- Achieved net earnings of $788
million, or $1.06 per diluted
share
- Generated record first half Adjusted EBITDA of $2.7 billion
- Enhanced portfolio with strategic timberlands acquisition in
North and South Carolina
SEATTLE, July 29,
2022 /PRNewswire/ -- Weyerhaeuser Company (NYSE:
WY) today reported second quarter net earnings of $788
million, or $1.06 per diluted
share, on net sales of $3.0 billion.
This compares with net earnings of $1.0
billion, or $1.37 per
diluted share, on net sales of $3.1
billion for the same period last year and net earnings of
$771 million for the first quarter of
2022. There were no special items in the second quarter of 2022 or
the same period last year. Net earnings before special items was
$978 million for the first quarter of
2022.
View our earnings release and financial statements in a
printer-friendly PDF.
Adjusted EBITDA for the second quarter of 2022 was $1.2 billion compared with $1.6 billion for the same period last year
and $1.5 billion for the first
quarter of 2022.
"In the second quarter, our teams delivered strong results
across each of our businesses," said Devin W. Stockfish, president
and chief executive officer. "Year to date, we have generated
$2.7 billion of Adjusted EBITDA and
$1.9 billion of Adjusted Funds
Available for Distribution. Looking forward, we remain constructive
on long-term demand fundamentals that support our businesses,
notwithstanding the recent macroeconomic headwinds. Our financial
position is exceptionally strong, and we remain committed to
delivering operational excellence across our unmatched portfolio of
assets and enhancing shareholder value through disciplined capital
allocation."
WEYERHAEUSER
FINANCIAL HIGHLIGHTS
|
|
2022
|
|
2022
|
|
2021
|
(millions, except
per share data)
|
|
Q1
|
|
Q2
|
|
Q2
|
Net sales
|
|
$3,112
|
|
$2,973
|
|
$3,144
|
Net earnings
|
|
$771
|
|
$788
|
|
$1,028
|
Net earnings per
diluted share
|
|
$1.03
|
|
$1.06
|
|
$1.37
|
Weighted average shares
outstanding, diluted
|
|
749
|
|
746
|
|
752
|
Net earnings before
special items(1)(2)
|
|
$978
|
|
$788
|
|
$1,028
|
Net earnings per
diluted share before special items(1)
|
|
$1.31
|
|
$1.06
|
|
$1.37
|
Adjusted
EBITDA(1)
|
|
$1,497
|
|
$1,205
|
|
$1,573
|
Net cash from
operations
|
|
$957
|
|
$1,146
|
|
$1,308
|
Adjusted
FAD(3)
|
|
$850
|
|
$1,065
|
|
$1,236
|
|
|
(1)
|
Net earnings before
special items is a non-GAAP measure that management believes
provides helpful context in understanding the company's earnings
performance. Additionally, Adjusted EBITDA is a non-GAAP measure
that management uses to evaluate the performance of the company.
Adjusted EBITDA, as we define it, is operating income adjusted for
depreciation, depletion, amortization, basis of real estate sold
and special items. Net earnings before special items and Adjusted
EBITDA should not be considered in isolation from, and are not
intended to represent an alternative to, our GAAP results.
Reconciliations of net earnings before special items and Adjusted
EBITDA to GAAP earnings are included within this
release.
|
|
|
(2)
|
Special items for prior
periods presented are included in the reconciliation tables within
this release.
|
|
|
(3)
|
Adjusted Funds
Available for Distribution (Adjusted FAD) is a non-GAAP measure
that management uses to evaluate the company's liquidity. Adjusted
FAD, as we define it, is net cash from operations adjusted for
capital expenditures and significant non-recurring items. Adjusted
FAD measures cash generated during the period (net of capital
expenditures and significant non-recurring items) that is available
for dividends, repurchases of common shares, debt reduction,
acquisitions, and other discretionary and nondiscretionary capital
allocation activities. Adjusted FAD should not be considered in
isolation from, and is not intended to represent an alternative to,
our GAAP results. A reconciliation of Adjusted FAD to net cash from
operations is included within this release.
|
TIMBERLANDS
FINANCIAL
HIGHLIGHTS
|
|
2022
|
|
2022
|
|
|
(millions)
|
|
Q1
|
|
Q2
|
|
Change
|
Net sales
|
|
$626
|
|
$671
|
|
$45
|
Net contribution to
pretax earnings
|
|
$182
|
|
$153
|
|
$(29)
|
Adjusted
EBITDA
|
|
$247
|
|
$219
|
|
$(28)
|
Q2 2022 Performance – In the West, fee harvest volumes
were moderately lower than the first quarter due to unseasonably
wet weather. Domestic sales realizations were moderately lower and
per unit log and haul costs were significantly higher as harvesting
operations transitioned to higher elevation units. Export sales
realizations were moderately higher and export sales volumes were
significantly higher, driven by strong demand in Japan. In the South, sales realizations for
sawlogs and fiber logs were slightly higher, and fee harvest
volumes increased moderately. Per unit log and haul costs were
significantly higher, primarily due to fuel-related costs. Forestry
and road costs in the West and South were seasonally higher.
Q3 2022 Outlook – Weyerhaeuser anticipates third
quarter earnings before special items and Adjusted EBITDA will be
lower than second quarter 2022, but moderately higher than third
quarter 2021. In the West, the company expects comparable fee
harvest volumes and significantly lower sales volumes due to
export. Sales realizations are expected to be moderately lower, and
per unit log and haul costs are expected to be lower. In the South,
the company expects sales realizations and per unit log and haul
costs to be comparable and fee harvest volumes to be moderately
higher. Forestry and road costs in the West and South are expected
to be seasonally higher.
REAL ESTATE, ENERGY & NATURAL RESOURCES
FINANCIAL
HIGHLIGHTS
|
|
2022
|
|
2022
|
|
|
(millions)
|
|
Q1
|
|
Q2
|
|
Change
|
Net sales
|
|
$128
|
|
$117
|
|
$(11)
|
Net contribution to
pretax earnings
|
|
$81
|
|
$65
|
|
$(16)
|
Adjusted
EBITDA
|
|
$116
|
|
$107
|
|
$(9)
|
Q2 2022 Performance – Earnings and Adjusted EBITDA
decreased from the first quarter due to lower real estate sales.
The average price per acre decreased and the average basis as a
percentage of sales increased due to the mix of properties
sold.
Q3 2022 Outlook – Weyerhaeuser anticipates third quarter
earnings and Adjusted EBITDA will be slightly lower than third
quarter 2021, primarily due to a decrease in acres sold year over
year. The company now expects full year 2022 Adjusted EBITDA for
the segment will be approximately $325
million, a $25 million
increase from previous guidance.
