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Weyerhaeuser Reports Third Quarter Results



                  Weyerhaeuser Reports Third Quarter Results

PR Newswire

FEDERAL WAY, Wash., Oct. 26, 2012

FEDERAL WAY, Wash., Oct. 26, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE:
WY) today reported net earnings of $117 million, or 22 cents per diluted
share, for the third quarter. This compares with net earnings of $157 million,
or 29 cents per diluted share, and net earnings before special items of $66
million, or 12 cents per diluted share, for the same period last year. Net
sales for the third quarter of 2012 totaled $1.8 billion, compared with net
sales from continuing operations of $1.6 billion for the third quarter of
2011.

(Logo:  http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)

"This month the Board of Directors increased our quarterly dividend by 13
percent to 17 cents per share," said Dan Fulton, president and chief executive
officer. "As our third quarter performance indicates, the operational
improvements within our businesses are demonstrating clear results, and we are
capitalizing on an improving housing market to the benefit of our
shareholders."

 

WEYERHAEUSER FINANCIAL HIGHLIGHTS               2012   2012       2011
(millions, except per share data)               2Q     3Q         3Q
Net sales from continuing operations            $1,793 $1,772     $1,569
Net earnings                                    $84    $117       $157^(1)
Weighted average shares outstanding, diluted    540    542        540
Earnings per diluted share                      $0.16  $0.22      $0.29^(1)
Net earnings before special items               $47    $117       $66
Earnings per diluted share before special items $0.09  $0.22      $0.12
Net cash from operations                        $267   $122       $117
Net change in cash and cash equivalents         $133   ($253)^(2) $90
Cash and cash equivalents at end of period      $861   $608       $971

^(1) The third quarter of 2011 included net earnings of $24 million from
discontinued operations, or $0.04 per diluted share, on net sales of $83
million. Discontinued operations include Weyerhaeuser's hardwoods and Westwood
Shipping Lines businesses, which were sold in the third quarter of 2011.

^(2) Net change in cash and cash equivalents for the third quarter of 2012
includes $181 million for debt repayment and a $97 million payment on a note
related to a timber monetization undertaken in 2002. Weyerhaeuser expects to
receive cash of approximately $110 million when the related financial
investment matures in the fourth quarter of 2012.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)  2Q 2012 3Q 2012 Change
Net sales                        $262    $267    $5
Contribution to pre-tax earnings $77     $80     $3

3Q 2012 Performance - The segment's  earnings improved $3 million compared
with the second quarter. Earnings from disposition of non-strategic
timberlands increased $18 million. This was mostly offset by lower domestic
selling prices for Western logs, and reduced export log realizations due to
mix. Western fee harvest volumes declined slightly, and road costs increased
seasonally. In the South, average selling prices for logs improved slightly
compared with the second quarter, and fee harvest volumes were slightly
higher.

4Q 2012 Outlook - Weyerhaeuser expects comparable earnings from the
Timberlands segment in the fourth quarter. The company expects seasonally
higher fee harvest volumes and slightly improved selling prices for Western
logs in export and domestic markets, offset by increased silviculture costs.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)                       2Q 2012 3Q 2012 Change
Net sales                                             $776    $816    $40
Contribution to pre-tax earnings before special items $30     $59     $29
Pre-tax special items                                 6       —       (6)
GAAP contribution to pre-tax earnings                 $36     $59     $23

3Q 2012 Performance - The segment's earnings before special items improved $29
million compared with the second quarter due to strong markets and effective
execution of performance improvement initiatives. Sales realizations were
higher across nearly all product lines, most significantly in oriented strand
board, which increased 25 percent. Sales volumes for engineered wood products
increased, and volumes for lumber and oriented strand board declined slightly.

4Q 2012 Outlook - Weyerhaeuser anticipates lower earnings from the Wood
Products segment in the fourth quarter due to seasonal declines in pricing and
demand for most products.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)  2Q 2012 3Q 2012 Change
Net sales                        $459    $459    $0
Contribution to pre-tax earnings $36     $78     $42

3Q 2012 Performance - The segment's earnings improved $42 million compared
with the second quarter due to significantly lower maintenance costs,
increased production and strong operating performance. Average pulp prices
were flat. The segment completed one scheduled annual maintenance outage in
the third quarter, compared with two in the second quarter.

