |
905 |
73 |
56 |
— |
||||||||||||||
| Goodwill |
40 |
40 |
40 |
40 |
40 |
||||||||||||||
| Deferred tax assets |
291 |
250 |
122 |
293 |
254 |
||||||||||||||
| Other assets |
409 |
424 |
317 |
224 |
302 |
||||||||||||||
| Restricted financial investments held by variable interest entities |
615 |
615 |
615 |
615 |
615 |
||||||||||||||
| Total assets |
$ |
22,055 |
$ |
21,989 |
$ |
20,946 |
$ |
19,243 |
$ |
12,720 |
|||||||||
| LIABILITIES AND EQUITY |
|||||||||||||||||||
| Current liabilities: |
|||||||||||||||||||
| Current maturities of long-term debt |
$ |
— |
$ |
— |
$ |
1,981 |
$ |
281 |
$ |
— |
|||||||||
| Notes payable |
4 |
1 |
1 |
1 |
4 |
||||||||||||||
| Accounts payable |
284 |
300 |
234 |
233 |
204 |
||||||||||||||
| Accrued liabilities |
483 |
590 |
533 |
691 |
427 |
||||||||||||||
| Liabilities of discontinued operations |
674 |
666 |
578 |
— |
690 |
||||||||||||||
| Total current liabilities |
1,445 |
1,557 |
3,327 |
1,206 |
1,325 |
||||||||||||||
| Note payable to timberland venture |
835 |
830 |
— |
— |
— |
||||||||||||||
| Long-term debt |
7,715 |
8,013 |
6,329 |
6,329 |
4,787 |
||||||||||||||
| Long-term debt (nonrecourse to the company) held by variable interest entities |
511 |
511 |
511 |
511 |
511 |
||||||||||||||
| Deferred pension and other postretirement benefits |
983 |
926 |
875 |
1,322 |
987 |
||||||||||||||
| Deposit received from contribution of timberlands to related party |
— |
437 |
429 |
426 |
— |
||||||||||||||
| Other liabilities |
285 |
285 |
285 |
269 |
241 |
||||||||||||||
| Total liabilities |
11,774 |
12,559 |
11,756 |
10,063 |
7,851 |
||||||||||||||
| Total equity |
10,281 |
9,430 |
9,190 |
9,180 |
4,869 |
||||||||||||||
| Total liabilities and equity |
$ |
22,055 |
$ |
21,989 |
$ |
20,946 |
$ |
19,243 |
$ |
12,720 |
|||||||||
| Weyerhaeuser Company |
|||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
|||||||||||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||||||||||
| Consolidated Statement of Cash Flows |
|||||||||||||||||||||||||||
| in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
||||||||||||||||||||||
| Mar 31, 2016 |
Jun 30, |
Sep 30, 2016 |
Dec 31, 2016 |
Dec 31, |
Dec 31, 2016 |
Dec 31, 2015 |
|||||||||||||||||||||
| Cash flows from operations: |
|||||||||||||||||||||||||||
| Net earnings |
$ |
81 |
$ |
168 |
$ |
227 |
$ |
551 |
$ |
70 |
$ |
1,027 |
$ |
506 |
|||||||||||||
| Noncash charges (credits) to income: |
|||||||||||||||||||||||||||
| Depreciation, depletion and amortization |
142 |
147 |
139 |
137 |
120 |
565 |
479 |
||||||||||||||||||||
| Basis of real estate sold |
17 |
13 |
19 |
60 |
5 |
109 |
18 |
||||||||||||||||||||
| Deferred income taxes, net |
18 |
38 |
40 |
(255) |
(10) |
(159) |
— |
||||||||||||||||||||
| Gains on sales of discontinued operations |
— |
— |
(60) |
(729) |
— |
(789) |
— |
||||||||||||||||||||
| Gains on sales of non-strategic assets |
(41) |
(10) |
(10) |
(12) |
(8) |
(73) |
(38) |
||||||||||||||||||||
| Pension and other postretirement benefits |
4 |
1 |
— |
— |
10 |
5 |
42 |
||||||||||||||||||||
| Other noncash charges (credits) |
8 |
26 |
13 |
27 |
103 |
74 |
198 |
||||||||||||||||||||
| Change in: |
|||||||||||||||||||||||||||
| Receivables less allowances |
(47) |
(43) |
(6) |
42 |
58 |
(54) |
17 |
||||||||||||||||||||
| Receivable for taxes |
10 |
25 |
2 |
69 |
(16) |
106 |
(5) |
||||||||||||||||||||
| Inventories |
(43) |
60 |
32 |
12 |
19 |
61 |
10 |
||||||||||||||||||||
| Prepaid expenses |
(1) |
— |
(2) |
8 |
5 |
5 |
3 |
||||||||||||||||||||
| Accounts payable and accrued liabilities |
