Report
Weyerhaeuser Co
220 Occidental Ave S
Phone: (206) 539-3000p:206 539-3000 SEATTLE, WA  98104-3120  United States Ticker: WYWY


Weyerhaeuser reports second quarter results


SEATTLE, July 31, 2020 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $72 million, or 10 cents per diluted share, on net sales of $1.6 billion. This compares with net earnings of $128 million, or 17 cents per diluted share, on net sales of $1.7 billion for the same period last year.

Weyerhaeuser Company logo. (PRNewsFoto/Weyerhaeuser Company)

View our earnings release and financial statements in a printer-friendly PDF.

Excluding a net after-tax charge of $5 million for special items, primarily related to the early extinguishment of debt, the company reported second quarter net earnings of $77 million, or 11 cents per diluted share. This compares with net earnings before special items of $123 million for the same period last year and $138 million for the first quarter of 2020.

Adjusted EBITDA for the second quarter of 2020 was $386 million compared with $343 million for the same period last year and $413 million for the first quarter of 2020.

"In the second quarter, we delivered strong results across each of our businesses despite the disruptive impacts of the COVID-19 pandemic," said Devin W. Stockfish, president and chief executive officer. "I am extremely proud of the dedication and focus of our teams as they safely adapted business practices, efficiently pivoted operating postures, and capitalized on operational excellence opportunities while navigating unprecedented fluctuations in market demand. This includes delivering record low cost performance in lumber despite significant production curtailments."

"These operational efforts, in conjunction with improving market conditions and our prior actions to enhance financial flexibility, enabled us to generate solid cash flow and strengthen our balance sheet. Entering the third quarter, U.S. housing activity is improving, but against a backdrop of rising COVID-19 infection rates and the rollback of certain economic reopening plans. We remain focused on operating safely and efficiently, effectively capitalizing on a full range of market conditions, and driving long-term value for our shareholders through disciplined, prudent capital allocation."

 

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2020


2020


2019

(millions, except per share data)


Q1


Q2


Q2

Net sales


$1,728


$1,631


$1,692

Net earnings


$150


$72


$128

Net earnings per diluted share


$0.20


$0.10


$0.17

Weighted average shares outstanding, diluted


747


747


746

Net earnings before special items(1)(2)


$138


$77


$123

Net earnings per diluted share before special items(1)


$0.18


$0.11


$0.16

Adjusted EBITDA(1)


$413


$386


$343



(1)

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, 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 adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.

(2)

Second quarter 2020 after-tax special items include an $11 million net charge related to the early extinguishment of debt and a $6 million benefit related to a product remediation insurance recovery. Special items for other periods presented are included in the reconciliation tables following this release.

 

TIMBERLANDS

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q1


Q2


Change

Net sales


$503


$480


($23)

Net contribution to pretax earnings


$105


$75


($30)

Adjusted EBITDA


$173


$140


($33)

Q2 2020 Performance – In the West, log sales volumes and average sales realizations were comparable to the first quarter, as lower volumes and realizations for domestic and Japan export logs were offset by improved China export volumes and realizations. Forestry and road spending was seasonally higher, and export costs increased. In the South, harvest volumes decreased approximately 4 percent and average sales realizations declined slightly due to mix. In the North, fee harvest volumes decreased seasonally due to spring breakup.

Q3 2020 Outlook –Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be lower than second quarter. In the West, the company anticipates slightly lower average log sales realizations and seasonally higher road, forestry, and per unit logging and hauling costs. The company expects higher average Western domestic log realizations, slightly lower export log realizations, and a higher proportion of domestic log sales compared with the second quarter. In the South, the company expects seasonally higher forestry expenses, decreased fee harvest volumes and slightly lower average log sales realizations, primarily due to mix.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q1


Q2


Change

Net sales


$112


$65


($47)

Net contribution to pretax earnings


$36


$19


($17)

Adjusted EBITDA


$101


$57


($44)

Q2 2020 Performance – The number of real estate acres sold decreased compared with the first quarter, and average price per acre declined due to the mix of properties sold. Average land basis as a percent of sales increased slightly due to mix. Energy & Natural Resources earnings and Adjusted EBITDA were comparable to the first quarter.

