Weyerhaeuser reports fourth quarter, full year results
SEATTLE, Feb. 2, 2018 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings of $271 million or 36 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings from continuing operations of $62 million, or 8 cents per diluted share, on net sales of $1.6 billion for the same period last year.
Excluding a net after-tax benefit of $37 million from special items, the company reported net earnings of $234 million or 31 cents per diluted share. This compares with net earnings from continuing operations before special items of $106 million for the same period last year and $259 million for third quarter 2017.
For the full year 2017, Weyerhaeuser reported net earnings of $582 million, or 77 cents per diluted share, on net sales of $7.2 billion. This compares with net earnings from continuing operations of $415 million on net sales of $6.4 billion for the same period last year.
Full year 2017 includes net after-tax charges of $290 million from special items. Excluding these items, the company reported net earnings from continuing operations before special items of $872 million, or $1.15 per diluted share. This compares with net earnings from continuing operations before special items of $534 million for the full year 2016.
"2017 was a year of strong financial and operational performance for Weyerhaeuser. We increased Adjusted EBITDA by over 30 percent to $2.1 billion, generated over $1 billion of EBITDA from Wood Products, achieved all targets for operational excellence, merger cost synergies and overhead cost reduction, and raised our dividend," said Doyle R. Simons, president and chief executive officer. "We also further simplified and optimized our portfolio by divesting our Uruguay operations, exiting the Twin Creeks joint venture and selling 100,000 acres of Southern timberland for collective proceeds of over $700 million. Going forward, we expect continued growth in the U.S. housing market and we remain relentlessly focused on improving performance through operational excellence, fully capitalizing on strengthening market conditions, and driving value for shareholders through disciplined capital allocation."
|
WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2017 |
2017 |
2016 |
2017 |
2016 | ||||||||||||||
|
(millions, except per share data) |
Q3 |
Q4 |
Q4 |
Full Year | |||||||||||||||
|
Net sales |
$ |
1,872 |
$ |
1,823 |
$ |
1,596 |
$ |
7,196 |
$ |
6,365 |
|||||||||
|
Earnings from continuing operations |
$ |
130 |
$ |
271 |
$ |
62 |
$ |
582 |
$ |
415 |
|||||||||
|
Net earnings attributable to Weyerhaeuser common shareholders |
$ |
130 |
$ |
271 |
$ |
551 |
$ |
582 |
$ |
1,005 |
|||||||||
|
Earnings per diluted share from continuing operations |
$ |
0.17 |
$ |
0.36 |
$ |
0.08 |
$ |
0.77 |
$ |
0.55 |
|||||||||
|
Net earnings per diluted share |
$ |
0.17 |
$ |
0.36 |
$ |
0.73 |
$ |
0.77 |
$ |
1.39 |
|||||||||
|
Weighted average shares outstanding, diluted(1) |
757 |
758 |
753 |
757 |
722 |
||||||||||||||
|
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(2) |
$ |
259 |
$ |
234 |
$ |
106 |
$ |
872 |
$ |
534 |
|||||||||
|
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items |
$ |
0.34 |
$ |
0.31 |
$ |
0.14 |
$ |
1.15 |
$ |
0.75 |
|||||||||
|
Adjusted EBITDA(3) |
$ |
569 |
$ |
551 |
$ |
400 |
$ |
2,080 |
$ |
1,583 |
|||||||||
|
(1) During 2016, Weyerhaeuser issued approximately 279 million common shares in connection with the Plum Creek merger, issued 23 million common shares to effect the conversion of its mandatory convertible preference shares, and repurchased approximately 68 million common shares under the company's repurchase authorization program put in place in connection with the Plum Creek merger transaction. | |||||||||||||||||||
|
(2) Fourth quarter 2017 after-tax special items include a $99 million gain on the sale of Southern timberlands, charges of $52 million for tax adjustments including enactment of tax legislation, $31 million for product remediation, $26 million for environmental remediation insurance recoveries, $12 million for Plum Creek merger-related costs, and a $7 million net benefit from an adjustment to accrued countervailing and antidumping duties on softwood lumber. Full year 2017 includes $290 million of after-tax special charges, primarily for product remediation and impairment of Uruguay operations. Full year 2016 includes after-tax special charges of $141 million, primarily for Plum Creek merger-related costs. Full year 2016 results also include a $612 million gain on the sale of the company's Cellulose Fiber businesses which is presented as discontinued operations. | |||||||||||||||||||
|
(3) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations, adjusted for depreciation, depletion, amortization, basis in real estate sold, 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 with this release. | |||||||||||||||||||
Weyerhaeuser merged with Plum Creek Timber Company, Inc. (Plum Creek) on February 19, 2016. The financial statements presented within this release do not include Plum Creek financial results for any period prior to the February 19, 2016 merger date.
During 2016, Weyerhaeuser sold its Cellulose Fibers businesses. Results for the Cellulose Fibers segment are presented as discontinued operations.
TIMBERLANDS
|
FINANCIAL HIGHLIGHTS (millions) |
3Q 2017 |
4Q 2017 |
Change | ||||||||
|
Net sales |
$ |
670 |
$ |
714 |
$ |
44 |
|||||
|
Contribution to pre-tax earnings |
$ |
131 |
$ |
265 |
$ |
134 |
|||||
|
Pre-tax benefit from special items |
$ |
— |
$ |
(99) |
$ |
(99) |
|||||
|
Contribution to pre-tax earnings before special items |
$ |
131 |
$ |
166 |
$ |
35 |
|||||
|
Adjusted EBITDA |
$ |
220 |
$ |
252 |
$ |
32 |
|||||
4Q 2017 Performance - In the West, fee harvest volumes increased and average realizations for domestic and export logs improved compared with the third quarter. In the South, fee harvest increased due to seasonally higher volumes and favorable weather, and average sales realizations were comparable to the prior quarter.
Fourth quarter includes a $99 million gain on the previously announced sale of 100,000 acres of Southern timberlands.
The company redeemed its ownership interest in the Twin Creeks Timber, LLC joint venture in October 2017. Fourth quarter results include no earnings contribution from operation of the joint venture.
1Q 2018 Outlook - Weyerhaeuser expects first quarter earnings before special items and Adjusted EBITDA to be comparable to the fourth quarter. In the West, the company anticipates improved average log sales realizations, partially offset by modestly lower fee harvest volumes. In the South, the company expects seasonally lower fee harvest volumes, comparable realizations, and higher trucking costs.
REAL ESTATE, ENERGY AND NATURAL RESOURCES
|
FINANCIAL HIGHLIGHTS (millions) |
3Q 2017 |
4Q 2017 |
Change | ||||||||
|
Net sales |
$ |
82 |
$ |
100 |
$ |
18 |
|||||
|
Contribution to pre-tax earnings |
$ |
47 |
$ |
50 |
$ |
3 |
|||||
|
Adjusted EBITDA |
$ |
74 |
$ |
87 |
$ |
13 |
|||||
4Q 2017 Performance - Earnings and Adjusted EBITDA increased compared with the third quarter due to seasonally higher Real Estate sales.
1Q 2018 Outlook - Weyerhaeuser anticipates significantly lower earnings and Adjusted EBITDA in the first quarter compared with the fourth quarter due to seasonally lower Real Estate sales and royalties from Energy & Natural Resources operations.
WOOD PRODUCTS
|
FINANCIAL HIGHLIGHTS (millions) |
3Q 2017 |
4Q 2017 |
Change | ||||||||
|
Net sales |
$ |
1,299 |
$ |
1,228 |
$ |
(71) |
|||||
|
Contribution to pre-tax earnings |
$ |
40 |
$ |
180 |
$ |
140 |
|||||
|
Pre-tax charge for special items |
$ |
201 |
$ |
41 |
$ |
(160) |
|||||
|
Contribution to pre-tax earnings before special items |
$ |
241 |
$ |
221 |
$ |
(20) |
|||||
|
Adjusted EBITDA |
$ |
278 |
$ |
258 |
$ |
(20) |
|||||
4Q 2017 Performance - Average sales realizations for all products increased compared with the third quarter. Sales volumes declined due to seasonality and weather-related transportation disruptions. Canadian and Western log costs increased, and raw material costs for oriented strand board and engineered wood products were also higher.
Fourth quarter net pre-tax special charges of $41 million include $50 million for product remediation and a $9 million net benefit primarily from an adjustment to the periods covered and rates associated with the softwood lumber countervailing and antidumping duties.
1Q 2018 Outlook - Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA from the Wood Products segment will be comparable to the fourth quarter. The company expects higher sales volumes, improved operating rates, and slightly higher lumber sales realizations, offset by lower average sales realizations for 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 12.4 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. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2017, we generated $7.2 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the North American and World Dow Jones Sustainability Indices. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on February 2, 2018 to discuss fourth quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on February 2, 2018.
