SYS-CON MEDIA Authors: Peter Silva, Kevin Jackson, Jessica Qiu, Dana Gardner, Dan Stolts

News Feed Item

Weyerhaeuser Reports Second Quarter Results

- Earnings from continuing operations before special items rise nearly 65 percent compared with first quarter

FEDERAL WAY, Wash., Aug. 1, 2014 /PRNewswire/ --Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings to common shareholders of $280 million, or 47 cents per diluted share, on net sales from continuing operations of $2.0 billion. This compares with net earnings of $196 million, or 35 cents per diluted share, on net sales from continuing operations of $1.9 billion for the same period last year.

Weyerhaeuser Company logo

Earnings for second quarter 2014 include after-tax earnings of $22 million from discontinued operations. Discontinued operations relate to Weyerhaeuser Real Estate Company (WRECO), which was combined with TRI Pointe Homes, Inc. (TRI Pointe) through a Reverse Morris Trust transaction on July 7, 2014. Second quarter results also include net after-tax gains of $24 million from special items, primarily related to a postretirement plan amendment. Excluding discontinued operations and special items, the company reported net earnings of $234 million, or 40 cents per diluted share. This compares with net earnings from continuing operations before special items of $183 million, or 33 cents per diluted share, for second quarter 2013 and $143 million, or 24 cents per diluted share, for first quarter 2014.

"The strong results for each of our businesses in the second quarter reflect our relentless focus on operational excellence," said Doyle Simons, president and chief executive officer. "Through the recent divestiture of our homebuilding business and last year's Longview Timber acquisition, we have created a focused forest products company committed to driving operational improvements and fully capitalizing on the continued measured recovery in U.S. housing markets and the overall economy.


WEYERHAEUSER FINANCIAL HIGHLIGHTS

2014

2014

2013

(millions, except per share data)

1Q

2Q

2Q

Net sales from continuing operations

$1,736

$1,964

$1,874

Net earnings attributable to Weyerhaeuser common shareholders(1)

$183

$280

$196

Weighted average shares outstanding, diluted(2)

589

590

558

Earnings per diluted share

$0.31

$0.47

$0.35

Earnings per diluted share from continuing operations

$0.29

$0.43

$0.33

Net earnings from continuing operations before special items(3)

$143

$234

$183

Earnings per diluted share from continuing operations before special items

$0.24

$0.40

$0.33

Net change in cash and cash equivalents(4)

($53)

$68

$1,723

Cash and cash equivalents at end of period

$777

$845

$2,358


(1) Includes net earnings from discontinued operations.

(2) Weyerhaeuser's weighted average common shares outstanding increased during the third quarter of 2013 following the issuance of common shares in conjunction with the acquisition of Longview Timber LLC.

(3) Special items for the second quarter of 2014 include a gain on a postretirement plan amendment and restructuring charges related to the company's SG&A cost reduction initiative. First quarter included similar items as well as a gain on a non-strategic asset sale.

(4) Net change in cash and equivalents excludes discontinued operations for all quarters and for the second quarter of 2013 includes $1,450 million from issuance of common and mandatory convertible preference shares related to the acquisition of Longview Timber LLC.

 

TIMBERLANDS  


FINANCIAL HIGHLIGHTS (millions)

1Q 2014

2Q 2014

Change

Net sales

$377

$397

$20

Contribution to pre-tax earnings

$164

$170

$6

2Q 2014 Performance - Western sales volumes increased due to continued steady demand for domestic and Chinese export logs, partially offset by reduced Japanese demand. Average sales realizations for Western logs declined slightly in domestic and most export markets. Logging and road costs increased seasonally. In the South, slightly higher average log price realizations were partially offset by lower fee harvest volumes due to wet weather. Earnings from disposition of non-strategic timberlands increased by $20 million compared with the first quarter.

3Q 2014 Outlook - Weyerhaeuser anticipates significantly lower earnings from the Timberlands segment in the third quarter, primarily due to seasonality and lower earnings from disposition of non-strategic timberlands. In the West, the company expects seasonally lower sales volumes and prices for domestic and export logs. In the South, the company anticipates higher silviculture and road costs, largely offset by increased fee harvest volumes.

