WEYERHAEUSER COMPANY 
FEDERAL WAY, Wash., Jan. 30, 2015 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings attributable to common shareholders of $166 million, or 31 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $43 million, or 7 cents per diluted share, on net sales of $1.8 billion from continuing operations for the same period last year.
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Earnings for the fourth quarter of 2014 include net after-tax gains of $21 million from special items. Excluding these items, the company reported net earnings of $145 million, or 27 cents per diluted share. This compares with net earnings from continuing operations before special items of $111 million, or 19 cents per diluted share for the same period last year.
For the full year 2014, Weyerhaeuser reported net earnings attributable to common shareholders of $1.8 billion, or $3.18 per diluted share, on net sales from continuing operations of $7.4 billion. This compares with net earnings of $540 million, or 95 cents per diluted share, on net sales from continuing operations of $7.3 billion for the same period last year.
Full year 2014 includes after-tax earnings of $998 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $84 million from special items. Excluding these items, the company reported net earnings of $700 million, or $1.25 per diluted share. This compares with net earnings from continuing operations before special items of $572 million, or 99 cents per diluted share, for the full year 2013.
"In 2014, we demonstrated our commitment to driving shareholder value," said Doyle Simons, president and chief executive officer. "During the year, we divested our homebuilding business to become a focused forest products company, achieved our 2014 operational excellence targets and made significant progress on our multi-year initiatives, and improved earnings from continuing operations by more than 20 percent compared with 2013. In addition, we increased our dividend by 32 percent and completed nearly 30 percent of a newly authorized $700 million share repurchase program. For 2015, we remain relentlessly focused on driving operational excellence to fully capitalize on our improving markets and delivering value to our shareholders."
WEYERHAEUSER FINANCIAL
HIGHLIGHTS 3Q 4Q 4Q Full Year
(millions, except per share
data) 2014 2014 2013 2014 2013
---- ---- ---- ---- ----
Net sales from continuing
operations $1,915 $1,788 $1,768 $7,403 $7,254
Net earnings attributable to
common shareholders(1) $1,153 $166 $43 $1,782 $540
Weighted average shares
outstanding, diluted(2) 536 529 589 561 571
Earnings per diluted share $2.15 $0.31 $0.07 $3.18 $0.95
Earnings per diluted share
from continuing operations $0.35 $0.31 $0.01 $1.40 $0.82
Net earnings from continuing
operations before special
items(3) $178 $145 $111 $700 $572
Earnings per diluted share
from continuing operations
before special items $0.33 $0.27 $0.19 $1.25 $0.99
Net change in cash and cash
equivalents(4) $775 ($40) ($68) $750 ($63)
Cash and cash equivalents at
end of period(4) $1,620 $1,580 $830 $1,580 $830
((1)) Includes net earnings from discontinued operations.
((2)) Weyerhaeuser's weighted average common shares outstanding decreased during the third quarter of 2014 due to retirement of approximately 59 million shares tendered under the exchange offer associated with the divestiture of Weyerhaeuser Real Estate Company. During the third and fourth quarters of 2014, Weyerhaeuser repurchased approximately 6 million common shares. At the end of the fourth quarter the company had approximately 524 million common shares outstanding.
((3)) Special items for 2014 include gains on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative. Special Items for 2013 are primarily related to restructuring, impairments and other charges, partially offset by tax adjustments.
((4)) Net change in cash and equivalents, and cash and cash equivalents at the end of the period exclude discontinued operations for all time periods presented. Third quarter 2014 includes $707 million related to the divestiture of Weyerhaeuser Real Estate Company.
TIMBERLANDS
FINANCIAL HIGHLIGHTS (millions) 3Q 2014 4Q 2014 Change
------- ------- ------
Net sales to unaffiliated customers $364 $359 ($5)
Contribution to pre-tax earnings $136 $143 $7
4Q 2014 Performance - Western fee harvest volumes increased and log realizations improved in domestic and Japanese markets. These improvements were partially offset by weaker demand and pricing for Chinese export logs. In the South, fee harvest volumes increased and realizations improved slightly. Earnings from disposition of non-strategic timberlands decreased by $16 million compared with the third quarter.
1Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Timberlands segment in the first quarter. In the West, the company anticipates improved domestic volumes and realizations, partially offset by lower export log volumes. Western logging and road building costs should decline seasonally. In the South, the company expects lower fee harvest volumes due to seasonally wet weather. The company anticipates higher earnings from the disposition of non-strategic timberlands in the first quarter of 2015 compared to the fourth quarter 2014.
WOOD PRODUCTS
FINANCIAL HIGHLIGHTS (millions) 3Q 2014 4Q 2014 Change
------- ------- ------
Net sales to unaffiliated
customers $1,048 $947 ($101)
Contribution to pre-tax earnings $105 $56 ($49)
4Q 2014 Performance - Average realizations for lumber and oriented strand board decreased, and sales volumes declined seasonally across all product lines. Per unit manufacturing costs increased due to seasonally lower production volumes.
1Q 2015 Outlook - Weyerhaeuser expects significantly higher earnings from the Wood Products segment in the first quarter. The company expects slightly improved average realizations for lumber and oriented strand board, and higher sales and production volumes across all product lines, partially offset by higher log costs.
CELLULOSE FIBERS
FINANCIAL HIGHLIGHTS (millions) 3Q 2014 4Q 2014 Change
------- ------- ------
Net sales $503 $482 ($21)
Contribution to pre-tax earnings $59 $87 $28
4Q 2014 Performance - Average pulp price realizations increased, and sales volumes fell slightly. In liquid packaging board, lower realizations and lower shipment volumes as a result of West Coast port slowdowns were offset by lower maintenance costs and higher production rates following completion of an extended outage that occurred primarily in the third quarter.
1Q 2015 Outlook - Weyerhaeuser expects significantly lower earnings from the Cellulose Fibers segment in the first quarter. The company anticipates reduced pulp price realizations, higher maintenance expense, and decreased shipment volumes for liquid packaging board due to continuing West Coast port slowdowns, partially offset by higher liquid packaging board realizations due to mix.
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 January 30 to discuss fourth quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January.
To join the conference call from within North America, dial 877-296-9413 (access code: 28339647) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 28339647). Replays will be available for one week at 855-859-2056 (access code: 28339647) from within North America and at 404-537-3406 (access code: 28339647) 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 various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. 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 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 terms.
This release contains forward-looking statements regarding the company's expectations during the first quarter of 2015, including with respect to earnings, log realizations and demand, logging and road building costs, harvest volumes and dispositions of non-strategic timberlands in Timberlands, sales and production volumes across Wood Products product lines and realizations in lumber and oriented strand board, maintenance expenses, realizations in pulp and liquid packaging board and the effect of continuing West Coast port slowdowns on shipping volumes 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 under "Risk Factors" in the Company's annual
report on Form 10-K and in the Company's other filings with the SEC.
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 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
Q4.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations
in millions Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------
Net Sales $1,736 $1,964 $1,915 $1,788 $1,768 $7,403 $7,254
Cost of products sold 1,361 1,499 1,504 1,399 1,412 5,763 5,716