To join the conference call from within North America, dial 855-223-0757 (access code: 3088989) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 3088989). Replays will be available for two weeks at 855-859-2056 (access code: 3088989) from within North America and at 404-537-3406 (access code: 3088989) 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 first quarter of 2018: earnings and Adjusted EBITDA for each of our business segments; log sale realizations and fee harvest volumes in our timber business; Wood Products sales volumes and realizations and operating rates; transportation costs; real estate sales volumes; and royalties from energy and natural resources operations. 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, particularly the relative value of the U.S. dollar to the yen and the Canadian dollar, and the relative value of the euro to the yen;
- restrictions on international trade, tariffs imposed on imports and the availability and cost of shipping and transportation;
- economic activity in Asia, especially Japan and China;
- 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 matters 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.
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For more information contact: |
Analysts - Beth Baum (206) 539-3907 | |
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Media - Anthony Chavez (206) 539-4406 |
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RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS |
|
We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income for the business segments, as those are the most directly comparable U.S. GAAP measures for each.
|
|
The table below reconciles Adjusted EBITDA for the year ended December 31, 2017: |
|
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
|
Adjusted EBITDA by Segment: |
|||||||||||||||||||
|
Net earnings |
$ |
582 |
|||||||||||||||||
|
Earnings from discontinued operations, net of income taxes |
— |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
393 |
||||||||||||||||||
|
Income taxes |
134 |
||||||||||||||||||
|
Net contribution to earnings |
$ |
532 |
$ |
146 |
$ |
569 |
$ |
(138) |
1,109 |
||||||||||
|
Equity (earnings) loss from joint ventures |
— |
(1) |
— |
— |
(1) |
||||||||||||||
|
Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
62 |
62 |
||||||||||||||
|
Interest income and other |
— |
— |
— |
(39) |
(39) |
||||||||||||||
|
Operating income |
532 |
145 |
569 |
(115) |
1,131 |
||||||||||||||
|
Depreciation, depletion and amortization |
356 |
15 |
145 |
5 |
521 |
||||||||||||||
|
Basis of real estate sold |
— |
81 |
— |
— |
81 |
||||||||||||||
|
Unallocated pension service costs |
— |
— |
— |
4 |
4 |
||||||||||||||
|
Special items(1)(2)(3) |
48 |
— |
303 |
(8) |
343 |
||||||||||||||
|
Adjusted EBITDA |
$ |
936 |
$ |
241 |
$ |
1,017 |
$ |
(114) |
$ |
2,080 |
|||||||||
|
(1) Pre-tax special items included in Timberlands consist of a $147 million non-cash impairment charge of the Uruguay operations and a $99 million gain on the sale of Southern timberlands. | |
|
(2) Pre-tax special items included in Wood Products consist of $290 million of product remediation charges, $7 million for countervailing and antidumping duties on softwood lumber, and a $6 million impairment on a non-strategic asset. | |
|
(3) Pre-tax special items included in Unallocated Items consist of $42 million for environmental remediation insurance recoveries and $34 million for Plum Creek merger-related costs. |
|
The table below reconciles Adjusted EBITDA for the year ended December 31, 2016: | |||||||||||||||||||
|
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
|
Adjusted EBITDA by Segment: |
|||||||||||||||||||
|
Net earnings |
$ |
1,027 |
|||||||||||||||||
|
Earnings from discontinued operations, net of income taxes |
(612) |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
431 |
||||||||||||||||||
|
Income taxes |
89 |
||||||||||||||||||
|
Net contribution to earnings |
$ |
499 |
$ |
55 |
$ |
512 |
$ |
(131) |
$ |
935 |
|||||||||
|
Equity (earnings) loss from joint ventures |
— |
(2) |
— |
(20) |
(22) |
||||||||||||||
|
Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
(48) |
(48) |
||||||||||||||
|
Interest income and other |
— |
— |
— |
(43) |
(43) |
||||||||||||||
|
Operating income |
499 |
53 |
512 |
(242) |
822 |
||||||||||||||
|
Depreciation, depletion and amortization |
366 |
13 |
129 |
4 |
512 |
||||||||||||||
|
Basis of real estate sold |
— |
109 |
— |
— |
109 |
||||||||||||||
|
Unallocated pension service costs |
— |
— |
— |
5 |
5 |
||||||||||||||
|
Special items(1)(2) |
— |
14 |
— |
121 |
135 |
||||||||||||||
|
Adjusted EBITDA |
$ |
865 |
$ |
189 |
$ |
641 |
$ |
(112) |
$ |
1,583 |
|||||||||
|
(1) Pre-tax special items included in Real Estate & ENR relate to non-cash charges recorded for legacy real estate projects. | |
|
(2) Pre-tax special items included in Unallocated Items consist of: $146 million Plum Creek merger-related costs, $36 million gain on sale of non strategic assets, and $11 million of legal expense. | |
|
The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2017: |
|
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
|
Adjusted EBITDA by Segment: |
|||||||||||||||||||
|
Net earnings |
$ |
271 |
|||||||||||||||||
|
Interest expense, net of capitalized interest |
96 |
||||||||||||||||||
|
Income taxes |
103 |
||||||||||||||||||
|
Net contribution to earnings |
$ |
265 |
$ |
50 |
$ |
180 |
$ |
(25) |
$ |
470 |
|||||||||
|
Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
16 |
16 |
||||||||||||||
|
Interest income and other |
— |
— |
— |
(10) |
(10) |
||||||||||||||
|
Operating income |
265 |
50 |
180 |
(19) |
476 |
||||||||||||||
|
Depreciation, depletion and amortization |
86 |
4 |
37 |
— |
127 |
||||||||||||||
|
Basis of real estate sold |
— |
33 |
— |
— |
33 |
||||||||||||||
|
Unallocated pension service costs |
— |
— |
— |
1 |
1 |
||||||||||||||
|
Special items(1)(2)(3) |
(99) |
— |
41 |
(28) |
(86) |
||||||||||||||
|
Adjusted EBITDA |
$ |
252 |
$ |
87 |
$ |
258 |
$ |
(46) |
$ |
551 |
|||||||||
|
(1) Pre-tax special items included in Timberlands consist of a $99 million gain on the sale of Southern timberlands. |
|
(2) Pre-tax special items included in Wood Products consist of $50 million of product remediation charges, partially offset by a $9 million benefit from an adjustment to accrued softwood lumber countervailing and antidumping duties. |
|
(3) Pre-tax special items included in Unallocated Items consist of $42 million for environmental remediation insurance recoveries and $14 million for Plum Creek merger-related costs. |
|
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2017: |
|
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
|
Adjusted EBITDA by Segment: |
|||||||||||||||||||