WOOD PRODUCTS


FINANCIAL HIGHLIGHTS (millions)

1Q 2014

2Q 2014

Change

Net sales

$898

$1,077

$179

Contribution to pre-tax earnings

$64

$102

$38

2Q 2014 Performance - Sales volumes rose seasonally across all product lines, and average selling prices for engineered wood products increased. These improvements were partially offset by lower average realizations for lumber and oriented strand board. Per unit manufacturing costs decreased compared with first quarter due to continued operational improvements and increased production volumes in lumber and engineered wood products. Earnings from engineered wood products improved significantly in the second quarter.

3Q 2014 Outlook - Weyerhaeuser expects comparable earnings from the Wood Products segment in the third quarter. The company anticipates slightly lower average realizations for lumber and oriented strand board, offset by lower Western log costs and improved price realizations for engineered wood products.

CELLULOSE FIBERS


FINANCIAL HIGHLIGHTS (millions)

1Q 2014

2Q 2014

Change

Net sales

$461

$490

$29

Contribution to pre-tax earnings

$54

$91

$37

 

2Q 2014 Performance - Average price realizations for pulp and liquid packaging board improved compared with the first quarter, and sales volumes increased. Mill operating performance was strong, and maintenance costs declined due to fewer scheduled annual outage days.

3Q 2014 Outlook - Weyerhaeuser plans an extended outage at its liquid packaging board facility for scheduled maintenance and capital improvements. The company also expects increased scheduled maintenance outage days within its pulp mill system. As a result, Weyerhaeuser anticipates significantly lower earnings from the Cellulose Fibers segment.

DISCONTINUED OPERATIONS








FINANCIAL HIGHLIGHTS (millions)

1Q 2014

2Q 2014

Change

Net sales

$248

$317

$69

Earnings from discontinued operations, net of tax

$10

$22

$12

On July 7, 2014, Weyerhaeuser completed the divestiture of WRECO through the combination of WRECO and TRI Pointe in a Reverse Morris Trust transaction. Discontinued Operations includes certain items previously reported in the Real Estate segment and Unallocated Items.

2Q 2014 Performance - Earnings from discontinued operations improved compared with first quarter, primarily due to a seasonal increase in home closings.

3Q 2014 Outlook - Third quarter results will include a net gain of approximately $1 billion on the divestiture of WRECO.

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. Our company is a real estate investment trust. In 2013, our continuing operations generated $7.3 billion in sales and employed approximately 13,000 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.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on August 1 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on August 1.

To join the conference call from within North America, dial 877-296-9413 (access code: 23990484) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 23990484). Replays will be available for two weeks at 855-859-2056 (access code: 23990484) from within North America and at 404-537-3406 (access code: 23990484) 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. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news release.

Some forward-looking statements discuss the company's plans, strategies and intentions. They use words such as "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," and "plans."  In addition, these words may use the positive or negative or other variations of those terms.

This release contains forward-looking statements regarding the company's expectations during the third quarter of 2014, including with respect to earnings, domestic and export log prices, fee harvest levels and realizations, expenses, including road and silviculture costs, dispositions of non-strategic timberlands, prices and realizations across the Wood Products product lines, log costs, maintenance time and expenses, and gains on the divestiture of the WRECO business.

Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:

  • the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar;
  • market demand for the company's products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
  • performance of the company's manufacturing operations, including maintenance requirements;
  • the level of competition from domestic and foreign producers;
  • the successful execution of internal performance plans, including restructurings and cost reduction initiatives;
  • raw material prices;
  • energy prices;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • transportation 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 retirements and changes in the market price of company stock on charges for stock-based compensation;
  • changes in accounting principles; and
  • other factors described under "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q.

The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company. 

