Weyerhaeuser Reports Third Quarter Results

Fri Oct 26, 2012 3:05am EDT

* Reuters is not responsible for the content in this press release.

Weyerhaeuser Reports Third Quarter Results

PR Newswire

FEDERAL WAY, Wash., Oct. 26, 2012 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported net earnings of $117 million, or 22 cents per diluted share, for the third quarter. This compares with net earnings of $157 million, or 29 cents per diluted share, and net earnings before special items of $66 million, or 12 cents per diluted share, for the same period last year. Net sales for the third quarter of 2012 totaled $1.8 billion, compared with net sales from continuing operations of $1.6 billion for the third quarter of 2011.

(Logo:  http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO)

"This month the Board of Directors increased our quarterly dividend by 13 percent to 17 cents per share," said Dan Fulton, president and chief executive officer. "As our third quarter performance indicates, the operational improvements within our businesses are demonstrating clear results, and we are capitalizing on an improving housing market to the benefit of our shareholders."

 

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2012

2012

2011

(millions, except per share data)

2Q

3Q

3Q

Net sales from continuing operations

$1,793

$1,772

$1,569





Net earnings

$84

$117

$157(1)

Weighted average shares outstanding, diluted

540

542

540

Earnings per diluted share

$0.16

$0.22

$0.29(1)





Net earnings before special items

$47

$117

$66

Earnings per diluted share before special items

$0.09

$0.22

$0.12





Net cash from operations

$267

$122

$117

Net change in cash and cash equivalents

$133

($253)(2)

$90

Cash and cash equivalents at end of period

$861

$608

$971

(1) The third quarter of 2011 included net earnings of $24 million from discontinued operations, or $0.04 per diluted share, on net sales of $83 million. Discontinued operations include Weyerhaeuser's hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter of 2011.

(2) Net change in cash and cash equivalents for the third quarter of 2012 includes $181 million for debt repayment and a $97 million payment on a note related to a timber monetization undertaken in 2002. Weyerhaeuser expects to receive cash of approximately $110 million when the related financial investment matures in the fourth quarter of 2012.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

2Q 2012

3Q 2012

Change

Net sales

$262

$267

$5

Contribution to pre-tax earnings

$77

$80

$3

3Q 2012 Performance - The segment's earnings improved $3 million compared with the second quarter. Earnings from disposition of non-strategic timberlands increased $18 million. This was mostly offset by lower domestic selling prices for Western logs, and reduced export log realizations due to mix. Western fee harvest volumes declined slightly, and road costs increased seasonally. In the South, average selling prices for logs improved slightly compared with the second quarter, and fee harvest volumes were slightly higher.

4Q 2012 Outlook - Weyerhaeuser expects comparable earnings from the Timberlands segment in the fourth quarter. The company expects seasonally higher fee harvest volumes and slightly improved selling prices for Western logs in export and domestic markets, offset by increased silviculture costs.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

2Q 2012

3Q 2012

Change

Net sales

$776

$816

$40

Contribution to pre-tax earnings before special items

$30

$59

$29

Pre-tax special items

6

(6)

GAAP contribution to pre-tax earnings

$36

$59

$23

3Q 2012 Performance - The segment's earnings before special items improved $29 million compared with the second quarter due to strong markets and effective execution of performance improvement initiatives. Sales realizations were higher across nearly all product lines, most significantly in oriented strand board, which increased 25 percent. Sales volumes for engineered wood products increased, and volumes for lumber and oriented strand board declined slightly.

4Q 2012 Outlook - Weyerhaeuser anticipates lower earnings from the Wood Products segment in the fourth quarter due to seasonal declines in pricing and demand for most products.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

2Q 2012

3Q 2012

Change

Net sales

$459

$459

$0

Contribution to pre-tax earnings

$36

$78

$42

3Q 2012 Performance - The segment's earnings improved $42 million compared with the second quarter due to significantly lower maintenance costs, increased production and strong operating performance. Average pulp prices were flat. The segment completed one scheduled annual maintenance outage in the third quarter, compared with two in the second quarter.

