Weyerhaeuser Reports Second Quarter Results
-- Wood Products reports strongest second quarter earnings in over a decade
-- Announced sale of pulp and liquid packaging board facilities for approximately $2.5 billion; Cellulose Fibers reported as discontinued operations
-- Repurchased over $830 million of common shares
-- Includes full quarter of Plum Creek results
FEDERAL WAY, Wash., Aug. 5, 2016 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings to common shareholders of $157 million, or $0.21 per diluted share, on net sales from continuing operations of $1.7 billion. This compares with net earnings of $133 million, or $0.26 per diluted share, on net sales from continuing operations of $1.3 billion for the same period last year.
Second quarter results include after-tax earnings of $38 million from discontinued operations. Discontinued operations include the entirety of the company's Cellulose Fibers segment, which is comprised of pulp mills, a liquid packaging board facility, and a printing papers joint venture. Second quarter results also include net after-tax charges of $11 million from special items. Excluding these items, the company reported net earnings of $130 million, or $0.17 per diluted share for the second quarter. This compares with net earnings from continuing operations before special items of $114 million for the same period last year and $126 million for first quarter of 2016.
"Our businesses delivered solid second quarter operating results, with Wood Products capitalizing on improving markets and ongoing operational excellence initiatives to report its strongest quarter in over a decade," said Doyle R. Simons, president and CEO. "During the quarter we also announced the sale of our pulp and liquid packaging board facilities, repurchased over $830 million of common shares, and made strong progress on merger integration activities. Going forward, we remain relentlessly focused on successfully integrating Plum Creek, and fully capturing cost and operational synergies to drive superior value for our shareholders."
WEYERHAEUSER FINANCIAL HIGHLIGHTS
Weyerhaeuser merged with Plum Creek Timber Company, Inc. (Plum Creek) on February 19, 2016. Amounts presented below include the results of Plum Creek from the merger date of February 19, 2016, forward. The financial statements presented within this release do not include Plum Creek's financial results for any period prior to the merger date.
During the second quarter of 2016, Weyerhaeuser announced the sale of its Cellulose Fibers pulp mills and Liquid Packaging Board business. Results for the Cellulose Fibers segment are presented as discontinued operations. All periods presented have been revised to separate the results of discontinued operations from the results of our continuing operations.
| WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2016 |
2016 |
2015 |
|||
| (millions, except per share data) |
1Q |
2Q |
2Q |
|||
| Net sales |
$1,405 |
$1,655 |
$1,345 |
|||
| Net earnings attributable to Weyerhaeuser common shareholders |
$70 |
$157 |
$133 |
|||
| Weighted average shares outstanding, diluted(1) |
635 |
748 |
520 |
|||
| Earnings per diluted share |
$0.11 |
$0.21 |
$0.26 |
|||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(2) |
$126 |
$130 |
$114 |
|||
| Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$0.20 |
$0.17 |
$0.22 |
|||
| Adjusted EBITDA(3) |
$336 |
$413 |
$278 |
|||
| (1) In the first quarter of 2016, Weyerhaeuser issued approximately 279 million shares in conjunction with the Plum Creek merger transaction. Following the completion of the merger, Weyerhaeuser repurchased approximately 58 million common shares for $1.695 billion under the $2.5 billion repurchase program announced in conjunction with the merger transaction. At the end of the second quarter of 2016, the company had approximately 733 million common shares outstanding. |
||||||
| (2) After-tax special items for second quarter 2016 include $4 million of Plum Creek merger-related costs and $7 million of legal expense. Special items for first quarter 2016 include $98 million of Plum Creek merger-related costs and $22 million gain on the sale of the company's Federal Way headquarters campus. |
||||||
| (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) |
1Q 2016 |
2Q 2016 |
Change |
||
| Net sales |
$609 |
$664 |
$55 |
||
| Contribution to pre-tax earnings |
$129 |
$125 |
($4) |
||
| Adjusted EBITDA |
$199 |
$220 |
$21 |
2Q 2016 Performance - Timberlands earnings declined slightly compared with first quarter. Adjusted EBITDA, however, improved by 10 percent primarily due to higher fee harvest volumes. Non-cash depletion and amortization expense increased following a full quarter of higher depletion rates resulting from acquisition accounting.
Average realizations for Western and Southern logs declined modestly, primarily due to mix. In the West, domestic and China sales increased while Japan volumes decreased following an announced delay in a higher consumption tax. Southern silviculture expenses and Western logging costs increased seasonally.
3Q 2016 Outlook - Weyerhaeuser anticipates slightly lower earnings and Adjusted EBITDA from the Timberlands segment in the third quarter. In the West, the company expects comparable fee harvest volumes, seasonally higher per unit logging costs and slightly lower export prices. In the South, the company anticipates increased fee harvest volumes offset by seasonally higher silviculture expense.
REAL ESTATE, ENERGY AND NATURAL RESOURCES
| FINANCIAL HIGHLIGHTS (millions) |
1Q 2016 |
2Q 2016 |
Change |
||
| Net sales |
$39 |
$38 |
($1) |
||
| Contribution to pre-tax earnings |
$15 |
$12 |
($3) |
||
| Adjusted EBITDA |
$34 |
$28 |
($6) |
2Q 2016 Performance - Slightly lower Real Estate sales were partially offset by higher earnings from Energy and Natural Resources operations.
3Q 2016 Outlook - Weyerhaeuser expects significantly higher earnings and Adjusted EBITDA in the second half of 2016 with nearly all of the improvement coming from Real Estate sales in the fourth quarter.
WOOD PRODUCTS
| FINANCIAL HIGHLIGHTS (millions) |
1Q 2016 |
2Q 2016 |
Change |
||
| Net sales |
$1,001 |
$1,168 |
$167 |
||
| Contribution to pre-tax earnings |
$87 |
$156 |
$69 |
||
| Adjusted EBITDA |
$117 |
$189 |
$72 |
2Q 2016 Performance - Average lumber realizations increased 10 percent and average realizations for oriented strand board increased 12 percent compared with first quarter. Sales volumes increased seasonally, log costs declined, and manufacturing costs improved in several product lines as a result of operational excellence initiatives.