4Q 2012 Outlook - Weyerhaeuser expects earnings from the Cellulose Fibers
segment to be comparable to the third quarter. The company anticipates lower
selling prices for fluff pulp, offset by increased sales volumes and slightly
lower maintenance expense.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)  2Q 2012 3Q 2012 Change
Net sales                        $296    $230    ($66)
Contribution to pre-tax earnings $15     $17     $2

3Q 2012 Performance - The segment's earnings improved $2 million. Third
quarter included earnings of $17 million from single-family homebuilding,
compared with $3 million from single family homebuilding and $12 million from
sale of land and lots in the second quarter. Home closings increased
seasonally to 615 single-family homes, and average margins on homes closed
were substantially higher due to mix. At the end of the third quarter the
backlog of homes sold, but not closed, totaled 1,055 units, a 74 percent
increase compared with one year ago.

4Q 2012 Outlook - Excluding any earnings from potential land sales,
Weyerhaeuser expects slightly lower earnings from single-family homebuilding
operations in the fourth quarter. The company anticipates a seasonal increase
in home closings, lower average margins due to mix and higher selling expenses
due to the additional closing volume.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest forest products companies,
began operations in 1900. We grow and harvest trees, build homes and make a
range of forest products essential to everyday lives. We manage our timberland
on a sustainable basis in compliance with internationally recognized forestry
standards. At the end of 2011, we employed approximately 12,800 employees in
11 countries. We have customers worldwide and generated $6.2 billion in sales
from continuing operations in 2011. Our 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 26 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 26.

To join the conference call from within North America, dial 877-296-9413
(access code – 41409566) at least 15 minutes prior to the call. Those calling
from outside North America should dial 706-679-2458 (access code – 41409566).
Replays will be available for one week at 800-585-8367 (access code –
41409566) from within North America and at 404-537-3406 (access code –
41409566) from outside North America.

The webcast is available to both institutional and individual investors
through the Thomson StreetEvents Network. Individual investors can listen to
the call at www.fulldisclosure.com, Thomson's individual investor portal.
Institutional investors can access the call via Thomson's password-protected
site at www.streetevents.com.

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 fourth quarter of 2012, including slightly improved
selling prices and comparable sales volumes for Western logs, increased demand
and slightly improved price realizations for export logs, slightly lower
Southern log realizations due to mix and a small seasonal increase in fee
harvest volume, increased silviculture costs, earnings from non-strategic land
sales expected to be flat, and comparable earnings from the Timberlands
segment; a seasonal decline in pricing and demand, and lower earnings from the
Wood Products segment; lower selling prices for fluff pulp, increased sales
volumes, lower maintenance expense, somewhat higher energy costs and
comparable earnings from the Cellulose Fibers segment; and a seasonal increase
in home closings, lower average margins due to mix, higher selling expenses
due to additional volume, and slightly lower earnings from single-family
homebuilding operations in the Real Estate segment.

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:

  o 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;
  o 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;
  o performance of the company's manufacturing operations, including
    maintenance requirements;
  o the successful execution of internal performance plans, including
    restructurings and cost reduction initiatives;
  o the level of competition from domestic and foreign producers;
  o raw material prices;
  o energy prices;
  o transportation costs;
  o the effect of weather;
  o the risk of loss from fires, floods, windstorms, hurricanes, pest
    infestation and other natural disasters;
  o federal tax policies;
  o the effect of forestry, land use, environmental and other governmental
    regulations;
  o legal proceedings;
  o performance of pension fund investments and related derivatives;
  o the effect of timing of retirements and changes in the market price of
    company stock on charges for stock-based compensation;
  o changes in accounting principles; and
  o other factors described under "Risk Factors" in the Company's annual
    report on Form 10-K and quarterly reports on Form 10-Q.

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 also may affect the company.

For more information contact:
Media – Anthony Chavez, 253-924-7148
Analysts – Kathryn McAuley, 253-924-2058

