Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q2 2007 Earnings Presentation
20 slides from Weyerhaeuser's earnings presentation, Aug 3, 2007
Slide 1: Earnings Release 2nd Quarter 2007
Earnings Release 2nd Quarter — 2007 Weyerhaeuser Company August 3, 2007 DTP/3065 2007 Q2.ppt • 0703/07 • 1
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. Some of these forward-looking statements can be identified by the us
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: 2007 Q2 Consolidated Results
Chart 1 2007 Q2 Consolidated Results 2007 Q2 $ Millions except EPS 2007 2007 Revenues ($ Millions) $4,334 Contribution to Pre-Tax Earnings before Special Items Q1 Q2 Timberlands $175 $142 Net Earnings before Special Items $104 Wood Products (108) (73) ($ Millions) 1. Cellulose Fibers 22 48 Diluted E
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 $2.00 $1.75 $1.50 $1.25 $1.09 $0.95 $1.00 $0.92 $0.75 $0.64 $0.48 $0.50 $0.20 $0.25 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 2006 2007 DTP/3065 2007 Q2.ppt • 0703/07 • 5
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2007 2007 Q1 Q2 Q1 Q2 Diluted EPS / Net Earnings before Special Items $0.20 $0.48 $48 $104 Gain (Loss) on Domtar Transaction 3.24 (0.02) 756 (5) Net Gain on Sale of Assets and Operations 0.06 15 Charges for Closure and Imp
Slide 7: Changes in Earnings per Share by Segment
Chart 4 Changes in Earnings per Share by Segment 2007 Q1 vs. 2007 Q2 $ per Share Before Special Items1. $0.60 $0.50 0.08 0.48 0.06 $0.40 0.06 $0.30 0.07 0.20 0.10 $0.20 $0.10 (0.09) $0.00 2007 Q1 Timberlands Wood Cellulose Container- Real Estate & Corp. & Other 2. 2007 Q2 Before Special Products Fib
Slide 8: Segment Highlights — Timberlands
Chart 5 Segment Highlights — Timberlands 2nd Quarter Highlights Timberlands ($ Millions) 2007 Q2 2007 Q1 z Higher seasonal costs and lower Revenues $211 $233 sales of non-strategic timberlands adversely affected earnings Contribution to Pre-Tax Earnings $142 $175 z Changed the method of accounting f
Slide 9: Segment Highlights — Wood Products
Chart 6 Segment Highlights — Wood Products 2nd Quarter Highlights Wood Products ($ Millions) 2007 Q2 2007 Q1 z Lumber, plywood and OSB prices Revenues $1,662 $1,470 increased slightly, but market conditions remained difficult Contribution to Pre-Tax Earnings ($123) ($167) 3rd-Party OSB and Lumber Sa
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 $/Unit 500 2600 450 Lumber ($/MBF) 2400 407 406 2235 2228 Solid Section ($/CCF) 400 2148 371 359 2200 2090 2080 346 2008 350 335 2000 300 287 1800 250 255 1600 TJI’s ($/MLF) 200 20
Slide 11: Segment Highlights — Cellulose Fibers
Chart 8 Segment Highlights — Cellulose Fibers 2nd Quarter Highlights Cellulose Fibers ($ Millions) 2007 Q2 2007 Q1 z Prices continued to increase Revenues $470 $482 z Pulp shipment volumes were down due to the 2007 Q1 completion of the Contribution to Pre-Tax Earnings $48 $22 Domtar transaction 3rd-
Slide 12: Segment Highlights — Containerboard, Packaging & Recycling
Chart 9 Segment Highlights — Containerboard, Packaging & Recycling 2nd Quarter Highlights Containerboard, Packaging & 2007 Q2 2007 Q1 z Average packaging price Recycling ($ Millions) realizations increased due to Revenues $1,327 $1,226 product mix, but fiber costs remained high Contribution to Pre-T
Slide 13: Average 3rd-Party Realizations — Containerboard and Packaging
Chart 10 Average 3rd-Party Realizations — Containerboard and Packaging Containerboard Packaging (Box) $/Ton $/MSF 500 57 56 475 473 55 469 461 55.02 450 54 455 54.14 53.88 443 53 53.52 425 52 52.28 51 400 50 389 49.65 375 49 48 350 47 325 46 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2006 2007 2006 2007 DT
Slide 14: Segment Highlights — Real Estate and Related Assets
Chart 11 Segment Highlights — Real Estate and Related Assets 2nd Quarter Highlights Real Estate & Related Assets 2007 Q2 2007 Q1 ($ Millions) z Market conditions remained challenging and margins continued Revenues $559 $487 to decline z Earnings included a gain of $42MM Contribution to Pre-Tax Earni
Slide 15: Key Changes in Earnings per Share
Key Changes in Earnings per Share Chart 12 2007 Q1 vs. 2007 Q2 $ per Share Before Special Items1 $0.70 $0.60 0.06 $0.50 0.48 0.19 (0.00) (0.03) $0.40 $0.30 0.06 0.20 $0.20 $0.10 $0.00 2007 Q1 Volume Price/Mix Mfg. Cost Real Estate & Other 2007 Q2 Before Special Related Before Special Items Items 1.
Slide 16: 2007 3Q Outlook
Chart 13 2007 3Q Outlook Segment Comments z Non-strategic timberland sales are expected to be higher in 2007 Q3 compared to 2007 Q2 Timberlands z Continued weakness in the housing market is expected to result in lower volumes and prices z It is expected that the segment will operate at a smaller los
Slide 17: Appendix
Appendix DTP/3065 2007 Q2.ppt • 0703/07 • 17
Slide 18: 2007 Q2 Earnings Summary
Chart 14 2007 Q2 Earnings Summary $ Millions except EPS 2006 2007 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Timberlands $198 $224 $178 $168 $175 $142 Wood Products 117 132 (46) (186) (108) (73) Cellulose Fibers (5) 23 66 56 22 48 Fine Paper (10) (9) 72 61 22 0 Containerboard, P
Slide 19: Earnings per Share Reconciliation
Chart 15 Earnings per Share Reconciliation 2006 2007 Q1 Q2 Q3 Q4 Q1 Q2 Diluted EPS before Special Items $0.64 $1.09 $0.95 $0.92 $0.20 $0.48 Gain (Loss) on Domtar Transaction 3.24 (0.02) Net Gain on Sale of Assets and Operations 0.13 0.18 0.06 Charges for Closure and Impairments (3.02) (0.04) (0.21)
Slide 20: Weyerhaeuser Real Estate Company Key Indicators
Chart 16 Weyerhaeuser Real Estate Company Key Indicators 2005 2006 2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Sales Traffic (in thousands) 64 90 90 63 72 62 53 45 61 49 Single-Family Homes Sold 1,378 1,525 1,608 1,174 1,472 1,325 906 838 1,684 1,139 Cancellation Rate (%) 15% 12% 17% 22% 19% 26% 36% 36% 16%