FEDERAL WAY, WA - Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings to common shareholders of $183 million, or 31 cents per diluted share, on net sales of $2.0 billion. This compares with net earnings of $144 million, or 26 cents per diluted share, on net sales of $2.0 billion for the same period last year.

Earnings for the first quarter of 2014 include net after-tax gains of $30 million from special items. Excluding these items, the company reported net earnings of $153 million, or 26 cents per diluted share, for the first quarter of 2014. The company reported no special items for the first quarter of 2013.

"Despite unusually severe winter weather, we delivered strong operating results in the quarter," said Doyle Simons, president and chief executive officer. "Our Timberlands business is realizing increasing benefits from the Longview Timber acquisition and reported its highest quarterly earnings excluding land sales since 2006. We are relentlessly focused on driving operational excellence in each of our businesses to grow a truly great company."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2013

2014

2013

(millions, except per share data)

4Q

1Q

1Q

Net sales

$2,256

$1,984

$1,951

Net earnings attributable to Weyerhaeuser common shareholders

$43

$183

$144

Weighted average shares outstanding, diluted(1)

589

589

551

Earnings per diluted share

$0.07

$0.31

$0.26

Net earnings before special items(2)

$157

$153

$144

Earnings per diluted share before special items

$0.27

$0.26

$0.26

Net cash from operations

$348

$109

($61)

Net change in cash and cash equivalents(3)

($562)

($55)

($259)

Cash and cash equivalents at end of period

$835

$780

$639

(1)

Weyerhaeuser's common shares outstanding increased during the second and third quarters of 2013 following the issuance of approximately 33 million common shares in conjunction with the acquisition of Longview Timber LLC.

(2)

Earnings for the fourth quarter of 2013 included after-tax charges of $114 million, or $0.20 per share, for special items. These charges were primarily related to a real estate impairment that was partially offset by unrelated tax adjustments.

(3)

Net change in cash and equivalents for the fourth quarter of 2013 includes repayment of indebtedness assumed in the acquisition of Longview Timber LLC. Change in cash and equivalents for the first quarter of 2013 includes $156 million for debt repayment.

SPECIAL ITEMS FIRST QUARTER 2014
(millions, except per share data)

Pre-Tax

After-Tax

Per Share

Gain on postretirement plan amendment

$45

$29

$0.05

Gain on sale of a non-strategic asset

$22

$14

$0.02

Restructuring charges related to SG&A cost reduction initiative

($18)

($13)

($0.02)

During the fourth quarter of 2013, Weyerhaeuser decided to eliminate post-Medicare health funding for certain salaried retirees after 2014. As a result, the company will ratably amortize a total pre-tax gain of $177 million throughout 2014. Special items for the first quarter include a pre-tax gain of $45 million from this plan amendment, a $22 million pre-tax gain on the sale of a landfill located in Washington State and pre-tax restructuring charges of $18 million relating to the SG&A cost reduction initiative announced during the fourth quarter of 2013. These are reported as part of Unallocated Items.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

4Q 2013

1Q 2014

Change

Net sales

$364

$377

$13

Contribution to pre-tax earnings

$134

$164

$30

1Q 2014 Performance - Average selling prices for Western logs improved across export and domestic markets. Western fee harvest volumes increased to capitalize on robust export markets, and unit logging costs fell due to higher volume and improved efficiencies. In the South, silviculture costs declined seasonally and average log price realizations improved slightly. These improvements were partially offset by lower Southern fee harvest volumes due to wet weather. First quarter included earnings of $4 million from dispositions of non-strategic timberlands, a decrease of $16 million compared with the fourth quarter.

2Q 2014 Outlook - Weyerhaeuser anticipates comparable earnings from the Timberlands segment in the second quarter. In the West, the company expects increased Chinese export log sales volumes to be more than offset by lower average prices for domestic and export logs and seasonally higher unit logging and transportation expenses. In the South, Weyerhaeuser anticipates seasonally higher silviculture costs, largely offset by increased fee harvest volumes and slightly higher average log price realizations. Second quarter earnings will include approximately $20 million from dispositions of non-strategic timberlands substantially completed in April 2014.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

4Q 2013

1Q 2014

Change

Net sales

$926

$898

($28)

Contribution to pre-tax earnings before special items

$58

$64

$6

Pre-tax charge for special items

(10)

10

GAAP contribution to pre-tax earnings

$48

$64

$16

1Q 2014 Performance - Earnings increased compared with the fourth quarter despite the effect of severe winter weather. Higher average lumber realizations were partially offset by lower realizations for oriented strand board and lower engineered wood products realizations due to mix. Sales volumes declined due to severe weather and transportation challenges related to Canadian rail car and trucking availability. Per unit manufacturing costs for lumber improved in the quarter. Western log costs increased.