Exhibit 99.2
Weyerhaeuser Company
Q3.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations
in millions            Q2         Q3                      Year-to-date
                       June 30,   September    September  September  September
                       2012       30, 2012     30, 2011   30, 2012   30, 2011
Net sales and revenues $          $            $          $          $        
                       1,793       1,772        1,569     5,059      4,601
Cost of products sold  1,516      1,424        1,283      4,230      3,803
Gross margin           277        348          286        829        798
Selling, general and
administrative         142        156          135        448        452
expenses
Research and           8          8            7          23         21
development expenses
Charges for
restructuring,         4          10           41         26         52
closures and
impairments
Other operating costs  (53)       (28)         3          (147)      (190)
(income), net
Operating income       176        202          100        479        463
Interest income and    11         15           15         38         35
other
Interest expense, net
of capitalized         (86)       (87)         (86)       (260)      (296)
interest
Earnings from
continuing operations  101        130          29         257        202
before income taxes
Income taxes           (17)       (13)         104        (15)       52
Earnings from          84         117          133        242        254
continuing operations
Earnings from
discontinued           -          -            24         -          12
operations, net of
income taxes
Net earnings
attributable to        $          $            $          $          $        
Weyerhaeuser common          84    117          157        242          266
shareholders
Per Share Information
                       Q2         Q3                      Year-to-date
                       June 30,   September    September  September  September
                       2012       30, 2012     30, 2011   30, 2012   30, 2011
Earnings per share
attributable to
Weyerhaeuser common
shareholders, basic
and diluted:
Continuing operations  $          $            $          $          $        
                           0.16    0.22         0.25       0.45        0.47
Discontinued           -          -            0.04       -          0.02
operations
Net earnings per share $          $            $          $          $        
                           0.16    0.22         0.29       0.45        0.49
Dividends paid per     $          $            $          $          $        
share                      0.15    0.15         0.15       0.45        0.45
Weighted average
shares outstanding (in
thousands):
Basic                  537,966    539,094      537,969    538,146    537,906
Diluted                540,033    542,311      539,827    540,694    540,469
Common shares
outstanding at end of  537,526    540,672      537,210    540,672    537,210
period (in thousands)
Earnings before Interest, Tax, Depreciation, Depletion and Amortization,
Excluding Special Items*
in millions            Q2         Q3                      Year-to-date
                       June 30,   September    September  September  September
                       2012       30, 2012     30, 2011   30, 2012   30, 2011
Operating income       $          $            $          $          $        
                           176    202           100         479         463
Depreciation,
depletion and          113        112          120        338        359
amortization
Special items          (57)       -            33         (95)       (119)
Capitalized interest
included in cost of    19         6            5          28         17
products sold
EBITDA, excluding      $          $            $          $          $        
special items*             251     320          258        750          720

 

Weyerhaeuser Company
Q3.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet
in millions                     June 30, 2012  September 30,    December 31,
                                               2012             2011
ASSETS
Forest Products:
Current assets:
Cash and cash equivalents       $         857  $                $          
                                                602              950
Receivables, less allowances    488            504              468
Receivables for taxes           6              97               22
Inventories                     487            512              476
Prepaid expenses                86             83               68
Deferred tax assets             100            117              81
Total current assets            2,024          1,915            2,065
Property and equipment, net     2,770          2,759            2,901
Construction in progress        208            220              145
Timber and timberlands at cost,
less depletion charged to       3,963          3,967            3,978
disposals
Investments in and advances to  187            188              192
equity affiliates
Goodwill                        40             40               40
Other assets                    435            352              444
Assets held by variable         916            914              916
interest entities
                                10,543         10,355           10,681
Real Estate:
Cash and cash equivalents       4              6                3
Receivables, less allowances    38             36               41
Real estate in process of       581            602              555
development and for sale
Land being processed for        959            982              936
development
Investments in and advances to  20             20               21
equity affiliates
Deferred tax assets             238            233              240
Other assets                    89             98               113
Assets held by variable         3              6                8
interest entities
                                1,932          1,983            1,917
Total assets                    $    12,475    $                $       12,598
                                                12,338
LIABILITIES AND EQUITY
Forest Products:
Current liabilities:
Current maturities of long-term $         184  $                $            
debt                                           340               12
Accounts payable                360            356              336
Accrued liabilities             576            558              593
Total current liabilities       1,120          1,254            941
Long-term debt                  4,005          3,842            4,181
Deferred income taxes           92             68               93
Deferred pension and other      1,429          1,378            1,467
postretirement benefits
Other liabilities               400            477              408
Liabilities (nonrecourse to the
company) held by variable       778            680              776
interest entities
                                7,824          7,699            7,866
Real Estate:
Long-term debt                  283            109              285
Other liabilities               171            177              172
Liabilities (nonrecourse to the
company) held by variable       -              -                8
interest entities
                                454            286              465
Total liabilities               8,278          7,985            8,331
Equity:
Total Weyerhaeuser              4,186          4,340            4,263
shareholders' interest
Noncontrolling interests        11             13               4
Total equity                    4,197          4,353            4,267
Total liabilities and equity    $     12,475   $                $       12,598
                                                12,338

