Weyerhaeuser Reports Third Quarter Results
28.10.2011 | Business Wire
(1) Discontinued operations include Weyerhaeuser's (2) Weyerhaeuser's outstanding shares increased TIMBERLANDS 3Q 2011 Performance - The segment's earnings declined $50 million 4Q 2011 Outlook - Excluding earnings from disposition of WOOD PRODUCTS 3Q 2011 Performance - Results from continuing operations improved 4Q 2011 Outlook - Excluding special items, Weyerhaeuser CELLULOSE FIBERS 3Q 2011 Performance - Third quarter earnings improved $55 million 4Q 2011 Outlook - Weyerhaeuser expects slightly lower earnings REAL ESTATE 3Q 2011 Performance - The segment's earnings increased $2 million 4Q 2011 Outlook - Weyerhaeuser anticipates higher earnings from CORPORATE AND OTHER ABOUT WEYERHAEUSER EARNINGS CALL INFORMATION FORWARD LOOKING STATEMENTS Weyerhaeuser Company Q3.2011 Analyst Package Consolidated Statement of Operations Weyerhaeuser Company Q3.2011 Analyst Package Consolidated Balance Sheet June 30, September 30, December 31, 2011 2011 2010 ASSETS LIABILITIES AND EQUITY Weyerhaeuser Company Q3.2011 Analyst Package Consolidated Statement of Cash Flows Weyerhaeuser Company Total Company Statistics Q3.2011 Analyst Package Special Items Included in Net Earnings Weyerhaeuser Company Timberlands Segment Q3.2011 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 Q3.2011 Analyst Package Segment Statement of Operations Selected Segment Items, Excluding Hardwoods Operations Segment Special Items Included in Net Contribution to Earnings Segment Statistics Weyerhaeuser Company Cellulose Fibers Segment Q3.2011 Analyst Package Segment Statement of Operations Selected Segment Items Segment Statistics Weyerhaeuser Company Real Estate Segment Q3.2011 Analyst Package Segment Statement of Operations Selected Segment Items Segment Statistics Weyerhaeuser Company Corporate & Other Segment Q3.2011 Analyst Package Segment Statement of Operations (1) Third quarter 2011 includes a $9 million gain and Selected Segment Items, Excluding Westwood Shipping Lines Segment Special Items Included in Net Contribution to Earnings
Weyerhaeuser Company (NYSE: WY) today reported net earnings of $157
million for the third quarter, or 29 cents per diluted share, on net
sales from continuing operations of $1.6 billion. This compares with net
earnings of $1.116 billion on net sales from continuing operations of
$1.5 billion for the same period last year.
Earnings for the third quarter of 2011 include after-tax gains of $91
million from special items, including an $83 million benefit related to
foreign tax credits. Excluding these items, the company reported net
earnings of $66 million, or 12 cents per diluted share. This compares
with net earnings before special items of $81 million in the third
quarter of 2010. Earnings for the third quarter of 2010 included special
items of $1.035 billion, primarily income tax adjustments related to
Weyerhaeuser's conversion to a real estate investment trust (REIT).
'All of our businesses faced challenging markets in the third quarter,
as the U.S. housing market languished and we experienced a slowdown in
demand from China,? said Dan Fulton, president and chief executive
officer. 'We remain focused on improving performance with today's level
of demand, while being prepared to flex all of our operations as markets
improve.?
?
?
?
?
?
?
?
?
WEYERHAEUSER FINANCIAL HIGHLIGHTS 2011 2010 (millions, except per share data) 2Q
?
?
?
3Q
?
?
?
3Q
Net sales
?
?
?
From continuing operations
$1,610
$1,569
$1,514
From discontinued operations (1)
$163
$83
$150
Total net sales
$1,773
$1,652
$1,664
?
Net earnings
From continuing operations
$23
$133
$1,112
From discontinued operations (1)
($13)
$24
$4
Net earnings
$10
$157
$1,116
Weighted average shares outstanding, diluted (2)
541
540
318
Earnings per diluted share
From continuing operations
$0.04
$0.25
$3.49
From discontinued operations (1)
($0.02)
$0.04
$0.01
Earnings per diluted share
$0.02
$0.29
$3.50
?
Net earnings before special items
$32
$66
$81
Earnings per diluted share before special items
$0.06
$0.12
$0.25
?
Net cash from operations
$114
$117
$97
Net change in cash and cash equivalents
($582)
$90
($478)
Cash and cash equivalents at end of period
$881
$971
$1,368
?
hardwoods and Westwood Shipping Lines businesses, which were sold
in the third quarter of 2011.