3Q 2016 Outlook - Weyerhaeuser expects significantly higher earnings and Adjusted EBITDA from the Wood Products segment in the third quarter. The company anticipates improved price realizations across most product lines.
DISCONTINUED OPERATIONS
Discontinued operations include the company's Cellulose Fibers segment, which consists of pulp mills, a liquid packaging board facility, and a printing papers joint venture. These results correspond to assets and liabilities that have been reclassified as discontinued operations on our balance sheet as of June 30, 2016.
| FINANCIAL HIGHLIGHTS (millions) |
1Q 2016 |
2Q 2016 |
Change |
||
| Total net sales |
$430 |
$456 |
$26 |
||
| Earnings from discontinued operations before income taxes |
$29 |
$52 |
$23 |
||
| Income taxes |
($9) |
($14) |
($5) |
||
| Net earnings from discontinued operations |
$20 |
$38 |
$18 |
2Q 2016 Performance - Average sales realizations for pulp and liquid packaging increased, liquid packaging sales volume improved, and maintenance and energy costs declined.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control more than 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 and cellulose fibers products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2015, Weyerhaeuser and Plum Creek, on a combined basis, generated approximately $8.5 billion in net sales and employed nearly 14,000 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 August 5 to discuss second quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on August 5.
To join the conference call from within North America, dial 877-296-9413 (access code: 3192733) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 3192733). Replays will be available for two weeks at 855-859-2056 (access code: 3192733) from within North America and at 404-537-3406 (access code: 3192733) 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. The factors listed below, as well as factors described from time to time in our filings with the Securities and Exchange Commission, and other factors not described herein or therein, 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 risks materialize or if any of our assumptions proves to be inaccurate, our expectations may not be realized, and there is no guarantee what, if any, effect such risks or inaccurate assumptions will have on our results of operations, cash flow or financial condition. Unless otherwise indicated, all forward-looking statements are as of the date they are made, and we undertake no obligation to update these forward-looking statements, whether as a result of new information, the occurrence of future events or otherwise.
Some of the forward-looking statements discuss the company's plans, strategies, expectations and intentions. They include words such as "expects," "may," "will," "anticipates," and "plans," and phrases such as "going forward," and other variations of these and similar words and phrases, any one or more of which may be used in a positive or negative context.
This release specifically contains forward-looking statements regarding the company's expectations during the third quarter and second half of 2016, including without limitation with respect to: earnings; Adjusted EBITDA; price realizations across Wood Products lines; timber harvest volumes, logging costs and silviculture expenses; log export prices; real estate sales; and, more generally, cost and operational synergies.
Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:
- the effect of general economic conditions, including employment rates, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;
- market demand for our 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 and capital requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign producers;
- 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;
- market demand for the company's products, including market demand for our timberland properties that have 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;
- the successful execution of our internal plans and strategic initiatives, including without limitation the realization of cost and operational synergies;
- the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;
- 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;
- changes in implementation of acquisition accounting; and
- other factors described under "Risk Factors" in our 2015 Annual Report on Form 10-K and in our Registration Statement on Form S-4/A filed on December 23, 2015.
The company also is a large exporter and is 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 (253) 924-2058 |
|
| Media - Kate Tate (206) 467-3676 |
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 quarter ended June 30, 2016:
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
168 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(38 |
||||||||||||||||||
| Interest expense, net of capitalized interest |
114 |
||||||||||||||||||
| Income taxes |
31 |
||||||||||||||||||
| Net contribution to earnings |
$ |
125 |
$ |
12 |
$ |
156 |
$ |
(18) |
$ |
275 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
— |
— |
(7) |
(7 |
||||||||||||||
| Interest income and other |
— |
— |
— |
(10) |
(10 |
||||||||||||||
