Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q4 2008 Earnings Presentation
16 slides from Weyerhaeuser's earnings presentation, Feb 6, 2009
Slide 1: Earnings Release 4th Quarter 2008
Earnings Release 4th Quarter — 2008 Weyerhaeuser Company February 6, 2009 3065 2008 Q4.ppt • 02/05/2009• 1
Slide 2: Forward-looking Statement
Forward-looking Statement This news release 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 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: 2008 Q4 Consolidated Results
Chart 1 2008 Q4 Consolidated Results 2008 Q4 $ Millions except EPS 2008 2008 Contribution to Pre-Tax Earnings before Special Q3 Q4 Revenues ($ Millions) $1,777 Items Timberlands 2. $107 $62 Net Earnings before Special Items ($ Millions) 1. ($209) Wood Products (109) (199) Cellulose Fibers 78 65 Dilu
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 $0.80 $0.55 $0.60 $0.48 $0.42 $0.40 $0.20 $0.20 $0.03 $0.00 -$0.01 -$0.20 -$0.40 -$0.24 -$0.60 -$0.80 -$1.00 -$0.99 -$1.20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 3065 2008 Q4.ppt • 02
Slide 6: Reconciliation to GAAP
Chart 3 Reconciliation to GAAP $ Millions except EPS Diluted EPS Net Earnings 2008 2008 2008 2008 Q3 Q4 Q3 Q4 Diluted EPS / Net Earnings before Special Items ($0.01) ($0.99) ($3) ($209) Impairment of Goodwill (0.00) (3.91) 0 (827) Real Estate Related Charges (0.69) (1.48) (144) (313) Ownership Restr
Slide 7: Changes in Contribution to Earnings by Segment
Chart 4 Changes in Contribution to Earnings by Segment Earnings Before Special Items, Interest and Taxes ($ millions)1. $50 17 $0 -$50 (45) -$100 (90) -$150 (13) (8) -$200 (62) (12) (213) -$250 2008 Q3 Timberlands Wood Cellulose Container- Real Estate Corp & Other 2008 Q4 Products Fibers board Packa
Slide 8: Timberlands Segment
Chart 5 Timberlands Segment Timberlands ($ Millions) 2008 Q3 2008 Q4 4th Quarter Notes z Lower sales of non-strategic timberlands Third Party Revenues $254 $224 z Reduced fee harvest volumes Inter-Segment Revenues $253 $213 z Included losses related to international operations of $10 million in the
Slide 9: Wood Products Segment
Chart 6 Wood Products Segment 4th Quarter Notes z Included charges of $733 million for impairment of Wood Products ($ Millions) 2008 Q3 2008 Q4 goodwill and $28 million for closures, restructuring and impairment of other intangible assets Revenues $1,006 $725 z Significantly lower prices for lumber
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 $/Unit 500 2400 450 2200 2080 2008 Solid Section ($/CCF) 400 Lumber ($/MBF) 1947 1939 359 2000 1868 346 351 1853 1813 350 322 329 1757 310 1800 300 287 281 1600 250 TJI’s ($/MLF) O
Slide 11: Cellulose Fibers Segment
Chart 8 Cellulose Fibers Segment 4th Quarter Notes Cellulose Fibers ($ Millions) 2008 Q3 2008 Q4 z Included charges of $94 million for impairment of goodwill Revenues $447 $413 z Lower pulp price realizations z Reduced shipment volumes Contribution to Pre-Tax Earnings $78 ($29) z Lower capacity util
Slide 12: Real Estate Segment
Chart 9 Real Estate Segment 4th Quarter Notes Real Estate ($ Millions) 2008 Q3 2008 Q4 z Asset impairments were $474 million in the 4th quarter compared to $235 million in the 3rd quarter Revenues $329 $354 z Included a loss of $130 million on land sales in the 4th quarter compared to an $87 million
Slide 13: 2009 Q1 Outlook
Chart 10 2009 Q1 Outlook Segment Comments z Fee harvest volume is expected to decrease. z A decline in export logs prices is anticipated, and domestic realizations are likely to remain weak. Timberlands z We expect somewhat lower fuel and salvage costs. z Weyerhaeuser expects 2009 Q1 earnings to be
Slide 14: Appendix
Appendix 3065 2008 Q4.ppt • 02/05/2009• 14
Slide 15: 2008 Q4 Earnings Summary
Chart 11 2008 Q4 Earnings Summary $ Millions except EPS 2007 2008 Contribution to Earnings before Special Items Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revised 4. Timberlands 6. $175 $141 $165 $129 $112 $102 $107 $62 Wood Products (108) (73) (109) (210) (203) (131) (109) (199) Cellulose Fibers 22 48 81 80 56 43 78
Slide 16: Earnings per Share Reconciliation
Chart 12 Earnings per Share Reconciliation 2007 2008 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revised 1. Diluted EPS before Special Items $0.20 $0.48 $0.55 $0.42 ($0.24) $0.03 ($0.01) ($0.99) Closures, Restructuring and Impairment of Weyerhaeuser Assets (0.20) (0.09) (0.16) (0.37) (0.19) (0.20) (0.16) (0.15) Real Es