Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q3 2007 Earnings Presentation
19 slides from Weyerhaeuser's earnings presentation, Oct 31, 2007
Slide 1: Earnings Release 3rd Quarter 2007
Earnings Release 3rd Quarter — 2007 Weyerhaeuser Company October 31, 2007 DTP/3065 2007 Q3.ppt • 11/02/2007• 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 Q3 Consolidated Results
Chart 1 2007 Q3 Consolidated Results 2007 Q3 $ Millions except EPS 2007 2007 Revenues ($ Millions) $4,146 Contribution to Pre-Tax Earnings before Special Items Q2 Q3 Timberlands $142 $167 Net Earnings before Special Items $118 Wood Products (73) (109) ($ Millions) 2. Cellulose Fibers 48 81 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 $1.00 $0.92 $0.75 $0.64 $0.55 $0.48 $0.50 $0.20 $0.25 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 DTP/3065 2007 Q3.ppt • 11/02/2007• 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2007 2007 Q2 Q3 Q2 Q3 Diluted EPS / Net Earnings before Special Items $0.48 $0.55 $104 $118 Gain (Loss) on Domtar Transaction (0.02) 0.00 (5) 0 Net Gain on Sale of Assets and Operations 0.06 0.03 15 7 Charges for Closures,
Slide 7: Changes in Earnings per Share by Segment
Chart 4 Changes in Earnings per Share by Segment $ per Share Before Special Items1. $0.80 $0.70 0.03 0.05 0.11 $0.60 0.15 0.55 0.48 $0.50 (0.11) $0.40 (0.16) $0.30 $0.20 $0.10 $0.00 2007 Q2 Timberlands Wood Cellulose Container- Real Estate & Corp. & Other 2007 Q3 Before Special Products Fibers board
Slide 8: Segment Highlights — Timberlands
Chart 5 Segment Highlights — Timberlands 3rd Quarter Highlights Timberlands ($ Millions) 2007 Q3 2007 Q2 z Continued weakness in the wood Revenues $249 $211 products markets resulted in lower log price realizations in the West Contribution to Pre-Tax Earnings $165 $142 z 3rd Party sales volumes incr
Slide 9: Segment Highlights — Wood Products
Chart 6 Segment Highlights — Wood Products 3rd Quarter Highlights Wood Products ($ Millions) 2007 Q3 2007 Q2 z Demand for wood products Revenues $1,449 $1,662 continued to weaken Contribution to Pre-Tax Earnings ($131) ($123) 3rd-Party OSB and Lumber Sales Volumes 3rd-Party Engineered Wood Products
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 ($/CCF) 400 2148 371 359 2200 2090 2080 335 346 351 2008 350 1947 2000 300 287 1800 250 255 1600 TJI’s ($/ML
Slide 11: Segment Highlights — Cellulose Fibers
Chart 8 Segment Highlights — Cellulose Fibers 3rd Quarter Highlights Cellulose Fibers ($ Millions) 2007 Q3 2007 Q2 z Prices continued to increase and Revenues $436 $470 productivity improved z Pulp volume declines driven by Contribution to Pre-Tax Earnings $79 $48 transition of mills to Domtar 3rd-P
Slide 12: Segment Highlights — Containerboard, Packaging & Recycling
Chart 9 Segment Highlights — Containerboard, Packaging & Recycling 3rd Quarter Highlights Containerboard, Packaging & 2007 Q3 2007 Q2 z Mill productivity improved and Recycling ($ Millions) maintenance downtime decreased Revenues $1,293 $1,327 z Average packaging price realizations decreased due to
Slide 13: Average 3rd-Party Realizations — Containerboard and Packaging
Chart 10 Average 3rd-Party Realizations — Containerboard and Packaging Containerboard Packaging (Box) $/Ton $/MSF 500 57 56 475 480 473 55 469 461 55.02 450 54 54.13 455 54.14 53.88 443 53 53.52 425 52 52.28 51 400 50 389 49.65 375 49 48 350 47 325 46 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2
Slide 14: Segment Highlights — Real Estate and Related Assets
Chart 11 Segment Highlights — Real Estate and Related Assets Real Estate & Related Assets 3rd Quarter Highlights 2007 Q3 2007 Q2 ($ Millions) z Housing markets continued to decline Revenues $598 $559 z Single-family closings improved and margins increased due to mix Contribution to Pre-Tax Earnings
Slide 15: Key Changes in Earnings per Share
Chart 12 Key Changes in Earnings per Share $ per Share Before Special Items1 $0.70 $0.60 0.09 0.55 $0.50 0.48 0.19 0.03 $0.40 $0.30 (0.12) $0.20 (0.12) $0.10 $0.00 2007 Q2 Volume Price/Mix Mfg. Cost Real Estate & Other 2007 Q3 Before Special Related Before Special Items Items 1. A reconciliation bef
Slide 16: 2007 4Q Outlook
Chart 13 2007 4Q Outlook Segment Comments z The company expects earnings from this segment to be lower in 2007 Q4 vs. 2007 Q3 z Continued weakness in the housing markets will result in lower prices in both the export and Timberlands domestic markets, and lower log sales volumes in the West z Non-str
Slide 17: Appendix
Appendix DTP/3065 2007 Q3.ppt • 11/02/2007• 17
Slide 18: 2007 Q3 Earnings Summary
Chart 14 2007 Q3 Earnings Summary $ Millions except EPS 2006 2007 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Q3 Timberlands $198 $224 $178 $168 $175 $142 $167 Wood Products 117 132 (46) (186) (108) (73) (109) Cellulose Fibers (5) 23 66 56 22 48 81 Fine Paper (10) (9) 72 61 22 0
Slide 19: Earnings per Share Reconciliation
Chart 15 Earnings per Share Reconciliation 2006 2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Diluted EPS before Special Items $0.64 $1.09 $0.95 $0.92 $0.20 $0.48 $0.55 Gain (Loss) on Domtar Transaction 3.24 (0.02) Net Gain on Sale of Assets and Operations 0.13 0.18 0.06 0.03 Charges for Closure, Impairments and (3.02)