Weyerhaeuser Company
Q3.2012 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows
in millions           Q2      Q3                        Year-to-date
                      June    September    September    September  September
                      30,     30, 2012     30, 2011     30, 2012   30, 2011
                      2012
Cash flows from
operations:
Net earnings          $       $            $            $          $          
                          84  117           157          242       266
Noncash charges
(credits) to income:
Depreciation,
depletion and         113     112          120          338        363
amortization
Deferred income       13      15           (103)        22         (77)
taxes, net
Pension and other
postretirement        (30)    19           17           (39)       60
benefits
Share-based           8       10           2            28         19
compensation expense
Charges for           4       7            34           19         37
impairment of assets
Net gains on
dispositions of       (10)    (22)         (51)         (39)       (227)
assets
Foreign exchange
transaction (gains)   9       (10)         19           (8)        11
losses
Change in:
Receivables less      (18)    (10)         35           (33)       (34)
allowances
Receivable for taxes  18      (1)          8            15         (19)
Inventories           28      (22)         (9)          (34)       (40)
Real estate and land  7       (47)         (15)         (95)       (49)
Prepaid expenses      (12)    2            -            (18)       (14)
Accounts payable and  65      1            (51)         10         (74)
accrued liabilities
Deposits on land
positions and other   22      (11)         (5)          11         (9)
assets
Pension and
postretirement        (33)    (41)         (27)         (109)      (64)
contributions
Other                 (1)     3            (14)         19         (5)
Net cash from         267     122          117          329        144
operations
Cash flows from
investing activities:
Property and          (68)    (75)         (62)         (197)      (136)
equipment
Timberlands           (7)     (5)          (4)          (22)       (23)
reforestation
Proceeds from sale of 18      12           157          36         353
assets
Payments of
liabilities held by   -       (97)         -            (97)       -
special purpose
entities
Other                 (1)     (1)          (1)          (1)        (6)
Cash from investing   (58)    (166)        90           (281)      188
activities
Cash flows from
financing activities:
Cash dividends        (80)    (81)         (81)         (242)      (242)
Change in book        9       (12)         (8)          (32)       (26)
overdrafts
Payments on debt      (4)     (181)        -            (187)      (550)
Exercises of stock    2       66           -            73         37
options
Repurchase of common  -       -            (24)         -          (24)
stock
Other                 (3)     (1)          (4)          (5)        (23)
Cash from financing   (76)    (209)        (117)        (393)      (828)
activities
Net change in cash    133     (253)        90           (345)      (496)
and cash equivalents
Cash and cash
equivalents at        728     861          881          953        1,467
beginning of period
Cash and cash         $       $            $            $          $        
equivalents at end of   861   608           971          608        971
period
Cash paid (received)
during the year for:
Interest, net of      $       $            $            $          $        
amount capitalized        57  117           115          290        362
                      $       $            $            $          $          
Income taxes                    1             6          (14)       21
                      (5)

Weyerhaeuser                               Total Company Statistics
Company
Q3.2012 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings
in millions         Q2        Q3                        Year-to-date
                    June 30,  September    September    September    September
                    2012      30, 2012     30, 2011     30, 2012     30, 2011
                    $         $            $            $            $        
Net earnings                  117           157          242            266
                     84
Gain on sale of
82,000 acres of     -         -            -            -            (96)
non-strategic
timberlands
Loss on early
extinguishment of   -         -            -            -            16
debt
Restructuring,
impairments and     -         -            24           10           24
other charges
Gain on
postretirement plan (33)      -            -            (67)         -
amendment
Gain on sale of     (4)       -            (9)          (4)          (9)
properties
Tax adjustments     -         -            (83)         (8)          (83)
Charges related to
the sale of         -         -            8            -            14
hardwoods
Gain on sale of
Westwood Shipping   -         -            (31)         -            (31)
Lines
Net earnings before $         $            $            $            $        
special items            47    117         66            173            101
                    Q2        Q3                        Year-to-date
                    June 30,  September    September    September    September
                    2012      30, 2012     30, 2011     30, 2012     30, 2011
Net earnings per    $         $            $            $            $        
diluted share         0.16     0.22        0.29         0.45          0.49
Gain on sale of
82,000 acres of     -         -            -            -            (0.18)
non-strategic
timberlands
Loss on early
extinguishment of   -         -            -            -            0.03
debt
Restructuring,
impairments and     -         -            0.04         0.02         0.04
other charges
Gain on
postretirement plan (0.06)    -            -            (0.12)       -
amendment
Gain on sale of     (0.01)    -            (0.01)       (0.01)       (0.01)
properties
Tax adjustments     -         -            (0.15)       (0.01)       (0.15)
Charges related to
the sale of         -         -            0.01         -            0.03
hardwoods
Gain on sale of
Westwood Shipping   -         -            (0.06)       -            (0.06)
Lines
Net earnings before $         $            $            $            $        
special items per    0.09     0.22         0.12         0.33           0.19
diluted share
Selected Total Company Items, Excluding Discontinued Operations
in millions         Q2        Q3                        Year-to-date
                    June 30,  September    September    September    September
                    2012      30, 2012     30, 2011     30, 2012     30, 2011
Depreciation,
depletion and
amortization:
Cost of products    $         $            $            $            $        
sold                   103    102           108          307            318
Selling, general
and administrative  10        10           12           31           41
expenses
Total depreciation, $         $            $            $            $        
depletion and          113    112           120         338            359
amortization
Pension and
postretirement
costs:
Pension and
postretirement      $         $            $            $            $        
costs allocated to       14   12              9          39              34
business segments
Pension and
postretirement      7         7            6            21           21
costs not allocated
Total company
pension and         $         $            $            $            $        
postretirement           21   19            15          60               55
costs
Total decrease
(increase) in       $         $            $            $            $        
Forest Products         103    (29)         70           (74)         (170)
working capital
^(1)
Cash spent for      $         $            $            $            $        
capital                 (75)   (80)        (65)          (219)        (156)
expenditures
^(1)Working capital does not include cash
balances.