WOOD PRODUCTS
FINANCIAL
HIGHLIGHTS
|
|
2022
|
|
2022
|
|
|
(millions)
|
|
Q1
|
|
Q2
|
|
Change
|
Net sales
|
|
$2,519
|
|
$2,341
|
|
$(178)
|
Net contribution to
pretax earnings
|
|
$1,182
|
|
$863
|
|
$(319)
|
Adjusted
EBITDA
|
|
$1,233
|
|
$912
|
|
$(321)
|
Q2 2022 Performance – Sales realizations for lumber and
oriented strand board decreased 25 percent and 14 percent,
respectively, compared with first quarter averages. Sales volumes
for lumber were significantly higher due to seasonal inventory
drawdown and improved production, while unit manufacturing costs
and log costs were slightly higher. Sales volumes for oriented
strand board were slightly higher. Unit manufacturing costs were
moderately higher and fiber costs were comparable. Sales
realizations and production volumes for most engineered wood
products were significantly higher. This was partially offset by
significantly higher raw material costs, primarily for oriented
strand board webstock. Distribution commodity realizations were
significantly lower.
Q3 2022 Outlook – Weyerhaeuser anticipates third
quarter earnings and Adjusted EBITDA will be comparable to the
second quarter, excluding the effect of changes in average sales
realizations for lumber and oriented strand board. The company
expects comparable sales volumes and unit manufacturing costs for
lumber, as well as moderately lower log costs. For oriented strand
board, the company expects slightly lower sales volumes, comparable
fiber costs, and significantly higher unit manufacturing costs due
to planned maintenance outages. Raw material costs for engineered
wood products are expected to be significantly lower, primarily for
oriented strand board webstock, partially offset by lower sales
realizations, primarily for plywood. Sales volumes for engineered
wood products are expected to be comparable.
UNALLOCATED
FINANCIAL
HIGHLIGHTS
|
|
2022
|
|
2022
|
|
|
(millions)
|
|
Q1
|
|
Q2
|
|
Change
|
Net charge to pretax
earnings
|
|
$(117)
|
|
$(44)
|
|
$73
|
Adjusted
EBITDA
|
|
$(99)
|
|
$(33)
|
|
$66
|
Q2 2022 Performance – Second quarter results include an
$18 million noncash benefit for the
elimination of intersegment profit in inventory and LIFO due to a
decrease in log and lumber inventories.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners
of timberlands, began operations in 1900. We own or control
approximately 11 million acres of timberlands in the U.S. and
manage additional timberlands under long-term licenses in
Canada. We manage these
timberlands on a sustainable basis in compliance with
internationally recognized forestry standards. We are also one of
the largest manufacturers of wood products in North America. Our company is a real estate
investment trust. In 2021, we generated $10.2 billion in net sales and employed
approximately 9,200 people who serve customers worldwide. Our
common stock trades on the New York Stock Exchange under the symbol
WY. Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10
a.m. Eastern) on July 29, 2022
to discuss second quarter results.
To access the live webcast and presentation online, go to the
Investor Relations section on www.weyerhaeuser.com on July 29, 2022.
To join the conference call from within North America, dial 877-407-0792 (access code:
13724915) at least 15 minutes prior to the call. Those calling from
outside North America should dial
201-689-8263 (access code: 13724915). Replays will be available for
two weeks at 844-512-2921 (access code: 13724915) from within
North America, and at 412-317-6671
(access code: 13724915) from outside North America.
FORWARD-LOOKING STATEMENTS
This news release contains statements concerning the company's
future results and performance that are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including, but not limited to, with respect to our outlook
and expectations concerning the following: earnings and Adjusted
EBITDA for the company and for each of our businesses; sales
volumes and sales realizations for our Timberlands business; log
and haul, forestry and road costs and expenses; fee harvest
volumes; acres to be sold; sales volumes and unit manufacturing
costs for our lumber and oriented strand board businesses; sales
realizations and sales volumes for our engineered wood products
business; materials costs for each of our Wood Products lines;
long-term demand fundamentals affecting our businesses; and
long-term shareholder value and returns. Forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts. They often involve use of words and
expressions such as "anticipate," "expect," "looking forward,"
"planned," "will," and similar words and expressions. They may use
the positive, negative or another variation of those and similar
words and expressions. These forward-looking statements are based
on our current expectations and assumptions and are not guarantees
of future events or performance. The realization of our
expectations and the accuracy of our assumptions are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not
limited to:
- the effect of general economic conditions, including employment
rates, interest rate levels, inflation, housing starts, general
availability of financing for home mortgages and the relative
strength of the U.S. dollar;
- the effect of COVID-19 and other viral or disease outbreaks and
their potential effects on our business, results of operations,
cash flows, financial condition and future prospects;
- market demand for the company's products, including market
demand for our timberland properties with higher and better uses,
which is related to, among other factors, the strength of the
various U.S. business segments and U.S. and international economic
conditions;
- changes in currency exchange rates, particularly the relative
value of the U.S. dollar to the Japanese yen, the Chinese yuan, and
the Canadian dollar, and the relative value of the euro to the
yen;
- restrictions on international trade and tariffs imposed on
imports or exports;
- the availability and cost of shipping and transportation;
- economic activity in Asia,
especially Japan and China;
- performance of our manufacturing operations, including
maintenance and capital requirements;
- potential disruptions in our manufacturing operations;
- the level of competition from domestic and foreign
producers;
- the successful execution of our internal plans and strategic
initiatives, including restructuring and cost reduction
initiatives;
- our ability to hire and retain capable employees;
- the successful and timely execution and integration of our
strategic acquisitions, including our ability to realize expected
benefits and synergies, and the successful and timely execution of
our strategic divestitures, each of which is subject to a number of
risks and conditions beyond our control including, but not limited
to, timing and required regulatory approvals or the occurrence of
any event, change or other circumstances that could give rise to a
termination of any acquisition or divestiture transaction under the
terms of the governing transaction agreements;
- raw material availability and prices;
- the effect of weather;
- changes in global or regional climate conditions and
governmental response to such changes;
- the risk of loss from fires, floods, windstorms, hurricanes,
pest infestation and other natural disasters;
- energy prices;
- transportation and labor availability and costs;
- federal tax policies;
- the effect of forestry, land use, environmental and other
governmental regulations;
- legal proceedings;
- performance of pension fund investments and related
derivatives;
- the effect of timing of employee retirements as it relates to
the cost of pension benefits and changes in the market price of our
common stock on charges for share-based compensation;
- the accuracy of our estimates of costs and expenses related to
contingent liabilities and the accuracy of our estimates of charges
related to casualty losses;
- changes in accounting principles; and
- other risks and uncertainties identified in our 2021 Annual
Report on Form 10-K, as well as those set forth from time to time
in our other public statements, reports, registration statements,
prospectuses, information statements and other filings with the
SEC.
It is not possible to predict or identify all risks and
uncertainties that might affect the accuracy of our forward-looking
statements and, consequently, our descriptions of such risks and
uncertainties should not be considered exhaustive. There is no
guarantee that any of the events anticipated by these
forward-looking statements will occur, and if any of the events do
occur, there is no guarantee what effect they will have on the
company's business, results of operations, cash flows, financial
condition and future prospects.
Forward-looking statements speak only as of the date they are
made, and we undertake no obligation to publicly update or revise
any forward-looking statements, whether because of new information,
future events, or otherwise.
RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS
We reconcile Adjusted EBITDA to net earnings for the
consolidated company and to operating income (loss) for the
business segments, as those are the most directly comparable U.S.