?
substantially during the third 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
?
?
?
3Q 2011
?
?
?
Change
Net sales
$288
$252
($36)
Contribution to pre-tax earnings before special items
$112
$62
($50)
Pre-tax gain from special items
$0
$0
$0
GAAP contribution to pre-tax earnings
$112
$62
($50)
?
in the third quarter compared with the second. Earnings from disposition
of non-strategic timberlands declined to $4 million, compared with $32
million in the second quarter. Average selling prices for Western logs
were lower due to weakening Chinese and domestic markets. Selling prices
for Southern logs also declined. The segment's silviculture and road
costs increased seasonally. Fee harvest increased slightly compared with
the second quarter, as a decline in Western harvest volume was offset by
increased volume in the South.
non-strategic timberlands, Weyerhaeuser expects lower earnings from the
Timberlands segment in the fourth quarter due to reduced fee harvest
volumes and lower selling prices for Western logs. The company also
anticipates seasonally higher road and silviculture costs.
?
?
?
?
?
?
?
?
?
?
?
?
FINANCIAL HIGHLIGHTS (millions) 2Q 2011
?
?
?
3Q 2011
?
?
?
Change
Net sales
From continuing operations
$605
$603
($2)
From discontinued operations
$97
$27
($70)
Total net sales
$702
$630
($72)
Contribution (charge) to pre-tax earnings before special items
From continuing operations
($53)
($43)
$10
From discontinued operations
$1
($4)
($5)
Total charge to pre-tax earnings before special items
($52)
($47)
$5
Pre-tax charge from special items
($9)
($46)
($37)
GAAP charge to pre-tax earnings
($61)
($93)
($32)
?
$10 million compared with the second quarter, as reduced log costs were
partially offset by slightly lower sales volumes across most product
lines. Operating results for the discontinued hardwoods operations
declined $5 million compared with the second quarter. Weyerhaeuser
completed the sale of the hardwoods operations in the third quarter.
Third quarter special charges of $46 million are primarily comprised of
asset impairments due to the permanent closure of four engineered wood
products facilities, restructuring costs, and charges related to the
sale of the hardwoods operations. Second quarter included special
charges of $9 million related to the sale of the hardwoods operations.
anticipates a larger loss from continuing operations in the fourth
quarter due to seasonally weaker market conditions. The company expects
lower selling prices for lumber and oriented strand board and reduced
sales volumes and operating rates across all product lines.
?
?
?
?
?
?
?
?
?
?
?
?
FINANCIAL HIGHLIGHTS (millions) 2Q 2011
?
?
?
3Q 2011
?
?
?
Change
Net sales
$526
$503
($23)
Contribution to pre-tax earnings before special items
$80
$135
$55
Pre-tax gain from special items
$0
$0
$0
GAAP contribution to pre-tax earnings
$80
$135
$55
?
compared with second quarter. Maintenance costs decreased and production
increased as the segment had no annual maintenance outages, compared
with four planned outages in the second quarter. These improvements were
partially offset by lower selling prices for pulp.
from the Cellulose Fibers segment in the fourth quarter. The company
anticipates lower selling prices for pulp and slightly higher shipment
volumes.
?
?
?
?
?
?
?
?
?
?
?
?
FINANCIAL HIGHLIGHTS (millions) 2Q 2011
?
?
?
3Q 2011
?
?
?
Change
Net sales
$191
$211
$20
Contribution to pre-tax earnings before special items
$8
$10
$2
Pre-tax gain from special items
$0
$0
$0
GAAP contribution to pre-tax earnings
$8
$10
$2
?
compared with the second quarter. Home closings increased 11 percent to
508 single-family homes. Average margins on homes closed improved due to
mix. Third quarter included no earnings from the sale of land and lots,
compared with $4 million in the second quarter.
single-family homebuilding operations in the fourth quarter due to
seasonally higher home closing volume.
?
?
?
?
?
?
?
?
?
?
?
?
FINANCIAL HIGHLIGHTS (millions) 2Q 2011
?
?
?
3Q 2011
?
?
?
Change
Charge to pre-tax earnings before special items
From continuing operations
($11)
($16)
($5)
From discontinued operations
($11)
($4)
$7
Total charge to pre-tax earnings before special items
($22)
($20)
$2
Pre-tax gain from special items
$0
$58
$58
GAAP contribution (charge) to pre-tax earnings
($22)
$38
$60
?