(70) |
106 |
25 |
(50) |
12 |
11 |
(35) |
||||||||||||||||||||
| Pension and postretirement contributions |
(17) |
(12) |
(54) |
(16) |
(24) |
(99) |
(83) |
||||||||||||||||||||
| Distributions received from joint ventures |
5 |
— |
— |
9 |
15 |
14 |
15 |
||||||||||||||||||||
| Other |
(19) |
(27) |
(18) |
(4) |
(20) |
(68) |
(52) |
||||||||||||||||||||
| Net cash from operations |
47 |
492 |
347 |
(151) |
339 |
735 |
1,075 |
||||||||||||||||||||
| Cash flows from investing activities: |
|||||||||||||||||||||||||||
| Capital expenditures: |
|||||||||||||||||||||||||||
| Purchases of property and equipment |
(57) |
(83) |
(120) |
(191) |
(167) |
(451) |
(443) |
||||||||||||||||||||
| Timberlands reforestation costs |
(16) |
(18) |
(9) |
(16) |
(7) |
(59) |
(40) |
||||||||||||||||||||
| Acquisition of timberlands |
(6) |
(2) |
(2) |
— |
(2) |
(10) |
(36) |
||||||||||||||||||||
| Proceeds from sales of discontinued operations |
— |
— |
285 |
2,201 |
— |
2,486 |
— |
||||||||||||||||||||
| Proceeds from sale of non-strategic assets |
70 |
13 |
11 |
10 |
12 |
104 |
19 |
||||||||||||||||||||
| Proceeds from contribution of timberlands to related party |
— |
440 |
— |
— |
— |
440 |
— |
||||||||||||||||||||
| Other |
33 |
— |
52 |
(36) |
1 |
49 |
13 |
||||||||||||||||||||
| Cash from (used in) investing activities |
24 |
350 |
217 |
1,968 |
(163) |
2,559 |
(487) |
||||||||||||||||||||
| Cash flows from financing activities: |
|||||||||||||||||||||||||||
| Cash dividends on common shares |
(241) |
(228) |
(231) |
(232) |
(159) |
(932) |
(619) |
||||||||||||||||||||
| Cash dividends on preference shares |
— |
(11) |
(11) |
— |
(22) |
(22) |
(44) |
||||||||||||||||||||
| Proceeds from issuance of long-term debt |
1,098 |
300 |
300 |
— |
— |
1,698 |
— |
||||||||||||||||||||
| Payments of long-term debt |
(720) |
(3) |
— |
(1,700) |
— |
(2,423) |
— |
||||||||||||||||||||
| Repurchase of common stock |
(798) |
(831) |
(374) |
— |
(34) |
(2,003) |
(518) |
||||||||||||||||||||
| Other |
(7) |
8 |
39 |
12 |
3 |
52 |
25 |
||||||||||||||||||||
| Cash from financing activities |
(668) |
(765) |
(277) |
(1,920) |
(212) |
(3,630) |
(1,156) |
||||||||||||||||||||
| Net change in cash and cash equivalents |
(597) |
77 |
287 |
(103) |
(36) |
(336) |
(568) |
||||||||||||||||||||
| Cash from continuing operations at beginning of period |
$ |
1,011 |
$ |
411 |
$ |
485 |
$ |
769 |
$ |
1,046 |
$ |
1,011 |
1,577 |
||||||||||||||
| Cash from discontinued operations at beginning of period |
1 |
4 |
7 |
10 |
2 |
1 |
$ |
3 |
|||||||||||||||||||
| Cash and cash equivalents at beginning of period |
$ |
1,012 |
$ |
415 |
$ |
492 |
$ |
779 |
$ |
1,048 |
$ |
1,012 |
$ |
1,580 |
|||||||||||||
| Cash from continuing operations at end of period |
$ |
411 |
$ |
485 |
$ |
769 |
$ |
676 |
$ |
1,011 |
$ |
676 |
$ |
1,011 |
|||||||||||||
| Cash from discontinued operations at end of period |
4 |
7 |
10 |
— |
1 |
— |
1 |
||||||||||||||||||||
| Cash and cash equivalents at end of period |
$ |
415 |
$ |
492 |
$ |
779 |
$ |
676 |
$ |
1,012 |
$ |
676 |
$ |
1,012 |
|||||||||||||
| Cash paid (received) during the year for: |
|||||||||||||||||||||||||||
| Interest, net of amount capitalized |
$ |
133 |
$ |
92 |
$ |
142 |
$ |
79 |
$ |
57 |
$ |
446 |
$ |
347 |
|||||||||||||
| Income taxes |
$ |
(13) |
$ |
(12) |
$ |
(1) |
$ |
511 |
$ |
10 |
$ |
485 |
$ |
14 |
|||||||||||||
| Weyerhaeuser Company |
Total Company Statistics |
||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
|||||||||||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||||||||||
