Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q2 2011 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, Jul 29, 2011
Slide 1: Earnings Release – 2nd Quarter 2011
WEYERHAEUSER Earnings Release – 2nd Quarter 2011 07/29/2011 • 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. 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: 2011 Q2 Consolidated Results
2011 Q1 CONSOLIDATED RESULTS Chart 1 2011 Q2 $ Millions except EPS 2011 2011 Revenues ($ Millions) $1,773 Contribution to Pre-Tax Earnings Q1 Q2 Before Special Items Net Earnings $32 Timberlands $89 $112 Before Special Items ($ Millions)1. Diluted Earnings Per Share Wood Products (36) (52) $0.06 Bef
Slide 5: Diluted EPS Before Special Items
DILUTED EPS BEFORE SPECIAL ITEMS1 Chart 2 A reconciliation to GAAP EPS is available on Chart 14 and at www.weyerhaeuser.com $0.80 $0.60 $0.40 $0.20 $0.25 $0.20 $0.10 $0.06 $0.00 $0.00 -$0.20 -$0.07 -$0.40 -$0.60 -$0.80 -$1.00 -$1.20 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 1. Weyerhaeuser’s share count increased
Slide 6: Reconciliation to GAAP
RECONCILIATION TO GAAP Chart 3 $ Millions except EPS Diluted EPS Net Earnings 2011 2011 2011 2011 Q1 Q2 Q1 Q2 Diluted EPS / Net Earnings Before Special Items $0.00 $0.06 $3 $32 Gain on Sale of 82,000 Acres of Non-Strategic 0.18 96 Timberlands Loss on Early Extinguishment of Debt (0.03) (16) Charges
Slide 7: Changes in Contribution to Earnings by Segment
CHANGES IN CONTRIBUTION Chart 4 TO EARNINGS BY SEGMENT Earnings Before Special Items, Interest Expense and Taxes ($ millions)1 $250 $200 $150 19 126 23 9 97 $100 (16) (6) $50 $0 -$50 2011 Q1 Timberlands Wood Products Cellulose Fibers Real Estate Corp & Other 2011 Q2 1. A reconciliation before Specia
Slide 8: Timberlands Segment
TIMBERLANDS SEGMENT Chart 5 Timberlands ($ Millions) 2011 Q1 2011 Q2 2nd Quarter Notes Higher fee harvest volume Third Party Revenues1. $223 $287 Improved selling prices for western logs Inter-Segment Revenues1. $112 $107 due to strong Chinese export demand Higher fuel costs Contribution to Pr
Slide 9: Fee Harvest and 3rd-Party Log Realizations — Western / Southern Timberlands
FEE HARVEST AND 3RD-PARTY LOG REALIZATIONS — WESTERN / SOUTHERN TIMBERLANDS Chart 6 Fee Harvest Volume Average 3rd-Party Realizations — Logs 3000 120 109 110 100 98 2600 100 95 91 2355 90 84 South (m3) 2116 2180 West ($/m3) 2140 2200 2060 80 (Thousands) ($/m3) 1881 70 1800 60 1747 50 43 44 44 42 161
Slide 10: Wood Products Segment
WOOD PRODUCTS SEGMENT Chart 7 2nd Quarter Notes Wood Products ($ Millions) 2011 Q1 2011 Q2 Lower selling prices for lumber and OSB Revenues $624 $702 Higher log costs Contribution to Pre-Tax Earnings Improved sales volumes for most ($36) ($52) products Before Special Items 2nd quarter includ
Slide 11: Average 3rd-Party Realizations — OSB and Lumber / Engineered Lumber
AVERAGE 3RD-PARTY REALIZATIONS — Chart 8 OSB AND LUMBER / ENGINEERED LUMBER OSB and Lumber Engineered Lumber 500 2400 450 2200 400 Solid Section ($/CCF) 2000 1905 348 1849 1854 1851 350 Lumber ($/MBF) 1785 317 315 ($/Thousand) 293 301 1800 1718 ($/Unit) 287 300 1600 250 266 OSB ($/M 3/8‖) 1400 TJI’s
Slide 12: Cellulose Fibers Segment
CELLULOSE FIBERS SEGMENT Chart 9 Cellulose Fibers ($ Millions) 2011 Q1 2011 Q2 2nd Quarter Notes Revenues $506 $526 Higher maintenance costs and lower production due to annual outages Contribution to Pre-Tax Earnings $86 $80 Four maintenance outages in the 2nd quarter, compared with two in the 1
Slide 13: Real Estate Segment
REAL ESTATE SEGMENT Chart 10 2nd Quarter Notes Real Estate ($ Millions) 2011 Q1 2011 Q2 Seasonal increase in home sale closings Revenues $160 $191 Margins on homes closed improved slightly Average prices declined, due to mix Contribution to Pre-Tax Earnings ($1) $8 2nd quarter includes $4 mi
Slide 14: 2011 Q3 Outlook
2011 Q3 OUTLOOK Chart 11 Segment Comments Lower selling prices and harvest volumes in the West Seasonally higher silviculture and road expenses Timberlands Reduced earnings from disposition of non-strategic timberlands Expect 2011 Q3 earnings to be significantly lower than 2011 Q2 Lower se
Slide 15: Appendix
APPENDIX 07/29/2011 +» 45
Slide 16: Pro Forma Earnings Per Share
PRO FORMA EARNINGS PER SHARE Chart 12 On Sept. 1, 2010, Weyerhaeuser paid a previously announced special dividend consisting of approximately 324 million shares of common stock and $560 million in cash. After payment of the special dividend, Weyerhaeuser had approximately 536 million basic share
Slide 17: Earnings Summary
EARNINGS SUMMARY Chart 13 $ Millions except EPS 2010 2011 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Timberlands $81 $70 $75 $56 $89 $112 Wood Products (63) (11) (100) (85) (36) (52) Cellulose Fibers 19 74 181 138 86 80 Real Estate 31 27 20 33 (1) 8 Corporate and Other 12 8 10 2
Slide 18: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Chart 14 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Diluted EPS before Special Items ($0.07) $0.20 $0.25 $0.10 $0.00 $0.06 Income Tax Adjustments and Credits (0.15) 3.25 0.33 Loss on Early Extinguishment of Debt (0.16) (0.03) Net Gain on Divestiture of Assets and Operations 0.12 0