StockSelector.com
  Research, Select, & Monitor Thursday, August 17, 2017 1:17:29 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Weyerhaeuser Co.$31.42($.49)(1.54%)

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

Your Target?

 Weyerhaeuser reports second quarter results
   Friday, July 28, 2017 3:05:00 AM ET

Weyerhaeuser Company (WY ) today reported second quarter earnings from continuing operations of $24 million, or 3 cents per diluted share, on net sales of $1.8 billion. This compares with earnings from continuing operations of $130 million, or 16 cents per diluted share, on net sales of $1.7 billion for the same period last year. Adjusted EBITDA for the second quarter was $506 million compared to $413 million for the second quarter of last year.

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

Excluding after-tax special items of $188 million, which includes $147 million non-cash impairment for our Uruguay operations and $31 million for product remediation, the company reported net earnings of $212 million, or 28 cents per diluted share for the second quarter. This compares with net earnings from continuing operations before special items of $130 million for the same period last year and $167 million for first quarter of 2017.

"Each of our businesses delivered strong second quarter operating results, leveraging ongoing operational excellence initiatives to capitalize on improving markets," said Doyle R. Simons, president and CEO. "In the quarter, we also announced the pending sale of our Uruguay operations and completed the asset value optimization process for our Western timberlands. Looking forward, we are extremely well positioned to continue to capitalize on the improving housing market, and remain relentlessly focused on driving value for our shareholders through operational improvements and disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

During 2016, Weyerhaeuser sold its Cellulose Fibers businesses. Results for the Cellulose Fibers segment are presented as discontinued operations.

WEYERHAEUSER FINANCIAL HIGHLIGHTS                                                                                               2017    2017    2016
(millions, except per share data)                                                                                               1Q      2Q      2Q
Net sales                                                                                                                       $1,693  $1,808  $1,655
Earnings from continuing operations                                                                                             $157    $24     $130
Net earnings attributable to Weyerhaeuser common shareholders                                                                   $157    $24     $157
Earnings per diluted share from continuing operations                                                                           $0.21   $0.03   $0.16
Net earnings per diluted share                                                                                                  $0.21   $0.03   $0.21
Weighted average shares outstanding, diluted                                                                                    755     756     748
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(1)                $167    $212    $130
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items $0.22   $0.28   $0.17
Adjusted EBITDA(2)                                                                                                              $454    $506    $413
(1) First quarter 2017 after-tax special items include charges of $10 million for Plum Creek merger-related costs. Second quarter 2017 after-tax special items include a $147 million non-cash impairment charge for the Uruguay business, $31 million for product remediation and $8 million for countervailing and antidumping duties on Canadian softwood lumber the company sold into the United States and $2 million for Plum Creek merger-related costs. Second quarter 2016 after-tax special items include $4 million of Plum Creek merger related costs and $7 million of legal expense.
(2) 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 of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. A reconciliation of Adjusted EBITDA to GAAP earnings is included within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)                       1Q 2017  2Q 2017  Change
Net sales                                             $688     $632     ($56)
Contribution to pre-tax earnings                      $148     ($12)    ($160)
Pre-tax charge for special items                      $0       $147     $147
Contribution to pre-tax earnings before special items $148     $135     ($13)
Adjusted EBITDA                                       $242     $222     ($20)

2Q 2017 Performance - In the West, modestly higher average sales realizations for domestic and export logs were more than offset by seasonally higher road spending and forestry costs. In the South, average log sales realizations and volumes were comparable to first quarter. Second quarter results include a $147 million noncash impairment charge related to the pending sale of our Uruguay operations.

3Q 2017 Outlook - Weyerhaeuser expects third quarter earnings before special items and Adjusted EBITDA will be slightly lower than second quarter. In the West, the company anticipates slightly higher log sales realizations, lower fee harvest volumes, and increased road spending compared to the second quarter. In the South, the company anticipates seasonally higher fee harvest volumes, comparable log sales realizations and increased forestry and silviculture expense.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS (millions)  1Q 2017  2Q 2017  Change
Net sales                        $53      $46      ($7)
Contribution to pre-tax earnings $26      $23      ($3)
Adjusted EBITDA                  $43      $37      ($6)

2Q 2017 Performance - Earnings and Adjusted EBITDA decreased as a result of lower Real Estate sales compared to the first quarter. Energy & Natural Resources royalties increased from first quarter levels.

3Q 2017 Outlook - Weyerhaeuser expects earnings and Adjusted EBITDA will be significantly higher than the second quarter. The company anticipates Real Estate sales in the third quarter will be about double second quarter levels. We continue to expect Adjusted EBITDA for the Real Estate, Energy & Natural Resources segment will exceed $250 million for full year 2017.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)                       1Q 2017  2Q 2017  Change
Net sales                                             $1,154   $1,293   $139
Contribution to pre-tax earnings                      $172     $177     $5
Pre-tax charge for special items                      $0       $61      $61
Contribution to pre-tax earnings before special items $172     $238     $66
Adjusted EBITDA                                       $207     $274     $67

2Q 2017 Performance - Average sales realizations increased across all product lines in the second quarter. Sales volumes were higher for lumber and engineered wood products while oriented strand board sales volumes were comparable to the first quarter. Second quarter results include pre-tax special items of $61 million, which are comprised of a $50 million charge for product remediation and $11 million of softwood lumber countervailing and antidumping duties.

