EX-99.2 3 wy2012q4ex-992.htm EXHIBITS TO PRESS RELEASE WY 2012 Q4 EX-99.2


 
Weyerhaeuser Company










Exhibit 99.2
 
 
Q4.2012 Analyst Package











 
 
Preliminary results, subject to audit













 
Consolidated Statement of Operations
 














 
in millions
Q1

Q2

Q3

Q4

Year-to-date
 

Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012

Dec 31,
2011
 
 
Net sales and revenues
$
1,494


$
1,793


$
1,772


$
2,000


$
1,615


$
7,059


$
6,216

 
Cost of products sold
1,290


1,516


1,424


1,580


1,317


5,810


5,120

 
Gross margin
204


277


348


420


298


1,249


1,096

 
Selling expenses
42


47


49


56


45


194


178

 
General and administrative expenses
108


95


107


126


104


436


423

 
Research and development expenses
7


8


8


9


9


32


30

 
Charges for restructuring, closures and impairments
12


4


10


6


31


32


83

 
Other operating income, net
(66
)

(53
)

(28
)

(33
)

(22
)

(180
)

(212
)
 
Operating income
101


176


202


256


131


735


594

 
Interest income and other
12


11


15


14


12


52


47

 
Interest expense, net of capitalized interest
(87
)

(86
)

(87
)

(88
)

(88
)

(348
)

(384
)
 
Earnings from continuing operations before income taxes
26


101


130


182


55


439


257

 
Income taxes
15


(17
)

(13
)

(40
)

10


(55
)

62

 
Earnings from continuing operations
41


84


117


142


65


384


319

 
Earnings from discontinued operations, net of income taxes












12

 
Net earnings
41


84


117


142


65


384


331

 
Add: net loss attributable to noncontrolling interests






1




1



 
Net earnings attributable to Weyerhaeuser common shareholders
$
41


$
84


$
117


$
143


$
65


$
385


$
331

 

 
Per Share Information
 

 
in millions
Q1

Q2

Q3

Q4

Year-to-date
 

Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012

Dec 31,
2011
 
 
Earnings per share attributable to Weyerhaeuser common shareholders, basic:




















 
Continuing operations
$
0.08


$
0.16


$
0.22


$
0.26


$
0.12


$
0.71


$
0.60

 
Discontinued operations












0.02

 
Net earnings per share
$
0.08


$
0.16


$
0.22


$
0.26


$
0.12


$
0.71


$
0.62

 
Earnings per share attributable to Weyerhaeuser common shareholders, diluted:




















 
Continuing operations
$
0.08


$
0.16


$
0.22


$
0.26


$
0.12


$
0.71


$
0.59

 
Discontinued operations












0.02

 
Net earnings per share
$
0.08


$
0.16


$
0.22


$
0.26


$
0.12


$
0.71


$
0.61

 
Dividends paid per share
$
0.15


$
0.15


$
0.15


$
0.17


$
0.15


$
0.62


$
0.60

 
Weighted average shares outstanding (in thousands):













 
Basic
537,368


537,966


539,094


542,101


536,432


539,140


537,534

 
Diluted
539,728


540,033


542,311


547,137


538,119


542,310


539,879

 
Common shares outstanding at end of period (in thousands)
537,409


537,526


540,672


542,393


536,425


542,393


536,425

 





















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





















 
in millions
Q1

Q2

Q3

Q4

Year-to-date
 

Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012

Dec 31,
2011
 
 
Operating income
$
101


$
176


$
202


$
256


$
131


$
735


$
594

 
Depreciation, depletion and amortization
113


113


112


118


117


456


476

 
Non-operating pension and postretirement costs
7


7


7


8


5


29


26

 
Special items
(38
)

(57
)





19


(95
)

(100
)
 