Q3 2020 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be comparable to the second quarter. The company now expects full year 2020 Adjusted EBITDA for the segment will be approximately $235 million, an increase from the $200 million previously expected.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q1


Q2


Change

Net sales


$1,235


$1,207


($28)

Net contribution to pretax earnings


$134


$159


$25

Pretax benefit for special items


$—


($8)


($8)

Net contribution to pretax earnings before special items


$134


$151


$17

Adjusted EBITDA


$184


$198


$14

Q2 2020 Performance – Market demand for wood products declined sharply in April due to the economic impact of COVID-19 but rebounded later in the quarter. In April, Weyerhaeuser reduced production volumes across its manufacturing facilities to align with customer demand. As the quarter progressed, the company dynamically adjusted operating rates in response to improving market conditions.

Average sales realizations for lumber increased 5 percent compared with the first quarter, and manufacturing costs improved across all product lines due to operational excellence and cost management initiatives. This was partially offset by lower sales volumes for most product lines.

Second quarter special items consist of an $8 million pretax benefit from product remediation insurance proceeds.

Q3 2020 Outlook –Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly higher than second quarter. To date, third quarter benchmark pricing for lumber and oriented strand board is significantly higher than the second quarter average. The company also anticipates increased sales volumes across most product lines.

UNALLOCATED

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q1


Q2


Change

Net charge to pretax earnings


($43)


($18)


$25

Pretax benefit for special items


($12)


$—


$12

Net charge to pretax earnings before special items


($55)


($18)


$37

Adjusted EBITDA


($45)


($9)


$36

Q2 2020 Performance – Second quarter results include a benefit from elimination of intersegment profit in inventory and LIFO compared with a charge in the first quarter. The second quarter benefit was due to lower end of quarter log and lumber inventory levels.

INCOME TAXES

FINANCIAL HIGHLIGHTS


2020


2020



(millions)


Q1


Q2


Change

Income tax (expense) benefit


$3


($60)


($63)

Income tax (expense) benefit attributable to special items


$—


($2)


($2)

Income tax (expense) benefit before special items


$3


($58)


($61)

Q2 2020 Performance – The provision for income taxes was a charge for second quarter, compared with a benefit for first quarter, as the company adjusted its estimated annual effective tax rate to reflect higher average sales realizations for lumber and oriented strand board.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands 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 in North America. Our company is a real estate investment trust. In 2019, we generated $6.6 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America 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 31, 2020 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 31, 2020.

To join the conference call from within North America, dial 855-223-0757 (access code: 3297624) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 3297624). Replays will be available for two weeks at 855-859-2056 (access code: 3297624) from within North America and at 404-537-3406 (access code: 3297624) 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, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log sale realizations and sales volumes; log export sales volumes; fee harvest volumes; road, forestry and logging and hauling costs; and sales volumes across all of our wood products lines. Forward-looking statements are generally identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar words and expressions. Forward-looking statements are based on our current expectations and assumptions. 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, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
  • the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
  • market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
  • changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
  • restrictions on international trade and tariffs imposed on imports or exports;
  • the availability and cost of shipping and transportation;
  • economic activity in Asia, especially Japan and China;
  • performance of our manufacturing operations, including maintenance and capital requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • our operational excellence 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;
  • raw material availability and prices;
  • the effect of weather;
  • changes in global or regional climate conditions and governmental response to such changes;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • 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 employee retirements and changes in the market price of our common stock on charges for share-based compensation;
  • the accuracy of our estimates of costs and expenses related to contingent liabilities;
  • changes in accounting principles; and
  • other risks and uncertainties identified in our 2019 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.

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.

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) 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, 2020:

 

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

150


Interest expense, net of capitalized interest



















85


Income taxes



















(3)


Net contribution (charge) to earnings


$

105



$

36



$

134



$

(43)



$

232


Non-operating pension and other postretirement benefit costs












9




9


Interest income and other












(1)




(1)


Operating income (loss)



105




36




134




(35)




240


Depreciation, depletion and amortization



68




3




50




2




123


Basis of real estate sold






62










62


Special items included in operating income (loss)(1)












(12)




(12)


Adjusted EBITDA


$

173



$

101



$

184



$

(45)



$

413




(1)

  Operating income (loss) includes a pretax special item consisting of a $12 million noncash legal benefit.