Corporate and Other results from continuing operations declined $5
million, as foreign exchange losses reduced the segment's results by $18
million compared with the second quarter. This was offset primarily by
$7 million of additional gains related to share-based compensation, as a
decline in the company's stock price resulted in a larger mark-to-market
adjustment.
Third quarter includes pre-tax gains of $58 million from special items,
primarily the sale of 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 hold a live conference call at 7 a.m. Pacific (10 a.m.
Eastern) on Oct. 28 to discuss third quarter results.
To access the conference call from within North America, dial (877)
296-9413 (access code ? 29869197) at least 15 minutes prior to the call.
Those calling from outside North America should dial 1-(706) 679-2458
(access code ? 29869197). Replays will be available for one week at
(800) 642-1687 (access code ? 29869197) from within North America and at
1-(706) 645-9291 (access code ? 29869197) 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 'Q3 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 for the fourth quarter of 2011, including reduced fee
harvest volumes, lower selling prices for Western logs, seasonally
higher road and silviculture expenses, and lower earnings in the
Timberlands segment excluding earnings from disposition of non-strategic
timberlands; seasonally weaker market conditions, lower selling prices
for lumber and oriented strand board, reduced sales volumes and
operating rates across all products lines, and a larger loss from
continuing operations in the Wood Products segment excluding special
items; lower selling prices for pulp, slightly higher shipment volumes,
and slightly lower earnings in the Cellulose Fiber segment; and higher
earnings from single-family homebuilding operations, and seasonally
higher home closing volume 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;
the successful execution of internal performance plans, including
restructurings and cost reduction initiatives;
the level of competition from domestic and foreign producers;
raw material prices;
energy prices;
transportation costs;
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
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.
?
Preliminary results, subject to audit
?
?
?
?
?
?
?
?
?
in millions
Q2 Q3 Year-to-date June 30,
2011September 30,
2011
?
?
September 30,
2010September 30,
2011
?
?
September 30,
2010Net sales and revenues $ 1,610 $ 1,569 $ 1,514 $ 4,601 $ 4,438
Cost of products sold
1,343
?
1,283
?
1,193
?
3,803
?
3,609
?
Gross margin 267 286 321 798 829
Selling, general and administrative expenses
145
135
161
452
479
Research and development expenses
7
7
8
21
24
Charges for restructuring, closures and impairments
7
41
16
52
22
Other operating costs (income), net
(19
)
3
?
(24
)
(190
)
(96
)
Operating income 127 100 160 463 400
Interest income and other
9
15
19
35
73
Interest expense, net of capitalized interest
(117
)
(86
)
(95
)
(296
)
(356
)
Earnings from continuing operations before income taxes
19
29
84
202
117
Income taxes (1)
4
?
104
?
1,028
?
52
?
986
?
Earnings from continuing operations
23
133
1,112
254
1,103
Earnings (loss) from discontinued operations, net of income taxes
(13
)
24
?
4
?
12
?
9
?
Net earnings
10
157
1,116
266
1,112
Less: net earnings attributable to noncontrolling interests
?
?
?
?
?
?
?
?
(2
)
Net earnings attributable to Weyerhaeuser common shareholders $ 10
?
$ 157
?
$ 1,116
?
$ 266
?
$ 1,110
?
(1) Year-to-date 2011 includes an $83 million tax benefit
related to foreign tax credits. Year-to-date 2010 includes $1.043
billion income for the reversal of deferred tax liabilities
associated with the conversion to REIT status partially offset by
$39 million for tax charges related to the elimination of the
ability to claim a tax deduction provided to retirees and reimbursed
under the Medicare Part D subsidy beginning in 2013, state tax law
and rate changes, unrecognized tax benefits and other adjustments.
?
Per Share Information
?
Q2 Q3 Year-to-date June 30,
2011September 30,
2011September 30,
2010September 30,
2011September 30,
2010
Earnings (loss) per share attributable to Weyerhaeuser common
shareholders, basic:
Continuing operations
$
0.04
$
0.25
$
3.51
$
0.47
$
4.45
Discontinued operations
(0.02
)
0.04
?
0.01
?
0.02
?
0.04
?
Net earnings per share
$
0.02
?
$
0.29
?
$
3.52
?
$
0.49
?
$
4.49
?
Earnings (loss) per share attributable to Weyerhaeuser common
shareholders, diluted:
Continuing operations
$
0.04
$
0.25
$
3.49
$
0.47
$
4.44
Discontinued operations
(0.02
)
0.04
?
0.01
?
0.02
?
