WEYERHAEUSER COMPANY 
FEDERAL WAY, Wash., May 1, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings to common shareholders of $90 million, or 17 cents per diluted share, on net sales of $1.7 billion. This compares with net earnings of $183 million, or 31 cents per diluted share, on net sales from continuing operations of $1.7 billion for the same period last year.
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Excluding after-tax charges of $9 million for special items, the company reported net earnings of $99 million, or 19 cents per diluted share for the first quarter. This compares with net earnings from continuing operations before special items of $143 million for the same period last year and $145 million for fourth quarter 2014.
"We are pleased with our first quarter performance in Timberlands and Wood Products, as operational excellence efforts resulted in higher earnings compared with the fourth quarter in both businesses despite weaker market conditions," said Doyle Simons, president and chief executive officer. "Our Cellulose Fibers business was challenged by a strengthening U.S. dollar, West Coast port disruptions, and a slower than expected restart of our largest fluff mill after a scheduled maintenance outage in the quarter. We repurchased over $250 million of common shares in the quarter, and have now completed 65 percent of our authorization. We look forward to an improving spring selling season and continue to expect measured growth in U.S. housing starts."
WEYERHAEUSER FINANCIAL HIGHLIGHTS 2014 2015 2014
(millions, except per share data) 4Q 1Q 1Q
Net sales from continuing operations $1,788 $1,721 $1,736
Net earnings attributable to Weyerhaeuser
common shareholders(1) $166 $90 $183
Weighted average shares outstanding,
diluted(2) 529 527 589
Earnings per diluted share $0.31 $0.17 $0.31
Earnings per diluted share from
continuing operations $0.31 $0.17 $0.29
Net earnings from continuing operations
before special items(3) $145 $99 $143
Earnings per diluted share from
continuing operations before special
items $0.27 $0.19 $0.24
Net change in cash and cash
equivalents(4) ($40) ($422) ($53)
Cash and cash equivalents at end of
period(4) $1,580 $1,158 $777
((1)) First quarter 2014 includes net earnings from discontinued operations of $10 million.
((2)) During the third quarter of 2014 Weyerhaeuser retired approximately 59 million shares tendered under the exchange offer associated with the divestiture of Weyerhaeuser Real Estate Company. Through first quarter 2015, Weyerhaeuser repurchased approximately 13 million common shares under the repurchase program announced in third quarter 2014. At the end of the first quarter the company had approximately 519 million common shares outstanding.
((3)) Special items for the first quarter 2015 include a charge for impairment on a nonstrategic asset. Special items for the first and fourth quarters of 2014 include gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative. First quarter 2014 also includes a gain on a nonstrategic asset sale.
((4)) Net change in cash and equivalents, and cash and cash equivalents at the end of the period exclude discontinued operations.
TIMBERLANDS
FINANCIAL HIGHLIGHTS (millions) 4Q 2014 1Q 2015 Change
------- ------- ------
Net sales $359 $351 ($8)
Contribution to pre-tax earnings $143 $162 $19
1Q 2015 Performance -- Cost efficiencies from operational excellence initiatives across the segment more than offset lower Western log realizations. In the South, seasonal decreases in fee harvest volumes were partially offset by seasonally lower silviculture expenses. Earnings from the disposition of nonstrategic timberlands increased by $14 million compared with fourth quarter 2014.
2Q 2015 Outlook -- Weyerhaeuser expects lower earnings from the Timberlands segment in the second quarter due to a decrease in realizations for Western logs and lower earnings from the disposition of nonstrategic timberlands.
WOOD PRODUCTS
FINANCIAL HIGHLIGHTS (millions) 4Q 2014 1Q 2015 Change
------- ------- ------
Net sales $947 $923 ($24)
Contribution to pre-tax earnings $56 $62 $6
1Q 2015 Performance -- Manufacturing costs improved due to operational excellence initiatives across our system, and higher production volumes for engineered wood products. These improvements were partially offset by lower average sales realizations across all product lines.