 

Weyerhaeuser Company





Exhibit 99.2

Q2.2014 Analyst Package






Preliminary results, subject to audit










Consolidated Statement of Operations











in millions

Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Net Sales

$ 1,736


$ 1,964


$ 1,874


$ 3,700


$ 3,629

Cost of products sold

1,361


1,499


1,453


2,860


2,825

Gross margin

375


465


421


840


804

Selling expenses

28


27


31


55


64

General and administrative expenses

88


88


96


176


201

Research and development expenses

7


7


8


14


15

Charges for restructuring, closures and impairments

19


8


3


27


6

Other operating income, net

(75)


(65)


(10)


(140)


(28)

Operating income

308


400


293


708


546

Interest income and other

9


11


8


20


18

Interest expense, net of capitalized interest

(83)


(83)


(80)


(166)


(162)

Earnings from continuing operations before income taxes

234


328


221


562


402

Income taxes

(50)


(59)


(36)


(109)


(75)

Earnings from continuing operations

184


269


185


453


327

Earnings from discontinued operations, net of income taxes

10


22


13


32


15

Net earnings

194


291


198


485


342

Dividends on preference shares

(11)


(11)


(2)


(22)


(2)

Net earnings attributable to Weyerhaeuser common shareholders

$     183


$     280


$     196


$     463


$     340


Per Share Information



Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Earnings per share attributable to Weyerhaeuser common shareholders, basic:










Continuing operations

$     0.29


$     0.44


$     0.33


$     0.73


$     0.59

Discontinued operations

0.02


0.04


0.02


0.06


0.03

Net earnings per share

$     0.31


$     0.48


$     0.35


$     0.79


$     0.62

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:










Continuing operations

$     0.29


$     0.43


$     0.33


$     0.73


$     0.58

Discontinued operations

0.02


0.04


0.02


0.06


0.03

Net earnings per share

$     0.31


$     0.47


$     0.35


$     0.79


$     0.61

Dividends paid per common share

$     0.22


$     0.22


$     0.20


$     0.44


$     0.37

Weighted average shares outstanding (in thousands):










Basic

584,915


586,061


552,855


585,491


549,159

Diluted

589,312


589,766


557,588


589,542


554,301

Common shares outstanding at end of period (in thousands)

584,961


586,697


577,874


586,698


577,874











Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*











in millions

Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Net earnings

$      194


$      291


$      198


$      485


$      342

Earnings from discontinued operations, net of income taxes

(10)


(22)


(13)


(32)


(15)

Interest income and other

(9)


(11)


(8)


(20)


(18)

Interest expense, net of capitalized interest

83


83


80


166


162

Income taxes

50


59


36


109


75

Operating income

308


400


293


708


546

Depreciation, depletion and amortization

123


122


108


245


217

Non-operating pension and postretirement costs (credits)

(10)


(11)


10


(21)


20

Special items

(49)


(39)



(88)


Adjusted EBITDA*

$     372


$     472


$     411


$     844


$     783

* Non-GAAP measure - see page 8 for definition.










 

Weyerhaeuser Company




Q2.2014 Analyst Package






Preliminary results, subject to audit






Consolidated Balance Sheet







in millions

March 31,
2014


June 30,
2014


December 31,
2013


ASSETS






Current assets:






Cash and cash equivalents

$        777


$        845


$              830

Receivables, less allowances

543


590


518

Receivables for taxes

34


37


101

Inventories

626


596


542

Prepaid expenses

101


106


117

Deferred tax assets

186


128


130

Current assets of discontinued operations

48


988


88

Total current assets

2,315


3,290


2,326

Property and equipment, net

2,596


2,599


2,689

Construction in progress

140


157


112

Timber and timberlands at cost, less depletion charged to disposals

6,574


6,571


6,580

Investments in and advances to equity affiliates

189


188


190

Goodwill

40


40


42

Deferred tax assets

1



5

Other assets

354


419


324

Restricted financial investments held by variable interest entities

615


615


615

Noncurrent assets of discontinued operations

1,762


1,827


1,694

Total assets

$ 14,586


$ 15,706


$       14,577







LIABILITIES AND EQUITY






Current liabilities:






Notes payable

$            2


$          —


$                  2

Accounts payable

365


335


343

Accrued liabilities

582


597


629

Current liabilities of discontinued operations

123


137


154

Total current liabilities

1,072


1,069


1,128

Long-term debt

4,891


4,891


4,891

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

511


511


511

Deferred income taxes

387


410


285

Deferred pension and other postretirement benefits

471


422


516

Other liabilities

334


334


382

Noncurrent liabilities of discontinued operations

35


926


32

Total liabilities

7,701


8,563


7,745

Equity:






Total Weyerhaeuser shareholders' interest

6,852


7,092


6,795

Noncontrolling interests

3


2


3

Noncontrolling interests in discontinued operations

30


49


34

Total equity

6,885


7,143


6,832

Total liabilities and equity

$ 14,586


$ 15,706


$       14,577

 

Weyerhaeuser Company






Q2.2014 Analyst Package










Preliminary results, subject to audit










Consolidated Statement of Cash Flows











in millions

Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Cash flows from operations:










Net earnings

$      194


$    291


$    198


$    485


$    342

Noncash charges (credits) to income:










Depreciation, depletion and amortization

126


126


111


252


223

Deferred income taxes, net

36


89


23


125


49

Pension and other postretirement benefits

(47)


(44)


28


(91)


52

Share-based compensation expense

9


11


10


20


22

Charges for impairment of assets


1


2


1


3

Net gains on dispositions of assets

(25)


(21)


(14)


(46)


(21)

Foreign exchange transaction (gains) losses

14


(12)


4


2


8

Change in:










Receivables less allowances

(1)


(47)


45


(48)


(120)

Receivable for taxes

67


(3)


22


64


52

Inventories

(88)


34


32


(54)


(36)

Real estate and land

(72)


(35)


(62)


(107)


(121)

Prepaid expenses

3


(3)


(1)



(14)

Accounts payable and accrued liabilities

(80)


(17)


34


(97)


(32)

Deposits on land positions and other assets

12


(4)


(9)


8


(10)

Pension and postretirement contributions

(33)


(30)


(32)


(63)


(69)

Other

(6)


(14)


(17)


(20)


(15)

Net cash from operations

109


322


374


431


313











Cash flows from investing activities:










Property and equipment

(51)


(83)


(47)


(134)


(82)

Timberlands reforestation

(14)


(11)


(8)


(25)


(21)

Proceeds from sale of assets

19


1


8


20


14

Payments of liabilities held by special purpose entities



22



22

Other



(4)



(4)

Cash from investing activities

(46)


(93)


(29)


(139)


(71)











Cash flows from financing activities:










Net proceeds from issuance of common shares



781



781

Net proceeds from issuance of preference shares



669



669

Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt


887



887


Deposit of WRECO debt proceeds into escrow


(887)



(887)


Cash dividends on common shares

(129)


(128)


(109)


(257)


(202)

Cash dividends on preference shares


(11)



(11)


Change in book overdrafts

(6)



4


(6)


7

Payments on debt



(21)



(177)

Exercises of stock options

15


39


51


54


132

Other

2


(1)


3


1


12

Cash from financing activities

(118)


(101)


1,378


(219)


1,222











Net change in cash and cash equivalents

(55)


128


1,723


73


1,464

Cash and cash equivalents at beginning of period

835


780


639


835


898

Cash and cash equivalents at end of period

$      780


$    908


$ 2,362


$    908


$ 2,362

Cash paid (received) during the year for:










Interest, net of amount capitalized

$      101


$      52


$      55


$    153


$    166

Income taxes

$      (50)


$        5


$      (4)


$    (45)


$      (6)

 

 

Weyerhaeuser Company





Total Company Statistics

Q2.2014 Analyst Package






Preliminary results, subject to audit










Special Items Included in Net Earnings











in millions

Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Net earnings attributable to Weyerhaeuser common shareholders

$  183


$  280


$  196


$  463


$  340

Restructuring, impairments and other charges

13


5



18


Gain on sale of non-strategic asset

(14)




(14)


Gain on postretirement plan amendment

(29)


(29)



(58)


Net earnings attributable to Weyerhaeuser common shareholders before special items

153


256


196


409


340

Earnings from discontinued operations, net of income taxes

(10)


(22)


(13)


(32)


(15)

Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items

$  143


$  234


$  183


$  377


$  325












Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$ 0.31


$ 0.47


$ 0.35


$ 0.79


$ 0.61

Restructuring, impairments and other charges

0.02


0.01



0.03


Gain on sale of non-strategic asset

(0.02)




(0.02)


Gain on postretirement plan amendment

(0.05)


(0.04)



(0.10)


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

0.26


44.00


0.35


0.70


0.61

Earnings from discontinued operations, net of income taxes

(0.02)


(0.04)


(0.02)


(0.06)


(0.03)