Gross margin 375 465 411 389 356 1,640 1,538
Selling expenses 28 27 28 29 29 112 125
General and
administrative expenses 88 88 73 89 105 338 404
Research and development
expenses 7 7 5 8 10 27 33
Charges for
restructuring, closures
and impairments 19 8 10 7 370 44 377
Other operating income,
net (75) (65) (23) (38) (3) (201) (35)
--- --- --- --- --- ---- ---
Operating income 308 400 318 294 (155) 1,320 634
Interest income and other 9 11 7 10 16 37 55
Interest expense, net of
capitalized interest (83) (83) (88) (90) (113) (344) (369)
--- --- --- --- ---- ---- ----
Earnings from continuing
operations before income
taxes 234 328 237 214 (252) 1,013 320
Income taxes (50) (59) (39) (37) 270 (185) 171
--- --- --- --- --- ---- ---
Earnings from continuing
operations 184 269 198 177 18 828 491
Earnings from
discontinued operations,
net of income taxes 10 22 966 - 36 998 72
--- --- --- --- --- --- ---
Net earnings 194 291 1,164 177 54 1,826 563
Dividends on preference
shares (11) (11) (11) (11) (11) (44) (23)
--- --- --- --- --- ---
Net earnings attributable
to Weyerhaeuser common
shareholders $183 $280 $1,153 $166 $43 $1,782 $540
==== ==== ====== ==== === ====== ====
Per Share Information
Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------
Earnings per share attributable to Weyerhaeuser
common shareholders, basic:
Continuing operations $0.29 $0.44 $0.35 $0.32 $0.01 $1.41 $0.82
Discontinued operations 0.02 0.04 1.82 - 0.06 1.79 0.13
Net earnings per share $0.31 $0.48 $2.17 $0.32 $0.07 $3.20 $0.95
===== ===== ===== ===== ===== ===== =====
Earnings per share attributable to Weyerhaeuser
common shareholders, diluted:
Continuing operations $0.29 $0.43 $0.35 $0.31 $0.01 $1.40 $0.82
Discontinued operations 0.02 0.04 1.80 - 0.06 1.78 0.13
Net earnings per share $0.31 $0.47 $2.15 $0.31 $0.07 $3.18 $0.95
===== ===== ===== ===== ===== ===== =====
Dividends paid per common
share $0.22 $0.22 $0.29 $0.29 $0.22 $1.02 $0.81
Weighted average shares outstanding (in thousands):
Basic 584,915 586,061 531,913 524,838 583,610 556,705 566,329
Diluted 589,312 589,766 536,012 529,411 588,616 560,899 571,239
Common shares outstanding
at end of period (in
thousands) 584,961 586,698 525,485 524,474 583,548 524,474 583,548
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net earnings $194 $291 $1,164 $177 $54 $1,826 $563
Earnings from
discontinued operations,
net of income taxes (10) (22) (966) - (36) (998) (72)
Interest income and other (9) (11) (7) (10) (16) (37) (55)
Interest expense, net of
capitalized interest 83 83 88 90 113 344 369
Income taxes 50 59 39 37 (270) 185 (171)
--- --- --- --- ---- --- ----
Operating income 308 400 318 294 (155) 1,320 634
Depreciation, depletion
and amortization 123 122 123 125 125 493 458
Non-operating pension
and postretirement costs
(credits) (10) (11) (12) (12) 9 (45) 40
Special items (49) (39) (15) (31) 366 (134) 366
Adjusted EBITDA* $372 $472 $414 $376 $345 $1,634 $1,498
==== ==== ==== ==== ==== ====== ======
* Non-GAAP measure - see page 8 for definition.
Weyerhaeuser Company
Q4.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet
in millions March 31, June 30, September 30, December 31, December 31,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
ASSETS
------
Current assets:
Cash and cash equivalents $777 $845 $1,620 $1,580 $830
Receivables, less allowances 543 590 583 525 518
Receivables for taxes 34 37 23 25 101
Inventories 626 596 578 595 542
Prepaid expenses 101 106 97 80 117
Deferred tax assets 186 128 111 228 130
Current assets of discontinued
operations 48 988 - - 88
--- --- --- --- ---
Total current assets 2,315 3,290 3,012 3,033 2,326
Property and equipment, net 2,596 2,599 2,534 2,623 2,689
Construction in progress 140 157 215 131 112
Timber and timberlands at cost,
less depletion charged to
disposals 6,574 6,571 6,546 6,530 6,580
Investments in and advances to
equity affiliates 189 188 186 188 190
Goodwill 40 40 40 40 42
Deferred tax assets 1 - - 8 5
Other assets 354 419 292 289 324
Restricted financial investments
held by variable interest
entities 615 615 615 615 615
Noncurrent assets of discontinued
operations 1,762 1,827 - - 1,694
----- ----- --- --- -----
Total assets $14,586 $15,706 $13,440 $13,457 $14,577
======= ======= ======= ======= =======
LIABILITIES AND EQUITY
----------------------
Current liabilities:
Notes payable $2 $ - $ - $ - $2
Accounts payable 365 335 351 331 343
Accrued liabilities 582 597 606 587 629
Current liabilities of
discontinued operations 123 137 - - 154
--- --- --- --- ---
Total current liabilities 1,072 1,069 957 918 1,128
Long-term debt 4,891 4,891 4,891 4,891 4,891
Long-term debt (nonrecourse to
the company) held by variable
interest entities 511 511 511 511 511
Deferred income taxes 387 410 338 206 285
Deferred pension and other
postretirement benefits 471 422 569 1,319 516
Other liabilities 334 334 318 308 382
Noncurrent liabilities of
discontinued operations 35 926 - - 32
--- --- --- --- ---
Total liabilities 7,701 8,563 7,584 8,153 7,745
----- ----- ----- ----- -----
Equity:
Total Weyerhaeuser shareholders'
interest 6,852 7,092 5,856 5,304 6,795
Noncontrolling interests 3 2 - - 3
Noncontrolling interests in
discontinued operations 30 49 - - 34
--- --- --- --- ---
Total equity 6,885 7,143 5,856 5,304 6,832
Total liabilities and equity $14,586 $15,706 $13,440 $13,457 $14,577
======= ======= ======= ======= =======
Weyerhaeuser Company
Q4.2014 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows
in millions Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------
Cash flows from operations:
Net earnings $194 $291 $1,164 $177 $54 $1,826 $563
Noncash charges (credits) to income:
Depreciation, depletion and
amortization 126 126 123 125 129 500 472
Deferred income taxes, net 36 89 45 35 (102) 205 (29)
Pension and other postretirement
benefits (47) (44) (13) (48) 22 (152) 101
Share-based compensation expense 9 11 9 11 8 40 42
Charges for impairment of assets - 1 - 1 367 2 372
Net gains on dispositions of assets
and operations (25) (21) (1,002) (2) (16) (1,050) (58)
Foreign exchange transaction
(gains) losses 14 (12) 13 12 1 27 7
Change in:
Receivables less allowances (1) (47) 20 57 85 29 (27)
Receivable for taxes 67 (3) 13 (1) (70) 76 (6)
Inventories (88) 34 8 (20) (13) (66) (13)
Real estate and land (72) (35) (26) - 13 (133) (166)
Prepaid expenses 3 (3) 6 11 (10) 17 (26)
Accounts payable and accrued
liabilities (80) (17) 21 (22) (96) (98) (51)
Deposits on land positions and
other assets 12 (4) 7 - (7) 15 (18)
Pension and postretirement
contributions (33) (30) (22) (16) (33) (101) (137)
Other (6) (14) (13) (16) 16 (49) (22)
--- --- --- --- --- --- ---
Net cash from operations 109 322 353 304 348 1,088 1,004
--- --- --- --- --- ----- -----
Cash flows from investing activities:
Property and equipment (51) (83) (105) (115) (110) (354) (261)
Timberlands reforestation (14) (11) (7) (9) (4) (41) (32)
Acquisition of Longview Timber LLC,
net of cash acquired - - - - - - (1,581)
Net proceeds from Real Estate
Divestiture, net of cash divested - - 707 - - 707 -
Proceeds from sale of assets 19 1 4 4 5 28 20
Net proceeds of investments held by
special purpose entities - - - - - - 22
Other - - 25 (4) (2) 21 3
--- --- --- --- --- --- ---
Cash from investing activities (46) (93) 624 (124) (111) 361 (1,829)
--- --- --- ---- ---- --- ------
Cash flows from financing activities:
Net proceeds from issuance of
common shares - - - - - - 897
Net proceeds from issuance of
preference shares - - - - - - 669
Net proceeds from issuance of debt - - - - 550 - 1,044
Net proceeds from issuance of
Weyerhaeuser Real Estate Company
(WRECO) debt - 887 - - - 887 -
Deposit of WRECO debt proceeds into
escrow - (887) - - - (887) -
Cash dividends on common shares (129) (128) (154) (152) (128) (563) (458)
Cash dividends on preference shares - (11) (11) (22) (23) (44) (23)
Change in book overdrafts (6) - (11) - (1) (17) 7
Payments on debt - - - - (1,227) - (1,567)
