WY
$35.51
Weyerhaeuser
($.66)
(1.82%)
Earnings Details
2nd Quarter June 2021
Friday, July 30, 2021 3:05:00 AM
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Summary

Weyerhaeuser Misses

Weyerhaeuser (WY) reported 2nd Quarter June 2021 earnings of $1.37 per share on revenue of $3.1 billion. The consensus earnings estimate was $1.38 per share on revenue of $3.0 billion. The Earnings Whisper number was $1.41 per share. Revenue grew 92.8% on a year-over-year basis.

Weyerhaeuser Co is a real estate investment trust. It is a private owner of timberlands. The Company owns or controls nearly seven million acres of timberlands in the U.S., and manages additional timberlands under long-term licenses in Canada.

Results
Reported Earnings
$1.37
Earnings Whisper
$1.41
Consensus Estimate
$1.38
Reported Revenue
$3.14 Bil
Revenue Estimate
$3.01 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Weyerhaeuser reports record second quarter results

SEATTLE, July 30, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $1.0 billion, or $1.37 per diluted share, on net sales of $3.1 billion. This compares with net earnings of $72 million, or 10 cents per diluted share, on net sales of $1.6 billion for the same period last year and net earnings of $681 million for the first quarter of 2021. There were no special items in second quarter or first quarter 2021. Net earnings before special items was $77 million for the same period last year, or 11 cents per diluted share.

View our earnings release and financial statements in a printer-friendly PDF.

Adjusted EBITDA for the second quarter of 2021 was $1.6 billion compared with $386 million for the same period last year and $1.1 billion for the first quarter of 2021.

"In the second quarter, our teams again delivered the company's strongest quarterly results on record, surpassing last quarter's Adjusted EBITDA record by over 40 percent," said Devin W. Stockfish, president and chief executive officer. "Year-to-date, our Adjusted EBITDA is almost $2 billion higher than this time last year and exceeds our full year results for each of the last 14 years. We also generated record operating cash flow in the quarter and reduced long-term debt by another $225 million. Looking forward, our outlook remains favorable for continued strength in residential construction, our financial position is exceptionally strong, and with year-to-date Adjusted Funds Available for Distribution of almost $1.9 billion, we are excited for the opportunity to return significant cash to shareholders through the variable supplemental component of our new dividend framework."

WEYERHAEUSER FINANCIAL HIGHLIGHTS


2021


2021


2020

(millions, except per share data)


Q1


Q2


Q2

Net sales


$2,506


$3,144


$1,631

Net earnings


$681


$1,028


$72

Net earnings per diluted share


$0.91


$1.37


$0.10

Weighted average shares outstanding, diluted


750


752


747

Net earnings before special items(1)(2)


$681


$1,028


$77

Net earnings per diluted share before special items(1)


$0.91


$1.37


$0.11

Adjusted EBITDA(1)


$1,101


$1,573


$386

Net cash from operations


$698


$1,308


$391

Adjusted FAD(3)


$645


$1,236


$317



(1)

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.



(2)

Special items for prior periods presented are included in the reconciliation tables following this release.



(3)

Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q1


Q2


Change

Net sales


$513


$541


$28

Net contribution to pretax earnings


$108


$113


$5

Adjusted EBITDA


$172


$180


$8

Q2 2021 Performance – In the West, export sales realizations increased significantly from the first quarter and export sales volumes were modestly higher as the company shifted additional volume to the export market to serve higher demand, particularly from China. Fee harvest volumes were comparable as the company continued salvage operations. Domestic sales realizations were slightly lower as salvage activity continued to yield a greater mix of smaller diameter logs. In the South, fee harvest volumes increased significantly and sales realizations for sawlogs and fiber logs were slightly higher. In both regions, forestry and road expenses increased seasonally.

Q3 2021 Outlook – Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly lower than the second quarter. In the West, the company anticipates slightly lower fee harvest volumes, seasonally higher forestry and road expenses, and higher per unit log and haul costs. The company expects moderately higher export sales realizations and slightly lower domestic sales realizations. In the South, the company expects significantly higher fee harvest volumes, slightly higher per unit log and haul costs, and seasonally higher forestry and road expenses. Sales realizations are expected to be slightly lower due to mix.