| Operating income |
125 |
12 |
156 |
(35) |
258 |
||||||||||||||
| Depreciation, depletion and amortization |
95 |
3 |
33 |
2 |
133 |
||||||||||||||
| Basis of real estate sold |
— |
13 |
— |
— |
13 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(10) |
(10 |
||||||||||||||
| Special items(1) |
— |
— |
— |
19 |
19 |
||||||||||||||
| Adjusted EBITDA |
$ |
220 |
$ |
28 |
$ |
189 |
$ |
(24) |
$ |
413 |
|||||||||
| (1) |
Pre-tax special items include $8 million of Plum Creek merger-related costs and $11 million of legal expense. |
The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2016:
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
81 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(20) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
95 |
||||||||||||||||||
| Income taxes |
11 |
||||||||||||||||||
| Net contribution to earnings |
$ |
129 |
$ |
15 |
$ |
87 |
$ |
(64) |
$ |
167 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
— |
— |
(5) |
(5) |
||||||||||||||
| Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
| Operating income |
129 |
15 |
87 |
(78) |
153 |
||||||||||||||
| Depreciation, depletion and amortization |
70 |
2 |
30 |
2 |
104 |
||||||||||||||
| Basis of real estate sold |
— |
17 |
— |
— |
17 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(12) |
(12) |
||||||||||||||
| Special items(1) |
— |
— |
— |
74 |
74 |
||||||||||||||
| Adjusted EBITDA |
$ |
199 |
$ |
34 |
$ |
117 |
$ |
(14) |
$ |
336 |
|||||||||
| (1) |
Pre-tax special items include a $36 million gain on the sale of nonstrategic assets and $110 million of Plum Creek merger-related costs. |
The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2015:
| DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
||||||||||||||
| Adjusted EBITDA by Segment: |
|||||||||||||||||||
| Net earnings |
$ |
144 |
|||||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(19) |
||||||||||||||||||
| Interest expense, net of capitalized interest |
85 |
||||||||||||||||||
| Income taxes |
(1) |
||||||||||||||||||
| Net contribution to earnings |
$ |
117 |
$ |
10 |
$ |
71 |
$ |
11 |
$ |
209 |
|||||||||
| Equity (earnings) loss from joint ventures |
— |
— |
— |
— |
— |
||||||||||||||
| Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
| Operating income |
117 |
10 |
71 |
2 |
200 |
||||||||||||||
| Depreciation, depletion and amortization |
51 |
— |
27 |
2 |
80 |
||||||||||||||
| Basis of real estate sold |
— |
1 |
— |
— |
1 |
||||||||||||||
| Non-operating pension and postretirement credits |
— |
— |
— |
(3) |
(3) |
||||||||||||||
| Adjusted EBITDA |
$ |
168 |
$ |
11 |
$ |
98 |
$ |
1 |
$ |
278 |
|||||||||
| Weyerhaeuser Company |
Exhibit 99.2 |
||||||||||||||||||
| Q2.2016 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Consolidated Statement of Operations(1)(2) |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net sales |
$ |
1,405 |
$ |
1,655 |
$ |
1,345 |
$ |
3,060 |
$ |
2,625 |
|||||||||
| Cost of products sold |
1,089 |
1,258 |
1,057 |
2,347 |
2,050 |
||||||||||||||
| Gross margin |
316 |
397 |
288 |
713 |
575 |
||||||||||||||
| Selling expenses |
23 |
22 |
24 |
45 |
49 |
||||||||||||||
| General and administrative expenses |
76 |
94 |
63 |
170 |
129 |
||||||||||||||
| Research and development expenses |
5 |
4 |
5 |
9 |
8 |
||||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
111 |
14 |
— |
125 |
14 |
||||||||||||||
| Other operating costs (income), net |
(52) |
5 |
(4) |
(47) |
25 |
||||||||||||||
| Operating income from continuing operations |
153 |
258 |
200 |
411 |
350 |
||||||||||||||
| Equity earnings from joint ventures |
5 |
7 |
— |
12 |
— |
||||||||||||||
| Interest income and other |
9 |
10 |
9 |
19 |
18 |
||||||||||||||
| Interest expense, net of capitalized interest |
(95) |
(114) |
(85) |
(209) |
(167) |
||||||||||||||
| Earnings from continuing operations before income taxes |
72 |
161 |
124 |
233 |
201 |
||||||||||||||
| Income taxes |
(11) |
(31) |
1 |
(42) |
(8) |
||||||||||||||
| Earnings from continuing operations |
61 |
130 |
125 |
191 |
193 |
||||||||||||||
| Earnings from discontinued operations, net of income taxes |
20 |
38 |
19 |
58 |
52 |
||||||||||||||
| Net earnings |
81 |
168 |
144 |
249 |
245 |
||||||||||||||
| Dividends on preference shares |
(11) |
(11) |
(11) |
(22) |
(22) |
||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ |
70 |
$ |
157 |
$ |
133 |
$ |
227 |
$ |
223 |
|||||||||
| (1) Discontinued operations as presented herein consist of the operations of our Cellulose Fibers segment. The corresponding assets and liabilities have been 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 |
Year-to-date |
|||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted: |
|||||||||||||||||||
| Continuing operations |
$ |
0.08 |
$ |
0.16 |
$ |
0.22 |
$ |
0.25 |
$ |
0.33 |
|||||||||
| Discontinued operations |
0.03 |
0.05 |
0.04 |
0.08 |
0.10 |
||||||||||||||
| Net earnings per share |
$ |
0.11 |
$ |
0.21 |
$ |
0.26 |
$ |
0.33 |
$ |
0.43 |
|||||||||
| Dividends paid per common share |
$ |
0.31 |
$ |
0.31 |
$ |
0.29 |
$ |
0.62 |
$ |
0.58 |
|||||||||
| Weighted average shares outstanding (in thousands): |
|||||||||||||||||||
| Basic |
632,004 |
743,140 |
516,626 |
687,572 |
520,008 |