Exercises of stock options 15 39 30 35 21 119 162
Repurchase of common stock - - (123) (80) - (203) -
Other 2 (1) 4 (1) 9 4 31
--- --- --- --- --- --- ---
Cash from financing activities (118) (101) (265) (220) (799) (704) 762
---- ---- ---- ---- ---- ---- ---
Net change in cash and cash
equivalents (55) 128 712 (40) (562) 745 (63)
Cash and cash equivalents at
beginning of period 835 780 908 1,620 1,397 835 898
--- --- --- ----- ----- --- ---
Cash and cash equivalents at end of
period $780 $908 $1,620 $1,580 $835 $1,580 $835
==== ==== ====== ====== ==== ====== ====
Cash paid (received) during the year for:
Interest, net of amount capitalized $101 $52 $100 $66 $91 $319 $366
Income taxes $(50) $5 $5 $3 $12 $(37) $8
Noncash investing and financing activity:
Acquisition of Longview Timber LLC,
debt assumed $ - $ - $ - $ - $ - $ - $1,070
Common shares tendered in WRECO
divestiture $ - $ - $1,954 $ - $ - $1,954 $ -
Weyerhaeuser Company Total Company Statistics
Q4.2014 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings
in millions Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net earnings attributable to
Weyerhaeuser common
shareholders $183 $280 $1,153 $166 $43 $1,782 $540
Restructuring, impairments
and other charges 13 5 6 4 247 28 247
Gain on sale of non-
strategic asset (14) - - - - (14) -
Gain on postretirement plan
amendment (29) (29) (15) (25) - (98) -
Loss on early extinguishment
of debt - - - - 25 - 25
Tax adjustments - - - - (168) - (168)
Net earnings attributable to
Weyerhaeuser common
shareholders before special
items 153 256 1,144 145 147 1,698 644
Earnings from discontinued
operations, net of income
taxes (10) (22) (966) - (36) (998) (72)
---
Net earnings from continuing
operations attributable to
Weyerhaeuser common
shareholders before special
items $143 $234 $178 $145 $111 $700 $572
==== ==== ==== ==== ==== ==== ====
Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net earnings per diluted
share attributable to
Weyerhaeuser common
shareholders $0.31 $0.47 $2.15 $0.31 $0.07 $3.18 $0.95
Restructuring, impairments
and other charges 0.02 0.01 0.01 0.01 0.42 0.05 0.42
Gain on sale of non-
strategic asset (0.02) - - - - (0.02) -
Gain on postretirement plan
amendment (0.05) (0.04) (0.03) (0.05) - (0.18) -
Loss on early extinguishment
of debt - - - - 0.05 - 0.05
Tax adjustments - - - - (0.29) - (0.30)
--- --- --- --- ----- --- -----
Net earnings per diluted
share attributable to
Weyerhaeuser common
shareholders before special
items 0.26 0.44 2.13 0.27 0.25 3.03 1.12
Earnings from discontinued
operations, net of income
taxes (0.02) (0.04) (1.80) - (0.06) (1.78) (0.13)
Net earnings from continuing
operations per diluted share
attributable to Weyerhaeuser
common shareholders before
special items $0.24 $0.40 $0.33 $0.27 $0.19 $1.25 $0.99
===== ===== ===== ===== ===== ===== =====
Selected Total Company Items
in millions Q1 Q2 Q3 Q4 Year-to-date
--- --- --- --- ------------
Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Dec 31, 2013 Dec 31, 2014 Dec 31, 2013
------------ ------------ ------------ ------------ ------------ ------------ ------------
Depreciation, depletion and amortization:
Cost of products sold $117 $117 $117 $119 $120 $470 $435
Selling, general and
administrative expenses 6 5 6 6 5 23 23
--- --- --- --- ---
Total depreciation, depletion
and amortization $123 $122 $123 $125 $125 $493 $458
==== ==== ==== ==== ==== ==== ====
Pension and postretirement costs:
Pension and postretirement
costs allocated to business
segments $10 $12 $11 $12 $14 $45 $56
Pension and postretirement
costs (credits) not
allocated (10) (11) (12) (12) 9 (45) 40
Total company pension and
postretirement costs $ - $1 $(1) $ - $23 $ - $96
======== === === ========= === ========= ===
Total decrease (increase) in
working capital(1) $(170) $49 $106 $6 $(17) $(9) $(52)
Cash spent for capital
expenditures $(63) $(92) $(112) $(124) $(113) $(391) $(283)
(1)Working capital does not include cash balances.
