Weyerhaeuser Reports Third Quarter Results

- Achieved net earnings of $482 million, or $0.64 per diluted share

SEATTLE, Oct. 29, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $482 million, or 64 cents per diluted share, on net sales of $2.3 billion. This compares with net earnings of $283 million, or 38 cents per diluted share, on net sales of $2.1 billion for the same period last year.

Weyerhaeuser Company logo. (PRNewsFoto/Weyerhaeuser Company)

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Excluding an after-tax benefit of $32 million for special items related to a gain on the sale of timberlands, the company reported third quarter net earnings of $450 million, or 60 cents per diluted share. This compares with net earnings before special items of $386 million for the same period last year and $1.0 billion for the second quarter of 2021.

Adjusted EBITDA for the third quarter of 2021 was $746 million compared with $745 million for the same period last year and $1.6 billion for the second quarter of 2021.

"In the third quarter, we delivered strong results across each of our businesses despite weather-related operational disruptions, continued supply chain challenges and the ongoing pandemic," said Devin W. Stockfish, president and chief executive officer. "Our teams did an exceptional job navigating these headwinds and I'm extremely proud of their collective focus on operating safely, strong execution and continuing to serve our customers. Year to date, we have generated more than $3.4 billion of Adjusted EBITDA and $2.4 billion of Adjusted Funds Available for Distribution. We expect this record cash flow generation to result in a significant supplemental dividend payment to shareholders in the first quarter of 2022. We are bullish on the underlying demand fundamentals for U.S. housing and growth opportunities for our businesses and remain intently focused on delivering superior shareholder value."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2021


2021


2020

(millions, except per share data)


Q2


Q3


Q3

Net sales


$3,144


$2,345


$2,110

Net earnings


$1,028


$482


$283

Net earnings per diluted share


$1.37


$0.64


$0.38

Weighted average shares outstanding, diluted


752


751


748

Net earnings before special items(1)(2)


$1,028


$450


$386

Net earnings per diluted share before special items(1)


$1.37


$0.60


$0.52

Adjusted EBITDA(1)


$1,573


$746


$745

Net cash from operations


$1,308


$659


$608

Adjusted FAD(3)


$1,236


$561


$543



(1)

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.



(2)

Third quarter 2021 after-tax special items includes a $32 million gain on the sale of timberlands. Special items for prior periods presented are included in the reconciliation tables within this release.



(3)

Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q2


Q3


Change

Net sales


$541


$552


$11

Net contribution to pretax earnings


$113


$133


$20

Pretax benefit for special items


$—


($32)


($32)

Net contribution to pretax earnings before special items


$113


$101


($12)

Adjusted EBITDA


$180


$165


($15)

Q3 2021 Performance – In the West, fee harvest volumes were modestly lower than the second quarter due to continued salvage operations and harvest restrictions resulting from regional wildfire activity. Per unit log and haul costs increased as Western harvest activity shifted to higher elevation units. Export sales realizations were moderately higher, driven by strong demand. In the South, sales realizations for sawlogs and fiber logs improved and fee harvest volumes increased slightly, but harvest activity was affected by persistent wet conditions and weather events. Per unit log and haul costs and forestry and road costs were slightly higher.  

Third quarter special items consist of a $32 million gain on the previously announced sale of 145 thousand acres of timberlands in the North Cascades region of Washington, which was completed in July.

Q4 2021 Outlook – Weyerhaeuser expects fourth quarter earnings and Adjusted EBITDA will be comparable to the third quarter. In the West, the company expects moderately higher fee harvest volumes and lower per unit log and haul costs, as salvage-related harvest will decrease. Domestic sales realizations are expected to be moderately lower compared to the third quarter. In the South, the company expects slightly higher fee harvest volumes due to improving weather conditions as well as slightly higher sales realizations as mills rebuild from lower than normal inventory levels. This is expected to be offset by slightly higher per unit log and haul costs as well as moderately higher forestry and road costs.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q2


Q3


Change

Net sales


$110


$69


($41)

Net contribution to pretax earnings


$63


$45


($18)

Adjusted EBITDA


$91


$60


($31)

Q3 2021 Performance – Earnings and Adjusted EBITDA decreased from the second quarter due to lower real estate sales. The number of real estate acres sold decreased due to the timing of real estate transactions, partially offset by an increase in the average price per acre due to the mix of properties sold.

Q4 2021 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be significantly lower than the third quarter due to the timing of transactions. The company still expects full year 2021 Adjusted EBITDA will be approximately $290 million, although basis as a percentage of real estate sales is now expected to be 25 to 30 percent for the full year.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q2


Q3


Change

Net sales


$2,629


$1,853


($776)

Net contribution to pretax earnings


$1,338


$517


($821)

Adjusted EBITDA


$1,386


$565


($821)

Q3 2021 Performance – Sales realizations for lumber and oriented strand board decreased 52 percent and 24 percent, respectively, compared with second quarter averages. Sales volumes for lumber increased moderately due to improvement in home center takeaway, partially offset by weather-related downtime. Oriented strand board production and sales volumes were modestly higher due to less downtime for planned maintenance. Sales realizations improved significantly across most engineered wood products, and the company continued to benefit from previously announced price increases for solid section and I-joist products. Raw material costs for Wood Products increased, primarily for oriented strand board webstock, resin and veneer.

Q4 2021 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be higher than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. The company expects higher sales volumes, primarily for oriented strand board, as well as improved manufacturing costs due to lower planned maintenance downtime. Raw material costs are expected to be lower, primarily for oriented strand board webstock.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on October 29, 2021 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 29, 2021.

To join the conference call from within North America, dial 877-407-0792 (access code: 13714049) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714049). Replays will be available for two weeks at 844-512-2921 (access code: 13714049) from within North America, and at 412-317-6671 (access code: 13714049) from outside North America.

FORWARD-LOOKING STATEMENTS

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, including, but not limited to, with respect to our outlook and expectations concerning the following: fourth quarter earnings and Adjusted EBITDA for each of our businesses and full-year Adjusted EBITDA for our Real Estate, Energy & Natural Resources business; log sales realizations; forestry and road costs; log and haul costs; fee harvest volumes, including salvage-related harvest activity; basis as a percentage of real estate sales; raw materials costs for our Wood Products business; the amount of manufacturing downtime due to scheduled maintenance; average sales realizations for our lumber and oriented strand board products; sales volumes for oriented strand board and sales realizations for our lumber and oriented strand board product lines. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words such as "anticipate," "expect," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

  • the effect of general economic conditions, including employment rates, interest rate levels, inflation, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
  • the effect of COVID-19 and other viral or disease outbreaks, including but not limited to any related regulatory restrictions or requirements, and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
  • market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
  • changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
  • restrictions on international trade and tariffs imposed on imports or exports;
  • the availability and cost of shipping and transportation;
  • economic activity in Asia, especially Japan and China;
  • performance of our manufacturing operations, including maintenance and capital requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
  • the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
  • raw material availability and prices;
  • the effect of weather;
  • changes in global or regional climate conditions and governmental response to such changes;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • transportation and labor availability and costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of employee retirements and changes in the market price of our common stock on charges for share-based compensation;
  • the accuracy of our estimates of costs and expenses related to contingent liabilities and the accuracy of our estimates of charges related to casualty losses;
  • changes in accounting principles; and
  • other risks and uncertainties identified in our 2020 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

For more information contact:
Analysts - Andy Taylor  |  206-539-3907
Media - Nancy Thompson  |  919-861-0342

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2021:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$1,028

Interest expense, net of capitalized interest










78

Income taxes










324

Net contribution (charge) to earnings


$113


$63


$1,338


$(84)


$1,430

Non-operating pension and other post-employment benefit costs





1


1

Interest income and other





(2)


(2)

Operating income (loss)


113


63


1,338


(85)


1,429

Depreciation, depletion and amortization


67


4


48


1


120

Basis of real estate sold



24




24

Adjusted EBITDA


$180


$91


$1,386


$(84)


$1,573

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2021:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$482

Interest expense, net of capitalized interest










79

Income taxes










84

Net contribution (charge) to earnings


$133


$45


$517


$(50)


$645

Non-operating pension and other post-employment benefit costs





5


5

Interest income and other





(1)


(1)

Operating income (loss)


133


45


517


(46)


649

Depreciation, depletion and amortization


64


4


48


2


118

Basis of real estate sold



11




11

Special items included in operating income (loss)(1)


(32)





(32)

Adjusted EBITDA


$165


$60


$565


$(44)


$746



(1)

Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands.