In July 2021, the company completed the previously announced sale of 145,000 acres of timberlands in the North Cascades region of Washington. Third quarter will include a gain of approximately $30 million on this transaction, which will be reported as a special item.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q1


Q2


Change

Net sales


$106


$110


$4

Net contribution to pretax earnings


$66


$63


($3)

Adjusted EBITDA


$96


$91


($5)

Q2 2021 Performance – The number of real estate acres sold and the average price per acre decreased compared with the first quarter due to the timing of real estate sales and mix of properties sold. Energy & Natural Resources earnings and Adjusted EBITDA increased, primarily due to higher production of construction materials.

Q3 2021 Outlook – Weyerhaeuser anticipates third quarter earnings will be significantly higher than third quarter 2020 due to a lower average basis resulting from the mix of properties sold. The company expects Adjusted EBITDA will be comparable to third quarter 2020. The company now expects full year 2021 Adjusted EBITDA for the segment will be approximately $290 million, an increase from the $255 million previously expected.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q1


Q2


Change

Net sales


$2,021


$2,629


$608

Net contribution to pretax earnings


$840


$1,338


$498

Adjusted EBITDA


$889


$1,386


$497

Q2 2021 Performance – Sales realizations for lumber and oriented strand board increased 25 percent and 48 percent, respectively, compared with first quarter averages. Sales volumes for lumber increased moderately. Oriented strand board production and sales volumes were modestly lower, and unit manufacturing costs increased, due to planned maintenance outages. Production and sales volumes for solid section and I-joist products increased and sales realizations improved as the company continued to benefit from previously announced price increases. Raw material costs for Wood Products increased, primarily for Canadian logs, oriented strand board webstock, resin and veneer.

Q3 2021 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be significantly lower than the second quarter. To date, third quarter benchmark pricing for lumber and oriented strand board is significantly lower than the second quarter average. The company expects higher sales volumes and improved unit manufacturing costs for lumber and oriented strand board, as well as higher raw material costs.

UNALLOCATED

FINANCIAL HIGHLIGHTS


2021


2021



(millions)


Q1


Q2


Change

Net charge to pretax earnings


($65)


($84)


($19)

Adjusted EBITDA


($56)


($84)


($28)

Q2 2021 Performance – Second quarter results include an increase in variable compensation expense due to a year-to-date adjustment for performance-based incentive compensation, as well as an increase in the noncash charge from elimination of intersegment profit in inventory and LIFO, primarily due to higher costing within our lumber and log inventories.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common 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 July 30, 2021 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 30, 2021.

To join the conference call from within North America, dial 877-407-0792 (access code: 13714048) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714048). Replays will be available for two weeks at 844-512-2921 (access code: 13714048) from within North America, and at 412-317-6671 (access code: 13714048) from outside North America.

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, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log sales realizations; forestry and road expenses; log and haul costs; fee harvest volumes; expected gain on the sale of timberlands; raw materials costs for our wood products business; operating rates for the manufacture of our oriented strand board products; and sales volumes for our lumber and oriented strand board products and sales realizations for our engineered wood products lines. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words such as "anticipate," "expect," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

  • the effect of general economic conditions, including employment rates, interest rate levels, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
  • the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
  • market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
  • changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
  • restrictions on international trade and tariffs imposed on imports or exports;
  • the availability and cost of shipping and transportation;
  • economic activity in Asia, especially Japan and China;
  • performance of our manufacturing operations, including maintenance and capital requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
  • the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
  • raw material availability and prices;
  • the effect of weather;
  • changes in global or regional climate conditions and governmental response to such changes;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • transportation and labor availability and costs;
  • 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 employee retirements and changes in the market price of our common stock on charges for share-based compensation;
  • the accuracy of our estimates of costs and expenses related to contingent liabilities and the accuracy of our estimates of charges related to casualty losses;
  • changes in accounting principles; and
  • other risks and uncertainties identified in our 2020 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