0.04
?
Net earnings per share
$
0.02
?
$
0.29
?
$
3.50
?
$
0.49
?
$
4.48
?
Dividends paid per share
$
0.15
$
0.15
$
26.46
$
0.45
$
26.56
Weighted average shares outstanding (in thousands):
Basic
538,599
537,969
317,369
537,906
247,192
Diluted
541,095
539,827
318,360
540,469
247,879
Common shares outstanding at end of period (in thousands)
538,640
537,210
535,935
537,210
535,935
?
?
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
?
?
?
?
Forest Products:
Current assets:
Cash and cash equivalents
$
877
$
969
$
1,466
Receivables, less allowances
533
467
451
Inventories
513
468
478
Prepaid expenses
115
81
81
Deferred tax assets
167
?
106
?
113
Total current assets
2,205
2,091
2,589
Property and equipment, net
3,083
2,943
3,217
Construction in progress
137
122
123
Timber and timberlands at cost, less depletion charged to disposals
3,987
3,997
4,035
Investments in and advances to equity affiliates
191
194
194
Goodwill
40
40
40
Other assets
511
558
363
Restricted assets held by special purpose entities
915
?
914
?
915
11,069
?
10,859
?
11,476
Real Estate:
Cash and cash equivalents
4
2
1
Receivables, less allowances
36
31
51
Real estate in process of development and for sale
535
549
517
Land being processed for development
988
989
974
Investments in and advances to equity affiliates
15
15
16
Deferred tax assets
263
260
266
Other assets
121
122
120
Consolidated assets not owned
8
?
8
?
8
1,970
?
1,976
?
1,953
Total assets $ 13,039
?
$ 12,835
?
$ 13,429
?
Forest Products:
Current liabilities:
Current maturities of long-term debt
$
?
$
11
$
?
Accounts payable
326
305
340
Accrued liabilities
712
?
672
?
734
Total current liabilities
1,038
988
1,074
Long-term debt
4,192
4,181
4,710
Deferred income taxes
533
440
366
Deferred pension and other postretirement benefits
835
797
930
Other liabilities
412
335
393
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose
entities
774
?
773
?
772
7,784
?
7,514
?
8,245
Real Estate:
Long-term debt
318
318
350
Other liabilities
193
196
212
Consolidated liabilities not owned
8
?
8
?
8
519
?
522
?
570
Total liabilities
8,303
?
8,036
?
8,815
Equity:
Total Weyerhaeuser shareholders' interest
4,734
4,795
4,612
Noncontrolling interests
2
?
4
?
2
Total equity
4,736
?
4,799
?
4,614
Total liabilities and equity $ 13,039
?
$ 12,835
?
$ 13,429
?
?
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
Q2 Q3 Year-to-date June 30,
2011September 30,
2011
?
?
September 30,
2010September 30,
2011
?
?
September 30,
2010Cash flows from operations:
Net earnings
$
10
$
157
$
1,116
$
266
$
1,112
Noncash charges (credits) to income:
Depreciation, depletion and amortization
120
120
124
363
376
Income taxes, net
(13
)
(103
)
(1,030
)
(77
)
(940
)
Pension and other postretirement benefits
19
17
(8
)
60
(19
)
Share-based compensation expense
3
2
4
19
16
Charges for impairment of assets
2
34
2
37
5
Net gains on dispositions of assets and operations
(20
)
(51
)
(10
)
(227
)
(103
)
Foreign exchange transaction (gains) losses
(1
)
19
(4
)
11
(4
)
Change in:
Receivables less allowances
(10
)
35
12
(34
)
(103
)
Receivable for taxes
?
6
(30
)
7
521
Inventories
35
(9
)
(7
)
(40
)
(32
)
Real estate and land
(32
)
(15
)
(6
)
(49
)
(43
)
Prepaid expenses
(4
)
?
(1
)
(14
)
(8
)
Accounts payable and accrued liabilities
6
(61
)
(19
)
(106
)
(72
)
Deposits on land positions and other assets
(4
)
(5
)
(10
)
(9
)
(13
)
Pension contributions
(9
)
(17
)
(68
)
(32
)
(206
)
Other
12
?
(12
)
32
?
(31
)
(23
)
Net cash from operations 114
?
117
?
97
?
144
?
464
?
?
Cash flows from investing activities:
Property and equipment
(39
)
(62
)
(37
)
(136
)
(115
)
Timberlands reforestation
(7
)
(4
)
(6
)
(23
)
(26
)
Redemption of short-term investments
?