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

$ 0.24


$ 0.40


$ 0.33


$ 0.64


$ 0.58


Selected Total Company Items


in millions

Q1


Q2


Year-to-date


March 31,
2014


June 30,
2014


June 30,
2013


June 30,
2014


June 30,
2013

Depreciation, depletion and amortization:










Cost of products sold

$   117


$    117


$    102


$    234


$    205

Selling, general and administrative expenses

6


5


6


$      11


12

Total depreciation, depletion and amortization

$   123


$    122


$    108


$    245


$    217











Pension and postretirement costs:










Pension and postretirement costs allocated to business segments

$     10


$      12


$      14


$      22


$      27

Pension and postretirement costs (credits) not allocated

(10)


(12)


10


$    (22)


20

Total company pension and postretirement costs

$     —


$     —


$      24


$     —


$      47











Total increase in working capital(1)

$  (170)


$      49


$    161


$  (121)


$  (173)

Cash spent for capital expenditures

$    (63)


$    (92)


$    (53)


$  (155)


$    (99)

(1)Working capital does not include cash balances.










 

 

Weyerhaeuser Company





Timberlands Segment

Q2.2014 Analyst Package






Preliminary results, subject to audit





















Segment Statement of Operations












in millions


Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Sales to unaffiliated customers

$   377


$      397


$      333


$       774


$       626

Intersegment sales

238


186


166


424


390

Total net sales

615


583


499


1,198


1,016

Cost of products sold

431


399


365


830


760

Gross margin

184


184


134


368


256

Selling expenses

2


2


2


4


5

General and administrative expenses

26


23


25


49


50

Research and development expenses

4


3


5


7


9

Charges for restructuring, closures and impairments





2

Other operating income, net

(12)


(14)


(11)


(26)


(26)

Operating income

164


170


113


334


216

Interest income and other



1



2

Net contribution to earnings

$ 164


$     170


$     114


$     334


$     218












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*












in millions


Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Operating income

$ 164


$     170


$     113


$     334


$     216

Depreciation, depletion and amortization

52


51


34


103


70

Adjusted EBITDA*

$ 216


$     221


$     147


$     437


$     286

* Non-GAAP measure - see page 8 for definition.





















Selected Segment Items














Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Total increase in working capital(1)

$   (29)


$      (15)


$      (21)


$       (44)


$       (31)

Cash spent for capital expenditures

$   (19)


$      (18)


$      (18)


$       (37)


$       (36)

(1)Working capital does not include cash balances.





















Segment Statistics













Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Third Party 
Net Sales 
(millions)

Logs:










West

$   257


$      261


$      208


$       518


$       385

South

62


60


65


122


126

Canada

6


1


2


7


9

Total logs

325


322


275


647


520

Chip sales

3


2


2


5


5

Timberlands exchanges

4


28


14


32


16

Higher and better use land sales

3


7


5


10


8

Minerals, oil and gas

7


8


9


15


17

Products from international operations

24


26


22


50


44

Other products

11


4


6


15


16

Total

$   377


$      397


$      333


$       774


$       626

Logs
Third Party Sales
Realizations
(per cubic meter)

West

$  0.11


$ 109.13


$ 115.11


$  111.71


$  110.44

South

$  0.04


$   45.16


$   43.47


$    45.02


$    43.47

Canada

$  0.04


$   38.04


$   36.38


$    35.75


$    36.57

International

$  0.02


$   16.27


$   25.00


$    16.64


$    24.54

Logs
Third Party Sales
Volumes
(cubic meters, thousands)

West

2,246


2,390


1,812


4,636


3,486

South

1,385


1,339


1,507


2,724


2,906

Canada

156


30


38


186


242

International

147


139


77


286


145

Total

3,934


3,898


3,434


7,832


6,779

Logs
Fee Harvest Volumes
(cubic meters, thousands)

West

2.875


2.888


1,921


5,763


3,916

South

2.866


2.715


2,828


5,581


5,661

International

0.249


0.249


167


498


364

Total

5,990


5,852


4,916


11.842


9.941

 

Weyerhaeuser Company





Wood Products Segment

Q2.2014 Analyst Package








Preliminary results, subject to audit





















Segment Statement of Operations  












in millions


Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Sales to unaffiliated customers

