Weyerhaeuser Reports Second Quarter Results
29.07.2011 | Business Wire
TIMBERLANDS 2Q 2011 Performance ? The segment′s earnings before special items 3Q 2011 Outlook ? Weyerhaeuser expects significantly lower WOOD PRODUCTS 2Q 2011 Performance ?The segment′s results before special items 3Q 2011 Outlook ? Excluding the hardwoods transaction, CELLULOSE FIBERS 2Q 2011 Performance ? Second quarter earnings declined $6 million 3Q 2011 Outlook ? Weyerhaeuser expects significantly higher REAL ESTATE 2Q 2011 Performance ? The segment′s earnings increased $9 million 3Q 2011 Outlook ? Weyerhaeuser anticipates slightly higher OTHER ITEMS ABOUT WEYERHAEUSER EARNINGS CALL INFORMATION FORWARD-LOOKING STATEMENTS ASSETS LIABILITIES AND EQUITY Weyerhaeuser Company Total Company Statistics Q2.2011 Analyst Package Special Items Included in Net Earnings Net earnings (loss) per diluted share Selected Total Company Items Weyerhaeuser Company Timberlands Segment Q2.2011 Analyst Package Segment Statement of Operations Selected Segment Items Segment Special Items Included in Net Contribution to Earnings Segment Statistics Weyerhaeuser Company Wood Products Segment Q2.2011 Analyst Package Segment Statement of Operations Selected Segment Items Segment Special Items Included in Net Contribution to Earnings Segment Statistics Weyerhaeuser Company Segment Statement of Operations Selected Segment Items Segment Statistics Weyerhaeuser Company Real Estate Segment Q2.2011 Analyst Package Segment Statement of Operations Selected Segment Items Segment Statistics (1) Single-family gross margin excluding impairments Weyerhaeuser Company Corporate & Other Segment Q2.2011 Analyst Package Segment Statement of Operations (1) Other operating costs for second quarter and Selected Segment Items
Weyerhaeuser Company (NYSE: WY) today reported net earnings of $10
million for the second quarter, or 2 cents per diluted share, on net
sales of $1.8 billion. This compares with net earnings of $14 million on
net sales of $1.8 billion for the same period last year.
Earnings for the second quarter of 2011 include after-tax charges of $22
million for special items. Excluding these items, the company reported
net earnings of $32 million, or 6 cents per diluted share. This compares
with net earnings before special items of $42 million in the second
quarter of 2010.
Net cash provided by operations for the second quarter of 2011 was $116
million, compared with $189 million for the second quarter of 2010. The
company′s cash balance decreased by $582 million in the second quarter,
primarily due to repayment of debt. Weyerhaeuser ended the quarter with
$881 million in cash and cash equivalents.
'We are confident that our ongoing efforts to sharpen our focus and
reduce costs are positioning us to achieve our goal of generating
superior sustainable returns for our shareholders,? said Dan Fulton,
president and chief executive officer. 'The recently announced
agreements to sell our hardwoods and Westwood Shipping Lines operations
demonstrate the focus we are placing on our strategic direction.?
WEYERHAEUSER FINANCIAL HIGHLIGHTS
(millions, except per share data) 2Q 2011 1Q 2011 2Q 2010
Net sales
From continuing operations
$1,610
$1,422
$1,641
From discontinued operations
$163
$156
$164
Total net sales
$1,773
$1,578
$1,805
Net earnings
$10
$99
$14
Weighted average shares outstanding, diluted
541
540
212
Earnings per diluted share
$0.02
$0.18
$0.07
Net earnings before special items
$32
$3
$42
Earnings per diluted share before special items
$0.06
$0.00
$0.20
Net cash from operations
$116
($109)
$189
Net change in cash and cash equivalents
($582)
($4)
($314)
Cash and cash equivalents at end of period
$881
$1,463
$1,846
Net sales from discontinued operations include the net sales of
Weyerhaeuser′s hardwoods and Westwood Shipping Lines businesses. These
operations are reported as discontinued due to the expected sale of the
businesses.
Weyerhaeuser′s outstanding shares increased substantially from the
second 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) 2Q 2011 1Q 2011 Change
Net sales
$288
$230
$58
Contribution to pre-tax earnings before special items
$112
$89
$23
Pre-tax gain from special items
$0
$152
($152)
GAAP contribution to pre-tax earnings
$112
$241
($129)
improved $23 million in the second quarter compared with the first. Fee
harvest volumes rose, and average selling prices for western logs
increased due to strong Chinese export demand through the first half of
the quarter. These improvements were partially offset by higher fuel
costs.