4Q 2012 Outlook - Weyerhaeuser expects earnings from the Cellulose Fibers segment to be comparable to the third quarter. The company anticipates lower selling prices for fluff pulp, offset by increased sales volumes and slightly lower maintenance expense.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

2Q 2012

3Q 2012

Change

Net sales

$296

$230

($66)

Contribution to pre-tax earnings

$15

$17

$2

3Q 2012 Performance - The segment's earnings improved $2 million. Third quarter included earnings of $17 million from single-family homebuilding, compared with $3 million from single family homebuilding and $12 million from sale of land and lots in the second quarter. Home closings increased seasonally to 615 single-family homes, and average margins on homes closed were substantially higher due to mix. At the end of the third quarter the backlog of homes sold, but not closed, totaled 1,055 units, a 74 percent increase compared with one year ago.

4Q 2012 Outlook - Excluding any earnings from potential land sales, Weyerhaeuser expects slightly lower earnings from single-family homebuilding operations in the fourth quarter. The company anticipates a seasonal increase in home closings, lower average margins due to mix and higher selling expenses due to the additional closing volume.

ABOUT WEYERHAEUSER

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 2011, we employed approximately 12,800 employees in 11 countries. We have customers worldwide and generated $6.2 billion in sales from continuing operations in 2011. Our stock trades on the New York Stock exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on October 26 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 26.

To join the conference call from within North America, dial 877-296-9413 (access code – 41409566) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code – 41409566). Replays will be available for one week at 800-585-8367 (access code – 41409566) from within North America and at 404-537-3406 (access code – 41409566) from outside North America.

The webcast is available to both institutional and individual investors through the Thomson StreetEvents Network. Individual investors can listen to the call at www.fulldisclosure.com, Thomson's individual investor portal. Institutional investors can access the call via Thomson's password-protected site at www.streetevents.com.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 fourth quarter of 2012, including slightly improved selling prices and comparable sales volumes for Western logs, increased demand and slightly improved price realizations for export logs, slightly lower Southern log realizations due to mix and a small seasonal increase in fee harvest volume, increased silviculture costs, earnings from non-strategic land sales expected to be flat, and comparable earnings from the Timberlands segment; a seasonal decline in pricing and demand, and lower earnings from the Wood Products segment; lower selling prices for fluff pulp, increased sales volumes, lower maintenance expense, somewhat higher energy costs and comparable earnings from the Cellulose Fibers segment; and a seasonal increase in home closings, lower average margins due to mix, higher selling expenses due to additional volume, and slightly lower earnings from single-family homebuilding operations 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 U.S. and international 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;
  • performance of pension fund investments and related derivatives;
  • 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; 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, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.

For more information contact:
Media – Anthony Chavez, 253-924-7148
AnalystsKathryn McAuley, 253-924-2058

Exhibit 99.2

Weyerhaeuser Company

Q3.2012 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Operations











in millions

Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Net sales and revenues

$         1,793


$      1,772


$        1,569


$       5,059


$         4,601

Cost of products sold

1,516


1,424


1,283


4,230


3,803

Gross margin

277


348


286


829


798

Selling, general and administrative expenses

142


156


135


448


452

Research and development expenses

8


8


7


23


21

Charges for restructuring, closures and impairments

4


10


41


26


52

Other operating costs (income), net

(53)


(28)


3


(147)


(190)

Operating income

176


202


100


479


463

Interest income and other

11


15


15


38


35

Interest expense, net of capitalized interest

(86)


(87)


(86)


(260)


(296)

Earnings from continuing operations before income taxes

101


130


29


257


202

Income taxes

(17)


(13)


104


(15)


52

Earnings from continuing operations

84


117


133


242


254

Earnings from discontinued operations, net of income taxes

-


-


24


-


12

Net earnings attributable to Weyerhaeuser common shareholders

$               84


$        117


$          157


$          242


$            266












Per Share Information



Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted:










Continuing operations

$             0.16


$        0.22


$          0.25


$          0.45


$           0.47

Discontinued operations

-


-


0.04


-


0.02

Net earnings per share

$             0.16


$        0.22


$          0.29


$          0.45


$           0.49

Dividends paid per share

$             0.15


$        0.15


$          0.15


$          0.45


$           0.45

Weighted average shares outstanding (in thousands):










Basic

537,966


539,094


537,969


538,146


537,906

Diluted

540,033


542,311


539,827


540,694


540,469

Common shares outstanding at end of period (in thousands)

537,526


540,672


537,210


540,672


537,210











Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*











in millions

Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Operating income

$             176


$           202


$          100


$           479


$            463

Depreciation, depletion and amortization

113


112


120


338


359

Special items

(57)


-


33


(95)


(119)

Capitalized interest included in cost of products sold

19


6


5


28


17

EBITDA, excluding special items*

$             251


$          320


$          258


$          750


$            720































 