GAAP measures for each.
The table below reconciles Adjusted EBITDA for the quarter ended
March 31, 2022:
(millions)
|
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
|
$771
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
|
72
|
Loss on debt
extinguishment(1)
|
|
|
|
|
|
|
|
|
|
276
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
209
|
Net contribution
(charge) to earnings
|
|
$182
|
|
$81
|
|
$1,182
|
|
$(117)
|
|
$1,328
|
Non-operating pension
and other post-employment benefit costs
|
|
—
|
|
—
|
|
—
|
|
15
|
|
15
|
Interest income and
other
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Operating income
(loss)
|
|
182
|
|
81
|
|
1,182
|
|
(101)
|
|
1,344
|
Depreciation,
depletion and amortization
|
|
65
|
|
4
|
|
51
|
|
2
|
|
122
|
Basis of real estate
sold
|
|
—
|
|
31
|
|
—
|
|
—
|
|
31
|
Adjusted
EBITDA
|
|
$247
|
|
$116
|
|
$1,233
|
|
$(99)
|
|
$1,497
|
|
|
(1)
|
Loss on debt
extinguishment is a pretax special item related to the early
extinguishment of $931 million of debt.
|
The table below reconciles Adjusted EBITDA for the quarter ended
June 30, 2022:
(millions)
|
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
|
$788
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
|
65
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
184
|
Net contribution
(charge) to earnings
|
|
$153
|
|
$65
|
|
$863
|
|
$(44)
|
|
$1,037
|
Non-operating pension
and other post-employment benefit costs
|
|
—
|
|
—
|
|
—
|
|
11
|
|
11
|
Interest income and
other
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
(1)
|
Operating income
(loss)
|
|
153
|
|
65
|
|
863
|
|
(34)
|
|
1,047
|
Depreciation,
depletion and amortization
|
|
66
|
|
3
|
|
49
|
|
1
|
|
119
|
Basis of real estate
sold
|
|
—
|
|
39
|
|
—
|
|
—
|
|
39
|
Adjusted
EBITDA
|
|
$219
|
|
$107
|
|
$912
|
|
$(33)
|
|
$1,205
|
The table below reconciles Adjusted EBITDA for the quarter ended
June 30, 2021:
(millions)
|
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
|
$1,028
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
|
78
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
324
|
Net contribution
(charge) to earnings
|
|
$113
|
|
$63
|
|
$1,338
|
|
$(84)
|
|
$1,430
|
Non-operating pension
and other post-employment benefit costs
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Interest income and
other
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
(2)
|
Operating income
(loss)
|
|
113
|
|
63
|
|
1,338
|
|
(85)
|
|
1,429
|
Depreciation,
depletion and amortization
|
|
67
|
|
4
|
|
48
|
|
1
|
|
120
|
Basis of real estate
sold
|
|
—
|
|
24
|
|
—
|
|
—
|
|
24
|
Adjusted
EBITDA
|
|
$180
|
|
$91
|
|
$1,386
|
|
$(84)
|
|
$1,573
|
The table below reconciles Adjusted EBITDA for the year-to-date
period ended June 30, 2022:
(millions)
|
|
Timberlands
|
|
Real Estate
& ENR
|
|
Wood
Products
|
|
Unallocated
Items
|
|
Total
|
Adjusted EBITDA by
Segment:
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
|
|
|
|
|
|
|
$1,559
|
Interest expense, net
of capitalized interest
|
|
|
|
|
|
|
|
|
|
137
|
Loss on debt
extinguishment(1)
|
|
|
|
|
|
|
|
|
|
276
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
393
|
Net contribution
(charge) to earnings
|
|
$335
|
|
$146
|
|
$2,045
|
|
$(161)
|
|
$2,365
|
Non-operating pension
and other post-employment benefit costs
|
|
—
|
|
—
|
|
—
|
|
26
|
|
26
|
Interest income and
other
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Operating income
(loss)
|
|
335
|
|
146
|
|
2,045
|
|
(135)
|
|
2,391
|
Depreciation,
depletion and amortization
|
|
131
|
|
7
|
|
100
|
|
3
|
|
241
|
Basis of real estate
sold
|
|
—
|
|
70
|
|
—
|
|
—
|
|
70
|
Adjusted
EBITDA
|
|
$466
|
|
$223
|
|
$2,145
|
|
$(132)
|
|
$2,702
|
|
|
(1)
|
Loss on debt
extinguishment is a pretax special item related to the early
extinguishment of $931 million of debt.
|
RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET
EARNINGS
We reconcile net earnings before special items to net earnings
and net earnings per diluted share before special items to net
earnings per diluted share, as those are the most directly
comparable U.S. GAAP measures. We believe the measures provide
meaningful supplemental information for investors about our
operating performance, better facilitate period to period
comparisons and are widely used by analysts, lenders, rating
agencies and other interested parties.
The table below reconciles net earnings before special items to
net earnings:
|
|
2022
|
|
2022
|
|
2021
|
(millions)
|
|
Q1
|
|
Q2
|
|
Q2
|
Net
earnings
|
|
$771
|
|
$788
|
|
$1,028
|
Loss on debt
extinguishment
|
|
207
|
|
—
|
|
—
|
Net earnings before
special items
|
|
$978
|
|
$788
|
|
$1,028
|
The table below reconciles net earnings per diluted share before
special items to net earnings per diluted share:
|
|
2022
|
|
2022
|
|
2021
|
|
|
Q1
|
|
Q2
|
|
Q2
|
Net earnings per
diluted share
|
|
$1.03
|
|
$1.06
|
|
$1.37
|
Loss on debt
extinguishment
|
|
0.28
|
|
—
|
|
—
|
Net earnings per
diluted share before special items
|
|
$1.31
|
|
$1.06
|
|
$1.37
|
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM
OPERATIONS
We reconcile Adjusted FAD to net cash from operations, as that
is the most directly comparable U.S. GAAP measure. We believe the
measure provides meaningful supplemental information for investors
about our liquidity.
The table below reconciles Adjusted FAD to net cash from
operations:
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
(millions)
|
|
Q1
|
|
Q2
|
|
Q2
|
|
Q2
YTD
|
Net cash from
operations
|
|
$957
|
|
$1,146
|
|
$1,308
|
|
$2,103
|
Capital
expenditures
|
|
(70)
|
|
(81)
|
|
(72)
|
|
(151)
|
Adjustments to
FAD(1)
|
|
(37)
|
|
—
|
|
—
|
|
(37)
|
Adjusted
FAD
|
|
$850
|
|
$1,065
|
|
$1,236
|
|
$1,915
|
|
|
(1)
|
Adjustments to FAD
include a $37 million product remediation insurance recovery
received in first quarter 2022.