First quarter results included a special item pre-tax gain of $152
million from the sale of 82,000 acres of non-strategic timberlands.
Excluding that transaction, earnings from dispositions of non-strategic
timberlands totaled $19 million in the first quarter, compared with $34
million in the second quarter.
earnings from the Timberlands segment in the third quarter. The company
anticipates lower selling prices and harvest volumes in the West and
seasonally higher silviculture and road expenses. The company also
expects reduced earnings from dispositions of non-strategic timberlands.
FINANCIAL HIGHLIGHTS (millions) 2Q 2011 1Q 2011 Change
Net sales
$702
$624
$78
Charge to pre-tax earnings before special items
($52)
($36)
($16)
Pre-tax charge from special items
($9)
$0
($9)
GAAP charge to pre-tax earnings
($61)
($36)
($25)
declined $16 million compared with the first quarter due to lower
selling prices for lumber and oriented strand board and higher log
costs. These factors were partially offset by improved sales volumes
across nearly all product lines.
Second quarter includes special charges of $9 million related to the
expected sale of the hardwoods business. Second quarter results before
special items include operating earnings of $1 million from that
business, compared with breakeven results in the first quarter.
Weyerhaeuser anticipates a comparable loss from the segment in the third
quarter. The company expects lower selling prices for lumber and
oriented strand board and lower sales volumes across most product lines,
offset by lower log costs and modest cost improvements.
FINANCIAL HIGHLIGHTS (millions) 2Q 2011 1Q 2011 Change
Net sales
$526
$506
$20
Contribution to pre-tax earnings before special items
$80
$86
($6)
Pre-tax gain from special items
$0
$0
$0
GAAP contribution to pre-tax earnings
$80
$86
($6)
compared with first quarter. Maintenance costs increased and production
declined as the segment completed four planned annual maintenance
outages, compared with two in the first quarter. This was partially
offset by improved average selling prices. Sales volumes declined
slightly, as market demand weakened late in the second quarter.
earnings from the Cellulose Fibers segment in the third quarter. The
company anticipates substantially lower maintenance costs and increased
production, partially offset by lower selling prices for pulp.
FINANCIAL HIGHLIGHTS (millions) 2Q 2011 1Q 2011 Change
Net sales
$191
$160
$31
Contribution (charge) to pre-tax earnings before special items
$8
($1)
$9
Pre-tax gain from special items
$0
$0
$0
GAAP contribution (charge) to pre-tax earnings
$8
($1)
$9
compared with the first quarter, primarily due to seasonally higher home
sale closings. Home sale closings increased 26 percent compared with the
first quarter to 459 single-family homes. Average margins on homes
closed improved slightly, but average prices declined due to mix.
Second quarter earnings include $4 million from the sale of land and
lots, compared with $1 million in the first quarter.
earnings from single-family homebuilding operations in the third quarter
due to a seasonal increase in home sale closings.
Interest expense for the second quarter includes a pre-tax special
charge of $26 million associated with the early extinguishment of
approximately $518 million of long-term debt due March 2012.
Second quarter results for the Corporate and Other segment include net
pre-tax charges of $11 million for discontinued operations, including
operating earnings of $2 million for Westwood Shipping Lines and charges
of $13 million for other operations. First quarter results include
operating earnings of $2 million for Westwood Shipping Lines.
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 release second quarter 2011 results on July 29 before
the market opens. The company will hold a live conference call at 7 a.m.
Pacific (10 a.m. Eastern) on July 29 to discuss second quarter results.
To access the conference call from within North America, dial (877)
296-9413 (access code ? 29869015) at least 15 minutes prior to the call.
Those calling from outside North America should dial 1-(706) 679-2458
(access code ? 29869015). Replays will be available for one week at
(800) 642-1687 (access code ? 29869015) from within North America and at
1-(706) 645-9291 (access code ? 29869015) 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 'Q2 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 third quarter of 2011, including lower selling
prices and harvest volumes in the West, seasonally higher silviculture
and road expenses, reduced earnings from dispositions of non-strategic
timberlands, and significantly lower earnings in the Timberlands
segment; lower selling prices for lumber and oriented strand board and
lower sales volumes across most products lines, offset by lower log
costs and modest cost improvements, and a comparable loss in the Wood
Products segment excluding special items; substantially lower
maintenance costs and improved production, partially offset by lower
selling prices for pulp, somewhat higher shipment volumes, seasonally
lower energy costs, and significantly higher earnings in the Cellulose
Fiber segment; and slightly higher earnings from single-family
homebuilding operations and a seasonal increase in home sale closings,
continued strong margins, and flat to slightly lower selling prices in
the Real Estate segment.
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 tsunami 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 and quarterly reports on Form 10-Q.
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 Q2.2011 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Operations
in millions
Q1 Q2 Year-to-date March 31, June 30,
June 30, June 30,
June 30, 2011 2011 2010 2011 2010 Net sales and revenues $ 1,422 $ 1,610 $ 1,641 $ 3,032 $ 2,924
Cost of products sold
1,177
1,343
1,314
2,520
2,416
Gross margin 245 267 327 512 508
Selling, general and administrative expenses
172
145
162
317
318
Research and development expenses
7
7
8
14
16
Charges for restructuring, closures and impairments
4
7
4
11
6
Other operating income, net
(174
)
(19
)
(2
)
(193
)
(72
)
Operating income 236 127 155 363 240
Interest income and other
11
9
12
20
54
Interest expense, net of capitalized interest
(93
)
(117
)
(155
)
(210
)
(261
)
Earnings from continuing operations before income taxes
154
19
12
173
33
Income taxes
(56
)
4
(4
)
(52
)
(42
)
Earnings (loss) from continuing operations
98
23
8
121
(9
)
Earnings (loss) from discontinued operations, net of income taxes
1
(13
)
6
(12
)
5
Net earnings (loss)
99
10
14
109
(4
)
Less: net earnings attributable to noncontrolling interests
?
?
?
?
(2
)
Net earnings (loss) attributable to Weyerhaeuser common
shareholders$ 99
$ 10
$ 14
$ 109
$ (6 )
Per Share Information
Q1 Q2 Year-to-date March 31, June 30, June 30, June 30, June 30, 2011 2011 2010 2011 2010
Earnings (loss) per share attributable to Weyerhaeuser common
shareholders, basic and diluted:
Continuing operations
$
0.18
$
0.04
$
0.04
$
0.22
$
(0.05
)
Discontinued operations
?
(0.02
)
0.03
(0.02
)
0.02
Net earnings (loss) per share
$
0.18
$
0.02
$
0.07
$
0.20
$
(0.03
)
Dividends paid per share
$
0.15
$
0.15
$
0.05
$
0.30
$
0.10
Weighted average shares outstanding (in thousands):
Basic
537,140
538,599
211,600
537,873
211,521
Diluted
540,476
541,095
212,103
540,790
211,521
Common shares outstanding at end of period (in thousands)
538,408
538,640
211,609
538,640
211,609
Weyerhaeuser Company Q2.2011 Analyst Package
Preliminary results, subject to audit
Consolidated Balance Sheet
in millions
March 31, June 30, December 31, 2011 2011 2010 Forest Products:
Current assets:
Cash and cash equivalents
$
1,459
$
877
$
1,466
Receivables, less allowances
505
533
451
Inventories
544
513
478
Prepaid expenses
85
115
81
Deferred tax assets
155
167
113
Total current assets
2,748
2,205
2,589
Property and equipment, net
3,151
3,083
3,217
Construction in progress
149
137
123
Timber and timberlands at cost, less depletion charged to disposals
4,003
3,987
4,035
Investments in and advances to equity affiliates
192
191
194
Goodwill
40
40
40
Other assets
424
511
363
Restricted assets held by special purpose entities
914
915
915
11,621
11,069
11,476
Real Estate:
Cash and cash equivalents
4
4
1
Receivables, less allowances
54
36
51
Real estate in process of development and for sale
515
535
517
Land being processed for development
978
988
974
Investments in and advances to equity affiliates
15
15
16
Deferred tax assets
266
263
266
Other assets
119
121
120
Consolidated assets not owned
8
8
8
1,959
1,970
1,953
Total assets $ 13,580
$ 13,039
$ 13,429
Forest Products:
Current liabilities:
Accounts payable
$
359
$
326
$
340
Accrued liabilities
686
712
734
Total current liabilities
1,045
1,038
1,074
Long-term debt
4,710
4,192
4,710
Deferred income taxes
485
533
366
Deferred pension and other postretirement benefits
908
835
930
Other liabilities
405
412
393
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose
entities
771
774
772
8,324
7,784
8,245
Real Estate:
Long-term debt
348
318
350
Other liabilities
196
193
212
Consolidated liabilities not owned
8
8
8
552
519
570
Total liabilities
8,876
8,303
8,815
Equity:
Total Weyerhaeuser shareholders' interest
4,702
4,734
4,612
Noncontrolling interests
2
2
2
Total equity
4,704
4,736
4,614
Total liabilities and equity $ 13,580
$ 13,039
$ 13,429
Weyerhaeuser Company Q2.2011 Analyst Package
Preliminary results, subject to audit
Consolidated Statement of Cash Flows
in millions
Q1 Q2 Year-to-date March 31, June 30,
June 30, June 30,
June 30, 2011 2011 2010 2011 2010 Cash flows from operations:
Net earnings (loss)
$
99
$
10
$
14
$
109
$
(4
)
Noncash charges (credits) to income (loss):
Depreciation, depletion and amortization
123
120
126
243
252
Deferred income taxes, net
39
(13
)
56
26
90
Pension and other postretirement benefits
24
19
(10
)
43
(11
)
Share-based compensation expense
14
3
6
17
12
Equity in loss of equity affiliates
2
1
?
3
3
Charges for impairment of assets
1
11
1
12
3
Net gains on dispositions of assets and operations
(156
)
(29
)
(10
)
(185
)
(93
)
Foreign exchange transaction gains
(7
)
(1
)
10
(8
)
?
Change in:
Receivables less allowances
(59
)
(10
)
(28
)
(69
)
(115
)
Receivable for taxes
1
?
(17
)
1
551
Inventories
(66
)
35
40
(31
)
(25
)
Real estate and land
(2
)
(32
)
(1
)
(34
)
(37
)
Prepaid expenses
(10
)
(4
)
6
(14
)
(7
)
Accounts payable and accrued liabilities
(78
)
3
(6
)
(75
)
(53
)
Deposits on land positions and other assets
?
(4
)
(6
)
(4
)
(3
)
Pension contributions
(1
)
(4
)
(6
)
(5
)
(138
)
Other
(33
)
11
14
(22
)
(58
)
Net cash from operations (109 ) 116
189
7
367
Cash flows from investing activities:
Property and equipment
(35
)
(39
)
(32
)
(74
)
(78
)
Timberlands reforestation
(12
)
(7
)
(7
)
(19
)
(20
)
Redemption of short-term investments
?
?
?
?
47
Proceeds from sale of assets and operations
193
3
15
196
130
Repayments from pension trust
?
?
96
?
146
Other
5
(10
)
(8
)
(5
)
(11
)
Cash from investing activities 151
(53 ) 64
98
214
Cash flows from financing activities:
Notes, commercial paper borrowings and revolving credit facilities,
net
?
?
?
?
(3
)
Cash dividends
(81
)
(80
)
(10
)
(161
)
(21
)
Change in book overdrafts
3
(1
)
(8
)
2
(12
)
Payments on debt
(2
)
(548
)
(548
)
(550
)
(565
)
Exercises of stock options
34
3
?
37
?
Other
?
(19
)
(1
)
(19
)
(3
)
Cash from financing activities (46 ) (645 ) (567 ) (691 ) (604 )
Net change in cash and cash equivalents
(4
)
(582
)
(314
)
(586
)
(23
)
Cash and cash equivalents at beginning of period
1,467
1,463
2,160
1,467
1,869
Cash and cash equivalents at end of period
$
1,463
$
881
$
1,846
$
881
$
1,846
Cash paid (received) during the year for:
Interest, net of amount capitalized
$
156
$
91
$
120
$
247
$
273
Income taxes
$
2
$
13
$
(1
)
$
15
$
(445
)
Preliminary results, subject to audit
in millions
Q1 Q2 Year-to-date March 31, June 30,
June 30, June 30,
June 30, 2011 2011 2010 2011 2010 Net earnings (loss) $ 99 $ 10 $ 14 $ 109 $ (6 )
Income tax adjustments
?
?
?
?
31
Gain on sale of wood products assets
?
?
(5
)
?
(31
)
Loss on early extinguishment of debt
?
16
33
16
33
Gain on sale of 82,000 acres of non-strategic timberlands
(96
)
?
?
(96
)
?
Charges for impairments
?
6
?
6
?
Net earnings before special items $ 3
$ 32
$ 42
$ 35
$ 27
Q1 Q2 Year-to-date March 31, June 30, June 30, June 30, June 30, 2011 2011 2010 2011 2010 $ 0.18 $ 0.02 $ 0.07 $ 0.20 $ (0.03 )
Income tax adjustments
?
?
?
?
0.15
Gain on sale of wood products assets
?
?
(0.03
)
?
(0.15
)
Loss on early extinguishment of debt
?
0.03
0.16
0.03
0.16
Gain on sale of 82,000 acres of non-strategic timberlands
(0.18
)
?
?
(0.18
)
?
Charges for impairments
?
0.01
?
0.01
?
Net earnings before special items per diluted share $ ?
$ 0.06
$ 0.20
$ 0.06
$ 0.13
in millions
Q1 Q2 Year-to-date March 31, June 30, June 30, June 30, June 30, 2011 2011 2010 2011 2010
Depreciation, depletion and amortization:
Cost of products sold
$
107
$
107
$
109
$
214
$
219
Selling, general and administrative expenses
16
13
17
29
33
Total depreciation, depletion and amortization
$
123
$
120
$
126
$
243
$
252
Pension and postretirement credits (costs):
Pension and postretirement costs allocated to business segments
$
(11
)
$
(16
)
$
(12
)
$
(27
)
$
(24
)
Pension and postretirement credits (costs) retained by Corporate
segment
(12
)
(3
)
22
(15
)
38
Total company pension and postretirement credits (costs)
$
(23
)
$
(19
)
$
10
$
(42
)
$
14
Total decrease (increase) in Forest Products working capital
$
(192
)
$
(21
)
$
159
$
(213
)
$
564
Cash spent for capital expenditures
$
(47
)
$
(46
)
$
(39
)
$
(93
)
$
(98
)
Preliminary results, subject to audit
in millions
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Trade sales and revenues (unaffiliated customers)
$
230
$
288
$
225
$
518
$
427
Intersegment sales
191
134
123
325
294
Total net sales and revenues 421 422 348 843 721
Cost of products sold
320
296
260
616
537
Gross margin 101 126 88 227 184
Selling, general and administrative expenses
23
24
23
47
43
Research and development expenses
4
4
5
8
9
Charges for restructuring, closures and impairments
?
?
?
?
1
Other operating income, net
(166
)
(13
)
(9
)
(179
)
(19
)
Operating income 240
111
69
351
150
Interest income and other
1
1
1
2
1
Net contribution to earnings $ 241
$ 112
$ 70
$ 353
$ 151
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
31
$
35
$
28
$
66
$
58
Total increase in working capital
$
(16
)
$
(40
)
$
(12
)
$
(56
)
$
(24
)
Cash spent for capital expenditures
$
(14
)
$
(14
)
$
(15
)
$
(28
)
$
(35
)
(Pre-Tax)
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Gain on sale of 82,000 acres of non-strategic timberlands
$
152
$
?
$
?
$
152
$
?
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Third Party Net
Sales and
Revenue
(millions)
Logs:
West
$
110
$
152
$
125
$
262
$
207
South
41
49
37
90
64
Canada
7
1
?
8
9
Total Logs
158
202
162
360
280
Pay as cut timber sales
8
8
9
16
17
Timberlands exchanges and dispositions
21
39
13
60
48
Higher and better use land sales
4
2
7
6
12
Minerals, oil and gas
14
15
16
29
31
Products from international operations
17
21
17
38
32
Other products
8
1
1
9
7
Total
$
230
$
288
$
225
$
518
$
427
Logs
Third Party Sales
Realizations
(per cubic
meter)
West
$
100.20
$
109.42
$
97.92
$
105.36
$
91.96
South
$
41.22
$
40.59
$
44.38
$
40.88
$
43.87
Canada
$
34.73
$
42.79
$
30.05
$
35.55
$
33.81
International
$
18.61
$
21.41
$
19.33
$
20.08
$
19.87
Logs
Third Party Sales
Volumes
(cubic meters,
thousands)
West
1,095
1,391
1,276
2,486
2,251
South
1,005
1,211
827
2,216
1,461
Canada
194
23
15
217
274
International
72
79
68
151
146
Total
2,366
2,704
2,186
5,070
4,132
Logs
Fee Depletion
(cubic meters,
thousands)
West
1,611
1,747
1,404
3,358
2,835
South
2,180
2,355
1,881
4,535
4,021
International
98
221
89
319
181
Total
3,889
4,323
3,374
8,212
7,037
Preliminary results, subject to audit
in millions
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Trade sales and revenues (unaffiliated customers)
$
624
$
702
$
789
$
1,326
$
1,393
Intersegment sales
21
24
20
45
36
Total net sales and revenues 645 726 809 1,371 1,429
Cost of products sold
630
723
743
1,353
1,359
Gross margin 15 3 66 18 70
Selling, general and administrative expenses
55
54
72
109
140
Research and development expenses
1
1
2
2
3
Charges for restructuring, closures and impairments
2
13
1
15
2
Other operating income, net
(5
)
(4
)
(5
)
(9
)
(51
)
Operating loss (38 )
(61 )
(4 )
(99 )
(24 )
Interest income and other
2
?
1
2
2
Net contribution to earnings $ (36 ) $ (61 ) $ (3 ) $ (97 ) $ (22 )
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
40
$
37
$
45
$
77
$
90
Total decrease (increase) in working capital
$
(117
)
$
45
$
51
$
(72
)
$
(83
)
Cash spent for capital expenditures
$
(6
)
$
(8
)
$
(5
)
$
(14
)
$
(7
)
(Pre-Tax)
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Gain on sale of assets
$
?
$
?
$
8
$
?
$
52
Charges for impairments
?
9
?
9
?
Total $ ?
$ 9
$ 8
$ 9
$ 52
in millions, except for third-party sales realizations
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Structural Lumber
(board feet)
Third Party Net Sales and Revenue
$
260
$
290
$
308
$
550
$
549
Third Party Sales Realizations
$
315.26
$
300.84
$
347.89
$
307.50
$
333.42
Third Party Sales Volumes
826
963
884
1,788
1,645
Production Volumes
893
903
846
1,796
1,647
Engineered Solid
Section
(cubic feet)
Third Party Net Sales and Revenue
$
62
$
71
$
79
$
133
$
145
Third Party Sales Realizations
$
1,851.05
$
1,904.83
$
1,784.77
$
1,879.54
$
1,749.96
Third Party Sales Volumes
3
4
4
7
8
Production Volumes
4
3
4
7
8
Engineered
I-joists
(lineal feet)
Third Party Net Sales and Revenue
$
33
$
48
$
49
$
81
$
97
Third Party Sales Realizations
$
1,266.51
$
1,258.14
$
1,178.95
$
1,261.55
$
1,133.90
Third Party Sales Volumes
26
38
41
64
85
Production Volumes
30
34
41
64
82
Oriented Strand
Board
(square feet 3/8')
Third Party Net Sales and Revenue
$
85
$
89
$
116
$
174
$
182
Third Party Sales Realizations
$
192.16
$
178.43
$
266.28
$
184.91
$
236.50
Third Party Sales Volumes
445
498
437
943
771
Production Volumes
494
518
468
1,012
846
Softwood Plywood
(square feet 3/8')
Third Party Net Sales and Revenue
$
17
$
16
$
23
$
33
$
39
Third Party Sales Realizations
$
263.83
$
271.01
$
312.95
$
267.37
$
291.15
Third Party Sales Volumes
63
61
75
124
135
Production Volumes
53
48
64
101
112
Hardwood Lumber
(board feet)
Third Party Net Sales and Revenue
$
58
$
63
$
64
$
121
$
118
Third Party Sales Realizations
$
845.42
$
858.51
$
833.30
$
852.15
$
824.30
Third Party Sales Volumes
69
73
76
142
142
Production Volumes
58
62
61
120
120
Cellulose Fibers Segment Q2.2011 Analyst Package
Preliminary results, subject to audit
in millions
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Total net sales and revenues $ 506 $ 526 $ 468 $ 1,032 $ 878
Cost of products sold
400
422
375
822
742
Gross margin 106 104 93 210 136
Selling, general and administrative expenses
22
24
20
46
40
Research and development expenses
2
2
2
4
4
Other operating income, net
(5
)
(3
)
(5
)
(8
)
(7
)
Operating income
87
81
76
168
99
Interest income and other
(1
)
(1
)
(2
)
(2
)
(6
)
Net contribution to earnings $ 86
$ 80
$ 74
$ 166
$ 93
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
36
$
35
$
36
$
71
$
72
Total decrease (increase) in working capital
$
20
$
(32
)
$
(24
)
$
(12
)
$
(34
)
Cash spent for capital expenditures
$
(26
)
$
(23
)
$
(19
)
$
(49
)
$
(54
)
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Pulp
(air-dry metric
tons)
Third Party Net Sales and Revenue (millions)
$
398
$
409
$
354
$
807
$
675
Third Party Sales Realizations
$
912.12
$
960.04
$
856.22
$
935.81
$
808.56
Third Party Sales Volumes (thousands)
436
426
413
862
835
Production Volumes (thousands)
437
410
414
847
851
Liquid
Packaging
Board
(tons)
Third Party Net Sales and Revenue (millions)
$
85
$
93
$
90
$
178
$
161
Third Party Sales Realizations
$
1,148.29
$
1,194.46
$
1,091.14
$
1,171.86
$
1,073.47
Third Party Sales Volumes (thousands)
74
77
83
151
150
Production Volumes (thousands)
67
80
81
147
150
Preliminary results, subject to audit
in millions
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Total net sales and revenues $ 160 $ 191 $ 257 $ 351 $ 408
Cost of products sold
126
147
189
273
310
Gross margin 34 44 68 78 98
Selling, general and administrative expenses
35
36
41
71
75
Charges for restructuring, closures and impairments
1
1
2
2
3
Other operating costs, net
?
?
1
?
2
Operating income (loss) (2 ) 7
24
5
18
Interest income and other
1
1
3
2
42
Loss attributable to noncontrolling interests
?
?
?
?
(2
)
Net contribution to earnings $ (1 ) $ 8
$ 27
$ 7
$ 58
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Depreciation and amortization
$
3
$
3
$
5
$
6
$
8
Cash spent for capital expenditures
$
(1
)
$
?
$
?
$
(1
)
$
(1
)
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Net sales and revenues:
Single-family housing
$
152
$
180
$
233
$
332
$
376
Land
7
11
23
18
30
Other
1
?
1
1
2
Total net sales and revenue
$
160
$
191
$
257
$
351
$
408
Single-family homes sold
535
521
491
1,056
1,111
Single-family homes closed
363
459
625
822
1,018
Single-family homes sold but not closed (backlog)
611
673
743
673
743
Single-family average price of homes closed (in thousands)
$
419
$
391
$
371
$
404
$
369
Single-family home gross margin - excluding impairments (1)
21.7
%
22.4
%
23.9
%
22.0
%
22.2
%
equals revenue less cost of sales and period costs (other than
impairments and deposit write-offs).
Preliminary results, subject to audit
in millions
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Trade sales and revenues (unaffiliated customers)
$
58
$
66
$
66
$
124
$
118
Intersegment sales
3
5
5
8
9
Total net sales and revenues 61 71 71 132 127
Cost of products sold
63
71
48
134
90
Gross margin (2 ) ? 23 (2 ) 37
Selling, general and administrative expenses
44
14
13
58
34
Research and development expenses
?
?
(1
)
?
?
Charges for restructuring, closures and impairments
1
2
1
3
?
Other operating costs (income), net (1)
2
14
11
16
(2
)
Operating income (loss) (49 ) (30 ) (1 ) (79 ) 5
Interest income and other
8
8
9
16
15
Net contribution to earnings $ (41 ) $ (22 ) $ 8
$ (63 ) $ 20
year-to-date 2011 include charges of $13 million related to
businesses we have divested in prior years and are included in
discontinued operations.
Q1.2011
Q2.2011
Q2.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
13
$
10
$
12
$
23
$
24
Total decrease (increase) in working capital
$
(79
)
$
6
$
144
$
73
$
705
Cash spent for capital expenditures
$
?
$
(1
)
$
?
$
(1
)
$
(1
)
Share-based compensation expense (income)
$
16
$
(5
)
$
(4
)
$
11
$
(1
)
Foreign exchange gains (losses)
$
6
$
1
$
(8
)
$
7
$
1
Pension and postretirement credits (costs) retained by Corporate
segment
$
(12
)
$
(3
)
$
22
$
(15
)
$
38
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. We entered into an agreement to sell
Westwood Shipping Lines, our last transportation business, in a
transaction that is subject to regulatory approval and is expected to
close in the third quarter.
Weyerhaeuser Company
Media ? Bruce Amundson, 253-924-3047
Analysts
? Kathryn McAuley, 253-924-2058