Capitalized interest included in cost of products sold
3


19


6


9


12


37


29

 
Adjusted EBITDA, excluding special items*
$
186


$
258


$
327


$
391


$
284


$
1,162


$
1,025

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

















Page 1 of 9



Weyerhaeuser Company







 
Q4.2012 Analyst Package









Preliminary results, subject to audit









Consolidated Balance Sheet










in millions
Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012
 
Dec 31,
2011
 
ASSETS









Forest Products:









Current assets:









Cash and cash equivalents
$
726


$
857


$
602


$
893

  
$
950

Receivables, less allowances
479


488


504


468

  
468

Receivables for taxes
24


6


97


95


22

Inventories
517


487


512


531

  
476

Prepaid expenses
80


86


83


83

  
68

Deferred tax assets
113


100


117


65

  
81

Total current assets
1,939


2,024


1,915


2,135

  
2,065

Property and equipment, net
2,829


2,770


2,759


2,859

  
2,901

Construction in progress
192


208


220


50

  
145

Timber and timberlands at cost, less depletion charged to disposals
3,970


3,963


3,967


3,961

  
3,978

Investments in and advances to equity affiliates
189


187


188


192

  
192

Goodwill
40


40


40


40

  
40

Deferred tax assets
50


48


56


189


36

Other assets
442


435


352


358

  
444

Assets held by variable interest entities
914


916


914


805

  
916


10,565


10,591


10,411


10,589

  
10,717

Real Estate:






 

 
Cash and cash equivalents
2


4


6


5

  
3

Receivables, less allowances
30


38


36


72

  
41

Real estate in process of development and for sale
606


581


602


658

  
555

Land being processed for development
943


959


982


904

  
936

Investments in and advances to equity affiliates
19


20


20


21

  
21

Deferred tax assets
246


238


233


202

  
240

Other assets
113


89


98


94

  
113

Assets held by variable interest entities


3


6


47

  
8


1,959


1,932


1,983


2,003

  
1,917

Total assets
$
12,524


$
12,523


$
12,394


$
12,592

  
$
12,634











LIABILITIES AND EQUITY









Forest Products:









Current liabilities:









Current maturities of long-term debt
$
167


$
184


$
340


$
340


$
12

Accounts payable
343


360


356


329

  
336

Accrued liabilities
536


576


558


561

  
593

Total current liabilities
1,046


1,120


1,254


1,230

  
941

Long-term debt
4,026


4,005


3,842


3,842

  
4,181

Deferred income taxes
158


140


124



  
129

Deferred pension and other postretirement benefits
1,470


1,429


1,378


1,936

  
1,467

Other liabilities
407


400


477


493

  
408

Liabilities (nonrecourse to the company) held by variable interest entities
775


778


680


681

  
776


7,882


7,872


7,755


8,182

  
7,902

Real Estate:






 

 
Long-term debt
283


283


109


109

  
285

Other liabilities
154


171


177


187

  
172

Liabilities (nonrecourse to the company) held by variable interest entities






1

  
8


437


454


286


297

  
465

Total liabilities
8,319


8,326


8,041


8,479

  
8,367

Equity:









Total Weyerhaeuser shareholders' interest
4,197


4,186


4,340


4,070

  
4,263

Noncontrolling interests
8


11


13


43

  
4

Total equity
4,205


4,197


4,353


4,113

  
4,267

Total liabilities and equity
$
12,524


$
12,523


$
12,394


$
12,592

  
$
12,634


Page 2 of 9



 
Weyerhaeuser Company











 
 
Q4.2012 Analyst Package













 
Preliminary results, subject to audit













 
Consolidated Statement of Cash Flows
 














 
in millions
Q1

Q2

Q3

Q4

Year-to-date
 

Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012

Dec 31,
2011
 
 
Cash flows from operations:













 
Net earnings
$
41


$
84


$
117


$
142


$
65


$
384


$
331

 
Noncash charges (credits) to income:













 
Depreciation, depletion and amortization
113


113


112


118


117


456


480

 
Deferred income taxes, net
(6
)