|
Net earnings |
$ |
130 |
|||||||||||||||||
|
Interest expense, net of capitalized interest |
98 |
||||||||||||||||||
|
Income taxes |
(27) |
||||||||||||||||||
|
Net contribution to earnings |
$ |
131 |
$ |
47 |
$ |
40 |
$ |
(17) |
$ |
201 |
|||||||||
|
Equity (earnings) loss from joint ventures |
— |
(1) |
— |
— |
(1) |
||||||||||||||
|
Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
16 |
16 |
||||||||||||||
|
Interest income and other |
— |
— |
— |
(11) |
(11) |
||||||||||||||
|
Operating income |
131 |
46 |
40 |
(12) |
205 |
||||||||||||||
|
Depreciation, depletion and amortization |
89 |
4 |
37 |
2 |
132 |
||||||||||||||
|
Basis of real estate sold |
— |
24 |
— |
— |
24 |
||||||||||||||
|
Unallocated pension service costs |
— |
— |
— |
1 |
1 |
||||||||||||||
|
Special items(1)(2) |
— |
— |
201 |
6 |
207 |
||||||||||||||
|
Adjusted EBITDA |
$ |
220 |
$ |
74 |
$ |
278 |
$ |
(3) |
$ |
569 |
|||||||||
|
(1) Pre-tax special items included in Wood Products consist of $190 million of product remediation charges, a $6 million impairment on a non-strategic asset and $5 million of countervailing and anti-dumping duties on softwood lumber. |
|
(2) Pre-tax special items included in Unallocated Items consist of $6 million of Plum Creek merger-related costs. |
|
The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2016: |
|
DOLLAR AMOUNTS IN MILLIONS |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total | ||||||||||||||
|
Adjusted EBITDA by Segment: |
|||||||||||||||||||
|
Net earnings |
$ |
551 |
|||||||||||||||||
|
Earnings from discontinued operations, net of income taxes |
(489) |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
108 |
||||||||||||||||||
|
Income taxes |
25 |
||||||||||||||||||
|
Net contribution to earnings |
$ |
123 |
$ |
13 |
$ |
99 |
$ |
(40) |
$ |
195 |
|||||||||
|
Equity (earnings) loss from joint ventures |
— |
(1) |
— |
— |
(1) |
||||||||||||||
|
Non-operating pension and other postretirement benefit (costs) credits |
— |
— |
— |
(11) |
(11) |
||||||||||||||
|
Interest income and other |
— |
— |
— |
(9) |
(9) |
||||||||||||||
|
Operating income |
123 |
12 |
99 |
(60) |
174 |
||||||||||||||
|
Depreciation, depletion and amortization |
100 |
4 |
33 |
— |
137 |
||||||||||||||
|
Basis of real estate sold |
— |
60 |
— |
— |
60 |
||||||||||||||
|
Unallocated pension service costs |
— |
— |
— |
1 |
1 |
||||||||||||||
|
Special items(1)(2) |
— |
14 |
— |
14 |
28 |
||||||||||||||
|
Adjusted EBITDA |
$ |
223 |
$ |
90 |
$ |
132 |
$ |
(45) |
$ |
400 |
|||||||||
|
(1) Pre-tax special items included in Real Estate & ENR relate to non-cash charges recorded for legacy real estate projects. |
|
(2) Pre-tax special items included in Unallocated items consist of $14 million of Plum Creek merger-related costs. |
|
Weyerhaeuser Company |
Exhibit 99.2 |
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Q4.2017 Analyst Package |
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Preliminary results (unaudited) |
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|
Consolidated Statement of Operations (1)(2) |
||||||||||||||||||||||||||||
|
in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-Date |
|||||||||||||||||||||||
|
Mar 31, 2017 |
Jun 30, 2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31, 2017 |
Dec 31, 2016 |
||||||||||||||||||||||
|
Net sales |
$ |
1,693 |
$ |
1,808 |
$ |
1,872 |
$ |
1,823 |
$ |
1,596 |
$ |
7,196 |
$ |
6,365 |
||||||||||||||
|
Cost of products sold |
1,272 |
1,336 |
1,374 |
1,316 |
1,278 |
5,298 |
4,980 |
|||||||||||||||||||||
|
Gross margin |
421 |
472 |
498 |
507 |
318 |
1,898 |
1,385 |
|||||||||||||||||||||
|
Selling expenses |
22 |
22 |
22 |
21 |
22 |
87 |
89 |
|||||||||||||||||||||
|
General and administrative expenses |
87 |
76 |
75 |
72 |
85 |
310 |
338 |
|||||||||||||||||||||
|
Research and development expenses |
4 |
4 |
4 |
2 |
5 |
14 |
19 |
|||||||||||||||||||||
|
Charges for integration and restructuring, closures and asset impairments |
13 |
151 |
14 |
16 |
29 |
194 |
170 |
|||||||||||||||||||||
|
Charges for product remediation |
— |
50 |
190 |
50 |
— |
290 |
— |
|||||||||||||||||||||
|
Other operating costs (income), net |
2 |
12 |
(12) |
(130) |
3 |
(128) |
(53) |
|||||||||||||||||||||
|
Operating income from continuing operations |
293 |
157 |
205 |
476 |
174 |
1,131 |
822 |
|||||||||||||||||||||
|
Equity earnings from joint ventures |
— |
— |
1 |
— |
1 |
1 |
22 |
|||||||||||||||||||||
|
Non-operating pension and other postretirement benefit (costs) credits |
(22) |
(8) |
(16) |
(16) |
11 |
(62) |
48 |
|||||||||||||||||||||
|
Interest income and other |
9 |
9 |
11 |
10 |
9 |
39 |
43 |
|||||||||||||||||||||
|
Interest expense, net of capitalized interest |
(99) |
(100) |
(98) |
(96) |
(108) |
(393) |
(431) |
|||||||||||||||||||||
|
Earnings from continuing operations before income taxes |
181 |
58 |
103 |
374 |
87 |
716 |
504 |
|||||||||||||||||||||
|
Income taxes |
(24) |
(34) |
27 |
(103) |
(25) |
(134) |
(89) |
|||||||||||||||||||||
|
Earnings from continuing operations |
157 |
24 |
130 |
271 |
62 |
582 |
415 |
|||||||||||||||||||||
|
Earnings (loss) from discontinued operations, net of income taxes |
— |
— |
— |
— |
489 |
— |
612 |
|||||||||||||||||||||
|
Net earnings |
157 |
24 |
130 |
271 |
551 |
582 |
1,027 |
|||||||||||||||||||||
|
Dividends on preference shares |
— |
— |
— |
— |
— |
— |
(22) |
|||||||||||||||||||||
|
Net earnings attributable to Weyerhaeuser common shareholders |
$ |
157 |
$ |
24 |
$ |
130 |
$ |
271 |
$ |
551 |
$ |
582 |
$ |
1,005 |
||||||||||||||
|
(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 |
Q3 |
Q4 |
Year-to-Date |
||||||||||||||||||||||||
|
Mar 31, 2017 |
Jun 30, 2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31, 2017 |
Dec 31, 2016 |
||||||||||||||||||||||
|
Earnings per share attributable to Weyerhaeuser common shareholders, basic: |
||||||||||||||||||||||||||||
|
Continuing operations |
$ |
0.21 |
$ |
0.03 |
$ |
0.17 |
$ |
0.36 |
$ |
0.09 |
$ |
0.77 |
$ |
0.55 |
||||||||||||||
|
Discontinued operations |
— |
— |
— |
— |
0.65 |
— |
0.85 |
|||||||||||||||||||||
|
Net earnings per share |
$ |
0.21 |
$ |
0.03 |
$ |
0.17 |
$ |
0.36 |
$ |
0.74 |
$ |
0.77 |
$ |
1.40 |
||||||||||||||
|
Earnings per share attributable to Weyerhaeuser common shareholders, diluted: |
||||||||||||||||||||||||||||
|
Continuing operations |
$ |
0.21 |
$ |
0.03 |
$ |
0.17 |
$ |
0.36 |
$ |
0.08 |
$ |
0.77 |
$ |
0.55 |
||||||||||||||
|
Discontinued operations |
— |
— |
— |
— |
0.65 |
— |
0.84 |
|||||||||||||||||||||
|
Net earnings per share |
$ |
0.21 |
$ |
0.03 |
$ |
0.17 |
$ |
0.36 |
$ |
0.73 |
$ |
0.77 |
$ |
1.39 |
||||||||||||||
|
Dividends paid per common share |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.32 |
$ |
0.31 |
$ |
1.25 |
$ |
1.24 |
||||||||||||||
|