Weyerhaeuser Company

Q3.2012 Analyst Package

Preliminary results, subject to audit

Consolidated Balance Sheet







in millions

June 30, 2012


September 30, 2012


December 31, 2011







ASSETS






Forest Products:






Current assets:






Cash and cash equivalents

$         857


$              602


$            950

Receivables, less allowances

488


504


468

Receivables for taxes

6


97


22

Inventories

487


512


476

Prepaid expenses

86


83


68

Deferred tax assets

100


117


81

Total current assets

2,024


1,915


2,065

Property and equipment, net

2,770


2,759


2,901

Construction in progress

208


220


145

Timber and timberlands at cost, less depletion charged to disposals

3,963


3,967


3,978

Investments in and advances to equity affiliates

187


188


192

Goodwill

40


40


40

Other assets

435


352


444

Assets held by variable interest entities

916


914


916


10,543


10,355


10,681

Real Estate:






Cash and cash equivalents

4


6


3

Receivables, less allowances

38


36


41

Real estate in process of development and for sale

581


602


555

Land being processed for development

959


982


936

Investments in and advances to equity affiliates

20


20


21

Deferred tax assets

238


233


240

Other assets

89


98


113

Assets held by variable interest entities

3


6


8


1,932


1,983


1,917

Total assets

$    12,475


$          12,338


$       12,598







LIABILITIES AND EQUITY






Forest Products:






Current liabilities:






Current maturities of long-term debt

$         184


$               340


$              12

Accounts payable

360


356


336

Accrued liabilities

576


558


593

Total current liabilities

1,120


1,254


941

Long-term debt

4,005


3,842


4,181

Deferred income taxes

92


68


93

Deferred pension and other postretirement benefits

1,429


1,378


1,467

Other liabilities

400


477


408

Liabilities (nonrecourse to the company) held by variable interest entities

778


680


776


7,824


7,699


7,866

Real Estate:






Long-term debt

283


109


285

Other liabilities

171


177


172

Liabilities (nonrecourse to the company) held by variable interest entities

-


-


8


454


286


465

Total liabilities

8,278


7,985


8,331

Equity:






Total Weyerhaeuser shareholders' interest

4,186


4,340


4,263

Noncontrolling interests

11


13


4

Total equity

4,197


4,353


4,267

Total liabilities and equity

$     12,475


$          12,338


$       12,598













Weyerhaeuser Company

Q3.2012 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Cash Flows











in millions

Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Cash flows from operations:










Net earnings

$         84


$         117


$          157


$          242


$           266

Noncash charges (credits) to income:










Depreciation, depletion and amortization

113


112


120


338


363

Deferred income taxes, net

13


15


(103)


22


(77)

Pension and other postretirement benefits

(30)


19


17


(39)


60

Share-based compensation expense

8


10


2


28


19

Charges for impairment of assets

4


7


34


19


37

Net gains on dispositions of assets

(10)


(22)


(51)


(39)


(227)

Foreign exchange transaction (gains) losses

9


(10)


19


(8)


11

Change in:










Receivables less allowances

(18)


(10)


35


(33)


(34)

Receivable for taxes

18


(1)


8


15


(19)

Inventories

28


(22)


(9)


(34)


(40)

Real estate and land

7


(47)


(15)


(95)


(49)

Prepaid expenses

(12)


2


-


(18)


(14)

Accounts payable and accrued liabilities

65


1


(51)


10


(74)

Deposits on land positions and other assets

22


(11)


(5)


11


(9)

Pension and postretirement contributions

(33)


(41)


(27)


(109)


(64)

Other

(1)


3


(14)


19


(5)

Net cash from operations

267


122


117


329


144











Cash flows from investing activities:










Property and equipment

(68)


(75)


(62)


(197)


(136)

Timberlands reforestation

(7)


(5)


(4)


(22)


(23)

Proceeds from sale of assets

18


12


157


36


353

Payments of liabilities held by special purpose entities

-


(97)


-


(97)


-

Other

(1)


(1)


(1)


(1)


(6)

Cash from investing activities

(58)


(166)


90


(281)


188











Cash flows from financing activities:










Cash dividends

(80)


(81)


(81)


(242)


(242)

Change in book overdrafts

9


(12)


(8)


(32)


(26)

Payments on debt

(4)


(181)


-


(187)


(550)

Exercises of stock options

2


66


-


73


37

Repurchase of common stock

-


-


(24)