Fourth quarter included special charges of approximately $10 million for the permanent closure of previously curtailed operations.

2Q 2014 Outlook - Weyerhaeuser expects significantly higher earnings from the Wood Products segment in the second quarter. The company anticipates seasonally higher sales volumes across all product lines and slightly higher average selling prices for oriented strand board and engineered wood products. Lumber sales realizations have softened thus far in the second quarter but should stabilize as demand improves. The company expects increased production across all product lines and continued improvements in manufacturing efficiency.

CELLULOSE FIBERS

FINANCIAL HIGHLIGHTS (millions)

4Q 2013

1Q 2014

Change

Net sales

$478

$461

($17)

Contribution to pre-tax earnings

$65

$54

($11)

1Q 2014 Performance - Average pulp price realizations improved compared with the fourth quarter, and the mill system maintained strong operating performance despite harsh winter weather. These factors were offset by higher energy costs and lower pulp sales volumes due to timing of shipments and Canadian transportation challenges similar to those experienced in the Wood Products segment. Maintenance costs increased due to a greater number of scheduled annual outage days.

2Q 2014 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the second quarter. The company anticipates higher sales price realizations and volumes for pulp and liquid packaging board, lower energy costs, and slightly lower maintenance expenses.

REAL ESTATE

FINANCIAL HIGHLIGHTS (millions)

4Q 2013

1Q 2014

Change

Net sales

$488

$248

($240)

Contribution to pre-tax earnings before special items

$71

$12

($59)

Pre-tax charge for special items

(349)

349

GAAP contribution (charge) to pre-tax earnings

($278)

$12

$290

1Q 2014 Performance - Home closings decreased seasonally to 508 single-family homes and average margins on homes closed declined, primarily due to mix. These factors were partially offset by higher average closing prices and lower selling expenses due to the reduced closing volumes.

First quarter includes earnings of $2 million from land and lot sales, compared with earnings of $7 million in the fourth quarter. Fourth quarter included special charges of $349 million, primarily for the impairment of a large-master-planned community excluded from the expected combination of Weyerhaeuser Real Estate Company (WRECO) and TRI Pointe Homes.

2Q 2014 Outlook - Weyerhaeuser expects higher earnings from single-family homebuilding in the second quarter, and a moderate increase in earnings from land and lot sales. Single-family closing volumes should increase seasonally, and average closing prices should improve slightly. The company anticipates comparable average margins on homes closed and higher selling-related expenses due to the additional closing volumes.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage another 14 million acres 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 and cellulose fibers products, and we develop real estate, primarily as a builder of single-family homes. Our company is a real estate investment trust. In 2013, we generated $8.5 billion in sales and employed approximately 13,700 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

 

Weyerhaeuser Company

Exhibit 99.2

Q1.2014 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Operations

in millions

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

Net Sales

$ 2,256

$ 1,984

$ 1,951

Cost of products sold

1,784

1,556

1,533

Gross margin

472

428

418

Selling expenses

59

49

51

General and administrative expenses

117

101

118

Research and development expenses

10

7

7

Charges for restructuring, closures and impairments

378

21

4

Other operating costs (income), net

5

(74)

(18)

Operating income (loss)

(97)

324

256

Interest income and other

16

9

11

Interest expense, net of capitalized interest

(113)

(83)

(82)

Earnings (loss) before income taxes

(194)

250

185

Income taxes

248

(56)

(41)

Net earnings

54

194

144

Dividends on preference shares

(11)

(11)

Net earnings attributable to Weyerhaeuser common shareholders

$       43

$     183

$     144

Per Share Information

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

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

$     0.07

$     0.31

$     0.26

Dividends paid per common share

$     0.22

$     0.22

$     0.17

Weighted average shares outstanding (in thousands):

Basic

583,610

584,915

545,234

Diluted

588,616

589,312

550,785

Common shares outstanding at end of period (in thousands)