 

The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2020:

 

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

72


Interest expense, net of capitalized interest(1)



















103


Income taxes



















60


Net contribution (charge) to earnings


$

75



$

19



$

159



$

(18)



$

235


Non-operating pension and other postretirement benefit costs












10




10


Interest income and other












(2)




(2)


Operating income (loss)



75




19




159




(10)




243


Depreciation, depletion and amortization



65




4




47




1




117


Basis of real estate sold






34










34


Special items included in operating income (loss)(2)









(8)







(8)


Adjusted EBITDA


$

140



$

57



$

198



$

(9)



$

386




(1)

Interest expense, net of capitalized interest includes a pretax special item consisting of an $11 million net charge related to the early extinguishment of debt.

(2)

Operating income (loss) includes a pretax special item consisting of an $8 million product remediation insurance recovery.

 

The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2019:

 

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

128


Interest expense, net of capitalized interest



















91


Income taxes



















(37)


Net contribution (charge) to earnings


$

102



$

35



$

81



$

(36)



$

182


Non-operating pension and other postretirement benefit costs(1)












10




10


Interest income and other












(6)




(6)


Operating income (loss)



102




35




81




(32)




186


Depreciation, depletion and amortization



73




3




47




1




124


Basis of real estate sold






33










33


Adjusted EBITDA


$

175



$

71



$

128



$

(31)



$

343


(1)

Non-operating pension and other postretirement benefit costs include a pretax special item consisting of a $6 million benefit from finalizing the noncash settlement charge incurred in first quarter 2019 related to the transfer of pension assets and liabilities through the purchase of a group annuity contract.

 

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings:



2020


2020


2019

(millions)


Q1


Q2


Q2

Net earnings


$150


$72


$128

Early extinguishment of debt charge



11


Legal benefit


(12)



Pension settlement benefit




(5)

Product remediation recovery



(6)


Net earnings before special items


$138


$77


$123

 

The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:



2020


2020


2019



Q1


Q2


Q2

Net earnings per diluted share


$0.20


$0.10


$0.17

Early extinguishment of debt charge



0.02


Legal benefit


(0.02)



Pension settlement benefit




(0.01)

Product remediation recovery



(0.01)


Net earnings per diluted share before special items


$0.18


$0.11


$0.16

 

                                                                                                                                                                                         

Exhibit 99.2

Weyerhaeuser Company                                                                                                                                                                                                                       

Q2.2020 Analyst Package      

Preliminary results (unaudited)

Consolidated Statement of Operations




Q1



Q2



Year-to-Date


in millions


March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Net sales


$

1,728



$

1,631



$

1,692



$

3,359



$

3,335


Costs of sales



1,382




1,283




1,390




2,665




2,712


Gross margin



346




348




302




694




623


Selling expenses



22




18




21




40




42


General and administrative expenses



74




84




80




158




169


Other operating costs (income), net



10




3




15




13




52


Operating income



240




243




186




483




360


Non-operating pension and other postretirement benefit costs



(9)




(10)




(10)




(19)




(480)


Interest income and other



1




2




6




3




16


Interest expense, net of capitalized interest



(85)




(103)




(91)




(188)




(198)


Earnings (loss) before income taxes



147




132




91




279




(302)


Income taxes



3




(60)




37




(57)




141


Net earnings (loss)


$

150



$

72



$

128



$

222



$

(161)


 

Per Share Information




Q1



Q2



Year-to-Date




March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Earnings (loss) per share, basic and diluted


$

0.20



$

0.10



$

0.17



$

0.30



$

(0.22)


Dividends paid per common share


$

0.34



$



$

0.34



$

0.34



$

0.68


Weighted average shares outstanding (in thousands):





















Basic



746,534




746,896




745,486




746,715




746,041


Diluted



747,155




746,984




746,232




747,070




746,041


Common shares outstanding at end of period (in thousands)



746,206




746,251




744,905




746,251




744,905


 


Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)




Q1



Q2



Year-to-Date


in millions


March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Net earnings (loss)


$

150



$

72



$

128



$

222



$

(161)


Non-operating pension and other postretirement benefit costs



9




10




10




19




480


Interest income and other



(1)




(2)




(6)




(3)




(16)


Interest expense, net of capitalized interest



85




103




91




188




198


Income taxes



(3)




60




(37)




57




(141)


Operating income



240




243




186




483




360


Depreciation, depletion and amortization



123




117




124




240




247


Basis of real estate sold



62




34




33




96




81


Special items included in operating income



(12)




(8)







(20)




20


Adjusted EBITDA(1)


$

413



$

386



$

343



$

799



$

708




(1) 

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 adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. 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.