2Q 2015 Outlook -- Weyerhaeuser expects significantly higher earnings from the Wood Products segment in the second quarter. The company anticipates seasonally higher sales volumes across all product lines and average sales realizations for lumber and oriented strand board comparable to the first quarter. The company also expects lower Western log costs and lower per unit manufacturing costs.
CELLULOSE FIBERS
FINANCIAL HIGHLIGHTS
(millions) 4Q 2014 1Q 2015 Change
------- ------- ------
Net sales $482 $447 ($35)
Contribution to pre-
tax earnings $87 $33 ($54)
1Q 2015 Performance -- Average pulp sales realizations and volumes decreased, and costs increased primarily due to a scheduled maintenance outage at our largest fluff mill. While the restart took longer than anticipated, the mill is now running well. The West Coast port disruptions resulted in an extensive production curtailment in our liquid packaging operation and higher transportation and warehousing costs throughout the segment.
2Q 2015 Outlook -- Weyerhaeuser expects lower earnings from the Cellulose Fibers segment in the second quarter. The company anticipates lower average pulp sales realizations. Costs will increase due to an extended pulp mill outage for scheduled maintenance and installation of energy-related capital improvements.
UNALLOCATED ITEMS
Due to a strengthening U.S. dollar, first quarter 2015 earnings include a $29 million pre-tax charge ($0.04 per share after-tax) for noncash foreign exchange losses on debt held by our Canadian entity.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood and cellulose fibers products. Our company is a real estate investment trust. In 2014, our continuing operations generated $7.4 billion in sales and employed approximately 12,800 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on May 1 to discuss first quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on May 1.
To join the conference call from within North America, dial 877-296-9413 (access code: 28308831) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28308831). Replays will be available for one week at 855-859-2056 (access code: 28308831) from within North America and at 404-537-3406 (access code: 28308831) 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. These statements are based on our current expectations and various assumptions that are subject to risks and uncertainties. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news release.
Some forward-looking statements discuss the company's plans, strategies, expectations and intentions. They use words such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans." In addition, these words may use the positive or negative or other variations of those and similar words.
This release contains forward-looking statements regarding the company's expectations during the second quarter of 2015, including with respect to: earnings; log realizations and dispositions of non-strategic timberlands in Timberlands; sales volumes across Wood Products product lines, log and manufacturing costs and expected realizations for lumber and oriented strand board in Wood Products; and maintenance and capital costs, and realizations for pulp in Cellulose Fibers.
Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:
-- the effect of general economic conditions, including employment rates,
housing starts, interest rate levels, availability of financing for home
mortgages, and strength of the U.S. dollar;
-- market demand for the company's products, which is related to the
strength of the various U.S. business segments and U.S. and
international economic conditions;
-- performance of the company's manufacturing operations, including
maintenance requirements;
-- the level of competition from domestic and foreign producers;
-- the successful execution of internal performance plans, including
restructurings and cost reduction initiatives;
-- raw material prices;
-- energy prices;
-- the effect of weather;
-- the risk of loss from fires, floods, windstorms, hurricanes, pest
infestation and other natural disasters;
-- transportation 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
company stock on charges for stock-based compensation;
-- changes in accounting principles; and
-- other factors described in the company's filings with the SEC, including
the "Risk Factors" section in the company's annual report on Form 10-K
for the year ended December 31, 2014.
The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro, yen and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports and disruptions in shipping and transportation also may affect the company.
View our financials in a printer-friendly PDF.