3Q 2017 Outlook - Weyerhaeuser anticipates third quarter earnings before special items and Adjusted EBITDA will be comparable to the second quarter. The company expects average sales realizations and sales volumes for lumber will be comparable to the second quarter. For oriented strand board, the company anticipates slightly higher average sales realizations and modestly lower sales volumes.

ABOUT WEYERHAEUSER Weyerhaeuser Company, one of the world’s largest private owners of timberlands, began operations in 1900. We own or control more than 13 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood 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 July 28, 2017, to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on https://www.weyerhaeuser.com on July 28, 2017.

To join the conference call from within North America, dial 877-296-9413 (access code: 43729080) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 43729080). Replays will be available for two weeks at 855-859-2056 (access code: 43729080) from within North America and at 404-537-3406 (access code: 43729080) 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, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including with respect to the following for the third quarter of 2017: earnings and Adjusted EBITDA for each of our business segments; log sale realizations and fee harvest volumes; sales volumes across Wood Products product lines, expected sales realizations and volumes for lumber and oriented strand board; and various logging, forestry and silviculture costs; and real estate sales volumes. These statements generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and expressions such as "will be," "will continue," "will likely result," and similar words and expressions. These statements are based on our current expectations and assumptions and are not guarantees of future performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

-- the effect of general economic conditions, including employment rates, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;

-- market demand for our products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;

-- changes in currency exchange rates and restrictions on international trade;

-- performance of our manufacturing operations, including maintenance requirements;

-- potential disruptions in our manufacturing operations;

-- the level of competition from domestic and foreign producers;

-- raw material availability and prices;

-- the effect of weather;

-- the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;

-- energy prices;

-- the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;

-- the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;

-- transportation and labor availability and costs;

-- federal tax policies;

-- the effect of forestry, land use, environmental and other governmental regulations;

-- legal proceedings;

-- performance of pension fund investments and related derivatives;

-- the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;

-- changes in accounting principles; and

-- other factors described under "Risk Factors" in our 2016 Annual Report on Form 10-K as well as those set forth from time to time in our other public statements and other reports and filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