For more information contact:


Analysts - Beth Baum, beth.baum@weyerhaeuser.com, (206) 539-3907



Media - Nancy Thompson, nancy.thompson@weyerhaeuser.com, (919) 861-0342

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2021:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

681


Interest expense, net of capitalized interest



















79


Income taxes



















189


Net contribution (charge) to earnings


$

108



$

66



$

840



$

(65)



$

949


Non-operating pension and other post-employment benefit costs












8




8


Interest income and other












(1)




(1)


Operating income (loss)



108




66




840




(58)




956


Depreciation, depletion and amortization



64




3




49




2




118


Basis of real estate sold






27










27


Adjusted EBITDA


$

172



$

96



$

889



$

(56)



$

1,101


The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2021:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

1,028


Interest expense, net of capitalized interest



















78


Income taxes



















324


Net contribution (charge) to earnings


$

113



$

63



$

1,338



$

(84)



$

1,430


Non-operating pension and other post-employment benefit costs












1




1


Interest income and other












(2)




(2)


Operating income (loss)



113




63




1,338




(85)




1,429


Depreciation, depletion and amortization



67




4




48




1




120


Basis of real estate sold






24










24


Adjusted EBITDA


$

180



$

91



$

1,386



$

(84)



$

1,573


The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2020:

(millions)


Timberlands



Real Estate

& ENR



Wood

Products



Unallocated

Items



Total


Adjusted EBITDA by Segment:





















Net earnings


















$

72


Interest expense, net of capitalized interest(1)



















103


Income taxes



















60


Net contribution (charge) to earnings


$

75



$

19



$

159



$

(18)



$

235


Non-operating pension and other post-employment benefit costs












10




10


Interest income and other












(2)




(2)


Operating income (loss)



75




19




159




(10)




243


Depreciation, depletion and amortization



65




4




47




1




117


Basis of real estate sold






34










34


Special items included in operating income (loss)(2)









(8)







(8)


Adjusted EBITDA


$

140



$

57



$

198



$

(9)



$

386




(1)

Interest expense, net of capitalized interest includes a pretax special item consisting of an $11 million net charge related to the early extinguishment of debt.



(2)

Operating income (loss) includes a pretax special item consisting of an $8 million product remediation insurance recovery.

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings:



2021


2021


2020

(millions)


Q1


Q2


Q2

Net earnings


$681


$1,028


$72

Early extinguishment of debt charge




11

Product remediation recovery




(6)

Net earnings before special items


$681


$1,028


$77

The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:



2021


2021


2020



Q1


Q2


Q2

Net earnings per diluted share


$0.91


$1.37


$0.10

Early extinguishment of debt charge




0.02

Product remediation recovery




(0.01)

Net earnings per diluted share before special items


$0.91


$1.37


$0.11

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.

The table below reconciles Adjusted FAD to net cash from operations:



2021


2021


2020


2021

(millions)


Q1


Q2


Q2


Q2 YTD

Net cash from operations


$698


$1,308


$391


$2,006

Capital expenditures


(53)


(72)


(66)


(125)

Adjustments to FAD(1)




(8)


Adjusted FAD


$645


$1,236


$317


$1,881



(1)

Adjustments to FAD include an $8 million product remediation insurance recovery received in second quarter 2020.