$    898


$ 1,077


$ 1,065


$    1,975


$    2,053

Intersegment sales

19


21


18


40


36

Total net sales

917


1,098


1,083


2,015


2,089

Cost of products sold

791


939


884


1,730


1,654

Gross margin

126


159


199


285


435

Selling expenses

25


23


24


48


50

General and administrative expenses

37


30


36


67


72

Research and development expenses

1


2


1


3


2

Charges for restructuring, closures and impairments


2


1


2


1

Other operating costs (income), net

(1)



1


(1)


(4)

Operating income

64


102


136


166


314

Interest income and other





Net contribution to earnings

$     64


$   102


$   136


$     166


$     314












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*












in millions


Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Operating income

$     64


$   102


$   136


$     166


$     314

Depreciation, depletion and amortization

29


30


31


59


62

Adjusted EBITDA*

$     93


$   132


$   167


$     225


$     376

* Non-GAAP measure - see page 8 for definition.





















Selected Segment Items














Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Total decrease (increase) in working capital(1)

$  (137)


$      29


$      75


$     (108)


$     (119)

Cash spent for capital expenditures

$    (18)


$    (38)


$    (16)


$       (56)


$       (26)

(1)Working capital does not include cash balances.





















Segment Statistics












in millions, except for third-party sales realizations

Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Structural Lumber
(board feet)

Third party net sales

$    427


$    515


$    502


$       942


$       953

Third party sales realizations

$    432


$    427


$    434


$       429


$       437

Third party sales volumes(1)

989


1,206


1,156


2,195


2,181

Production volumes

1,009


1,081


1,053


2,090


2,074

Outside purchase volumes

78


82


77


160


179

Engineered Solid
Section
(cubic feet)

Third party net sales

$      90


$    114


$      84


$       204


$       166

Third party sales realizations

$ 1,959


$ 1,976


$ 1,920


$    1,968


$    1,885

Third party sales volumes(1)

4.6


5.8


4.4


10.4


8.8

Production volumes

4.9


5.7


4.6


10.6


9.2

Outside purchase volumes

1.8


0.5


0.4


2.3


1.3

Engineered
I-joists
(lineal feet)

Third party net sales

$      59


$      81


$      60


$       140


$       116

Third party sales realizations

$ 1,454


$ 1,470


$ 1,358


$    1,463


$    1,330

Third party sales volumes(1)

40


55


44


95


87

Production volumes

44


55


42


99


86

Outside purchase volumes

1


3


1


4


4

Oriented Strand
Board
(square feet 3/8')

Third party net sales

$    148


$    159


$    224


$       307


$       460

Third party sales realizations

$    230


$    226


$    332


$       228


$       345

Third party sales volumes(1)

641


706


675


1,347


1,332

Production volumes

657


681


663


1,338


1,325

Outside purchase volumes

53


51


56


104


124

Softwood Plywood
(square feet 3/8')

Third party net sales

$      30


$      35


$      41


$         65


$         77

Third party sales realizations

$    332


$    348


$    378


$       340


$       374

Third party sales volumes(1)

90


102


108


192


207

Production volumes

59


60


63


119


124

Outside purchase volumes

33


36


33


69


75

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

 

Weyerhaeuser Company





Cellulose Fibers Segment

Q2.2014 Analyst Package








Preliminary results, subject to audit





















Segment Statement of Operations












in millions


Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Total net sales

$   461


$   490


$   476


$     951


$     950

Cost of products sold

390


381


394


771


818

Gross margin

71


109


82


180


132

Selling expenses

4


4


5


8


9

General and administrative expenses

20


20


21


40


41

Research and development expenses

2


2


2


4


4

Other operating income, net

(9)


(8)


(5)


(17)


(12)

Operating income

54


91


59


145


90

Interest income and other



(2)



(2)

Net contribution to earnings

$     54


$     91


$     57


$     145


$        88












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*












in millions


Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Operating income

$     54


$     91


$     59


$     145


$        90

Depreciation, depletion and amortization

38


39


39


77


78

Adjusted EBITDA*

$     92


$   130


$     98


$     222


$     168

* Non-GAAP measure - see page 8 for definition.





