|
For more information contact:
Analysts – Andy
Taylor (206) 539-3907
Media - Nancy Thompson
(919) 861-0342
Weyerhaeuser
Company
|
Exhibit
99.2
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Consolidated
Statement of Operations
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
in millions
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Net sales
|
|
$
|
3,112
|
|
|
$
|
2,973
|
|
|
$
|
3,144
|
|
|
$
|
6,085
|
|
|
$
|
5,650
|
|
Costs of
sales
|
|
|
1,647
|
|
|
|
1,789
|
|
|
|
1,583
|
|
|
|
3,436
|
|
|
|
3,013
|
|
Gross margin
|
|
|
1,465
|
|
|
|
1,184
|
|
|
|
1,561
|
|
|
|
2,649
|
|
|
|
2,637
|
|
Selling
expenses
|
|
|
23
|
|
|
|
23
|
|
|
|
24
|
|
|
|
46
|
|
|
|
44
|
|
General and
administrative expenses
|
|
|
92
|
|
|
|
102
|
|
|
|
95
|
|
|
|
194
|
|
|
|
185
|
|
Other operating costs,
net
|
|
|
6
|
|
|
|
12
|
|
|
|
13
|
|
|
|
18
|
|
|
|
23
|
|
Operating income
|
|
|
1,344
|
|
|
|
1,047
|
|
|
|
1,429
|
|
|
|
2,391
|
|
|
|
2,385
|
|
Non-operating pension
and other post-employment benefit costs
|
|
|
(15)
|
|
|
|
(11)
|
|
|
|
(1)
|
|
|
|
(26)
|
|
|
|
(9)
|
|
Interest income and
other
|
|
|
(1)
|
|
|
|
1
|
|
|
|
2
|
|
|
|
—
|
|
|
|
3
|
|
Interest expense, net
of capitalized interest
|
|
|
(72)
|
|
|
|
(65)
|
|
|
|
(78)
|
|
|
|
(137)
|
|
|
|
(157)
|
|
Loss on debt
extinguishment
|
|
|
(276)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(276)
|
|
|
|
—
|
|
Earnings before income
taxes
|
|
|
980
|
|
|
|
972
|
|
|
|
1,352
|
|
|
|
1,952
|
|
|
|
2,222
|
|
Income taxes
|
|
|
(209)
|
|
|
|
(184)
|
|
|
|
(324)
|
|
|
|
(393)
|
|
|
|
(513)
|
|
Net earnings
|
|
$
|
771
|
|
|
$
|
788
|
|
|
$
|
1,028
|
|
|
$
|
1,559
|
|
|
$
|
1,709
|
|
Per Share
Information
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Earnings per share,
basic and diluted
|
|
$
|
1.03
|
|
|
$
|
1.06
|
|
|
$
|
1.37
|
|
|
$
|
2.09
|
|
|
$
|
2.28
|
|
Dividends paid per
common share
|
|
$
|
1.63
|
|
|
$
|
0.18
|
|
|
$
|
0.17
|
|
|
$
|
1.81
|
|
|
$
|
0.34
|
|
Weighted average shares
outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
747,507
|
|
|
|
744,542
|
|
|
|
750,127
|
|
|
|
746,017
|
|
|
|
749,429
|
|
Diluted
|
|
|
748,823
|
|
|
|
745,582
|
|
|
|
751,508
|
|
|
|
747,194
|
|
|
|
750,773
|
|
Common shares
outstanding at end of period (in thousands)
|
|
|
745,442
|
|
|
|
741,738
|
|
|
|
749,782
|
|
|
|
741,738
|
|
|
|
749,782
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and Amortization
(Adjusted EBITDA)
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
in millions
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Net earnings
|
|
$
|
771
|
|
|
$
|
788
|
|
|
$
|
1,028
|
|
|
$
|
1,559
|
|
|
$
|
1,709
|
|
Non-operating pension
and other post-employment benefit costs
|
|
|
15
|
|
|
|
11
|
|
|
|
1
|
|
|
|
26
|
|
|
|
9
|
|
Interest income and
other
|
|
|
1
|
|
|
|
(1)
|
|
|
|
(2)
|
|
|
|
—
|
|
|
|
(3)
|
|
Interest expense, net
of capitalized interest
|
|
|
72
|
|
|
|
65
|
|
|
|
78
|
|
|
|
137
|
|
|
|
157
|
|
Loss on debt
extinguishment
|
|
|
276
|
|
|
|
—
|
|
|
|
—
|
|
|
|
276
|
|
|
|
—
|
|
Income taxes
|
|
|
209
|
|
|
|
184
|
|
|
|
324
|
|
|
|
393
|
|
|
|
513
|
|
Operating income
|
|
|
1,344
|
|
|
|
1,047
|
|
|
|
1,429
|
|
|
|
2,391
|
|
|
|
2,385
|
|
Depreciation, depletion
and amortization
|
|
|
122
|
|
|
|
119
|
|
|
|
120
|
|
|
|
241
|
|
|
|
238
|
|
Basis of real estate
sold
|
|
|
31
|
|
|
|
39
|
|
|
|
24
|
|
|
|
70
|
|
|
|
51
|
|
Adjusted EBITDA(1)
|
|
$
|
1,497
|
|
|
$
|
1,205
|
|
|
$
|
1,573
|
|
|
$
|
2,702
|
|
|
$
|
2,674
|
|
|
|
(1)
|
Adjusted EBITDA is a
non-GAAP measure that management uses to evaluate the performance
of the company. Adjusted EBITDA, as we define it, is operating
income adjusted for depreciation, depletion, amortization, basis of
real estate sold and special items. Our definition of Adjusted
EBITDA may be different from similarly titled measures reported by
other companies. Adjusted EBITDA should not be considered in
isolation from, and is not intended to represent an alternative to,
our GAAP results.
|
Weyerhaeuser
Company
|
Total Company
Statistics
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
|
Special Items
Included in Net Earnings (Income Tax Affected)
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
in millions
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Net earnings
|
|
$
|
771
|
|
|
$
|
788
|
|
|
$
|
1,028
|
|
|
$
|
1,559
|
|
|
$
|
1,709
|
|
Loss on debt
extinguishment(1)
|
|
|
207
|
|
|
|
—
|
|
|
|
—
|
|
|
|
207
|
|
|
|
—
|
|
Net earnings before special
items(2)
|
|
$
|
978
|
|
|
$
|
788
|
|
|
$
|
1,028
|
|
|
$
|
1,766
|
|
|
$
|
1,709
|
|
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Net earnings per diluted share
|
|
$
|
1.03
|
|
|
$
|
1.06
|
|
|
$
|
1.37
|
|
|
$
|
2.09
|
|
|
$
|
2.28
|
|
Loss on debt
extinguishment(1)
|
|
|
0.28
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.28
|
|
|
|
—
|
|
Net earnings per diluted share before special
items(2)
|
|
$
|
1.31
|
|
|
$
|
1.06
|
|
|
$
|
1.37
|
|
|
$
|
2.37
|
|
|
$
|
2.28
|
|
|
|
(1)
|
We recorded a total
pretax loss on debt extinguishment of $276 million ($207 million
after-tax) in first quarter 2022.
|
|
|
(2)
|
Net earnings before
special items is a non-GAAP measure that management believes
provides helpful context in understanding the company's earnings
performance. Net earnings before special items should not be
considered in isolation from, and is not intended to represent an
alternative to, our GAAP results.