 

Weyerhaeuser Company














Exhibit 99.2

Q2.2021 Analyst Package
Preliminary results (unaudited)  


Consolidated Statement of Operations




Q1



Q2



Year-to-Date


in millions


March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Net sales


$

2,506



$

3,144



$

1,631



$

5,650



$

3,359


Costs of sales



1,430




1,583




1,283




3,013




2,665


Gross margin



1,076




1,561




348




2,637




694


Selling expenses



20




24




18




44




40


General and administrative expenses



90




95




84




185




158


Other operating costs, net



10




13




3




23




13


Operating income



956




1,429




243




2,385




483


Non-operating pension and other post-employment benefit costs



(8)




(1)




(10)




(9)




(19)


Interest income and other



1




2




2




3




3


Interest expense, net of capitalized interest



(79)




(78)




(103)




(157)




(188)


Earnings before income taxes



870




1,352




132




2,222




279


Income taxes



(189)




(324)




(60)




(513)




(57)


Net earnings


$

681



$

1,028



$

72



$

1,709



$

222


 

Per Share Information




Q1



Q2



Year-to-Date




March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Earnings per share, basic and diluted


$

0.91



$

1.37



$

0.10



$

2.28



$

0.30


Dividends paid per common share


$

0.17



$

0.17



$



$

0.34



$

0.34


Weighted average shares outstanding (in thousands):





















Basic



748,718




750,127




746,896




749,429




746,715


Diluted



750,024




751,508




746,984




750,773




747,070


Common shares outstanding at end of period (in thousands)



748,751




749,782




746,251




749,782




746,251


 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)




Q1



Q2



Year-to-Date


in millions


March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Net earnings


$

681



$

1,028



$

72



$

1,709



$

222


Non-operating pension and other post-employment benefit costs



8




1




10




9




19


Interest income and other



(1)




(2)




(2)




(3)




(3)


Interest expense, net of capitalized interest



79




78




103




157




188


Income taxes



189




324




60




513




57


Operating income



956




1,429




243




2,385




483


Depreciation, depletion and amortization



118




120




117




238




240


Basis of real estate sold



27




24




34




51




96


Special items included in operating income









(8)







(20)


Adjusted EBITDA(1)


$

1,101



$

1,573



$

386



$

2,674



$

799




(1)

Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Weyerhaeuser Company



Total Company Statistics

Q2.2021 Analyst Package
Preliminary results (unaudited)


Special Items Included in Net Earnings (Income Tax Affected)




Q1



Q2



Year-to-Date


in millions


March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Net earnings


$

681



$

1,028



$

72



$

1,709



$

222


Early extinguishment of debt charge(1)









11







11


Legal benefit















(12)


Product remediation recovery









(6)







(6)


Net earnings before special items(2)


$

681



$

1,028



$

77



$

1,709



$

215





Q1



Q2



Year-to-Date




March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Net earnings per diluted share


$

0.91



$

1.37



$

0.10



$

2.28



$

0.30


Early extinguishment of debt charge(1)









0.02







0.02


Legal benefit















(0.02)


Product remediation recovery









(0.01)







(0.01)


Net earnings per diluted share before special items(2)


$

0.91



$

1.37



$

0.11



$

2.28



$

0.29




(1)

We recorded a pretax charge of $11 million ($11 million after-tax) related to the early extinguishment of debt in second quarter 2020. This charge was included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.



(2)

Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Selected Total Company Items




Q1



Q2



Year-to-Date


in millions


March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Pension and post-employment costs:





















Pension and post-employment service costs


$

11



$

10



$

8



$

21



$

18


Non-operating pension and other post-employment benefit costs



8




1




10




9




19


Total company pension and post-employment costs


$

19



$

11



$

18



$

30



$

37


 

Weyerhaeuser Company
Q2.2021 Analyst Package

Preliminary results (unaudited)


Consolidated Balance Sheet


in millions


March 31,

2021



June 30,

2021



December 31,

2020


ASSETS













Current assets:













Cash and cash equivalents


$

1,016



$

1,777



$

495


Receivables, net



589




702




450


Receivables for taxes



7




7




82


Inventories



505




499




443


Assets held for sale






229





Prepaid expenses and other current assets



141




141




139


Total current assets



2,258




3,355




1,609


Property and equipment, net



1,971




1,965




2,013


Construction in progress



91




102




73


Timber and timberlands at cost, less depletion



11,776




11,643




11,827


Minerals and mineral rights, less depletion



265




262




268


Deferred tax assets



106




71




120


Other assets



407




432




401


Total assets


$

16,874



$

17,830



$

16,311















LIABILITIES AND EQUITY













Current liabilities:













Current maturities of long-term debt


$

150



$

150



$

150


Accounts payable



236




253




204


Accrued liabilities



549




775




596


Total current liabilities



935




1,178




950


Long-term debt, net



5,325




5,100




5,325


Deferred tax liabilities



26




42




24


Deferred pension and other post-employment benefits



893




747




911


Other liabilities



367




363




370


Total liabilities



7,546




7,430




7,580


Total equity



9,328




10,400




8,731


Total liabilities and equity


$

16,874



$

17,830



$

16,311


 

Weyerhaeuser Company
Q2.2021 Analyst Package
Preliminary results (unaudited)


Consolidated Statement of Cash Flows




Q1



Q2



Year-to-Date


in millions


March 31,

2021



June 30,

2021



June 30,

2020



June 30,

2021



June 30,

2020


Cash flows from operations:





















Net earnings


$

681



$

1,028



$

72



$

1,709



$

222


Noncash charges (credits) to earnings:





















Depreciation, depletion and amortization



118




120




117




238




240


Basis of real estate sold



27




24




34




51




96


Deferred income taxes, net



8




11




80




19




(2)


Pension and other post-employment benefits



19




11




18




30




37


Share-based compensation expense



7




8




8




15




15


Change in:





















Receivables, net



(139)




(113)




(30)




(252)




(112)


Receivables and payables for taxes



120




116




(18)




236




61


Inventories



(60)




9




74




(51)




2


Prepaid expenses and other current assets



(2)




1




7




(1)




5


Accounts payable and accrued liabilities



(60)




125




30




65




(61)


Pension and post-employment benefit contributions and payments



(8)




(25)




(6)




(33)




(16)


Other



(13)




(7)




5




(20)




(10)


Net cash from operations


$

698



$

1,308



$

391



$

2,006



$

477


Cash flows from investing activities:





















Capital expenditures for property and equipment


$

(31)



$

(62)



$

(55)



$

(93)



$

(102)


Capital expenditures for timberlands reforestation



(22)




(10)




(11)




(32)




(32)


Acquisition of Alabama timberlands






(149)







(149)





Proceeds from note receivable held by variable interest entities















362


Proceeds from sale of Montana timberlands















145


Other






1




1




1




3


Net cash from investing activities


$

(53)



$

(220)



$

(65)



$

(273)



$

376


Cash flows from financing activities:





















Cash dividends on common shares


$

(127)



$

(128)



$



$

(255)



$

(254)


Net proceeds from issuance of long-term debt















732


Payments on long-term debt






(225)




(588)




(225)




(588)


Proceeds from borrowings on line of credit















550


Payments on line of credit









(550)







(780)


Proceeds from exercise of stock options



17




28







45




6


Other



(14)




(2)




(3)




(16)




(15)


Net cash from financing activities


$

(124)



$

(327)



$

(1,141)



$

(451)



$

(349)























Net change in cash and cash equivalents


$

521



$

761



$

(815)



$

1,282



$

504


Cash and cash equivalents at beginning of period



495




1,016




1,458




495




139


Cash and cash equivalents at end of period


$

1,016



$

1,777



$

643



$

1,777



$

643























Cash paid (received) during the period for:





















Interest, net of amounts capitalized


$

75



$

79



$

70



$

154



$

178


Income taxes, net of refunds


$

66



$

197



$

1



$

263



$

1


 

Weyerhaeuser Company




Timberlands Segment

Q2.2021 Analyst Package
Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Sales to unaffiliated customers


$

379



$

405



$

359



$

784



$

740


Intersegment sales



134




136




121




270




243


Total net sales



513




541




480




1,054




983


Costs of sales



383




407




383




790




758


Gross margin



130




134




97




264




225


Selling expenses









1







1


General and administrative expenses



23




23




22




46




46


Other operating income, net



(1)




(2)




(1)




(3)




(2)


Operating income and Net contribution to earnings


$

108



$

113



$

75



$

221



$

180




Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Operating income


$

108



$

113



$

75



$

221



$

180


Depreciation, depletion and amortization



64




67




65




131




133


Adjusted EBITDA(1)


$

172



$

180



$

140



$

352



$

313



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.