583,548

584,961

546,573

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

in millions

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

Net earnings

$        54

$      194

$      144

Interest income and other

(16)

(9)

(11)

Interest expense, net of capitalized interest

113

83

82

Income taxes

(248)

56

41

Operating income (loss)

(97)

324

256

Depreciation, depletion and amortization

129

126

112

Non-operating pension and postretirement costs (credits)

9

(10)

10

Special items

381

(49)

Capitalized interest included in cost of products sold

11

5

9

Adjusted EBITDA, excluding special items*

$     433

$     396

$     387

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

 

 

 

 

Weyerhaeuser Company

Q1.2014 Analyst Package

Preliminary results, subject to audit

Consolidated Balance Sheet

in millions

March 31,
2014

December 31,
2013

ASSETS

Forest Products:

Current assets:

Cash and cash equivalents

$        777

$              830

Receivables, less allowances

544

518

Receivables for taxes

33

101

Inventories

626

542

Prepaid expenses

101

117

Deferred tax assets

186

128

Total current assets

2,267

2,236

Property and equipment, net

2,594

2,687

Construction in progress

140

112

Timber and timberlands at cost, less depletion charged to disposals

6,574

6,580

Investments in and advances to equity affiliates

189

190

Goodwill

40

42

Deferred tax assets

5

Other assets

374

345

Restricted financial investments held by variable interest entities

615

615

12,793

12,812

Real Estate(1):

Cash and cash equivalents

3

5

Receivables, less allowances

35

60

Real estate in process of development and for sale

918

842

Land being processed for development

583

583

Investments in and advances to equity affiliates

16

21

Deferred tax assets

288

289

Other assets

99

116

1,942

1,916

Total assets

$ 14,735

$       14,728

LIABILITIES AND EQUITY

Forest Products:

Current liabilities:

Notes payable

$            2

$                  2

Accounts payable

365

343

Accrued liabilities

579

626

Total current liabilities

946

971

Long-term debt

4,891

4,891

Long-term debt (nonrecourse to the company) held by variable interest entities

511

511

Deferred income taxes

536

436

Deferred pension and other postretirement benefits

471

516

Other liabilities

311

356

7,666

7,681

Real Estate(1):

Long-term debt (nonrecourse to the company) held by variable interest entities

5

5

Other liabilities

179

210

184

215

Total liabilities

7,850

7,896

Equity:

Total Weyerhaeuser shareholders' interest

6,852

6,795

Noncontrolling interests

33

37

Total equity

6,885

6,832

Total liabilities and equity

$ 14,735

$       14,728

(1) In our Quarterly Report on Form 10-Q, our real estate and forest products asset and liability items will be combined into respective total asset and liability line items.

 

 

 

Weyerhaeuser Company

Q1.2014 Analyst Package

Preliminary results, subject to audit

Consolidated Statement of Cash Flows

in millions

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

Cash flows from operations:

Net earnings

$        54

$      194

$      144

Noncash charges (credits) to income:

Depreciation, depletion and amortization

129

126

112

Deferred income taxes, net

(102)

36

26

Pension and other postretirement benefits

22

(47)

24

Share-based compensation expense

8

9

12

Charges for impairment of assets

367

1

Net gains on dispositions of assets

(16)

(25)

(7)

Foreign exchange transaction losses

1

14

4

Change in:

Receivables less allowances

85

(1)

(165)

Receivable for taxes

(70)

67

30

Inventories

(13)

(88)

(68)

Real estate and land

13

(72)

(59)

Prepaid expenses

(10)

3

(13)

Accounts payable and accrued liabilities

(96)

(80)

(66)

Deposits on land positions and other assets

(7)

12

(1)

Pension and postretirement contributions

(33)

(33)

(37)

Other

16

(6)

2

Net cash from operations

348

109

(61)

Cash flows from investing activities:

Property and equipment

(110)

(51)

(35)

Timberlands reforestation

(4)

(14)

(13)

Proceeds from sale of assets

5

19

6

Other

(2)

Cash from investing activities

(111)

(46)

(42)

Cash flows from financing activities:

Net proceeds from issuance of debt

550

Cash dividends on common shares

(128)

(129)

(93)

Cash dividends on preference shares

(23)

Change in book overdrafts

(1)

(6)

3

Payments on debt

(1,227)

(156)

Exercises of stock options

21

15

81

Other

9

2

9

Cash from financing activities

(799)

(118)