|
|
|
|
|
Selected Total
Company Items
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
in millions
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Pension and
post-employment costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension and
post-employment service costs
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
10
|
|
|
$
|
18
|
|
|
$
|
21
|
|
Non-operating pension
and other post-employment benefit costs
|
|
|
15
|
|
|
|
11
|
|
|
|
1
|
|
|
|
26
|
|
|
|
9
|
|
Total company pension and post-employment
costs
|
|
$
|
25
|
|
|
$
|
19
|
|
|
$
|
11
|
|
|
$
|
44
|
|
|
$
|
30
|
|
Weyerhaeuser Company
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Consolidated Balance
Sheet
|
|
in millions
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,205
|
|
|
$
|
1,723
|
|
|
$
|
1,879
|
|
Receivables,
net
|
|
|
745
|
|
|
|
547
|
|
|
|
507
|
|
Receivables for
taxes
|
|
|
8
|
|
|
|
6
|
|
|
|
24
|
|
Inventories
|
|
|
611
|
|
|
|
571
|
|
|
|
520
|
|
Prepaid expenses and
other current assets
|
|
|
206
|
|
|
|
165
|
|
|
|
205
|
|
Total current
assets
|
|
|
2,775
|
|
|
|
3,012
|
|
|
|
3,135
|
|
Property and
equipment, net
|
|
|
2,026
|
|
|
|
2,000
|
|
|
|
2,057
|
|
Construction in
progress
|
|
|
203
|
|
|
|
233
|
|
|
|
175
|
|
Timber and timberlands
at cost, less depletion
|
|
|
11,469
|
|
|
|
11,706
|
|
|
|
11,510
|
|
Minerals and mineral
rights, less depletion
|
|
|
252
|
|
|
|
248
|
|
|
|
255
|
|
Deferred tax
assets
|
|
|
15
|
|
|
|
11
|
|
|
|
17
|
|
Other
assets
|
|
|
376
|
|
|
|
370
|
|
|
|
503
|
|
Total assets
|
|
$
|
17,116
|
|
|
$
|
17,580
|
|
|
$
|
17,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
310
|
|
|
$
|
283
|
|
|
$
|
281
|
|
Accrued
liabilities
|
|
|
674
|
|
|
|
658
|
|
|
|
673
|
|
Total current
liabilities
|
|
|
984
|
|
|
|
941
|
|
|
|
954
|
|
Long-term debt,
net
|
|
|
5,053
|
|
|
|
5,053
|
|
|
|
5,099
|
|
Deferred tax
liabilities
|
|
|
66
|
|
|
|
83
|
|
|
|
46
|
|
Deferred pension and
other post-employment benefits
|
|
|
432
|
|
|
|
347
|
|
|
|
440
|
|
Other
liabilities
|
|
|
344
|
|
|
|
340
|
|
|
|
346
|
|
Total liabilities
|
|
|
6,879
|
|
|
|
6,764
|
|
|
|
6,885
|
|
Total equity
|
|
|
10,237
|
|
|
|
10,816
|
|
|
|
10,767
|
|
Total liabilities and equity
|
|
$
|
17,116
|
|
|
$
|
17,580
|
|
|
$
|
17,652
|
|
Weyerhaeuser
Company
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Year-to-Date
|
|
in millions
|
|
March 31,
2022
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Cash flows from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
771
|
|
|
$
|
788
|
|
|
$
|
1,028
|
|
|
$
|
1,559
|
|
|
$
|
1,709
|
|
Noncash charges
(credits) to earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
122
|
|
|
|
119
|
|
|
|
120
|
|
|
|
241
|
|
|
|
238
|
|
Basis of real estate
sold
|
|
|
31
|
|
|
|
39
|
|
|
|
24
|
|
|
|
70
|
|
|
|
51
|
|
Deferred income taxes,
net
|
|
|
14
|
|
|
|
—
|
|
|
|
11
|
|
|
|
14
|
|
|
|
19
|
|
Pension and other
post-employment benefits
|
|
|
25
|
|
|
|
19
|
|
|
|
11
|
|
|
|
44
|
|
|
|
30
|
|
Share-based
compensation expense
|
|
|
8
|
|
|
|
9
|
|
|
|
8
|
|
|
|
17
|
|
|
|
15
|
|
Loss on debt
extinguishment
|
|
|
276
|
|
|
|
—
|
|
|
|
—
|
|
|
|
276
|
|
|
|
—
|
|
Change in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
|
|
(238)
|
|
|
|
198
|
|
|
|
(113)
|
|
|
|
(40)
|
|
|
|
(252)
|
|
Receivables and
payables for taxes
|
|
|
110
|
|
|
|
(83)
|
|
|
|
116
|
|
|
|
27
|
|
|
|
236
|
|
Inventories
|
|
|
(87)
|
|
|
|
29
|
|
|
|
9
|
|
|
|
(58)
|
|
|
|
(51)
|
|
Prepaid expenses and
other current assets
|
|
|
(1)
|
|
|
|
(2)
|
|
|
|
1
|
|
|
|
(3)
|
|
|
|
(1)
|
|
Accounts payable and
accrued liabilities
|
|
|
(62)
|
|
|
|
47
|
|
|
|
125
|
|
|
|
(15)
|
|
|
|
65
|
|
Pension and
post-employment benefit contributions and payments
|
|
|
(4)
|
|
|
|
(10)
|
|
|
|
(25)
|
|
|
|
(14)
|
|
|
|
(33)
|
|
Other
|
|
|
(8)
|
|
|
|
(7)
|
|
|
|
(7)
|
|
|
|
(15)
|
|
|
|
(20)
|
|
Net cash from operations
|
|
$
|
957
|
|
|
$
|
1,146
|
|
|
$
|
1,308
|
|
|
$
|
2,103
|
|
|
$
|
2,006
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
for property and equipment
|
|
$
|
(50)
|
|
|
$
|
(71)
|
|
|
$
|
(62)
|
|
|
$
|
(121)
|
|
|
$
|
(93)
|
|
Capital expenditures
for timberlands reforestation
|
|
|
(20)
|
|
|
|
(10)
|
|
|
|
(10)
|
|
|
|
(30)
|
|
|
|
(32)
|
|
Acquisition of
timberlands
|
|
|
(18)
|
|
|
|
(265)
|
|
|
|
(149)
|
|
|
|
(283)
|
|
|
|
(149)
|
|
Other
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
Net cash from investing
activities
|
|
$
|
(87)
|
|
|
$
|
(346)
|
|
|
$
|
(220)
|
|
|
$
|
(433)
|
|
|
$
|
(273)
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends on
common shares
|
|
$
|
(1,218)
|
|
|
$
|
(134)
|
|
|
$
|
(128)
|
|
|
$
|
(1,352)
|
|
|
$
|
(255)
|
|
Net proceeds from
issuance of long-term debt
|
|
|
881
|
|
|
|
—
|
|
|
|
—
|
|
|
|
881
|
|
|
|
—
|
|
Payments on long-term
debt
|
|
|
(1,203)
|
|
|
|
—
|
|
|
|
(225)
|
|
|
|
(1,203)
|
|
|
|
(225)
|
|
Proceeds from exercise
of stock options
|
|
|
12
|
|
|
|
2
|
|
|
|
28
|
|
|
|
14
|
|
|
|
45
|
|
Repurchases of common
shares
|
|
|
(118)
|
|
|
|
(141)
|
|
|
|
—
|
|
|
|
(259)
|
|
|
|
—
|
|
Other
|
|
|
(18)
|
|
|
|
(1)
|
|
|
|
(2)
|
|
|
|
(19)
|
|
|
|
(16)
|
|
Net cash from financing
activities
|
|
$
|
(1,664)
|
|
|
$
|
(274)
|
|
|
$
|
(327)
|
|
|
$
|
(1,938)
|
|
|
$
|
(451)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
$
|
(794)
|
|
|
$
|
526
|
|
|
$
|
761
|
|
|
$
|
(268)
|
|
|
$
|
1,282
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
1,999
|
|
|
|
1,205
|
|
|
|
1,016
|
|
|
|
1,999
|
|
|
|
495
|
|
Cash, cash equivalents and restricted cash at end of
period
|
|
$
|
1,205
|
|
|
$
|
1,731
|
|
|
$
|
1,777
|
|
|
$
|
1,731
|
|
|
$
|
1,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net of
amounts capitalized
|
|
$
|
78
|
|
|
$
|
71
|
|
|
$
|
79
|
|
|
$
|
149
|
|
|
$
|
154
|
|
Income taxes, net of
refunds
|
|
$
|
85
|
|
|
$
|
269
|
|
|
$
|
197
|
|
|
$
|
354
|
|
|
$
|
263
|
|
Weyerhaeuser Company
|
Timberlands
Segment
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Segment Statement of
Operations
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Sales to unaffiliated
customers
|
|
$
|
465
|
|
|
$
|
515
|
|
|
$
|
405
|
|
|
$
|
980
|
|
|
$
|
784
|
|
Intersegment
sales
|
|
|
161
|
|
|
|
156
|
|
|
|
136
|
|
|
|
317
|
|
|
|
270
|
|
Total net sales
|
|
|
626
|
|
|
|
671
|
|
|
|
541
|
|
|
|
1,297
|
|
|
|
1,054
|
|
Costs of
sales
|
|
|
423
|
|
|
|
495
|
|
|
|
407
|
|
|
|
918
|
|
|
|
790
|
|
Gross margin
|
|
|
203
|
|
|
|
176
|
|
|
|
134
|
|
|
|
379
|
|
|
|
264
|
|
General and
administrative expenses
|
|
|
24
|
|
|
|
24
|
|
|
|
23
|
|
|
|
48
|
|
|
|
46
|
|
Other operating income,
net
|
|
|
(3)
|
|
|
|
(1)
|
|
|
|
(2)
|
|
|
|
(4)
|
|
|
|
(3)
|
|
Operating income and Net contribution to
earnings
|
|
$
|
182
|
|
|
$
|
153
|
|
|
$
|
113
|
|
|
$
|
335
|
|
|
$
|
221
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization(1)
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Operating income
|
|
$
|
182
|
|
|
$
|
153
|
|
|
$
|
113
|
|
|
$
|
335
|
|
|
$
|
221
|
|
Depreciation, depletion
and amortization
|
|
|
65
|
|
|
|
66
|
|
|
|
67
|
|
|
|
131
|
|
|
|
131
|
|
Adjusted EBITDA(1)
|
|
$
|
247
|
|
|
$
|
219
|
|
|
$
|
180
|
|
|
$
|
466
|
|
|
$
|
352
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
Selected Segment
Items
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Total decrease
(increase) in working capital(2)
|
|
$
|
(34)
|
|
|
$
|
57
|
|
|
$
|
2
|
|
|
$
|
23
|
|
|
$
|
(11)
|
|
Cash spent for capital
expenditures(3)
|
|
$
|
(30)
|
|
|
$
|
(23)
|
|
|
$
|
(21)
|
|
|
$
|
(53)
|
|
|
$
|
(49)
|
|
|
|
(2)
|
Represents the change
in prepaid assets, accounts receivable, accounts payable, accrued
liabilities and log inventory for the Timberlands and Real Estate
& ENR segments combined.
|
(3)
|
Does not include cash
spent for the acquisition of timberlands.
|
Segment
Statistics(4)
|
|
|
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Third Party
|
|
Delivered
logs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
West
|
$
|
259
|
|
|
$
|
308
|
|
|
$
|
222
|
|
|
$
|
567
|
|
|
$
|
423
|
|
(millions)
|
|
South
|
|
154
|
|
|
|
160
|
|
|
|
145
|
|
|
|
314
|
|
|
|
276
|
|
|
|
North
|
|
15
|
|
|
|
10
|
|
|
|
9
|
|
|
|
25
|
|
|
|
25
|
|
|
|
Total delivered
logs
|
|
428
|
|
|
|
478
|
|
|
|
376
|
|
|
|
906
|
|
|
|
724
|
|
|
|
Stumpage and pay-as-cut
timber
|
|
9
|
|
|
|
11
|
|
|
|
7
|
|
|
|
20
|
|
|
|
13
|
|
|
|
Recreational and other
lease revenue
|
|
17
|
|
|
|
16
|
|
|
|
16
|
|
|
|
33
|
|
|
|
32
|
|
|
|
Other
revenue
|
|
11
|
|
|
|
10
|
|
|
|
6
|
|
|
|
21
|
|
|
|
15
|
|
|
|
Total
|
$
|
465
|
|
|
$
|
515
|
|
|
$
|
405
|
|
|
$
|
980
|
|
|
$
|
784
|
|
Delivered
Logs
|
|
West
|
$
|
161.29
|
|
|
$
|
173.35
|
|
|
$
|
137.80
|
|
|
$
|
167.63
|
|
|
$
|
134.32
|
|
Third Party
Sales
|
|
South
|
$
|
37.15
|
|
|
$
|
38.47
|
|
|
$
|
35.11
|
|
|
$
|
37.81
|
|
|
$
|
34.82
|
|
Realizations (per
ton)
|
|
North
|
$
|
72.79
|
|
|
$
|
83.93
|
|
|
$
|
74.88
|
|
|
$
|
76.79
|
|
|
$
|
66.51
|
|
Delivered
Logs
|
|
West
|
|
1,604
|
|
|
|
1,778
|
|
|
|
1,608
|
|
|
|
3,382
|
|
|
|
3,147
|
|
Third Party
Sales
|
|
South
|
|
4,135
|
|
|
|
4,167
|
|
|
|
4,150
|
|
|
|
8,302
|
|
|
|
7,932
|
|
Volumes (tons,
thousands)
|
|
North
|
|
210
|
|
|
|
118
|
|
|
|
115
|
|
|
|
328
|
|
|
|
376
|
|
Fee Harvest
Volumes
|
|
West
|
|
2,240
|
|
|
|
2,085
|
|
|
|
2,099
|
|
|
|
4,325
|
|
|
|
4,200
|
|
(tons,
thousands)
|
|
South
|
|
5,842
|
|
|
|
6,159
|
|
|
|
5,856
|
|
|
|
12,001
|
|
|
|
11,232
|
|
|
|
North
|
|
278
|
|
|
|
180
|
|
|
|
199
|
|
|
|
458
|
|
|
|
536
|
|
|
|
(4)
|
Western logs are
primarily transacted in MBF but are converted to ton equivalents
for external reporting purposes.
