Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q4 2010 Earnings Presentation
19 slides from Weyerhaeuser's earnings presentation, Feb 4, 2011
Slide 1: Earnings Release – 4th Quarter 2010
WEYERHAEUSER Earnings Release – 4th Quarter 2010
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: 2010 Q4 Consolidated Results
Chart 1 2010 Q4 Consolidated Results 2010 Q4 $ Millions except EPS 2010 2010 Revenues ($ Millions) $1,664 Contribution to Pre-Tax Earnings Q3 Q4 Before Special Items Net Earnings $52 Timberlands $75 $56 Before Special Items ($ Millions)1. Diluted Earnings Per Share Wood Products (100) (85) $0.10 Bef
Slide 5: Diluted EPS Before Special Items
Chart 2 Diluted EPS Before Special Items A reconciliation to GAAP EPS is available on Chart 15 and at www.weyerhaeuser.com $0.80 $0.60 $0.40 $0.25 $0.20 $0.20 $0.10 $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 Q3 Q4 2009 2010 1. Weyerhaeuser’s
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2010 2010 2010 2010 Q3 Q4 Q3 Q4 Diluted EPS / Net Earnings Before Special Items $0.25 $0.10 $81 $52 Income Tax Adjustments and Credits 3.25 0.33 1,035 177 Asset Impairments (0.14) (76) Gain on Sale of Railroads 0.06 31 Clo
Slide 7: Changes in Contribution to Earnings by Segment
Chart 4 Changes in Contribution to Earnings by Segment Earnings Before Special Items, Interest Expense and Taxes ($ millions)1 $250 $200 186 15 13 144 $150 (19) (43) (8) $100 $50 $0 -$50 -$100 2010 Q3 Timberlands Wood Products Cellulose Fibers Real Estate Corp & Other 2010 Q4 1. A reconciliation bef
Slide 8: Timberlands Segment
Chart 5 Timberlands Segment Timberlands ($ Millions) 2010 Q3 2010 Q4 4th Quarter Notes Fewer dispositions of non-strategic Third Party Revenues1. $237 $202 timberlands Inter-Segment Revenues1. $103 $102 Higher per unit logging costs due to market- related downtime in the west Contribution to Pre
Slide 9: Fee Harvest and 3rd-Party Log Realizations
Fee Harvest and 3rd-Party Log Realizations — Chart 6 Western / Southern Timberlands Fee Harvest Volume Average 3rd-Party Realizations — Logs 3000 120 110 98 2600 2495 100 95 2380 91 2258 90 West ($/m3) 84 South (m3) 79 2140 2116 2200 2060 80 75 73 (Thousands) 68 ($/m3) 1863 1881 70 1800 1910 60 1678
Slide 10: Wood Products Segment
Chart 7 Wood Products Segment Wood Products ($ Millions) 2010 Q3 2010 Q4 4th Quarter Notes Seasonally lower sales volumes Revenues $626 $572 Slightly lower log costs Contribution to Pre-Tax Earnings Reduced selling, general and administrative ($100) ($188) expenses Including Special Items 4t
Slide 11: Average 3rd-Party Realizations — OSB, Lumber, Engineered Lumber
Average 3rd-Party Realizations — Chart 8 OSB and Lumber / Engineered Lumber OSB and Lumber Engineered Lumber 500 2400 450 2200 400 Solid Section ($/CCF) 2000 348 1849 1854 350 1817 1785 Lumber ($/MBF) 317 1771 1750 1754 ($/Thousand) 293 1800 1718 ($/Unit) 287 300 271 267 241 244 1600 250 266 OSB ($/
Slide 12: Cellulose Fibers Segment
Chart 9 Cellulose Fibers Segment Cellulose Fibers ($ Millions) 2010 Q3 2010 Q4 4th Quarter Notes Sales volumes declined slightly Revenues $522 $511 Higher maintenance costs and lower Contribution to Pre-Tax Earnings $181 $138 production due to an annual outage at the New Bern, N.C. mill No mai
Slide 13: Real Estate Segment
Chart 10 Real Estate Segment 4th Quarter Notes Real Estate ($ Millions) 2010 Q3 2010 Q4 Increased home sale closings Improved margins on homes closed, due to mix Revenues $210 $305 4th quarter includes gains of $6 million on sales Contribution to Pre-Tax Earnings of land, lots and apartments,
Slide 14: 2011 Q1 Outlook
Chart 11 2011 Q1 Outlook Segment Comments Higher selling prices for western logs and seasonally higher harvest volumes Excluding the disposition of non-strategic timberlands, Weyerhaeuser expects 2011 Q1 earnings to be Timberlands higher than 2010 Q4 A sale of non-strategic timberland in south
Slide 15: Appendix
Appendix 02/04/2011 • 15
Slide 16: Reconciliation of Changes in Share Count
Chart 12 Reconciliation of Changes in Share Count 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. All numbers are approximate due to rounding. Explanation of 2010 Q4 Share Count (
Slide 17: Pro Forma Earnings Per Share
Chart 13 Pro Forma Earnings Per Share After payment of the 2010 Q3 Special Dividend, Weyerhaeuser had approximately 536 million basic shares outstanding. The following table sets forth a pro forma EPS as if Special Dividend shares had been outstanding. 2009 2009 2010 2010 2010 2010 Net Earnings,
Slide 18: Earnings Summary Chart
Earnings Summary Chart 14 $ Millions except EPS 2009 2010 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Timberlands $40 $71 $58 $28 $81 $70 $75 $56 Wood Products (176) (147) (92) (123) (63) (11) (100) (85) Cellulose Fibers 32 (7) 44 34 19 74 181 138 Real Estate (24) 2 (9) 11
Slide 19: Earnings per Share Reconciliation
Chart 15 Earnings per Share Reconciliation 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diluted EPS before Special Items ($0.68) ($0.59) ($0.26) ($0.52) ($0.07) $0.20 $0.25 $0.10 Income Tax Adjustments and Credits 0.34 0.25 0.36 (0.15) 3.25 0.33 Gain (Loss) on Early Extinguishment of Debt (0.09) (0.16) Net Gai