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2020:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$283

Interest expense, net of capitalized interest(1)










111

Income taxes










109

Net contribution (charge) to earnings


$(11)


$17


$566


$(69)


$503

Non-operating pension and other post-employment benefit costs





9


9

Interest income and other





(2)


(2)

Operating income (loss)


(11)


17


566


(62)


510

Depreciation, depletion and amortization


61


3


49


2


115

Basis of real estate sold



40




40

Special items included in operating income (loss)(2)


80





80

Adjusted EBITDA


$130


$60


$615


$(60)


$745



(1)

Interest expense, net of capitalized interest includes a pretax special item consisting of a $23 million charge related to the early extinguishment of $325 million of 3.25 percent notes due March 2023.

(2)

Operating income (loss) includes a pretax special item consisting of an $80 million timber casualty loss.

The table below reconciles Adjusted EBITDA for the year-to-date period ended September 30, 2021:

(millions)


Timberlands


Real Estate

& ENR


Wood

Products


Unallocated

Items


Total

Adjusted EBITDA by Segment:











Net earnings










$2,191

Interest expense, net of capitalized interest










236

Income taxes










597

Net contribution (charge) to earnings


$354


$174


$2,695


$(199)


$3,024

Non-operating pension and other post-employment benefit costs





14


14

Interest income and other





(4)


(4)

Operating income (loss)


354


174


2,695


(189)


3,034

Depreciation, depletion and amortization


195


11


145


5


356

Basis of real estate sold



62




62

Special items included in operating income (loss)(1)


(32)





(32)

Adjusted EBITDA


$517


$247


$2,840


$(184)


$3,420



(1)

Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands.           

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings:



2021


2021


2020

(millions)


Q2


Q3


Q3

Net earnings


$1,028


$482


$283

Early extinguishment of debt charge




23

Gain on sale of timberlands



(32)


Timber casualty loss




80

Net earnings before special items


$1,028


$450


$386

The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:



2021


2021


2020



Q2


Q3


Q3

Net earnings per diluted share


$1.37


$0.64


$0.38

Early extinguishment of debt charge




0.03

Gain on sale of timberlands



(0.04)


Timber casualty loss




0.11

Net earnings per diluted share before special items


$1.37


$0.60


$0.52

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.

The table below reconciles Adjusted FAD to net cash from operations:



2021


2021


2020


2021

(millions)


Q2


Q3


Q3


Q3 YTD

Net cash from operations


$1,308


$659


$608


$2,665

Capital expenditures


(72)


(98)


(65)


(223)

Adjustments to FAD





Adjusted FAD


$1,236


$561


$543


$2,442

                                                                               

Exhibit 99.2

Weyerhaeuser Company 
Q3.2021 Analyst Package        
Preliminary results (unaudited)  


Consolidated Statement of Operations





Q1



Q2



Q3



Year-to-Date


in millions


March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Net sales


$

2,506



$

3,144



$

2,345



$

2,110



$

7,995



$

5,469


Costs of sales



1,430




1,583




1,589




1,390




4,602




4,055


Gross margin



1,076




1,561




756




720




3,393




1,414


Selling expenses



20




24




24




22




68




62


General and administrative expenses



90




95




98




96




283




254


Other operating costs (income), net



10




13




(15)




92




8




105


Operating income



956




1,429




649




510




3,034




993


Non-operating pension and other post-employment benefit costs



(8)




(1)




(5)




(9)




(14)




(28)


Interest income and other



1




2




1




2




4




5


Interest expense, net of capitalized interest



(79)




(78)




(79)




(111)




(236)




(299)


Earnings before income taxes



870




1,352




566




392




2,788




671


Income taxes



(189)




(324)




(84)




(109)




(597)




(166)


Net earnings


$

681



$

1,028



$

482



$

283



$

2,191



$

505





Per Share Information





Q1



Q2



Q3



Year-to-Date




March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Earnings per share, basic and diluted


$

0.91



$

1.37



$

0.64



$

0.38



$

2.92



$

0.68


Dividends paid per common share


$

0.17



$

0.17



$

0.17



$



$

0.51



$

0.34


Weighted average shares outstanding (in thousands):

























Basic



748,718




750,127




750,105




746,996




749,657




746,809


Diluted



750,024




751,508




751,443




748,450




750,999




747,530


Common shares outstanding at end of period (in thousands)



748,751




749,782




749,037




746,398




749,037




746,398





Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)





Q1



Q2



Q3



Year-to-Date


in millions


March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Net earnings


$

681



$

1,028



$

482



$

283



$

2,191



$

505


Non-operating pension and other post-employment benefit costs



8




1




5




9




14




28


Interest income and other



(1)




(2)




(1)




(2)




(4)




(5)


Interest expense, net of capitalized interest



79




78




79




111




236




299


Income taxes



189




324




84




109




597




166


Operating income



956




1,429




649




510




3,034




993


Depreciation, depletion and amortization



118




120




118




115




356




355


Basis of real estate sold



27




24




11




40




62




136


Special items included in operating income









(32)




80




(32)




60


Adjusted EBITDA(1)


$

1,101



$

1,573



$

746



$

745



$

3,420



$

1,544




(1)  

Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Total Company Statistics

Weyerhaeuser Company 
Q3.2021 Analyst Package
Preliminary results (unaudited)


Special Items Included in Net Earnings (Income Tax Affected)





Q1



Q2



Q3



Year-to-Date


in millions


March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Net earnings


$

681



$

1,028



$

482



$

283



$

2,191



$

505


Early extinguishment of debt charges(1)












23







34


Gain on sale of timberlands









(32)







(32)





Legal benefit


















(12)


Product remediation recovery


















(6)


Timber casualty loss












80







80


Net earnings before special items(2)


$

681



$

1,028



$

450



$

386



$

2,159



$

601






Q1



Q2



Q3



Year-to-Date




March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Net earnings per diluted share


$

0.91



$

1.37



$

0.64



$

0.38



$

2.92



$

0.68


Early extinguishment of debt charges(1)












0.03







0.05


Gain on sale of timberlands









(0.04)







(0.04)





Legal benefit


















(0.02)


Product remediation recovery


















(0.01)


Timber casualty loss












0.11







0.11


Net earnings per diluted share before special items(2)


$

0.91



$

1.37



$

0.60



$

0.52



$

2.88



$

0.81




(1)  

We recorded pretax charges of $11 million ($11 million after-tax) and $23 million ($23 million after-tax) related to the early extinguishment of debt in second quarter 2020 and third quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

(2)  

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Selected Total Company Items





Q1



Q2



Q3



Year-to-Date


in millions


March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Pension and post-employment costs:

























Pension and post-employment service costs


$

11



$

10



$

11



$

9



$

32



$

27


Non-operating pension and other post-employment benefit costs



8




1




5




9




14




28


Total company pension and post-employment costs


$

19



$

11



$

16



$

18



$

46



$

55


 


Weyerhaeuser Company
Q3.2021 Analyst Package
Preliminary results (unaudited)


Consolidated Balance Sheet


in millions


March 31,

2021



June 30,

2021



September 30,

2021



December 31,

2020


ASSETS

















Current assets:

















Cash and cash equivalents


$

1,016



$

1,777



$

2,326



$

495


Receivables, net



589




702




497




450


Receivables for taxes



7




7




72




82


Inventories



505




499




499




443


Assets held for sale






229








Prepaid expenses and other current assets



141




141




146




139


Total current assets



2,258




3,355




3,540




1,609


Property and equipment, net



1,971




1,965




1,924




2,013


Construction in progress



91




102




169




73


Timber and timberlands at cost, less depletion



11,776




11,643




11,606




11,827


Minerals and mineral rights, less depletion



265




262




258




268


Deferred tax assets



106




71




52




120


Other assets



407




432




543




401


Total assets


$

16,874



$

17,830



$

18,092



$

16,311



















LIABILITIES AND EQUITY

















Current liabilities:

















Current maturities of long-term debt


$

150



$

150



$

150



$

150


Accounts payable



236




253




264




204


Accrued liabilities



549




775




1,110




596


Total current liabilities



935




1,178




1,524




950


Long-term debt, net



5,325




5,100




5,100




5,325


Deferred tax liabilities



26




42




28




24


Deferred pension and other post-employment benefits



893




747




711




911


Other liabilities



367




363




360




370


Total liabilities



7,546




7,430




7,723




7,580


Total equity



9,328




10,400




10,369




8,731


Total liabilities and equity


$

16,874



$

17,830



$

18,092



$

16,311


 

Weyerhaeuser Company
Q3.2021 Analyst Package
Preliminary results (unaudited)


Consolidated Statement of Cash Flows




Q1



Q2



Q3



Year-to-Date


in millions


March 31,

2021



June 30,

2021



Sept 30,

2021



Sept 30,

2020



Sept 30,

2021



Sept 30,

2020


Cash flows from operations:

























Net earnings


$

681



$

1,028



$

482



$

283



$

2,191



$

505


Noncash charges (credits) to earnings:

























Depreciation, depletion and amortization



118




120




118




115




356




355


Basis of real estate sold



27




24




11




40




62




136


Deferred income taxes, net



8




11




(3)




22




16




20


Pension and other post-employment benefits



19




11




16




18




46




55


Share-based compensation expense



7




8




8




7




23




22


Timber casualty loss












80







80


Gain on sale of timberlands









(32)







(32)





Change in:

























Receivables, net



(139)




(113)




205




(80)




(47)




(192)


Receivables and payables for taxes



120




116




(143)




42




93




103


Inventories



(60)




9




(4)







(55)




2


Prepaid expenses and other current assets



(2)




1




(20)







(21)




5


Accounts payable and accrued liabilities



(60)




125




51




64




116




3


Pension and post-employment benefit contributions and payments



(8)




(25)




(23)




(5)




(56)




(21)


Other



(13)




(7)




(7)




22




(27)




12


Net cash from operations


$

698



$

1,308



$

659



$

608



$

2,665



$

1,085


Cash flows from investing activities:

























Capital expenditures for property and equipment


$

(31)



$

(62)



$

(91)



$

(56)



$

(184)



$

(158)


Capital expenditures for timberlands reforestation



(22)




(10)




(7)




(9)




(39)




(41)


Acquisition of Alabama timberlands






(149)










(149)





Proceeds from note receivable held by variable interest entities


















362


Proceeds from sale of timberlands









261







261




145


Other






1




2







3




3


Net cash from investing activities


$

(53)



$

(220)



$

165



$

(65)



$

(108)



$

311


Cash flows from financing activities:

























Cash dividends on common shares


$

(127)



$

(128)



$

(127)



$



$

(382)



$

(254)


Net proceeds from issuance of long-term debt


















732


Payments on long-term debt






(225)







(348)




(225)




(936)


Proceeds from borrowings on line of credit


















550


Payments on line of credit


















(780)


Proceeds from exercise of stock options



17




28




1




3




46




9


Repurchases of common shares









(26)







(26)





Other



(14)




(2)




(3)




(1)




(19)




(16)


Net cash from financing activities


$

(124)



$

(327)



$

(155)



$

(346)



$

(606)



$

(695)



























Net change in cash, cash equivalents and restricted cash


$

521



$

761



$

669



$

197



$

1,951



$

701


Cash, cash equivalents and restricted cash at beginning of period



495




1,016




1,777




643




495




139


Cash, cash equivalents and restricted cash at end of period


$

1,016



$

1,777



$

2,446



$

840



$

2,446



$

840



























Cash paid (received) during the period for:

























Interest, net of amounts capitalized


$

75



$

79



$

83



$

100



$

237



$

278


Income taxes, net of refunds


$

66



$

197



$

231



$

45



$

494



$

46


 

Timberlands Segment

Weyerhaeuser Company  
Q3.2021 Analyst Package
Preliminary results (unaudited)


Segment Statement of Operations



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Sales to unaffiliated customers


$

379



$

405



$

423



$

345



$

1,207



$

1,085


Intersegment sales



134




136




129




107




399




350


Total net sales



513




541




552




452




1,606




1,435


Costs of sales



383




407




428




358




1,218




1,116


Gross margin



130




134




124




94




388




319


Selling expenses









1







1




1


General and administrative expenses



23




23




23




24




69




70


Other operating costs (income), net



(1)




(2)




(33)




81




(36)




79


Operating income (loss) and Net contribution (charge) to earnings


$

108



$

113



$

133



$

(11)



$

354



$

169




Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Operating income (loss)


$

108



$

113



$

133



$

(11)



$

354



$

169


Depreciation, depletion and amortization



64




67




64




61




195




194


Special items









(32)




80




(32)




80


Adjusted EBITDA(1)


$

172



$

180



$

165



$

130



$

517



$

443



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Segment Special Items Included in Net Contribution (Charge) to Earnings (Pretax)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Gain on sale of timberlands


$



$



$

32



$



$

32



$


Timber casualty loss


$



$



$



$

(80)



$



$

(80)




Selected Segment Items



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Total decrease (increase) in working capital(2)


$

(13)



$

2



$

1



$

43



$

(10)



$

38


Cash spent for capital expenditures(3)


$

(28)



$

(21)



$

(27)



$

(24)



$

(76)



$

(75)



(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

(3) Does not include cash spent for the acquisition of timberlands.

 

Segment Statistics(4)






Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Third Party


Delivered logs:
























Net Sales


West

$

201



$

222



$

226



$

163



$

649



$

519


(millions)


South


131




145




153




141




429




436




North


16




9




13




13




38




37




Total delivered logs


348




376




392




317




1,116




992




Stumpage and pay-as-cut timber


6




7




9




5




22




15




Recreational and other lease revenue


16




16




16




16




48




47




Other revenue


9




6




6




7




21




31




Total

$

379



$

405



$

423



$

345



$

1,207



$

1,085


Delivered Logs


West

$

130.69



$

137.80



$

145.64



$

109.01



$

138.06



$

106.16


Third Party Sales


South

$

34.50



$

35.11



$

35.56



$

33.68



$

35.08



$

33.88


Realizations (per ton)


North

$

62.83



$

74.88



$

64.93



$

57.19



$

65.97



$

59.15


Delivered Logs


West


1,539




1,608




1,555




1,489




4,702




4,887


Third Party Sales


South


3,782




4,150




4,304




4,185




12,236




12,857


Volumes (tons, thousands)


North


261




115




195




234




571




631


Fee Harvest Volumes


West


2,101




2,099




1,930




1,911




6,130




6,457


(tons, thousands)


South


5,376




5,856




5,912




5,596




17,144




17,640




North


337




199




264




321




800




901




(4)

Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company 
Q3.2021 Analyst Package
Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Net sales


$

106



$

110



$

69



$

69



$

285



$

246


Costs of sales



34




41




18




46




93




156


Gross margin



72




69




51




23




192




90


General and administrative expenses



6




6




6




6




18




18


Operating income and Net contribution to earnings


$

66



$

63



$

45



$

17



$

174



$

72




Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Operating income


$

66



$

63



$

45



$

17



$

174



$

72


Depreciation, depletion and amortization



3




4




4




3




11




10


Basis of real estate sold



27




24




11




40




62




136


Adjusted EBITDA(1)


$

96



$

91



$

60



$

60



$

247



$

218



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Selected Segment Items



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Cash spent for capital expenditures


$



$



$



$



$



$



























 

Segment Statistics





Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Net Sales

Real Estate


$

84



$

83



$

45



$

49



$

212



$

192


(millions)

Energy and Natural Resources



22




27




24




20




73




54



Total


$

106



$

110



$

69



$

69



$

285



$

246


Acres Sold

Real Estate



19,455




18,415




11,037




34,917




48,907




111,228


Price per Acre

Real Estate


$

3,803



$

3,227



$

4,005



$

1,381



$

3,632



$

1,662


Basis as a Percent of

Real Estate Net Sales

Real Estate



32

%



29

%



24

%



82

%



29

%



71

%

 

Wood Products Segment

Weyerhaeuser Company 
Q3.2021 Analyst Package
Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Net sales


$

2,021



$

2,629



$

1,853



$

1,696



$

6,503



$

4,138


Costs of sales



1,124




1,229




1,270




1,075




3,623




3,112


Gross margin



897




1,400




583




621




2,880




1,026


Selling expenses



19




21




21




18




61




57


General and administrative expenses



35




35




34




33




104




102


Other operating costs, net



3




6




11




4




20




8


Operating income and Net contribution to earnings


$

840



$

1,338



$

517



$

566



$

2,695



$

859




Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Operating income


$

840



$

1,338



$

517



$

566



$

2,695



$

859


Depreciation, depletion and amortization



49




48




48




49




145




146


Special items


















(8)


Adjusted EBITDA(1)


$

889



$

1,386



$

565



$

615



$

2,840



$

997



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Segment Special Items Included in Net Contribution to Earnings (Pretax)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Product remediation recovery


$



$



$



$



$



$

8




























Selected Segment Items



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Total decrease (increase) in working capital(2)


$

(212)



$

(49)



$

249



$

(68)



$

(12)



$

(198)


Cash spent for capital expenditures


$

(25)



$

(51)



$

(70)



$

(41)



$

(146)



$

(124)



(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

Segment Statistics


in millions, except for third party sales realizations


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Structural Lumber

Third party net sales


$

990



$

1,349



$

681



$

819



$

3,020



$

1,865


(volumes presented

Third party sales realizations


$

864



$

1,077



$

516



$

674



$

812



$

509


in board feet)

Third party sales volumes(3)



1,145




1,252




1,320




1,216




3,717




3,663



Production volumes



1,211




1,234




1,222




1,170




3,667




3,487


Oriented Strand

Third party net sales


$

438



$

605



$

470



$

290



$

1,513



$

659


Board

Third party sales realizations


$

614



$

911



$

691



$

395



$

735



$

293


(volumes presented

Third party sales volumes(3)



714




663




681




736




2,058




2,253


in square feet 3/8")

Production volumes



742




683




715




759




2,140




2,278


Engineered Solid

Third party net sales


$

142



$

166



$

183



$

135



$

491



$

373


Section

Third party sales realizations


$

2,285



$

2,533



$

3,092



$

2,128



$

2,628



$

2,142


(volumes presented

Third party sales volumes(3)



6.2




6.6




5.9




6.3




18.7




17.4


in cubic feet)

Production volumes



6.0




6.2




5.8




5.4




18.0




16.8


Engineered

Third party net sales


$

83



$

104



$

128



$

83



$

315



$

231


I-joists

Third party sales realizations


$

1,773



$

1,980



$

2,600



$

1,638



$

2,119



$

1,650


(volumes presented

Third party sales volumes(3)



47




53




49




51




149




140


in lineal feet)

Production volumes



44




51




49




43




144




128


Softwood Plywood

Third party net sales


$

56



$

69



$

45



$

55



$

170



$

128


(volumes presented

Third party sales realizations


$

594



$

902



$

653



$

507



$

710



$

405


in square feet 3/8")

Third party sales volumes(3)



94




77




69




107




240




315



Production volumes



80




62




61




94




203




267


Medium Density

Third party net sales


$

48



$

43



$

52



$

47



$

143



$

124


Fiberboard

Third party sales realizations


$

842



$

869



$

943



$

864



$

885



$

845


(volumes presented

Third party sales volumes(3)



57




50




55




55




162




147


in square feet 3/4")

Production volumes



56




52




55




57




163




148




(3) 

Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.


 

Unallocated Items

Weyerhaeuser Company 
Q3.2021 Analyst Package
Preliminary results (unaudited)


Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.


Net Charge to Earnings


in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Unallocated corporate function and variable compensation expense


$

(25)



$

(36)



$

(33)



$

(36)



$

(94)



$

(78)


Liability classified share-based compensation



(1)







(1)




(5)




(2)




1


Foreign exchange gain (loss)



(2)




(1)




5




2




2




(3)


Elimination of intersegment profit in inventory and LIFO



(17)




(28)




12




(9)




(33)




(4)


Other, net



(13)




(20)




(29)




(14)




(62)




(23)


Operating loss



(58)




(85)




(46)




(62)




(189)




(107)


Non-operating pension and other post-employment benefit costs



(8)




(1)




(5)




(9)




(14)




(28)


Interest income and other



1




2




1




2




4




5


Net charge to earnings


$

(65)



$

(84)



$

(50)



$

(69)



$

(199)



$

(130)




Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Operating loss


$

(58)



$

(85)



$

(46)



$

(62)



$

(189)



$

(107)


Depreciation, depletion and amortization



2




1




2




2




5




5


Special items


















(12)


Adjusted EBITDA(1)


$

(56)



$

(84)



$

(44)



$

(60)



$

(184)



$

(114)



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Unallocated Special Items Included in Net Charge to Earnings (Pretax)



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Legal benefit


$



$



$



$



$



$

12


Special items included in operating loss and net charge to earnings


$



$



$



$



$



$

12




Unallocated Selected Items



in millions


Q1.2021



Q2.2021



Q3.2021



Q3.2020



YTD.2021



YTD.2020


Cash spent for capital expenditures


$



$



$

(1)



$



$

(1)



$



























 

 

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