|
Weyerhaeuser Company
|
Real Estate, Energy
& Natural Resources Segment
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Segment Statement of
Operations
|
|
in millions
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Net sales
|
$
|
128
|
|
|
$
|
117
|
|
|
$
|
110
|
|
|
$
|
245
|
|
|
$
|
216
|
|
Costs of
sales
|
|
41
|
|
|
|
45
|
|
|
|
41
|
|
|
|
86
|
|
|
|
75
|
|
Gross margin
|
|
87
|
|
|
|
72
|
|
|
|
69
|
|
|
|
159
|
|
|
|
141
|
|
General and
administrative expenses
|
|
6
|
|
|
|
7
|
|
|
|
6
|
|
|
|
13
|
|
|
|
12
|
|
Operating income and Net contribution to
earnings
|
$
|
81
|
|
|
$
|
65
|
|
|
$
|
63
|
|
|
$
|
146
|
|
|
$
|
129
|
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization(1)
|
|
in millions
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Operating income
|
$
|
81
|
|
|
$
|
65
|
|
|
$
|
63
|
|
|
$
|
146
|
|
|
$
|
129
|
|
Depreciation, depletion
and amortization
|
|
4
|
|
|
|
3
|
|
|
|
4
|
|
|
|
7
|
|
|
|
7
|
|
Basis of real estate
sold
|
|
31
|
|
|
|
39
|
|
|
|
24
|
|
|
|
70
|
|
|
|
51
|
|
Adjusted EBITDA(1)
|
$
|
116
|
|
|
$
|
107
|
|
|
$
|
91
|
|
|
$
|
223
|
|
|
$
|
187
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
Selected Segment
Items
|
|
in millions
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Cash spent for capital
expenditures
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Statistics
|
|
|
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Net Sales
|
Real Estate
|
|
$
|
97
|
|
|
$
|
90
|
|
|
$
|
83
|
|
|
$
|
187
|
|
|
$
|
167
|
|
(millions)
|
Energy and Natural
Resources
|
|
|
31
|
|
|
|
27
|
|
|
|
27
|
|
|
|
58
|
|
|
|
49
|
|
|
Total
|
|
$
|
128
|
|
|
$
|
117
|
|
|
$
|
110
|
|
|
$
|
245
|
|
|
$
|
216
|
|
Acres Sold
|
Real Estate
|
|
|
24,126
|
|
|
|
26,906
|
|
|
|
18,415
|
|
|
|
51,032
|
|
|
|
37,870
|
|
Price per
Acre
|
Real Estate
|
|
$
|
3,785
|
|
|
$
|
3,215
|
|
|
$
|
3,227
|
|
|
$
|
3,484
|
|
|
$
|
3,523
|
|
Basis as a Percent
of
Real Estate Net
Sales
|
Real Estate
|
|
|
32
|
%
|
|
|
43
|
%
|
|
|
29
|
%
|
|
|
37
|
%
|
|
|
31
|
%
|
Weyerhaeuser Company
|
Wood Products
Segment
|
Q2.2022 Analyst
Package
|
Preliminary results
(unaudited)
|
|
Segment Statement of
Operations
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
Net sales
|
|
$
|
2,519
|
|
|
$
|
2,341
|
|
|
$
|
2,629
|
|
|
$
|
4,860
|
|
|
$
|
4,650
|
Costs of
sales
|
|
|
1,276
|
|
|
|
1,414
|
|
|
|
1,229
|
|
|
|
2,690
|
|
|
|
2,353
|
Gross margin
|
|
|
1,243
|
|
|
|
927
|
|
|
|
1,400
|
|
|
|
2,170
|
|
|
|
2,297
|
Selling
expenses
|
|
|
21
|
|
|
|
21
|
|
|
|
21
|
|
|
|
42
|
|
|
|
40
|
General and
administrative expenses
|
|
|
35
|
|
|
|
35
|
|
|
|
35
|
|
|
|
70
|
|
|
|
70
|
Other operating costs,
net
|
|
|
5
|
|
|
|
8
|
|
|
|
6
|
|
|
|
13
|
|
|
|
9
|
Operating income and Net contribution to
earnings
|
|
$
|
1,182
|
|
|
$
|
863
|
|
|
$
|
1,338
|
|
|
$
|
2,045
|
|
|
$
|
2,178
|
|
|
Adjusted Earnings
before Interest, Tax, Depreciation, Depletion and
Amortization(1)
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
Operating income
|
|
$
|
1,182
|
|
|
$
|
863
|
|
|
$
|
1,338
|
|
|
$
|
2,045
|
|
|
$
|
2,178
|
Depreciation, depletion
and amortization
|
|
|
51
|
|
|
|
49
|
|
|
|
48
|
|
|
|
100
|
|
|
|
97
|
Adjusted EBITDA(1)
|
|
$
|
1,233
|
|
|
$
|
912
|
|
|
$
|
1,386
|
|
|
$
|
2,145
|
|
|
$
|
2,275
|
|
|
(1)
|
See definition of
Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
Selected Segment
Items
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Total decrease
(increase) in working capital(2)
|
|
$
|
(371)
|
|
|
$
|
205
|
|
|
$
|
(49)
|
|
|
$
|
(166)
|
|
|
$
|
(261)
|
|
Cash spent for capital
expenditures
|
|
$
|
(39)
|
|
|
$
|
(56)
|
|
|
$
|
(51)
|
|
|
$
|
(95)
|
|
|
$
|
(76)
|
|
|
|
(2)
|
Represents the change
in prepaid assets, accounts receivable, accounts payable, accrued
liabilities and inventory for the Wood Products segment.