-


(24)

Other

(3)


(1)


(4)


(5)


(23)

Cash from financing activities

(76)


(209)


(117)


(393)


(828)











Net change in cash and cash equivalents

133


(253)


90


(345)


(496)

Cash and cash equivalents at beginning of period

728


861


881


953


1,467

Cash and cash equivalents at end of period

$       861


$         608


$          971


$          608


$          971

Cash paid (received) during the year for:










Interest, net of amount capitalized

$         57


$         117


$          115


$          290


$          362

Income taxes

$         (5)


$             1


$              6


$          (14)


$            21





















Weyerhaeuser Company





Total Company Statistics

Q3.2012 Analyst Package

Preliminary results, subject to audit

Special Items Included in Net Earnings











in millions

Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Net earnings

$              84


$         117


$          157


$          242


$            266

Gain on sale of 82,000 acres of non-strategic timberlands

-


-


-


-


(96)

Loss on early extinguishment of debt

-


-


-


-


16

Restructuring, impairments and other charges

-


-


24


10


24

Gain on postretirement plan amendment

(33)


-


-


(67)


-

Gain on sale of properties

(4)


-


(9)


(4)


(9)

Tax adjustments

-


-


(83)


(8)


(83)

Charges related to the sale of hardwoods

-


-


8


-


14

Gain on sale of Westwood Shipping Lines

-


-


(31)


-


(31)

Net earnings before special items

$            47


$          117


$           66


$          173


$            101







Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Net earnings per diluted share

$         0.16


$        0.22


$         0.29


$         0.45


$          0.49

Gain on sale of 82,000 acres of non-strategic timberlands

-


-


-


-


(0.18)

Loss on early extinguishment of debt

-


-


-


-


0.03

Restructuring, impairments and other charges

-


-


0.04


0.02


0.04

Gain on postretirement plan amendment

(0.06)


-


-


(0.12)


-

Gain on sale of properties

(0.01)


-


(0.01)


(0.01)


(0.01)

Tax adjustments

-


-


(0.15)


(0.01)


(0.15)

Charges related to the sale of hardwoods

-


-


0.01


-


0.03

Gain on sale of Westwood Shipping Lines

-


-


(0.06)


-


(0.06)

Net earnings before special items per diluted share

$        0.09


$         0.22


$         0.12


$         0.33


$           0.19


Selected Total Company Items, Excluding Discontinued Operations


in millions

Q2


Q3


Year-to-date


June 30, 2012


September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011

Depreciation, depletion and amortization:










Cost of products sold

$          103


$         102


$          108


$          307


$            318

Selling, general and administrative expenses

10


10


12


31


41

Total depreciation, depletion and amortization

$          113


$         112


$          120


$         338


$           359










Pension and postretirement costs:










Pension and postretirement costs allocated to business segments

$            14


$           12


$              9


$            39


$             34

Pension and postretirement costs not allocated

7


7


6


21


21

Total company pension and postretirement costs

$            21


$           19


$            15


$           60


$             55











Total decrease (increase) in Forest Products working capital (1)

$           103


$          (29)


$            70


$          (74)


$          (170)

Cash spent for capital expenditures

$           (75)


$          (80)


$           (65)


$        (219)


$          (156)

(1)Working capital does not include cash balances.



























 

Weyerhaeuser Company





Timberlands Segment

Q3.2012 Analyst Package

Preliminary results, subject to audit












Segment Statement of Operations












in millions


Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Sales to and revenues from unaffiliated customers

$        262


$        267


$        252


$        779


$        770

Intersegment sales

146


162


154


498


479

Total net sales and revenues

408


429


406


1,277


1,249

Cost of products sold

313


336


322


1,002


932

Gross margin

95


93


84


275


317

Selling, general and administrative expenses

23


24


23


72


70

Research and development expenses

5


4


4


13


12

Other operating income, net

(10)


(14)


(3)


(35)


(182)

Operating income

77


79


60


225


417

Interest income and other

-


1


1


2


3

Net contribution to earnings

$         77


$         80


$         61


$       227


$       420












Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*












in millions


Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Operating income

$         77


$         79


$         60


$       225


$       417

Depreciation, depletion and amortization

34


35


35


104


102

Special items

-


-


-


-


(152)

EBITDA, excluding special items*

$       111


$       114


$         95


$       329


$       367












Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Gain on sale of 82,000 acres of non-strategic timberlands

$           -


$           -


$           -


$           -


$        152












Selected Segment Items














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Total decrease (increase) in working capital (1)

$            6


$          19


$          60


$          16


$        (20)

Cash spent for capital expenditures

$        (15)


$        (17)


$        (12)


$        (44)


$        (40)

(1)Working capital does not include cash balances.


















