Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q1 2011 Earnings Presentation
18 slides from Weyerhaeuser's earnings presentation, Apr 29, 2011
Slide 1: Earnings Release – 1st Quarter 2011
WEYERHAEUSER Earnings Release – 1st Quarter 2011
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 Q1 Consolidated Results
Chart 1 2011 Q1 Consolidated Results 2011 Q1 $ Millions except EPS 2010 2011 Revenues ($ Millions) $1,578 Contribution to Pre-Tax Earnings Q4 Q1 Before Special Items Net Earnings $3 Timberlands $56 $89 Before Special Items ($ Millions)1. Diluted Earnings Per Share Wood Products (85) (36) $0.00 Befor
Slide 5: Diluted EPS Before Special Items
Chart 2 Diluted EPS Before Special Items1 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 $0.00 $0.00 -$0.20 -$0.07 -$0.40 -$0.60 -$0.80 -$1.00 -$1.20 Q1 Q2 Q3 Q4 Q1 2010 2011 1. Weyerhaeuser’s share count increased during 2
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2010 2011 2010 2011 Q4 Q1 Q4 Q1 Diluted EPS / Net Earnings Before Special Items $0.10 $0.00 $52 $3 Gain on Sale of 82,000 Acres of Non-Strategic 0.18 96 Timberlands Income Tax Adjustments and Credits 0.33 177 Asset Impairm
Slide 7: Changes in Contribution to Earnings by Segment
Chart 4 Changes in Contribution to Earnings by Segment Earnings Before Special Items, Interest Expense and Taxes ($ millions)1 $250 49 $200 33 144 (52) $150 (34) 97 $100 (43) $50 $0 -$50 2010 Q4 Timberlands Wood Products Cellulose Fibers Real Estate Corp & Other 2011 Q1 1. A reconciliation before Sp
Slide 8: Timberlands Segment
Chart 5 Timberlands Segment Timberlands ($ Millions) 2010 Q4 2011 Q1 1st Quarter Notes 1st quarter includes $152 million from the sale Third Party Revenues1. $202 $223 of 82,000 acres of non-strategic timberlands Inter-Segment Revenues1. $102 $112 Improved selling prices for western logs due to
Slide 9: Fee Harvest and 3rd-Party Log Realizations — Chart
Fee Harvest and 3rd-Party Log Realizations — Chart 6 Western / Southern Timberlands Fee Harvest Volume Average 3rd-Party Realizations — Logs 3000 120 110 100 98 2600 100 95 91 90 84 South (m3) 2116 2180 West ($/m3) 2140 2200 2060 80 (Thousands) ($/m3) 1881 70 1800 60 50 43 44 44 42 1611 41 1400 40 1
Slide 10: Wood Products Segment
Chart 7 Wood Products Segment Wood Products ($ Millions) 2010 Q4 2011 Q1 1st Quarter Notes Higher selling prices for most products Revenues $572 $624 Continued cost reductions Contribution to Pre-Tax Earnings Improved operating rates for lumber and OSB ($188) ($36) Including Special Items Hi
Slide 11: Average 3rd-Party Realizations — Chart
Average 3rd-Party Realizations — Chart 8 OSB and Lumber / Engineered Lumber OSB and Lumber Engineered Lumber 500 2400 450 2200 400 Solid Section ($/CCF) 2000 348 1849 1854 1851 350 317 Lumber ($/MBF) 1785 315 ($/Thousand) 293 1800 1718 ($/Unit) 287 300 1600 250 266 OSB ($/M 3/8‖) 1400 TJI’s ($/MLF)
Slide 12: Cellulose Fibers Segment
Chart 9 Cellulose Fibers Segment Cellulose Fibers ($ Millions) 2010 Q4 2011 Q1 1st Quarter Notes Lower average selling prices Revenues $511 $506 Higher maintenance costs and lower Contribution to Pre-Tax Earnings $138 $86 production due to annual outages Two maintenance outages in the 1st quar
Slide 13: Real Estate Segment
Chart 10 Real Estate Segment 1st Quarter Notes Real Estate ($ Millions) 2010 Q4 2011 Q1 Seasonally fewer home sale closings Revenues $305 $160 Lower margins on homes closed, due to mix Contribution to Pre-Tax Earnings 4th quarter included charges of $20 million $13 ($1) for asset impairments a
Slide 14: 2011 Q2 Outlook
Chart 11 2011 Q2 Outlook Segment Comments Modestly improved selling prices for western logs and higher harvest volumes, driven by strong export demand Flat sales realizations in the south on slightly higher volumes Timberlands Higher fuel, road and silviculture expenses Excluding the disposi
Slide 15: Appendix
Appendix 04/29/2011 • 15
Slide 16: Pro Forma Earnings Per Share
Chart 12 Pro Forma Earnings Per Share 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 Timberlands $81 $70 $75 $56 $89 Wood Products (63) (11) (100) (85) (36) Cellulose Fibers 19 74 181 138 86 Real Estate 31 27 20 33 (1) Corporate and Other 12 8 10 2 (41) Total Contri
Slide 18: Earnings per Share Reconciliation
Chart 14 Earnings per Share Reconciliation 2010 2011 Q1 Q2 Q3 Q4 Q1 Diluted EPS before Special Items ($0.07) $0.20 $0.25 $0.10 $0.00 Income Tax Adjustments and Credits (0.15) 3.25 0.33 Loss on Early Extinguishment of Debt (0.16) Net Gain on Divestiture of Assets and Operations 0.12 0.03 0.06 0.18 Cl