(156)

Net change in cash and cash equivalents

(562)

(55)

(259)

Cash and cash equivalents at beginning of period

1,397

835

898

Cash and cash equivalents at end of period

$      835

$      780

$      639

Cash paid (received) during the year for:

Interest, net of amount capitalized

$        91

$      101

$      111

Income taxes

$        12

$      (50)

$        (2)

 

 

 

Weyerhaeuser Company

Total Company Statistics

Q1.2014 Analyst Package

Preliminary results, subject to audit

Special Items Included in Net Earnings

in millions

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

Net earnings attributable to Weyerhaeuser common shareholders

$ 43

$ 183

$ 144

Loss on early extinguishment of debt

25

Restructuring, impairments and other charges

247

13

Gain on sale of non-strategic asset

(14)

Costs related to Real Estate divestiture

10

Tax adjustments

(168)

Gain on postretirement plan amendment

(29)

Net earnings attributable to Weyerhaeuser common shareholders before special items

$          157

$    153

$    144

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$ 0.07

$ 0.31

$ 0.26

Loss on early retirement of debt

0.05

Restructuring, impairments and other charges

0.42

0.02

Gain on sale of non-strategic asset

(0.02)

Costs related to Real Estate divestiture

0.02

Tax adjustments

(0.29)

Gain on postretirement plan amendment

(0.05)

Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items

$         0.27

$   0.26

$   0.26

Selected Total Company Items

in millions

Q4

Q1

December 31,
2013

March 31,
2014

March 31,
2013

Depreciation, depletion and amortization:

Cost of products sold

$           120

$      117

$      103

Selling, general and administrative expenses

9

9

9

Total depreciation, depletion and amortization

$           129

$      126

$      112

Pension and postretirement costs:

Pension and postretirement costs allocated to business segments

$             15

$        11

$        14

Pension and postretirement costs (credits) not allocated

9

(10)

10

Total company pension and postretirement costs

$             24

$          1

$        24

Total increase in Forest Products working capital(1)

$           (17)

$    (170)

$    (334)

Cash spent for capital expenditures

$         (114)

$      (65)

$      (48)

(1) Working capital does not include cash balances.

 

 

 

Weyerhaeuser Company

Timberlands Segment

Q1.2014 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations

in millions

Q4.2013

Q1.2014

Q1.2013

Sales to unaffiliated customers

$      364

$      377

$      293

Intersegment sales

215

238

224

Total net sales

579

615

517

Cost of products sold

425

431

395

Gross margin

154

184

122

Selling expenses

2

2

3

General and administrative expenses

26

26

25

Research and development expenses

6

4

4

Charges for restructuring, closures and impairments

2

Other operating income, net

(13)

(12)

(15)

Operating income

133

164

103

Interest income and other

1

1

Net contribution to earnings

$     134

$     164

$     104

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

in millions

Q4.2013

Q1.2014

Q1.2013

Operating income

$     133

$     164

$     103

Depreciation, depletion and amortization

51

52

36

Adjusted EBITDA, excluding special items*

$     184

$     216

$     139

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

Selected Segment Items

Q4.2013

Q1.2014

Q1.2013

Total increase in working capital(1)

$        (7)

$      (29)

$      (10)

Cash spent for capital expenditures

$      (21)

$      (19)

$      (18)

(1)Working capital does not include cash balances.

Segment Statistics

Q4.2013

Q1.2014

Q1.2013

Third Party 
Net Sales 
(millions)

Logs:

West

$      230

$      257

$      177

South

64

62

61

Canada

4

6

7

Total logs

298

325

245

Chip sales

2

3

3

Timberlands exchanges

21

4

2

Higher and better use land sales

9

3

3

Minerals, oil and gas

6

7

8

Products from international operations

22

24

22

Other products

6

11

10

Total

$      364

$      377

$      293

Logs
Third Party Sales
Realizations
(per cubic meter)

West

$ 104.91

$ 114.46

$ 105.38

South

$   43.72

$   44.88

$   43.47

Canada

$   38.68

$   35.30

$   36.61

International

$   23.05

$   16.99

$   24.01

Logs
Third Party Sales
Volumes
(cubic meters,
thousands)

West

2,185

2,246

1,674

South

1,468

1,385

1,399

Canada

128

156

204

International

112

147

68

Total

3,893

3,934

3,345

Logs
Fee Harvest Volumes
(cubic meters,
thousands)