Selected Segment Items














Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Total decrease (increase) in working capital(1)

$      31


$    (37)


$      12


$         (6)


$           5

Cash spent for capital expenditures

$    (26)


$    (35)


$    (17)


$       (61)


$       (34)

(1)Working capital does not include cash balances.





















Segment Statistics














Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Pulp
(air-dry metric tons)

Third party net sales (millions)

$    363


$    383


$    369


$       746


$       740

Third party sales realizations

$    825


$    845


$    797


$       835


$       797

Third party sales volumes (thousands)

440


454


462


894


929

Production volumes (thousands)

459


467


463


926


908

Liquid
Packaging
Board
(tons)

Third party net sales (millions)

$      80


$      87


$      86


$       167


$       171

Third party sales realizations

$ 1,122


$ 1,165


$ 1,079


$    1,144


$    1,079

Third party sales volumes (thousands)

71


75


81


146


159

Production volumes (thousands)

78


79


77


157


155

 

Weyerhaeuser Company





Unallocated Items

Q2.2014 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

Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Unallocated corporate function expenses

$     (2)


$     (1)


$     (3)


$         (3)


$         (6)

Unallocated share-based compensation

3


(6)


5


(3)


(2)

Unallocated pension & postretirement credits (costs)

55


56


(10)


111


(20)

Foreign exchange gains (losses)

(15)


13


(4)


(2)


(8)

Elimination of intersegment profit in inventory and LIFO

(19)


(1)


8


(20)


(16)

Other

4


(24)


(12)


(20)


(23)

Operating income (loss)

26


37


(16)


63


(75)

Interest income and other

9


11


10


20


19

Net contribution to earnings from continuing operations(1)

$    35


$    48


$    (6)


$        83


$      (56)

(1)We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders' interest.











Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*











in millions

Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Operating income (loss)

$    26


$    37


$  (16)


$        63


$      (75)

Depreciation, depletion and amortization

4


2


4


6


7

Non-operating pension and postretirement costs (credits)

(10)


(11)


10


(21)


20

Special items

(49)


(39)



(88)


Adjusted EBITDA*

$  (29)


$  (11)


$    (2)


$      (40)


$      (48)

* Non-GAAP measure - see below for definition.




















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












Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Gain on postretirement plan amendment

$     45


$     45


$    —


$         90


$        —

Restructuring, impairments and other charges

(18)


(6)



(24)


Gain on sale of non-strategic asset

22




22


Total

$    49


$    39


$    —


$        88


$        —











Unallocated Selected Items












Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Total increase in working capital(1)

$   (35)


$     72


$     95


$         37


$       (28)

Cash spent for capital expenditures

$     —


$     (1)


$     (2)


$         (1)


$         (3)

(1)Working capital does not include cash balances.




















*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 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 discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

 

Weyerhaeuser Company





Discontinued Operations

Q2.2014 Analyst Package






Preliminary results, subject to audit




















Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items.











Discontinued Operations Statement of Operations











in millions

Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Total net sales

$    248


$    317


$    267


$     565


$      463

Income from operations

$      16


$      27


$      19


$       43


$        23

Income taxes

(6)


(5)


(6)


(11)


(8)

Net earnings from discontinued operations

$      10


$      22


$      13


$        32


$        15











Discontinued Operations Selected Items












Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Cash from operations

$     (28)


$     133


$     (56)


$       105


$     (127)

Cash spent for capital expenditures

$       (2)


$       (2)


$       (2)


$         (4)


$         (4)











Discontinued Operations Statistics












Q1.2014


Q2.2014


Q2.2013


YTD.2014


YTD.2013

Net sales:










Single-family housing

$     242


$     310


$     257


$       552


$       440

Land

3


7


10


10


21

Other

3




3


2

Total net sales

$     248


$     317


$     267


$       565


$       463

Single-family homes closed

508


628


636


1,136


1,099

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

$     476


$    493


$    405


$      485


$      400

Single-family gross margin(1)

20.9 %


21.6 %


21.6 %


21.3 %


20.7 %

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





 

For more information contact:

Analysts - Beth Baum or Denise Merle (253) 924-2058


Media - Anthony Chavez (253) 924-7148

Logo - http://photos.prnewswire.com/prnh/20120111/AQ34535LOGO

SOURCE Weyerhaeuser Company

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.