StockSelector.com
  Research, Select, & Monitor Friday, September 22, 2017 11:13:04 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Weyerhaeuser Co.$33.57$.15.45%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Weyerhaeuser reports fourth quarter, full year results
   Friday, February 03, 2017 3:05:00 AM ET

Weyerhaeuser Company (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.

https://mma.prnewswire.com/media/321594/weyerhaeuser_company_logo.jpg

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
                                                                                 & ENR                 Products              Items
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
                                                                        & ENR        Products Items
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
                                                                        & ENR        Products Items
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
                                                                        & ENR        Products Items
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
                                                                        & ENR        Products  Items
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,    Jun 30,    Sep 30,    Dec 31,    Dec 31,    Dec 31,    Dec 31,
                                                                          2016       2016       2016       2016       2015       2016       2015
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,         Sep 30,         Dec 31,    Dec 31,    Dec 31,    Dec 31,
                                                    2016            2016            2016            2016       2015       2016       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          759,044         733,010         747,933         748,528    510,483    748,528    510,483
(in thousands)
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,   Jun 30,   Sep 30,   Dec 31,   Dec 31,   Dec 31,     Dec 31,
                                                         2016      2016      2016      2016      2015      2016        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,    Jun 30,    Sep 30,    Dec 31,    Dec 31,    Dec 31,     Dec 31,
                                                                                                              2016       2016       2016       2016       2015       2016        2015
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,    Jun 30,    Sep 30,    Dec 31,    Dec 31,    Dec 31,     Dec 31,
                                                                                                              2016       2016       2016       2016       2015       2016        2015
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,
                                                                               2016         2016         2016          2016          2015
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,    Jun 30,   Sep 30,  Dec 31,   Dec 31,    Dec 31,     Dec 31,
                                                           2016       2016      2016     2016      2015       2016        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,    Jun 30,    Sep 30,    Dec 31,    Dec 31,    Dec 31,    Dec 31,
                                                                                          2016       2016       2016       2016       2015       2016       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:
Net Sales
(millions)
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                         West                                 $     100.71       $     98.21       $     98.18       $     100.43       $     101.54       $     99.32       $     101.12
Third Party Sales
Realizations
(per ton)
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
Third Party Sales
Volumes
(tons, thousands)(3)
                                       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
(tons, thousands)(3)
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                           Real Estate                         $     30      $     26      $     31      $     85      $     25      $     172     $     75
(millions)
                                    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
(board feet)
                               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
Section
(cubic feet)
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
I-joists
(lineal feet)
                               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
Board
(square feet 3/8’)
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               Third party net sales          $     35          $     50          $     48          $     41          $     27          $     174         $     129
(square feet 3/8’)
                               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                                  Third party net sales (millions)      $             351               $             350               $             349               $             231               $             388                          $             1,281                        $             1,499
(air-dry metric tons)
                                      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                                Third party net sales (millions)      $             67                $             85                $             61                $             --                $             73                           $             213                          $             305
Packaging
Board
(metric tons)
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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weyerhaeuser-reports-fourth-quarter-full-year-results-300401836.html

SOURCE Weyerhaeuser Company

https://rt.prnewswire.com/rt.gif?NewsItemId=SF04008&Transmission_Id=201702030305PR_NEWS_USPR_____SF04008&DateId=20170203



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.