For more information contact:  Analysts - 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 quarter ended March 31, 2017:
DOLLAR AMOUNTS IN MILLIONS                                             Timberlands                 Real Estate       Wood                        Unallocated                 Total
                                                                                                   & ENR             Products                    Items
Adjusted EBITDA by Segment:
Net earnings                                                                                                                                                                 $            157
Earnings from discontinued operations, net of income taxes                                                                                                                   --
Interest expense, net of capitalized interest                                                                                                                                99
Income taxes                                                                                                                                                                 24
Net contribution to earnings                                           $            148            $            26   $            172            $            (66)           $            280
Equity (earnings) loss from joint ventures                             --                          --                --                          --                          --
Non-operating pension and other postretirement benefit (costs) credits --                          --                --                          22                          22
Interest income and other                                              --                          --                --                          (9)                         (9)
Operating income (loss)                                                148                         26                172                         (53)                        293
Depreciation, depletion and amortization                               94                          3                 35                          1                           133
Basis of real estate sold                                              --                          14                --                          --                          14
Unallocated pension service costs                                      --                          --                --                          2                           2
Special items(1)                                                       --                          --                --                          12                          12
Adjusted EBITDA                                                        $            242            $            43   $            207            $            (38)           $            454
(1) Pre-tax special items include: $12 million of Plum Creek merger-related costs.
The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2017 :
DOLLAR AMOUNTS IN MILLIONS                                             Timberlands                 Real Estate       Wood                        Unallocated                 Total
                                                                                                   & ENR             Products                    Items
Adjusted EBITDA by Segment:
Net earnings                                                                                                                                                                 $            24
Earnings from discontinued operations, net of income taxes                                                                                                                   --
Interest expense, net of capitalized interest                                                                                                                                100
Income taxes                                                                                                                                                                 34
Net contribution to earnings                                           $            (12)           $            23   $            177            $            (30)           $            158
Equity earnings from joint ventures                                    --                          --                --                          --                          --
Non-operating pension and other postretirement benefit (costs) credits --                          --                --                          8                           8
Interest income and other                                              --                          --                --                          (9)                         (9)
Operating income (loss)                                                (12)                        23                177                         (31)                        157
Depreciation, depletion and amortization                               87                          4                 36                          2                           129
Basis of real estate sold                                              --                          10                --                          --                          10
Unallocated pension service costs                                      --                          --                --                          --                          --
Special items(1)                                                       147                         --                61                          2                           210
Adjusted EBITDA                                                        $            222            $            37   $            274            $            (27)           $            506
(1) Pre-tax special items include: $147 million of impairment charges related to our Uruguayan operations; $50 million for product remediation; $11 million of countervailing and antidumping duties; and $2 million of Plum Creek merger-related costs.
The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2016:
DOLLAR AMOUNTS IN MILLIONS                                             Timberlands                 Real Estate       Wood                        Unallocated                 Total
                                                                                                   & ENR             Products                    Items
Adjusted EBITDA by Segment:
Net earnings                                                                                                                                                                 $            168
Earnings from discontinued operations, net of income taxes                                                                                                                   (38)
Interest expense, net of capitalized interest                                                                                                                                114
Income taxes                                                                                                                                                                 31
Net contribution to earnings                                           $            125            $            12   $            156            $            (18)           $            275
Equity earnings from joint ventures                                    --                          --                --                          (7)                         (7)
Non-operating pension and other postretirement benefit (costs) credits --                          --                --                          (10)                        (10)
Interest income and other                                              --                          --                --                          (10)                        (10)
Operating income (loss)                                                125                         12                156                         (45)                        248
Depreciation, depletion and amortization                               95                          3                 33                          2                           133
Basis of real estate sold                                              --                          13                --                          --                          13
Unallocated pension service costs                                      --                          --                --                          --                          --
Special items(1)                                                       --                          --                --                          19                          19
Adjusted EBITDA                                                        $            220            $            28   $            189            $            (24)           $            413
(1)  Pre-tax special items include: $8 million of Plum Creek merger-related costs and $11 million of legal expense.
Weyerhaeuser Company                                                                                                                                                                                                                                 Exhibit 99.2
Q2.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations(1)(2)
in millions                                                                                                                     Q1                                     Q2                                                                            Year-to-date
                                                                                                                                March 31,                              June 30,                               June 30,                               June 30,                               June 30,
                                                                                                                                2017                                   2017                                   2016                                   2017                                   2016
Net sales                                                                                                                       $                              1,693   $                              1,808   $                              1,655   $                              3,501   $                              3,060
Cost of products sold                                                                                                           1,272                                  1,336                                  1,271                                  2,608                                  2,374
Gross margin                                                                                                                    421                                    472                                    384                                    893                                    686
Selling expenses                                                                                                                22                                     22                                     22                                     44                                     45
General and administrative expenses                                                                                             87                                     76                                     94                                     163                                    173
Research and development expenses                                                                                               4                                      4                                      4                                      8                                      9
Charges for integration and restructuring, closures and asset impairments                                                       13                                     151                                    14                                     164                                    125
Other operating costs (income), net                                                                                             2                                      62                                     2                                      64                                     (53)
Operating income from continuing operations                                                                                     293                                    157                                    248                                    450                                    387
Equity earnings from joint ventures                                                                                             --                                     --                                     7                                      --                                     12