 

Total Company Statistics

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)




Q1



Q2



Year-to-Date


in millions


March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Net earnings (loss)


$

150



$

72



$

128



$

222



$

(161)


Early extinguishment of debt charges(1)






11







11




9


Legal charge (benefit)



(12)










(12)




15


Pension settlement charges









(5)







340


Product remediation recovery






(6)







(6)





Net earnings before special items(2)


$

138



$

77



$

123



$

215



$

203


 



Q1



Q2



Year-to-Date




March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Net earnings (loss) per diluted share


$

0.20



$

0.10



$

0.17



$

0.30



$

(0.22)


Early extinguishment of debt charges(1)






0.02







0.02




0.01


Legal charge (benefit)



(0.02)










(0.02)




0.02


Pension settlement charges









(0.01)







0.46


Product remediation recovery






(0.01)







(0.01)





Net earnings per diluted share before special items(2)


$

0.18



$

0.11



$

0.16



$

0.29



$

0.27




(1)  

We recorded pretax charges of $12 million ($9 million after-tax) and $11 million ($11 million after-tax) related to the early extinguishment of debt in first quarter 2019 and second quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

(2)  

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Selected Total Company Items




Q1



Q2



Year-to-Date


in millions


March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Pension and postretirement costs:





















Pension and postretirement service costs


$

10



$

8



$

8



$

18



$

16


Non-operating pension and other postretirement benefit costs



9




10




10




19




480


Total company pension and postretirement costs


$

19



$

18



$

18



$

37



$

496



 

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet


in millions


March 31,

2020



June 30,

2020



December 31,

2019


ASSETS













Current assets:













Cash and cash equivalents


$

1,458



$

643



$

139


Receivables, net



390




420




309


Receivables for taxes



24




48




98


Inventories



480




409




416


Assets held for sale









140


Prepaid expenses and other current assets



141




131




147


Current restricted financial investments held by variable interest entities









362


Total current assets



2,493




1,651




1,611


Property and equipment, net



1,911




1,958




1,969


Construction in progress



153




110




130


Timber and timberlands at cost, less depletion



11,847




11,780




11,929


Minerals and mineral rights, less depletion



278




275




281


Deferred tax assets



147




65




72


Other assets



399




415




414


Total assets


$

17,228



$

16,254



$

16,406















LIABILITIES AND EQUITY













Current liabilities:













Current maturities of long-term debt


$

577



$



$


Borrowings on line of credit



550







230


Accounts payable



241




199




246


Accrued liabilities



448




525




530


Total current liabilities



1,816




724




1,006


Long-term debt, net



6,299




6,299




6,147


Deferred tax liabilities



10




18




6


Deferred pension and other postretirement benefits



669




652




693


Other liabilities



352




359




377


Total liabilities



9,146




8,052




8,229


Total equity



8,082




8,202




8,177


Total liabilities and equity


$

17,228



$

16,254



$

16,406


 

 

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)


Consolidated Statement of Cash Flows




Q1



Q2



Year-to-Date


in millions


March 31,

2020



June 30,

2020



June 30,

2019



June 30,

2020



June 30,

2019


Cash flows from operations:





















Net earnings (loss)


$

150



$

72



$

128



$

222



$

(161)


Noncash charges (credits) to earnings (loss):





















Depreciation, depletion and amortization



123




117




124




240




247


Basis of real estate sold



62




34




33




96




81


Deferred income taxes, net



(82)




80




(43)




(2)




(166)


Pension and other postretirement benefits



19




18




18




37




496


Share-based compensation expense



7




8




7




15




16


Change in:





















Receivables, less allowances



(82)




(30)




(10)




(112)




(87)


Receivables and payables for taxes



79




(18)




