Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q3 2006 Earnings Presentation
12 slides from Weyerhaeuser's earnings presentation, Oct 25, 2006
Slide 1: Earnings Release 3rd Quarter 2006
Earnings Release 3 Quarter — 2006 rd Weyerhaeuser Company October 25, 2006 DTP/3065 2006 Q3.ppt • 10/25/06 • 1
Slide 2: Forward-looking Statement
Forward-looking Statement z 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. Some of these forward-looking statements can be identified by the
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: 2006 Q3 Earnings Summary
Chart 1 2006 Q3 Earnings Summary $ in Millions except EPS 2005 2006 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Operating Earnings before Special Items Timberlands $ 203 $ 210 $ 191 $ 186 $ 198 $ 224 $ 178 Wood Products 132 222 130 117 117 132 (46) Cellulose Fiber and White Papers 19 16 20 (50) (17) 34 119 Containerboard,
Slide 5: Diluted EPS Before Special Items
Chart 2 Diluted EPS Before Special Items A reconciliation to GAAP EPS is available at www.weyerhaeuser.com $2.00 $1.75 $1.50 $1.34 $1.25 $1.16 $1.03 $0.93 $0.94 $1.00 $0.89 $0.75 $0.62 $0.50 $0.25 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 DTP/3065 2006 Q3.ppt • 10/25/06 • 5 New York City
Slide 6: Earnings per Share Reconciliation
Chart 3 Earnings per Share Reconciliation 2005 2006 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Diluted EPS before Special Items $ 1.03 $ 1.34 $ 0.93 $ 0.94 $ 0.62 $ 1.16 $0.89 Charges for Closure of Facilities (0.02) (0.08) (1.78) (0.04) (0.12) Gain on Sale of Assets 0.60 0.31 0.13 0.13 Litigation Charges / Reserve Adjus
Slide 7: Changes in Earnings per Share by Segment, 2006 Q2 vs. Q3
Chart 4 Changes in Earnings per Share by Segment 2006 Q2 vs. 2006 Q3 $ per Share Before Special Items* $1.50 $1.25 1.16 $1.00 (0.12) 0.07 0.02 0.89 0.24 0.01 $0.75 $0.50 (0.49) $0.25 $0.00 2006 Q2 Timberlands Wood Cellulose Container- Real Estate & Corp & Other 2006 Q3 Before Special Products Fiber
Slide 8: Average Mill Net 3rd-Party Realizations — OSB and Lumber / Engineered Lumber
Chart 5 Average Mill Net 3rd-Party Realizations — OSB and Lumber / Engineered Lumber OSB and Lumber Engineered Lumber $/Thousand $/Unit 500 2600 450 439 Lumber ($/MBF) Solid Section ($/CCF) 433 2400 2211 2229 2228 408 407 406 2204 2175 394 2154 400 2200 2063 371 350 2000 300 317 1800 294 306 287 250
Slide 9: Average Mill Net 3rd-Party Realizations — Cellulose Fiber and White Papers
Chart 6 Average Mill Net 3rd-Party Realizations — Cellulose Fiber and White Papers Cellulose Fiber White Papers $/ADMT $/SWT 670 950 923 650 648 925 900 630 894 621 875 610 605 604 850 590 598 825 585 584 811 570 800 816 808 800 794 550 775 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2005 20
Slide 10: Average Mill Net 3rd-Party Realizations — Containerboard and Packaging
Chart 7 Average Mill Net 3rd-Party Realizations — Containerboard and Packaging Containerboard Packaging (Box) $/Ton $/MSF 500 57 56 475 455 55 54.14 450 54 443 425 53 52.12 51.74 52.28 52 400 397 389 51 375 389 50.04 49.65 50 350 362 358 49 48 325 47 47.79 300 46 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1
Slide 11: Key Changes in Earnings per Share, 2006 Q2 vs. Q3
Chart 8 Key Changes in Earnings per Share 2006 Q2 vs. 2006 Q3 $ per Share Before Special Items* $1.50 $1.25 1.16 $1.00 0.11 0.07 0.89 (0.21) 0.19 $0.75 (0.05) $0.50 (0.38) $0.25 $0.00 2006 Q2 Volume Price Mix: Price Mix: Mfg. Cost Real Estate & Other 2006 Q3 Before Special Wood Prod. / Cellulose Fib
Slide 12: Containerboard Packaging and Recycling: Expected Earnings Improvements Through 2008
Chart 9 Containerboard Packaging and Recycling Expected Earnings Improvements Through 2008 $230 Million • Labor reductions • More efficient maintenance Mill Mill spending Initiatives Initiatives • Lower energy consumption $65 $65 MM MM • Lower chemical consumption Converting Converting • Machine eff