West

2,686

2,875

1,995

South

3,007

2,866

2,833

International

243

249

197

Total

5,936

5,990

5,025

 

 

 

 

Weyerhaeuser Company

Wood Products Segment

Q1.2014 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations  

in millions

Q4.2013

Q1.2014

Q1.2013

Sales to unaffiliated customers

$    926

$    898

$    988

Intersegment sales

16

19

18

Total net sales

942

917

1,006

Cost of products sold

826

791

770

Gross margin

116

126

236

Selling expenses

24

25

26

General and administrative expenses

32

37

36

Research and development expenses

2

1

1

Charges for restructuring, closures and impairments

11

Other operating income, net

(1)

(1)

(5)

Operating income

48

64

178

Interest income and other

Net contribution to earnings

$     48

$     64

$   178

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

in millions

Q4.2013

Q1.2014

Q1.2013

Operating income

$     48

$     64

$   178

Depreciation, depletion and amortization

30

29

31

Special items

10

Adjusted EBITDA, excluding special items*

$     88

$     93

$   209

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

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

Q4.2013

Q1.2014

Q1.2013

Charges for restructuring, closures and impairments

$    (10)

$      —

$      —

Total

$    (10)

$     —

$     —

Selected Segment Items

Q4.2013

Q1.2014

Q1.2013

Total decrease (increase) in working capital(1)

$      40

$  (137)

$  (194)

Cash spent for capital expenditures

$    (61)

$    (18)

$    (10)

(1)Working capital does not include cash balances.

Segment Statistics

in millions, except for third-party sales realizations

Q4.2013

Q1.2014

Q1.2013

Structural Lumber
(board feet)

Third party net sales

$    440

$    427

$    451

Third party sales realizations

$    413

$    432

$    440

Third party sales volumes(1)

1,066

989

1,025

Production volumes

970

1,009

1,021

Outside purchase volumes

83

78

102

Engineered Solid
Section
(cubic feet)

Third party net sales

$       90

$       90

$       82

Third party sales realizations

$ 2,006

$ 1,959

$ 1,850

Third party sales volumes(1)

4.5

4.6

4.4

Production volumes

4.2

4.9

4.6

Outside purchase volumes

0.2

1.8

0.9

Engineered
I-joists
(lineal feet)

Third party net sales

$       63

$       59

$       56

Third party sales realizations

$ 1,485

$ 1,454

$ 1,300

Third party sales volumes(1)

42

40

43

Production volumes

38

44

44

Outside purchase volumes

2

1

3

Oriented Strand
Board
(square feet 3/8')

Third party net sales

$    161

$    148

$    236

Third party sales realizations

$    237

$    230

$    359

Third party sales volumes(1)

678

641

657

Production volumes

673

657

662

Outside purchase volumes

54

53

68

Softwood Plywood
(square feet 3/8')

Third party net sales

$      29

$      30

$      36

Third party sales realizations

$    339

$    332

$    370

Third party sales volumes(1)

87

90

99

Production volumes

55

59

61

Outside purchase volumes

40

33

42

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

 

 

 

Weyerhaeuser Company

Cellulose Fibers Segment

Q1.2014 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations

in millions

Q4.2013

Q1.2014

Q1.2013

Total net sales

$   478

$   461

$   474

Cost of products sold

397

390

424

Gross margin

81

71

50

Selling expenses

3

4

4

General and administrative expenses

17

20

20

Research and development expenses

2

2

2

Other operating income, net

(2)

(9)

(7)

Operating income

61

54

31

Interest income and other

4

Net contribution to earnings

$     65

$     54

$     31

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

in millions

Q4.2013

Q1.2014

Q1.2013

Operating income

$     61

$     54

$     31

Depreciation, depletion and amortization

40

38

39

Adjusted EBITDA, excluding special items*

$   101

$     92

$     70

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

Selected Segment Items

Q4.2013

Q1.2014

Q1.2013

Total decrease (increase) in working capital(1)

$    (12)

$      31

$      (7)

Cash spent for capital expenditures

$    (30)

$    (26)

$    (17)

(1)Working capital does not include cash balances.

Segment Statistics

Q4.2013

Q1.2014

Q1.2013

Pulp
(air-dry metric
tons)

Third party net sales (millions)

$    390

$    363

$    371

Third party sales realizations

$    818

$    825

$    796

Third party sales volumes (thousands)

477

440

467

Production volumes (thousands)

450

459

445

Liquid
Packaging
Board
(tons)

Third party net sales (millions)

$      72

$      80

$      85

Third party sales realizations

$ 1,029

$ 1,122

$ 1,079

Third party sales volumes (thousands)

70

71

78

Production volumes (thousands)

85

72

78

 

 

Weyerhaeuser Company

Real Estate Segment

Q1.2014 Analyst Package

Preliminary results, subject to audit

Segment Statement of Operations

in millions

Q4.2013

Q1.2014

Q1.2013

Total net sales

$   488

$   248

$   196

Cost of products sold

371

196

160

Gross margin

117

52

36

Selling expenses

30

21

18

General and administrative expenses

17

18

18

Charges for restructuring, closures and impairments

352

2

1

Other operating income, net

(3)

(1)

Operating income (loss)

(279)

12

(1)

Interest income and other

1

1

Net contribution to earnings

$ (278)

$     12

$     —

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

in millions

Q4.2013

Q1.2014

Q1.2013

Operating income (loss)

$ (279)

$     12

$      (1)

Depreciation, depletion and amortization

4

3

3

Capitalized interest included in cost of products sold

9

4

7

Special items

349

Adjusted EBITDA, excluding special items*

$     83

$     19

$       9

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

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

Q4.2013

Q1.2014

Q1.2013

Charges for restructuring, closures and impairments

$  (343)

$      —

$      —

Costs related to Real Estate divestiture

(6)

Total

$ (349)

$     —

$     —

Selected Segment Items

Q4.2013

Q1.2014

Q1.2013

Cash from operations

$    106

$    (28)

$    (71)

Cash spent for capital expenditures

$      (1)

$      (2)

$      (2)

Segment Statistics

Q4.2013

Q1.2014

Q1.2013

Net sales:

Single-family housing

$    474

$    242

$    183

Land

13

3

11

Other

1

3

2

Total net sales

$    488

$    248

$    196

Single-family homes sold

521

667

820

Single-family homes closed

1,072

508

463

Single-family homes sold but not closed (backlog)

897

1,056

1,138

Single-family cancellation rate

20.6 %

14.9 %

12.2 %

Single-family buyer traffic

14,252

16,652

17,764

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

$   442

$   476

$   394

Single-family gross margin(1)

23.0 %

20.9 %

19.5 %

(1) Single-family gross margin equals revenue less cost of sales and period costs.

 

 

 

 

Weyerhaeuser Company

Unallocated Items

Q1.2014 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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve.

Contribution to Earnings

in millions

Q4.2013

Q1.2014

Q1.2013

Unallocated corporate function expenses

$      (7)

$      (2)

$      (3)

Unallocated share-based compensation

(5)

3

(7)

Unallocated pension & postretirement credits (costs)

(9)

55

(10)

Foreign exchange losses

(1)

(15)

(4)

Elimination of intersegment profit in inventory and LIFO

6

(19)

(24)

Other

(44)

8

(7)

Operating income (loss)

(60)

30

(55)

Interest income and other

10

9

9

Net contribution to earnings

$   (50)

$     39

$   (46)

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

in millions

Q4.2013

Q1.2014

Q1.2013

Operating income (loss)

$   (60)

$     30

$   (55)

Depreciation, depletion and amortization

4

4

3

Non-operating pension and postretirement costs (credits)

9

(10)

10

Capitalized interest included in costs of products sold

2

1

2

Special items

22

(49)

Adjusted EBITDA, excluding special items*

$   (23)

$   (24)

$   (40)

* Non-GAAP measure - see below for definition.

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

Q4.2013

Q1.2014

Q1.2013

Gain on postretirement plan amendment

$      —

$      45

$      —

Restructuring, impairments and other charges

(13)

(18)

Gain on sale of non-strategic asset

22

Costs related to Real Estate divestiture

(9)

Total

$   (22)

$     49

$     —

Unallocated Selected Items

Q4.2013

Q1.2014

Q1.2013

Total increase in working capital(1)

$    (38)

$    (35)

$  (123)

Cash spent for capital expenditures

$      (1)

$      —

$      (1)

(1) Working capital does not include cash balances.

*Adjusted EBITDA, excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and interest included in cost of products sold. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

 Source: Weyerhaeuser Company

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