6




61




(25)


Inventories



(72)




74




28




2




(32)


Prepaid expenses and other current assets



(2)




7




8




5




3


Accounts payable and accrued liabilities



(91)




30




127




(61)




45


Pension and postretirement benefit contributions and payments



(10)




(6)




(13)




(16)




(27)


Other



(15)




5




(17)




(10)




(8)


Net cash from operations


$

86



$

391



$

396



$

477



$

382


Cash flows from investing activities:





















Capital expenditures for property and equipment


$

(47)



$

(55)



$

(71)



$

(102)



$

(112)


Capital expenditures for timberlands reforestation



(21)




(11)




(13)




(32)




(31)


Proceeds from note receivable held by variable interest entities



362










362




253


Proceeds from sale of nonstrategic timberlands



145










145





Other



2




1




1




3




19


Net cash from investing activities


$

441



$

(65)



$

(83)



$

376



$

129


Cash flows from financing activities:





















Cash dividends on common shares


$

(254)



$



$

(253)



$

(254)



$

(507)


Net proceeds from issuance of long-term debt



732










732




739


Payments of long-term debt






(588)







(588)




(512)


Proceeds from borrowings on line of credit



550







140




550




385


Payments on line of credit



(230)




(550)




(245)




(780)




(670)


Proceeds from exercise of stock options



6







2




6




4


Repurchases of common shares















(60)


Other



(12)




(3)




(4)




(15)




(12)


Net cash from financing activities


$

792



$

(1,141)



$

(360)



$

(349)



$

(633)























Net change in cash and cash equivalents


$

1,319



$

(815)



$

(47)



$

504



$

(122)


Cash and cash equivalents at beginning of period



139




1,458




259




139




334


Cash and cash equivalents at end of period


$

1,458



$

643



$

212



$

643



$

212























Cash paid (received) during the period for:





















Interest, net of amounts capitalized


$

108



$

70



$

60



$

178



$

187


Income taxes, net of refunds


$



$

1



$

1



$

1



$

51


 


Timberlands Segment

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Sales to unaffiliated customers


$

381



$

359



$

401



$

740



$

832


Intersegment sales



122




121




131




243




256


Total net sales



503




480




532




983




1,088


Costs of sales



375




383




405




758




818


Gross margin



128




97




127




225




270


Selling expenses






1







1




1


General and administrative expenses



24




22




25




46




47


Other operating income, net



(1)




(1)







(2)





Operating income and Net contribution to earnings


$

105



$

75



$

102



$

180



$

222


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Operating income


$

105



$

75



$

102



$

180



$

222


Depreciation, depletion and amortization



68




65




73




133




146


Adjusted EBITDA(1)


$

173



$

140



$

175



$

313



$

368




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Selected Segment Items

in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Total decrease (increase) in working capital(2)


$

(3)



$

(2)



$

46



$

(5)



$

22


Cash spent for capital expenditures


$

(30)



$

(21)



$

(25)



$

(51)



$

(51)




(2)

Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

 


Segment Statistics(3)






Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Third Party


Delivered logs:





















Net Sales


West


$

177



$

179



$

194



$

356



$

399


(millions)


South



150




145




156




295




315




North



17




7




17




24




46




Total delivered logs



344




331




367




675




760




Stumpage and pay-as-cut timber



5




5




10




10




19




Recreational and other lease revenue



15




16




15




31




30




Other revenue



17




7




9




24




23




Total


$

381



$

359



$

401



$

740



$

832


Delivered Logs


West


$

104.91



$

104.90



$

104.07



$

104.91



$

105.52


Third Party Sales


South


$

34.27



$

33.68



$

35.45



$

33.97



$

35.40


Realizations (per ton)


North


$

60.51



$

59.82



$

62.10



$

60.31



$

60.52


Delivered Logs


West



1,684




1,714




1,864




3,398




3,784


Third Party Sales


South



4,365




4,307




4,400




8,672




8,899


Volumes (tons, thousands)


North



284




113




263




397




757


Fee Harvest Volumes


West



2,310




2,236




2,455




4,546




4,840


(tons, thousands)


South



6,130




5,914




6,367




12,044




12,859




North



386




194




378




580




1,005




(3) 

Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Net sales


$

112



$

65



$

81



$

177



$

199


Costs of sales



70




40




39




110




95


Gross margin



42




25




42




67




104


General and administrative expenses



6




6




7




12




14


Operating income and Net contribution to earnings


$

36



$

19



$

35



$

55



$

90


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Operating income


$

36



$

19



$

35



$

55



$

90


Depreciation, depletion and amortization



3




4




3




7




6


Basis of real estate sold



62




34




33




96




81


Adjusted EBITDA(1)


$

101



$

57



$

71



$

158



$

177




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Selected Segment Items


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Cash spent for capital expenditures


$



$



$



$



$























 

Segment Statistics





Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Net Sales

Real Estate


$

95



$

48



$

59



$

143



$

155


(millions)

Energy and Natural Resources



17




17




22




34




44



Total


$

112



$

65



$

81



$

177



$

199


Acres Sold

Real Estate



44,974




31,337




47,031




76,310




85,865


Price per Acre

Real Estate


$

1,992



$

1,501



$

1,063



$

1,790



$

1,678


Basis as a Percent of

Real Estate Net Sales

Real Estate



65

%



71

%



56

%



67

%



52

%

 

 

Wood Products Segment

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Net sales


$

1,235



$

1,207



$

1,210



$

2,442



$

2,304


Costs of sales



1,040




997




1,070




2,037




2,037


Gross margin



195




210




140




405




267


Selling expenses



21




18




20




39




39


General and administrative expenses



36




33




34




69




69


Other operating costs, net



4







5




4




9


Operating income and Net contribution to earnings


$

134



$

159



$

81



$

293



$

150


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Operating income


$

134



$

159



$

81



$

293



$

150


Depreciation, depletion and amortization



50




47




47




97




93


Special items






(8)







(8)





Adjusted EBITDA(1)


$

184



$

198



$

128



$

382



$

243




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Segment Special Items Included in Net Contribution to Earnings (Pretax)


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Product remediation recovery


$



$

8



$



$

8



$























 

Selected Segment Items


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Total decrease (increase) in working capital(2)


$

(186)



$

56



$

75



$

(130)



$

(80)


Cash spent for capital expenditures


$

(38)



$

(45)



$

(53)



$

(83)



$

(83)




(2) 

Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

Segment Statistics


in millions, except for third party sales realizations


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Structural Lumber

Third party net sales


$

508



$

538



$

495



$

1,046



$

939


(volumes presented

Third party sales realizations


$

416



$

438



$

388



$

427



$

390


in board feet)

Third party sales volumes(3)



1,222




1,225




1,274




2,447




2,407



Production volumes



1,209




1,108




1,193




2,317




2,338


Oriented Strand

Third party net sales


$

190



$

179



$

156



$

369



$

316


Board

Third party sales realizations


$

246



$

240



$

213



$

243



$

218


(volumes presented

Third party sales volumes(3)



770




747




733




1,517




1,450


in square feet 3/8")

Production volumes



777




742




736




1,519




1,465


Engineered Solid

Third party net sales


$

127



$

111



$

134



$

238



$

250


Section

Third party sales realizations


$

2,149



$

2,151



$

2,214



$

2,150



$

2,216


(volumes presented

Third party sales volumes(3)



5.9




5.2




6.1




11.1




11.3


in cubic feet)

Production volumes



6.1




5.3




6.0




11.4




11.9


Engineered

Third party net sales


$

78



$

70



$

86



$

148



$

156


I-joists

Third party sales realizations


$

1,667



$

1,645



$

1,662



$

1,656



$

1,683


(volumes presented

Third party sales volumes(3)



47




42




52




89




93


in lineal feet)

Production volumes



47




38




47




85




91


Softwood Plywood

Third party net sales


$

39



$

34



$

44



$

73



$

88


(volumes presented

Third party sales realizations


$

348



$

356



$

380



$

352



$

382


in square feet 3/8")

Third party sales volumes(3)



113




95




115




208




230



Production volumes



97




76




104




173




202


Medium Density

Third party net sales


$

44



$

33



$

45



$

77



$

83


Fiberboard

Third party sales realizations


$

841



$

825



$

833



$

834



$

839


(volumes presented

Third party sales volumes(3)



52




40




55




92




99


in square feet 3/4")

Production volumes



56




35




61




91




106




(3)

Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

 

Unallocated Items

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)


Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.