?
?
?
47
Proceeds from sale of assets and operations
3
157
30
353
160
Repayments from pension trust
?
?
?
?
146
Other
(10
)
(1
)
14
?
(6
)
3
?
Cash from investing activities (53 ) 90
?
1
?
188
?
215
?
?
Cash flows from financing activities:
Notes, commercial paper borrowings and revolving credit facilities,
net
?
?
?
?
(3
)
Cash dividends
(80
)
(81
)
(560
)
(242
)
(581
)
Change in book overdrafts
1
(8
)
(15
)
(26
)
(27
)
Payments on debt
(548
)
?
(2
)
(550
)
(567
)
Exercises of stock options
3
?
?
37
?
Repurchase of common stock
?
(24
)
?
(24
)
?
Other
(19
)
(4
)
1
?
(23
)
(2
)
Cash from financing activities (643 ) (117 ) (576 ) (828 ) (1,180 )
?
Net change in cash and cash equivalents
(582
)
90
(478
)
(496
)
(501
)
Cash and cash equivalents at beginning of period
1,463
?
881
?
1,846
?
1,467
?
1,869
?
Cash and cash equivalents at end of period
$
881
?
$
971
?
$
1,368
?
$
971
?
$
1,368
?
Cash paid (received) during the year for:
Interest, net of amount capitalized
$
91
$
115
$
133
$
362
$
406
Income taxes
$
13
$
6
$
1
$
21
$
(444
)
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
Q2 Q3 Year-to-date June 30,
2011September 30,
2011
?
?
September 30,
2010September 30,
2011
?
?
September 30,
2010Net earnings $ 10 $ 157 $ 1,116 $ 266 $ 1,110
Income tax adjustments
?
(83
)
(1,035
)
(83
)
(1,004
)
Gain on sale of wood products assets
?
?
?
?
(31
)
Loss on early extinguishment of debt
16
?
?
16
33
Gain on sale of 82,000 acres of non-strategic timberlands
?
?
?
(96
)
?
Charges for restructuring and impairments
?
24
?
24
?
Charges related to the sale of hardwoods
6
8
?
14
?
Gain on sale of properties
?
(9
)
?
(9
)
?
Gain on sale of Westwood Shipping Lines
?
?
(31
)
?
?
(31
)
?
?
Net earnings before special items $ 32
?
$ 66
?
$ 81
?
$ 101
?
$ 108
?
?
Q2 Q3 Year-to-date June 30,
2011September 30,
2011September 30,
2010September 30,
2011September 30,
2010Net earnings per diluted share $ 0.02 $ 0.29 $ 3.50 $ 0.49 $ 4.48
Income tax adjustments
?
(0.15
)
(3.25
)
(0.15
)
(4.05
)
Gain on sale of wood products assets
?
?
?
?
(0.13
)
Loss on early extinguishment of debt
0.03
?
?
0.03
0.13
Gain on sale of 82,000 acres of non-strategic timberlands
?
?
?
(0.18
)
?
Charges for restructuring and impairments
?
0.04
?
0.04
?
Charges related to the sale of hardwoods
0.01
0.01
?
0.03
?
Gain on sale of properties
?
(0.01
)
?
(0.01
)
?
Gain on sale of Westwood Shipping Lines
?
?
(0.06
)
?
?
(0.06
)
?
?
Net earnings before special items per diluted share $ 0.06
?
$ 0.12
?
$ 0.25
?
$ 0.19
?
$ 0.43
?
?
Selected Total Company Items, Excluding Discontinued Operations
?
in millions
Q2 Q3 Year-to-date June 30,
2011September 30,
2011September 30,
2010September 30,
2011September 30,
2010
Depreciation, depletion and amortization:
Cost of products sold
$
105
$
108
$
106
$
318
$
321
Selling, general and administrative expenses
13
?
12
?
16
?
41
?
49
?
Total depreciation, depletion and amortization
$
118
?
$
120
?
$
122
?
$
359
?
$
370
?
?
Pension and postretirement costs (credits):
Pension and postretirement costs allocated to business segments
$
16
$
9
$
8
$
36
$
32
Pension and postretirement costs (credits) retained by Corporate
segment
3
?
6
?
(18
)
21
?
(56
)
Total company pension and postretirement costs (credits)
$
19
?
$
15
?
$
(10
)
$
57
?
$
(24
)
?
Total decrease (increase) in Forest Products working capital
$
(21
)
$
69
$
24
$
(110
)
$
592
Cash spent for capital expenditures
$
(44
)
$
(65
)
$
(43
)
$
(156
)
$
(141
)
?