 

Weyerhaeuser Company                              Timberlands Segment
Q3.2012 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions                     Q2.2012  Q3.2012  Q3.2011  YTD.2012   YTD.2011
Sales to and revenues from      $        $        $        $          $      
unaffiliated customers           262      267      252      779        770
Intersegment sales              146      162      154      498        479
Total net sales and revenues    408      429      406      1,277      1,249
Cost of products sold           313      336      322      1,002      932
Gross margin                    95       93       84       275        317
Selling, general and            23       24       23       72         70
administrative expenses
Research and development        5        4        4        13         12
expenses
Other operating income, net     (10)     (14)     (3)      (35)       (182)
Operating income                77       79       60       225        417
Interest income and other       -        1        1        2          3
Net contribution to earnings†   $        $        $        $          $      
                                  77       80       61     227        420
Earnings before Interest, Tax, Depreciation, Depletion and Amortization,
Excluding Special Items*
in millions                     Q2.2012  Q3.2012  Q3.2011  YTD.2012   YTD.2011
Operating income                $        $        $        $          $      
                                  77       79       60     225        417
Depreciation, depletion and     34       35       35       104        102
amortization
Special items                   -        -        -        -          (152)
EBITDA, excluding special       $        $        $        $          $      
items*                          111      114        95     329        367
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
                                Q2.2012  Q3.2012  Q3.2011  YTD.2012   YTD.2011
Gain on sale of 82,000 acres of $        $        $        $          $      
non-strategic timberlands           -        -        -      -         152
Selected Segment Items
                                Q2.2012  Q3.2012  Q3.2011  YTD.2012   YTD.2011
Total decrease (increase) in    $        $        $        $          $      
working capital ^(1)                 6      19       60     16         (20)
Cash spent for capital          $        $        $        $          $      
expenditures                     (15)     (17)     (12)     (44)       (40)
^(1)Working capital does not include cash
balances.
Segment Statistics
                                Q2.2012  Q3.2012  Q3.2011  YTD.2012   YTD.2011
              Logs:
              West              $        $        $        $          $      
                                 146      132      144      408        406
              South             56       60       53       166        143
              Canada            2        5        4        14         12
              Total Logs        204      197      201      588        561
              Pay as cut timber 9        8        9        28         25
              sales
Third Party   Timberlands       7        24       2        39         62
Net Sales     exchanges
and Revenue   Higher and better 5        4        5        13         11
(millions)    use land sales
              Minerals, oil and 7        8        14       22         43
              gas
              Products from
              international     29       26       21       80         59
              operations
              Other products    1        -        -        9          9
              Total             $        $        $        $          $      
                                 262      267      252      779        770
              West              $        $        $        $          $  
                                94.47    89.28    104.27   94.09      104.97
Logs          South             $        $        $        $          $    
Third Party                     41.15    42.04    39.11    41.26      40.21
Sales         Canada            $        $        $        $          $    
Realizations                    34.66    35.23    33.73    35.74      34.91
(per cubic    International     $        $        $        $          $    
meter)                          23.53    23.76    33.73    23.45      35.65
              West              1,551    1,480    1,385    4,339      3,871