Weighted average shares outstanding (in thousands): |
||||||||||||||||||||||||||||
|
Basic |
750,665 |
752,630 |
753,535 |
755,409 |
748,835 |
753,085 |
718,560 |
|||||||||||||||||||||
|
Diluted |
754,747 |
756,451 |
756,903 |
758,463 |
752,768 |
756,666 |
722,401 |
|||||||||||||||||||||
|
Common shares outstanding at end of period (in thousands) |
751,411 |
752,711 |
753,051 |
755,223 |
748,528 |
755,223 |
748,528 |
|||||||||||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||||||||||||||
|
Q4.2017 Analyst Package |
||||||||||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* |
||||||||||||||||||||||||||||
|
in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-Date |
|||||||||||||||||||||||
|
Mar 31, 2017 |
Jun 30, 2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31, 2017 |
Dec 31, 2016 |
||||||||||||||||||||||
|
Net earnings |
$ |
157 |
$ |
24 |
$ |
130 |
$ |
271 |
$ |
551 |
$ |
582 |
$ |
1,027 |
||||||||||||||
|
Earnings from discontinued operations, net of income taxes |
— |
— |
— |
— |
(489) |
— |
(612) |
|||||||||||||||||||||
|
Equity earnings from joint ventures |
— |
— |
(1) |
— |
(1) |
(1) |
(22) |
|||||||||||||||||||||
|
Non-operating pension and other postretirement benefit costs (credits) |
22 |
8 |
16 |
16 |
(11) |
62 |
(48) |
|||||||||||||||||||||
|
Interest income and other |
(9) |
(9) |
(11) |
(10) |
(9) |
(39) |
(43) |
|||||||||||||||||||||
|
Interest expense, net of capitalized interest |
99 |
100 |
98 |
96 |
108 |
393 |
431 |
|||||||||||||||||||||
|
Income taxes |
24 |
34 |
(27) |
103 |
25 |
134 |
89 |
|||||||||||||||||||||
|
Operating income from continuing operations |
293 |
157 |
205 |
476 |
174 |
1,131 |
822 |
|||||||||||||||||||||
|
Depreciation, depletion and amortization |
133 |
129 |
132 |
127 |
137 |
521 |
512 |
|||||||||||||||||||||
|
Basis of real estate sold |
14 |
10 |
24 |
33 |
60 |
81 |
109 |
|||||||||||||||||||||
|
Unallocated pension service costs |
2 |
— |
1 |
1 |
1 |
4 |
5 |
|||||||||||||||||||||
|
Special items |
12 |
210 |
207 |
(86) |
28 |
343 |
135 |
|||||||||||||||||||||
|
Adjusted EBITDA* |
$ |
454 |
$ |
506 |
$ |
569 |
$ |
551 |
$ |
400 |
$ |
2,080 |
$ |
1,583 |
||||||||||||||
|
*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 |
Q3 |
Q4 |
Year-to-Date |
|||||||||||||||||||||||
|
Mar 31, 2017 |
Jun 30, 2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31, 2017 |
Dec 31, 2016 |
||||||||||||||||||||||
|
Net earnings attributable to Weyerhaeuser common shareholders |
$ |
157 |
$ |
24 |
$ |
130 |
$ |
271 |
$ |
551 |
$ |
582 |
$ |
1,005 |
||||||||||||||
|
Plum Creek merger and integration-related costs |
10 |
2 |
3 |
12 |
11 |
27 |
123 |
|||||||||||||||||||||
|
Restructuring, impairments and other charges |
— |
147 |
4 |
— |
9 |
151 |
9 |
|||||||||||||||||||||
|
Gain on sale of timberlands and other nonstrategic assets |
— |
— |
— |
(99) |
— |
(99) |
(22) |
|||||||||||||||||||||
|
Legal expense |
— |
— |
— |
— |
— |
— |
7 |
|||||||||||||||||||||
|
Environmental remediation insurance recoveries |
— |
— |
— |
(26) |
— |
(26) |
— |
|||||||||||||||||||||
|
Product remediation |
— |
31 |
118 |
31 |
— |
180 |
— |
|||||||||||||||||||||
|
Countervailing and antidumping duties |
— |
8 |
4 |
(7) |
— |
5 |
— |
|||||||||||||||||||||
|
Tax adjustments, including enactment of tax legislation |
— |
— |
— |
52 |
24 |
52 |
24 |
|||||||||||||||||||||
|
Net earnings attributable to Weyerhaeuser common shareholders before special items |
167 |
212 |
259 |
234 |
595 |
872 |
1,146 |
|||||||||||||||||||||
|
(Earnings) loss from discontinued operations, net of tax |
— |
— |
— |
— |
(489) |
— |
(612) |
|||||||||||||||||||||
|
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
167 |
$ |
212 |
$ |
259 |
$ |
234 |
$ |
106 |
$ |
872 |
$ |
534 |
||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-Date |
||||||||||||||||||||||||
|
Mar 31, 2017 |
Jun 30, 2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31, 2017 |
Dec 31, 2016 |
||||||||||||||||||||||
|
Net earnings per diluted share attributable to Weyerhaeuser common shareholders |
$ |
0.21 |
$ |
0.03 |
$ |
0.17 |
$ |
0.36 |
$ |
0.73 |
$ |
0.77 |
$ |
1.39 |
||||||||||||||
|
Plum Creek merger and integration-related costs |
0.01 |
— |
— |
0.02 |
0.01 |
0.03 |
0.17 |
|||||||||||||||||||||
|
Restructuring, impairments and other charges |
— |
0.20 |
0.01 |
— |
0.01 |
0.21 |
0.01 |
|||||||||||||||||||||
|
Gain on sale of timberlands and other nonstrategic assets |
— |
— |
— |
(0.14) |
— |
(0.14) |
(0.03) |
|||||||||||||||||||||
|
Legal expense |
— |
— |
— |
— |
— |
— |
0.01 |
|||||||||||||||||||||
|
Environmental remediation insurance recoveries |
— |
— |
— |
(0.03) |
— |
(0.03) |
— |
|||||||||||||||||||||
|
Product remediation |
— |
0.04 |
0.15 |
0.04 |
— |
0.23 |
— |
|||||||||||||||||||||
|
Countervailing and antidumping duties |
— |
0.01 |
0.01 |
(0.01) |
— |
0.01 |
— |
|||||||||||||||||||||
|
Tax adjustments, including enactment of tax legislation |
— |
— |
— |
0.07 |
0.04 |
0.07 |
0.04 |
|||||||||||||||||||||
|
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items |
0.22 |
0.28 |
0.34 |
0.31 |
0.79 |
1.15 |
1.59 |
|||||||||||||||||||||
|
(Earnings) loss from discontinued operations, net of tax |
— |
— |
— |
— |
(0.65) |
— |
(0.84) |
|||||||||||||||||||||
|
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items |
$ |
0.22 |
$ |
0.28 |
$ |
0.34 |
$ |
0.31 |
$ |
0.14 |
$ |
1.15 |
$ |
0.75 |
||||||||||||||
|
Weyerhaeuser Company |
|||||||||||||||||||
|
Q4.2017 Analyst Package |
|||||||||||||||||||
|
Preliminary results (unaudited) |
|||||||||||||||||||
|
Consolidated Balance Sheet | |||||||||||||||||||
|
in millions |
March 31, 2017 |
June 30, 2017 |
September 30, 2017 |
December 31, 2017 |
December 31, 2016 | ||||||||||||||
|
ASSETS |
|||||||||||||||||||
|
Current assets: |
|||||||||||||||||||
|
Cash and cash equivalents |
$ |
455 |
$ |
701 |
$ |
497 |
$ |
824 |
$ |
676 |
|||||||||
|
Receivables, less allowances |
472 |
442 |
485 |
396 |
390 |
||||||||||||||
|
Receivables for taxes |
10 |
8 |
65 |
14 |
84 |
||||||||||||||
|
Inventories |
386 |
349 |
340 |
383 |
358 |
||||||||||||||
|
Prepaid expenses and other current assets |
142 |
177 |
130 |
98 |
114 |
||||||||||||||
|
Assets held for sale |
— |
411 |
— |
— |
— |
||||||||||||||
|
Total current assets |
1,465 |
2,088 |
1,517 |
1,715 |
1,622 |
||||||||||||||
|
Property and equipment, net |
1,544 |
1,534 |
1,534 |
1,618 |
1,562 |
||||||||||||||
|
Construction in progress |
230 |
190 |
225 |
225 |
213 |
||||||||||||||
|
Timber and timberlands at cost, less depletion |
14,218 |
13,669 |
13,627 |
12,954 |
14,299 |
||||||||||||||
|
Minerals and mineral rights, net |
317 |
314 |
312 |
308 |
319 |
||||||||||||||
|
Investments in and advances to equity affiliates |
56 |
33 |
33 |
31 |
56 |
||||||||||||||
|
Goodwill |
40 |
40 |
40 |
40 |
40 |