?
?
?
?
?
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Trade sales and revenues (unaffiliated customers)
$
288
$
252
$
240
$
770
$
667
Intersegment sales
134
?
154
?
145
?
479
?
439
?
Total net sales and revenues 422 406 385 1,249 1,106
Cost of products sold
296
?
321
?
294
?
937
?
831
?
Gross margin 126 85 91 312 275
Selling, general and administrative expenses
24
23
20
70
63
Research and development expenses
4
4
5
12
14
Charges for restructuring, closures and impairments
?
?
1
?
2
Other operating income, net
(13
)
(3
)
(9
)
(182
)
(28
)
Operating income 111 61 74 412 224
Interest income and other
1
?
1
?
1
?
3
?
2
?
Net contribution to earnings $ 112
?
$ 62
?
$ 75
?
$ 415
?
$ 226
?
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
35
$
34
$
30
$
100
$
88
Total decrease (increase) in working capital
$
(40
)
$
32
$
20
$
(24
)
$
(4
)
Cash spent for capital expenditures
$
(14
)
$
(12
)
$
(17
)
$
(40
)
$
(52
)
?
(Pre-Tax)
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Gain on sale of 82,000 acres of non-strategic timberlands
$
?
$
?
$
?
$
152
$
?
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Third Party Net Sales and Revenue (millions)
?
Logs:
West
$
152
$
144
$
110
$
406
$
317
South
49
53
40
143
104
Canada
1
?
4
?
3
?
12
?
12
?
Total Logs
202
201
153
561
433
Pay as cut timber sales
8
9
8
25
25
Timberlands exchanges and dispositions
39
2
41
62
89
Higher and better use land sales
2
5
6
11
18
Minerals, oil and gas
15
14
15
43
46
Products from international operations
21
21
17
59
49
Other products
1
?
?
?
?
?
9
?
7
?
Total
$
288
?
$
252
?
$
240
?
$
770
?
$
667
?
Logs
Third Party Sales
Realizations
(per cubic meter)
West
$
109.42
$
104.27
$
91.45
$
104.97
$
91.78
South
$
40.59
$
39.11
$
43.63
$
40.21
$
43.78
Canada
$
42.79
$
33.73
$
29.94
$
34.91
$
32.83
International
$
21.41
$
22.09
$
17.96
$
20.82
$
19.30
Logs
Third Party Sales
Volumes
(cubic meters,
thousands)
West
1,391
1,385
1,205
3,871
3,456
South
1,211
1,336
903
3,552
2,364
Canada
23
116
92
333
366
International
79
?
88
?
63
?
239
?
209
?
Total
2,704
?
2,925
?
2,263
?
7,995
?
6,395
?
Logs
Fee Depletion
(cubic meters,
thousands)
West
1,747
1,604
1,444
4,962
4,279
South
2,355
2,535
2,060
7,070
6,081
International
221
?
270
?
89
?
589
?
270
?
Total
4,323
?
4,409
?
3,593
?
12,621
?
10,630
?
?
?
?
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Trade sales and revenues (unaffiliated customers)
$
605
$
603
$
537
$
1,734
$
1,737
Intersegment sales
21
?
20
?
17
?
61
?
47
?
Total net sales and revenues 626 623 554 1,795 1,784
Cost of products sold
629
?
620
?
587
?
1,785
?
1,762
?
Gross margin (3 ) 3 (33 ) 10 22
Selling, general and administrative expenses
49
47
62
146
192
Research and development expenses
1
1
1
3
4
Charges for restructuring, closures and impairments
4
38
9
44
11
Other operating income, net
(4
)
(6
)
(3
)
(15
)
(48
)
Operating loss (53 ) (77 ) (102 ) (168 ) (137 )
Interest income and other
?
?
1
?
?
?
3
?
2
?
Net contribution to earnings from continuing operations
(53
)
(76
)
(102
)
(165
)
(135
)
Net contribution to earnings from discontinued hardwoods operations
(8
)
(17
)
2
?
(25
)
13
?
Net contribution to earnings $ (61 ) $ (93 ) $ (100 ) $ (190 ) $ (122 )
?
?
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
35
$
36
$
42
$
110
$
128
Total decrease (increase) in working capital
$
43
$
16
$
59
$
(56
)
$
(10
)
Cash spent for capital expenditures
$
(7
)
$
(8
)
$
(5
)
$
(21
)
$
(12
)
?