Logs          South             1,354    1,430    1,336    4,012      3,552
Third Party
Sales         Canada            54       133      116      392        333
Volumes
(cubic        International     82       99       88       259        239
meters,
thousands)    Total             3,041    3,142    2,925    9,002      7,995
              West              1,831    1,784    1,604    5,294      4,962

Logs          South             2,788    2,809    2,535    8,311      7,070
Fee Harvest
Volumes       International     161      198      270      531        589
(cubic
meters,       Total             4,780    4,791    4,409    14,136     12,621
thousands)

Weyerhaeuser Company                               Wood Products Segment
Q3.2012 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations  
in millions                      Q2.2012  Q3.2012  Q3.2011  YTD.2012  YTD.2011
Sales to and revenues from       $        $        $        $         $  
unaffiliated customers           776      816      603       2,226     1,734
Intersegment sales               20       18       20       58        61
Total net sales and revenues     796      834      623      2,284     1,795
Cost of products sold            708      713      624      2,032     1,786
Gross margin                     88       121      (1)      252       9
Selling, general and             50       54       47       154       146
administrative expenses
Research and development         1        2        1        4         3
expenses
Charges for restructuring,       2        2        38       5         44
closures and impairments
Other operating costs (income),  (1)      4        (6)      8         (15)
net
Operating income (loss)          36       59       (81)     81        (169)
Interest income and other        -        -        1        1         3
Net contribution to earnings     36       59       (80)     82        (166)
from continuing operations
Net contribution to earnings     -        -        (17)     -         (25)
from discontinued operations
Net contribution to earnings†    $        $        $        $         $  
                                  36       59       (97)     82        (191)
Earnings before Interest, Tax, Depreciation, Depletion and Amortization,
Excluding Special Items*
in millions                      Q2.2012  Q3.2012  Q3.2011  YTD.2012  YTD.2011
Operating income (loss)          $        $        $        $         $  
                                  36       59       (81)     81        (169)
Depreciation, depletion and      33       33       38       100       116
amortization
Special items                    (6)      -        33       (6)       33
EBITDA, excluding special items* $        $        $        $         $    
                                  63       92       (10)    175        (20)
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  
                                 Q2.2012  Q3.2012  Q3.2011  YTD.2012  YTD.2011
Gain on sale of property         $        $        $        $         $      
                                   6      -          5          6         5
Charges for restructuring and    $        $        $                  $      
impairments                        -      -        (38)               (38)
Total special items from         6        -        (33)     6         (33)
continuing operations
Charges related to sale of
discontinued hardwoods           -        -        (13)     -         (22)
operations
Total                            $        $        $        $         $    
                                  6       -         (46)       6       (55)
Selected Segment Items
                                 Q2.2012  Q3.2012  Q3.2011  YTD.2012  YTD.2011
Total decrease (increase) in     $        $        $        $         $      
working capital ^(1)               5      (21)     34       (128)     (41)
Cash spent for capital           $        $        $        $         $      
expenditures                     (15)     (16)     (8)      (37)      (21)
^(1)Working capital does not
include cash balances.
Segment Statistics
in millions, except for          Q2.2012  Q3.2012  Q3.2011  YTD.2012  YTD.2011
third-party sales realizations
                   Third Party   $        $        $        $         $      
                   Net Sales and 370      363      281       1,024    831
                   Revenue
                   Third Party   $        $        $        $         $      
Structural Lumber  Sales         350      359      301      341       305
(board feet)       Realizations
                   Third Party   1,056    1,013    934      3,006     2,723
                   Sales Volumes
                   Production    1,004    945      890      2,907     2,686
                   Volumes
                   Third Party   $        $        $        $         $      
                   Net Sales and 70       76       63       211       180
                   Revenue
Engineered Solid   Third Party   $        $        $        $         $  
Section            Sales          1,789    1,800    1,883    1,806     1,967
(cubic feet)       Realizations
                   Third Party   3.9      4.2      3.4      11.7      9.2
                   Sales Volumes
                   Production    3.8      4.3      3.4      11.8      10.7
                   Volumes
                   Third Party   $        $        $        $         $      
                   Net Sales and 49       53       43       143       124
                   Revenue
Engineered         Third Party   $        $        $        $         $  
I-joists           Sales          1,211    1,248    1,275    1,246     1,266
(lineal feet)      Realizations
                   Third Party   40       43       34       115       98
                   Sales Volumes
                   Production    37       39       32       110       96
                   Volumes
                   Third Party   $        $        $        $         $      
                   Net Sales and 138      169      96       418       264
                   Revenue
Oriented Strand    Third Party   $        $        $        $         $      
Board              Sales         214      268      176      227       181
(square feet 3/8') Realizations
                   Third Party   643      630      546      1,838     1,462
                   Sales Volumes
                   Production    626      642      574      1,869     1,586
                   Volumes
                   Third Party   $        $        $        $         $      
                   Net Sales and 26       34       18         83        48
                   Revenue
                   Third Party   $        $        $        $         $      
Softwood Plywood   Sales         332      356      259      334       260
(square feet 3/8') Realizations
                   Third Party   81       95       69       249       185
                   Sales Volumes
                   Production    50       54       49       155       150
                   Volumes

