Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WEYERHAEUSER CO | wyq3158kearningsrelease.htm |
| EX-99.1 - EXHIBIT 99.1 - WEYERHAEUSER CO | wy2015q3ex-991.htm |
Weyerhaeuser Company | Exhibit 99.2 | ||||||||||||||||||
Q3.2015 Analyst Package | |||||||||||||||||||
Preliminary results (unaudited) | |||||||||||||||||||
Consolidated Statement of Operations | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Net Sales | $ | 1,807 | $ | 1,820 | $ | 1,915 | $ | 5,348 | $ | 5,615 | |||||||||
Cost of products sold | 1,474 | 1,445 | 1,504 | 4,304 | 4,364 | ||||||||||||||
Gross margin | 333 | 375 | 411 | 1,044 | 1,251 | ||||||||||||||
Selling expenses | 28 | 27 | 28 | 83 | 83 | ||||||||||||||
General and administrative expenses | 71 | 60 | 73 | 205 | 249 | ||||||||||||||
Research and development expenses | 6 | 6 | 5 | 17 | 19 | ||||||||||||||
Charges for restructuring, closures and impairments | — | 2 | 10 | 16 | 37 | ||||||||||||||
Other operating costs (income), net | (15 | ) | 21 | (23 | ) | 21 | (163 | ) | |||||||||||
Operating income | 243 | 259 | 318 | 702 | 1,026 | ||||||||||||||
Interest income and other | 2 | 4 | 7 | 9 | 27 | ||||||||||||||
Interest expense, net of capitalized interest | (88 | ) | (88 | ) | (88 | ) | (259 | ) | (254 | ) | |||||||||
Earnings from continuing operations before income taxes | 157 | 175 | 237 | 452 | 799 | ||||||||||||||
Income tax (expense) benefit | (13 | ) | 16 | (39 | ) | (16 | ) | (148 | ) | ||||||||||
Earnings from continuing operations | 144 | 191 | 198 | 436 | 651 | ||||||||||||||
Earnings from discontinued operations, net of income taxes | — | — | 966 | — | 998 | ||||||||||||||
Net earnings | 144 | 191 | 1,164 | 436 | 1,649 | ||||||||||||||
Dividends on preference shares | (11 | ) | (11 | ) | (11 | ) | (33 | ) | (33 | ) | |||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 133 | $ | 180 | $ | 1,153 | $ | 403 | $ | 1,616 | |||||||||
Per Share Information | |||||||||||||||||||
Q2 | Q3 | Year-to-date | |||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, basic: | |||||||||||||||||||
Continuing operations | $ | 0.26 | $ | 0.35 | $ | 0.35 | $ | 0.78 | $ | 1.09 | |||||||||
Discontinued operations | — | — | 1.82 | — | 1.76 | ||||||||||||||
Net earnings per share | $ | 0.26 | $ | 0.35 | $ | 2.17 | $ | 0.78 | $ | 2.85 | |||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, diluted: | |||||||||||||||||||
Continuing operations | $ | 0.26 | $ | 0.35 | $ | 0.35 | $ | 0.77 | $ | 1.08 | |||||||||
Discontinued operations | — | — | 1.80 | — | 1.75 | ||||||||||||||
Net earnings per share | $ | 0.26 | $ | 0.35 | $ | 2.15 | $ | 0.77 | $ | 2.83 | |||||||||
Dividends paid per common share | $ | 0.29 | $ | 0.31 | $ | 0.29 | $ | 0.89 | $ | 0.73 | |||||||||
Weighted average shares outstanding (in thousands): | |||||||||||||||||||
Basic | 516,626 | 514,301 | 531,913 | 518,121 | 567,436 | ||||||||||||||
Diluted | 519,804 | 517,088 | 536,012 | 521,455 | 571,503 | ||||||||||||||
Common shares outstanding at end of period (in thousands) | 514,121 | 511,033 | 525,485 | 511,033 | 525,485 | ||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Net earnings | $ | 144 | $ | 191 | $ | 1,164 | $ | 436 | $ | 1,649 | |||||||||
