Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q4 2007 Earnings Presentation
19 slides from Weyerhaeuser's earnings presentation, Feb 8, 2008
Slide 1: Earnings Release 4th Quarter 2007
Earnings Release 4th Quarter — 2007 Weyerhaeuser Company February 8, 2008 3065 2007 Q4.ppt • 2/08/2008• 1
Slide 2: Forward-looking Statement
Forward-looking Statement This presentation 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. Some of these forward-looking statements can be identified by the us
Slide 3: Statements Relating to Non-GAAP Financial Measures
Statements Relating to Non-GAAP Financial Measures z During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is included in this presentation which is available on the company’s website a
Slide 4: 2007 Q4 Consolidated Results
Chart 1 2007 Q4 Consolidated Results 2007 Q4 $ Millions except EPS 2007 2007 Revenues ($ Millions) $3,937 Contribution to Pre-Tax Earnings before Special Items Q3 Q4 Timberlands $167 $133 Net Earnings before Special $90 Wood Products (109) (210) Items ($ Millions) 1. Cellulose Fibers 81 80 Diluted E
Slide 5: Diluted EPS Before Special Items
Chart 2 Diluted EPS Before Special Items A reconciliation to GAAP EPS is available on Chart 3 and at www.weyerhaeuser.com $2.00 $1.75 $1.50 $1.25 $1.09 $0.95 $0.95 $1.00 $0.75 $0.64 $0.55 $0.48 $0.50 $0.42 $0.20 $0.25 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 3065 2007 Q4.ppt • 2/08/2008• 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2007 2007 Q3 Q4 Q3 Q4 Diluted EPS / Net Earnings before Special Items $0.55 $0.42 $118 $90 Charges for Closures, Impairments and Restructuring (0.23) (0.78) (50) (164) Tax True-Up for Domtar Transaction 0.00 (0.10) 0 (22)
Slide 7: Changes in Earnings per Share by Segment
Chart 4 Changes in Earnings per Share by Segment $ per Share Before Special Items1. $0.60 0.55 $0.50 0.10 0.42 $0.40 (0.11) 0.18 $0.30 $0.20 0.01 $0.10 (0.31) (0.00) $0.00 2007 Q3 Timberlands Wood Cellulose Container- Real Estate Corp & Other 2007 Q4 Before Special Products Fibers board Before Speci
Slide 8: Segment Highlights — Timberlands
Chart 5 Segment Highlights — Timberlands 4th Quarter Highlights Timberlands ($ Millions) 2007 Q3 2007 Q4 z Prices in the West declined significantly in both export and domestic markets Revenues $249 $217 z Fewer sales of non-strategic timberlands contributed to lower earnings Contribution to Pre-Tax
Slide 9: Segment Highlights — Wood Products
Chart 6 Segment Highlights — Wood Products 4th Quarter Highlights Wood Products ($ Millions) 2007 Q3 2007 Q4 z Declining housing starts continued to negatively affect segment results Revenues $1,449 $1,118 z Average prices and sales volumes for building products declined Contribution to Pre-Tax Earn
Slide 10: Average 3rd-Party Realizations — OSB and Lumber / Engineered Lumber
Chart 7 Average 3rd-Party Realizations — OSB and Lumber / Engineered Lumber OSB and Lumber Engineered Lumber $/Thousand $/Unit 500 2600 450 Lumber ($/MBF) 2400 407 406 2235 2228 Solid Section ($/CCF) 400 2148 371 359 2200 2090 2080 346 351 350 335 2008 310 1947 1939 2000 300 287 1800 250 255 200 181
Slide 11: Segment Highlights — Cellulose Fibers
Chart 8 Segment Highlights — Cellulose Fibers 4th Quarter Highlights Cellulose Fibers ($ Millions) 2007 Q3 2007 Q4 z Average pulp price realizations increased Revenues $436 $444 z Annual maintenance outage costs declined z Chemical and energy costs increased Contribution to Pre-Tax Earnings $79 $80
Slide 12: Segment Highlights — Containerboard, Packaging & Recycling
Chart 9 Segment Highlights — Containerboard, Packaging & Recycling 4th Quarter Highlights Containerboard, Packaging & Packaging and containerboard price 2007 Q3 2007 Q4 z Recycling ($ Millions) realizations increased Revenues $1,293 $1,322 z Energy costs increased due to seasonally higher consumptio
Slide 13: Average 3rd-Party Realizations — Containerboard and Packaging
Chart 10 Average 3rd-Party Realizations — Containerboard and Packaging Containerboard Packaging (Box) $/Ton $/MSF 525 57 56 500 55.81 55 494 55.02 475 480 54 54.13 473 54.14 53.88 469 461 53 53.52 450 455 52 52.28 443 51 425 50 400 49.65 49 389 48 375 47 350 46 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 14: Segment Highlights — Real Estate
Chart 11 Segment Highlights — Real Estate Real Estate ($ Millions) 2007 Q3 2007 Q4 4th Quarter Highlights z Gains from land sales increased $49 million Revenues $598 $715 z Asset impairment charges totaled $121 million for 2007 Q4, $98 million higher than Contribution to Pre-Tax Earnings $60 $22 200
Slide 15: Key Changes in Earnings per Share
Chart 12 Key Changes in Earnings per Share $ per Share Before Special Items1 $0.60 0.55 $0.50 0.04 0.42 $0.40 0.18 (0.17) $0.30 (0.10) $0.20 (0.08) $0.10 $0.00 2007 Q3 Volume Price/Mix Mfg. Cost Real Estate Other 2007 Q4 Before Special Before Special Items Items 1. A reconciliation before Special It
Slide 16: 2008 1Q Outlook
Chart 13 2008 1Q Outlook Segment Comments z The company expects earnings from this segment to be lower in 2008 Q1 vs. 2007 Q4 z Continued weakness in the housing market and the effect of the December storm are expected to Timberlands negatively affect Western operations z Non-strategic timberland sa
Slide 17: Appendix
Appendix 3065 2007 Q4.ppt • 2/08/2008• 17
Slide 18: 2007 Q4 Earnings Summary
Chart 14 2007 Q4 Earnings Summary $ Millions except EPS 2006 2007 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revised 4. Timberlands $198 $224 $178 $168 $175 $142 $167 $133 Wood Products 117 132 (46) (186) (108) (73) (109) (210) Cellulose Fibers (5) 23 66 56 22 48 81 80 Fin
Slide 19: Earnings per Share Reconciliation
Chart 15 Earnings per Share Reconciliation 2006 2007 Q1 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Revised 1. Diluted EPS before Special Items $0.64 $1.09 $0.95 $0.95 $0.20 $0.48 $0.55 $0.42 Gain (Loss) on Domtar Transaction 3.07 (0.02) (0.10) Net Gain on Sale of Assets and Operations 0.13 0.18 0.06 0.03 0.12 Charges for