||||||||||||||
| Diluted |
634,872 |
747,701 |
519,804 |
691,060 |
523,595 |
||||||||||||||
| Common shares outstanding at end of period (in thousands) |
759,044 |
733,010 |
514,121 |
733,010 |
514,121 |
||||||||||||||
| Weyerhaeuser Company |
|||||||||||||||||||
| Q2.2016 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net earnings |
$ |
81 |
$ |
168 |
$ |
144 |
$ |
249 |
$ |
245 |
|||||||||
| Earnings from discontinued operations, net of income taxes |
(20) |
(38) |
(19) |
(58) |
(52) |
||||||||||||||
| Equity earnings from joint ventures |
(5) |
(7) |
— |
(12) |
— |
||||||||||||||
| Interest income and other |
(9) |
(10) |
(9) |
(19) |
(18) |
||||||||||||||
| Interest expense, net of capitalized interest |
95 |
114 |
85 |
209 |
167 |
||||||||||||||
| Income taxes |
11 |
31 |
(1) |
42 |
8 |
||||||||||||||
| Operating income from continuing operations |
153 |
258 |
200 |
411 |
350 |
||||||||||||||
| Depreciation, depletion and amortization |
104 |
133 |
80 |
237 |
164 |
||||||||||||||
| Basis of real estate sold |
17 |
13 |
1 |
30 |
11 |
||||||||||||||
| Non-operating pension and postretirement credits |
(12) |
(10) |
(3) |
(22) |
(6) |
||||||||||||||
| Special items |
74 |
19 |
— |
93 |
13 |
||||||||||||||
| Adjusted EBITDA* |
$ |
336 |
$ |
413 |
$ |
278 |
$ |
749 |
$ |
532 |
|||||||||
| *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 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders |
$ |
70 |
$ |
157 |
$ |
133 |
$ |
227 |
$ |
223 |
|||||||||
| Plum Creek merger- and integration-related costs |
98 |
4 |
— |
102 |
— |
||||||||||||||
| Gain on sale of non-strategic asset |
(22) |
— |
— |
(22) |
— |
||||||||||||||
| Legal expense |
— |
7 |
— |
7 |
— |
||||||||||||||
| Restructuring, impairments and other charges |
— |
— |
— |
— |
9 |
||||||||||||||
| Net earnings attributable to Weyerhaeuser common shareholders before special items |
146 |
168 |
133 |
314 |
232 |
||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(20) |
(38) |
(19) |
(58) |
(52) |
||||||||||||||
| Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
126 |
$ |
130 |
$ |
114 |
$ |
256 |
$ |
180 |
|||||||||
| per share |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders |
$ |
0.11 |
$ |
0.21 |
$ |
0.26 |
$ |
0.33 |
$ |
0.43 |
|||||||||
| Plum Creek merger- and integration-related costs |
0.15 |
— |
— |
0.14 |
— |
||||||||||||||
| Gain on sale of non-strategic asset |
(0.03) |
— |
— |
(0.03) |
— |
||||||||||||||
| Legal expense |
— |
0.01 |
— |
0.01 |
— |
||||||||||||||
| Restructuring, impairments and other charges |
— |
— |
— |
— |
0.01 |
||||||||||||||
| Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items |
0.23 |
0.22 |
0.26 |
0.45 |
0.44 |
||||||||||||||
| Earnings from discontinued operations, net of income taxes |
(0.03) |
(0.05) |
(0.04) |
(0.08) |
(0.10) |
||||||||||||||
| Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$ |
0.20 |
$ |
0.17 |
$ |
0.22 |
$ |
0.37 |
$ |
0.34 |
|||||||||
| Weyerhaeuser Company |
|||||||||||
| Q2.2016 Analyst Package |
|||||||||||
| Preliminary results (unaudited) |
|||||||||||
| Consolidated Balance Sheet |
|||||||||||
| in millions |
March 31, |
June 30, |
December 31, |
||||||||
| ASSETS |
|||||||||||
| Current assets: |
|||||||||||
| Cash and cash equivalents |
$ |
411 |
$ |
485 |
$ |
1,011 |
|||||
| Receivables, less allowances |
382 |
409 |
276 |
||||||||
| Receivables for taxes |
25 |
7 |
30 |
||||||||
| Inventories |
423 |
387 |
325 |
||||||||
| Prepaid expenses and other current assets |
123 |
132 |
63 |
||||||||
| Assets of discontinued operations |
1,929 |
1,908 |
1,934 |
||||||||
| Total current assets |
3,293 |
3,328 |
3,639 |
||||||||
| Property and equipment, net |
1,446 |
1,462 |
1,233 |
||||||||
| Construction in progress |
151 |
172 |
144 |
||||||||
| Timber and timberlands at cost, less depletion charged to disposals |
14,547 |
14,474 |
6,479 |
||||||||
| Minerals and mineral rights, net |
325 |
319 |
14 |
||||||||
| Investments in and advances to joint ventures |
938 |
905 |
— |
||||||||
| Goodwill |
40 |
40 |
40 |
||||||||
| Deferred tax assets |
291 |
250 |
254 |
||||||||
| Other assets |
409 |
424 |
302 |
||||||||
| Restricted financial investments held by variable interest entities |
615 |
615 |
615 |
||||||||
| Total assets |
$ |
22,055 |
$ |
21,989 |
$ |
12,720 |
|||||
| LIABILITIES AND EQUITY |
|||||||||||
| Current liabilities: |
|||||||||||
| Notes payable |
$ |
4 |
$ |
1 |
$ |
4 |
|||||
| Accounts payable |
284 |
300 |
204 |
||||||||
| Accrued liabilities |
483 |
590 |
427 |
||||||||
| Liabilities of discontinued operations |
674 |
666 |
690 |
||||||||
| Total current liabilities |
1,445 |
1,557 |
1,325 |
||||||||
| Note payable to timberland venture |
835 |
830 |
— |
||||||||
| Long-term debt |
7,715 |
8,013 |
4,787 |
||||||||
| Long-term debt (nonrecourse to the company) held by variable interest entities |
511 |
511 |
511 |
||||||||
| Deferred pension and other postretirement benefits |
983 |
926 |
987 |
||||||||
| Deposit received from contribution of timberlands to related party |
— |
437 |
— |
||||||||
| Other liabilities |
285 |
285 |
241 |
||||||||
| Total liabilities |
11,774 |
12,559 |
7,851 |
||||||||
| Total equity |
10,281 |
9,430 |
4,869 |
||||||||
