Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q3 2008 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, Oct 31, 2008
Slide 1: Earnings Release 3rd Quarter 2008
Earnings Release 3rd Quarter — 2008 Weyerhaeuser Company October 31, 2008 3065 2008 Q3.ppt • 10/30/2008• 1
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 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 Q3 Consolidated Results
Chart 1 2008 Q3 Consolidated Results 2008 Q3 $ Millions except EPS 2008 2008 Revenues ($ Millions) $2,621 Contribution to Pre-Tax Earnings before Q2 Q3 Special Items Timberlands 2. $102 $107 Net Earnings before Special Items ($ Millions) 1. ($3) Wood Products (131) (109) Cellulose Fibers 43 78 Dilut
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 $0.03 $0.00 -$0.01 -$0.20 -$0.24 -$0.40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 3065 2008 Q3.ppt • 10/30/2008• 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2008 2008 2008 2008 Q2 Q3 Q2 Q3 Diluted EPS / Net Earnings before Special Items $0.03 ($0.01) $7 ($3) Sale of Containerboard, Packaging & Recycling Operations (0.00) 1.44 0 303 Sale of Australian Operations (0.00) 0.75 0 1
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 $0.40 $0.30 0.10 $0.20 0.06 $0.10 0.03 0.01 0.22 $0.00 -$0.10 (0.01) (0.28) -$0.20 -$0.30 (0.15) -$0.40 2008 Q2 Timberlands Wood Cellulose Container- Real Estate Corp & Other 2008 Q3 Before Special Produc
Slide 8: Segment Highlights — Timberlands
Chart 5 Segment Highlights — Timberlands 3rd Quarter Highlights Timberlands ($ Millions) 2008 Q2 2008 Q3 z Higher oil and gas revenues z Increase in sales of non-strategic timberlands Revenues $224 $254 z Lower domestic log prices Contribution to Pre-Tax Earnings $103 $107 z Seasonal decline in fee
Slide 9: Segment Highlights — Wood Products
Chart 6 Segment Highlights — Wood Products 3rd Quarter Highlights z Average price realizations for lumber, OSB and Wood Products ($ Millions) 2008 Q2 2008 Q3 engineered lumber products improved z Manufacturing and SG&A costs declined Revenues $1,071 $1,006 z Lower shipment volumes for all primary pr
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 $/Unit 500 2400 450 2200 2080 2008 Solid Section ($/CCF) 400 Lumber ($/MBF) 1947 1939 359 2000 1868 346 351 1853 1813 350 322 329 310 1800 300 287 1600 250 TJI’s ($/MLF) OSB ($/M 3
Slide 11: Segment Highlights — Cellulose Fibers
Chart 8 Segment Highlights — Cellulose Fibers 3rd Quarter Highlights z Fewer annual maintenance outages Cellulose Fibers ($ Millions) 2008 Q2 2008 Q3 resulted in lower maintenance costs and improved productivity Revenues $460 $447 z Average pulp price realizations increased Contribution to Pre-Tax E
Slide 12: Segment Highlights — Containerboard, Packaging & Recycling
Chart 9 Segment Highlights — Containerboard, Packaging & Recycling 3rd Quarter Highlights z Weyerhaeuser sold its Containerboard, Packaging & Recycling operations to International Paper on August 4 z 3rd quarter results reflect the segment’s operations for the month of July z Weyerhaeuser recognized
Slide 13: Segment Highlights — Real Estate
Chart 10 Segment Highlights — Real Estate 3rd Quarter Highlights z Asset impairments and investment-related Real Estate ($ Millions) 2008 Q2 2008 Q3 charges were $235 million z 3rd quarter included an $87 million loss on an Revenues $354 $329 acreage sale and $12 million of income from a commercial
Slide 14: 2008 4Q Outlook
Chart 11 2008 4Q Outlook Segment Comments z Weyerhaeuser expects 2008 Q4 earnings from this segment to be lower than 2008 Q3. Timberlands z Fee harvest volumes are expected to be lower due to the weak domestic market. z Weyerhaeuser expects challenging housing market conditions to continue into 2008
Slide 15: Financial Update
Chart 12 Financial Update Cash and ($ millions) Short-Term Debt Investments Balance as of September 28, 2008 $6,823 $4,800 Estimated Scheduled Q4 Debt Maturities (400) (400) Estimated December 2008 Dividend Payment (130) Estimated December 2008 Cash Taxes (1,400) Estimated Pro Forma Year End 2008 Ba
Slide 16: Appendix
Appendix 3065 2008 Q3.ppt • 10/30/2008• 16
Slide 17: 2008 Q3 Earnings Summary
Chart 13 2008 Q3 Earnings Summary $ Millions except EPS 2007 2008 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revised 4. Timberlands 6. $175 $141 $165 $129 $112 $102 $107 Wood Products (108) (73) (109) (210) (203) (131) (109) Cellulose Fibers 22 48 81 80 56 43 78 Fine Paper 22
Slide 18: Earnings per Share Reconciliation
Chart 14 Earnings per Share Reconciliation 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revised 1. Diluted EPS before Special Items $0.20 $0.48 $0.55 $0.42 ($0.24) $0.03 ($0.01) Closures, Restructuring and Impairment of Weyerhaeuser Assets (0.20) (0.09) (0.16) (0.37) (0.19) (0.20) (0.16) Impairments and Reserves