Non-operating pension and other postretirement benefit (costs) credits                                                          (22)                                   (8)                                    10                                     (30)                                   24
Interest income and other                                                                                                       9                                      9                                      10                                     18                                     19
Interest expense, net of capitalized interest                                                                                   (99)                                   (100)                                  (114)                                  (199)                                  (209)
Earnings from continuing operations before income taxes                                                                         181                                    58                                     161                                    239                                    233
Income taxes                                                                                                                    (24)                                   (34)                                   (31)                                   (58)                                   (42)
Earnings from continuing operations                                                                                             157                                    24                                     130                                    181                                    191
Earnings from discontinued operations, net of income taxes                                                                      --                                     --                                     38                                     --                                     58
Net earnings                                                                                                                    157                                    24                                     168                                    181                                    249
Dividends on preference shares                                                                                                  --                                     --                                     (11)                                   --                                     (22)
Net earnings attributable to Weyerhaeuser common shareholders                                                                   $                              157     $                              24      $                              157     $                              181     $                              227
(1) Discontinued operations as presented herein consist of the operations of our former Cellulose Fibers segment. The corresponding assets and liabilities were classified as discontinued operations on our balance sheet.
(2) Amounts presented reflect the results of operations acquired in our merger with Plum Creek Timber, Inc., beginning on the merger date of February 19, 2016.
Per Share Information
                                                                                                                                Q1                                     Q2                                                                            Year-to-date
                                                                                                                                March 31,                              June 30,                               June 30,                               June 30,                               June 30,
                                                                                                                                2017                                   2017                                   2016                                   2017                                   2016
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations                                                                                                           $                              0.21    $                              0.03    $                              0.16    $                              0.24    $                              0.25
Discontinued operations                                                                                                         --                                     --                                     0.05                                   --                                     0.08
Net earnings per share                                                                                                          $                              0.21    $                              0.03    $                              0.21    $                              0.24    $                              0.33
Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations                                                                                                           $                              0.21    $                              0.03    $                              0.16    $                              0.24    $                              0.25
Discontinued operations                                                                                                         --                                     --                                     0.05                                   --                                     0.08
Net earnings per share                                                                                                          $                              0.21    $                              0.03    $                              0.21    $                              0.24    $                              0.33
Dividends paid per common share                                                                                                 $                              0.31    $                              0.31    $                              0.31    $                              0.62    $                              0.62
Weighted average shares outstanding (in thousands):
Basic                                                                                                                           750,665                                752,630                                743,140                                751,674                                687,572
Diluted                                                                                                                         754,747                                756,451                                747,701                                755,625                                691,060
Common shares outstanding at end of period (in thousands)                                                                       751,411                                752,711                                733,010                                752,711                                733,010
Weyerhaeuser Company
Q2.2017 Analyst Package
Preliminary results (unaudited)
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*
in millions                                                                                                                     Q1                                     Q2                                                                            Year-to-date
                                                                                                                                March 31,                              June 30,                               June 30,                               June 30,                               June 30,
                                                                                                                                2017                                   2017                                   2016                                   2017                                   2016
Net earnings                                                                                                                    $                              157     $                              24      $                              168     $                              181     $                              249
Earnings from discontinued operations, net of income taxes                                                                      --                                     --                                     (38)                                   --                                     (58)
Equity earnings from joint ventures                                                                                             --                                     --                                     (7)                                    --                                     (12)
Non-operating pension and other postretirement benefit costs (credits)                                                          22                                     8                                      (10)                                   30                                     (24)
Interest income and other                                                                                                       (9)                                    (9)                                    (10)                                   (18)                                   (19)
Interest expense, net of capitalized interest                                                                                   99                                     100                                    114                                    199                                    209
Income taxes                                                                                                                    24                                     34                                     31                                     58                                     42
Operating income from continuing operations                                                                                     293                                    157                                    248                                    450                                    387
Depreciation, depletion and amortization                                                                                        133                                    129                                    133                                    262                                    237
Basis of real estate sold                                                                                                       14                                     10                                     13                                     24                                     30
Unallocated pension service costs                                                                                               2                                      --                                     --                                     2                                      2
Special items                                                                                                                   12                                     210                                    19                                     222                                    93
Adjusted EBITDA*                                                                                                                $                              454     $                              506     $                              413     $                              960     $                              749
*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 of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.
Special Items Included in Net Earnings (income tax affected)
in millions                                                                                                                     Q1                                     Q2                                                                            Year-to-date
                                                                                                                                March 31,                              June 30,                               June 30,                               June 30,                               June 30,
                                                                                                                                2017                                   2017                                   2016                                   2017                                   2016