Earnings from discontinued operations, net of income taxes | — | — | (966 | ) | — | (998 | ) | ||||||||||||
Interest income and other | (2 | ) | (4 | ) | (7 | ) | (9 | ) | (27 | ) | |||||||||
Interest expense, net of capitalized interest | 88 | 88 | 88 | 259 | 254 | ||||||||||||||
Income tax expense (benefit) | 13 | (16 | ) | 39 | 16 | 148 | |||||||||||||
Operating income | 243 | 259 | 318 | 702 | 1,026 | ||||||||||||||
Depreciation, depletion and amortization | 118 | 118 | 123 | 359 | 368 | ||||||||||||||
Non-operating pension and postretirement credits | (3 | ) | (2 | ) | (12 | ) | (8 | ) | (33 | ) | |||||||||
Special items | — | — | (15 | ) | 13 | (103 | ) | ||||||||||||
Adjusted EBITDA* | $ | 358 | $ | 375 | $ | 414 | $ | 1,066 | $ | 1,258 | |||||||||
* Non-GAAP measure - see page 8 for definition. | |||||||||||||||||||
Page 1 of 8
Weyerhaeuser Company | |||||||||||
Q3.2015 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Balance Sheet | |||||||||||
in millions | June 30, 2015 | September 30, 2015 | December 31, 2014 | ||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,121 | $ | 1,048 | $ | 1,580 | |||||
Receivables, less allowances | 537 | 545 | 525 | ||||||||
Receivables for taxes | 12 | 14 | 25 | ||||||||
Inventories | 603 | 590 | 595 | ||||||||
Prepaid expenses | 82 | 87 | 80 | ||||||||
Deferred tax assets | 162 | 218 | 228 | ||||||||
Total current assets | 2,517 | 2,502 | 3,033 | ||||||||
Property and equipment, net | 2,557 | 2,484 | 2,623 | ||||||||
Construction in progress | 171 | 231 | 131 | ||||||||
Timber and timberlands at cost, less depletion charged to disposals | 6,531 | 6,507 | 6,530 | ||||||||
Investments in and advances to equity affiliates | 176 | 174 | 188 | ||||||||
Goodwill | 40 | 40 | 40 | ||||||||
Deferred tax assets | 2 | — | 8 | ||||||||
Other assets | 274 | 267 | 289 | ||||||||
Restricted financial investments held by variable interest entities | 615 | 615 | 615 | ||||||||
Total assets | $ | 12,883 | $ | 12,820 | $ | 13,457 | |||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 343 | $ | 344 | $ | 331 | |||||
Accrued liabilities | 576 | 554 | 587 | ||||||||
Total current liabilities | 919 | 898 | 918 | ||||||||
Long-term debt | 4,891 | 4,891 | 4,891 | ||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 511 | 511 | 511 | ||||||||
Deferred income taxes | 196 | 259 | 206 | ||||||||
Deferred pension and other postretirement benefits | 1,166 | 1,106 | 1,319 | ||||||||
Other liabilities | 275 | 277 | 308 | ||||||||
Total liabilities | 7,958 | 7,942 | 8,153 | ||||||||
Total equity | 4,925 | 4,878 | 5,304 | ||||||||
Total liabilities and equity | $ | 12,883 | $ | 12,820 | $ | 13,457 | |||||
Page 2 of 8
Weyerhaeuser Company | |||||||||||||||||||
Q3.2015 Analyst Package | |||||||||||||||||||
Preliminary results (unaudited) | |||||||||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Cash flows from operations: | |||||||||||||||||||
Net earnings | $ | 144 | $ | 191 | $ | 1,164 | $ | 436 | $ | 1,649 | |||||||||
Noncash charges (credits) to income: | |||||||||||||||||||
Depreciation, depletion and amortization | 118 | 118 | 123 | 359 | 375 | ||||||||||||||
Deferred income taxes, net | 3 | (6 | ) | 45 | 10 | 170 | |||||||||||||
Pension and other postretirement benefits | 11 | 11 | (13 | ) | 32 | (104 | ) | ||||||||||||
