Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q2 2012 Earnings Presentation
21 slides from Weyerhaeuser's earnings presentation, Jul 27, 2012
Slide 1: Earnings Release – 2nd Quarter 2012
WEYERHAEUSER Earnings Release – 2nd Quarter 2012 1 | 07/27/2012
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: Non-GAAP Financial Measures
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 at www.weyerhaeuser.com
Slide 4: 2012 Q2 Consolidated Results
Chart 1 2012 Q2 CONSOLIDATED RESULTS 2012 Q1 2012 Q2 $ Millions EXCEPT EPS 2012 2012 Net Income Contribution to Pre-Tax Earnings $9 $47 Q1 Q2 Change Before Special Items1. Before Special Items3. Diluted EPS Timberlands $70 $77 $7 $0.02 $0.09 Before Special Items1. Wood Products (13) 30 43 EBITDA Cel
Slide 5: Earnings Before Special Items
Chart 2 EARNINGS BEFORE SPECIAL ITEMS Reconciliation to GAAP 2012 Q1 2012 Q2 Contribution Contribution After-Tax After-Tax $ Millions EXCEPT EPS to Pre-Tax Earnings Diluted EPS to Pre-Tax Earnings Diluted EPS Earnings Earnings Earnings Before Special Items $75 $9 $0.02 $130 $47 $0.09 Special Items:
Slide 6: Timberlands Segment
Chart 3 TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions) 2012 Q1 2012 Q2 Third Party Revenues1. $242 $259 Intersegment Revenues1. $112 $115 Contribution to Pre-Tax Earnings2. $70 $77 EBITDA3. $104 $111 Operating Margin4. 20% 21% 1. Revenues exclude Canadian Forestland operations. 2. Contribution to pre-
Slide 7: Western/Southern Timberlands
Chart 4 WESTERN/SOUTHERN TIMBERLANDS 3rd-Party Log Sales and Realizations - West 3rd-Party Log Sales and Realizations - South 2,500 $109 $125 2,500 $50 $100 $104 $100 $41 $41 $40 $40 $41 $99 $94 $39 Volumes (Thousands of m3) 2,000 $100 2,000 $40 Volumes (Thousands of m3) Realizations ($/m3) Realizat
Slide 8: Wood Products Segment
Chart 5 WOOD PRODUCTS SEGMENT WOOD PRODUCTS ($ Millions) 2012 Q1 2012 Q2 Third Party Revenues $634 $776 Intersegment Revenues $20 $20 Contribution (Charge) to Pre-Tax Earnings Before ($13) $30 Special Items1. Pre-Tax Special Items -- 6 Contribution (Charge) to Pre-Tax Earnings Including ($13) $36 Sp
Slide 9: 3rd-Party Sales Volumes and Realizations
Chart 6 3RD-PARTY SALES VOLUMES AND REALIZATIONS Lumber OSB 1,600 $350 $350 1,000 $250 $214 $315 Volumes (Millions of Square Ft.) $311 $191 $197 Volumes (Millions of Board Ft.) $301 $301 $296 $177 $176 Realizations ($/M 3/8”) 800 $173 $200 Realizations ($/MBF) 1,200 1,056 $300 643 963 934 937 565 86
Slide 10: Cellulose Fibers Segment
Chart 7 CELLULOSE FIBERS SEGMENT CELLULOSE FIBERS ($ Millions) 2012 Q1 2012 Q2 Total Revenues $473 $459 Contribution to Pre-Tax Earnings1. $48 $36 EBITDA2. $86 $71 Operating Margin3. 10% 8% Days of Scheduled Annual Maintenance 27 27 1. Contribution to pre-tax earnings for 2012 Q1 has been adjusted t
Slide 11: Cellulose Fibers Segment
Chart 8 CELLULOSE FIBERS SEGMENT 3rd-Party Sales Volumes and Realizations -- Pulp Production Volumes -- Pulp 600 $1,000 600 Volumes (Thousands of ADMT) $960 Realizations ($/ADMT) Volumes (Thousands of ADMT) 550 $900 550 $912 $920 $895 500 $800 500 $818 $819 468 462 460 449 450 436 $700 450 437 438 4