||||||||||||||
|
Deferred tax assets |
287 |
261 |
240 |
268 |
293 |
||||||||||||||
|
Other assets |
229 |
246 |
259 |
285 |
224 |
||||||||||||||
|
Restricted financial investments held by variable interest entities |
615 |
615 |
615 |
615 |
615 |
||||||||||||||
|
Total assets |
$ |
19,001 |
$ |
18,990 |
$ |
18,402 |
$ |
18,059 |
$ |
19,243 |
|||||||||
|
LIABILITIES AND EQUITY |
|||||||||||||||||||
|
Current liabilities: |
|||||||||||||||||||
|
Current maturities of long-term debt |
$ |
343 |
$ |
668 |
$ |
62 |
$ |
62 |
$ |
281 |
|||||||||
|
Current debt (nonrecourse to the company) held by variable interest entities |
— |
— |
— |
209 |
— |
||||||||||||||
|
Accounts payable |
227 |
252 |
259 |
249 |
233 |
||||||||||||||
|
Accrued liabilities |
452 |
585 |
702 |
645 |
692 |
||||||||||||||
|
Liabilities held for sale |
— |
19 |
— |
— |
— |
||||||||||||||
|
Total current liabilities |
1,022 |
1,524 |
1,023 |
1,165 |
1,206 |
||||||||||||||
|
Long-term debt |
6,263 |
5,936 |
5,933 |
5,930 |
6,329 |
||||||||||||||
|
Long-term debt (nonrecourse to the company) held by variable interest entities |
511 |
511 |
511 |
302 |
511 |
||||||||||||||
|
Deferred pension and other postretirement benefits |
1,287 |
1,230 |
1,201 |
1,487 |
1,322 |
||||||||||||||
|
Deposit received from contribution of timberlands to related party |
422 |
419 |
416 |
— |
426 |
||||||||||||||
|
Other liabilities |
281 |
280 |
273 |
276 |
269 |
||||||||||||||
|
Total liabilities |
9,786 |
9,900 |
9,357 |
9,160 |
10,063 |
||||||||||||||
|
Total equity |
9,215 |
9,090 |
9,045 |
8,899 |
9,180 |
||||||||||||||
|
Total liabilities and equity |
$ |
19,001 |
$ |
18,990 |
$ |
18,402 |
$ |
18,059 |
$ |
19,243 |
|||||||||
|
Weyerhaeuser Company |
|||||||||||||||||||||||||||
|
Q4.2017 Analyst Package |
|||||||||||||||||||||||||||
|
Preliminary results (unaudited) |
|||||||||||||||||||||||||||
|
Consolidated Statement of Cash Flows | |||||||||||||||||||||||||||
|
in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-Date | ||||||||||||||||||||||
|
Mar 31, 2017 |
Jun 30, 2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31, 2017 |
Dec 31, 2016 | |||||||||||||||||||||
|
Cash flows from operations: |
|||||||||||||||||||||||||||
|
Net earnings |
$ |
157 |
$ |
24 |
$ |
130 |
$ |
271 |
$ |
551 |
$ |
582 |
$ |
1,027 |
|||||||||||||
|
Noncash charges (credits) to income: |
|||||||||||||||||||||||||||
|
Depreciation, depletion and amortization |
133 |
129 |
132 |
127 |
137 |
521 |
565 |
||||||||||||||||||||
|
Basis of real estate sold |
14 |
10 |
24 |
33 |
60 |
81 |
109 |
||||||||||||||||||||
|
Deferred income taxes, net |
3 |
3 |
3 |
35 |
(255) |
44 |
(159) |
||||||||||||||||||||
|
Pension and other postretirement benefits |
32 |
15 |
25 |
25 |
— |
97 |
5 |
||||||||||||||||||||
|
Share-based compensation expense |
10 |
9 |
10 |
11 |
7 |
40 |
60 |
||||||||||||||||||||
|
Charges for impairment of assets |
— |
147 |
6 |
1 |
14 |
154 |
37 |
||||||||||||||||||||
|
Equity (earnings) loss from joint ventures |
— |
— |
(1) |
— |
— |
(1) |
(18) |
||||||||||||||||||||
|
Net gains on disposition of discontinued and other operations |
— |
— |
(1) |
— |
(729) |
(1) |
(789) |
||||||||||||||||||||
|
Net gains on sale of nonstrategic assets |
(7) |
(2) |
(5) |
(2) |
(12) |
(16) |
(73) |
||||||||||||||||||||
|
Net gains on sale of southern timberlands |
— |
— |
— |
(99) |
— |
(99) |
— |
||||||||||||||||||||
|
Foreign exchange transaction (gains) losses |
3 |
— |
(3) |
(1) |
6 |
(1) |
(5) |
||||||||||||||||||||
|
Change in: |
|||||||||||||||||||||||||||
|
Receivables less allowances |
(70) |
(8) |
(35) |
78 |
42 |
(35) |
(54) |
||||||||||||||||||||
|
Receivable/payable for taxes |
(36) |
(17) |
(63) |
66 |
69 |
(50) |
106 |
||||||||||||||||||||
|
Inventories |
(28) |
21 |
11 |
(43) |
12 |
(39) |
61 |
||||||||||||||||||||
|
Prepaid expenses |
(9) |
(4) |
4 |
(3) |
8 |
(12) |
5 |
||||||||||||||||||||
|
Accounts payable and accrued liabilities |
(137) |
192 |
129 |
(78) |
(50) |
106 |
11 |
||||||||||||||||||||
|
Pension and postretirement contributions |
(22) |
(15) |
(22) |
(19) |
(16) |
(78) |
(99) |
||||||||||||||||||||
|
Distributions of earnings received from joint ventures |
— |
— |
1 |
— |
9 |
1 |
14 |
||||||||||||||||||||
|
Other |
(8) |
(15) |
(22) |
(48) |
(4) |
(93) |
(68) |
||||||||||||||||||||
|
Net cash from (used in) operations |
35 |
489 |
323 |
354 |
(151) |
1,201 |
735 |
||||||||||||||||||||
|
Cash flows from investing activities: |
|||||||||||||||||||||||||||
|
Capital expenditures: |
|||||||||||||||||||||||||||
|
Purchases of property and equipment |
(52) |
(74) |
(87) |
(145) |
(191) |
(358) |
(451) |
||||||||||||||||||||
|
Timberlands reforestation costs |
(23) |
(13) |
(10) |
(15) |
(16) |
(61) |
(59) |
||||||||||||||||||||
|
Acquisition of timberlands |
— |
— |
— |
— |
— |
— |
(10) |
||||||||||||||||||||
|
Proceeds from sales of operations and nonstrategic assets |
8 |
4 |
411 |
6 |
2,211 |
429 |
2,590 |
||||||||||||||||||||
|
Proceeds from sale of southern timberlands |
— |
— |
— |
203 |
— |
203 |
— |
||||||||||||||||||||
|
Proceeds from redemption of ownership in related party |
— |
— |
— |
108 |
— |
108 |
— |
||||||||||||||||||||
|
Proceeds from contribution of timberlands to related party |
— |
— |
— |
— |
— |
— |
440 |
||||||||||||||||||||
|
Distributions received from joint ventures |
— |
23 |
— |
2 |
— |
25 |
46 |
||||||||||||||||||||
|
Other |
(1) |
22 |
(16) |
16 |
(36) |
21 |
3 |
||||||||||||||||||||
|
Cash from (used in) investing activities |
(68) |
(38) |
298 |
175 |
1,968 |
367 |
2,559 |
||||||||||||||||||||
|
Cash flows from financing activities: |
|||||||||||||||||||||||||||
|
Cash dividends on common shares |
(233) |
(233) |
(233) |
(242) |
(232) |
(941) |
(932) |
||||||||||||||||||||
|
Cash dividends on preference shares |
— |
— |
— |
— |
— |
— |
(22) |
||||||||||||||||||||
|
Proceeds from issuance of long-term debt |
— |
— |
225 |
— |
— |
225 |
1,698 |
||||||||||||||||||||
|
Payments on long-term debt |
— |
— |
(831) |
— |
(1,700) |
(831) |
(2,423) |
||||||||||||||||||||
|
Proceeds from borrowing on line of credit |
— |
— |
100 |
— |
— |
100 |
— |
||||||||||||||||||||
|
Payments on line of credit |
— |
— |
(100) |
— |
— |
(100) |
— |
||||||||||||||||||||
|
Proceeds from exercise of stock options |
55 |
26 |
8 |
39 |
— |
128 |
61 |
||||||||||||||||||||
|
Repurchase of common stock |
— |
— |
— |
— |
— |
— |
(2,003) |
||||||||||||||||||||
|
Other |
(10) |
2 |
6 |
1 |
12 |
(1) |
(9) |
||||||||||||||||||||
|
Cash from (used in) financing activities |
(188) |
(205) |
(825) |
(202) |
(1,920) |
(1,420) |
(3,630) |
||||||||||||||||||||
|
— |
|||||||||||||||||||||||||||
|
Net change in cash and cash equivalents |
(221) |
246 |
(204) |
327 |
(103) |
148 |
(336) |
||||||||||||||||||||
|
Cash from continuing operations at beginning of period |