(Pre-Tax)
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Gain on sale of wood products assets
$
?
$
?
$
?
$
?
$
52
Charges for restructuring and impairments
?
(38
)
?
(38
)
?
Gain on sale of properties
?
?
5
?
?
?
5
?
?
?
Total special items from continuing operations
?
(33
)
?
(33
)
52
Charges related to the sale of discontinued hardwoods operations
(9
)
(13
)
?
?
(22
)
?
?
Total $
?
(9 ) $ (46 ) $ ?
?
$ (55 ) $ 52
?
?
?
?
?
?
?
in millions, except for third-party sales realizations
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Structural Lumber
(board feet)
?
Third Party Net Sales and Revenue
$
290
$
281
$
254
$
831
$
803
Third Party Sales Realizations
$
300.84
$
300.74
$
286.84
$
305.18
$
317.08
Third Party Sales Volumes
963
934
889
2,723
2,534
Production Volumes
903
890
857
2,686
2,504
Engineered Solid
Section
(cubic feet)
Third Party Net Sales and Revenue
$
71
$
65
$
68
$
198
$
213
Third Party Sales Realizations
$
1,904.83
$
1,865.05
$
1,848.76
$
1,874.76
$
1,782.89
Third Party Sales Volumes
4
4
4
11
12
Production Volumes
3
4
4
11
12
Engineered
I-joists
(lineal feet)
Third Party Net Sales and Revenue
$
48
$
44
$
39
$
125
$
136
Third Party Sales Realizations
$
1,258.14
$
1,275.43
$
1,246.02
$
1,266.35
$
1,161.32
Third Party Sales Volumes
38
34
31
98
116
Production Volumes
34
32
25
96
107
Oriented Strand
Board
(square feet 3/8')
Third Party Net Sales and Revenue
$
89
$
97
$
80
$
271
$
262
Third Party Sales Realizations
$
178.43
$
176.33
$
185.07
$
181.75
$
218.16
Third Party Sales Volumes
498
549
428
1,492
1,199
Production Volumes
518
574
446
1,586
1,292
Softwood Plywood (square feet 3/8')
Third Party Net Sales and Revenue
$
16
$
18
$
19
$
51
$
58
Third Party Sales Realizations
$
271.01
$
260.23
$
280.78
$
264.81
$
287.69
Third Party Sales Volumes
61
69
68
193
203
Production Volumes
48
49
57
150
169
Hardwood Lumber (board feet)
Third Party Net Sales and Revenue
$
63
$
17
$
54
$
138
$
172
Third Party Sales Realizations
$
858.51
$
861.33
$
836.60
$
853.30
$
828.12
Third Party Sales Volumes
73
20
65
162
208
Production Volumes
62
15
60
135
180
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Total net sales and revenues $ 526 $ 503 $ 522 $ 1,535 $ 1,400
Cost of products sold
422
?
349
?
326
?
1,171
?
1,068
?
Gross margin 104 154 196 364 332
Selling, general and administrative expenses
24
24
21
70
61
Research and development expenses
2
2
2
6
6
Other operating income, net
(3
)
(4
)
(6
)
(12
)
(13
)
Operating income 81 132 179 300 278
Interest income and other
(1
)
3
?
2
?
1
?
(4
)
Net contribution to earnings $ 80
?
$ 135
?
$ 181
?
$ 301
?
$ 274
?
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
35
$
37
$
34
$
108
$
106
Total increase in working capital
$
(32
)
$
(9
)
$
(39
)
$
(21
)
$
(73
)
Cash spent for capital expenditures
$
(23
)
$
(43
)
$
(19
)
$
(92
)
$
(73
)
?
?
?
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Pulp
(air-dry metric
tons)
?
Third Party Net Sales and Revenue (millions)
$
409
$
391
$
412
$
1,198
$
1,087
Third Party Sales Realizations
$
960.04
$
919.65
$
926.28
$
930.47
$
849.47
Third Party Sales Volumes (thousands)
426
426
445
1,288
1,280
Production Volumes (thousands)
410
462
470
1,309
1,321
Liquid
Packaging
Board
(tons)
Third Party Net Sales and Revenue (millions)
$
93
$
87
$
88
$
265
$
249
Third Party Sales Realizations
$
1,194.46
$
1,164.99
$
1,103.48
$
1,169.58
$
1,083.95
Third Party Sales Volumes (thousands)
77
76
80
227
230
Production Volumes (thousands)
80
81
82
228
232
?
?
?
?
?
?