| Selected Total Company Items |
|||||||||||||||||||||||||||
| in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-date |
||||||||||||||||||||||
| Mar 31, 2016 |
Jun 30, 2016 |
Sep 30, 2016 |
Dec 31, 2016 |
Dec 31, |
Dec 31, 2016 |
Dec 31, 2015 |
|||||||||||||||||||||
| Pension and postretirement costs: |
|||||||||||||||||||||||||||
| Pension and postretirement costs allocated to business segments |
$ |
7 |
$ |
8 |
$ |
8 |
$ |
7 |
$ |
9 |
$ |
30 |
$ |
36 |
|||||||||||||
| Pension and postretirement costs (credits) not allocated |
(12) |
(10) |
(11) |
(10) |
(3) |
(43) |
(11) |
||||||||||||||||||||
| Accelerated pension costs included in Plum Creek merger-related costs (not allocated) |
5 |
— |
— |
— |
— |
5 |
— |
||||||||||||||||||||
| Total pension and postretirement costs for continuing operations |
— |
(2) |
(3) |
(3) |
6 |
(8) |
25 |
||||||||||||||||||||
| Pension and postretirement service costs directly attributable to discontinued operations |
4 |
3 |
3 |
3 |
4 |
13 |
17 |
||||||||||||||||||||
| Total company pension and postretirement costs |
$ |
4 |
$ |
1 |
$ |
— |
$ |
— |
$ |
10 |
$ |
5 |
$ |
42 |
|||||||||||||
| Cash spent for capital expenditures for continuing operations |
$ |
(51) |
$ |
(89) |
$ |
(100) |
$ |
(185) |
$ |
(141) |
$ |
(425) |
$ |
(365) |
|||||||||||||
| Weyerhaeuser Company |
Timberlands Segment |
|||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
||||||||||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Sales to unaffiliated customers |
$ |
387 |
$ |
471 |
$ |
484 |
$ |
463 |
$ |
312 |
$ |
1,805 |
$ |
1,273 |
||||||||||||||
| Intersegment sales |
222 |
193 |
216 |
209 |
205 |
840 |
830 |
|||||||||||||||||||||
| Total net sales |
609 |
664 |
700 |
672 |
517 |
2,645 |
2,103 |
|||||||||||||||||||||
| Cost of products sold |
459 |
509 |
559 |
527 |
390 |
2,054 |
1,566 |
|||||||||||||||||||||
| Gross margin |
150 |
155 |
141 |
145 |
127 |
591 |
537 |
|||||||||||||||||||||
| Selling expenses |
1 |
2 |
1 |
1 |
1 |
5 |
5 |
|||||||||||||||||||||
| General and administrative expenses |
28 |
32 |
20 |
24 |
21 |
104 |
82 |
|||||||||||||||||||||
| Research and development expenses |
4 |
4 |
4 |
5 |
6 |
17 |
16 |
|||||||||||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
| Other operating income, net |
(12) |
(8) |
(6) |
(8) |
(8) |
(34) |
(36) |
|||||||||||||||||||||
| Operating income and Net contribution to earnings |
$ |
129 |
$ |
125 |
$ |
122 |
$ |
123 |
$ |
107 |
$ |
499 |
$ |
470 |
||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Operating income |
$ |
129 |
$ |
125 |
$ |
122 |
$ |
123 |
$ |
107 |
$ |
499 |
$ |
470 |
||||||||||||||
| Depreciation, depletion and amortization |
70 |
95 |
101 |
100 |
53 |
366 |
208 |
|||||||||||||||||||||
| Adjusted EBITDA* |
$ |
199 |
$ |
220 |
$ |
223 |
$ |
223 |
$ |
160 |
$ |
865 |
$ |
678 |
||||||||||||||
| * See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||||||||||
| Selected Segment Items |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Total decrease (increase) in working capital(1) |
$ |
(53) |
$ |
28 |
$ |
(15) |
$ |
20 |
$ |
4 |
$ |
(20) |
$ |
18 |
||||||||||||||
| Cash spent for capital expenditures |
$ |
(20) |
$ |
(31) |
$ |
(26) |
$ |
(39) |
$ |
(17) |
$ |
(116) |
$ |
(75) |
||||||||||||||
| (1) Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR. |
||||||||||||||||||||||||||||
| Segment Statistics(2) |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Third Party |
Logs: |
|||||||||||||||||||||||||||
| West |
$ |
215 |
$ |
232 |
$ |
217 |
$ |
201 |
$ |
203 |
$ |
865 |
$ |
830 |
||||||||||||||
| South |