For more information Analysts -Beth Baum or
contact: Denise Merle (253)
924-2058
Media -Anthony Chavez
(253) 924-7148
Weyerhaeuser Company Exhibit 99.2
Q1.2015 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations
in millions Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Net Sales $1,788 $1,721 $1,736
Cost of products sold 1,399 1,385 1,361
----- ----- -----
Gross margin 389 336 375
Selling expenses 29 28 28
General and
administrative expenses 89 74 88
Research and development
expenses 8 5 7
Charges for
restructuring, closures
and impairments 7 14 19
Other operating costs
(income), net (38) 15 (75)
--- --- ---
Operating income 294 200 308
Interest income and other 10 3 9
Interest expense, net of
capitalized interest (90) (83) (83)
--- --- ---
Earnings from continuing
operations before income
taxes 214 120 234
Income taxes (37) (19) (50)
--- --- ---
Earnings from continuing
operations 177 101 184
Earnings from
discontinued operations,
net of income taxes - - 10
--- --- ---
Net earnings 177 101 194
Dividends on preference
shares (11) (11) (11)
--- --- ---
Net earnings attributable
to Weyerhaeuser common
shareholders $166 $90 $183
==== === ====
Per Share Information
Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Earnings per share attributable to Weyerhaeuser common
shareholders, basic:
Continuing operations $0.32 $0.17 $0.29
Discontinued operations - - 0.02
--- --- ----
Net earnings per share $0.32 $0.17 $0.31
===== ===== =====
Earnings per share attributable to Weyerhaeuser common
shareholders, diluted:
Continuing operations $0.31 $0.17 $0.29
Discontinued operations - - 0.02
--- --- ----
Net earnings per share $0.31 $0.17 $0.31
===== ===== =====
Dividends paid per common
share $0.29 $0.29 $0.22
Weighted average shares outstanding (in thousands):
Basic 524,838 523,426 584,915
Diluted 529,411 527,423 589,312
Common shares outstanding
at end of period (in
thousands) 524,474 518,735 584,961
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Net earnings $177 $101 $194
Earnings from
discontinued operations,
net of income taxes - - (10)
Interest income and other (10) (3) (9)
Interest expense, net of
capitalized interest 90 83 83
Income taxes 37 19 50
--- --- ---
Operating income 294 200 308
Depreciation, depletion
and amortization 125 123 123
Non-operating pension
and postretirement
credits (12) (3) (10)
Special items (31) 13 (49)
--- --- ---
Adjusted EBITDA* $376 $333 $372
==== ==== ====
* Non-GAAP measure - see page 8 for definition.
Weyerhaeuser Company
Q1.2015 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet
in millions March 31, December 31,
2015 2014
---- ----
ASSETS
------
Current assets:
Cash and cash
equivalents $1,158 $1,580
Receivables, less
allowances 539 525
Receivables for taxes 23 25
Inventories 645 595
Prepaid expenses 95 80
Deferred tax assets 192 228
--- ---
Total current assets 2,652 3,033
Property and
equipment, net 2,524 2,623
Construction in
progress 171 131
Timber and timberlands
at cost, less
depletion charged to
disposals 6,552 6,530
Investments in and
advances to equity
affiliates 183 188
Goodwill 40 40
Deferred tax assets 3 8
Other assets 269 289
Restricted financial
investments held by
variable interest
entities 615 615
--- ---
Total assets $13,009 $13,457
======= =======
LIABILITIES AND EQUITY
----------------------
Current liabilities:
Accounts payable $319 $331
Accrued liabilities 533 587
--- ---
Total current
liabilities 852 918
Long-term debt 4,891 4,891
Long-term debt
(nonrecourse to the
company) held by
variable interest
entities 511 511
Deferred income taxes 195 206
Deferred pension and
other postretirement
benefits 1,249 1,319
Other liabilities 284 308
--- ---
Total liabilities 7,982 8,153
Total equity 5,027 5,304
----- -----
Total liabilities and
equity $13,009 $13,457
======= =======
Weyerhaeuser Company
Q1.2015 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows
in millions Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Cash flows from operations:
Net earnings $177 $101 $194
Noncash charges (credits) to income:
Depreciation, depletion and
amortization 125 123 126
Deferred income taxes, net 35 13 36
Pension and other postretirement
benefits (48) 10 (47)
Share-based compensation expense 11 8 9
Charges for impairment of assets 1 13 -
Net gains on dispositions of assets
and operations (2) (16) (25)
Foreign exchange transaction losses 12 29 14
Change in:
Receivables less allowances 57 (16) (1)
Receivable for taxes (1) 2 67
Inventories (20) (57) (88)
Real estate and land - - (72)
Prepaid expenses 11 (11) 3
Accounts payable and accrued
liabilities (22) (91) (80)
Deposits on land positions and
other assets - - 12
Pension and postretirement
contributions (16) (20) (33)
Other (16) (11) (6)
--- --- ---
Net cash from operations 304 77 109
--- --- ---
Cash flows from investing activities:
Property and equipment (115) (71) (51)
Timberlands reforestation (9) (18) (14)
Acquisition of timberlands (3) (32) -
Proceeds from sale of assets 4 2 19
Other (1) - -
--- --- ---
Cash from investing activities (124) (119) (46)
---- ---- ---
Cash flows from financing activities:
Cash dividends on common shares (152) (152) (129)
Cash dividends on preference shares (22) - -
Change in book overdrafts - - (6)
Exercises of stock options 35 21 15
Repurchase of common stock (80) (253) -
Other (1) 4 2
--- --- ---
Cash from financing activities (220) (380) (118)
---- ---- ----
Net change in cash and cash
equivalents (40) (422) (55)
Cash and cash equivalents at
beginning of period 1,620 1,580 835
----- ----- ---
Cash and cash equivalents at end of
period $1,580 $1,158 $780
====== ====== ====
Cash paid (received) during the year for:
Interest, net of amount capitalized $66 $114 $101
Income taxes $3 $1 $(50)
Weyerhaeuser Company Total Company Statistics
Q1.2015 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings
in millions Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Net earnings attributable to
Weyerhaeuser common
shareholders $166 $90 $183
Restructuring, impairments
and other charges 4 9 13
Gain on sale of non-
strategic asset - - (14)
Gain on postretirement plan
amendment (25) - (29)
--- --- ---
Net earnings attributable to
Weyerhaeuser common
shareholders before special
items 145 99 153
Earnings from discontinued
operations, net of income
taxes - - (10)
--- --- ---
Net earnings from continuing
operations attributable to
Weyerhaeuser common
shareholders before special
items $145 $99 $143
==== === ====
Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Net earnings per diluted
share attributable to
Weyerhaeuser common
shareholders $0.31 $0.17 $0.31
Restructuring, impairments
and other charges 0.01 0.02 0.02
Gain on sale of non-
strategic asset - - (0.02)
Gain on postretirement plan
amendment (0.05) - (0.05)
----- --- -----
Net earnings per diluted
share attributable to
Weyerhaeuser common
shareholders before special
items 0.27 0.19 0.26
Earnings from discontinued
operations, net of income
taxes - - (0.02)
--- --- -----
Net earnings from continuing
operations per diluted
share attributable to
Weyerhaeuser common
shareholders before special
items $0.27 $0.19 $0.24
===== ===== =====
Selected Total Company Items
in millions Q4 Q1
--- ---
December 31, March 31, March 31,
2014 2015 2014
---- ---- ----
Depreciation, depletion and amortization:
Cost of products sold $119 $118 $117
Selling, general and
administrative expenses 6 5 6
--- --- ---
Total depreciation,
depletion and amortization $125 $123 $123
==== ==== ====
Pension and postretirement costs:
Pension and postretirement
costs allocated to business
segments $12 $13 $10
Pension and postretirement
credits not allocated (12) (3) (10)
--- --- ---
Total company pension and
postretirement costs $ - $10 $ -
========= === =======
Total decrease (increase) in
working capital(1) $6 $(212) $(170)
Cash spent for capital
expenditures $(124) $(89) $(63)
(1)Working capital does not include cash balances.