Weyerhaeuser Company Timberlands Segment
Q4.2014 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Sales to unaffiliated customers $377 $397 $364 $359 $364 $1,497 $1,343
Intersegment sales 238 186 218 225 215 867 799
--- --- --- --- --- --- ---
Total net sales 615 583 582 584 579 2,364 2,142
Cost of products sold 431 399 432 424 425 1,686 1,592
--- --- --- --- --- ----- -----
Gross margin 184 184 150 160 154 678 550
Selling expenses 2 2 2 1 2 7 10
General and administrative expenses 26 23 23 25 26 97 103
Research and development expenses 4 3 4 5 6 16 19
Charges for restructuring, closures and
impairments - - 1 - - 1 2
Other operating income, net (12) (14) (16) (14) (13) (56) (50)
--- --- --- --- --- --- ---
Operating income 164 170 136 143 133 613 466
Interest income and other - - - - 1 - 4
Net contribution to earnings $164 $170 $136 $143 $134 $613 $470
==== ==== ==== ==== ==== ==== ====
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Operating income $164 $170 $136 $143 $133 $613 $466
Depreciation, depletion and amortization 52 51 51 53 51 207 166
Adjusted EBITDA* $216 $221 $187 $196 $184 $820 $632
==== ==== ==== ==== ==== ==== ====
* Non-GAAP measure - see page 8 for definition.
Selected Segment Items
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Total decrease (increase) in working
capital(1) $(29) $(15) $25 $8 $(7) $(11) $(7)
Cash spent for capital expenditures $(19) $(18) $(19) $(18) $(21) $(74) $(73)
(1)Working capital does not include cash balances.
Segment Statistics
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Third Party Logs:
Net Sales
(millions)
West $257 $261 $227 $227 $230 $972 $828
South 62 60 69 66 64 257 256
Canada 6 1 5 10 4 22 19
--- --- --- --- --- --- ---
Total logs 325 322 301 303 298 1,251 1,103
Chip sales 3 2 4 3 2 12 9
Timberlands
exchanges 4 28 17 3 21 52 65
Higher and
better use
land sales 3 7 4 5 9 19 19
Minerals, oil
and gas 7 8 10 7 6 32 32
Products from
international
operations 24 26 22 24 22 96 90
Other products 11 4 6 14 6 35 25
--- --- --- --- --- --- ---
Total $377 $397 $364 $359 $364 $1,497 $1,343
==== ==== ==== ==== ==== ====== ======
Logs West $114.46 $109.13 $102.23 $106.73 $104.91 $108.19 $107.36
Third Party Sales
Realizations
(per cubic meter)
South $44.88 $45.16 $45.30 $45.56 $43.72 $45.23 $43.49
Canada $35.30 $38.04 $37.75 $38.82 $38.68 $37.58 $37.71
International $16.99 $16.27 $19.95 $18.64 $23.05 $18.06 $24.22
Logs West 2,246 2,390 2,223 2,121 2,185 8,980 7,708
Third Party Sales
Volumes
(cubic meters, thousands)
South 1,385 1,339 1,500 1,454 1,468 5,678 5,888
Canada 156 30 152 254 128 592 511
International 147 139 170 148 112 604 357
--- --- --- --- --- --- ---
Total 3,934 3,898 4,045 3,977 3,893 15,854 14,464
===== ===== ===== ===== ===== ====== ======
Logs West 2,875 2,888 2,656 2,754 2,686 11,173 8,907
Fee Harvest Volumes
(cubic meters, thousands)
South 2,866 2,715 2,950 3,145 3,007 11,676 11,596
International 249 249 232 260 243 990 818
--- --- --- --- --- --- ---
Total 5,990 5,852 5,838 6,159 5,936 23,839 21,321
===== ===== ===== ===== ===== ====== ======
Weyerhaeuser Company Wood Products Segment
Q4.2014 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Sales to unaffiliated customers $898 $1,077 $1,048 $947 $926 $3,970 $4,009
Intersegment sales 19 21 20 20 16 80 71
--- --- --- --- --- --- ---
Total net sales 917 1,098 1,068 967 942 4,050 4,080
Cost of products sold 791 939 910 855 826 3,495 3,385
--- --- --- --- --- ----- -----
Gross margin 126 159 158 112 116 555 695
Selling expenses 25 23 22 24 24 94 98
General and administrative expenses 37 30 31 32 32 130 141
Research and development expenses 1 2 - 1 2 4 6
Charges for restructuring, closures and impairments - 2 - - 11 2 13
Other operating income, net (1) - - (1) (1) (2) (4)
--- --- --- --- --- --- ---
Operating income 64 102 105 56 48 327 441
Interest income and other - - - - - - -
--- --- --- --- --- --- ---
Net contribution to earnings $64 $102 $105 $56 $48 $327 $441
=== ==== ==== === === ==== ====
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Operating income $64 $102 $105 $56 $48 $327 $441
Depreciation, depletion and amortization 29 30 30 30 30 119 123
Special items - - - - 10 - 10
--- --- ---
Adjusted EBITDA* $93 $132 $135 $86 $88 $446 $574
=== ==== ==== === === ==== ====
* Non-GAAP measure - see page 8 for definition.