101 |
154 |
160 |
151 |
61 |
566 |
241 |
|||||||||||||||||||||
| North |
13 |
19 |
29 |
30 |
— |
91 |
— |
|||||||||||||||||||||
| Other |
7 |
7 |
11 |
13 |
7 |
38 |
24 |
|||||||||||||||||||||
| Total delivered logs |
336 |
412 |
417 |
395 |
271 |
1,560 |
1,095 |
|||||||||||||||||||||
| Stumpage and pay-as-cut timber |
15 |
23 |
24 |
23 |
10 |
85 |
37 |
|||||||||||||||||||||
| Products from international operations |
16 |
21 |
21 |
21 |
18 |
79 |
87 |
|||||||||||||||||||||
| Recreational and other lease revenue |
6 |
8 |
15 |
15 |
7 |
44 |
25 |
|||||||||||||||||||||
| Other revenue |
14 |
7 |
7 |
9 |
6 |
37 |
29 |
|||||||||||||||||||||
| Total |
$ |
387 |
$ |
471 |
$ |
484 |
$ |
463 |
$ |
312 |
$ |
1,805 |
$ |
1,273 |
||||||||||||||
| Delivered Logs Third Party Sales Realizations (per ton) |
West |
$ |
100.71 |
$ |
98.21 |
$ |
98.18 |
$ |
100.43 |
$ |
101.54 |
$ |
99.32 |
$ |
101.12 |
|||||||||||||
| South |
$ |
36.39 |
$ |
35.54 |
$ |
35.27 |
$ |
34.98 |
$ |
36.87 |
$ |
35.46 |
$ |
37.13 |
||||||||||||||
| North |
$ |
59.31 |
$ |
65.43 |
$ |
59.17 |
$ |
59.28 |
$ |
— |
$ |
60.47 |
$ |
— |
||||||||||||||
| International |
$ |
15.73 |
$ |
23.29 |
$ |
24.27 |
$ |
25.72 |
$ |
16.60 |
$ |
21.79 |
$ |
18.01 |
||||||||||||||
| Delivered Logs |
West |
2,133 |
2,363 |
2,209 |
2,008 |
2,005 |
8,713 |
8,212 |
||||||||||||||||||||
| South |
2,781 |
4,340 |
4,538 |
4,308 |
1,636 |
15,967 |
6,480 |
|||||||||||||||||||||
| North |
210 |
292 |
503 |
495 |
— |
1,500 |
— |
|||||||||||||||||||||
| International |
146 |
89 |
117 |
118 |
158 |
470 |
714 |
|||||||||||||||||||||
| Other |
169 |
169 |
263 |
342 |
167 |
943 |
551 |
|||||||||||||||||||||
| Fee Harvest Volumes |
West |
2,801 |
2,980 |
2,744 |
2,558 |
2,596 |
11,083 |
10,563 |
||||||||||||||||||||
| South |
5,030 |
7,061 |
6,992 |
7,260 |
3,565 |
26,343 |
14,113 |
|||||||||||||||||||||
| North |
260 |
454 |
678 |
652 |
— |
2,044 |
— |
|||||||||||||||||||||
| International |
299 |
248 |
242 |
330 |
255 |
1,119 |
980 |
|||||||||||||||||||||
| Other |
— |
181 |
191 |
329 |
— |
701 |
— |
|||||||||||||||||||||
| (2) |
The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations. |
| (3) |
Beginning in first quarter 2016, we report log sales and fee harvest volumes in tons. Prior period volumes have been converted from cubic meters to tons using conversion factors as follows: |
| West: 1.056 m3 = 1 ton |
|
| South: 0.818 m3 = 1 ton |
|
| Canada (in Other): 1.244 m3 = 1 ton |
|
| International: 0.907 m3 = 1 ton |
|
| Weyerhaeuser Company |
Real Estate, Energy and Natural Resources Segment |
|||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
||||||||||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Sales to unaffiliated customers |
$ |
39 |
$ |
38 |
$ |
48 |
$ |
101 |
$ |
32 |
$ |
226 |
$ |
101 |
||||||||||||||
| Intersegment sales |
— |
— |
— |
1 |
— |
1 |
— |
|||||||||||||||||||||
| Total net sales |
39 |
38 |
48 |
102 |
32 |
227 |
101 |
|||||||||||||||||||||
| Cost of products sold |
20 |
19 |
26 |
69 |
5 |
134 |
20 |
|||||||||||||||||||||
| Gross margin |
19 |
19 |
22 |
33 |
27 |
93 |
81 |
|||||||||||||||||||||
| Selling expenses |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
| General and administrative expenses |
4 |
8 |
7 |
7 |
3 |
26 |
6 |
|||||||||||||||||||||
| Charges for integration, restructuring, closures and asset impairments |
— |
1 |
— |
14 |
— |
15 |
— |
|||||||||||||||||||||
| Other operating income, net |
— |
(2) |
1 |
— |
(3) |
(1) |
(4) |
|||||||||||||||||||||
| Operating income |
15 |
12 |
14 |
12 |
27 |
53 |
79 |
|||||||||||||||||||||