| Total liabilities and equity |
$ |
22,055 |
$ |
21,989 |
$ |
12,720 |
|||||
| Weyerhaeuser Company |
|||||||||||||||||||
| Q2.2016 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Consolidated Statement of Cash Flows |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Cash flows from operations: |
|||||||||||||||||||
| Net earnings |
$ |
81 |
$ |
168 |
$ |
144 |
$ |
249 |
$ |
245 |
|||||||||
| Noncash charges (credits) to income: |
|||||||||||||||||||
| Depreciation, depletion and amortization |
142 |
147 |
118 |
289 |
241 |
||||||||||||||
| Basis of real estate sold |
17 |
13 |
1 |
30 |
11 |
||||||||||||||
| Deferred income taxes, net |
18 |
38 |
3 |
56 |
16 |
||||||||||||||
| Pension and other postretirement benefits |
4 |
1 |
11 |
5 |
21 |
||||||||||||||
| Other noncash charges (credits) |
(33) |
16 |
2 |
(17) |
42 |
||||||||||||||
| Change in: |
|||||||||||||||||||
| Receivables less allowances |
(47) |
(43) |
(10) |
(90) |
(26) |
||||||||||||||
| Receivable for taxes |
10 |
25 |
12 |
35 |
14 |
||||||||||||||
| Inventories |
(43) |
60 |
42 |
17 |
(15) |
||||||||||||||
| Prepaid expenses |
(1) |
— |
9 |
(1) |
(2) |
||||||||||||||
| Accounts payable and accrued liabilities |
(70) |
106 |
66 |
36 |
(25) |
||||||||||||||
| Pension and postretirement contributions |
(17) |
(12) |
(19) |
(29) |
(39) |
||||||||||||||
| Distributions received from joint ventures |
5 |
— |
— |
5 |
— |
||||||||||||||
| Other |
(19) |
(27) |
(12) |
(46) |
(29) |
||||||||||||||
| Net cash from operations |
47 |
492 |
367 |
539 |
454 |
||||||||||||||
| Cash flows from investing activities: |
|||||||||||||||||||
| Capital expenditures: |
|||||||||||||||||||
| Purchases of property and equipment |
(57) |
(83) |
(99) |
(140) |
(170) |
||||||||||||||
| Timberlands reforestation costs |
(16) |
(18) |
(9) |
(34) |
(27) |
||||||||||||||
| Acquisition of timberlands |
(6) |
(2) |
— |
(8) |
(32) |
||||||||||||||
| Proceeds from sale of assets |
70 |
13 |
4 |
83 |
6 |
||||||||||||||
| Proceeds from contribution of timberlands to related party |
— |
440 |
— |
440 |
— |
||||||||||||||
| Distributions received from joint ventures |
24 |
3 |
— |
27 |
— |
||||||||||||||
| Cash and cash equivalents acquired in the merger with Plum Creek |
9 |
— |
— |
9 |
— |
||||||||||||||
| Other |
— |
(3) |
12 |
(3) |
12 |
||||||||||||||
| Cash from (used in) investing activities |
24 |
350 |
(92) |
374 |
(211) |
||||||||||||||
| Cash flows from financing activities: |
|||||||||||||||||||
| Cash dividends on common shares |
(241) |
(228) |
(149) |
(469) |
(301) |
||||||||||||||
| Cash dividends on preference shares |
— |
(11) |
(11) |
(11) |
(11) |
||||||||||||||
| Proceeds from issuance of long-term debt |
1,098 |
300 |
— |
1,398 |
— |
||||||||||||||
| Payments of long-term debt |
(720) |
(3) |
— |
(723) |
— |
||||||||||||||
| Repurchase of common stock |
(798) |
(831) |
(154) |
(1,629) |
(407) |
||||||||||||||
| Other |
(7) |
8 |
2 |
1 |
17 |
||||||||||||||
| Cash from financing activities |
(668) |
(765) |
(312) |
(1,433) |
(702) |
||||||||||||||
| Net change in cash and cash equivalents |
(597) |
77 |
(37) |
(520) |
(459) |
||||||||||||||
| Cash and cash equivalents from continuing operations at beginning of period |
1,011 |
411 |
1,151 |
1,011 |
1,577 |
||||||||||||||
| Cash and cash equivalents from discontinued operations at beginning of period |
1 |
4 |
7 |
1 |
3 |
||||||||||||||
| Cash and cash equivalents at beginning of period |
1,012 |
415 |
1,158 |
1,012 |
1,580 |
||||||||||||||
| Cash and cash equivalents from continuing operations at end of period |
411 |
485 |
1,117 |
485 |
1,117 |
||||||||||||||
| Cash and cash equivalents from discontinued operations at end of period |
4 |
7 |
4 |
7 |
4 |
||||||||||||||
| Cash and cash equivalents at end of period |
$ |
415 |
$ |
492 |
$ |
1,121 |
$ |
492 |
$ |
1,121 |
|||||||||
| Cash paid (received) during the year for: |
|||||||||||||||||||
| Interest, net of amount capitalized |
$ |
133 |
$ |
92 |
$ |
58 |
$ |
225 |
$ |
172 |
|||||||||
| Income taxes |
$ |
(13) |
$ |
(12) |
$ |
4 |
$ |
(25) |
$ |
5 |
|||||||||
| Noncash investing and financing activities: |
|||||||||||||||||||
| Equity issued as consideration for our merger with Plum Creek |
$ |
6,383 |
$ |
— |
$ |
— |
$ |
6,383 |
$ |
— |
|||||||||
| Weyerhaeuser Company |
Total Company Statistics |
||||||||||||||||||
| Q2.2016 Analyst Package |
|||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||
| Selected Total Company Items |
|||||||||||||||||||
| in millions |
Q1 |
Q2 |
Year-to-date |
||||||||||||||||
| March 31, |
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
| Pension and postretirement costs: |
|||||||||||||||||||
| Pension and postretirement costs allocated to business segments |
$ |
7 |
$ |
8 |
$ |
9 |
$ |
15 |
$ |
19 |
|||||||||
| Pension and postretirement credits not allocated |
(12) |
(10) |
(3) |
(22) |
(6) |
||||||||||||||
| Accelerated pension costs included in Plum Creek merger-related costs (not allocated) |
5 |
— |
— |
5 |
— |
||||||||||||||
| Total pension and postretirement costs for continuing operations |
— |
(2) |
6 |
(2) |
13 |
||||||||||||||
| Pension and postretirement service costs directly attributable to discontinued operations |