Weyerhaeuser Company Timberlands Segment
Q1.2015 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Sales to unaffiliated customers $359 $351 $377
Intersegment sales 225 228 238
--- --- ---
Total net sales 584 579 615
Cost of products sold 424 405 431
--- --- ---
Gross margin 160 174 184
Selling expenses 1 2 2
General and administrative expenses 25 22 26
Research and development expenses 5 3 4
Other operating income, net (14) (15) (12)
--- --- ---
Operating income 143 162 164
Interest income and other - - -
Net contribution to earnings $143 $162 $164
==== ==== ====
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Operating income $143 $162 $164
Depreciation, depletion and amortization 53 53 52
Adjusted EBITDA* $196 $215 $216
==== ==== ====
* Non-GAAP measure - see page 8 for definition.
Selected Segment Items
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Total decrease (increase) in working
capital(1) $8 $(26) $(29)
Cash spent for capital expenditures $(18) $(24) $(19)
(1)Working capital does not include cash balances.
Segment Statistics
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Third Party Logs:
Net Sales
(millions)
West $227 $210 $257
South 66 58 62
Canada 10 8 6
--- --- ---
Total logs 303 276 325
Chip sales 3 4 3
Timberlands
exchanges 3 25 4
Higher and
better use
land sales 5 2 3
Minerals, oil
and gas 7 7 7
Products from
international
operations 24 24 24
Other products 14 13 11
--- --- ---
Total $359 $351 $377
==== ==== ====
Logs West $106.73 $98.83 $114.46
Third Party Sales
Realizations
(per cubic meter)
South $45.56 $45.33 $44.88
Canada $38.82 $34.84 $35.30
International $18.64 $19.35 $16.99
Logs West 2,121 2,120 2,246
Third Party Sales
Volumes
(cubic meters, thousands)
South 1,454 1,271 1,385
Canada 254 245 156
International 148 150 147
--- --- ---
Total 3,977 3,786 3,934
===== ===== =====
Logs West 2,754 2,911 2,875
Fee Harvest Volumes
(cubic meters, thousands)
South 3,145 2,732 2,866
International 260 239 249
--- --- ---
Total 6,159 5,882 5,990
===== ===== =====
Weyerhaeuser Company Wood Products Segment
Q1.2015 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Sales to unaffiliated customers $947 $923 $898
Intersegment sales 20 19 19
--- --- ---
Total net sales 967 942 917
Cost of products sold 855 829 791
--- --- ---
Gross margin 112 113 126
Selling expenses 24 23 25
General and administrative expenses 32 27 37
Research and development expenses 1 - 1
Other operating costs (income), net (1) 1 (1)
--- --- ---
Operating income 56 62 64
Interest income and other - - -
--- --- ---
Net contribution to earnings $56 $62 $64
=== === ===
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Operating income $56 $62 $64
Depreciation, depletion and amortization 30 26 29
Adjusted EBITDA* $86 $88 $93
=== === ===
* Non-GAAP measure - see page 8 for definition.
Selected Segment Items
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Total decrease (increase) in working capital(1) $29 $(99) $(137)
Cash spent for capital expenditures $(78) $(37) $(18)
(1)Working capital does not include cash balances.
Segment Statistics
in millions, except for third-party sales realizations Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Third party net sales $459 $434 $427
Structural Lumber
(board feet)
Third party
sales
realizations $415 $403 $432
Third party
sales
volumes(1) 1,106 1,075 989
Production
volumes 1,013 1,043 1,009
Outside
purchase
volumes 94 89 78
Third party net sales $94 $94 $90
Engineered Solid
Section
(cubic feet)
Third party
sales
realizations $2,060 $1,965 $1,959
Third party
sales
volumes(1) 4.5 4.8 4.6
Production
volumes 4.6 5.0 4.9
Outside
purchase
volumes - - 1.8
Third party net sales $63 $61 $59
Engineered
I-joists
(lineal feet)
Third party
sales
realizations $1,549 $1,510 $1,454
Third party
sales
volumes(1) 40 41 40
Production
volumes 33 43 44
Outside
purchase
volumes 2 1 1
Third party net sales $146 $137 $148
Oriented Strand
Board
(square feet 3/8')
Third party
sales
realizations $206 $196 $230
Third party
sales
volumes(1) 709 700 641
Production
volumes 694 704 657
Outside
purchase
volumes 61 65 53
Third party net sales $36 $33 $30
Softwood Plywood
(square feet 3/8')
Third party
sales
realizations $384 $366 $332
Third party
sales
volumes(1) 93 89 90
Production
volumes 61 61 59
Outside
purchase
volumes 42 37 33
(1)Volumes include sales of
internally produced
products and products
purchased for resale
primarily through our
distribution business.