| Equity earnings from joint ventures(1) |
— |
— |
1 |
1 |
— |
2 |
— |
|||||||||||||||||||||
| Net contribution to earnings |
$ |
15 |
$ |
12 |
$ |
15 |
$ |
13 |
$ |
27 |
$ |
55 |
$ |
79 |
||||||||||||||
| (1) Equity earnings (loss) from joint ventures attributed to the Real Estate and ENR segment are generated from our investments in our real estate development ventures. |
||||||||||||||||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Operating income |
$ |
15 |
$ |
12 |
$ |
14 |
$ |
12 |
$ |
27 |
$ |
53 |
$ |
79 |
||||||||||||||
| Depreciation, depletion and amortization |
2 |
3 |
4 |
4 |
1 |
13 |
1 |
|||||||||||||||||||||
| Basis of real estate sold |
17 |
13 |
19 |
60 |
5 |
109 |
18 |
|||||||||||||||||||||
| Special items |
— |
— |
— |
14 |
— |
14 |
— |
|||||||||||||||||||||
| Adjusted EBITDA* |
$ |
34 |
$ |
28 |
$ |
37 |
$ |
90 |
$ |
33 |
$ |
189 |
$ |
98 |
||||||||||||||
| * See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||||||||||
| Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Restructuring, impairments and other charges |
$ |
— |
$ |
— |
$ |
— |
$ |
(14) |
$ |
— |
$ |
(14) |
$ |
— |
||||||||||||||
| Selected Segment Items |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Cash spent for capital expenditures |
$ |
— |
$ |
(1) |
$ |
— |
$ |
— |
$ |
— |
$ |
(1) |
$ |
— |
||||||||||||||
| Segment Statistics |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Net Sales (millions) |
Real Estate |
$ |
30 |
$ |
26 |
$ |
31 |
$ |
85 |
$ |
25 |
$ |
172 |
$ |
75 |
|||||||||||||
| Energy and natural resources |
9 |
12 |
17 |
16 |
7 |
54 |
26 |
|||||||||||||||||||||
| Total |
$ |
39 |
$ |
38 |
$ |
48 |
$ |
101 |
$ |
32 |
$ |
226 |
$ |
101 |
||||||||||||||
| Acres sold |
Real Estate |
15,225 |
10,020 |
12,853 |
44,589 |
6,765 |
82,687 |
27,390 |
||||||||||||||||||||
| Price per acre |
Real Estate |
$ |
1,980 |
$ |
2,555 |
$ |
2,354 |
$ |
1,903 |
$ |
3,450 |
$ |
2,072 |
$ |
2,490 |
|||||||||||||
| Weyerhaeuser Company |
Wood Products Segment |
|||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
||||||||||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Sales to unaffiliated customers |
$ |
979 |
$ |
1,146 |
$ |
1,177 |
$ |
1,032 |
$ |
922 |
$ |
4,334 |
$ |
3,872 |
||||||||||||||
| Intersegment sales |
22 |
22 |
17 |
7 |
21 |
68 |
82 |
|||||||||||||||||||||
| Total net sales |
1,001 |
1,168 |
1,194 |
1,039 |
943 |
4,402 |
3,954 |
|||||||||||||||||||||
| Cost of products sold |
862 |
957 |
980 |
889 |
841 |
3,688 |
3,487 |
|||||||||||||||||||||
| Gross margin |
139 |
211 |
214 |
150 |
102 |
714 |
467 |
|||||||||||||||||||||
| Selling expenses |
22 |
20 |
21 |
21 |
25 |
84 |
94 |
|||||||||||||||||||||
| General and administrative expenses |
27 |
30 |
24 |
28 |
28 |
109 |
102 |
|||||||||||||||||||||
| Research and development expenses |
1 |
— |
1 |
— |
— |
2 |
2 |
|||||||||||||||||||||
| Charges for restructuring, closures and impairments |
1 |
4 |
1 |
1 |
9 |
7 |
10 |
|||||||||||||||||||||
| Other operating income, net |
1 |
1 |
(3) |
1 |
— |
— |
1 |
|||||||||||||||||||||
| Operating income and Net contribution to earnings |
$ |
87 |
$ |
156 |
$ |
170 |
$ |
99 |
$ |
40 |
$ |
512 |
$ |
258 |
||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Operating income |
$ |
87 |
$ |
156 |
$ |
170 |
$ |
99 |
$ |
40 |
$ |
512 |
$ |
258 |
||||||||||||||
| Depreciation, depletion and amortization |
30 |
33 |
33 |
33 |
27 |
129 |
106 |
|||||||||||||||||||||
| Special items |
— |
— |
— |
— |
8 |
— |
8 |
|||||||||||||||||||||
| Adjusted EBITDA* |
$ |
117 |
$ |
189 |
$ |
203 |
$ |
132 |
