Weyerhaeuser Reports First Quarter Results
29.04.2011 | Business Wire
1Q 2011 4Q 2010 1Q 2010 TIMBERLANDS 1Q 2011 Performance ? First quarter earnings before special items 2Q 2011 Outlook ? Excluding the disposition of non-strategic WOOD PRODUCTS 1Q 2011 Performance ?The segment′s results before special items 2Q 2011 Outlook ? Weyerhaeuser anticipates a smaller loss from CELLULOSE FIBERS 1Q 2011 Performance ? First quarter earnings declined $52 million 2Q 2011 Outlook ? Weyerhaeuser expects higher earnings from the REAL ESTATE 1Q 2011 Performance ? Earnings before special items declined $34 2Q 2011 Outlook ? Weyerhaeuser anticipates a small profit from CORPORATE AND OTHER ABOUT WEYERHAEUSER EARNINGS CALL INFORMATION FORWARD-LOOKING STATEMENTS Weyerhaeuser common shareholders Assets Liabilities Equity
Weyerhaeuser Company (NYSE:WY) today reported net earnings of $99
million for the first quarter, or 18 cents per diluted share, on net
sales of $1.6 billion. This compares with a net loss of $20 million on
net sales of $1.4 billion for the same period last year.
Earnings for the first quarter of 2011 include an after-tax gain of $96
million on the previously announced sale of 82,000 acres of
non-strategic timberlands in southwest Washington. Excluding this
special item, the company reported net earnings of $3 million. This
compares to a net loss before special items of $15 million in the first
quarter of 2010.
'During the first quarter we continued to make progress in our drive to
improve our financial performance despite anemic housing market
conditions,? said Dan Fulton, president and chief executive officer. 'We
are leveraging our strength in the export markets to take advantage of
increased demand from Asia. Our businesses are running more efficiently
and our work to eliminate costs continues. We remain focused on making
further improvements to achieve our goal of delivering superior returns.?
WEYERHAEUSER FINANCIAL HIGHLIGHTS
(millions, except
per share data)
Net sales
$1,578
$1,664
$1,419
Net earnings (loss)
$99
$171
($20)
Weighted average shares outstanding, diluted
540
538
211
Earnings (loss) per diluted share
$0.18
$0.32
($0.10)
Net earnings (loss) before special items
$3
$52
($15)
Earnings (loss) per diluted share before special items
$0.00
$0.10
($0.07)
Weyerhaeuser′s outstanding shares increased substantially from the first
quarter of 2010 due to a special dividend of approximately 324 million
shares of common stock and $560 million in cash, paid on Sept. 1, 2010
in conjunction with the company′s conversion to a REIT.
FINANCIAL HIGHLIGHTS (millions) 1Q 2011 4Q 2010 Change
Net sales
$230
$207
$23
Contribution to pre-tax earnings before special items
$89
$56
$33
Pre-tax gain from special items
$152
$0
$152
GAAP contribution to pre-tax earnings
$241
$56
$185
increased $33 million compared with fourth quarter, as strong export
demand resulted in improved selling prices and volumes for western logs.
Fee harvest volumes increased, resulting in lower per unit logging
costs. These improvements were partially offset by higher fuel costs.
First quarter results include a pre-tax gain of $152 million from the
previously announced sale of 82,000 acres of non-strategic timberlands
located in southwest Washington.
timberlands,Weyerhaeuser expects slightly higher earnings in the
second quarter compared with the first. The company anticipates modestly
improved selling prices for western logs and higher harvest volumes to
be largely offset by higher fuel expenses and seasonally higher road and
silviculture costs.
FINANCIAL HIGHLIGHTS (millions) 1Q 2011 4Q 2010 Change
Net sales
$624
$572
$52
Charge to pre-tax earnings before special items
($36)
($85)
$49
Pre-tax gains (charges) from special items
$0
($103)
$103
GAAP charge to pre-tax earnings
($36)
($188)
$152
improved $49 million compared with the fourth quarter. Selling prices
increased across most product lines. Per unit manufacturing costs
declined due to continued cost reductions and improved operating rates
for lumber and oriented strand board. This was partially offset by
increased log costs.
Fourth quarter included special items of $103 million for asset
impairments, closures and restructuring.
the segment in the second quarter due to seasonally higher sales volumes
and improved operating rates.