Net earnings attributable to Weyerhaeuser common shareholders                                                                   $                              157     $                              24      $                              157     $                              181     $                              227
Plum Creek merger- and integration-related costs                                                                                10                                     2                                      4                                      12                                     102
Uruguay impairment                                                                                                              --                                     147                                    --                                     147                                    --
Gain on sale of non-strategic asset                                                                                             --                                     --                                     --                                     --                                     (22)
Legal expense                                                                                                                   --                                     --                                     7                                      --                                     7
Product remediation                                                                                                             --                                     31                                     --                                     31                                     --
Countervailing and antidumping duties                                                                                           --                                     8                                      --                                     8                                      --
Net earnings attributable to Weyerhaeuser common shareholders before special items                                              167                                    212                                    168                                    379                                    314
Earnings from discontinued operations, net of income taxes                                                                      --                                     --                                     (38)                                   --                                     (58)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items                   $                              167     $                              212     $                              130     $                              379     $                              256
per share                                                                                                                       Q1                                     Q2                                                                            Year-to-date
                                                                                                                                March 31,                              June 30,                               June 30,                               June 30,                               June 30,
                                                                                                                                2017                                   2017                                   2016                                   2017                                   2016
Net earnings per diluted share attributable to Weyerhaeuser common shareholders                                                 $                              0.21    $                              0.03    $                              0.21    $                              0.24    $                              0.33
Plum Creek merger- and integration-related costs                                                                                0.01                                   --                                     --                                     0.02                                   0.14
Uruguay impairment                                                                                                              --                                     0.20                                   --                                     0.19                                   --
Gain on sale of non-strategic asset                                                                                             --                                     --                                     --                                     --                                     (0.03)
Legal expense                                                                                                                   --                                     --                                     0.01                                   --                                     0.01
Product remediation                                                                                                             --                                     0.04                                   --                                     0.04                                   --
Countervailing and antidumping duties                                                                                           --                                     0.01                                   --                                     0.01                                   --
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items                            0.22                                   0.28                                   0.22                                   0.50                                   0.45
Earnings from discontinued operations, net of income taxes                                                                      --                                     --                                     (0.05)                                 --                                     (0.08)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items $                              0.22    $                              0.28    $                              0.17    $                              0.50    $                              0.37
Weyerhaeuser Company
Q2.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Balance Sheet
in millions                                                                    March 31,    June 30,     December 31,
                                                                               2017         2017         2016
ASSETS
Current assets:
Cash and cash equivalents                                                      $   455      $   701      $    676
Receivables, less allowances                                                   472          442          390
Receivables for taxes                                                          10           8            84
Inventories                                                                    386          349          358
Prepaid expenses and other current assets                                      142          177          114
Assets held for sale                                                           --           411          --
Total current assets                                                           1,465        2,088        1,622
Property and equipment, net                                                    1,544        1,534        1,562
Construction in progress                                                       230          190          213
Timber and timberlands at cost, less depletion charged to disposals            14,218       13,669       14,299
Minerals and mineral rights, net                                               317          314          319
Investments in and advances to joint ventures                                  56           33           56
Goodwill                                                                       40           40           40
Deferred tax assets                                                            287          261          293
Other assets                                                                   229          246          224
Restricted financial investments held by variable interest entities            615          615          615
Total assets                                                                   $   19,001   $   18,990   $    19,243
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt                                           $   343      $   668      $    281
Accounts payable                                                               227          252          233
Accrued liabilities                                                            452          585          692
Liabilities held for sale                                                      --           19           --
Total current liabilities                                                      1,022        1,524        1,206
Long-term debt                                                                 6,263        5,936        6,329
Long-term debt (nonrecourse to the company) held by variable interest entities 511          511          511
Deferred pension and other postretirement benefits                             1,287        1,230        1,322
Deposit received from contribution of timberlands to related party             422          419          426
Other liabilities                                                              281          280          269
Total liabilities                                                              9,786        9,900        10,063
Total equity                                                                   9,215        9,090        9,180
Total liabilities and equity                                                   $   19,001   $   18,990   $    19,243
Weyerhaeuser Company
Q2.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows
in millions                                                                   Q1                Q2                 Year-to-date
                                                                              March 31,         June 30, June 30,  June 30, June 30,
                                                                              2017              2017     2016      2017     2016
Cash flows from operations:
Net earnings                                                                  $       157       $  24    $  168    $  181   $   249
Noncash charges (credits) to income:
Depreciation, depletion and amortization                                      133               129      147       262      289
Basis of real estate sold                                                     14                10       13        24       30
Deferred income taxes, net                                                    3                 3        38        6        56
Gains on sales of discontinued operations                                     --                --       --        --       --
Gains on sales of non-strategic assets                                        (7)               (2)      (10)      (9)      (51)
Pension and other postretirement benefits                                     32                15       1         47       5
Other noncash charges (credits)                                               13                156      26        169      34
Change in:
Receivables less allowances                                                   (70)              (8)      (43)      (78)     (90)
Receivable for taxes                                                          (36)              (17)     25        (53)     35
Inventories                                                                   (28)              21       60        (7)      17
Prepaid expenses                                                              (9)               (4)      --        (13)     (1)
Accounts payable and accrued liabilities                                      (137)             192      106       55       36
Pension and postretirement contributions                                      (22)              (15)     (12)      (37)     (29)
Distributions of earnings received from joint ventures                        --                --       --        --       5
Other                                                                         (8)               (15)     (27)      (23)     (46)
Net cash from operations                                                      35                489      492       524      539
Cash flows from investing activities:
Capital expenditures:
Purchases of property and equipment                                           (52)              (74)     (83)      (126)    (140)
Timberlands reforestation costs                                               (23)              (13)     (18)      (36)     (34)
Acquisition of timberlands                                                    --                --       (2)       --       (8)