$ |
75 |
$ |
641 |
$ |
372 |
||||||||||||||
| * See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||||||||||
| Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Restructuring, impairments and other charges |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
(8) |
$ |
— |
$ |
(8) |
||||||||||||||
| Selected Segment Items |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Total decrease (increase) in working capital(1) |
$ |
(132) |
$ |
35 |
$ |
49 |
$ |
32 |
$ |
79 |
$ |
(16) |
$ |
45 |
||||||||||||||
| Cash spent for capital expenditures |
$ |
(29) |
$ |
(52) |
$ |
(71) |
$ |
(145) |
$ |
(122) |
$ |
(297) |
$ |
(287) |
||||||||||||||
| (1) Working capital does not include cash balances. |
||||||||||||||||||||||||||||
| Segment Statistics |
||||||||||||||||||||||||||||
| in millions, except for third-party sales realizations |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Structural Lumber |
Third party net sales |
$ |
419 |
$ |
498 |
$ |
495 |
$ |
427 |
$ |
402 |
$ |
1,839 |
$ |
1,741 |
|||||||||||||
| Third party sales realizations |
$ |
364 |
$ |
399 |
$ |
401 |
$ |
392 |
$ |
360 |
$ |
390 |
$ |
379 |
||||||||||||||
| Third party sales volumes(2) |
1,152 |
1,249 |
1,233 |
1,089 |
1,114 |
4,723 |
4,588 |
|||||||||||||||||||||
| Production volumes |
1,129 |
1,205 |
1,130 |
1,052 |
1,035 |
4,516 |
4,252 |
|||||||||||||||||||||
| Engineered Solid |
Third party net sales |
$ |
109 |
$ |
115 |
$ |
119 |
$ |
107 |
$ |
105 |
$ |
450 |
$ |
428 |
|||||||||||||
| Third party sales realizations |
$ |
1,971 |
$ |
1,922 |
$ |
1,916 |
$ |
1,930 |
$ |
1,987 |
$ |
1,934 |
$ |
2,008 |
||||||||||||||
| Third party sales volumes(2) |
5.5 |
6.0 |
6.2 |
5.6 |
5.3 |
23.3 |
21.3 |
|||||||||||||||||||||
| Production volumes |
5.6 |
5.9 |
5.7 |
5.6 |
5.1 |
22.8 |
20.9 |
|||||||||||||||||||||
| Engineered |
Third party net sales |
$ |
66 |
$ |
73 |
$ |
79 |
$ |
72 |
$ |
68 |
$ |
290 |
$ |
284 |
|||||||||||||
| Third party sales realizations |
$ |
1,507 |
$ |
1,471 |
$ |
1,475 |
$ |
1,485 |
$ |
1,515 |
$ |
1,484 |
$ |
1,512 |
||||||||||||||
| Third party sales volumes(2) |
44 |
50 |
53 |
48 |
45 |
195 |
188 |
|||||||||||||||||||||
| Production volumes |
46 |
46 |
49 |
43 |
44 |
184 |
185 |
|||||||||||||||||||||
| Oriented Strand |
Third party net sales |
$ |
163 |
$ |
182 |
199 |
$ |
163 |
$ |
160 |
$ |
707 |
$ |
595 |
||||||||||||||
| Third party sales realizations |
$ |
214 |
$ |
240 |
256 |
$ |
255 |
$ |
221 |
$ |
241 |
$ |
200 |
|||||||||||||||
| Third party sales volumes(2) |
759 |
761 |
776 |
638 |
723 |
2,934 |
2,972 |
|||||||||||||||||||||
| Production volumes |
749 |
733 |
777 |
651 |
697 |
2,910 |
2,847 |
|||||||||||||||||||||
| Softwood Plywood (square feet 3/8') |
Third party net sales |
$ |
35 |
$ |
50 |
$ |
48 |
$ |
41 |
$ |
27 |
$ |
174 |
$ |
129 |
|||||||||||||
| Third party sales realizations |
$ |
317 |
$ |
382 |
$ |
378 |
$ |
364 |
$ |
308 |
$ |
368 |
$ |
339 |
||||||||||||||
| Third party sales volumes(2) |
110 |
131 |
127 |
113 |
91 |
481 |
381 |
|||||||||||||||||||||
| Production volumes |
88 |
111 |
105 |
92 |
57 |
396 |
248 |
|||||||||||||||||||||
| (2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
||||||||||||||||||||||||||||
| Weyerhaeuser Company |
Unallocated Items |
||||||||||||||||||||||||||
| Q4.2016 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, equity earnings from our Timberland Venture, and the LIFO reserve. |
|||||||||||||||||||||||||||
| Contribution to Earnings |
|||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||
| Unallocated corporate function expenses |
