Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q1 2008 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, May 2, 2008
Slide 1: Earnings Release 1st Quarter 2008
Earnings Release 1st Quarter — 2008 Weyerhaeuser Company May 2, 2008 3065 2008 Q1.ppt • 5/02/2008• 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 Q1 Consolidated Results
Chart 1 2008 Q1 Consolidated Results 2008 Q1 $ Millions except EPS 2007 2008 Revenues ($ Millions) $3,393 Contribution to Pre-Tax Earnings before Q4 Q1 Special Items Timberlands $133 $116 Net Earnings before Special Items ($ Millions) 1. ($51) Wood Products (210) (203) Cellulose Fibers 80 56 Diluted
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 $0.00 -$0.20 -$0.24 -$0.40 Q1 Q2 Q3 Q4 Q1 2007 2008 3065 2008 Q1.ppt • 5/02/2008• 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2007 2008 2007 2008 Q4 Q1 Q4 Q1 Diluted EPS / Net Earnings before Special Items $0.42 ($0.24) $90 ($51) Closures, Restructuring and Impairment of (0.37) (0.19) (79) (40) Weyerhaeuser Assets Impairments and Reserves for Rea
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 0.42 $0.40 0.02 (0.05) $0.30 (0.07) (0.02) $0.20 $0.10 $0.00 -$0.10 -$0.20 (0.49) (0.05) (0.24) -$0.30 -$0.40 2007 Q4 Timberlands Wood Cellulose Container- Real Estate Corp & Other 2008 Q1 Before Special
Slide 8: Segment Highlights — Timberlands
Chart 5 Segment Highlights — Timberlands 1st Quarter Highlights Timberlands ($ Millions) 2007 Q4 2008 Q1 z Export and domestic log prices were modestly lower in the West Revenues $217 $194 z Fiber log prices in the South increased slightly Contribution to Pre-Tax Earnings $152 $116 z Earnings from s
Slide 9: Segment Highlights — Wood Products
Chart 6 Segment Highlights — Wood Products 1st Quarter Highlights z Average price realizations for lumber, OSB and Wood Products ($ Millions) 2007 Q4 2008 Q1 engineered wood products declined Revenues $1,118 $966 z Log costs were lower and sales and distribution costs declined Contribution to Pre-Ta
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 $/Unit 500 2600 450 2400 400 Lumber ($/MBF) 359 2200 2080 Solid Section ($/CCF) 346 351 350 2008 310 1947 1939 2000 1868 300 287 1800 250 OSB ($/M 3/8”) 1600 200 TJI’s ($/MLF) 181
Slide 11: Segment Highlights — Cellulose Fibers
Chart 8 Segment Highlights — Cellulose Fibers 1st Quarter Highlights z Average price realizations for both pulp and Cellulose Fibers ($ Millions) 2007 Q4 2008 Q1 liquid packaging board increased z Scheduled maintenance outage costs Revenues $444 $445 increased z Chemical, energy and fiber costs incr
Slide 12: Segment Highlights — Containerboard, Packaging & Recycling
Chart 9 Segment Highlights — Containerboard, Packaging & Recycling 1st Quarter Highlights z Packaging price realizations increased, but Containerboard, Packaging & shipment volumes were seasonally lower 2007 Q4 2008 Q1 Recycling ($ Millions) z Fiber costs increased for both chips and OCC z Transport
Slide 13: Average 3rd-Party Realizations — Containerboard and Packaging
Chart 10 Average 3rd-Party Realizations — Containerboard and Packaging Containerboard Packaging (Box) $/Ton $/MSF 550 60 59 525 58 500 57 494 494 56 56.25 475 480 55 55.81 473 55.02 54 450 461 54.13 53 53.52 425 52 51 400 50 375 49 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2007 2008 2007 2008 3065 2008 Q1.ppt •
Slide 14: Segment Highlights — Real Estate
Chart 11 Segment Highlights — Real Estate 1st Quarter Highlights Real Estate ($ Millions) 2007 Q4 2008 Q1 z Gains from land sales decreased $80 million z Earnings from single-family homebuilding declined Revenues $715 $371 due to lower margins and closings z Asset impairment charges totaled $33 mill
Slide 15: 2008 2Q Outlook
Chart 12 2008 2Q Outlook Segment Comments z Weyerhaeuser expects earnings from this segment to be slightly lower in 2008 Q2 vs. 2008 Q1 z The segment’s earnings are expected to be negatively affected by the continued weakness in the Timberlands housing market, storm salvage costs in the West, higher
Slide 16: Appendix
Appendix 3065 2008 Q1.ppt • 5/02/2008• 16
Slide 17: 2008 Q1 Earnings Summary
Chart 13 2008 Q1 Earnings Summary $ Millions except EPS 2007 2008 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Revised 4. Timberlands $175 $142 $167 $133 $116 Wood Products (108) (73) (109) (210) (203) Cellulose Fibers 22 48 81 80 56 Fine Paper 22 0 0 0 0 Containerboard, Packaging &
Slide 18: Earnings per Share Reconciliation
Chart 14 Earnings per Share Reconciliation 2007 2008 Q1 Q2 Q3 Q4 Q1 Revised 1. Diluted EPS before Special Items $0.20 $0.48 $0.55 $0.42 ($0.24) Closures, Restructuring and Impairment of Weyerhaeuser Assets (0.20) (0.09) (0.16) (0.37) (0.19) Impairments and Reserves for Real Estate Assets (0.04) (0.0