EX-99.2 3 wy2012q3ex-992.htm EXHIBITS TO PRESS RELEASE WY 2012 Q3 EX-99.2


 







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
 

 
in millions
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

 
* Non-GAAP measure - see page 9 for definition.












Page 1 of 9


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


Page 2 of 9


 
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

 

Page 3 of 9


 
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.















Page 4 of 9


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 (see note 1 on page 9)
$
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

* Non-GAAP measure - see page 9 for definition.


























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


Page 5 of 9


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 (see note 1 on page 9)
$
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
)
* Non-GAAP measure - see page 9 for definition.


























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


Page 6 of 9


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 (see note 1 on page 9)
$
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

* Non-GAAP measure - see page 9 for definition.


























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



Page 7 of 9


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

* Non-GAAP measure - see page 9 for definition.























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:

 

 







Single-family housing
$
190

 
$
229

 
$
204


$
550


$
536

Land
105

 
1

 
5


109


23

Other
1

 
—

 
2


4


3

Total net sales and revenue
$
296

 
$
230

 
$
211


$
663


$
562

Single-family homes sold
764

 
637

 
440


2,098


1,496

Single-family homes closed
508

 
615

 
508


1,472


1,330

Single-family homes sold but not closed (backlog)
1,033

 
1,055

 
605


1,055


605

Single-family cancellation rate
15.4
%

18.3
%

17.4
%

14.6
%

15.0
%
Single-family buyer traffic
17,677


17,894


11,803


49,843


39,592

Single-family average price of homes closed (in thousands)
$
374

 
$
372

 
$
403


$
374


$
403

Single-family home gross margin - excluding impairments (1)
19.5
%
 
24.3
%
 
23.0
%

21.0
%

22.4
%










(1) Single-family gross margin excluding impairments equals revenue less cost of sales and period costs (other than impairments and deposit write-offs).


Page 8 of 9


Weyerhaeuser Company






Unallocated Items
 
Q3.2012 Analyst Package







Preliminary results, subject to audit



















Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve.










Contribution to Earnings










in millions
Q2.2012
 
Q3.2012
 
Q3.2011

YTD.2012

YTD.2011
Unallocated corporate function expenses
$
(3
)
 
$
(5
)
 
$
(10
)

$
(14
)

$
(36
)
Unallocated share-based compensation
(1
)
 
(7
)
 
12


(13
)

1

Unallocated pension & postretirement costs
(7
)
 
(7
)
 
(6
)

(21
)

(21
)
Foreign exchange gains (losses)
(8
)
 
11

 
(16
)

9


(9
)
Elimination of intersegment profit in inventory and LIFO (1)
(2
)

(10
)

1


(24
)

(19
)
Other
35

 
(9
)
 
(5
)

56


(30
)
Operating income (loss)
14

 
(27
)
 
(24
)

(7
)

(114
)
Interest income and other
9

 
10

 
9


29


25

Net contribution to earnings from continuing operations
23


(17
)

(15
)

22


(89
)
Net contribution to earnings from discontinued operations
—


—


54


—


45

Net contribution to earnings
$
23

 
$
(17
)
 
$
39


$
22


$
(44
)
(1) We began reporting the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items in second quarter 2012. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of business operating results. Prior period results have been adjusted to reflect the change.















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)
$
14

 
$
(27
)
 
$
(24
)

$
(7
)

$
(114
)
Depreciation, depletion and amortization
7

 
4

 
7


16


22

Special items
(51
)

—

 
—


(89
)

—

Capitalized interest included in cost of products sold
5


1


2


6


4

EBITDA, excluding special items*
$
(25
)

$
(22
)
 
$
(15
)

$
(74
)

$
(88
)
* Non-GAAP measure - see below for definition.





























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















 
Q2.2012
 
Q3.2012
 
Q3.2011

YTD.2012

YTD.2011
Gain on postretirement plan amendment
$
51

 
$
—

  
$
—


$
103


$
—

Restructuring, impairments and other charges
—


—


—


(14
)

—

Total special items from continuing operations
51


—


—


89


—

Gain on sale of property
—


—


9


—


9

Gain on sale of Westwood Shipping Lines
—


—


49


—


49

Total
$
51


$
—


$
58


$
89


$
58
















Unallocated Selected Items















 
Q2.2012
 
Q3.2012
 
Q3.2011

YTD.2012

YTD.2011
Total decrease (increase) in working capital (1)
$
68

 
$
(7
)
 
$
(10
)

$
(11
)

$
(72
)
Cash spent for capital expenditures
$
(1
)
 
$
(1
)
 
$
(1
)

$
(2
)

$
(1
)
(1) Working capital does not include cash balances.





























*EBITDA excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. EBITDA excluding special items, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. EBITDA excluding special items should not be considered in isolation from and is not intended to represent an alternative to our results computed under GAAP.

Page 9 of 9