Proceeds from sales of discontinued operations                                --                --       --        --       --
Proceeds from sale of assets                                                  8                 4        13        12       83
Proceeds from contribution of timberlands to related party                    --                --       440       --       440
Distributions of investment received from joint ventures                      --                23       3         23       27
Cash and cash equivalents acquired in the merger with Plum Creek              --                --       --        --       9
Other                                                                         (1)               22       (3)       21       (3)
Cash from (used in) investing activities                                      (68)              (38)     350       (106)    374
Cash flows from financing activities:
Cash dividends on common shares                                               (233)             (233)    (228)     (466)    (469)
Cash dividends on preference shares                                           --                --       (11)      --       (11)
Proceeds from issuance of long-term debt                                      --                --       300       --       1,398
Payments of long-term debt                                                    --                --       (3)       --       (723)
Repurchase of common stock                                                    --                --       (831)     --       (1,629)
Other                                                                         45                28       8         73       1
Cash used in financing activities                                             (188)             (205)    (765)     (393)    (1,433)
Net change in cash and cash equivalents                                       (221)             246      77        25       (520)
Cash and cash equivalents from continuing operations at beginning of period   $       676       $  455   $  411    $  676   1,011
Cash and cash equivalents from discontinued operations at beginning of period --                --       4         --       1
Cash and cash equivalents at beginning of period                              $       676       $  455   $  415    $  676   1,012
Cash and cash equivalents from continuing operations at end of period         $       455       $  701   $  485    $  701   485
Cash and cash equivalents from discontinued operations at end of period       --                --       7         --       7
Cash and cash equivalents at end of period                                    $       455       $  701   $  492    $  701   $   492
Cash paid (received) during the year for:
Interest, net of amount capitalized                                           $       120       $  72    $  92     $  192   $   225
Income taxes                                                                  $       59        $  47    $  (12)   $  106   $   (25)
Weyerhaeuser Company                                                                                                            Total Company Statistics
Q2.2017 Analyst Package
Preliminary results (unaudited)
Selected Total Company Items
in millions                                                                               Q1                Q2                  Year-to-date
                                                                                          March 31,         June 30,  June 30,  June 30,    June 30,
                                                                                          2017              2017      2016      2017        2016
Pension and postretirement costs:
Pension and postretirement costs allocated to business segments                           $       8         $  7      $  8      $   15      $   15
Pension and postretirement credits not allocated:
Unallocated pension service costs                                                         2                 --        --        2           2
Non-operating pension and other postretirement benefit costs (credits)                    22                8         (10)      30          (24)
Accelerated pension costs included in Plum Creek merger-related costs (not allocated)     --                --        --        --          5
Total pension and postretirement costs (credits) for continuing operations                32                15        (2)       47          (2)
Pension and postretirement service costs directly attributable to discontinued operations --                --        3         --          7
Total company pension and postretirement costs                                            $       32        $  15     $  1      $   47      $   5
Cash spent for capital expenditures for continuing operations                             $       (75)      $  (87)   $  (89)   $   (162)   $   (140)
Weyerhaeuser Company                                                                                                                                                                             Timberlands Segment
Q2.2017 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions                                                                  Q1.2017                                                   Q2.2017                                                   Q2.2016                                                   YTD.2017                                                  YTD.2016
Sales to unaffiliated customers                                              $                  486                                    $                  469                                    $                  471                                    $                  955                                    $                  858
Intersegment sales                                                           202                                                       163                                                       193                                                       365                                                       415
Total net sales                                                              688                                                       632                                                       664                                                       1,320                                                     1,273
Cost of products sold                                                        519                                                       476                                                       509                                                       995                                                       968
Gross margin                                                                 169                                                       156                                                       155                                                       325                                                       305
Selling expenses                                                             1                                                         1                                                         2                                                         2                                                         3
General and administrative expenses                                          24                                                        23                                                        32                                                        47                                                        60
Research and development expenses                                            3                                                         4                                                         4                                                         7                                                         8
Charges for integration and restructuring, closures and assets impairments   --                                                        147                                                       --                                                        147                                                       --
Other operating income, net                                                  (7)                                                       (7)                                                       (8)                                                       (14)                                                      (20)
Operating income and Net contribution to earnings                            $                  148                                    $                  (12)                                   $                  125                                    $                  136                                    $                  254
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions                                                                  Q1.2017                                                   Q2.2017                                                   Q2.2016                                                   YTD.2017                                                  YTD.2016
Operating income                                                             $                  148                                    $                  (12)                                   $                  125                                    $                  136                                    $                  254
Depreciation, depletion and amortization                                     94                                                        87                                                        95                                                        181                                                       165
Special items                                                                --                                                        147                                                       --                                                        147                                                       --
Adjusted EBITDA*                                                             $                  242                                    $                  222                                    $                  220                                    $                  464                                    $                  419
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
                                                                             Q1.2017                                                   Q2.2017                                                   Q2.2016                                                   YTD.2017                                                  YTD.2016
Uruguay impairment                                                           --                                                        (147)                                                     --                                                        (147)                                                     --
Selected Segment Items
                                                                             Q1.2017                                                   Q2.2017                                                   Q2.2016                                                   YTD.2017                                                  YTD.2016
Total decrease (increase) in working capital (1)                             $                  (37)                                   $                  (5)                                    $                  28                                     $                  (42)                                   $                  (25)
Cash spent for capital expenditures                                          $                  (30)                                   $                  (25)                                   $                  (31)                                   $                  (55)                                   $                  (51)
(1) Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR.
Segment Statistics(2)(3)
                                                                             Q1.2017                                                   Q2.2017                                                   Q2.2016                                                   YTD.2017                                                  YTD.2016
Third Party                            Delivered logs:
Net Sales(millions)
West                                   $                                     225                                    $                  227                                    $                  232                                    $                  452                                    $                  447