4 |
3 |
5 |
7 |
8 |
||||||||||||||
| Total company pension and postretirement costs |
$ |
4 |
$ |
1 |
$ |
11 |
$ |
5 |
$ |
21 |
|||||||||
| Cash spent for capital expenditures for continuing operations |
$ |
(51) |
$ |
(89) |
$ |
(77) |
$ |
(140) |
$ |
(139) |
|||||||||
| Weyerhaeuser Company |
Timberlands Segment |
|||||||||||||||||||
| Q2.2016 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Sales to unaffiliated customers |
$ |
387 |
$ |
471 |
$ |
328 |
$ |
858 |
$ |
651 |
||||||||||
| Intersegment sales |
222 |
193 |
187 |
415 |
415 |
|||||||||||||||
| Total net sales |
609 |
664 |
515 |
1,273 |
1,066 |
|||||||||||||||
| Cost of products sold |
459 |
509 |
383 |
968 |
778 |
|||||||||||||||
| Gross margin |
150 |
155 |
132 |
305 |
288 |
|||||||||||||||
| Selling expenses |
1 |
2 |
1 |
3 |
3 |
|||||||||||||||
| General and administrative expenses |
28 |
32 |
19 |
60 |
40 |
|||||||||||||||
| Research and development expenses |
4 |
4 |
4 |
8 |
7 |
|||||||||||||||
| Other operating income, net |
(12) |
(8) |
(9) |
(20) |
(18) |
|||||||||||||||
| Operating income and Net contribution to earnings |
$ |
129 |
$ |
125 |
$ |
117 |
$ |
254 |
$ |
256 |
||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Operating income |
$ |
129 |
$ |
125 |
$ |
117 |
$ |
254 |
$ |
256 |
||||||||||
| Depreciation, depletion and amortization |
70 |
95 |
51 |
165 |
104 |
|||||||||||||||
| Adjusted EBITDA* |
$ |
199 |
$ |
220 |
$ |
168 |
$ |
419 |
$ |
360 |
||||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
| Selected Segment Items |
||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||
| Total decrease (increase) in working capital (1) |
$ |
(53) |
$ |
28 |
$ |
52 |
$ |
(25) |
$ |
26 |
||||||||||
| Cash spent for capital expenditures |
$ |
(20) |
$ |
(31) |
$ |
(17) |
$ |
(51) |
$ |
(41) |
||||||||||
| (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 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||
| Third Party |
Delivered logs: |
||||||||||||||||||||
| West |
$ |
215 |
$ |
232 |
$ |
221 |
$ |
447 |
$ |
431 |
|||||||||||
| South |
101 |
154 |
58 |
255 |
116 |
||||||||||||||||
| North |
13 |
19 |
— |
32 |
— |
||||||||||||||||
| Other |
7 |
7 |
3 |
14 |
11 |
||||||||||||||||
| Total delivered logs |
336 |
412 |
282 |
748 |
558 |
||||||||||||||||
| Stumpage and pay-as-cut timber |
15 |
23 |
10 |
38 |
14 |
||||||||||||||||
| Products from international operations |
16 |
21 |
25 |
37 |
49 |
||||||||||||||||
| Recreational and other lease revenue |
6 |
8 |
5 |
14 |
11 |
||||||||||||||||
| Other revenue |
14 |
7 |
6 |
21 |
19 |
||||||||||||||||
| Total |
$ |
387 |
$ |
471 |
$ |
328 |
$ |
858 |
$ |
651 |
|||||||||||
| Delivered Logs Third Party Sales Realizations (per ton) |
West |
$ |
100.71 |
$ |
98.21 |
$ |
100.00 |
$ |
99.39 |
$ |
102.08 |
||||||||||
| South |
$ |
36.39 |
$ |
35.54 |
$ |
36.98 |
$ |
35.87 |
$ |
37.02 |
|||||||||||
| North |
$ |
59.31 |
$ |
65.43 |
$ |
— |
$ |
62.95 |
$ |
— |
|||||||||||
| International |
$ |
15.73 |
$ |
23.29 |
$ |
20.53 |
$ |
18.59 |
$ |
19.17 |
|||||||||||
| Delivered Logs Third Party Sales Volumes (tons, thousands)(3) |
West |
2,133 |
2,363 |
2,207 |
4,496 |
4,215 |
|||||||||||||||
| South |
2,781 |
4,340 |
1,582 |
7,121 |
3,137 |
||||||||||||||||
| North |
210 |
292 |
— |
502 |
— |
||||||||||||||||
| International |
146 |
89 |
197 |
235 |
362 |
||||||||||||||||
| Other |
169 |
169 |
61 |
338 |
257 |
||||||||||||||||
| Fee Harvest Volumes (tons, thousands)(3) |
West |
2,801 |
2,980 |
2,662 |
5,781 |
5,419 |
|||||||||||||||
| South |
5,030 |
7,061 |
3,559 |
12,091 |
6,900 |
||||||||||||||||
| North |
260 |
454 |
— |
714 |
— |
||||||||||||||||
| International |
299 |
248 |
242 |
547 |
505 |
||||||||||||||||
| Other |
— |
181 |
— |
181 |
— |
||||||||||||||||
| (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 annualized 2015 conversion factors as follows: West: 1.056 m3 = 1 ton |
| Weyerhaeuser Company |
Real Estate, Energy and |
||||||||||||||||||||
| Q2.2016 Analyst Package |
|||||||||||||||||||||
| Preliminary results (unaudited) |
|||||||||||||||||||||
| Segment Statement of Operations |
|||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||
| Total net sales |
$ |
39 |
$ |
38 |
$ |
13 |
$ |
77 |
$ |
47 |
|||||||||||
| Cost of products sold |
20 |
19 |
2 |
39 |
12 |
||||||||||||||||
| Gross margin |
19 |
19 |
11 |
38 |
35 |
||||||||||||||||
| Selling expenses |
— |
— |
— |
— |
— |
||||||||||||||||
| General and administrative expenses |
4 |
8 |
2 |
12 |
3 |
||||||||||||||||
| Charges for integration, restructuring, closures and asset impairments |
— |
1 |
— |
1 |
— |
||||||||||||||||
| Other operating income, net |
— |
(2) |
(1) |
(2) |
(1 |
||||||||||||||||
| Operating income |
15 |
12 |
10 |
27 |
33 |
||||||||||||||||
| Equity earnings (loss) from joint ventures(1) |
— |
— |
— |
— |
— |
||||||||||||||||
| Net contribution to earnings |
$ |
15 |
$ |
12 |
$ |
10 |
$ |
27 |
$ |
33 |
|||||||||||
| (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 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||
| Operating income |
$ |
15 |
$ |
12 |
$ |
10 |
$ |
27 |
$ |
33 |
|||||||||||
| Depreciation, depletion and amortization |
2 |
3 |
— |
5 |
— |
||||||||||||||||