$ |
(17) |
$ |
(24) |
$ |
(21) |
$ |
(25) |
$ |
(16) |
$ |
(87) |
$ |
(64) |
|||||||||||||
| Unallocated share-based compensation |
(2) |
1 |
(4) |
2 |
(4) |
(3) |
6 |
||||||||||||||||||||
| Unallocated pension & postretirement credits (costs) |
12 |
10 |
11 |
10 |
3 |
43 |
11 |
||||||||||||||||||||
| Foreign exchange gains (losses) |
13 |
1 |
(1) |
(7) |
(6) |
6 |
(46) |
||||||||||||||||||||
| Elimination of intersegment profit in inventory and LIFO |
(6) |
(2) |
2 |
(12) |
1 |
(18) |
8 |
||||||||||||||||||||
| Gain on sale of non-strategic asset |
36 |
8 |
1 |
5 |
4 |
50 |
6 |
||||||||||||||||||||
| Charges for integration and restructuring, closures, and asset impairments: |
|||||||||||||||||||||||||||
| Plum Creek merger- and integration-related costs |
(110) |
(8) |
(14) |
(14) |
(14) |
(146) |
(14) |
||||||||||||||||||||
| Other restructuring, closures and asset impairments |
— |
(1) |
(1) |
— |
— |
(2) |
(15) |
||||||||||||||||||||
| Other |
(4) |
(20) |
(5) |
(8) |
— |
(37) |
(41) |
||||||||||||||||||||
| Operating income (loss) |
(78) |
(35) |
(32) |
(49) |
(32) |
(194) |
(149) |
||||||||||||||||||||
| Equity earnings from joint venture(1) |
5 |
7 |
8 |
— |
— |
20 |
— |
||||||||||||||||||||
| Interest income and other |
9 |
10 |
15 |
9 |
9 |
43 |
36 |
||||||||||||||||||||
| Net contribution to earnings |
$ |
(64) |
$ |
(18) |
$ |
(9) |
$ |
(40) |
$ |
(23) |
$ |
(131) |
$ |
(113) |
|||||||||||||
| (1) Equity earning from joint venture included in Unallocated Items is generated from our investment in our timberland venture. |
|||||||||||||||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
|||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||
| Operating income (loss) |
$ |
(78) |
$ |
(35) |
$ |
(32) |
$ |
(49) |
$ |
(32) |
$ |
(194) |
$ |
(149) |
|||||||||||||
| Depreciation, depletion and amortization |
2 |
2 |
— |
— |
1 |
4 |
10 |
||||||||||||||||||||
| Non-operating pension and postretirement costs (credits) |
(12) |
(10) |
(11) |
(10) |
(3) |
(43) |
(11) |
||||||||||||||||||||
| Special items |
74 |
19 |
14 |
14 |
14 |
121 |
27 |
||||||||||||||||||||
| Adjusted EBITDA* |
$ |
(14) |
$ |
(24) |
$ |
(29) |
$ |
(45) |
$ |
(20) |
$ |
(112) |
$ |
(123) |
|||||||||||||
| * See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
|||||||||||||||||||||||||||
| Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) |
|||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Plum Creek merger-and integration-related costs |
$ |
(110) |
$ |
(8) |
$ |
(14) |
$ |
(14) |
$ |
(14) |
$ |
(146) |
$ |
(14) |
|||||||||||||
| Gain on sale of non-strategic asset |
36 |
— |
— |
— |
— |
36 |
— |
||||||||||||||||||||
| Legal expense |
— |
(11) |
— |
— |
— |
(11) |
— |
||||||||||||||||||||
| Restructuring, impairments and other charges |
— |
— |
— |
— |
— |
— |
(13) |
||||||||||||||||||||
| Tax adjustments |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||
| Total |
$ |
(74) |
$ |
(19) |
$ |
(14) |
$ |
(14) |
$ |
(14) |
$ |
(121) |
$ |
(27) |
|||||||||||||
| Unallocated Selected Items |
|||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Cash spent for capital expenditures |
$ |
(2) |
$ |
(5) |
$ |
(3) |
$ |
(1) |
$ |
(2) |
$ |
(11) |
$ |
(3) |
|||||||||||||
| *Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. |
|||||||||||||||||||||||||||
| Weyerhaeuser Company |
Discontinued Operations |
|||||||||||||||||||||||||||
| Q4.2016 Analyst Package |
||||||||||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||||||||||