Segment Statistics














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Third Party 
Net Sales
and Revenue
(millions)

Logs:










West

$        146


$        132


$        144


$        408


$        406

South

56


60


53


166


143

Canada

2


5


4


14


12

Total Logs

204


197


201


588


561

Pay as cut timber sales

9


8


9


28


25

Timberlands exchanges

7


24


2


39


62

Higher and better use land sales

5


4


5


13


11

Minerals, oil and gas

7


8


14


22


43

Products from international operations

29


26


21


80


59

Other products

1


-


-


9


9

Total

$        262


$        267


$        252


$        779


$        770

 

Logs
Third Party Sales
Realizations
(per cubic meter)

West

$     94.47


$     89.28


$   104.27


$     94.09


$   104.97

South

$     41.15


$     42.04


$     39.11


$     41.26


$     40.21

Canada

$     34.66


$     35.23


$     33.73


$     35.74


$     34.91

International

$     23.53


$     23.76


$     33.73


$     23.45


$     35.65

 

Logs
Third Party Sales
Volumes
(cubic meters,
thousands)

West

1,551


1,480


1,385


4,339


3,871

South

1,354


1,430


1,336


4,012


3,552

Canada

54


133


116


392


333

International

82


99


88


259


239

Total

3,041


3,142


2,925


9,002


7,995

 

Logs
Fee Harvest Volumes
(cubic meters,
thousands)

West

1,831


1,784


1,604


5,294


4,962

South

2,788


2,809


2,535


8,311


7,070

International

161


198


270


531


589

Total

4,780


4,791


4,409


14,136


12,621























Weyerhaeuser Company





Wood Products Segment

Q3.2012 Analyst Package

Preliminary results, subject to audit












Segment Statement of Operations  












in millions


Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Sales to and revenues from unaffiliated customers

$     776


$     816


$     603


$    2,226


$    1,734

Intersegment sales

20


18


20


58


61

Total net sales and revenues

796


834


623


2,284


1,795

Cost of products sold

708


713


624


2,032


1,786

Gross margin

88


121


(1)


252


9

Selling, general and administrative expenses

50


54


47


154


146

Research and development expenses

1


2


1


4


3

Charges for restructuring, closures and impairments

2


2


38


5


44

Other operating costs (income), net

(1)


4


(6)


8


(15)

Operating income (loss)

36


59


(81)


81


(169)

Interest income and other

-


-


1


1


3

Net contribution to earnings from continuing operations

36


59


(80)


82


(166)

Net contribution to earnings from discontinued operations

-


-


(17)


-


(25)

Net contribution to earnings

$      36


$      59


$    (97)


$        82


$    (191)












Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*












in millions


Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Operating income (loss)

$      36


$      59


$    (81)


$        81


$    (169)

Depreciation, depletion and amortization

33


33


38


100


116

Special items

(6)


-


33


(6)


33

EBITDA, excluding special items*

$      63


$      92


$    (10)


$     175


$      (20)












Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Gain on sale of property

$         6


$       -


$         5


$           6


$           5

Charges for restructuring and impairments

$         -


$       -


$     (38)




$       (38)

Total special items from continuing operations

6


-


(33)


6


(33)

Charges related to sale of discontinued hardwoods operations

-


-


(13)


-


(22)

Total

$        6


$       -


$    (46)


$          6


$      (55)












Selected Segment Items














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Total decrease (increase) in working capital (1)

$         5


$     (21)


$       34


$     (128)


$       (41)

Cash spent for capital expenditures

$     (15)


$     (16)


$       (8)


$       (37)


$       (21)

(1)Working capital does not include cash balances.





















