- Achieved net earnings of $310 million, or $0.42 per diluted share
- Generated $583 million of Adjusted EBITDA
- Repurchased $404 million of common shares year to date, through the third quarter
SEATTLE, Oct. 27, 2022 /PRNewswire/ — Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $310 million, or 42 cents per diluted share, on net sales of $2.3 billion. This compares with net earnings of $482 million, or 64 cents per diluted share, on net sales of $2.3 billion for the same period last year and net earnings of $788 million for the second quarter of 2022. There were no special items in third quarter or second quarter 2022. Net earnings before special items was $450 million for the same period last year.
View our earnings release and financial statements in a printer-friendly PDF.
Adjusted EBITDA for the third quarter of 2022 was $583 million compared with $746 million for the same period last year and $1.2 billion for the second quarter of 2022.
“In the third quarter, we delivered solid results across our businesses, despite increasing macroeconomic headwinds,” said Devin W. Stockfish, president and chief executive officer. “Although near-term market conditions have moderated, we maintain a constructive longer-term outlook for the demand fundamentals that support our businesses. Looking ahead, our balance sheet is exceptionally strong, and we are well positioned to navigate through a range of market conditions. We remain focused on serving our customers and driving long-term value for our shareholders through an unmatched portfolio of assets, industry-leading performance and disciplined capital allocation.”
|
WEYERHAEUSER FINANCIAL HIGHLIGHTS |
2022 |
2022 |
2021 |
|||
|
(millions, except per share data) |
Q2 |
Q3 |
Q3 |
|||
|
Net sales |
$2,973 |
$2,276 |
$2,345 |
|||
|
Net earnings |
$788 |
$310 |
$482 |
|||
|
Net earnings per diluted share |
$1.06 |
$0.42 |
$0.64 |
|||
|
Weighted average shares outstanding, diluted |
746 |
741 |
751 |
|||
|
Net earnings before special items(1)(2) |
$788 |
$310 |
$450 |
|||
|
Net earnings per diluted share before special items(1) |
$1.06 |
$0.42 |
$0.60 |
|||
|
Adjusted EBITDA(1) |
$1,205 |
$583 |
$746 |
|||
|
Net cash from operations |
$1,146 |
$562 |
$659 |
|||
|
Adjusted FAD(3) |
$1,065 |
$468 |
$561 |
|
(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) |
Special items for prior periods presented are included in the reconciliation tables within this release. |
|
(3) |
Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company’s liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release. |
TIMBERLANDS
|
FINANCIAL HIGHLIGHTS |
2022 |
2022 |
||||
|
(millions) |
Q2 |
Q3 |
Change |
|||
|
Net sales |
$671 |
$574 |
$(97) |
|||
|
Net contribution to pretax earnings |
$153 |
$107 |
$(46) |
|||
|
Adjusted EBITDA |
$219 |
$168 |
$(51) |
Q3 2022 Performance – In the West, fee harvest volumes and domestic sales volumes were lower than the second quarter due to the work stoppage that commenced in mid-September, impacting a portion of our operations in the region. Domestic sales realizations were comparable and per unit log and haul costs were lower. Export sales realizations and volumes were significantly lower due to softening demand, and volumes were further affected by a reduction in export activity resulting from the work stoppage. In the South, fee harvest volumes, sales realizations, and per unit log and haul costs were all comparable to the second quarter. Forestry and road costs in the West and South were seasonally higher.
Q4 2022 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be significantly lower than third quarter 2022. In the West, the company expects lower fee harvest and sales volumes resulting from the work stoppage. Sales realizations are expected to be significantly lower due to softening demand. The company expects lower per unit log and haul costs and significantly lower forestry and road costs. In the South, fee harvest volumes and forestry and road costs are expected to be slightly higher, and per unit log and haul costs and sales realizations are expected to be comparable.
REAL ESTATE, ENERGY & NATURAL RESOURCES
|
FINANCIAL HIGHLIGHTS |
2022 |
2022 |
||||
|
(millions) |
Q2 |
Q3 |
Change |
|||
|
Net sales |
$117 |
$68 |
$(49) |
|||
|
Net contribution to pretax earnings |
$65 |
$48 |
$(17) |
|||
|
Adjusted EBITDA |
$107 |
$60 |
$(47) |
Q3 2022 Performance – Earnings and Adjusted EBITDA decreased from the second quarter due to lower real estate sales, partially offset by an increase in royalty income from our Energy and Natural Resources business. The number of real estate acres sold decreased significantly due to the timing of transactions, partially offset by an increase in the average price per acre due to the mix of properties sold.
Q4 2022 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be lower than third quarter 2022 due to the timing and mix of real estate sales, as well as lower royalty income from our Energy and Natural Resources business. The company still expects full year 2022 Adjusted EBITDA of approximately $325 million and now expects basis as a percentage of real estate sales to be 35 to 40 percent for the full year.
WOOD PRODUCTS
|
FINANCIAL HIGHLIGHTS |
2022 |
2022 |
||||
|
(millions) |
Q2 |
Q3 |
Change |
|||
|
Net sales |
$2,341 |
$1,767 |
$(574) |
|||
|
Net contribution to pretax earnings |
$863 |
$344 |
$(519) |
|||
|
Adjusted EBITDA |
$912 |
$395 |
$(517) |
Q3 2022 Performance – Sales realizations for lumber and oriented strand board decreased 28 percent and 41 percent, respectively, compared with second quarter averages. Sales and production volumes for lumber were moderately lower, largely due to the work stoppage at our mills in Washington and Oregon that commenced in mid-September. Unit manufacturing costs were higher, and log costs were moderately lower. Sales and production volumes for oriented strand board were slightly lower due to downtime for planned annual maintenance and transportation challenges in Canada. Unit manufacturing costs were higher, and fiber costs were comparable. Sales realizations were higher for most engineered wood products, while sales and production volumes were lower for most products due to downtime for planned annual maintenance, transportation challenges in Canada and labor constraints. Unit manufacturing costs for engineered wood products were higher, and raw material costs were significantly lower, primarily for oriented strand board webstock.
Q4 2022 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be lower than third quarter 2022, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects significantly lower log costs, partially offset by lower sales volumes resulting from the work stoppage at our mills in Washington and Oregon. For oriented strand board, the company anticipates slightly higher sales volumes, comparable fiber costs, and significantly lower unit manufacturing costs due to less downtime for planned annual maintenance. Sales volumes and realizations are expected to be lower for most engineered wood products, partially offset by significantly lower raw material costs, primarily for oriented strand board webstock. For distribution, the company expects lower sales volumes and realizations for most products.
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 2021, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. 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 October 28, 2022 to discuss third quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 28, 2022.
To join the conference call from within North America, dial 1-877-407-0792 (access code: 13724916) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13724916). Replays will be available for two weeks at 1-844-512-2921 (access code: 13724916) from within North America, and at 1-412-317-6671 (access code: 13724916) 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, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest and sales volumes and sales realizations for our Timberlands business; log and haul, forestry and road costs and expenses; basis for real estate acres to be sold; sales volumes for our lumber business; sales volumes and unit manufacturing costs for our oriented strand board business; sales realizations and sales volumes for our engineered wood products business; log and raw materials costs for each of our Wood Products lines; sales volumes and sales realizations for our Distribution business; long-term demand fundamentals affecting our businesses; and our future performance through changing market conditions. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as “anticipate,” “expect,” “looking ahead,” “planned,” “will,” and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or 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, inflation, housing starts, general availability and cost 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;
- the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
- our ability to hire and retain capable employees;
- 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 or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
- 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 as it relates to the cost of pension benefits 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 and the accuracy of our estimates of charges related to casualty losses;
- changes in accounting principles; and
- other risks and uncertainties identified in our 2021 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 June 30, 2022:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||
|
Adjusted EBITDA by Segment: |
||||||||||
|
Net earnings |
$788 |
|||||||||
|
Interest expense, net of capitalized interest |
65 |
|||||||||
|
Income taxes |
184 |
|||||||||
|
Net contribution (charge) to earnings |
$153 |
$65 |
$863 |
$(44) |
$1,037 |
|||||
|
Non-operating pension and other post-employment |
— |
— |
— |
11 |
11 |
|||||
|
Interest income and other |
— |
— |
— |
(1) |
(1) |
|||||
|
Operating income (loss) |
153 |
65 |
863 |
(34) |
1,047 |
|||||
|
Depreciation, depletion and amortization |
66 |
3 |
49 |
1 |
119 |
|||||
|
Basis of real estate sold |
— |
39 |
— |
— |
39 |
|||||
|
Adjusted EBITDA |
$219 |
$107 |
$912 |
$(33) |
$1,205 |
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2022:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||
|
Adjusted EBITDA by Segment: |
||||||||||
|
Net earnings |
$310 |
|||||||||
|
Interest expense, net of capitalized interest |
67 |
|||||||||
|
Income taxes |
77 |
|||||||||
|
Net contribution (charge) to earnings |
$107 |
$48 |
$344 |
$(45) |
$454 |
|||||
|
Non-operating pension and other post-employment |
— |
— |
— |
12 |
12 |
|||||
|
Interest income and other |
— |
— |
— |
(9) |
(9) |
|||||
|
Operating income (loss) |
107 |
48 |
344 |
(42) |
457 |
|||||
|
Depreciation, depletion and amortization |
61 |
5 |
51 |
2 |
119 |
|||||
|
Basis of real estate sold |
— |
7 |
— |
— |
7 |
|||||
|
Adjusted EBITDA |
$168 |
$60 |
$395 |
$(40) |
$583 |
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2021:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||
|
Adjusted EBITDA by Segment: |
||||||||||
|
Net earnings |
$482 |
|||||||||
|
Interest expense, net of capitalized interest |
79 |
|||||||||
|
Income taxes |
84 |
|||||||||
|
Net contribution (charge) to earnings |
$133 |
$45 |
$517 |
$(50) |
$645 |
|||||
|
Non-operating pension and other post-employment |
— |
— |
— |
5 |
5 |
|||||
|
Interest income and other |
— |
— |
— |
(1) |
(1) |
|||||
|
Operating income (loss) |
133 |
45 |
517 |
(46) |
649 |
|||||
|
Depreciation, depletion and amortization |
64 |
4 |
48 |
2 |
118 |
|||||
|
Basis of real estate sold |
— |
11 |
— |
— |
11 |
|||||
|
Special items included in operating income (loss)(1) |
(32) |
— |
— |
— |
(32) |
|||||
|
Adjusted EBITDA |
$165 |
$60 |
$565 |
$(44) |
$746 |
|
(1) |
Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands. |
The table below reconciles Adjusted EBITDA for the year-to-date period ended September 30, 2022:
|
(millions) |
Timberlands |
Real Estate & ENR |
Wood Products |
Unallocated Items |
Total |
|||||
|
Adjusted EBITDA by Segment: |
||||||||||
|
Net earnings |
$1,869 |
|||||||||
|
Interest expense, net of capitalized interest |
204 |
|||||||||
|
Loss on debt extinguishment(1) |
276 |
|||||||||
|
Income taxes |
470 |
|||||||||
|
Net contribution (charge) to earnings |
$442 |
$194 |
$2,389 |
$(206) |
$2,819 |
|||||
|
Non-operating pension and other post-employment |
— |
— |
— |
38 |
38 |
|||||
|
Interest income and other |
— |
— |
— |
(9) |
(9) |
|||||
|
Operating income (loss) |
442 |
194 |
2,389 |
(177) |
2,848 |
|||||
|
Depreciation, depletion and amortization |
192 |
12 |
151 |
5 |
360 |
|||||
|
Basis of real estate sold |
— |
77 |
— |
— |
77 |
|||||
|
Adjusted EBITDA |
$634 |
$283 |
$2,540 |
$(172) |
$3,285 |
|
(1) |
Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt. |
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:
|
2022 |
2022 |
2021 |
||||
|
(millions) |
Q2 |
Q3 |
Q3 |
|||
|
Net earnings |
$788 |
$310 |
$482 |
|||
|
Gain on sale of timberlands |
— |
— |
(32) |
|||
|
Net earnings before special items |
$788 |
$310 |
$450 |
The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:
|
2022 |
2022 |
2021 |
||||
|
Q2 |
Q3 |
Q3 |
||||
|
Net earnings per diluted share |
$1.06 |
$0.42 |
$0.64 |
|||
|
Gain on sale of timberlands |
— |
— |
(0.04) |
|||
|
Net earnings per diluted share before special items |
$1.06 |
$0.42 |
$0.60 |
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS
We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.
The table below reconciles Adjusted FAD to net cash from operations:
|
2022 |
2022 |
2021 |
2022 |
|||||
|
(millions) |
Q2 |
Q3 |
Q3 |
Q3 YTD |
||||
|
Net cash from operations |
$1,146 |
$562 |
$659 |
$2,665 |
||||
|
Capital expenditures |
(81) |
(94) |
(98) |
(245) |
||||
|
Adjustments to FAD(1) |
— |
— |
— |
(37) |
||||
|
Adjusted FAD |
$1,065 |
$468 |
$561 |
$2,383 |
|
(1) |
Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022. |
|
Weyerhaeuser Company |
Exhibit 99.2 |
|||||||||||||||||||||||
|
Q3.2022 Analyst Package |
||||||||||||||||||||||||
|
Consolidated Statement of Operations |
||||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
in millions |
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
||||||||||||||||||
|
Net sales |
$ |
3,112 |
$ |
2,973 |
$ |
2,276 |
$ |
2,345 |
$ |
8,361 |
$ |
7,995 |
||||||||||||
|
Costs of sales |
1,647 |
1,789 |
1,694 |
1,589 |
5,130 |
4,602 |
||||||||||||||||||
|
Gross margin |
1,465 |
1,184 |
582 |
756 |
3,231 |
3,393 |
||||||||||||||||||
|
Selling expenses |
23 |
23 |
24 |
24 |
70 |
68 |
||||||||||||||||||
|
General and administrative expenses |
92 |
102 |
100 |
98 |
294 |
283 |
||||||||||||||||||
|
Other operating costs (income), net |
6 |
12 |
1 |
(15) |
19 |
8 |
||||||||||||||||||
|
Operating income |
1,344 |
1,047 |
457 |
649 |
2,848 |
3,034 |
||||||||||||||||||
|
Non-operating pension and other post-employment benefit costs |
(15) |
(11) |
(12) |
(5) |
(38) |
(14) |
||||||||||||||||||
|
Interest income and other |
(1) |
1 |
9 |
1 |
9 |
4 |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
(72) |
(65) |
(67) |
(79) |
(204) |
(236) |
||||||||||||||||||
|
Loss on debt extinguishment |
(276) |
— |
— |
— |
(276) |
— |
||||||||||||||||||
|
Earnings before income taxes |
980 |
972 |
387 |
566 |
2,339 |
2,788 |
||||||||||||||||||
|
Income taxes |
(209) |
(184) |
(77) |
(84) |
(470) |
(597) |
||||||||||||||||||
|
Net earnings |
$ |
771 |
$ |
788 |
$ |
310 |
$ |
482 |
$ |
1,869 |
$ |
2,191 |
||||||||||||
|
Per Share Information |
||||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
|||||||||||||||||||
|
Earnings per share, basic and diluted |
$ |
1.03 |
$ |
1.06 |
$ |
0.42 |
$ |
0.64 |
$ |
2.51 |
$ |
2.92 |
||||||||||||
|
Dividends paid per common share |
$ |
1.63 |
$ |
0.18 |
$ |
0.18 |
$ |
0.17 |
$ |
1.99 |
$ |
0.51 |
||||||||||||
|
Weighted average shares outstanding (in thousands): |
||||||||||||||||||||||||
|
Basic |
747,507 |
744,542 |
740,058 |
750,105 |
743,990 |
749,657 |
||||||||||||||||||
|
Diluted |
748,823 |
745,582 |
740,975 |
751,443 |
745,081 |
750,999 |
||||||||||||||||||
|
Common shares outstanding at end of period (in thousands) |
745,442 |
741,738 |
737,547 |
749,037 |
737,547 |
749,037 |
||||||||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) |
||||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
in millions |
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
||||||||||||||||||
|
Net earnings |
$ |
771 |
$ |
788 |
$ |
310 |
$ |
482 |
$ |
1,869 |
$ |
2,191 |
||||||||||||
|
Non-operating pension and other post-employment benefit costs |
15 |
11 |
12 |
5 |
38 |
14 |
||||||||||||||||||
|
Interest income and other |
1 |
(1) |
(9) |
(1) |
(9) |
(4) |
||||||||||||||||||
|
Interest expense, net of capitalized interest |
72 |
65 |
67 |
79 |
204 |
236 |
||||||||||||||||||
|
Loss on debt extinguishment |
276 |
— |
— |
— |
276 |
— |
||||||||||||||||||
|
Income taxes |
209 |
184 |
77 |
84 |
470 |
597 |
||||||||||||||||||
|
Operating income |
1,344 |
1,047 |
457 |
649 |
2,848 |
3,034 |
||||||||||||||||||
|
Depreciation, depletion and amortization |
122 |
119 |
119 |
118 |
360 |
356 |
||||||||||||||||||
|
Basis of real estate sold |
31 |
39 |
7 |
11 |
77 |
62 |
||||||||||||||||||
|
Special items included in operating income |
— |
— |
— |
(32) |
— |
(32) |
||||||||||||||||||
|
Adjusted EBITDA(1) |
$ |
1,497 |
$ |
1,205 |
$ |
583 |
$ |
746 |
$ |
3,285 |
$ |
3,420 |
||||||||||||
|
(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. |
|
Weyerhaeuser Company Total Company Statistics |
||||||||||||||||||||||||
|
Q3.2022 Analyst Package |
||||||||||||||||||||||||
|
Special Items Included in Net Earnings (Income Tax Affected) |
||||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
in millions |
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
||||||||||||||||||
|
Net earnings |
$ |
771 |
$ |
788 |
$ |
310 |
$ |
482 |
$ |
1,869 |
$ |
2,191 |
||||||||||||
|
Gain on sale of timberlands |
— |
— |
— |
(32) |
— |
(32) |
||||||||||||||||||
|
Loss on debt extinguishment(1) |
207 |
— |
— |
— |
207 |
— |
||||||||||||||||||
|
Net earnings before special items(2) |
$ |
978 |
$ |
788 |
$ |
310 |
$ |
450 |
$ |
2,076 |
$ |
2,159 |
||||||||||||
|
Q1 |
Q2 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
|||||||||||||||||||
|
Net earnings per diluted share |
$ |
1.03 |
$ |
1.06 |
$ |
0.42 |
$ |
0.64 |
$ |
2.51 |
$ |
2.92 |
||||||||||||
|
Gain on sale of timberlands |
— |
— |
— |
(0.04) |
— |
(0.04) |
||||||||||||||||||
|
Loss on debt extinguishment(1) |
0.28 |
— |
— |
— |
0.28 |
— |
||||||||||||||||||
|
Net earnings per diluted share before special items(2) |
$ |
1.31 |
$ |
1.06 |
$ |
0.42 |
$ |
0.60 |
$ |
2.79 |
$ |
2.88 |
||||||||||||
|
(1) |
We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022. |
|
(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 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
in millions |
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
||||||||||||||||||
|
Pension and post-employment costs: |
||||||||||||||||||||||||
|
Pension and post-employment service costs |
$ |
10 |
$ |
8 |
$ |
9 |
$ |
11 |
$ |
27 |
$ |
32 |
||||||||||||
|
Non-operating pension and other post-employment benefit costs |
15 |
11 |
12 |
5 |
38 |
14 |
||||||||||||||||||
|
Total company pension and post-employment costs |
$ |
25 |
$ |
19 |
$ |
21 |
$ |
16 |
$ |
65 |
$ |
46 |
||||||||||||
|
Weyerhaeuser Company |
||||||||||||||||
|
Consolidated Balance Sheet |
||||||||||||||||
|
in millions |
March 31, 2022 |
June 30, 2022 |
September 30, 2022 |
December 31, 2021 |
||||||||||||
|
ASSETS |
||||||||||||||||
|
Current assets: |
||||||||||||||||
|
Cash and cash equivalents |
$ |
1,205 |
$ |
1,723 |
$ |
1,920 |
$ |
1,879 |
||||||||
|
Receivables, net |
745 |
547 |
425 |
507 |
||||||||||||
|
Receivables for taxes |
8 |
6 |
15 |
24 |
||||||||||||
|
Inventories |
611 |
571 |
542 |
520 |
||||||||||||
|
Prepaid expenses and other current assets |
206 |
165 |
146 |
205 |
||||||||||||
|
Total current assets |
2,775 |
3,012 |
3,048 |
3,135 |
||||||||||||
|
Property and equipment, net |
2,026 |
2,000 |
1,997 |
2,057 |
||||||||||||
|
Construction in progress |
203 |
233 |
245 |
175 |
||||||||||||
|
Timber and timberlands at cost, less depletion |
11,469 |
11,706 |
11,681 |
11,510 |
||||||||||||
|
Minerals and mineral rights, less depletion |
252 |
248 |
245 |
255 |
||||||||||||
|
Deferred tax assets |
15 |
11 |
10 |
17 |
||||||||||||
|
Other assets |
376 |
370 |
364 |
503 |
||||||||||||
|
Total assets |
$ |
17,116 |
$ |
17,580 |
$ |
17,590 |
$ |
17,652 |
||||||||
|
LIABILITIES AND EQUITY |
||||||||||||||||
|
Current liabilities: |
||||||||||||||||
|
Current maturities of long-term debt |
$ |
— |
$ |
— |
$ |
118 |
$ |
— |
||||||||
|
Accounts payable |
310 |
283 |
272 |
281 |
||||||||||||
|
Accrued liabilities |
674 |
658 |
664 |
673 |
||||||||||||
|
Total current liabilities |
984 |
941 |
1,054 |
954 |
||||||||||||
|
Long-term debt, net |
5,053 |
5,053 |
4,935 |
5,099 |
||||||||||||
|
Deferred tax liabilities |
66 |
83 |
89 |
46 |
||||||||||||
|
Deferred pension and other post-employment benefits |
432 |
347 |
335 |
440 |
||||||||||||
|
Other liabilities |
344 |
340 |
339 |
346 |
||||||||||||
|
Total liabilities |
6,879 |
6,764 |
6,752 |
6,885 |
||||||||||||
|
Total equity |
10,237 |
10,816 |
10,838 |
10,767 |
||||||||||||
|
Total liabilities and equity |
$ |
17,116 |
$ |
17,580 |
$ |
17,590 |
$ |
17,652 |
||||||||
|
Weyerhaeuser Company Q3.2022 Analyst Package Preliminary results (unaudited) |
||||||||||||||||||||||||
|
Consolidated Statement of Cash Flows |
||||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Year-to-Date |
|||||||||||||||||||||
|
in millions |
March 31, 2022 |
June 30, 2022 |
Sept 30, 2022 |
Sept 30, 2021 |
Sept 30, 2022 |
Sept 30, 2021 |
||||||||||||||||||
|
Cash flows from operations: |
||||||||||||||||||||||||
|
Net earnings |
$ |
771 |
$ |
788 |
$ |
310 |
$ |
482 |
$ |
1,869 |
$ |
2,191 |
||||||||||||
|
Noncash charges (credits) to earnings: |
||||||||||||||||||||||||
|
Depreciation, depletion and amortization |
122 |
119 |
119 |
118 |
360 |
356 |
||||||||||||||||||
|
Basis of real estate sold |
31 |
39 |
7 |
11 |
77 |
62 |
||||||||||||||||||
|
Deferred income taxes, net |
14 |
— |
3 |
(3) |
17 |
16 |
||||||||||||||||||
|
Pension and other post-employment benefits |
25 |
19 |
21 |
16 |
65 |
46 |
||||||||||||||||||
|
Share-based compensation expense |
8 |
9 |
8 |
8 |
25 |
23 |
||||||||||||||||||
|
Gain on sale of timberlands |
— |
— |
— |
(32) |
— |
(32) |
||||||||||||||||||
|
Loss on debt extinguishment |
276 |
— |
— |
— |
276 |
— |
||||||||||||||||||
|
Change in: |
||||||||||||||||||||||||
|
Receivables, net |
(238) |
198 |
121 |
205 |
81 |
(47) |
||||||||||||||||||
|
Receivables and payables for taxes |
110 |
(83) |
(12) |
(143) |
15 |
93 |
||||||||||||||||||
|
Inventories |
(87) |
29 |
28 |
(4) |
(30) |
(55) |
||||||||||||||||||
|
Prepaid expenses and other current assets |
(1) |
(2) |
(4) |
(20) |
(7) |
(21) |
||||||||||||||||||
|
Accounts payable and accrued liabilities |
(62) |
47 |
(8) |
51 |
(23) |
116 |
||||||||||||||||||
|
Pension and post-employment benefit contributions and payments |
(4) |
(10) |
(5) |
(23) |
(19) |
(56) |
||||||||||||||||||
|
Other |
(8) |
(7) |
(26) |
(7) |
(41) |
(27) |
||||||||||||||||||
|
Net cash from operations |
$ |
957 |
$ |
1,146 |
$ |
562 |
$ |
659 |
$ |
2,665 |
$ |
2,665 |
||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||||||||||
|
Capital expenditures for property and equipment |
$ |
(50) |
$ |
(71) |
$ |
(86) |
$ |
(91) |
$ |
(207) |
$ |
(184) |
||||||||||||
|
Capital expenditures for timberlands reforestation |
(20) |
(10) |
(8) |
(7) |
(38) |
(39) |
||||||||||||||||||
|
Acquisition of timberlands |
(18) |
(265) |
(3) |
— |
(286) |
(149) |
||||||||||||||||||
|
Proceeds from sale of timberlands |
— |
— |
— |
261 |
— |
261 |
||||||||||||||||||
|
Other |
1 |
— |
— |
2 |
1 |
3 |
||||||||||||||||||
|
Net cash from investing activities |
$ |
(87) |
$ |
(346) |
$ |
(97) |
$ |
165 |
$ |
(530) |
$ |
(108) |
||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||||||||||
|
Cash dividends on common shares |
$ |
(1,218) |
$ |
(134) |
$ |
(133) |
$ |
(127) |
$ |
(1,485) |
$ |
(382) |
||||||||||||
|
Net proceeds from issuance of long-term debt |
881 |
— |
— |
— |
881 |
— |
||||||||||||||||||
|
Payments on long-term debt |
(1,203) |
— |
— |
— |
(1,203) |
(225) |
||||||||||||||||||
|
Proceeds from exercise of stock options |
12 |
2 |
1 |
1 |
15 |
46 |
||||||||||||||||||
|
Repurchases of common shares |
(118) |
(141) |
(143) |
(26) |
(402) |
(26) |
||||||||||||||||||
|
Other |
(18) |
(1) |
(1) |
(3) |
(20) |
(19) |
||||||||||||||||||
|
Net cash from financing activities |
$ |
(1,664) |
$ |
(274) |
$ |
(276) |
$ |
(155) |
$ |
(2,214) |
$ |
(606) |
||||||||||||
|
Net change in cash, cash equivalents and restricted cash |
$ |
(794) |
$ |
526 |
$ |
189 |
$ |
669 |
$ |
(79) |
$ |
1,951 |
||||||||||||
|
Cash, cash equivalents and restricted cash at beginning of period |
1,999 |
1,205 |
1,731 |
1,777 |
1,999 |
495 |
||||||||||||||||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
1,205 |
$ |
1,731 |
$ |
1,920 |
$ |
2,446 |
$ |
1,920 |
$ |
2,446 |
||||||||||||
|
Cash paid during the period for: |
||||||||||||||||||||||||
|
Interest, net of amounts capitalized |
$ |
78 |
$ |
71 |
$ |
62 |
$ |
83 |
$ |
211 |
$ |
237 |
||||||||||||
|
Income taxes, net of refunds |
$ |
85 |
$ |
269 |
$ |
92 |
$ |
231 |
$ |
446 |
$ |
494 |
||||||||||||
|
Weyerhaeuser Company |
Timberlands Segment |
|||||||||||||||||||||||
|
Q3.2022 Analyst Package Preliminary results (unaudited) |
||||||||||||||||||||||||
|
Segment Statement of Operations |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Sales to unaffiliated customers |
$ |
465 |
$ |
515 |
$ |
441 |
$ |
423 |
$ |
1,421 |
$ |
1,207 |
||||||||||||
|
Intersegment sales |
161 |
156 |
133 |
129 |
450 |
399 |
||||||||||||||||||
|
Total net sales |
626 |
671 |
574 |
552 |
1,871 |
1,606 |
||||||||||||||||||
|
Costs of sales |
423 |
495 |
442 |
428 |
1,360 |
1,218 |
||||||||||||||||||
|
Gross margin |
203 |
176 |
132 |
124 |
511 |
388 |
||||||||||||||||||
|
Selling expenses |
— |
— |
1 |
1 |
1 |
1 |
||||||||||||||||||
|
General and administrative expenses |
24 |
24 |
25 |
23 |
73 |
69 |
||||||||||||||||||
|
Other operating income, net |
(3) |
(1) |
(1) |
(33) |
(5) |
(36) |
||||||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
182 |
$ |
153 |
$ |
107 |
$ |
133 |
$ |
442 |
$ |
354 |
||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Operating income |
$ |
182 |
$ |
153 |
$ |
107 |
$ |
133 |
$ |
442 |
$ |
354 |
||||||||||||
|
Depreciation, depletion and amortization |
65 |
66 |
61 |
64 |
192 |
195 |
||||||||||||||||||
|
Special items |
— |
— |
— |
(32) |
— |
(32) |
||||||||||||||||||
|
Adjusted EBITDA(1) |
$ |
247 |
$ |
219 |
$ |
168 |
$ |
165 |
$ |
634 |
$ |
517 |
||||||||||||
|
(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 |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Gain on sale of timberlands |
$ |
— |
$ |
— |
$ |
— |
$ |
32 |
$ |
— |
$ |
32 |
||||||||||||
|
Selected Segment Items |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Total decrease (increase) in working capital(2) |
$ |
(34) |
$ |
57 |
$ |
14 |
$ |
1 |
$ |
37 |
$ |
(10) |
||||||||||||
|
Cash spent for capital expenditures(3) |
$ |
(30) |
$ |
(23) |
$ |
(22) |
$ |
(27) |
$ |
(75) |
$ |
(76) |
||||||||||||
|
(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. |
|
(3) |
Does not include cash spent for the acquisition of timberlands. |
|
Segment Statistics(4) |
|||||||||||||||||||||||||
|
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||||
|
Third Party |
Delivered logs: |
||||||||||||||||||||||||
|
Net Sales |
West |
$ |
259 |
$ |
308 |
$ |
224 |
$ |
226 |
$ |
791 |
$ |
649 |
||||||||||||
|
(millions) |
South |
154 |
160 |
166 |
153 |
480 |
429 |
||||||||||||||||||
|
North |
15 |
10 |
15 |
13 |
40 |
38 |
|||||||||||||||||||
|
Total delivered logs |
428 |
478 |
405 |
392 |
1,311 |
1,116 |
|||||||||||||||||||
|
Stumpage and pay-as-cut timber |
9 |
11 |
10 |
9 |
30 |
22 |
|||||||||||||||||||
|
Recreational and other lease revenue |
17 |
16 |
18 |
16 |
51 |
48 |
|||||||||||||||||||
|
Other revenue |
11 |
10 |
8 |
6 |
29 |
21 |
|||||||||||||||||||
|
Total |
$ |
465 |
$ |
515 |
$ |
441 |
$ |
423 |
$ |
1,421 |
$ |
1,207 |
|||||||||||||
|
Delivered Logs |
West |
$ |
161.29 |
$ |
173.35 |
$ |
158.59 |
$ |
145.64 |
$ |
164.97 |
$ |
138.06 |
||||||||||||
|
Third Party Sales |
South |
$ |
37.15 |
$ |
38.47 |
$ |
38.59 |
$ |
35.56 |
$ |
38.08 |
$ |
35.08 |
||||||||||||
|
Realizations (per ton) |
North |
$ |
72.79 |
$ |
83.93 |
$ |
83.84 |
$ |
64.93 |
$ |
79.26 |
$ |
65.97 |
||||||||||||
|
Delivered Logs |
West |
1,604 |
1,778 |
1,411 |
1,555 |
4,793 |
4,702 |
||||||||||||||||||
|
Third Party Sales |
South |
4,135 |
4,167 |
4,310 |
4,304 |
12,612 |
12,236 |
||||||||||||||||||
|
Volumes (tons, thousands) |
North |
210 |
118 |
177 |
195 |
505 |
571 |
||||||||||||||||||
|
Fee Harvest Volumes |
West |
2,240 |
2,085 |
1,760 |
1,930 |
6,085 |
6,130 |
||||||||||||||||||
|
(tons, thousands) |
South |
5,842 |
6,159 |
6,112 |
5,912 |
18,113 |
17,144 |
||||||||||||||||||
|
North |
278 |
180 |
245 |
264 |
703 |
800 |
|||||||||||||||||||
|
(4) |
Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. |
|
Weyerhaeuser Company |
Real Estate, Energy & Natural Resources Segment |
|||||||||||||||||||||||
|
Q3.2022 Analyst Package Preliminary results (unaudited) |
||||||||||||||||||||||||
|
Segment Statement of Operations |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Net sales |
$ |
128 |
$ |
117 |
$ |
68 |
$ |
69 |
$ |
313 |
$ |
285 |
||||||||||||
|
Costs of sales |
41 |
45 |
14 |
18 |
100 |
93 |
||||||||||||||||||
|
Gross margin |
87 |
72 |
54 |
51 |
213 |
192 |
||||||||||||||||||
|
General and administrative expenses |
6 |
7 |
6 |
6 |
19 |
18 |
||||||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
81 |
$ |
65 |
$ |
48 |
$ |
45 |
$ |
194 |
$ |
174 |
||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Operating income |
$ |
81 |
$ |
65 |
$ |
48 |
$ |
45 |
$ |
194 |
$ |
174 |
||||||||||||
|
Depreciation, depletion and amortization |
4 |
3 |
5 |
4 |
12 |
11 |
||||||||||||||||||
|
Basis of real estate sold |
31 |
39 |
7 |
11 |
77 |
62 |
||||||||||||||||||
|
Adjusted EBITDA(1) |
$ |
116 |
$ |
107 |
$ |
60 |
$ |
60 |
$ |
283 |
$ |
247 |
||||||||||||
|
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Selected Segment Items |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Cash spent for capital expenditures |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||||||||
|
Segment Statistics |
|||||||||||||||||||||||||
|
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||||
|
Net Sales |
Real Estate |
$ |
97 |
$ |
90 |
$ |
30 |
$ |
45 |
$ |
217 |
$ |
212 |
||||||||||||
|
(millions) |
Energy and Natural Resources |
31 |
27 |
38 |
24 |
96 |
73 |
||||||||||||||||||
|
Total |
$ |
128 |
$ |
117 |
$ |
68 |
$ |
69 |
$ |
313 |
$ |
285 |
|||||||||||||
|
Acres Sold |
Real Estate |
24,126 |
26,906 |
5,014 |
11,037 |
56,046 |
48,907 |
||||||||||||||||||
|
Price per Acre |
Real Estate |
$ |
3,785 |
$ |
3,215 |
$ |
5,046 |
$ |
4,005 |
$ |
3,624 |
$ |
3,632 |
||||||||||||
|
Basis as a Percent of Real Estate Net Sales |
Real Estate |
32 |
% |
43 |
% |
23 |
% |
24 |
% |
35 |
% |
29 |
% |
||||||||||||
|
Weyerhaeuser Company Wood Products Segment |
||||||||||||||||||||||||
|
Q3.2022 Analyst Package Preliminary results (unaudited) |
||||||||||||||||||||||||
|
Segment Statement of Operations |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Net sales |
$ |
2,519 |
$ |
2,341 |
$ |
1,767 |
$ |
1,853 |
$ |
6,627 |
$ |
6,503 |
||||||||||||
|
Costs of sales |
1,276 |
1,414 |
1,360 |
1,270 |
4,050 |
3,623 |
||||||||||||||||||
|
Gross margin |
1,243 |
927 |
407 |
583 |
2,577 |
2,880 |
||||||||||||||||||
|
Selling expenses |
21 |
21 |
22 |
21 |
64 |
61 |
||||||||||||||||||
|
General and administrative expenses |
35 |
35 |
36 |
34 |
106 |
104 |
||||||||||||||||||
|
Other operating costs, net |
5 |
8 |
5 |
11 |
18 |
20 |
||||||||||||||||||
|
Operating income and Net contribution to earnings |
$ |
1,182 |
$ |
863 |
$ |
344 |
$ |
517 |
$ |
2,389 |
$ |
2,695 |
||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Operating income |
$ |
1,182 |
$ |
863 |
$ |
344 |
$ |
517 |
$ |
2,389 |
$ |
2,695 |
||||||||||||
|
Depreciation, depletion and amortization |
51 |
49 |
51 |
48 |
151 |
145 |
||||||||||||||||||
|
Adjusted EBITDA(1) |
$ |
1,233 |
$ |
912 |
$ |
395 |
$ |
565 |
$ |
2,540 |
$ |
2,840 |
||||||||||||
|
(1) |
See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Selected Segment Items |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Total decrease (increase) in working capital(2) |
$ |
(371) |
$ |
205 |
$ |
136 |
$ |
249 |
$ |
(30) |
$ |
(12) |
||||||||||||
|
Cash spent for capital expenditures |
$ |
(39) |
$ |
(56) |
$ |
(68) |
$ |
(70) |
$ |
(163) |
$ |
(146) |
||||||||||||
|
(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 |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
|||||||||||||||||||
|
Structural Lumber |
Third party net sales |
$ |
1,206 |
$ |
998 |
$ |
676 |
$ |
681 |
$ |
2,880 |
$ |
3,020 |
||||||||||||
|
(volumes presented |
Third party sales realizations |
$ |
1,041 |
$ |
776 |
$ |
556 |
$ |
516 |
$ |
786 |
$ |
812 |
||||||||||||
|
in board feet) |
Third party sales volumes(3) |
1,157 |
1,289 |
1,216 |
1,320 |
3,662 |
3,717 |
||||||||||||||||||
|
Production volumes |
1,203 |
1,232 |
1,140 |
1,222 |
3,575 |
3,667 |
|||||||||||||||||||
|
Oriented Strand |
Third party net sales |
$ |
564 |
$ |
497 |
$ |
287 |
$ |
470 |
$ |
1,348 |
$ |
1,513 |
||||||||||||
|
Board |
Third party sales realizations |
$ |
787 |
$ |
676 |
$ |
401 |
$ |
691 |
$ |
622 |
$ |
735 |
||||||||||||
|
(volumes presented |
Third party sales volumes(3) |
717 |
735 |
715 |
681 |
2,167 |
2,058 |
||||||||||||||||||
|
in square feet 3/8″) |
Production volumes |
739 |
758 |
735 |
715 |
2,232 |
2,140 |
||||||||||||||||||
|
Engineered Solid |
Third party net sales |
$ |
196 |
$ |
247 |
$ |
233 |
$ |
183 |
$ |
676 |
$ |
491 |
||||||||||||
|
Section |
Third party sales realizations |
$ |
3,433 |
$ |
3,863 |
$ |
3,946 |
$ |
3,092 |
$ |
3,754 |
$ |
2,628 |
||||||||||||
|
(volumes presented |
Third party sales volumes(3) |
5.7 |
6.4 |
5.9 |
5.9 |
18.0 |
18.7 |
||||||||||||||||||
|
in cubic feet) |
Production volumes |
5.7 |
6.4 |
6.0 |
5.8 |
18.1 |
18.0 |
||||||||||||||||||
|
Engineered |
Third party net sales |
$ |
137 |
$ |
168 |
$ |
166 |
$ |
128 |
$ |
471 |
$ |
315 |
||||||||||||
|
I-joists |
Third party sales realizations |
$ |
2,969 |
$ |
3,432 |
$ |
3,525 |
$ |
2,600 |
$ |
3,312 |
$ |
2,119 |
||||||||||||
|
(volumes presented |
Third party sales volumes(3) |
46 |
49 |
47 |
49 |
142 |
149 |
||||||||||||||||||
|
in lineal feet) |
Production volumes |
44 |
50 |
47 |
49 |
141 |
144 |
||||||||||||||||||
|
Softwood Plywood |
Third party net sales |
$ |
58 |
$ |
53 |
$ |
47 |
$ |
45 |
$ |
158 |
$ |
170 |
||||||||||||
|
(volumes presented |
Third party sales realizations |
$ |
783 |
$ |
746 |
$ |
632 |
$ |
653 |
$ |
720 |
$ |
710 |
||||||||||||
|
in square feet 3/8″) |
Third party sales volumes(3) |
75 |
70 |
74 |
69 |
219 |
240 |
||||||||||||||||||
|
Production volumes |
66 |
67 |
64 |
61 |
197 |
203 |
|||||||||||||||||||
|
Medium Density |
Third party net sales |
$ |
48 |
$ |
53 |
$ |
50 |
$ |
52 |
$ |
151 |
$ |
143 |
||||||||||||
|
Fiberboard |
Third party sales realizations |
$ |
1,082 |
$ |
1,174 |
$ |
1,274 |
$ |
943 |
$ |
1,173 |
$ |
885 |
||||||||||||
|
(volumes presented |
Third party sales volumes(3) |
44 |
45 |
40 |
55 |
129 |
162 |
||||||||||||||||||
|
in square feet 3/4″) |
Production volumes |
44 |
48 |
38 |
55 |
130 |
163 |
||||||||||||||||||
|
(3) |
Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
|
Weyerhaeuser Company |
Unallocated Items |
|
Q3.2022 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 post-employment 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 |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Unallocated corporate function and variable compensation expense |
$ |
(31) |
$ |
(36) |
$ |
(36) |
$ |
(33) |
$ |
(103) |
$ |
(94) |
||||||||||||
|
Liability classified share-based compensation |
1 |
2 |
2 |
(1) |
5 |
(2) |
||||||||||||||||||
|
Foreign exchange gain |
— |
3 |
9 |
5 |
12 |
2 |
||||||||||||||||||
|
Elimination of intersegment profit in inventory and LIFO |
(59) |
18 |
2 |
12 |
(39) |
(33) |
||||||||||||||||||
|
Other, net |
(12) |
(21) |
(19) |
(29) |
(52) |
(62) |
||||||||||||||||||
|
Operating loss |
(101) |
(34) |
(42) |
(46) |
(177) |
(189) |
||||||||||||||||||
|
Non-operating pension and other post-employment benefit costs |
(15) |
(11) |
(12) |
(5) |
(38) |
(14) |
||||||||||||||||||
|
Interest income and other |
(1) |
1 |
9 |
1 |
9 |
4 |
||||||||||||||||||
|
Net charge to earnings |
$ |
(117) |
$ |
(44) |
$ |
(45) |
$ |
(50) |
$ |
(206) |
$ |
(199) |
||||||||||||
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Operating loss |
$ |
(101) |
$ |
(34) |
$ |
(42) |
$ |
(46) |
$ |
(177) |
$ |
(189) |
||||||||||||
|
Depreciation, depletion and amortization |
2 |
1 |
2 |
2 |
5 |
5 |
||||||||||||||||||
|
Adjusted EBITDA(1) |
$ |
(99) |
$ |
(33) |
$ |
(40) |
$ |
(44) |
$ |
(172) |
$ |
(184) |
||||||||||||
|
(1) |
See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. |
|
Unallocated Selected Items |
||||||||||||||||||||||||
|
in millions |
Q1.2022 |
Q2.2022 |
Q3.2022 |
Q3.2021 |
YTD.2022 |
YTD.2021 |
||||||||||||||||||
|
Cash spent for capital expenditures |
$ |
(1) |
$ |
(2) |
$ |
(4) |
$ |
(1) |
$ |
(7) |
$ |
(1) |
||||||||||||
|
For more information contact: |
Analysts – Andy Taylor (206) 539-3907 |
|
|
Media–Nancy Thompson (919) 861-0342 |
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SOURCE Weyerhaeuser Company