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Charges for restructuring, closures and impairments $ - $ - $ - $ - $(10) $ - $(10)
Selected Segment Items
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Total decrease (increase) in working capital(1) $(137) $29 $41 $29 $40 $(38) $(5)
Cash spent for capital expenditures $(18) $(38) $(56) $(78) $(61) $(190) $(113)
(1)Working capital does not include cash balances.
Segment Statistics
in millions, except for third-party sales realizations Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Structural Lumber Third party net sales $427 $515 $500 $459 $440 $1,901 $1,873
(board feet)
Third party
sales
realizations $432 $427 $431 $415 $413 $426 $422
Third party
sales
volumes(1) 989 1,206 1,162 1,106 1,066 4,463 4,436
Production
volumes 1,009 1,081 1,049 1,013 970 4,152 4,084
Outside
purchase
volumes 78 82 91 94 83 345 354
Engineered Solid Third party net sales $90 $114 $104 $94 $90 $402 $353
Section
(cubic feet)
Third party
sales
realizations $1,959 $1,976 $2,031 $2,060 $2,006 $2,005 $1,936
Third party
sales
volumes(1) 4.6 5.8 5.1 4.5 4.5 20.0 18.2
Production
volumes 4.9 5.7 5.2 4.6 4.2 20.4 18.0
Outside
purchase
volumes 1.8 0.5 - - 0.2 2.3 1.8
Engineered Third party net sales $59 $81 $74 $63 $63 $277 $247
I-joists
(lineal feet)
Third party
sales
realizations $1,454 $1,470 $1,540 $1,549 $1,485 $1,502 $1,393
Third party
sales
volumes(1) 40 55 49 40 42 184 177
Production
volumes 44 55 50 33 38 182 168
Outside
purchase
volumes 1 3 1 2 2 7 8
Oriented Strand Third party net sales $148 $159 $157 $146 $161 $610 $809
Board
(square feet 3/8')
Third party
sales
realizations $230 $226 $215 $206 $237 $219 $292
Third party
sales
volumes(1) 641 706 732 709 678 2,788 2,772
Production
volumes 657 681 717 694 673 2,749 2,723
Outside
purchase
volumes 53 51 52 61 54 217 227
Softwood Plywood Third party net sales $30 $35 $42 $36 $29 $143 $144
(square feet 3/8')
Third party
sales
realizations $332 $348 $381 $384 $339 $362 $358
Third party
sales
volumes(1) 90 102 110 93 87 395 402
Production
volumes 59 60 72 61 55 252 241
Outside
purchase
volumes 33 36 31 42 40 142 155
(1) Sales volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.
Weyerhaeuser Company Cellulose Fibers Segment
Q4.2014 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Total net sales $461 $490 $503 $482 $478 $1,936 $1,902
Cost of products sold 390 381 427 379 397 1,577 1,621
--- --- --- --- --- ----- -----
Gross margin 71 109 76 103 81 359 281
Selling expenses 4 4 3 4 3 15 17
General and administrative expenses 20 20 18 18 17 76 79
Research and development expenses 2 2 1 2 2 7 8
Other operating income, net (9) (8) (6) (8) (2) (31) (20)
--- --- --- --- --- --- ---
Operating income 54 91 60 87 61 292 197
Interest income and other - - (1) - 4 (1) 3
--- --- --- --- --- --- ---
Net contribution to earnings $54 $91 $59 $87 $65 $291 $200
=== === === === === ==== ====
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Operating income $54 $91 $60 $87 $61 $292 $197
Depreciation, depletion and amortization 38 39 39 39 40 155 156
Adjusted EBITDA* $92 $130 $99 $126 $101 $447 $353
=== ==== === ==== ==== ==== ====
* Non-GAAP measure - see page 8 for definition.