$ |
676 |
$ |
455 |
$ |
701 |
$ |
497 |
$ |
769 |
$ |
676 |
$ |
1,011 |
|||||||||||||
|
Cash from discontinued operations at beginning of period |
— |
— |
— |
— |
10 |
— |
1 |
||||||||||||||||||||
|
Cash and cash equivalents at beginning of period |
$ |
676 |
$ |
455 |
$ |
701 |
$ |
497 |
$ |
779 |
$ |
676 |
$ |
1,012 |
|||||||||||||
|
Cash from continuing operations at end of period |
$ |
455 |
$ |
701 |
$ |
497 |
$ |
824 |
$ |
676 |
$ |
824 |
$ |
676 |
|||||||||||||
|
Cash from discontinued operations at end of period |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||
|
Cash and cash equivalents at end of period |
$ |
455 |
$ |
701 |
$ |
497 |
$ |
824 |
$ |
676 |
$ |
824 |
$ |
676 |
|||||||||||||
|
Cash paid (received) during the year for: |
|||||||||||||||||||||||||||
|
Interest, net of amount capitalized |
$ |
120 |
$ |
72 |
$ |
123 |
$ |
66 |
$ |
79 |
$ |
381 |
$ |
446 |
|||||||||||||
|
Income taxes |
$ |
59 |
$ |
47 |
$ |
23 |
$ |
40 |
$ |
511 |
$ |
169 |
$ |
485 |
|||||||||||||
|
Weyerhaeuser Company |
Total Company Statistics |
|||||||||||||||||||||||||||
|
Q4.2017 Analyst Package |
||||||||||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||||||||||
|
Selected Total Company Items |
||||||||||||||||||||||||||||
|
in millions |
Q1 |
Q2 |
Q3 |
Q4 |
Year-to-Date |
|||||||||||||||||||||||
|
Mar 31,2017 |
Jun 30,2017 |
Sep 30, 2017 |
Dec 31, 2017 |
Dec 31, 2016 |
Dec 31,2017 |
Dec 31, 2016 |
||||||||||||||||||||||
|
Pension and postretirement costs: |
||||||||||||||||||||||||||||
|
Pension and postretirement costs allocated to business segments |
$ |
8 |
$ |
7 |
$ |
8 |
$ |
8 |
$ |
7 |
$ |
31 |
$ |
30 |
||||||||||||||
|
Pension and postretirement costs (credits) not allocated: |
||||||||||||||||||||||||||||
|
Unallocated pension service costs |
2 |
— |
1 |
1 |
1 |
4 |
5 |
|||||||||||||||||||||
|
Non-operating pension and other postretirement benefit costs (credits) |
22 |
8 |
16 |
16 |
(11) |
62 |
(48) |
|||||||||||||||||||||
|
Accelerated pension costs included in Plum Creek merger-related costs (not allocated) |
— |
— |
— |
— |
— |
— |
5 |
|||||||||||||||||||||
|
Total pension and postretirement costs for continuing operations |
32 |
15 |
25 |
25 |
(3) |
97 |
(8) |
|||||||||||||||||||||
|
Pension and postretirement service costs directly attributable to discontinued operations |
— |
— |
— |
— |
3 |
— |
13 |
|||||||||||||||||||||
|
Total company pension and postretirement costs |
$ |
32 |
$ |
15 |
$ |
25 |
$ |
25 |
$ |
— |
$ |
97 |
$ |
5 |
||||||||||||||
|
Cash spent for capital expenditures for continuing operations |
$ |
(75) |
$ |
(87) |
$ |
(97) |
$ |
(160) |
$ |
(185) |
$ |
(419) |
$ |
(425) |
||||||||||||||
|
Weyerhaeuser Company |
Timberlands Segment | |||||||||||||||||||||||||||
|
Q4.2017 Analyst Package |
||||||||||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||||||||||
|
Segment Statement of Operations | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Sales to unaffiliated customers |
$ |
486 |
$ |
469 |
$ |
491 |
$ |
496 |
$ |
463 |
$ |
1,942 |
$ |
1,805 |
||||||||||||||
|
Intersegment sales |
202 |
163 |
179 |
218 |
209 |
762 |
840 |
|||||||||||||||||||||
|
Total net sales |
688 |
632 |
670 |
714 |
672 |
2,704 |
2,645 |
|||||||||||||||||||||
|
Cost of products sold |
519 |
476 |
517 |
531 |
527 |
2,043 |
2,054 |
|||||||||||||||||||||
|
Gross margin |
169 |
156 |
153 |
183 |
145 |
661 |
591 |
|||||||||||||||||||||
|
Selling expenses |
1 |
1 |
1 |
1 |
1 |
4 |
5 |
|||||||||||||||||||||
|
General and administrative expenses |
24 |
23 |
24 |
19 |
24 |
90 |
104 |
|||||||||||||||||||||
|
Research and development expenses |
3 |
4 |
3 |
2 |
5 |
12 |
17 |
|||||||||||||||||||||
|
Charges for integration and restructuring, closures and asset impairments |
— |
147 |
— |
— |
— |
147 |
— |
|||||||||||||||||||||
|
Other operating costs (income), net |
(7) |
(7) |
(6) |
(104) |
(8) |
(124) |
(34) |
|||||||||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
148 |
$ |
(12) |
$ |
131 |
$ |
265 |
$ |
123 |
$ |
532 |
$ |
499 |
||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Operating income |
$ |
148 |
$ |
(12) |
$ |
131 |
$ |
265 |
$ |
123 |
$ |
532 |
$ |
499 |
||||||||||||||
|
Depreciation, depletion and amortization |
94 |
87 |
89 |
86 |
100 |
356 |
366 |
|||||||||||||||||||||
|
Special items |
— |
147 |
— |
(99) |
— |
48 |
— |
|||||||||||||||||||||
|
Adjusted EBITDA* |
$ |
242 |
$ |
222 |
$ |
220 |
$ |
252 |
$ |
223 |
$ |
936 |
$ |
865 |
||||||||||||||
|
* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. | ||||||||||||||||||||||||||||
|
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Restructuring, impairments and other charges |
$ |
— |
$ |
(147) |
$ |
— |
$ |
— |
$ |
— |
$ |
(147) |
$ |
— |
||||||||||||||
|
Gain on sale of timberlands and other nonstrategic assets |
$ |
— |
$ |
— |
$ |
— |
$ |
99 |
$ |
— |
$ |
99 |
$ |
— |
||||||||||||||
|
Selected Segment Items | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Total decrease (increase) in working capital(1) |
$ |
(18) |
$ |
38 |
$ |
— |
$ |
(15) |
$ |
(10) |
$ |
5 |
$ |
7 |
||||||||||||||
|
Cash spent for capital expenditures |
$ |
(30) |
$ |
(25) |
$ |
(24) |
$ |
(36) |
$ |
(39) |
$ |
(115) |
$ |
(116) |
||||||||||||||
|
(1) 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(2)(3) | ||||||||||||||||||||||||||||
|
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | ||||||||||||||||||||||
|
Third PartyNet Sales (millions) |
Logs: |
|||||||||||||||||||||||||||
|
West |
$ |
225 |
$ |
227 |
$ |
221 |
$ |
242 |
$ |
201 |
$ |
915 |
$ |
865 |
||||||||||||||
|
South |
148 |
148 |
155 |
165 |
151 |
616 |
566 |
|||||||||||||||||||||
|
North |
27 |
16 |
25 |
27 |
30 |
95 |
91 |
|||||||||||||||||||||
|
Other |
20 |
11 |
17 |
11 |
13 |
59 |
38 |
|||||||||||||||||||||
|
Total delivered logs |
420 |
402 |
418 |
445 |
395 |
1,685 |
1,560 |
|||||||||||||||||||||
|
Stumpage and pay-as-cut timber |
12 |
17 |
23 |
21 |
23 |
73 |
85 |
|||||||||||||||||||||
|
Products from international operations |
19 |
21 |
23 |
— |
21 |
63 |
79 |
|||||||||||||||||||||
|
Recreational and other lease revenue |
14 |
15 |
16 |
14 |
15 |
59 |
44 |
|||||||||||||||||||||
|
Other revenue |
21 |
14 |
11 |
16 |
9 |
62 |
37 |
|||||||||||||||||||||
|
Total |
$ |
486 |
$ |
469 |
$ |
491 |
$ |
496 |
$ |
463 |
$ |
1,942 |
$ |
1,805 |
||||||||||||||
|
Delivered LogsThird Party Sales Realizations (per ton) |
West |
$ |
104.27 |
$ |
105.84 |
$ |
116.03 |
$ |
121.41 |
$ |
100.43 |
$ |
111.58 |
$ |
99.32 |
|||||||||||||
|
South |
$ |
34.48 |
$ |
34.48 |
$ |
34.24 |
$ |
34.53 |
$ |
34.98 |
$ |
34.43 |
$ |
35.46 |
||||||||||||||
|
North |
$ |
59.57 |
$ |
63.49 |
$ |
59.02 |
$ |
60.77 |
$ |
59.28 |
$ |
60.38 |
$ |
60.47 |
||||||||||||||
|
Delivered LogsThird Party Sales Volumes (tons, thousands) |
West |
2,157 |
2,143 |
1,910 |
1,992 |
2,008 |
8,202 |
8,713 |
||||||||||||||||||||
|
South |
4,293 |
4,285 |
4,527 |
4,790 |
4,308 |
17,895 |
15,967 |
|||||||||||||||||||||
|
North |
454 |
253 |
428 |
439 |
495 |
1,574 |
1,500 |
|||||||||||||||||||||
|
Other |
510 |
292 |
424 |
232 |
342 |
1,458 |
943 |
|||||||||||||||||||||
|
Fee Harvest Volumes(tons, thousands) |
West |
2,657 |
2,652 |
2,230 |
2,544 |
2,558 |
10,083 |
11,083 |
||||||||||||||||||||
|
South |
6,373 |
6,473 |
6,953 |
7,350 |
7,260 |
27,149 |
26,343 |
|||||||||||||||||||||
|
North |
622 |
383 |
565 |
635 |
652 |
2,205 |
2,044 |
|||||||||||||||||||||
|
Other |
371 |
444 |
569 |
— |
329 |
1,384 |
701 |
|||||||||||||||||||||
|
(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations (our management agreement for the Twin Creeks Venture began in April 2016 and terminated in December 2017). | ||||||||||||||||||||||||||||
|
(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 | |||||||||||||||||||||||||||
|
Q4.2017 Analyst Package |
||||||||||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||||||||||
|
Segment Statement of Operations | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Sales to unaffiliated customers |
$ |
53 |
$ |
46 |
$ |
82 |
$ |
99 |
$ |
101 |
$ |
280 |
$ |
226 |
||||||||||||||
|
Intersegment sales |
— |
— |
— |
1 |
1 |
1 |
1 |
|||||||||||||||||||||
|
Total net sales |
53 |
46 |
82 |
100 |
102 |
281 |
227 |
|||||||||||||||||||||
|
Cost of products sold |
20 |
16 |
31 |
43 |
69 |
110 |
134 |
|||||||||||||||||||||
|
Gross margin |
33 |
30 |
51 |
57 |
33 |
171 |
93 |
|||||||||||||||||||||
|
Selling expenses |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
|
General and administrative expenses |
7 |
7 |
6 |
6 |
7 |
26 |
26 |
|||||||||||||||||||||
|
Charges for integration and restructuring, closures and asset impairments |
— |
— |
— |
— |
14 |
— |
15 |
|||||||||||||||||||||
|
Other operating costs (income), net |
— |
— |
(1) |
1 |
— |
— |
(1) |
|||||||||||||||||||||
|
Operating income |
26 |
23 |
46 |
50 |
12 |
145 |
53 |
|||||||||||||||||||||
|
Equity earnings from joint ventures(1) |
— |
— |
1 |
— |
1 |
1 |
2 |
|||||||||||||||||||||
|
Net contribution to earnings |
$ |
26 |
$ |
23 |
$ |
47 |
$ |
50 |
$ |
13 |
$ |
146 |
$ |
55 |
||||||||||||||
|
(1) Equity earnings (loss) from joint ventures attributed to the Real Estate and ENR segment are generated from our investments in our real estate development ventures. | ||||||||||||||||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Operating income |
$ |
26 |
$ |
23 |
$ |
46 |
$ |
50 |
$ |
12 |
$ |
145 |
$ |
53 |
||||||||||||||
|
Depreciation, depletion and amortization |
3 |
4 |
4 |
4 |
4 |
15 |
13 |
|||||||||||||||||||||
|
Basis of real estate sold |
14 |
10 |
24 |
33 |
60 |
81 |
109 |
|||||||||||||||||||||
|
Special items |
— |
— |
— |
— |
14 |
— |
14 |
|||||||||||||||||||||
|
Adjusted EBITDA* |
$ |
43 |
$ |
37 |
$ |
74 |
$ |
87 |
$ |
90 |
$ |
241 |
$ |
189 |
||||||||||||||
|
* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. | ||||||||||||||||||||||||||||
|
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Restructuring, impairments and other charges |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
(14) |
$ |
— |
$ |
(14) |
||||||||||||||
|
Selected Segment Items | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Cash spent for capital expenditures |
$ |
— |
$ |
(1) |
$ |
(1) |
$ |
— |
$ |
— |
$ |
(2) |
$ |
(1) |
||||||||||||||
|
Segment Statistics | ||||||||||||||||||||||||||||
|
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | ||||||||||||||||||||||
|
Net Sales(millions) |
Real Estate |
$ |
37 |
$ |
27 |
$ |
64 |
$ |
80 |
$ |
85 |
$ |
208 |
$ |
172 |
|||||||||||||
|
Energy and Natural Resources |
16 |
19 |
18 |
19 |
16 |
72 |
54 |
|||||||||||||||||||||
|
Total |
$ |
53 |
$ |
46 |
$ |
82 |
$ |
99 |
$ |
101 |
$ |
280 |
$ |
226 |
||||||||||||||
|
Acres sold |
Real Estate |
13,257 |
10,003 |
35,749 |
38,226 |
44,589 |
97,235 |
82,687 |
||||||||||||||||||||
|
Price per acre |
Real Estate |
$ |
2,403 |
$ |
2,714 |
$ |
1,784 |
$ |
2,076 |
$ |
1,903 |
$ |
2,079 |
$ |
2,072 |
|||||||||||||
|
Weyerhaeuser Company |
Wood Products Segment | |||||||||||||||||||||||||||
|
Q4.2017 Analyst Package |
||||||||||||||||||||||||||||
|
Preliminary results (unaudited) |
||||||||||||||||||||||||||||
|
Segment Statement of Operations | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Sales to unaffiliated customers |
$ |
1,154 |
$ |
1,293 |
$ |
1,299 |
$ |
1,228 |
$ |
1,032 |
$ |
4,974 |
$ |
4,334 |
||||||||||||||
|
Intersegment sales |
— |
— |
— |
— |
7 |
— |
68 |
|||||||||||||||||||||
|
Total net sales |
1,154 |
1,293 |
1,299 |
1,228 |
1,039 |
4,974 |
4,402 |
|||||||||||||||||||||
|
Cost of products sold |
926 |
1,002 |
1,005 |
947 |
889 |
3,880 |
3,688 |
|||||||||||||||||||||
|
Gross margin |
228 |
291 |
294 |
281 |
150 |
1,094 |
714 |
|||||||||||||||||||||
|
Selling expenses |
21 |
19 |
20 |
20 |
21 |
80 |
84 |
|||||||||||||||||||||
|
General and administrative expenses |
32 |
32 |
30 |
32 |
28 |
126 |
109 |
|||||||||||||||||||||
|
Research and development expenses |
1 |
— |
1 |
— |
— |
2 |
2 |
|||||||||||||||||||||
|
Charges for integration and restructuring, closures and asset impairments |
1 |
2 |
8 |
2 |
1 |
13 |
7 |
|||||||||||||||||||||
|
Charges for product remediation |
— |
50 |
190 |
50 |
— |
290 |
— |
|||||||||||||||||||||
|
Other operating costs (income), net |
1 |
11 |
5 |
(3) |
1 |
14 |
— |
|||||||||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
172 |
$ |
177 |
$ |
40 |
$ |
180 |
$ |
99 |
$ |
569 |
$ |
512 |
||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Operating income |
$ |
172 |
$ |
177 |
$ |
40 |
$ |
180 |
$ |
99 |
$ |
569 |
$ |
512 |
||||||||||||||
|
Depreciation, depletion and amortization |
35 |
36 |
37 |
37 |
33 |
145 |
129 |
|||||||||||||||||||||
|
Special items |
— |
61 |
201 |
41 |
— |
303 |
— |
|||||||||||||||||||||
|
Adjusted EBITDA* |
$ |
207 |
$ |
274 |
$ |
278 |
$ |
258 |
$ |
132 |
$ |
1,017 |
$ |
641 |
||||||||||||||
|
* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. | ||||||||||||||||||||||||||||
|
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Countervailing and antidumping duties |
$ |
— |
$ |
(11) |
$ |
(5) |
$ |
9 |
$ |
— |
$ |
(7) |
$ |
— |
||||||||||||||
|
Restructuring, impairments and other charges |
— |
— |
(6) |
— |
— |
(6) |
— |
|||||||||||||||||||||
|
Product remediation |
— |
(50) |
(190) |
(50) |
— |
(290) |
— |
|||||||||||||||||||||
|
Total |
$ |
— |
$ |
(61) |
$ |
(201) |
$ |
(41) |
$ |
— |
$ |
(303) |
$ |
— |
||||||||||||||
|
Selected Segment Items | ||||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Total decrease (increase) in working capital(1) |
$ |
(122) |
$ |
113 |
$ |
150 |
$ |
(81) |
$ |
32 |
$ |
60 |
$ |
(16) |
||||||||||||||
|
Cash spent for capital expenditures |
$ |
(44) |
$ |
(61) |
$ |
(71) |
$ |
(123) |
$ |
(145) |
$ |
(299) |
$ |
(297) |
||||||||||||||
|
(1) 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 |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | |||||||||||||||||||||
|
Structural Lumber(board feet) |
Third party net sales |
$ |
478 |
$ |
538 |
$ |
525 |
$ |
517 |
$ |
427 |
$ |
2,058 |
$ |
1,839 |
|||||||||||||
|
Third party sales realizations |
$ |
413 |
$ |
441 |
$ |
448 |
$ |
466 |
$ |
392 |
$ |
442 |
$ |
390 |
||||||||||||||
|
Third party sales volumes(2) |
1,158 |
1,218 |
1,172 |
1,110 |
1,089 |
4,658 |
4,723 |
|||||||||||||||||||||
|
Production volumes |
1,152 |
1,146 |
1,093 |
1,118 |
1,052 |
4,509 |
4,516 |
|||||||||||||||||||||
|
Engineered SolidSection (cubic feet) |
Third party net sales |
$ |
117 |
$ |
130 |
$ |
131 |
$ |
122 |
$ |
107 |
$ |
500 |
$ |
450 |
|||||||||||||
|
Third party sales realizations |
$ |
1,881 |
$ |
1,979 |
$ |
2,047 |
$ |
2,076 |
$ |
1,930 |
$ |
1,995 |
$ |
1,934 |
||||||||||||||
|
Third party sales volumes(2) |
6.2 |
6.6 |
6.4 |
5.9 |
5.6 |
25.1 |
23.3 |
|||||||||||||||||||||
|
Production volumes |
6.3 |
6.6 |
6.4 |
5.8 |
5.6 |
25.1 |
22.8 |
|||||||||||||||||||||
|
EngineeredI-joists (lineal feet) |
Third party net sales |
$ |
73 |
$ |
85 |
$ |
93 |
$ |
85 |
$ |
72 |
$ |
336 |
$ |
290 |
|||||||||||||
|
Third party sales realizations |
$ |
1,481 |
$ |
1,522 |
$ |
1,529 |
$ |
1,561 |
$ |
1,485 |
$ |
1,524 |
$ |
1,484 |
||||||||||||||
|
Third party sales volumes(2) |
49 |
57 |
60 |
54 |
48 |
220 |
195 |
|||||||||||||||||||||
|
Production volumes |
50 |
53 |
58 |
52 |
43 |
213 |
184 |
|||||||||||||||||||||
|
Oriented StrandBoard (square feet 3/8") |
Third party net sales |
$ |
203 |
$ |
225 |
$ |
243 |
$ |
233 |
$ |
163 |
$ |
904 |
$ |
707 |
|||||||||||||
|
Third party sales realizations |
$ |
263 |
$ |
295 |
$ |
328 |
$ |
335 |
$ |
255 |
$ |
304 |
$ |
241 |
||||||||||||||
|
Third party sales volumes(2) |
769 |
764 |
741 |
697 |
638 |
2,971 |
2,934 |
|||||||||||||||||||||
|
Production volumes |
758 |
754 |
744 |
739 |
651 |
2,995 |
2,910 |
|||||||||||||||||||||
|
Softwood Plywood (square feet 3/8") |
Third party net sales |
$ |
44 |
$ |
47 |
$ |
45 |
$ |
40 |
$ |
41 |
$ |
176 |
$ |
174 |
|||||||||||||
|
Third party sales realizations |
$ |
377 |
$ |
380 |
$ |
386 |
$ |
417 |
$ |
364 |
$ |
389 |
$ |
368 |
||||||||||||||
|
Third party sales volumes(2) |
118 |
123 |
117 |
95 |
113 |
453 |
481 |
|||||||||||||||||||||
|
Production volumes |
97 |
99 |
88 |
86 |
92 |
370 |
396 |
|||||||||||||||||||||
|
Medium Density Fiberboard (square feet 3/4") |
Third party net sales |
$ |
47 |
$ |
51 |
$ |
48 |
$ |
37 |
$ |
46 |
$ |
183 |
$ |
158 |
|||||||||||||
|
Third party sales realizations |
$ |
795 |
$ |
845 |
$ |
821 |
$ |
829 |
$ |
779 |
$ |
822 |
$ |
769 |
||||||||||||||
|
Third party sales volumes(2) |
59 |
60 |
58 |
45 |
58 |
222 |
206 |
|||||||||||||||||||||
|
Production volumes |
56 |
63 |
63 |
50 |
54 |
232 |
209 |
|||||||||||||||||||||
|
(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. | ||||||||||||||||||||||||||||
|
Weyerhaeuser Company |
Unallocated Items | ||||||||||||||||||||||||||
|
Q4.2017 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, the elimination of intersegment profit in inventory, equity earnings in our timberland venture, and the LIFO reserve. | |||||||||||||||||||||||||||
|
Contribution to Earnings | |||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | ||||||||||||||||||||
|
Unallocated corporate function expenses |
$ |
(19) |
$ |
(17) |
$ |
(19) |
$ |
(18) |
$ |
(25) |
$ |
(73) |
$ |
(87) |
|||||||||||||
|
Unallocated share-based compensation |
(6) |
— |
(1) |
(2) |
2 |
(9) |
(3) |
||||||||||||||||||||
|
Unallocated pension service costs |
(2) |
— |
(1) |
(1) |
(1) |
(4) |
(5) |
||||||||||||||||||||
|
Foreign exchange gains (losses) |
(3) |
— |
3 |
1 |
(7) |
1 |
6 |
||||||||||||||||||||
|
Elimination of intersegment profit in inventory and LIFO |
(6) |
(3) |
3 |
(14) |
(12) |
(20) |
(18) |
||||||||||||||||||||
|
Gain on sale of nonstrategic asset |
3 |
1 |
4 |
1 |
5 |
9 |
50 |
||||||||||||||||||||
|
Charges for integration and restructuring, closures and asset impairments: |
|||||||||||||||||||||||||||
|
Plum Creek merger and integration-related costs |
(12) |
(2) |
(6) |
(14) |
(14) |
(34) |
(146) |
||||||||||||||||||||
|
Other restructuring, closures and asset impairments |
— |
— |
— |
— |
— |
— |
(2) |
||||||||||||||||||||
|
Other |
(8) |
(10) |
5 |
28 |
(8) |
15 |
(37) |
||||||||||||||||||||
|
Operating income (loss) |
(53) |
(31) |
(12) |
(19) |
(60) |
(115) |
(242) |
||||||||||||||||||||
|
Equity earnings from joint venture(1) |
— |
— |
— |
— |
— |
— |
20 |
||||||||||||||||||||
|
Non-operating pension and other postretirement benefit (costs) credits(2) |
(22) |
(8) |
(16) |
(16) |
11 |
(62) |
48 |
||||||||||||||||||||
|
Interest income and other |
9 |
9 |
11 |
10 |
9 |
39 |
43 |
||||||||||||||||||||
|
Net contribution to earnings |
$ |
(66) |
$ |
(30) |
$ |
(17) |
$ |
(25) |
$ |
(40) |
$ |
(138) |
$ |
(131) |
|||||||||||||
|
(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 presented. | |||||||||||||||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | |||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | ||||||||||||||||||||
|
Operating income (loss) |
$ |
(53) |
$ |
(31) |
$ |
(12) |
$ |
(19) |
$ |
(60) |
$ |
(115) |
$ |
(242) |
|||||||||||||
|
Depreciation, depletion and amortization |
1 |
2 |
2 |
— |
— |
5 |
4 |
||||||||||||||||||||
|
Unallocated pension service costs |
2 |
— |
1 |
1 |
1 |
4 |
5 |
||||||||||||||||||||
|
Special items |
12 |
2 |
6 |
(28) |
14 |
(8) |
121 |
||||||||||||||||||||
|
Adjusted EBITDA* |
$ |
(38) |
$ |
(27) |
$ |
(3) |
$ |
(46) |
$ |
(45) |
$ |
(114) |
$ |
(112) |
|||||||||||||
|
* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2. | |||||||||||||||||||||||||||
|
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | ||||||||||||||||||||
|
Plum Creek merger and integration-related costs |
$ |
(12) |
$ |
(2) |
$ |
(6) |
$ |
(14) |
$ |
(14) |
$ |
(34) |
$ |
(146) |
|||||||||||||
|
Gain on sale of timberlands and other nonstrategic assets |
— |
— |
— |
— |
— |
— |
36 |
||||||||||||||||||||
|
Legal expense |
— |
— |
— |
— |
— |
— |
(11) |
||||||||||||||||||||
|
Environmental remediation insurance recoveries |
42 |
42 |
— |
||||||||||||||||||||||||
|
Total |
$ |
(12) |
$ |
(2) |
$ |
(6) |
$ |
28 |
$ |
(14) |
$ |
8 |
$ |
(121) |
|||||||||||||
|
Unallocated Selected Items | |||||||||||||||||||||||||||
|
in millions |
Q1.2017 |
Q2.2017 |
Q3.2017 |
Q4.2017 |
Q4.2016 |
YTD.2017 |
YTD.2016 | ||||||||||||||||||||
|
Cash spent for capital expenditures |
$ |
(1) |
$ |
— |
$ |
(1) |
$ |
(1) |
$ |
(1) |
$ |
(3) |
$ |
(11) |
|||||||||||||
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SOURCE Weyerhaeuser Company