South                                  148                                                                          148                                                       154                                                       296                                                       255
North                                  27                                                                           16                                                        19                                                        43                                                        32
Other                                  20                                                                           11                                                        7                                                         31                                                        14
Total delivered logs                   420                                                                          402                                                       412                                                       822                                                       748
Stumpage and pay-as-cut timber         12                                                                           17                                                        23                                                        29                                                        38
Products from international operations 19                                                                           21                                                        21                                                        40                                                        37
Recreational and other lease revenue   14                                                                           15                                                        8                                                         29                                                        14
Other revenue                          21                                                                           14                                                        7                                                         35                                                        21
Total                                  $                                     486                                    $                  469                                    $                  471                                    $                  955                                    $                  858
Delivered Logs                         West                                  $                  104.27                                 $                  105.84                                 $                  98.21                                  $                  105.06                                 $                  99.39
Third Party Sales
Realizations
(per ton)
South                                  $                                     34.48                                  $                  34.48                                  $                  35.54                                  $                  34.48                                  $                  35.87
North                                  $                                     59.57                                  $                  63.49                                  $                  65.43                                  $                  60.97                                  $                  62.95
International                          $                                     28.18                                  $                  29.73                                  $                  23.29                                  $                  28.98                                  $                  18.59
Delivered Logs                         West                                  2,157                                                     2,143                                                     2,363                                                     4,300                                                     4,496
Third Party Sales
Volumes
(tons, thousands)
                                       South                                 4,293                                                     4,285                                                     4,340                                                     8,578                                                     7,121
                                       North                                 454                                                       253                                                       292                                                       707                                                       502
                                       International                         90                                                        96                                                        89                                                        186                                                       235
                                       Other                                 510                                                       292                                                       169                                                       802                                                       338
Fee Harvest Volumes                    West                                  2,657                                                     2,652                                                     2,980                                                     5,309                                                     5,781
(tons, thousands)
South                                  6,373                                                                        6,473                                                     7,061                                                     12,846                                                    12,091
North                                  622                                                                          383                                                       454                                                       1,005                                                     714
International                          265                                                                          319                                                       248                                                       584                                                       547
Other                                  371                                                                          444                                                       181                                                       815                                                       181
(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations.
(3) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.
Weyerhaeuser Company                                                                                  Real Estate, Energy and Natural
                                                                                                      Resources Segment
Q2.2017 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions                                                             Q1.2017         Q2.2017       Q2.2016       YTD.2017    YTD.2016
Sales to unaffiliated customers                                         $      53       $     46      $     38      $   99      $   77
Intersegment sales                                                      --              --            --            --          --
Total net sales                                                         53              46            38            99          77
Cost of products sold                                                   20              16            19            36          39
Gross margin                                                            33              30            19            63          38
Selling expenses                                                        --              --            --            --          --
General and administrative expenses                                     7               7             8             14          12
Charges for integration, restructuring, closures and asset impairments  --              --            1             --          1
Other operating costs (income), net                                     --              --            (2)           --          (2)
Operating income                                                        26              23            12            49          27
Equity earnings (loss) from joint ventures(1)                           --              --            --            --          --
Net contribution to earnings                                            $      26       $     23      $     12      $   49      $   27
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions                                                             Q1.2017         Q2.2017       Q2.2016       YTD.2017    YTD.2016
Operating income                                                        $      26       $     23      $     12      $   49      $   27
Depreciation, depletion and amortization                                3               4             3             7           5
Basis of real estate sold                                               14              10            13            24          30
Adjusted EBITDA*                                                        $      43       $     37      $     28      $   80      $   62
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
Selected Segment Items
                                                                        Q1.2017         Q2.2017       Q2.2016       YTD.2017    YTD.2016
Cash spent for capital expenditures                                     $      --       $     (1)     $     (1)     $   (1)     $   (1)
Segment Statistics
                                                                        Q1.2017         Q2.2017       Q2.2016       YTD.2017    YTD.2016
Net Sales                           Real Estate                         $      37       $     27      $     26      $   64      $   56
(millions)
                                    Energy and natural resources        16              19            12            35          21
                                    Total                               $      53       $     46      $     38      $   99      $   77
Acres sold                          Real Estate                         13,257          10,003        10,020        23,260      25,245
Price per acre                      Real Estate                         $      2,403    $     2,714   $     2,555   $   2,537   $   2,210
Weyerhaeuser Company                                                      Wood Products Segment
Q2.2017 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions                                                               Q1.2017               Q2.2017               Q2.2016               YTD.2017              YTD.2016
Sales to unaffiliated customers                                           $      1,154          $      1,293          $      1,146          $      2,447          $      2,125
Intersegment sales                                                        --                    --                    22                    --                    44
Total net sales                                                           1,154                 1,293                 1,168                 2,447                 2,169
Cost of products sold                                                     926                   1,002                 957                   1,928                 1,819
Gross margin                                                              228                   291                   211                   519                   350
Selling expenses                                                          21                    19                    20                    40                    42
General and administrative expenses                                       32                    32                    30                    64                    57
Research and development expenses                                         1                     --                    --                    1                     1
Charges for integration and restructuring, closures and asset impairments 1                     2                     4                     3                     5
Other operating costs (income), net                                       1                     61                    1                     62                    2
Operating income and Net contribution to earnings                         $      172            $      177            $      156            $      349            $      243