| Basis of real estate sold |
17 |
13 |
1 |
30 |
11 |
||||||||||||||||
| Adjusted EBITDA* |
$ |
34 |
$ |
28 |
$ |
11 |
$ |
62 |
$ |
44 |
|||||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
|||||||||||||||||||||
| Selected Segment Items |
|||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||
| Cash spent for capital expenditures |
$ |
— |
$ |
(1) |
$ |
— |
$ |
(1) |
$ |
— |
|||||||||||
| Segment Statistics |
|||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||
| Net Sales |
Real Estate |
$ |
30 |
$ |
26 |
$ |
8 |
$ |
56 |
$ |
35 |
||||||||||
| Energy and natural resources |
9 |
12 |
5 |
21 |
12 |
||||||||||||||||
| Total |
$ |
39 |
$ |
38 |
$ |
13 |
$ |
77 |
$ |
47 |
|||||||||||
| Acres sold |
Real Estate |
15,225 |
10,020 |
1,220 |
25,245 |
15,595 |
|||||||||||||||
| Price per acre |
Real Estate |
$ |
1,980 |
$ |
2,555 |
$ |
4,490 |
$ |
2,210 |
$ |
2,025 |
||||||||||
| Weyerhaeuser Company |
Wood Products Segment |
|||||||||||||||||||
| Q2.2016 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Segment Statement of Operations |
||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Sales to unaffiliated customers |
$ |
979 |
$ |
1,146 |
$ |
1,004 |
$ |
2,125 |
$ |
1,927 |
||||||||||
| Intersegment sales |
22 |
22 |
22 |
44 |
41 |
|||||||||||||||
| Total net sales |
1,001 |
1,168 |
1,026 |
2,169 |
1,968 |
|||||||||||||||
| Cost of products sold |
862 |
957 |
903 |
1,819 |
1,732 |
|||||||||||||||
| Gross margin |
139 |
211 |
123 |
350 |
236 |
|||||||||||||||
| Selling expenses |
22 |
20 |
23 |
42 |
46 |
|||||||||||||||
| General and administrative expenses |
27 |
30 |
26 |
57 |
53 |
|||||||||||||||
| Research and development expenses |
1 |
— |
1 |
1 |
1 |
|||||||||||||||
| Restructuring, closures and impairment |
1 |
4 |
— |
5 |
— |
|||||||||||||||
| Other operating costs, net |
1 |
1 |
2 |
2 |
3 |
|||||||||||||||
| Operating income and Net contribution to earnings |
$ |
87 |
$ |
156 |
$ |
71 |
$ |
243 |
$ |
133 |
||||||||||
| Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* |
||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Operating income |
$ |
87 |
$ |
156 |
$ |
71 |
$ |
243 |
$ |
133 |
||||||||||
| Depreciation, depletion and amortization |
30 |
33 |
27 |
63 |
53 |
|||||||||||||||
| Adjusted EBITDA* |
$ |
117 |
$ |
189 |
$ |
98 |
$ |
306 |
$ |
186 |
||||||||||
| *See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. |
||||||||||||||||||||
| Selected Segment Items |
||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||
| Total decrease (increase) in working capital (1) |
$ |
(132) |
$ |
35 |
$ |
42 |
$ |
(97) |
$ |
(57) |
||||||||||
| Cash spent for capital expenditures |
$ |
(29) |
$ |
(52) |
$ |
(60) |
$ |
(81) |
$ |
(97) |
||||||||||
| (1) Working capital does not include cash balances. |
||||||||||||||||||||
| Segment Statistics |
|||||||||||||||||||||
| in millions, except for third-party sales realizations |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||||
| Structural Lumber |
Third party net sales |
$ |
419 |
$ |
498 |
$ |
450 |
$ |
917 |
$ |
884 |
||||||||||
| Third party sales realizations |
$ |
364 |
$ |
399 |
$ |
383 |
$ |
382 |
$ |
393 |
|||||||||||
| Third party sales volumes (2) |
1,152 |
1,249 |
1,175 |
2,401 |
2,250 |
||||||||||||||||
| Production volumes |
1,129 |
1,205 |
1,087 |
2,334 |
2,130 |
||||||||||||||||
| Engineered Solid |
Third party net sales |
$ |
109 |
$ |
115 |
$ |
113 |
$ |
224 |
$ |
207 |
||||||||||
| Third party sales realizations |
$ |
1,971 |
$ |
1,922 |
$ |
2,032 |
$ |
1,946 |
$ |
2,001 |
|||||||||||
| Third party sales volumes (2) |
5.5 |
6.0 |
5.6 |
11.5 |
10.4 |
||||||||||||||||
| Production volumes |
5.6 |
5.9 |
5.6 |
11.5 |
10.6 |
||||||||||||||||
| Engineered |
Third party net sales |
$ |
66 |
$ |
73 |
$ |
76 |
$ |
139 |
$ |
137 |
||||||||||
| Third party sales realizations |
$ |
1,507 |
$ |
1,471 |
$ |
1,502 |
$ |
1,488 |
$ |
1,506 |
|||||||||||
| Third party sales volumes (2) |
44 |
50 |
50 |
94 |
91 |
||||||||||||||||
| Production volumes |
46 |
46 |
48 |
92 |
91 |
||||||||||||||||
| Oriented Strand |
Third party net sales |
$ |
163 |
$ |
182 |
$ |
147 |
$ |
345 |
$ |
284 |
||||||||||
| Third party sales realizations |
$ |
214 |
$ |
240 |
$ |
191 |
$ |
227 |
$ |
193 |
|||||||||||
| Third party sales volumes (2) |
759 |
761 |
771 |
1,520 |
1,471 |
||||||||||||||||
| Production volumes |
749 |
733 |
700 |
1,482 |
1,404 |
||||||||||||||||
| Softwood Plywood (square feet 3/8') |
Third party net sales |
$ |
35 |
$ |
50 |
$ |
36 |
$ |
85 |
$ |
69 |
||||||||||
| Third party sales realizations |
$ |
317 |
$ |
382 |
$ |
354 |
$ |
352 |
$ |
360 |
|||||||||||
| Third party sales volumes (2) |
110 |
131 |
101 |
241 |
190 |
||||||||||||||||
| Production volumes |
88 |
111 |
63 |
199 |
124 |
||||||||||||||||
| (2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
|||||||||||||||||||||
| Weyerhaeuser Company |
Unallocated Items |
||||||||||||||||||
| Q2.2016 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 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||
| Unallocated corporate function expenses |
$ |
(17) |
$ |
(24) |
$ |
(16) |
$ |
(41) |
$ |
(34) |
|||||||||
| Unallocated share-based compensation |
(2) |
1 |
1 |
(1) |
4 |
||||||||||||||