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
?
in millions
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Total net sales and revenues $ 191 $ 211 $ 210 $ 562 $ 618
Cost of products sold
147
?
164
?
158
?
437
?
468
?
Gross margin 44 47 52 125 150
Selling, general and administrative expenses
36
36
40
107
115
Charges for restructuring, closures and impairments
1
2
1
4
4
Other operating income, net
?
?
?
?
(2
)
?
?
?
?
Operating income 7 9 13 14 31
Interest income and other
1
1
7
3
49
Loss attributable to noncontrolling interests
?
?
?
?
?
?
?
?
(2
)
Net contribution to earnings $ 8
?
$ 10
?
$ 20
?
$ 17
?
$ 78
?
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Depreciation and amortization
$
3
$
3
$
4
$
9
$
12
Cash spent for capital expenditures
$
?
$
(1
)
$
(2
)
$
(2
)
$
(3
)
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Net sales and revenues:
Single-family housing
$
180
$
204
$
200
$
536
$
576
Land
11
5
9
23
39
Other
?
?
2
?
1
?
3
?
3
?
Total net sales and revenue
$
191
?
$
211
?
$
210
?
$
562
?
$
618
?
Single-family homes sold
521
440
418
1,496
1,529
Single-family homes closed
459
508
501
1,330
1,519
Single-family homes sold but not closed (backlog)
673
605
660
605
660
Single-family average price of homes closed (in thousands)
$
391
$
403
$
400
$
403
$
379
Single-family home gross margin - excluding impairments (1)
22.4
%
23.0
%
24.3
%
22.4
%
22.9
%
?
(1) Single-family gross margin excluding impairments equals
revenue less cost of sales and period costs (other than
impairments and deposit write-offs).
?
?
?
?
?
?
?
?
?
?
?
?
?
Preliminary results, subject to audit
?
Corporate and Other includes 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 associated
with financing and other general and administrative expenses that
are not allocated to the business segments. Historically,
Corporate and Other included the results of our transportation
operations. This included our five short line railroads that were
sold at the end of 2010 and Westwood Shipping Lines that was sold
on September 30, 2011. Westwood results are included in our
results of discontinued operations.
?
?
in millions
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Trade sales and revenues (unaffiliated customers)
$
?
$
?
$
5
$
?
$
16
Intersegment sales
?
?
?
?
1
?
?
?
2
?
Total net sales and revenues ? ? 6 ? 18
Cost of products sold
4
?
3
?
(9
)
13
?
(32
)
Gross margin (4 ) (3 ) 15 (13 ) 50
Selling, general and administrative expenses
12
5
18
59
48
Charges for restructuring, closures and impairments
2
1
6
4
6
Other operating costs (income), net
1
?
16
?
(5
)
19
?
(8
)
Operating income (loss) (19 ) (25 ) (4 ) (95 ) 4
Interest income and other
8
?
9
?
9
?
25
?
24
?
Net contribution to earnings from continuing operations
(11
)
(16
)
5
(70
)
28
Net contribution to earnings from discontinued operations (1)
(11
)
54
?
5
?
45
?
2
?
Net contribution to earnings $ (22 ) $ 38
?
$ 10
?
$ (25 ) $ 30
?
?
second quarter 2011 includes charges of $13 million related to
businesses we have divested in prior years. Third quarter 2011
also includes a $49 million gain on the sale of Westwood Shipping
Lines.
?
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Depreciation, depletion and amortization
$
10
$
10
$
12
$
32
$
36
Total decrease (increase) in working capital
$
8
$
30
$
(16
)
$
(9
)
$
679
Cash spent for capital expenditures
$
?
$
(1
)
$
?
$
(1
)
$
(1
)
Share-based compensation expense (income)
$
(5
)
$
(12
)
$
8
$
(1
)
$
7
Foreign exchange losses (gains)
$
(1
)
$
17
$
(4
)
$
10
$
(5
)
Pension and postretirement costs (credits) retained by Corporate
segment
$
3
$
6
$
(18
)
$
21
$
(56
)
?
(Pre-Tax)
?
Q2.2011
Q3.2011
Q3.2010
YTD.2011
YTD.2010
Gain on sale of property
$
?
$
9
$
?
$
9
$
?
Gain on sale of Westwood Shipping Lines
?
?
49
?
?
?
49
?
?
?
Total $ ?
?
$ 58
?
$ ?
?
$ 58
?
$ ?
?
Weyerhaeuser Company
Media
Bruce Amundson,253-924-3047
or
Analysts
Kathryn
McAuley,253-924-2058