Segment Statistics












in millions, except for third-party sales realizations

Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Structural Lumber
(board feet)

Third Party Net Sales and Revenue

$     370


$     363


$     281


$    1,024


$       831

Third Party Sales Realizations

$     350


$     359


$     301


$       341


$       305

Third Party Sales Volumes

1,056


1,013


934


3,006


2,723

Production Volumes

1,004


945


890


2,907


2,686

Engineered Solid
Section
(cubic feet)

Third Party Net Sales and Revenue

$       70


$       76


$       63


$       211


$       180

Third Party Sales Realizations

$  1,789


$  1,800


$  1,883


$    1,806


$    1,967

Third Party Sales Volumes

3.9


4.2


3.4


11.7


9.2

Production Volumes

3.8


4.3


3.4


11.8


10.7

Engineered
I-joists
(lineal feet)

Third Party Net Sales and Revenue

$       49


$       53


$       43


$       143


$       124

Third Party Sales Realizations

$  1,211


$  1,248


$  1,275


$    1,246


$    1,266

Third Party Sales Volumes

40


43


34


115


98

Production Volumes

37


39


32


110


96

Oriented Strand
Board
(square feet 3/8')

Third Party Net Sales and Revenue

$     138


$     169


$       96


$       418


$       264

Third Party Sales Realizations

$     214


$     268


$     176


$       227


$       181

Third Party Sales Volumes

643


630


546


1,838


1,462

Production Volumes

626


642


574


1,869


1,586

Softwood Plywood (square feet 3/8')

Third Party Net Sales and Revenue

$       26


$       34


$       18


$         83


$         48

Third Party Sales Realizations

$     332


$     356


$     259


$       334


$       260

Third Party Sales Volumes

81


95


69


249


185

Production Volumes

50


54


49


155


150























 

Weyerhaeuser Company




Cellulose Fibers Segment

Q3.2012 Analyst Package







Preliminary results, subject to audit




















Segment Statement of Operations












in millions


Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Total net sales and revenues

$   459


$   459


$   503


$  1,391


$  1,535

Cost of products sold

404


364


345


1,175


1,156

Gross margin

55


95


158


216


379

Selling, general and administrative expenses

22


23


24


69


70

Research and development expenses

2


2


2


6


6

Other operating income, net

(4)


(5)


(4)


(18)


(12)

Operating income

35


75


136


159


315

Interest income and other

1


3


3


3


1

Net contribution to earnings

$      36


$      78


$   139


$     162


$     316












Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*












in millions


Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Operating income

$      35


$      75


$   136


$     159


$     315

Depreciation, depletion and amortization

36


37


37


110


110

EBITDA, excluding special items*

$      71


$   112


$   173


$     269


$     425












Selected Segment Items














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Total decrease (increase) in working capital (1)

$       24


$     (20)


$     (14)


$         49


$       (37)

Cash spent for capital expenditures

$     (44)


$     (45)


$     (43)


$     (134)


$       (92)

(1)Working capital does not include cash balances.


















Segment Statistics














Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Pulp
(air-dry metric
tons)

Third Party Net Sales and Revenue (millions)

$     348


$     354


$     391


$    1,069


$    1,198

Third Party Sales Realizations

$     819


$     818


$     920


$       818


$       930

Third Party Sales Volumes (thousands)

425


432


426


1,306


1,288

Production Volumes (thousands)

417


453


462


1,308


1,309

Liquid
Packaging
Board
(tons)

Third Party Net Sales and Revenue (millions)

$       90


$       84


$       87


$       257


$       265

Third Party Sales Realizations

$  1,176


$  1,155


$  1,165


$    1,171


$    1,170

Third Party Sales Volumes (thousands)

76


74


76


220


227

Production Volumes (thousands)

78


77


81


220


228























 

Weyerhaeuser Company





Real Estate Segment

Q3.2012 Analyst Package






Preliminary results, subject to audit

















Segment Statement of Operations











in millions

Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Total net sales and revenues

$   296


$   230


$   211


$     663


$     562

Cost of products sold

248


175


164


536


437

Gross margin

48


55


47


127


125

Selling, general and administrative expenses

34


36


36


102


107

Charges for restructuring, closures and impairments

1


3


2


5


4

Other operating income, net

(1)


-


-


(1)


-

Operating income

14


16


9


21


14

Interest income and other

1


1


1


3


3

Net contribution to earnings

$      15


$      17


$      10


$        24


$        17











Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*











in millions

Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Operating income

$      14


$      16


$        9


$        21


$        14

Depreciation, depletion and amortization

3


3


3


8


9

Capitalized interest included in cost of products sold

14


5


3


22


13

EBITDA, excluding special items*

$      31


$      24


$      15


$        51


$        36











Selected Segment Items












Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Cash spent for capital expenditures

$       -


$       (1)


$       (1)


$         (2)


$         (2)











Segment Statistics












Q2.2012


Q3.2012


Q3.2011


YTD.2012


YTD.2011

Net sales and revenues: