Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q2 2008 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, Aug 5, 2008
Slide 1: Earnings Release 2nd Quarter 2008
Earnings Release 2nd Quarter — 2008 Weyerhaeuser Company August 5, 2008 3065 2008 Q2.ppt • 08/04/2008• 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: 2008 Q2 Consolidated Results
Chart 1 2008 Q2 Consolidated Results 2008 Q2 $ Millions except EPS 2008 2008 Revenues ($ Millions) $3,610 Contribution to Pre-Tax Earnings before Q1 Q2 Special Items Timberlands $116 $109 Net Earnings before Special Items ($ Millions) 1. $7 Wood Products (203) (131) Cellulose Fibers 56 43 Diluted Ea
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 $0.80 $0.60 $0.55 $0.48 $0.42 $0.40 $0.20 $0.20 $0.03 $0.00 -$0.20 -$0.24 -$0.40 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 3065 2008 Q2.ppt • 08/04/2008• 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2008 2008 2008 2008 Q1 Q2 Q1 Q2 Diluted EPS / Net Earnings before Special Items ($0.24) $0.03 ($51) $7 Closures and Impairment of Weyerhaeuser Assets (0.19) (0.09) (40) (20) Impairments and Reserves for Real Estate Assets
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 $0.50 $0.40 $0.30 $0.20 $0.10 0.10 0.03 0.21 0.03 $0.00 -$0.10 (0.04) (0.01) -$0.20 -$0.30 (0.24) (0.02) -$0.40 2008 Q1 Timberlands Wood Cellulose Container- Real Estate Corp & Other 2008 Q2 Before Special Prod
Slide 8: Segment Highlights — Timberlands
Chart 5 Segment Highlights — Timberlands 2nd Quarter Highlights Timberlands ($ Millions) 2008 Q1 2008 Q2 z Higher fee volume in the West, largely due to storm salvage efforts Revenues $194 $214 z Higher fuel costs z Seasonally higher silviculture costs Contribution to Pre-Tax Earnings $116 $108 z Hi
Slide 9: Segment Highlights — Wood Products
Chart 6 Segment Highlights — Wood Products 2nd Quarter Highlights z Higher price realizations for lumber and OSB Wood Products ($ Millions) 2008 Q1 2008 Q2 z Included charges of $30 million for facility Revenues $966 $1,071 closures and asset impairments Contribution to Pre-Tax Earnings ($277) ($164
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 $/Unit 500 2400 450 2200 2080 2008 Solid Section ($/CCF) 400 Lumber ($/MBF) 1947 1939 359 2000 1868 346 351 1813 350 322 310 1800 300 287 1600 250 TJI’s ($/MLF) OSB ($/M 3/8”) 1400
Slide 11: Segment Highlights — Cellulose Fibers
Chart 8 Segment Highlights — Cellulose Fibers 2nd Quarter Highlights z Average price realizations for both pulp and Cellulose Fibers ($ Millions) 2008 Q1 2008 Q2 liquid packaging board increased Revenues $445 $460 z Higher expenses associated with scheduled annual maintenance Contribution to Pre-Tax
Slide 12: Segment Highlights — Containerboard, Packaging & Recycling
Chart 9 Segment Highlights — Containerboard, Packaging & Recycling 2nd Quarter Highlights z Higher expenses for scheduled annual Containerboard, Packaging & maintenance activities 2008 Q1 2008 Q2 Recycling ($ Millions) z Flooding in Iowa resulted in downtime at 2 Revenues $1,297 $1,375 facilities an
Slide 13: Average 3rd-Party Realizations — Containerboard and Packaging
Chart 10 Average 3rd-Party Realizations — Containerboard and Packaging Containerboard Packaging (Box) $/Ton $/MSF 550 60 59 525 58 58.57 500 503 57 494 494 56 56.25 475 480 55 55.81 473 55.02 54 450 461 54.13 53 53.52 425 52 51 400 50 375 49 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2007 2008 30
Slide 14: Segment Highlights — Real Estate
Chart 11 Segment Highlights — Real Estate 2nd Quarter Highlights z Earnings from single-family homebuilding declined Real Estate ($ Millions) 2008 Q1 2008 Q2 due to significantly lower margins z Closings on single family home sales increased 3% Revenues $371 $354 z Fewer land and lot sales Contribut
Slide 15: 2008 3Q Outlook
Chart 12 2008 3Q Outlook Segment Comments z Weyerhaeuser expects 2008 Q3 earnings from this segment to be slightly higher than 2008 Q2 Timberlands z The segment expects lower domestic log prices, a seasonal decline in fee harvest volumes, and higher operating costs, offset by an anticipated increase
Slide 16: Appendix
Appendix 3065 2008 Q2.ppt • 08/04/2008• 16
Slide 17: 2008 Q2 Earnings Summary
Chart 13 2008 Q2 Earnings Summary $ Millions except EPS 2007 2008 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Revised 4. Timberlands $175 $142 $167 $133 $116 $109 Wood Products (108) (73) (109) (210) (203) (131) Cellulose Fibers 22 48 81 80 56 43 Fine Paper 22 0 0 0 0 0 Container
Slide 18: Earnings per Share Reconciliation
Chart 14 Earnings per Share Reconciliation 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Revised 1. Diluted EPS before Special Items $0.20 $0.48 $0.55 $0.42 ($0.24) $0.03 Closures, Restructuring and Impairment of Weyerhaeuser Assets (0.20) (0.09) (0.16) (0.37) (0.19) (0.20) Impairments and Reserves for Real Estate As