Slide 12: Real Estate Segment
Chart 9 REAL ESTATE SEGMENT REAL ESTATE ($ Millions) 2012 Q1 2012 Q2 Total Revenues $137 $296 Contribution (Charge) to Pre-Tax Earnings ($8) $15 EBITDA1. ($4) $31 Operating Margin2. (6%) 5% 1. A reconciliation to GAAP is set forth on Chart 17, and at www.weyerhaeuser.com. 2. Contribution to Pre-Tax
Slide 13: Single Family Homebuilding
Chart 10 SINGLE FAMILY HOMEBUILDING Average Closing Price and Home Closings and Cancellation Rate Gross Margin Excluding Impairments 1,200 20% 35% $450 $419 $403 $398 18% $391 Cancellation Rate (%) 30% $400 Price ($ Thousands) 950 17% 15% $376 $374 Gross Margin (%) Homes Closed (Units) 16% 15% 700 1
Slide 14: Unallocated Items
Chart 11 UNALLOCATED ITEMS1. UNALLOCATED ITEMS ($ Millions) 2012 Q1 2012 Q2 Unallocated Corporate Function Expenses ($6) ($3) Unallocated Share-Based Compensation (5) (1) Unallocated Pension & Postretirement Costs (7) (7) Foreign Exchange Gains (Losses) 6 (8) Elimination of Intersegment Profit in In
Slide 15: Outlook: 2012 Q3
OUTLOOK: 2012 Q3 Chart 12 SEGMENT COMMENTS • Slightly lower export log realizations, and lower domestic prices for Western logs • Somewhat lower Southern log price realizations due to mix Timberlands • Higher earnings from disposition of non-strategic timberlands • Expect 2012 Q3 earnings to be comp
Slide 16: Financial Items
FINANCIAL ITEMS Chart 13 Cash from Operations $267 300 ($ Millions) 2012 Q1 2012 Q2 200 $147 $114 $117 ($ Millions) 100 Ending Cash Balance $728 $861 0 Long-Term Debt $4,476 $4,472 (100) ($60) ($87) (200) Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 Scheduled Debt Maturities Capital Expenditures as of June 30, 2012
Slide 17: Appendix
Appendix 17 | 07/27/2012
Slide 18: Intersegment Profit / LIFO Adjustment
Chart 14 INTERSEGMENT PROFIT / LIFO ADJUSTMENT Weyerhaeuser began holding elimination of intersegment profit on inventory and the LIFO reserve as part of Unallocated Items during 2012 Q2. This change provides a better understanding of business segment operating results. Contributions to pre-tax earn
Slide 19: Earnings Summary
EARNINGS SUMMARY Chart 15 Weyerhaeuser began holding elimination of intersegment profit on inventory and the LIFO reserve as part of Unallocated Items during 2012 Q2. Contributions to pre-tax earnings for prior periods have been adjusted to reflect this change. A reconciliation to contribution to pr
Slide 20: Earnings Per Share Reconciliation
Chart 16 EARNINGS PER SHARE RECONCILIATION 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Diluted EPS Before Special Items $0.00 $0.06 $0.12 $0.14 $0.02 $0.09 Special Items: Gain on Postretirement Plan Amendment -- -- -- -- 0.06 0.06 Income Tax Adjustments and Credits -- -- 0.15 -- 0.02 -- Closures, Restructuring, Imp
Slide 21: EBITDA Reconciliation
Chart 17 EBITDA RECONCILIATION $ Millions 2012 Q1 2012 Q2 Wood Cellulose Real Unallocated Wood Cellulose Real Unallocated Timberlands Products Fibers Estate Items Total Timberlands Products Fibers Estate Items Total EBITDA Excluding Special $104 $20 $86 ($4) ($27) $179 $111 $63 $71 $31 ($25) $251 It