|
|
|
Segment
Statistics
|
|
in millions, except for
third party sales realizations
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Structural Lumber
|
Third party net
sales
|
|
$
|
1,206
|
|
|
$
|
998
|
|
|
$
|
1,349
|
|
|
$
|
2,204
|
|
|
$
|
2,339
|
|
(volumes
presented
|
Third party sales
realizations
|
|
$
|
1,041
|
|
|
$
|
776
|
|
|
$
|
1,077
|
|
|
$
|
901
|
|
|
$
|
975
|
|
in board
feet)
|
Third party sales
volumes(3)
|
|
|
1,157
|
|
|
|
1,289
|
|
|
|
1,252
|
|
|
|
2,446
|
|
|
|
2,397
|
|
|
Production
volumes
|
|
|
1,203
|
|
|
|
1,232
|
|
|
|
1,234
|
|
|
|
2,435
|
|
|
|
2,445
|
|
Oriented
Strand
|
Third party net
sales
|
|
$
|
564
|
|
|
$
|
497
|
|
|
$
|
605
|
|
|
$
|
1,061
|
|
|
$
|
1,043
|
|
Board
|
Third party sales
realizations
|
|
$
|
787
|
|
|
$
|
676
|
|
|
$
|
911
|
|
|
$
|
731
|
|
|
$
|
757
|
|
(volumes
presented
|
Third party sales
volumes(3)
|
|
|
717
|
|
|
|
735
|
|
|
|
663
|
|
|
|
1,452
|
|
|
|
1,377
|
|
in square feet
3/8")
|
Production
volumes
|
|
|
739
|
|
|
|
758
|
|
|
|
683
|
|
|
|
1,497
|
|
|
|
1,425
|
|
Engineered
Solid
|
Third party net
sales
|
|
$
|
196
|
|
|
$
|
247
|
|
|
$
|
166
|
|
|
$
|
443
|
|
|
$
|
308
|
|
Section
|
Third party sales
realizations
|
|
$
|
3,433
|
|
|
$
|
3,863
|
|
|
$
|
2,533
|
|
|
$
|
3,660
|
|
|
$
|
2,412
|
|
(volumes
presented
|
Third party sales
volumes(3)
|
|
|
5.7
|
|
|
|
6.4
|
|
|
|
6.6
|
|
|
|
12.1
|
|
|
|
12.8
|
|
in cubic
feet)
|
Production
volumes
|
|
|
5.7
|
|
|
|
6.4
|
|
|
|
6.2
|
|
|
|
12.1
|
|
|
|
12.2
|
|
Engineered
|
Third party net
sales
|
|
$
|
137
|
|
|
$
|
168
|
|
|
$
|
104
|
|
|
$
|
305
|
|
|
$
|
187
|
|
I-joists
|
Third party sales
realizations
|
|
$
|
2,969
|
|
|
$
|
3,432
|
|
|
$
|
1,980
|
|
|
$
|
3,207
|
|
|
$
|
1,882
|
|
(volumes
presented
|
Third party sales
volumes(3)
|
|
|
46
|
|
|
|
49
|
|
|
|
53
|
|
|
|
95
|
|
|
|
100
|
|
in lineal
feet)
|
Production
volumes
|
|
|
44
|
|
|
|
50
|
|
|
|
51
|
|
|
|
94
|
|
|
|
95
|
|
Softwood Plywood
|
Third party net
sales
|
|
$
|
58
|
|
|
$
|
53
|
|
|
$
|
69
|
|
|
$
|
111
|
|
|
$
|
125
|
|
(volumes
presented
|
Third party sales
realizations
|
|
$
|
783
|
|
|
$
|
746
|
|
|
$
|
902
|
|
|
$
|
765
|
|
|
$
|
733
|
|
in square feet
3/8")
|
Third party sales
volumes(3)
|
|
|
75
|
|
|
|
70
|
|
|
|
77
|
|
|
|
145
|
|
|
|
171
|
|
|
Production
volumes
|
|
|
66
|
|
|
|
67
|
|
|
|
62
|
|
|
|
133
|
|
|
|
142
|
|
Medium
Density
|
Third party net
sales
|
|
$
|
48
|
|
|
$
|
53
|
|
|
$
|
43
|
|
|
$
|
101
|
|
|
$
|
91
|
|
Fiberboard
|
Third party sales
realizations
|
|
$
|
1,082
|
|
|
$
|
1,174
|
|
|
$
|
869
|
|
|
$
|
1,129
|
|
|
$
|
855
|
|
(volumes
presented
|
Third party sales
volumes(3)
|
|
|
44
|
|
|
|
45
|
|
|
|
50
|
|
|
|
89
|
|
|
|
107
|
|
in square feet
3/4")
|
Production
volumes
|
|
|
44
|
|
|
|
48
|
|
|
|
52
|
|
|
|
92
|
|
|
|
108
|
|
|
|
(3)
|
Volumes include sales
of internally produced products and products purchased for resale
primarily through our distribution business.
|
Weyerhaeuser
Company
|
Unallocated
Items
|
Q2.2022 Analyst
Package
|
|
Preliminary results
(unaudited)
|
|
Unallocated items are
gains or charges not related to, or allocated to, an individual
operating segment. They include all or a portion of items such
as
share-based compensation, pension and post-employment costs,
elimination of intersegment profit in inventory and LIFO, foreign
exchange
transaction gains and losses, interest income and other as well as
legacy obligations.
|
|
Net Charge to Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Unallocated corporate
function and variable compensation expense
|
|
$
|
(31)
|
|
|
$
|
(36)
|
|
|
$
|
(36)
|
|
|
$
|
(67)
|
|
|
$
|
(61)
|
|
Liability classified
share-based compensation
|
|
|
1
|
|
|
|
2
|
|
|
|
—
|
|
|
|
3
|
|
|
|
(1)
|
|
Foreign exchange gain
(loss)
|
|
|
—
|
|
|
|
3
|
|
|
|
(1)
|
|
|
|
3
|
|
|
|
(3)
|
|
Elimination of
intersegment profit in inventory and LIFO
|
|
|
(59)
|
|
|
|
18
|
|
|
|
(28)
|
|
|
|
(41)
|
|
|
|
(45)
|
|
Other, net
|
|
|
(12)
|
|
|
|
(21)
|
|
|
|
(20)
|
|
|
|
(33)
|
|
|
|
(33)
|
|
Operating loss
|
|
|
(101)
|
|
|
|
(34)
|
|
|
|
(85)
|
|
|
|
(135)
|
|
|
|
(143)
|
|
Non-operating pension
and other post-employment benefit costs
|
|
|
(15)
|
|
|
|
(11)
|
|
|
|
(1)
|
|
|
|
(26)
|
|
|
|
(9)
|
|
Interest income and
other
|
|
|
(1)
|
|
|
|
1
|
|
|
|
2
|
|
|
|
—
|
|
|
|
3
|
|
Net charge to earnings
|
|
$
|
(117)
|
|
|
$
|
(44)
|
|
|
$
|
(84)
|
|
|
$
|
(161)
|
|
|
$
|
(149)
|
|
|
|
Adjusted Earnings before Interest, Tax, Depreciation,
Depletion and Amortization(1)
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Operating loss
|
|
$
|
(101)
|
|
|
$
|
(34)
|
|
|
$
|
(85)
|
|
|
$
|
(135)
|
|
|
$
|
(143)
|
|
Depreciation, depletion
and amortization
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
|
3
|
|
|
|
3
|
|
Adjusted EBITDA(1)
|
|
$
|
(99)
|
|
|
$
|
(33)
|
|
|
$
|
(84)
|
|
|
$
|
(132)
|
|
|
$
|
(140)
|
|
|
|
(1)
|
See definition
of Adjusted EBITDA (a non-GAAP measure) on page 1.
|
|
|
Unallocated Selected
Items
|
|
in millions
|
|
Q1.2022
|
|
|
Q2.2022
|
|
|
Q2.2021
|
|
|
YTD.2022
|
|
|
YTD.2021
|
|
Cash spent for capital
expenditures
|
|
$
|
(1)
|
|
|
$
|
(2)
|
|
|
$
|
—
|
|
|
$
|
(3)
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Weyerhaeuser Company