Slide 1: Weyerhaeuser Earnings Release – 3rd Quarter 2012
WEYERHAEUSER Earnings Release – 3rd 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 Q3 Consolidated Results
Chart 1 2012 Q3 CONSOLIDATED RESULTS 2012 Q2 2012 Q3 $ Millions EXCEPT EPS 2012 2012 Net Income Contribution to Pre-Tax Earnings $47 $117 Q2 Q3 Change Before Special Items1. Before Special Items Diluted EPS Timberlands $77 $80 $3 $0.09 $0.22 Before Special Items1. Wood Products 30 59 29 EBITDA Cellu
Slide 5: Earnings Before Special Items
Chart 2 EARNINGS BEFORE SPECIAL ITEMS Reconciliation to GAAP 2012 Q2 2012 Q3 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 $130 $47 $0.09 $217 $117 $0.22 Special Item
Slide 6: Timberlands Segment
Chart 3 TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions) 2012 Q2 2012 Q3 Third Party Revenues1. $259 $262 Intersegment Revenues1. $115 $103 Contribution to Pre-Tax Earnings $77 $80 EBITDA2. $111 $114 Operating Margin3. 21% 22% 1. 2012 Q3 excludes $5 million of third party revenue and $59 million of inte
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 $104 $41 $41 $40 $41 $42 $100 $100 $99 $39 $40 $94 $89 Volumes (Thousands of m3) 2,000 $100 2,000 $40 Volumes (Thousands of m3) Realizations ($/m3)
Slide 8: Wood Products Segment
Chart 5 WOOD PRODUCTS SEGMENT WOOD PRODUCTS ($ Millions) 2012 Q2 2012 Q3 Third Party Revenues $776 $816 Intersegment Revenues $20 $18 Contribution to Pre-Tax Earnings Before Special Items $30 $59 Pre-Tax Special Items 6 -- Contribution to Pre-Tax Earnings Including Special Items $36 $59 EBITDA, excl
Slide 9: 3rd-Party Sales Volumes and Realizations
Chart 6 3RD-PARTY SALES VOLUMES AND REALIZATIONS Lumber OSB 2,000 $400 1,200 $300 $268 $350 $359 Volumes (Millions of Square Ft.) Volumes (Millions of Board Ft.) $214 Realizations ($/M 3/8”) 1,600 $350 $197 Realizations ($/MBF) $315 $311 900 $191 $225 $301 $301 $296 $177 $176 $173 1,200 1,056 1,013
Slide 10: Cellulose Fibers Segment
Chart 7 CELLULOSE FIBERS SEGMENT CELLULOSE FIBERS ($ Millions) 2012 Q2 2012 Q3 Total Revenues $459 $459 Contribution to Pre-Tax Earnings $36 $78 EBITDA1. $71 $112 Operating Margin2. 8% 17% Days of Scheduled Annual Maintenance 27 13 1. A reconciliation to GAAP is set forth on Chart 17, and at www.wey
Slide 11: Cellulose Fibers Segment Volumes and Realizations
Chart 8 CELLULOSE FIBERS SEGMENT 3rd-Party Sales Volumes and Realizations – Pulp Production Volumes – Pulp 600 $1,000 600 Volumes (Thousands of ADMT) $960 Volumes (Thousands of ADMT) Realizations ($/ADMT) 550 $900 550 $912 $920 $895 500 $800 500 $818 $819 $818 468 462 460 449 453 450 436 $700 450 43
Slide 12: Real Estate Segment
Chart 9 REAL ESTATE SEGMENT REAL ESTATE ($ Millions) 2012 Q2 2012 Q3 Total Revenues $296 $230 Contribution to Pre-Tax Earnings $15 $17 EBITDA1. $31 $24 Operating Margin2. 5% 7% 1. A reconciliation to GAAP is set forth on Chart 17, and at www.weyerhaeuser.com. 2. Contribution to Pre-Tax Earnings divi
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% 18% $391 Cancellation Rate (%) 30% $400 Price ($ Thousands) 950 17% 15% $376 $374 $372 Gross Margin (%) Homes Closed (Units) 16%
Slide 14: Unallocated Items
Chart 11 UNALLOCATED ITEMS1. UNALLOCATED ITEMS ($ Millions) 2012 Q2 2012 Q3 Unallocated Corporate Function Expenses ($3) ($5) Unallocated Share-Based Compensation (1) (7) Unallocated Pension & Postretirement Costs (7) (7) Foreign Exchange Gains (Losses) (8) 11 Elimination of Intersegment Profit in I
Slide 15: Outlook: 2012 Q4
OUTLOOK: 2012 Q4 Chart 12 SEGMENT COMMENTS • Slightly improved selling prices and comparable sales volumes for Western domestic logs • Increased demand and slightly improved price realizations for export logs • Slightly lower Southern log realizations due to mix, and small seasonal increase in fee T
Slide 16: Financial Items
FINANCIAL ITEMS Chart 13 Cash from Operations $267 300 ($ Millions) 2012 Q2 2012 Q3 200 $147 $122 $114 $117 ($ Millions) 100 Ending Cash Balance $861 $608 0 Long-Term Debt $4,472 $4,291 (100) ($60) ($87) (200) Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 Capital Expenditures Scheduled Debt Maturities 150 as of Se
Slide 17: Appendix
APPENDIX 17 | 10/26/2012
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 Q3 Diluted EPS Before Special Items $0.00 $0.06 $0.12 $0.14 $0.02 $0.09 $0.22 Special Items: Gain on Postretirement Plan -- -- -- -- 0.06 0.06 -- Amendment Income Tax Adjustments and Credits -- -- 0.15 -- 0.02 -- -- Closures, Res
Slide 21: EBITDA Reconciliation
Chart 17 EBITDA RECONCILIATION $ Millions 2012 Q2 2012 Q3 Wood Cellulose Real Unallocated Wood Cellulose Real Unallocated Timberlands Products Fibers Estate Items Total Timberlands Products Fibers Estate Items Total EBITDA Excluding Special $111 $63 $71 $31 ($25) $251 $114 $92 $112 $24 ($22) $320 It