| Unallocated pension & postretirement credits |
12 |
10 |
3 |
22 |
6 |
||||||||||||||
| Foreign exchange gains (losses) |
13 |
1 |
9 |
14 |
(20) |
||||||||||||||
| Elimination of intersegment profit in inventory and LIFO |
(6) |
(2) |
18 |
(8) |
4 |
||||||||||||||
| Gain on sale of non-strategic asset |
36 |
8 |
— |
44 |
— |
||||||||||||||
| Charges for integration and restructuring, closures and asset impairments: |
|||||||||||||||||||
| Plum Creek merger- and integration-related costs |
(110) |
(8) |
— |
(118) |
— |
||||||||||||||
| Other restructuring, closures and asset impairments |
— |
(1) |
— |
(1) |
(14) |
||||||||||||||
| Other |
(4) |
(20) |
(13) |
(24) |
(18) |
||||||||||||||
| Operating income (loss) |
(78) |
(35) |
2 |
(113) |
(72) |
||||||||||||||
| Equity earnings from joint venture (1) |
5 |
7 |
— |
12 |
— |
||||||||||||||
| Interest income and other |
9 |
10 |
9 |
19 |
18 |
||||||||||||||
| Net contribution to earnings |
$ |
(64) |
$ |
(18) |
$ |
11 |
$ |
(82) |
$ |
(54) |
|||||||||
| (1) Equity earnings 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 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
||||||||||||||
| Operating income (loss) |
$ |
(78) |
$ |
(35) |
$ |
2 |
$ |
(113) |
$ |
(72) |
|||||||||
| Depreciation, depletion and amortization |
2 |
2 |
2 |
4 |
7 |
||||||||||||||
| Non-operating pension and postretirement credits |
(12) |
(10) |
(3) |
(22) |
(6) |
||||||||||||||
| Special items |
74 |
19 |
— |
93 |
13 |
||||||||||||||
| Adjusted EBITDA* |
$ |
(14) |
$ |
(24) |
$ |
1 |
$ |
(38) |
$ |
(58) |
|||||||||
| *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 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Plum Creek merger- and integration-related costs |
(110) |
(8) |
— |
(118) |
— |
||||||||||||||
| Gain on sale of non-strategic asset |
36 |
— |
— |
36 |
— |
||||||||||||||
| Legal expense |
— |
(11) |
— |
(11) |
— |
||||||||||||||
| Restructuring, impairments and other charges |
— |
— |
— |
— |
(13) |
||||||||||||||
| Total |
$ |
(74) |
$ |
(19) |
$ |
— |
$ |
(93) |
$ |
(13) |
|||||||||
| Unallocated Selected Items |
|||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Cash spent for capital expenditures |
$ |
(2) |
$ |
(5) |
$ |
— |
$ |
(7) |
$ |
(1) |
|||||||||
| Weyerhaeuser Company |
Discontinued Operations |
|||||||||||||||||||
| Q2.2016 Analyst Package |
||||||||||||||||||||
| Preliminary results (unaudited) |
||||||||||||||||||||
| Discontinued operations consist of our Cellulose Fibers businesses, which were previously disclosed as a separate reportable business segment. |
||||||||||||||||||||
| Discontinued Operations Statement of Operations |
||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Total net sales |
$ |
430 |
$ |
456 |
$ |
467 |
$ |
886 |
$ |
914 |
||||||||||
| Costs of products sold |
386 |
374 |
417 |
760 |
809 |
|||||||||||||||
| Gross margin |
44 |
82 |
50 |
126 |
105 |
|||||||||||||||
| Selling expenses |
4 |
3 |
4 |
7 |
7 |
|||||||||||||||
| General and administrative expenses |
9 |
8 |
8 |
17 |
16 |
|||||||||||||||
| Research and development expenses |
1 |
2 |
1 |
3 |
3 |
|||||||||||||||
| Charges for integration and restructuring, closures and asset impairments |
6 |
25 |
— |
31 |
— |
|||||||||||||||
| Other operating income, net |
(9) |
(10) |
(6) |
(19) |
(14 |
|||||||||||||||
| Operating income |
33 |
54 |
43 |
87 |
93 |
|||||||||||||||
| Equity loss from joint venture |
(2) |
(1) |
(7) |
(3) |
(13 |
|||||||||||||||
| Interest expense, net of capitalized interest |
(2) |
(1) |
(3) |
(3) |
(4 |
|||||||||||||||
| Earnings from discontinued operations before income taxes |
29 |
52 |
33 |
81 |
76 |
|||||||||||||||
| Income taxes |
(9) |
(14) |
(14) |
(23) |
(24 |
|||||||||||||||
| Net earnings from discontinued operations |
$ |
20 |
$ |
38 |
$ |
19 |
$ |
58 |
$ |
52 |
||||||||||
| Discontinued Operations Selected Items |
||||||||||||||||||||
| in millions |
Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||
| Depreciation, depletion and amortization |
$ |
38 |
$ |
15 |
$ |
38 |
$ |
53 |
$ |
77 |
||||||||||
| Cash spent for capital expenditures |
$ |
(22) |
$ |
(12) |
$ |
(31) |
$ |
(34) |
$ |
(58 |
||||||||||
| Discontinued Operations Statistics |
|||||||||||||||||||||
| Q1.2016 |
Q2.2016 |
Q2.2015 |
YTD.2016 |
YTD.2015 |
|||||||||||||||||
| Pulp (air-dry metric tons) |
Third party net sales (millions) |
$ |
351 |
$ |
350 |
$ |
368 |
$ |
701 |
$ |
728 |
||||||||||
| Third party sales realizations |
$ |
755 |
$ |
762 |
$ |
823 |
$ |
758 |
$ |
838 |
|||||||||||
| Third party sales volumes (thousands) |
464 |
460 |
448 |
924 |
869 |
||||||||||||||||
| Production volumes (thousands) |
457 |
454 |
422 |
911 |
864 |
||||||||||||||||
| Liquid Packaging Board |
Third party net sales (millions) |
$ |
67 |
$ |
85 |
$ |
84 |
$ |
152 |
$ |
158 |
||||||||||
| Third party sales realizations |
$ |
1,068 |
$ |
1,127 |
$ |
1,218 |
$ |
1,100 |
$ |
1,206 |
|||||||||||
| Third party sales volumes (thousands) |
63 |
76 |
69 |
139 |
131 |
||||||||||||||||
| Production volumes (thousands) |
64 |
65 |
64 |
129 |
124 |
||||||||||||||||
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SOURCE Weyerhaeuser Company
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