Share-based compensation expense | 8 | 6 | 9 | 22 | 29 | ||||||||||||||
Charges for impairment of assets | — | 1 | — | 14 | 1 | ||||||||||||||
Net gain on dispositions of assets | (5 | ) | (9 | ) | (1,002 | ) | (30 | ) | (1,048 | ) | |||||||||
Foreign exchange transaction (gains) losses | (8 | ) | 20 | 13 | 41 | 15 | |||||||||||||
Change in: | |||||||||||||||||||
Receivables less allowances | (10 | ) | (15 | ) | 20 | (41 | ) | (28 | ) | ||||||||||
Receivable for taxes | 12 | (3 | ) | 13 | 11 | 77 | |||||||||||||
Inventories | 42 | 6 | 8 | (9 | ) | (46 | ) | ||||||||||||
Real estate and land | — | — | (26 | ) | — | (133 | ) | ||||||||||||
Prepaid expenses | 9 | — | 6 | (2 | ) | 6 | |||||||||||||
Accounts payable and accrued liabilities | 66 | (22 | ) | 21 | (47 | ) | (76 | ) | |||||||||||
Deposits on land positions and other assets | — | — | 7 | — | 15 | ||||||||||||||
Pension and postretirement contributions | (19 | ) | (20 | ) | (22 | ) | (59 | ) | (85 | ) | |||||||||
Other | (5 | ) | 4 | (13 | ) | (12 | ) | (33 | ) | ||||||||||
Net cash from operations | 366 | 282 | 353 | 725 | 784 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Property and equipment | (99 | ) | (106 | ) | (105 | ) | (276 | ) | (239 | ) | |||||||||
Timberlands reforestation | (9 | ) | (6 | ) | (7 | ) | (33 | ) | (32 | ) | |||||||||
Acquisition of timberlands | — | (2 | ) | — | (34 | ) | — | ||||||||||||
Net proceeds from Real Estate Divestiture, net of cash divested | — | — | 707 | — | 707 | ||||||||||||||
Proceeds from sale of assets | 4 | 1 | 4 | 7 | 24 | ||||||||||||||
Other | 12 | — | 25 | 12 | 25 | ||||||||||||||
Cash from investing activities | (92 | ) | (113 | ) | 624 | (324 | ) | 485 | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt | — | — | — | — | 887 | ||||||||||||||
Deposit of WRECO debt proceeds into escrow | — | — | — | — | (887 | ) | |||||||||||||
Cash dividends on common shares | (149 | ) | (159 | ) | (154 | ) | (460 | ) | (411 | ) | |||||||||
Cash dividends on preference shares | (11 | ) | (11 | ) | (11 | ) | (22 | ) | (22 | ) | |||||||||
Change in book overdrafts | — | — | (11 | ) | — | (17 | ) | ||||||||||||
Exercises of stock options | 4 | 4 | 30 | 29 | 84 | ||||||||||||||
Repurchase of common stock | (154 | ) | (77 | ) | (123 | ) | (484 | ) | (123 | ) | |||||||||
Other | (1 | ) | 1 | 4 | 4 | 5 | |||||||||||||
Cash from financing activities | (311 | ) | (242 | ) | (265 | ) | (933 | ) | (484 | ) | |||||||||
Net change in cash and cash equivalents | (37 | ) | (73 | ) | 712 | (532 | ) | 785 | |||||||||||
Cash and cash equivalents at beginning of period | 1,158 | 1,121 | 908 | 1,580 | 835 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1,121 | $ | 1,048 | $ | 1,620 | $ | 1,048 | $ | 1,620 | |||||||||
Cash paid (received) during the year for: | |||||||||||||||||||
Interest, net of amount capitalized | $ | 58 | $ | 118 | $ | 100 | $ | 290 | $ | 253 | |||||||||
Income taxes | $ | 4 | $ | (1 | ) | $ | 5 | $ | 4 | $ | (40 | ) | |||||||
Noncash investing and financing activity: | |||||||||||||||||||
Common shares tendered in WRECO divestiture | $ | — | $ | — | $ | 1,954 | $ | — | $ | 1,954 | |||||||||
Page 3 of 8
Weyerhaeuser Company | Total Company Statistics | ||||||||||||||||||
Q3.2015 Analyst Package | |||||||||||||||||||
Preliminary results (unaudited) | |||||||||||||||||||
Special Items Included in Net Earnings | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 133 | $ | 180 | $ | 1,153 | $ | 403 | $ | 1,616 | |||||||||
Restructuring, impairments and other charges | — | — | 6 | 9 | 24 | ||||||||||||||
Gain on sale of non-strategic asset | — | — | — | — | (14 | ) | |||||||||||||
Gain on postretirement plan amendment | — | — | (15 | ) | — | (73 | ) | ||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders before special items | 133 | 180 | 1,144 | 412 | 1,553 | ||||||||||||||
Earnings from discontinued operations, net of income taxes | — | — | (966 | ) | — | (998 | ) | ||||||||||||
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items | $ | 133 | $ | 180 | $ | 178 | $ | 412 | $ | 555 | |||||||||
Q2 | Q3 | Year-to-date | |||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders | $ | 0.26 | $ | 0.35 | $ | 2.15 | $ | 0.77 | $ | 2.83 | |||||||||
Restructuring, impairments and other charges | — | — | 0.01 | 0.02 | 0.04 | ||||||||||||||
Gain on sale of non-strategic asset | — | — | — | — | (0.02 | ) | |||||||||||||
Gain on postretirement plan amendment | — | — | (0.03 | ) | — | (0.13 | ) | ||||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items | 0.26 | 0.35 | 2.13 | 0.79 | 2.72 | ||||||||||||||
Earnings from discontinued operations, net of income taxes | — | — | (1.80 | ) | — | (1.75 | ) | ||||||||||||
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items | $ | 0.26 | $ | 0.35 | $ | 0.33 | $ | 0.79 | $ | 0.97 | |||||||||
Selected Total Company Items | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
June 30, 2015 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||
Depreciation, depletion and amortization: | |||||||||||||||||||
Cost of products sold | $ | 116 | $ | 116 | $ | 117 | $ | 350 | $ | 351 | |||||||||
Selling, general and administrative expenses | 2 | 2 | 6 | 9 | 17 | ||||||||||||||
Total depreciation, depletion and amortization | $ | 118 | $ | 118 | $ | 123 | $ | 359 | $ | 368 | |||||||||
Pension and postretirement costs: | |||||||||||||||||||
Pension and postretirement costs allocated to business segments | $ | 14 | $ | 13 | $ | 11 | $ | 40 | $ | 33 | |||||||||
Pension and postretirement credits not allocated | (3 | ) | (2 | ) | (12 | ) | (8 | ) | (33 | ) | |||||||||
Total company pension and postretirement costs | $ | 11 | $ | 11 | $ | (1 | ) | $ | 32 | $ | — | ||||||||
Total decrease (increase) in working capital(1) | $ | 161 | $ | (79 | ) | $ | 106 | $ | (25 | ) | $ | (15 | ) | ||||||
Cash spent for capital expenditures | $ | (108 | ) | $ | (112 | ) | $ | (112 | ) | $ | (309 | ) | $ | (267 | ) | ||||
(1) Working capital does not include cash balances. | |||||||||||||||||||
Page 4 of 8
Weyerhaeuser Company | Timberlands Segment | |||||||||||||||||||
Q3.2015 Analyst Package | ||||||||||||||||||||
Preliminary results (unaudited) | ||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Sales to unaffiliated customers | $ | 336 | $ | 326 | $ | 364 | $ | 1,013 | $ | 1,138 | ||||||||||
Intersegment sales | 187 | 210 | 218 | 625 | 642 | |||||||||||||||
Total net sales | 523 | 536 | 582 | 1,638 | 1,780 | |||||||||||||||
Cost of products sold | 385 | 401 | 432 | 1,191 | 1,262 | |||||||||||||||
Gross margin | 138 | 135 | 150 | 447 | 518 | |||||||||||||||
Selling expenses | 1 | 1 | 2 | 4 | 6 | |||||||||||||||
General and administrative expenses | 21 | 21 | 23 | 64 | 72 | |||||||||||||||
Research and development expenses | 4 | 3 | 4 | 10 | 11 | |||||||||||||||
Charges for restructuring, closures and impairments | — | — | 1 | — | 1 | |||||||||||||||
Other operating income, net | (15 | ) | (16 | ) | (16 | ) | (46 | ) | (42 | ) | ||||||||||
Operating income | 127 | 126 | 136 | 415 | 470 | |||||||||||||||
Interest income and other | — | — | — | — | — | |||||||||||||||
Net contribution to earnings | $ | 127 | $ | 126 | $ | 136 | $ | 415 | $ | 470 | ||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Operating income | $ | 127 | $ | 126 | $ | 136 | $ | 415 | $ | 470 | ||||||||||
Depreciation, depletion and amortization | 51 | 51 | 51 | 155 | 154 | |||||||||||||||
Adjusted EBITDA* | $ | 178 | $ | 177 | $ | 187 | $ | 570 | $ | 624 | ||||||||||
* Non-GAAP measure - see page 8 for definition. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Total decrease (increase) in working capital(1) | $ | 52 | $ | (12 | ) | $ | 25 | $ | 14 | $ | (19 | ) | ||||||||
Cash spent for capital expenditures | $ | (17 | ) | $ | (17 | ) | $ | (19 | ) | $ | (58 | ) | $ | (56 | ) | |||||
(1) Working capital does not include cash balances. | ||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | ||||||||||||||||
Third Party Net Sales (millions) | Logs: | |||||||||||||||||||
West | $ | 221 | $ | 196 | $ | 227 | $ | 627 | $ | 745 | ||||||||||
South | 58 | 64 | 69 | 180 | 191 | |||||||||||||||
Canada | 3 | 6 | 5 | 17 | 12 | |||||||||||||||
Total logs | 282 | 266 | 301 | 824 | 948 | |||||||||||||||
Chip sales | 4 | 4 | 4 | 12 | 9 | |||||||||||||||
Timberlands exchanges | 5 | 12 | 17 | 42 | 49 | |||||||||||||||
Higher and better use land sales | 3 | 4 | 4 | 9 | 14 | |||||||||||||||
Minerals, oil and gas | 5 | 7 | 10 | 19 | 25 | |||||||||||||||
Products from international operations | 25 | 20 | 22 | 69 | 72 | |||||||||||||||
Other products | 12 | 13 | 6 | 38 | 21 | |||||||||||||||
Total | $ | 336 | $ | 326 | $ | 364 | $ | 1,013 | $ | 1,138 | ||||||||||
Logs Third Party Sales Realizations (per cubic meter) | West | $ | 94.70 | $ | 93.44 | $ | 102.23 | $ | 95.63 | $ | 108.64 | |||||||||
South | $ | 45.20 | $ | 45.96 | $ | 45.30 | $ | 45.51 | $ | 45.12 | ||||||||||
Canada | $ | 35.43 | $ | 35.50 | $ | 37.75 | $ | 35.15 | $ | 36.65 | ||||||||||
International | $ | 22.63 | $ | 18.71 | $ | 19.95 | $ | 20.29 | $ | 17.88 | ||||||||||
Logs Third Party Sales Volumes (cubic meters, thousands) | West | 2,330 | 2,104 | 2,223 | 6,554 | 6,859 | ||||||||||||||
South | 1,295 | 1,396 | 1,500 | 3,962 | 4,224 | |||||||||||||||
Canada | 75 | 159 | 152 | 479 | 338 | |||||||||||||||
International | 179 | 175 | 170 | 504 | 456 | |||||||||||||||
Total | 3,879 | 3,834 | 4,045 | 11,499 | 11,877 | |||||||||||||||
Logs Fee Harvest Volumes (cubic meters, thousands) | West | 2,811 | 2,666 | 2,656 | 8,388 | 8,419 | ||||||||||||||
South | 2,912 | 3,008 | 2,950 | 8,652 | 8,531 | |||||||||||||||
International | 219 | 200 | 232 | 658 | 730 | |||||||||||||||
Total | 5,942 | 5,874 | 5,838 | 17,698 | 17,680 | |||||||||||||||
Page 5 of 8
Weyerhaeuser Company | Wood Products Segment | |||||||||||||||||||
Q3.2015 Analyst Package | ||||||||||||||||||||
Preliminary results (unaudited) | ||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Sales to unaffiliated customers | $ | 1,004 | $ | 1,023 | $ | 1,048 | $ | 2,950 | $ | 3,023 | ||||||||||
Intersegment sales | 22 | 20 | 20 | 61 | 60 | |||||||||||||||
Total net sales | 1,026 | 1,043 | 1,068 | 3,011 | 3,083 | |||||||||||||||
Cost of products sold | 903 | 914 | 910 | 2,646 | 2,640 | |||||||||||||||
Gross margin | 123 | 129 | 158 | 365 | 443 | |||||||||||||||
Selling expenses | 23 | 23 | 22 | 69 | 70 | |||||||||||||||
General and administrative expenses | 26 | 21 | 31 | 74 | 98 | |||||||||||||||
Research and development expenses | 1 | 1 | — | 2 | 3 | |||||||||||||||
Charges for restructuring, closures and impairments | — | 1 | — | 1 | 2 | |||||||||||||||
Other operating costs (income), net | 2 | (2 | ) | — | 1 | (1 | ) | |||||||||||||
Operating income | 71 | 85 | 105 | 218 | 271 | |||||||||||||||
Interest income and other | — | — | — | — | — | |||||||||||||||
Net contribution to earnings | $ | 71 | $ | 85 | $ | 105 | $ | 218 | $ | 271 | ||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Operating income | $ | 71 | $ | 85 | $ | 105 | $ | 218 | $ | 271 | ||||||||||
Depreciation, depletion and amortization | 27 | 26 | 30 | 79 | 89 | |||||||||||||||
Adjusted EBITDA* | $ | 98 | $ | 111 | $ | 135 | $ | 297 | $ | 360 | ||||||||||
* Non-GAAP measure - see page 8 for definition. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Total decrease (increase) in working capital(1) | $ | 42 | $ | 23 | $ | 41 | $ | (34 | ) | $ | (67 | ) | ||||||||
Cash spent for capital expenditures | $ | (60 | ) | $ | (68 | ) | $ | (56 | ) | $ | (165 | ) | $ | (112 | ) | |||||
(1) Working capital does not include cash balances. | ||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
in millions, except for third-party sales realizations | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Structural Lumber (board feet) | Third party net sales | $ | 450 | $ | 455 | $ | 500 | $ | 1,339 | $ | 1,442 | |||||||||
Third party sales realizations | $ | 383 | $ | 372 | $ | 431 | $ | 385 | $ | 430 | ||||||||||
Third party sales volumes(1) | 1,175 | 1,224 | 1,162 | 3,474 | 3,357 | |||||||||||||||
Production volumes | 1,087 | 1,087 | 1,049 | 3,217 | 3,139 | |||||||||||||||
Outside purchase volumes | 98 | 92 | 91 | 279 | 251 | |||||||||||||||
Engineered Solid Section (cubic feet) | Third party net sales | $ | 113 | $ | 116 | $ | 104 | $ | 323 | $ | 308 | |||||||||
Third party sales realizations | $ | 2,032 | $ | 2,043 | $ | 2,031 | $ | 2,016 | $ | 1,989 | ||||||||||
Third party sales volumes(1) | 5.6 | 5.6 | 5.1 | 16 | 15.5 | |||||||||||||||
Production volumes | 5.6 | 5.2 | 5.2 | 15.8 | 15.8 | |||||||||||||||
Outside purchase volumes | — | — | — | — | 2.3 | |||||||||||||||
Engineered I-joists (lineal feet) | Third party net sales | $ | 76 | $ | 79 | $ | 74 | $ | 216 | $ | 214 | |||||||||
Third party sales realizations | $ | 1,502 | $ | 1,520 | $ | 1,540 | $ | 1,511 | $ | 1,489 | ||||||||||
Third party sales volumes(1) | 50 | 52 | 49 | 143 | 144 | |||||||||||||||
Production volumes | 48 | 50 | 50 | 141 | 149 | |||||||||||||||
Outside purchase volumes | 1 | 2 | 1 | 4 | 5 | |||||||||||||||
Oriented Strand Board (square feet 3/8') | Third party net sales | $ | 147 | $ | 151 | $ | 157 | $ | 435 | $ | 464 | |||||||||
Third party sales realizations | $ | 191 | $ | 194 | $ | 215 | $ | 194 | $ | 223 | ||||||||||
Third party sales volumes(1) | 771 | 778 | 732 | 2,249 | 2,079 | |||||||||||||||
Production volumes | 700 | 746 | 717 | 2,150 | 2,055 | |||||||||||||||
Outside purchase volumes | 82 | 77 | 52 | 223 | 156 | |||||||||||||||
Softwood Plywood (square feet 3/8') | Third party net sales | $ | 36 | $ | 33 | $ | 42 | $ | 102 | $ | 107 | |||||||||
Third party sales realizations | $ | 354 | $ | 330 | $ | 381 | $ | 349 | $ | 355 | ||||||||||
Third party sales volumes(1) | 101 | 100 | 110 | 290 | 302 | |||||||||||||||
Production volumes | 63 | 67 | 72 | 191 | 191 | |||||||||||||||
Outside purchase volumes | 27 | 27 | 31 | 91 | 100 | |||||||||||||||
(1) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. | ||||||||||||||||||||
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Weyerhaeuser Company | Cellulose Fibers Segment | |||||||||||||||||||
Q3.2015 Analyst Package | ||||||||||||||||||||
Preliminary results (unaudited) | ||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Total net sales | $ | 467 | $ | 471 | $ | 503 | $ | 1,385 | $ | 1,454 | ||||||||||
Cost of products sold | 417 | 371 | 427 | 1,182 | 1,198 | |||||||||||||||
Gross margin | 50 | 100 | 76 | 203 | 256 | |||||||||||||||
Selling expenses | 4 | 3 | 3 | 10 | 11 | |||||||||||||||
General and administrative expenses | 17 | 16 | 18 | 50 | 58 | |||||||||||||||
Research and development expenses | 1 | 2 | 1 | 5 | 5 | |||||||||||||||
Other operating income, net | (6 | ) | (5 | ) | (6 | ) | (19 | ) | (23 | ) | ||||||||||
Operating income | 34 | 84 | 60 | 157 | 205 | |||||||||||||||
Interest income and other | (7 | ) | (5 | ) | (1 | ) | (18 | ) | (1 | ) | ||||||||||
Net contribution to earnings | $ | 27 | $ | 79 | $ | 59 | $ | 139 | $ | 204 | ||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Operating income | $ | 34 | $ | 84 | $ | 60 | $ | 157 | $ | 205 | ||||||||||
Depreciation, depletion and amortization | 38 | 39 | 39 | 116 | 116 | |||||||||||||||
Adjusted EBITDA* | $ | 72 | $ | 123 | $ | 99 | $ | 273 | $ | 321 | ||||||||||
* Non-GAAP measure - see page 8 for definition. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | |||||||||||||||
Total decrease (increase) in working capital(1) | $ | 6 | $ | (24 | ) | $ | 39 | $ | 22 | $ | 33 | |||||||||
Cash spent for capital expenditures | $ | (31 | ) | $ | (27 | ) | $ | (36 | ) | $ | (85 | ) | $ | (97 | ) | |||||
(1) Working capital does not include cash balances. | ||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | ||||||||||||||||
Pulp (air-dry metric tons) | Third party net sales (millions) | $ | 368 | $ | 383 | $ | 408 | $ | 1,111 | $ | 1,154 | |||||||||
Third party sales realizations | $ | 823 | $ | 818 | $ | 858 | $ | 831 | $ | 843 | ||||||||||
Third party sales volumes (thousands) | 448 | 468 | 474 | 1,337 | 1,368 | |||||||||||||||
Production volumes (thousands) | 422 | 477 | 465 | 1,341 | 1,391 | |||||||||||||||
Liquid Packaging Board (metric tons) | Third party net sales (millions) | $ | 84 | $ | 74 | $ | 80 | $ | 232 | $ | 247 | |||||||||
Third party sales realizations | $ | 1,218 | $ | 1,168 | $ | 1,307 | $ | 1,194 | $ | 1,275 | ||||||||||
Third party sales volumes (thousands) | 69 | 63 | 62 | 194 | 194 | |||||||||||||||
Production volumes (thousands) | 64 | 68 | 53 | 192 | 195 | |||||||||||||||
Page 7 of 8
Weyerhaeuser Company | Unallocated Items | ||||||||||||||||||
Q3.2015 Analyst Package | |||||||||||||||||||
Preliminary results (unaudited) | |||||||||||||||||||
Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses associated with financing and the elimination of intersegment profit in inventory and the LIFO reserve. | |||||||||||||||||||
Contribution to Earnings | |||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | ||||||||||||||
Unallocated corporate function expenses | $ | (7 | ) | $ | (4 | ) | $ | (3 | ) | $ | (20 | ) | $ | (17 | ) | ||||
Unallocated share-based compensation | 1 | 6 | 1 | 10 | (2 | ) | |||||||||||||
Unallocated pension & postretirement credits | 3 | 2 | 35 | 8 | 146 | ||||||||||||||
Foreign exchange gains (losses) | 9 | (20 | ) | (14 | ) | (40 | ) | (16 | ) | ||||||||||
Elimination of intersegment profit in inventory and LIFO | 18 | 3 | 12 | 9 | (8 | ) | |||||||||||||
Other | (13 | ) | (23 | ) | (14 | ) | (55 | ) | (23 | ) | |||||||||
Operating income (loss) | 11 | (36 | ) | 17 | (88 | ) | 80 | ||||||||||||
Interest income and other | 9 | 9 | 8 | 27 | 28 | ||||||||||||||
Net contribution to earnings from continuing operations(1) | $ | 20 | $ | (27 | ) | $ | 25 | $ | (61 | ) | $ | 108 | |||||||
(1) We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders’ interest. | |||||||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | ||||||||||||||
Operating income (loss) | $ | 11 | $ | (36 | ) | $ | 17 | $ | (88 | ) | $ | 80 | |||||||
Depreciation, depletion and amortization | 2 | 2 | 3 | 9 | 9 | ||||||||||||||
Non-operating pension and postretirement credits | (3 | ) | (2 | ) | (12 | ) | (8 | ) | (33 | ) | |||||||||
Special items | — | — | (15 | ) | 13 | (103 | ) | ||||||||||||
Adjusted EBITDA* | $ | 10 | $ | (36 | ) | $ | (7 | ) | $ | (74 | ) | $ | (47 | ) | |||||
* Non-GAAP measure - see below for definition. | |||||||||||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | ||||||||||||||
Gain on postretirement plan amendment | $ | — | $ | — | $ | 23 | $ | — | $ | 113 | |||||||||
Restructuring, impairments and other charges | — | — | (8 | ) | (13 | ) | (32 | ) | |||||||||||
Gain on sale of non-strategic asset | — | — | — | — | 22 | ||||||||||||||
Total | $ | — | $ | — | $ | 15 | $ | (13 | ) | $ | 103 | ||||||||
Unallocated Selected Items | |||||||||||||||||||
in millions | Q2.2015 | Q3.2015 | Q3.2014 | YTD.2015 | YTD.2014 | ||||||||||||||
Total decrease (increase) in working capital(1) | $ | 61 | $ | (66 | ) | $ | 1 | $ | (132 | ) | $ | 38 | |||||||
Cash spent for capital expenditures | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | ||||||
(1) Working capital does not include cash balances. | |||||||||||||||||||
*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. | |||||||||||||||||||
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