Net Charge to Earnings


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Unallocated corporate function and variable compensation expense


$

(19)



$

(23)



$

(12)



$

(42)



$

(31)


Liability classified share-based compensation



10




(4)







6




(4)


Foreign exchange gain (loss)



(8)




3




2




(5)




(1)


Elimination of intersegment profit in inventory and LIFO



(13)




18




(5)




5




(10)


Other, net



(5)




(4)




(17)




(9)




(56)


Operating income (loss)



(35)




(10)




(32)




(45)




(102)


Non-operating pension and other postretirement benefit costs



(9)




(10)




(10)




(19)




(480)


Interest income and other



1




2




6




3




16


Net charge to earnings


$

(43)



$

(18)



$

(36)



$

(61)



$

(566)


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Operating income (loss)


$

(35)



$

(10)



$

(32)



$

(45)



$

(102)


Depreciation, depletion and amortization



2




1




1




3




2


Special items



(12)










(12)




20


Adjusted EBITDA(1)


$

(45)



$

(9)



$

(31)



$

(54)



$

(80)




(1)

See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Unallocated Special Items Included in Net Charge to Earnings (Pretax)


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Legal benefit (charge)



12










12




(20)


Special items included in operating income (loss)



12










12




(20)


Pension settlement charges









6







(449)


Special items included in net charge to earnings


$

12



$



$

6



$

12



$

(469)


 

Unallocated Selected Items


in millions


Q1.2020



Q2.2020



Q2.2019



YTD.2020



YTD.2019


Cash spent for capital expenditures


$



$



$

(6)



$



$

(9)























 

For more information contact:
Analysts - Beth Baum, 206-539-3907
Media - Nancy Thompson, 919-861-0342

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/weyerhaeuser-reports-second-quarter-results-301103675.html

SOURCE Weyerhaeuser Company


Related Businesses
- - Customer

Copyright © 2020 by CreditRiskMonitor.com (Ticker: CRMZ®). All rights reserved.  You are not permitted to use this report or the information contained herein for any purpose not expressly permitted by CreditRiskMonitor.com, Inc. Except as expressly permitted by CreditRiskMonitor.com, Inc., you are not permitted, in whole or in part, to copy, alter, correct, adapt, translate, enhance, lease, sell, sublicense, assign, distribute, publish, otherwise make available to any third party, or prepare derivative works or improvements of this report or any of the information contained therein. You are not permitted to reverse engineer, disassemble, decompile, decode, or adapt the software, algorithms or other processes used to prepare this report, or otherwise attempt to derive or gain access to the source code of same. You agree not to remove, alter, obscure, combine or otherwise change any disclaimers, trademarks, copyrights, other intellectual property rights, proprietary rights, or other symbols, notices, marks, or serial numbers on or relating to any copy of the report or on marketing or other materials that CreditRiskMonitor.com, Inc. may provide to you. You will not use this report in any manner or for any purpose that infringes, misappropriates, or otherwise violates any right of any party, or that violates any applicable law.  
The FRISK® scores, agency ratings, credit limit recommendations and other scores, analysis and commentary are opinions of CreditRiskMonitor.com, Inc. and/or its suppliers, not statements of fact, and should be one of several factors in making credit decisions.  Any reliance you place on the information in this report is strictly at your own risk. Except as expressly provided by CreditRiskMonitor.com, Inc., no warranties or representations of any type, including without limitation of results to be obtained, merchantability or fitness for a particular purpose, are made concerning any part of CreditRiskMonitor.com, Inc.’s service, including without limitation the FRISK® scores.  The information published above has been obtained from sources CreditRiskMonitor considers to be reliable.  CreditRiskMonitor.com, Inc. and its third-party suppliers do not guarantee or validate the accuracy and completeness of the information provided in this report, the underlying information input to create the FRISK® scores, and specifically do not assume responsibility for not reporting any information omitted or withheld.  By using this website, you accept the Terms of Use Agreement
Contact Us: 845.230.3000
Fundamental financial data concerning public companies may be provided by Refinitiv (click for restrictions)
Friday, August 14, 2020