 

Weyerhaeuser Company                              Cellulose Fibers Segment
Q3.2012 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions                   Q2.2012   Q3.2012   Q3.2011   YTD.2012  YTD.2011
Total net sales and revenues  $   459   $   459   $   503   $  1,391  $  1,535
Cost of products sold         404       364       345       1,175     1,156
Gross margin                  55        95        158       216       379
Selling, general and          22        23        24        69        70
administrative expenses
Research and development      2         2         2         6         6
expenses
Other operating income, net   (4)       (5)       (4)       (18)      (12)
Operating income              35        75        136       159       315
Interest income and other     1         3         3         3         1
Net contribution to earnings† $         $         $   139   $         $    
                               36        78                 162       316
Earnings before Interest, Tax, Depreciation, Depletion and Amortization,
Excluding Special Items*
in millions                   Q2.2012   Q3.2012   Q3.2011   YTD.2012  YTD.2011
Operating income              $         $         $   136   $         $    
                               35        75                 159       315
Depreciation, depletion and   36        37        37        110       110
amortization
EBITDA, excluding special     $         $   112   $   173   $         $    
items*                         71                           269       425
Selected Segment Items
                              Q2.2012   Q3.2012   Q3.2011   YTD.2012  YTD.2011
Total decrease (increase) in  $         $         $         $         $      
working capital ^(1)          24        (20)      (14)        49      (37)
Cash spent for capital        $         $         $         $         $      
expenditures                  (44)      (45)      (43)      (134)     (92)
^(1)Working capital does not include cash
balances.
Segment Statistics
                              Q2.2012   Q3.2012   Q3.2011   YTD.2012  YTD.2011
                Third Party
                Net Sales and $         $         $         $         $  
                Revenue       348       354       391        1,069     1,198
                (millions)
                Third Party   $         $         $         $         $      
Pulp            Sales         819       818       920       818       930
(air-dry metric Realizations
tons)           Third Party
                Sales Volumes 425       432       426       1,306     1,288
                (thousands)
                Production
                Volumes       417       453       462       1,308     1,309
                (thousands)
                Third Party
                Net Sales and $         $         $         $         $      
                Revenue       90        84        87        257       265
                (millions)
Liquid          Third Party                                 $         $  
Packaging       Sales         $  1,176  $  1,155  $  1,165   1,171     1,170
Board           Realizations
(tons)          Third Party
                Sales Volumes 76        74        76        220       227
                (thousands)
                Production
                Volumes       78        77        81        220       228
                (thousands)

 

Weyerhaeuser Company                                      Real Estate Segment
Q3.2012 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions          Q2.2012      Q3.2012      Q3.2011    YTD.2012   YTD.2011
Total net sales and  $   296      $   230      $   211    $     663  $     562
revenues
Cost of products     248          175          164        536        437
sold
Gross margin         48           55           47         127        125
Selling, general and
administrative       34           36           36         102        107
expenses
Charges for
restructuring,       1            3            2          5          4
closures and
impairments
Other operating      (1)          -            -          (1)        -
income, net
Operating income     14           16           9          21         14
Interest income and  1            1            1          3          3
other
Net contribution to  $      15    $      17    $      10  $          $      
earnings                                                   24         17
Earnings before Interest, Tax, Depreciation, Depletion and Amortization,
Excluding Special Items*
in millions          Q2.2012      Q3.2012      Q3.2011    YTD.2012   YTD.2011
Operating income     $      14    $      16    $          $          $      
                                                9          21         14
Depreciation,
depletion and        3            3            3          8          9
amortization
Capitalized interest
included in cost of  14           5            3          22         13
products sold
EBITDA, excluding    $      31    $      24    $      15  $          $      
special items*                                             51         36
Selected Segment Items
                     Q2.2012      Q3.2012      Q3.2011    YTD.2012   YTD.2011
Cash spent for       $       -    $            $          $          $        
capital expenditures              (1)          (1)        (2)        (2)
Segment Statistics
                     Q2.2012      Q3.2012      Q3.2011    YTD.2012   YTD.2011
Net sales and
revenues:
Single-family        $     190    $     229    $     204  $          $      
housing                                                   550        536
Land                 105          1            5          109        23
Other                1            -            2          4          3
Total net sales and  $     296    $     230    $     211  $          $      
revenue                                                   663        562
Single-family homes  764          637          440        2,098      1,496
sold
Single-family homes  508          615          508        1,472      1,330
closed
Single-family homes
sold but not closed  1,033        1,055        605        1,055      605
(backlog)
Single-family        15.4 %       18.3 %       17.4 %     14.6 %     15.0 %
cancellation rate
Single-family buyer  17,677       17,894       11,803     49,843     39,592
traffic
Single-family
average price of     $     374    $     372    $     403  $          $      
homes closed (in                                          374        403
thousands)
Single-family home
gross margin -       19.5 %       24.3 %       23.0 %     21.0 %     22.4 %
excluding
impairments ^(1)
^(1)Single-family gross margin excluding impairments equals revenue less cost
of sales and period costs (other than impairments and deposit write-offs).

