Washington | 1-4825 | 91-0470860 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | The following items are filed as exhibits to this report. | |
99.1 | Press release of Weyerhaeuser Company issued October 28, 2011 reporting results of operations for the quarter ended September 30, 2011 | |
99.2 | Exhibits to press release of Weyerhaeuser Company issued October 28, 2011 |
WEYERHAEUSER COMPANY | |||
By | /s/ Jerald W. Richards | ||
Its: | Chief Accounting Officer |
For more information contact: | Media - Bruce Amundson (253) 924-3047 | |
Analysts - Kathryn McAuley (253) 924-2058 |
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 | ||
(1) Discontinued operations include Weyerhaeuser's hardwoods and Westwood Shipping Lines businesses, which were sold in the third quarter of 2011. | |||||
(2) Weyerhaeuser's outstanding shares increased 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) |
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) |
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 |
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 |
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 |
• | 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. |
in millions | Q2 | Q3 | Year-to-date | |||||||||||||||||
June 30, 2011 | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||||||
Net 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, 2011 | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 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 |
in millions | June 30, 2011 | September 30, 2011 | December 31, 2010 | ||||||||
ASSETS | |||||||||||
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 | |||||
LIABILITIES AND EQUITY | |||||||||||
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 |
in millions | Q2 | Q3 | Year-to-date | |||||||||||||||||
June 30, 2011 | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||||||
Cash 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 | ) |
Weyerhaeuser Company | Total Company Statistics | |||
Q3.2011 Analyst Package | ||||
Preliminary results, subject to audit |
in millions | Q2 | Q3 | Year-to-date | |||||||||||||||||
June 30, 2011 | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||||||
Net 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, 2011 | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 30, 2010 | ||||||||||||||||
Net 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, 2011 | September 30, 2011 | September 30, 2010 | September 30, 2011 | September 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 | ) |
Weyerhaeuser Company | Timberlands Segment | |||
Q3.2011 Analyst Package | ||||
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 | ) |
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 |
Weyerhaeuser Company | Wood Products Segment | |||
Q3.2011 Analyst Package | ||||
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 | ) |
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 |
Weyerhaeuser Company | Cellulose Fibers Segment | |||
Q3.2011 Analyst Package | ||||
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 |
Weyerhaeuser Company | Real Estate Segment | |||
Q3.2011 Analyst Package | ||||
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). |
Weyerhaeuser Company | Corporate & Other Segment | |||
Q3.2011 Analyst Package | ||||
Preliminary results, subject to audit |
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 |
(1) | Third quarter 2011 includes a $9 million gain and 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 | ) |
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 | $ | — |