FINANCIAL HIGHLIGHTS (millions) 1Q 2011 4Q 2010 Change
Net sales
$506
$511
($5)
Contribution to pre-tax earnings before special items
$86
$138
($52)
Pre-tax gains (charges) from special items
$0
$0
$0
GAAP contribution to pre-tax earnings
$86
$138
($52)
compared with fourth quarter. Average selling prices for pulp were
slightly lower. Maintenance costs increased and production declined as
the segment completed two planned annual maintenance outages in the
first quarter, compared with one in the fourth quarter. Chemical, energy
and fiber costs also increased.
Cellulose Fibers segment in the second quarter. The company anticipates
higher selling prices, partially offset by increased maintenance costs
due to an increase in the number of scheduled annual maintenance outages.
FINANCIAL HIGHLIGHTS (millions) 1Q 2011 4Q 2010 Change
Net sales
$160
$305
($145)
Contribution (charge) to pre-tax earnings before special items
($1)
$33
($34)
Pre-tax charges from special items
$0
($20)
$20
GAAP contribution (charge) to pre-tax earnings
($1)
$13
($14)
million compared with the fourth quarter due to seasonally fewer home
sale closings and lower margins. Home sale closings decreased 40 percent
compared with the fourth quarter to 363 single-family homes. Margins on
homes closed declined due to mix.
First quarter earnings included $1 million from the sale of land and
lots, compared with $6 million from sale of land, lots and apartments in
the fourth quarter.
Fourth quarter included special items of $20 million for asset
impairments and restructuring.
single-family homebuilding operations in the second quarter due to a
seasonal increase in home sale closings.
FINANCIAL HIGHLIGHTS (millions) 1Q 2011 4Q 2010 Change
Contribution (charge) to pre-tax earnings before special items
($41)
$2
($43)
Pre-tax gains from special items
$0
$39
($39)
GAAP contribution (charge) to pre-tax earnings
($41)
$41
($82)
Earnings before special items declined $43 million compared with the
fourth quarter, primarily due to non-cash pension and postretirement
charges and higher share-based compensation expense.
First quarter segment results included pension and postretirement
charges of $12 million, as the company amortized actuarial losses
deferred in prior years. Fourth quarter included pension and
postretirement credits of $19 million.
Share-based compensation expense for the segment increased $8 million
compared with the fourth quarter, primarily due to a larger
mark-to-market adjustment resulting from an increase in the company′s
stock price.
Fourth quarter special items of $39 million included a gain on the sale
of five short line railroads, partially offset by charges for
restructuring, closures and impairments.
Weyerhaeuser Company, one of the world's largest forest products
companies, began operations in 1900. We grow and harvest trees, build
homes and make a range of forest products essential to everyday lives.
We manage our timberland on a sustainable basis in compliance with
internationally recognized forestry standards. At the end of 2010, we
employed approximately 14,000 employees in 10 countries. We have
customers worldwide and generated $6.6 billion in sales in 2010. Our
stock trades on the New York Stock exchange under the symbol WY.
Additional information about us is available at http://www.weyerhaeuser.com.
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m.
Eastern) on April 29 to discuss first quarter results.
To access the conference call from within North America, dial
877-296-9413 (access code ? 29868744) at least 15 minutes prior to the
call. Those calling from outside North America should dial
1-706-679-2458 (access code ? 29868744). Replays will be available for
one week at 800-642-1687 (access code ? 29868744) from within North
America and at 1-706-645-9291 (access code ? 29868744) from outside
North America.
The call is being webcast through Weyerhaeuser′s Internet site at http://investor.weyerhaeuser.com
and is accessible by selecting the 'Q1 2011 Earnings Conference Call?
link.
The webcast is available through the Thomson StreetEvents Network to
both institutional and individual investors. Individual investors can
listen to the call at http://www.fulldisclosure.com,
Thomson′s individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson′s
password-protected site, StreetEvents (http://www.streetevents.com).
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 accurate
because of risks and uncertainties surrounding these assumptions.
Factors listed below, as well as other factors, may cause actual results
to differ significantly from these forward-looking statements. There is
no guarantee that any of the events anticipated by these forward-looking
statements will occur. If any of the events occur, there is no guarantee
what effect they will have on company operations or financial condition.
The company will not update these forward-looking statements after the
date of this news release.
Some forward-looking statements discuss the company′s plans, strategies
and intentions. They use words such as 'expects,? 'may,? 'will,?
'believes,? 'should,? 'approximately,? 'anticipates,? 'estimates,? and
'plans.? In addition, these words may use the positive or negative or
other variations of those terms.
This release contains forward-looking statements regarding the company′s
expectations during the second quarter of 2011, including housing market
conditions; market challenges for our Timberlands, Wood Products and
Real Estate segments; higher selling prices for western logs and higher
harvest volumes in Timberlands, partially offset by higher fuel expenses
and seasonally higher road and silviculture costs; improved operating
rates, higher selling prices and cost reductions in the Wood Products
segment, partially offset by increased log costs; higher selling prices,
partially offset by increased scheduled maintenance costs in the
Cellulose Fiber segment; and a seasonal increase in home sale closings
and lower margins and average prices in our single-family homebuilding
operations.
Major risks, uncertainties and assumptions that affect the company′s
businesses and may cause actual results to differ from these
forward-looking statements, include, but are not limited to:
the effect of general economic conditions, including employment rates,
housing starts, interest rate levels, availability of financing for
home mortgages, and strength of the U.S. dollar;
market demand for the company′s products, which is related to the
strength of the various U.S. business segments and economic conditions;
performance of the company′s manufacturing operations, including
maintenance requirements;
raw material prices;
energy prices;
transportation costs;
the successful execution of internal performance plans, including
restructurings and cost reduction initiatives;
the level of competition from domestic and foreign producers;
the effect of the Japanese disaster on demand for company products;
the effect of weather;
the risk of loss from fires, floods, windstorms, hurricanes, pest
infestation and other natural disasters;
federal tax policies;
the effect of forestry, land use, environmental and other governmental
regulations;
legal proceedings;
the effect of timing of retirements and changes in the market price of
company stock on charges for stock-based compensation;
changes in accounting principles;
performance of pension fund investments and related derivatives; and
other factors described under 'Risk Factors? in the Company′s annual
report on Form 10-K.
The company also is a large exporter and is affected by changes in
economic activity in Europe and Asia, particularly Japan and China. It
also is affected by changes in currency exchange rates, particularly the
relative value of the U.S. dollar to the euro and the Canadian dollar.
Restrictions on international trade or tariffs imposed on imports also
may affect the company.
Weyerhaeuser Company Q1.2011 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations
in millions
Q4 Q1 Dec 31, March 31,
March 31, 2010 2011
2010
Net sales and revenues $ 1,664 $ 1,578 $ 1,419
Cost of products sold
1,362
1,324
1,232
Gross margin 302 254 187
Selling, general and administrative expenses
178
179
163
Research and development expenses
10
7
8
Charges for restructuring, closures and impairments
127
4
2
Other operating income, net
(66
)
(174
)
(70
)
Operating income 53 238 84
Interest income and other
10
11
42
Impairments of investments and other related charges
(3
)
-
-
Interest expense, net of capitalized interest
(96
)
(93
)
(106
)
Earnings (loss) before taxes
(36
)
156
20
Income tax benefit (provision)
207
(57
)
(38
)
Net earnings (loss)
171
99
(18
)
Less: net earnings attributable to noncontrolling interests
-
-
(2
)
Net earnings (loss) attributable to $ 171
$ 99
$ (20 )
Per Share Information
Q4 Q1 Dec 31, March 31, March 31, 2010 2011
2010
Basic earnings (loss) per share attributable to
Weyerhaeuser common shareholders
$
0.32
$
0.18
$
(0.10
)
Diluted earnings (loss) per share attributable to
Weyerhaeuser common shareholders
$
0.32
$
0.18
$
(0.10
)
Dividends paid per share
$
0.05
$
0.15
$
0.05
Weighted average shares outstanding (in thousands):
Basic
535,956
537,140
211,440
Diluted
538,376
540,476
211,440
Common shares outstanding at end of period (in thousands)
535,976
538,408
211,557
Weyerhaeuser Company Q1.2011 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet
in millions
March 31, Dec 31, 2011 2010
Forest Products
Current assets:
Cash and cash equivalents
$
1,459
$
1,466
Receivables, less allowances
505
451
Inventories
544
478
Prepaid expenses
85
81
Deferred tax assets
155
113
Total current assets
2,748
2,589
Property and equipment, net
3,151
3,217
Construction in progress
149
123
Timber and timberlands at cost, less depletion charged to disposals
4,003
4,035
Investments in and advances to equity affiliates
192
194
Goodwill
40
40
Other assets
424
363
Restricted assets held by special purpose entities
914
915
11,621
11,476
Real Estate
Cash and cash equivalents
4
1
Receivables, less allowances
54
51
Real estate in process of development and for sale
515
517
Land being processed for development
978
974
Investments in and advances to equity affiliates
15
16
Deferred tax assets
266
266
Other assets
119
120
Consolidated assets not owned
8
8
1,959
1,953
Total assets
$
13,580
$
13,429
Forest Products
Current liabilities:
Accounts payable
$
359
$
340
Accrued liabilities
686
734
Total current liabilities
1,045
1,074
Long-term debt
4,710
4,710
Deferred income taxes
485
366
Deferred pension and other postretirement benefits
908
930
Other liabilities
405
393
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose
entities
771
772
8,324
8,245
Real Estate
Long-term debt
348
350
Other liabilities
196
212
Consolidated liabilities not owned
8
8
552
570
Total liabilities
8,876
8,815
Total Weyerhaeuser shareholders' interest
4,702
4,612
Noncontrolling interests
2
2
Total equity
4,704
4,614
Total liabilities and equity
$
13,580
$
13,429
Weyerhaeuser Company Q1.2011 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows
in millions
Q4 Q1 Dec 31, March 31, March 31, 2010 2011
2010
Cash flows from operations:
Net earnings (loss)
$
171
$
99
$
(18
)
Noncash charges (credits) to income (loss):
Depreciation, depletion and amortization
127
123
126
Deferred income taxes, net
(341
)
39
34
Pension and other postretirement benefits
(2
)
24
(1
)
Share-based compensation expense
8
14
6
Equity in loss of equity affiliates
3
2
3
Charges for impairment of assets
112
1
2
Net gains on dispositions of assets and operations
(46
)
(156
)
(83
)
Foreign exchange transaction gains
(4
)
(7
)
(10
)
Decrease (increase) in working capital:
Receivables less allowances
36
(59
)
(87
)
Receivable for taxes
62
1
568
Inventories
2
(66
)
(65
)
Real estate and land
48
(2
)
(36
)
Prepaid expenses
14
(10
)
(13
)
Accounts payable and accrued liabilities
(44
)
(78
)
(47
)
Deposits on land positions and other assets
3
-
3
Pension contributions
(27
)
(1
)
(132
)
Other
87
(33
)
(72
)
Net cash from operations
209
(109 )
178
Cash flows from investing activities:
Property and equipment
(79
)
(35
)
(46
)
Timberlands reforestation
(10
)
(12
)
(13
)
Redemption of short-term investments
2
-
47
Proceeds from sale of assets and operations
53
193
115
Repayments from pension trust
-
-
50
Other
(17
)
5
(3
)
Cash from investing activities
(51 )
151
150
Cash flows from financing activities:
Notes, commercial paper borrowings and revolving credit facilities,
net
(1
)
-
(3
)
Cash dividends
(27
)
(81
)
(11
)
Change in book overdrafts
33
3
(4
)
Payments on debt
(65
)
(2
)
(17
)
Exercises of stock options
-
34
-
Other
1
-
(2
)
Cash from financing activities
(59 )
(46 )
(37 )
Net change in cash and cash equivalents
99
(4
)
291
Cash and cash equivalents at beginning of period
1,368
1,467
1,869
Cash and cash equivalents at end of period
$
1,467
$
1,463
$
2,160
Cash paid (received) during the year for:
Interest, net of amount capitalized
$
57
$
156
$
153
Income taxes
$
(9
)
$
2
$
(444
)
Weyerhaeuser Company Total Company Statistics Q1.2011 Analyst Package
Preliminary results, subject to audit
Special Items Included in Net Earnings
in millions
Q4 Q1 Dec 31, March 31, March 31, 2010 2011
2010 Net earnings (loss) $ 171 $ 99 $ (20 )
Income tax adjustments
(177
)
-
31
Gain on sale of wood products assets
-
-
(26
)
Gain on sale of railroads
(31
)
-
-
Gain on sale of 82,000 acres of non-strategic timberlands
-
(96
)
-
Charges for closures, restructuring and impairments
89
-
-
Net earnings (loss) before special items $ 52
$ 3
$ (15 )
Q4 Q1 Dec 31, March 31, March 31, 2010 2011
2010 Net earnings (loss) per diluted share $ 0.32 $ 0.18 $ (0.10 )
Income tax adjustments
(0.33
)
-
0.15
Gain on sale of wood products assets
-
-
(0.12
)
Gain on sale of railroads
(0.06
)
-
-
Gain on sale of 82,000 acres of non-strategic timberlands
-
(0.18
)
-
Charges for closures, restructuring and impairments
0.17
-
-
Net earnings (loss) before special items per diluted share $ 0.10
$ -
$ (0.07 )
Selected Total Company Items
in millions
Q4 Q1 Dec 31, March 31, March 31, 2010 2011
2010
Depreciation, depletion and amortization:
Cost of products sold
$
112
$
107
$
110
Selling, general and administrative expenses
15
16
16
Total depreciation, depletion and amortization
$
127
$
123
$
126
Pension and postretirement credits (costs):
Pension and postretirement costs allocated to business segments
$
(12
)
$
(12
)
$
(12
)
Pension and postretirement credits (costs) retained by Corporate
segment
19
(12
)
16
Total company pension and postretirement credits (costs)
$
7
$
(24
)
$
4
Total decrease (increase) in Forest Products working capital
$
98
$
(196
)
$
169
Cash spent for capital expenditures
$
(89
)
$
(47
)
$
(59
)
Weyerhaeuser Company Timberlands Segment Q1.2011 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions
Q4.2010
Q1.2011
Q1.2010
Trade sales and revenues (unaffiliated customers)
$
207
$
230
$
202
Intersegment sales
164
191
171
Total net sales and revenues 371 421 373
Cost of products sold
298
320
277
Gross margin 73 101 96
Selling, general and administrative expenses
22
23
20
Research and development expenses
7
4
4
Charges for restructuring, closures and impairments
-
-
1
Other operating income, net
(11
)
(166
)
(10
)
Operating income
55
240
81
Interest income and other
1
1
-
Net contribution to earnings $ 56
$ 241
$ 81
Selected Segment Items
Q4.2010
Q1.2011
Q1.2010
Depreciation, depletion and amortization
$
30
$
31
$
30
Total increase in working capital
$
(4
)
$
(17
)
$
(15
)
Cash spent for capital expenditures
$
(20
)
$
(14
)
$
(20
)
Segment Special Items Included in Net Contribution to Earnings
(Pre-Tax)
Q4.2010
Q1.2011
Q1.2010
Gain on sale of 82,000 acres of non-strategic timberlands
$
-
$
152
$
-
Segment Statistics
Q4.2010
Q1.2011
Q1.2010
Third Party Net
Sales and Revenue
(millions)
Logs:
West
$
97
$
110
$
82
South
41
41
27
Canada
5
7
9
Total Logs
143
158
118
Pay as cut timber sales
8
8
8
Timberlands exchanges and dispositions
20
21
35
Higher and better use land sales
4
4
5
Minerals, oil and gas
14
14
15
Products from international operations
16
17
15
Other products
2
8
6
Total
$
207
$
230
$
202
Logs
Third Party Sales
Realizations
(per cubic meter)
West
$
95.30
$
100.20
$
84.17
South
$
41.86
$
41.22
$
43.21
Canada
$
33.84
$
34.73
$
34.02
International
$
18.21
$
18.61
$
20.35
Logs
Third Party Sales
Volumes
(cubic meters,
thousands)
West
1,020
1,095
975
South
993
1,005
634
Canada
141
194
259
International
74
72
78
Total
2,228
2,366
1,946
Logs
Fee Depletion
(cubic meters,
thousands)
West
1,290
1,611
1,431
South
2,116
2,180
2,140
International
79
98
92
Total
3,485
3,889
3,663
Weyerhaeuser Company Wood Products Segment Q1.2011 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions
Q4.2010
Q1.2011
Q1.2010
Trade sales and revenues (unaffiliated customers)
$
572
$
624
$
604
Intersegment sales
18
21
16
Total net sales and revenues 590 645 620
Cost of products sold
613
630
616
Gross margin (23 ) 15 4
Selling, general and administrative expenses
63
55
68
Research and development expenses
1
1
1
Charges for restructuring, closures and impairments
103
2
1
Other operating income, net
(1
)
(5
)
(46
)
Operating loss
(189 )
(38 )
(20 )
Interest income and other
1
2
1
Net contribution to earnings $ (188 ) $ (36 )
$ (19 )
Selected Segment Items
Q4.2010
Q1.2011
Q1.2010
Depreciation, depletion and amortization
$
43
$
40
$
45
Total decrease (increase) in working capital
$
40
$
(118
)
$
(134
)
Cash spent for capital expenditures
$
(21
)
$
(6
)
$
(2
)
Segment Special Items Included in Net Contribution to Earnings
(Pre-Tax)
Q4.2010
Q1.2011
Q1.2010
Gain on sale of assets
$
-
$
-
$
44
Charges for restructuring, closures and impairments
(103
)
-
-
Total $ (103 ) $ -
$ 44
Segment Statistics
in millions, except for third-party sales realizations
Q4.2010
Q1.2011
Q1.2010
Structural Lumber
(board feet)
Third Party Net Sales and Revenue
$
241
$
260
$
241
Third Party Sales Realizations
$
292.63
$
315.26
$
316.60
Third Party Sales Volumes
822
826
761
Production Volumes
785
893
801
Engineered Solid
Section
(cubic feet)
Third Party Net Sales and Revenue
$
59
$
62
$
66
Third Party Sales Realizations
$
1,853.91
$
1,851.05
$
1,718.25
Third Party Sales Volumes
3
3
4
Production Volumes
3
4
4
Engineered
I-joists
(lineal feet)
Third Party Net Sales and Revenue
$
35
$
33
$
48
Third Party Sales Realizations
$
1,259.46
$
1,266.51
$
1,083.79
Third Party Sales Volumes
29
26
44
Production Volumes
26
30
41
Oriented Strand
Board
(square feet 3/8')
Third Party Net Sales and Revenue
$
72
$
85
$
66
Third Party Sales Realizations
$
177.84
$
192.16
$
197.46
Third Party Sales Volumes
408
445
334
Production Volumes
429
494
378
Softwood Plywood
(square feet 3/8')
Third Party Net Sales and Revenue
$
15
$
17
$
16
Third Party Sales Realizations
$
250.61
$
263.83
$
263.54
Third Party Sales Volumes
57
63
60
Production Volumes
43
53
48
Hardwood Lumber
(square feet 3/8')
Third Party Net Sales and Revenue
$
51
$
58
$
54
Third Party Sales Realizations
$
833.75
$
845.42
$
814.00
Third Party Sales Volumes
61
69
67
Production Volumes
51
58
59
Weyerhaeuser Company Cellulose Fibers Segment Q1.2011 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions
Q4.2010
Q1.2011
Q1.2010
Total net sales and revenues $ 511 $ 506 $ 410
Cost of products sold
356
400
367
Gross margin 155 106 43
Selling, general and administrative expenses
21
22
20
Research and development expenses
2
2
2
Other operating income, net
(7
)
(5
)
(2
)
Operating income
139
87
23
Interest income and other
(1
)
(1
)
(4
)
Net contribution to earnings $ 138
$ 86
$ 19
Selected Segment Items
Q4.2010
Q1.2011
Q1.2010
Depreciation, depletion and amortization
$
39
$
36
$
36
Total decrease (increase) in working capital
$
21
$
21
$
(10
)
Cash spent for capital expenditures
$
(46
)
$
(26
)
$
(35
)
Segment Statistics
Q4.2010
Q1.2011
Q1.2010
Pulp
(air-dry metric
tons)
Third Party Net Sales and Revenue (millions)
$
402
$
398
$
321
Third Party Sales Realizations
$
926.29
$
912.12
$
761.78
Third Party Sales Volumes (thousands)
434
436
422
Production Volumes (thousands)
453
437
437
Liquid Packaging
Board
(tons)
Third Party Net Sales and Revenue (millions)
$
88
$
85
$
71
Third Party Sales Realizations
$
1,081.52
$
1,148.29
$
1,051.81
Third Party Sales Volumes (thousands)
81
74
67
Production Volumes (thousands)
84
67
69
Weyerhaeuser Company Real Estate Segment Q1.2011 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions
Q4.2010
Q1.2011
Q1.2010
Total net sales and revenues $ 305 $ 160 $ 151
Cost of products sold
228
126
121
Gross margin 77 34 30
Selling, general and administrative expenses
45
35
34
Charges for restructuring, closures and impairments
17
1
1
Other operating (income) loss, net
(1
)
-
1
Operating income (loss)
16
(2 )
(6 )
Interest income and other
-
1
39
Impairments of investments and other related charges
(3
)
-
-
Loss attributable to noncontrolling interests
-
-
(2
)
Net contribution to earnings $ 13
$ (1 )
$ 31
Selected Segment Items
Q4.2010
Q1.2011
Q1.2010
Depreciation and amortization
$
4
$
3
$
3
Cash spent for capital expenditures
$
(2
)
$
(1
)
$
(1
)
Segment Special Items Included in Net Contribution to Earnings
(Pre-Tax)
Q4.2010
Q1.2011
Q1.2010
Charges for restructuring, closures and impairments
$
(20
)
$
-
$
-
Segment Statistics
Q4.2010
Q1.2011
Q1.2010
Net sales and revenues:
Single-family housing
$
266
$
152
$
143
Land
25
7
7
Other
14
1
1
Total net sales and revenue
$
305
$
160
$
151
Single-family homes sold
385
535
620
Single-family homes closed
606
363
393
Single-family homes sold but not closed (backlog)
439
611
877
Single-family average price of homes closed (in thousands)
$
439
$
419
$
365
Single-family home gross margin - excluding impairments (1)
26.1
%
21.7
%
19.4
%
(1) Single-family gross margin excluding impairments equals
revenue less cost of sales and period costs (other than impairments
and deposit write-offs).
Weyerhaeuser Company Corporate & Other Segment Q1.2011 Analyst Package
Preliminary results, subject to audit
Segment Statement of Operations
in millions
Q4.2010
Q1.2011
Q1.2010
Trade sales and revenues (unaffiliated customers)
$
69
$
58
$
52
Intersegment sales
5
3
4
Total net sales and revenues 74 61 56
Cost of products sold
54
63
42
Gross margin 20 (2 ) 14
Selling, general and administrative expenses
27
44
21
Research and development expenses
-
-
1
Charges for restructuring, closures and impairments
6
1
(1
)
Other operating (income) loss, net
(45
)
2
(13
)
Operating income (loss)
32
(49 )
6
Interest income and other
9
8
6
Net contribution to earnings $ 41
$ (41 )
$ 12
Selected Segment Items
Q4.2010
Q1.2011
Q1.2010
Depreciation, depletion and amortization
$
11
$
13
$
12
Total decrease (increase) in working capital
$
41
$
(82
)
$
328
Cash spent for capital expenditures
$
-
$
-
$
(1
)
Share-based compensation expense
$
8
$
16
$
3
Foreign exchange gains
$
4
$
6
$
9
Pension and postretirement credits (costs) retained by Corporate
segment
$
19
$
(12
)
$
16
Segment Special Items Included in Net Contribution to Earnings
(Pre-Tax)
Q4.2010
Q1.2011
Q1.2010
Charges for restructuring, closures and impairments
$
(7
)
$
-
$
-
Gain on sale of railroads
46
-
-
Total $ 39
$ -
$ -
Corporate and Other includes results of our transportation operations,
certain gains or charges that are not related to an individual operating
segment and the portion of items such as share-based compensation,
pension and postretirement costs, foreign exchange transaction gains and
losses and other general and administrative expenses that are not
allocated to the business segments. We sold our five short line
railroads at the end of 2010 and transportation currently only consists
of Westwood Shipping Lines.
Weyerhaeuser Company
Media ? Bruce Amundson, 253-924-3047
Analysts
? Kathryn McAuley, 253-924-2058