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions                                                               Q1.2017               Q2.2017               Q2.2016               YTD.2017              YTD.2016
Operating income                                                          $      172            $      177            $      156            $      349            $      243
Depreciation, depletion and amortization                                  35                    36                    33                    71                    63
Special items                                                             --                    61                    --                    61                    --
Adjusted EBITDA*                                                          $      207            $      274            $      189            $      481            $      306
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
                                                                          Q1.2017               Q2.2017               Q2.2016               YTD.2017              YTD.2016
Countervailing and antidumping duties                                     $      --             $      (11)           $      --             $      (11)           $      --
Product remediation                                                       --                    (50)                  --                    (50)                  --
Total                                                                     $      --             $      (61)           $      --             $      (61)           $      --
Selected Segment Items
                                                                          Q1.2017               Q2.2017               Q2.2016               YTD.2017              YTD.2016
Total decrease (increase) in working capital (1)                          $      (122)          $      113            $      35             $      (9)            $      (97)
Cash spent for capital expenditures                                       $      (44)           $      (61)           $      (52)           $      (105)          $      (81)
(1) Working capital does not include cash balances.
Segment Statistics
in millions, except for third-party sales realizations                    Q1.2017               Q2.2017               Q2.2016               YTD.2017              YTD.2016
Structural Lumber                    Third party net sales                $      478            $      538            $      498            $      1,016          $      917
(board feet)
                                     Third party sales realizations       $      413            $      441            $      399            $      427            $      382
                                     Third party sales volumes (2)        1,158                 1,218                 1,249                 2,376                 2,401
                                     Production volumes                   1,152                 1,146                 1,205                 2,298                 2,334
Engineered Solid                     Third party net sales                $      117            $      130            $      115            $      247            $      224
Section
(cubic feet)
Third party sales realizations       $                                    1,881          $      1,979          $      1,922          $      1,931          $      1,946
Third party sales volumes (2)        6.2                                                 6.6                   6.0                   12.8                  11.5
Production volumes                   6.3                                                 6.6                   5.9                   12.9                  11.5
Engineered                           Third party net sales                $      73             $      85             $      73             $      158            $      139
I-joists
(lineal feet)
                                     Third party sales realizations       $      1,481          $      1,522          $      1,471          $      1,503          $      1,488
                                     Third party sales volumes (2)        49                    57                    50                    106                   94
                                     Production volumes                   50                    53                    46                    103                   92
Oriented Strand                      Third party net sales                $      203            $      225            $      182            $      428            $      345
Board
(square feet 3/8")
Third party sales realizations       $                                    263            $      295            $      240            $      279            $      227
Third party sales volumes (2)        769                                                 764                   761                   1,533                 1,520
Production volumes                   758                                                 754                   733                   1,512                 1,482
Softwood Plywood                     Third party net sales                $      44             $      47             $      50             $      91             $      85
(square feet 3/8")
                                     Third party sales realizations       $      377            $      380            $      382            $      379            $      352
                                     Third party sales volumes (2)        118                   123                   131                   241                   241
                                     Production volumes                   97                    99                    111                   196                   199
Medium Density                       Third party net sales                $      47             $      51             $      47             $      98             $      64
Fiberboard
(square feet 3/4")
Third party sales realizations       $                                    795            $      845            $      772            $      820            $      769
Third party sales volumes (2)        59                                                  60                    60                    119                   83
Production volumes                   56                                                  63                    62                    119                   87
(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.
Weyerhaeuser Company                                                       Unallocated Items
Q2.2017 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                                                                Q1.2017                     Q2.2017                     Q2.2016                     YTD.2017                    YTD.2016
Unallocated corporate function expenses                                    $                    (19)   $                    (17)   $                    (24)   $                    (36)   $                    (41)
Unallocated share-based compensation                                       (6)                         --                          1                           (6)                         (1)
Unallocated pension service costs                                          (2)                         --                          --                          (2)                         (2)
Foreign exchange gains (losses)                                            (3)                         --                          1                           (3)                         14
Elimination of intersegment profit in inventory and LIFO                   (6)                         (3)                         (2)                         (9)                         (8)
Gain on sale of non-strategic asset                                        3                           1                           8                           4                           44
Charges for integration and restructuring, closures and asset impairments:
Plum Creek merger- and integration-related costs                           (12)                        (2)                         (8)                         (14)                        (118)
Other restructuring, closures and asset impairments                        --                          --                          (1)                         --                          (1)
Other                                                                      (8)                         (10)                        (20)                        (18)                        (24)
Operating income (loss)                                                    (53)                        (31)                        (45)                        (84)                        (137)
Equity earnings from joint venture (1)                                     --                          --                          7                           --                          12
Non-operating pension and other postretirement benefit (costs) credits (2) (22)                        (8)                         10                          (30)                        24
Interest income and other                                                  9                           9                           10                          18                          19
Net contribution to earnings                                               $                    (66)   $                    (30)   $                    (18)   $                    (96)   $                    (82)
(1) 2016 results include equity earnings from our Timberland Venture, which was consolidated as a wholly-owned subsidiary effective August 31, 2016.
(2) During Q1 2017 we adopted ASU 2017-07. This ASU requires us to show components of pension and other post retirement benefit costs (interest, expected return on plan assets, amortization of actuarial gains or losses, amortization of prior service credits or costs) on the Consolidated Statement of Operations as a line item outside of "Operating income." We reclassified these components for all periods shown above.
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions                                                                Q1.2017                     Q2.2017                     Q2.2016                     YTD.2017                    YTD.2016
Operating income (loss)                                                    $                    (53)   $                    (31)   $                    (45)   $                    (84)   $                    (137)
Depreciation, depletion and amortization                                   1                           2                           2                           3                           4
Unallocated pension service costs                                          2                           --                          --                          2                           2
Special items                                                              12                          2                           19                          14                          93
Adjusted EBITDA*                                                           $                    (38)   $                    (27)   $                    (24)   $                    (65)   $                    (38)
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)
                                                                           Q1.2017                     Q2.2017                     Q2.2016                     YTD.2017                    YTD.2016
Plum Creek merger- and integration-related costs                           (12)                        (2)                         (8)                         (14)                        (118)
Gain on sale of non-strategic asset                                        --                          --                          --                          --                          36
Legal expense                                                              --                          --                          (11)                        --                          (11)
Total                                                                      $                    (12)   $                    (2)    $                    (19)   $                    (14)   $                    (93)
Unallocated Selected Items
                                                                           Q1.2017                     Q2.2017                     Q2.2016                     YTD.2017                    YTD.2016
Cash spent for capital expenditures                                        $                    (1)    $                    --     $                    (5)    $                    (1)    $                    (7)

View original content with multimedia:http://www.prnewswire.com/news-releases/weyerhaeuser-reports-second-quarter-results-300495891.html

SOURCE Weyerhaeuser Company

https://rt.prnewswire.com/rt.gif?NewsItemId=SF52954&Transmission_Id=201707280305PR_NEWS_USPR_____SF52954&DateId=20170728



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.