Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q2 2010 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, Jul 29, 2010
Slide 1: Earnings Release – 2nd Quarter 2010
WEYERHAEUSER Earnings Release – 2nd Quarter 2010
Slide 2: Forward-looking Statement
Forward-looking Statement 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. These statements are based on various assumptions and may not be acc
Slide 3: Statements Relating to Non-GAAP Financial Measures
Statements Relating to Non-GAAP Financial Measures 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: 2010 Q2 Consolidated Results
Chart 1 2010 Q2 Consolidated Results 2010 Q2 $ Millions except EPS 2010 2010 Revenues ($ Millions) $1,805 Contribution to Pre-Tax Earnings Q1 Q2 Before Special Items Net Earnings $42 Timberlands $81 $70 Before Special Items ($ Millions)1. Diluted Earnings Per Share Wood Products (63) (11) $0.20 Befo
Slide 5: Diluted EPS Before Special Items
Chart 2 Diluted EPS Before Special Items A reconciliation to GAAP EPS is available on Chart 14 and at www.weyerhaeuser.com $0.80 $0.60 $0.40 $0.20 $0.20 $0.00 -$0.07 -$0.20 -$0.26 -$0.40 -$0.60 -$0.59 -$0.52 -$0.68 -$0.80 -$1.00 -$1.20 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 07/29/2010 • 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2010 2010 2010 2010 Q1 Q2 Q1 Q2 Diluted EPS / Net Earnings Before Special Items ($0.07) $0.20 ($15) $42 Loss on Early Extinguishment of Debt (0.16) (33) Wood Products Asset Sales 0.12 0.03 26 5 Income Tax Adjustments (0.15
Slide 7: Changes in Contribution to Earnings by Segment
Chart 4 Changes in Contribution to Earnings by Segment Earnings Before Special Items, Interest and Taxes ($ millions)1. $200 55 168 (4) (4) $150 52 $100 80 (11) $50 $0 -$50 -$100 2010 Q1 Timberlands Wood Products Cellulose Fibers Real Estate Corp & Other 2010 Q2 1. A reconciliation before Special It
Slide 8: Timberlands Segment
Chart 5 Timberlands Segment Timberlands ($ Millions) 2010 Q1 2010 Q2 2nd Quarter Notes Improved log price realizations, primarily Third Party Revenues1. $192 $225 in the west Higher road and silviculture expenses Inter-Segment Revenues1. $104 $101 for US operations Contribution to Pre-Tax Earnin
Slide 9: Wood Products Segment
Chart 6 Wood Products Segment 2nd Quarter Notes Wood Products ($ Millions) 2010 Q1 2010 Q2 Market conditions were extremely volatile, Revenues $604 $789 deteriorating substantially beginning in mid-May Higher average sales realizations and volumes for Contribution to Pre-Tax Earnings most produc
Slide 10: Average 3rd-Party Realizations — OSB, Lumber, Engineered Lumber
Average 3rd-Party Realizations — Chart 7 OSB and Lumber / Engineered Lumber OSB and Lumber Engineered Lumber 500 2400 450 2200 400 Solid Section ($/CCF) 2000 348 350 1817 317 1771 1780 Lumber ($/MBF) 1754 ($/Thousand) 1750 1800 1715 ($/Unit) 300 271 267 241 244 1600 250 266 OSB ($/M 3/8‖) 1400 TJI’s
Slide 11: Cellulose Fibers Segment
Chart 8 Cellulose Fibers Segment 2nd Quarter Notes Cellulose Fibers ($ Millions) 2010 Q1 2010 Q2 Higher average price realizations Lower energy costs Revenues $410 $468 Lower production because of planned annual Contribution to Pre-Tax Earnings maintenance outages at three mills, compared $19
Slide 12: Real Estate Segment
Chart 9 Real Estate Segment 2nd Quarter Notes Real Estate ($ Millions) 2010 Q1 2010 Q2 Significant increase in home closings Revenues $151 $257 Improved margins on homes closed 2nd quarter includes gains of $13 million Contribution to Pre-Tax Earnings $31 $27 on land and lot sales, compared to
Slide 13: 2010 Q3 Outlook
Chart 10 2010 Q3 Outlook Segment Comments Weyerhaeuser anticipates lower domestic log prices, partially offset by higher export price realizations due to favorable mix. Timberlands The company expects seasonally higher silviculture costs. Excluding the disposition of non-strategic timberlands,
Slide 14: Special Dividend Calendar
Chart 11 Special Dividend Calendar Action Key Dates Filed prospectus with SEC Tuesday, July 13 Ex-dividend date Tuesday, July 20 Dividend record date Thursday, July 22 Prospectus and election form Thursday, July 29 mailed to shareholders Election forms due Monday, August 23 Stock valuation dates Aug
Slide 15: Hypothetical Share Impact: Special Dividend
Hypothetical Share Impact: Chart 12 Special Dividend (Updated, for illustrative purposes only) Special Dividend $ 5.60 billion Current Shares Outstanding 211.61 million Special Dividend per Share $26.46 per share Hypothetical Share Calculation Total Special Dividend $ 5.60 billion Cash Portion of Sp
Slide 16: Appendix
Appendix 07/29/2010 • 16
Slide 17: Earnings Summary
Chart 13 Earnings Summary $ Millions except EPS 2009 2010 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Timberlands $40 $71 $58 $28 $81 $70 Wood Products (176) (147) (92) (123) (63) (11) Cellulose Fibers 32 (7) 44 34 19 74 Real Estate (24) 2 (9) 11 31 27 Corporate and Other (14) 20
Slide 18: Earnings per Share Reconciliation
Chart 14 Earnings per Share Reconciliation 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Diluted EPS before Special Items ($0.68) ($0.59) ($0.26) ($0.52) ($0.07) $0.20 Gain (Loss) on Early Extinguishment of Debt (0.09) (0.16) Net Gain on Divestiture of Assets and Operations / 0.06 0.46 0.12 0.03 Restructuring of Urug