| Discontinued operations consist of our three Cellulose Fibers businesses, which were previously disclosed as a separate reportable business segment. On August 31, 2016, we completed the sale of the liquid packaging board business. On November 1, 2016, we completed the sale of our interest in a printing papers joint venture. On December 1, 2016, we completed the sale of our pulp business. |
||||||||||||||||||||||||||||
| Discontinued Operations Statement of Operations |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Total net sales |
$ |
430 |
$ |
456 |
$ |
420 |
$ |
231 |
$ |
475 |
$ |
1,537 |
$ |
1,860 |
||||||||||||||
| Cost of products sold |
386 |
374 |
350 |
173 |
392 |
1,283 |
1,573 |
|||||||||||||||||||||
| Gross margin |
44 |
82 |
70 |
58 |
83 |
254 |
287 |
|||||||||||||||||||||
| Selling expenses |
4 |
3 |
3 |
2 |
4 |
12 |
14 |
|||||||||||||||||||||
| General and administrative expenses |
9 |
8 |
7 |
5 |
9 |
29 |
30 |
|||||||||||||||||||||
| Research and development expenses |
1 |
2 |
— |
2 |
1 |
5 |
6 |
|||||||||||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
6 |
25 |
13 |
19 |
1 |
63 |
2 |
|||||||||||||||||||||
| Other operating income, net |
(9) |
(10) |
(2) |
(6) |
(7) |
(27) |
(26) |
|||||||||||||||||||||
| Operating income |
33 |
54 |
49 |
36 |
75 |
172 |
261 |
|||||||||||||||||||||
| Equity loss from joint venture |
(2) |
(1) |
— |
(1) |
(87) |
(4) |
(105) |
|||||||||||||||||||||
| Interest expense, net of capitalized interest |
(2) |
(1) |
(2) |
— |
(1) |
(5) |
(6) |
|||||||||||||||||||||
| Earnings from discontinued operations before income taxes |
29 |
52 |
47 |
35 |
(13) |
163 |
150 |
|||||||||||||||||||||
| Income taxes |
(9) |
(14) |
(23) |
(51) |
(3) |
(97) |
(55) |
|||||||||||||||||||||
| Net earnings from operations |
20 |
38 |
24 |
(16) |
(16) |
66 |
95 |
|||||||||||||||||||||
| Net gain on divestitures |
— |
— |
41 |
505 |
— |
546 |
— |
|||||||||||||||||||||
| Net earnings from discontinued operations |
$ |
20 |
$ |
38 |
$ |
65 |
$ |
489 |
$ |
(16) |
$ |
612 |
$ |
95 |
||||||||||||||
| Discontinued Operations Selected Items |
||||||||||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||||||
| Depreciation, depletion and amortization |
$ |
38 |
$ |
15 |
$ |
— |
$ |
— |
$ |
38 |
$ |
53 |
$ |
154 |
||||||||||||||
| Cash spent for capital expenditures |
$ |
(22) |
$ |
(12) |
$ |
(29) |
$ |
(22) |
$ |
(33) |
$ |
(85) |
$ |
(118) |
||||||||||||||
| Segment Statistics |
||||||||||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q3.2016 |
Q4.2016 |
Q4.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||||||||
| Pulp (air-dry metric tons) |
Third party net sales (millions) |
$ |
351 |
$ |
350 |
$ |
349 |
$ |
231 |
$ |
388 |
$ |
1,281 |
$ |
1,499 |
|||||||||||||
| Third party sales realizations |
$ |
755 |
$ |
762 |
$ |
780 |
$ |
788 |
$ |
800 |
$ |
770 |
$ |
823 |
||||||||||||||
| Third party sales volumes (thousands) |
464 |
460 |
446 |
293 |
484 |
1,663 |
1,821 |
|||||||||||||||||||||
| Production volumes (thousands) |
457 |
454 |
426 |
311 |
481 |
1,648 |
1,822 |
|||||||||||||||||||||
| Liquid Packaging Board (metric tons) |
Third party net sales (millions) |
$ |
67 |
$ |
85 |
$ |
61 |
$ |
— |
$ |
73 |
$ |
213 |
$ |
305 |
|||||||||||||
| Third party sales realizations |
$ |
1,068 |
$ |
1,127 |
$ |
1,144 |
$ |
— |
$ |
1,203 |
$ |
1,112 |
$ |
1,196 |
||||||||||||||
| Third party sales volumes (thousands) |
63 |
76 |
53 |
— |
61 |
192 |
255 |
|||||||||||||||||||||
| Production volumes (thousands) |
64 |
65 |
48 |
— |
63 |
177 |
255 |
|||||||||||||||||||||
SOURCE Weyerhaeuser Company
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