Weyerhaeuser Company                                      Unallocated Items
Q3.2012 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          Q2.2012       Q3.2012     Q3.2011    YTD.2012   YTD.2011
Unallocated                        $           $          $          $      
corporate function   $       (3)   (5)         (10)       (14)       (36)
expenses
Unallocated
share-based          (1)           (7)         12         (13)       1
compensation
Unallocated pension
& postretirement     (7)           (7)         (6)        (21)       (21)
costs
Foreign exchange     (8)           11          (16)       9          (9)
gains (losses)
Elimination of
intersegment profit  (2)           (10)        1          (24)       (19)
in inventory and
LIFO†
Other                35            (9)         (5)        56         (30)
Operating income     14            (27)        (24)       (7)        (114)
(loss)
Interest income and  9             10          9          29         25
other
Net contribution to
earnings from        23            (17)        (15)       22         (89)
continuing
operations
Net contribution to
earnings from        -             -           54         -          45
discontinued
operations
Net contribution to  $      23     $    (17)   $      39  $          $    
earnings                                                   22         (44)
†We began reporting the elimination of intersegment profit on inventory and
the LIFO reserve in Unallocated Items in second quarter 2012. Previously these
company-level adjustments were recorded in the business segments. This
provides a better understanding of business operating results. Prior period
results have been adjusted to reflect the change.
Earnings before Interest, Tax, Depreciation, Depletion and Amortization,
Excluding Special Items*
in millions          Q2.2012       Q3.2012     Q3.2011    YTD.2012   YTD.2011
Operating income     $      14     $    (27)   $    (24)  $          $  
(loss)                                                     (7)        (114)
Depreciation,
depletion and        7             4           7          16         22
amortization
Special items        (51)          -           -          (89)       -
Capitalized interest
included in cost of  5             1           2          6          4
products sold
EBITDA, excluding    $    (25)     $    (22)   $    (15)  $          $    
special items*                                             (74)       (88)
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)
                     Q2.2012       Q3.2012     Q3.2011    YTD.2012   YTD.2011
Gain on                                        $          $          $        
postretirement plan  $       51    $       -    -         103           -
amendment
Restructuring,
impairments and      -             -           -          (14)       -
other charges
Total special items                            $          $          $        
from continuing      $       51    $       -    -         89            -
operations
Gain on sale of      $             $       -   $          $          $        
property              -                         9            -         9
Gain on sale of                                $          $          $        
Westwood Shipping    $         -   $       -   49           -        49
Lines
Total                $      51     $       -   $          $          $        
                                               58          89        58
Unallocated Selected Items
                     Q2.2012       Q3.2012     Q3.2011    YTD.2012   YTD.2011
Total decrease                     $           $          $          $      
(increase) in        $       68    (7)         (10)       (11)       (72)
working capital ^(1)
Cash spent for       $       (1)   $           $          $          $        
capital expenditures               (1)         (1)        (2)        (1)
^(1)Working capital does not include cash
balances.

*EBITDA excluding special items is a non-GAAP measure that management uses to
evaluate the performance of the company. EBITDA excluding special items, as we
define it, is operating income from continuing operations adjusted for
depreciation, depletion, amortization, special items and interest included in
cost of products sold. EBITDA excluding special items should not be considered
in isolation from and is not intended to represent an alternative to our
results computed under GAAP.

 

SOURCE Weyerhaeuser Company

Website: http://www.weyerhaeuser.com
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