Selected Segment Items
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Total decrease (increase) in working
capital(1) $31 $(37) $39 $(47) $(12) $(14) $12
Cash spent for capital expenditures $(26) $(35) $(36) $(26) $(30) $(123) $(92)
(1)Working capital does not include cash balances.
Segment Statistics
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Pulp Third party net sales
(millions) $363 $383 $408 $405 $390 $1,559 $1,501
(air-dry metric tons)
Third party
sales
realizations $825 $845 $858 $886 $818 $854 $804
Third party
sales volumes
(thousands) 440 454 474 458 477 1,826 1,866
Production
volumes
(thousands) 459 467 465 468 450 1,859 1,815
Liquid Third party net sales
(millions) $80 $87 $80 $63 $72 $310 $326
Packaging
Board
(tons)
Third party
sales
realizations $1,122 $1,165 $1,185 $1,028 $1,029 $1,129 $1,068
Third party
sales volumes
(thousands) 71 75 68 60 70 274 305
Production
volumes
(thousands) 78 79 57 78 85 292 307
Weyerhaeuser Company Unallocated Items
Q4.2014 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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve.
Contribution to Earnings
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Unallocated corporate
function expenses $(7) $(7) $(3) $(7) $(12) $(24) $(38)
Unallocated share-based
compensation 3 (6) 1 (7) (5) (9) (8)
Unallocated pension &
postretirement credits
(costs) 55 56 35 50 (9) 196 (40)
Foreign exchange gains
(losses) (15) 13 (14) (11) (1) (27) (7)
Elimination of
intersegment profit in
inventory and LIFO (19) (1) 12 (2) 6 (10) 15
Other 9 (18) (14) (15) (376) (38) (392)
--- --- --- --- ---- --- ----
Operating income (loss) 26 37 17 8 (397) 88 (470)
Interest income and other 9 11 8 10 11 38 48
Net contribution to
earnings from continuing
operations(1) $35 $48 $25 $18 $(386) $126 $(422)
=== === === === ===== ==== =====
(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 Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Operating income (loss) $26 $37 $17 $8 $(397) $88 $(470)
Depreciation, depletion
and amortization 4 2 3 3 4 12 13
Non-operating pension
and postretirement costs
(credits) (10) (11) (12) (12) 9 (45) 40
Special items (49) (39) (15) (31) 356 (134) 356
--- --- --- --- --- ---- ---
Adjusted EBITDA* $(29) $(11) $(7) $(32) $(28) $(79) $(61)
==== ==== === ==== ==== ==== ====
* Non-GAAP measure - see below for definition.
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Gain on postretirement
plan amendment $45 $45 $23 $38 $ - $151 $ -
Restructuring,
impairments and other
charges (18) (6) (8) (7) (356) (39) (356)
Gain on sale of non-
strategic asset 22 - - - - 22 -
--- --- --- --- --- --- ---
Total $49 $39 $15 $31 $(356) $134 $(356)
=== === === === ===== ==== =====
Unallocated Selected Items
Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Total decrease (increase)
in working capital(1) $(35) $72 $1 $16 $(38) $54 $(52)
Cash spent for capital
expenditures $ - $(1) $(1) $(2) $(1) $(4) $(5)
(1)Working capital does not include cash balances.
*Adjusted EBITDAis 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.
Weyerhaeuser Company Discontinued Operations
Q4.2014 Analyst Package
Preliminary results, subject to audit
Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items.
Discontinued Operations Statement of Operations
in millions Q1.2014 Q2.2014 Q3.2014 Q4.2014 Q4.2013 YTD.2014 YTD.2013
------- ------- ------- ------- ------- -------- --------
Total net sales $248 $317 $8 $ - $488 $573 $1,275
==== ==== === ========= ==== ==== ======
Income (loss) from
operations $16 $27 $(1) $ - $58 $42 $114
Income taxes (6) (5) (5) - (22) (16) (42)
--- --- --- --- --- --- ---
Net earnings (loss) from
operations 10 22 (6) - 36 26 72
Net gain on divestiture - - 972 - - 972 -
Net earnings from
discontinued operations $10 $22 $966 $ - $36 $998 $72
=== === ==== ======== === ==== ===
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SOURCE Weyerhaeuser Company