Weyerhaeuser Company Cellulose Fibers Segment
Q1.2015 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Total net sales $482 $447 $461
Cost of products sold 379 394 390
--- --- ---
Gross margin 103 53 71
Selling expenses 4 3 4
General and administrative expenses 18 17 20
Research and development expenses 2 2 2
Other operating income, net (8) (8) (9)
--- --- ---
Operating income 87 39 54
Interest income and other - (6) -
--- --- ---
Net contribution to earnings $87 $33 $54
=== === ===
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Operating income $87 $39 $54
Depreciation, depletion and amortization 39 39 38
Adjusted EBITDA* $126 $78 $92
==== === ===
* Non-GAAP measure - see page 8 for definition.
Selected Segment Items
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Total decrease (increase) in working
capital(1) $(47) $40 $31
Cash spent for capital expenditures $(26) $(27) $(26)
(1)Working capital does not include cash balances.
Segment Statistics
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Third party net sales
(millions) $405 $360 $363
Pulp
(air-dry metric tons)
Third party
sales
realizations $886 $854 $825
Third party
sales volumes
(thousands) 458 421 440
Production
volumes
(thousands) 468 442 459
Liquid Third party net sales
(millions) $63 $74 $80
Packaging
Board
(metric tons)
Third party
sales
realizations $1,133 $1,194 $1,237
Third party
sales volumes
(thousands) 55 62 65
Production
volumes
(thousands) 70 60 70
Weyerhaeuser Company Unallocated Items
Q1.2015 Analyst Package
Preliminary results, subject to audit
Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include
a portion of items such as: share-based compensation, pension and postretirement costs, foreign exchange
transaction gains and losses associated with financing and the elimination of intersegment profit in inventory and
the LIFO reserve.
Contribution to Earnings
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Unallocated corporate
function expenses $(7) $(9) $(7)
Unallocated share-based
compensation (7) 3 3
Unallocated pension &
postretirement credits 50 3 55
Foreign exchange losses (11) (29) (15)
Elimination of
intersegment profit in
inventory and LIFO (2) (12) (19)
Other (15) (19) 9
--- --- ---
Operating income (loss) 8 (63) 26
Interest income and other 10 9 9
--- --- ---
Net contribution to
earnings from continuing
operations(1) $18 $(54) $35
=== ==== ===
(1)We have reclassified certain results from the prior periods to present the results of operations discontinued in
2014 separately.
Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders' interest.
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Operating income (loss) $8 $(63) $26
Depreciation, depletion
and amortization 3 5 4
Non-operating pension
and postretirement
credits (12) (3) (10)
Special items (31) 13 (49)
--- --- ---
Adjusted EBITDA* $(32) $(48) $(29)
==== ==== ====
* Non-GAAP measure - see below for definition.
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Gain on postretirement
plan amendment $38 $ - $45
Restructuring,
impairments and other
charges (7) (13) (18)
Gain on sale of non-
strategic asset - - 22
--- --- ---
Total $31 $(13) $49
=== ==== ===
Unallocated Selected Items
Q4.2014 Q1.2015 Q1.2014
------- ------- -------
Total decrease (increase)
in working capital(1) $16 $(127) $(35)
Cash spent for capital
expenditures $(2) $(1) $ -
(1)Working capital does not include cash
balances.
*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted
EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion,
amortization, pension and postretirement costs not allocated to business segments (primarily interest cost,
expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit),
special items and discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not
intended to represent an alternative to our GAAP results.
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SOURCE Weyerhaeuser Company