Selected Segment Items


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Total decrease (increase) in working capital(2)


$

(13)



$

2



$

(2)



$

(11)



$

(5)


Cash spent for capital expenditures(3)


$

(28)



$

(21)



$

(21)



$

(49)



$

(51)



(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.


(3) Does not include cash spent for the acquisition of timberlands.


 

Segment Statistics(4)





Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Third Party


Delivered logs:




















Net Sales


West

$

201



$

222



$

179



$

423



$

356


(millions)


South


131




145




145




276




295




North


16




9




7




25




24




Total delivered logs


348




376




331




724




675




Stumpage and pay-as-cut timber


6




7




5




13




10




Recreational and other lease revenue


16




16




16




32




31




Other revenue


9




6




7




15




24




Total

$

379



$

405



$

359



$

784



$

740


Delivered Logs


West

$

130.69



$

137.80



$

104.90



$

134.32



$

104.91


Third Party Sales


South

$

34.50



$

35.11



$

33.68



$

34.82



$

33.97


Realizations (per ton)


North

$

62.83



$

74.88



$

59.82



$

66.51



$

60.31


Delivered Logs


West


1,539




1,608




1,714




3,147




3,398


Third Party Sales


South


3,782




4,150




4,307




7,932




8,672


Volumes (tons, thousands)


North


261




115




113




376




397


Fee Harvest Volumes


West


2,101




2,099




2,236




4,200




4,546


(tons, thousands)


South


5,376




5,856




5,914




11,232




12,044




North


337




199




194




536




580




 (4)

Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

Weyerhaeuser Company

Real Estate, Energy & Natural Resources Segment

Q2.2021 Analyst Package
Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Net sales


$

106



$

110



$

65



$

216



$

177


Costs of sales



34




41




40




75




110


Gross margin



72




69




25




141




67


General and administrative expenses



6




6




6




12




12


Operating income and Net contribution to earnings


$

66



$

63



$

19



$

129



$

55



Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Operating income


$

66



$

63



$

19



$

129



$

55


Depreciation, depletion and amortization



3




4




4




7




7


Basis of real estate sold



27




24




34




51




96


Adjusted EBITDA(1)


$

96



$

91



$

57



$

187



$

158



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.


Selected Segment Items


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Cash spent for capital expenditures


$



$



$



$



$



 

Segment Statistics





Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Net Sales

Real Estate


$

84



$

83



$

48



$

167



$

143


(millions)

Energy and Natural Resources



22




27




17




49




34



Total


$

106



$

110



$

65



$

216



$

177


Acres Sold

Real Estate



19,455




18,415




31,337




37,870




76,310


Price per Acre

Real Estate


$

3,803



$

3,227



$

1,501



$

3,523



$

1,790


Basis as a Percent of

Real Estate Net Sales

Real Estate



32

%



29

%



71

%



31

%



67

%

 

Weyerhaeuser Company





Wood Products Segment

Q2.2021 Analyst Package
Preliminary results (unaudited)


Segment Statement of Operations


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Net sales


$

2,021



$

2,629



$

1,207



$

4,650



$

2,442


Costs of sales



1,124




1,229




997




2,353




2,037


Gross margin



897




1,400




210




2,297




405


Selling expenses



19




21




18




40




39


General and administrative expenses



35




35




33




70




69


Other operating costs, net



3




6







9




4


Operating income and Net contribution to earnings


$

840



$

1,338



$

159



$

2,178



$

293



Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Operating income


$

840



$

1,338



$

159



$

2,178



$

293


Depreciation, depletion and amortization



49




48




47




97




97


Special items









(8)







(8)


Adjusted EBITDA(1)


$

889



$

1,386



$

198



$

2,275



$

382



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.


Segment Special Items Included in Net Contribution to Earnings (Pretax)


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Product remediation recovery


$



$



$

8



$



$

8



Selected Segment Items


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Total decrease (increase) in working capital(2)


$

(212)



$

(49)



$

56



$

(261)



$

(130)


Cash spent for capital expenditures


$

(25)



$

(51)



$

(45)



$

(76)



$

(83)



(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

Segment Statistics


in millions, except for third party sales realizations


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Structural Lumber

Third party net sales


$

990



$

1,349



$

538



$

2,339



$

1,046


(volumes presented

Third party sales realizations


$

864



$

1,077



$

438



$

975



$

427


in board feet)

Third party sales volumes(3)



1,145




1,252




1,225




2,397




2,447



Production volumes



1,211




1,234




1,108




2,445




2,317


Oriented Strand

Third party net sales


$

438



$

605



$

179



$

1,043



$

369


Board

Third party sales realizations


$

614



$

911



$

240



$

757



$

243


(volumes presented

Third party sales volumes(3)



714




663




747




1,377




1,517


in square feet 3/8")

Production volumes



742




683




742




1,425




1,519


Engineered Solid

Third party net sales


$

142



$

166



$

111



$

308



$

238


Section

Third party sales realizations


$

2,285



$

2,533



$

2,151



$

2,412



$

2,150


(volumes presented

Third party sales volumes(3)



6.2




6.6




5.2




12.8




11.1


in cubic feet)

Production volumes



6.0




6.2




5.3




12.2




11.4


Engineered

Third party net sales


$

83



$

104



$

70



$

187



$

148


I-joists

Third party sales realizations


$

1,773



$

1,980



$

1,645



$

1,882



$

1,656


(volumes presented

Third party sales volumes(3)



47




53




42




100




89


in lineal feet)

Production volumes



44




51




38




95




85


Softwood Plywood

Third party net sales


$

56



$

69



$

34



$

125



$

73


(volumes presented

Third party sales realizations


$

594



$

902



$

356



$

733



$

352


in square feet 3/8")

Third party sales volumes(3)



94




77




95




171




208



Production volumes



80




62




76




142




173


Medium Density

Third party net sales


$

48



$

43



$

33



$

91



$

77


Fiberboard

Third party sales realizations


$

842



$

869



$

825



$

855



$

834


(volumes presented

Third party sales volumes(3)



57




50




40




107




92


in square feet 3/4")

Production volumes



56




52




35




108




91




(3)

Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

 

Weyerhaeuser Company

Unallocated Items

Q2.2021 Analyst Package
Preliminary results (unaudited)


Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.


Net Charge to Earnings


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Unallocated corporate function and variable compensation expense


$

(25)



$

(36)



$

(23)



$

(61)



$

(42)


Liability classified share-based compensation



(1)







(4)




(1)




6


Foreign exchange gain (loss)



(2)




(1)




3




(3)




(5)


Elimination of intersegment profit in inventory and LIFO



(17)




(28)




18




(45)




5


Other, net



(13)




(20)




(4)




(33)




(9)


Operating loss



(58)




(85)




(10)




(143)




(45)


Non-operating pension and other post-employment benefit costs



(8)




(1)




(10)




(9)




(19)


Interest income and other



1




2




2




3




3


Net charge to earnings


$

(65)



$

(84)



$

(18)



$

(149)



$

(61)



Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Operating loss


$

(58)



$

(85)



$

(10)



$

(143)



$

(45)


Depreciation, depletion and amortization



2




1




1




3




3


Special items















(12)


Adjusted EBITDA(1)


$

(56)



$

(84)



$

(9)



$

(140)



$

(54)



(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.


Unallocated Special Items Included in Net Charge to Earnings (Pretax)


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Legal benefit


$



$



$



$



$

12


Special items included in operating loss and net charge to earnings


$



$



$



$



$

12



Unallocated Selected Items


in millions


Q1.2021



Q2.2021



Q2.2020



YTD.2021



YTD.2020


Cash spent for capital expenditures


$



$



$



$



$


 

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SOURCE Weyerhaeuser Company