13


15


40


51


62


(26
)
 
Pension and other postretirement benefits
(28
)

(30
)

19


20


21


(19
)

81

 
Share-based compensation expense
10


8


10


9


6


37


25

 
Charges for impairment of assets
8


4


7


5


19


24


56

 
Net gains on dispositions of assets
(7
)

(10
)

(22
)

(30
)

(9
)

(69
)

(236
)
 
Foreign exchange transaction (gains) losses
(7
)

9


(10
)

2


(5
)

(6
)

6

 
Change in:













 
Receivables less allowances
(5
)

(18
)

(10
)



(19
)

(33
)

(53
)
 
Receivable for taxes
(2
)

18


(1
)

2


(18
)

17


(37
)
 
Inventories
(40
)

28


(22
)

(20
)

(6
)

(54
)

(46
)
 
Real estate and land
(55
)

7


(47
)

20


37


(75
)

(12
)
 
Prepaid expenses
(8
)

(12
)

2


2


17


(16
)

3

 
Accounts payable and accrued liabilities
(56
)

65


1


(5
)

(59
)

5


(133
)
 
Deposits on land positions and other assets


22


(11
)

(7
)

5


4


(4
)
 
Pension and postretirement contributions
(35
)

(33
)

(41
)

(36
)

(79
)

(145
)

(143
)
 
Other
17


(1
)

3


(10
)

4


9


(1
)
 
Net cash from operations
(60
)

267


122


252


147


581


291

 














 
Cash flows from investing activities:













 
Property and equipment
(54
)

(68
)

(75
)

(59
)

(76
)

(256
)

(212
)
 
Timberlands reforestation
(10
)

(7
)

(5
)

(7
)

(6
)

(29
)

(29
)
 
Proceeds from sale of assets
6


18


12


44


9


80


362

 
Proceeds of investments (payments of liabilities) held by special purpose entities




(97
)

110




13



 
Other
1


(1
)

(1
)

1


7




1

 
Cash from investing activities
(57
)

(58
)

(166
)

89


(66
)

(192
)

122

 














 
Cash flows from financing activities:













 
Cash dividends
(81
)

(80
)

(81
)

(92
)

(81
)

(334
)

(323
)
 
Change in book overdrafts
(29
)

9


(12
)



28


(32
)

2

 
Payments on debt
(2
)

(4
)

(181
)



(33
)

(187
)

(583
)
 
Exercises of stock options
5


2


66


39


1


112


38

 
Repurchase of common stock








(13
)



(37
)
 
Other
(1
)

(3
)

(1
)

2


(1
)

(3
)

(24
)
 
Cash from financing activities
(108
)

(76
)

(209
)

(51
)

(99
)

(444
)

(927
)
 














 
Net change in cash and cash equivalents
(225
)

133


(253
)

290


(18
)

(55
)

(514
)
 
Cash and cash equivalents at beginning of period
953


728


861


608


971


953


1,467

 
Cash and cash equivalents at end of period
$
728


$
861


$
608


$
898


$
953


$
898


$
953

 
Cash paid (received) during the year for:













 
Interest, net of amount capitalized
$
116


$
57


$
117


$
51


$
58


$
341


$
420

 
Income taxes
$
(10
)

$
(5
)

$
1


$
1


$
7


$
(13
)

$
28


 

Page 3 of 9



 
Weyerhaeuser Company








Total Company Statistics
 
 
Q4.2012 Analyst Package











 
 
Preliminary results, subject to audit













 
Special Items Included in Net Earnings
 














 
in millions
Q1

Q2

Q3

Q4

Year-to-date
 
 
Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012
 
Dec 31,
2011
 
 
Net earnings
$
41


$
84


$
117


$
143

 
$
65


$
385


$
331

 
Income tax adjustments












(83
)
 
Gain on sale of 82,000 acres of non-strategic timberlands





 

 




(96
)
 
Loss on early extinguishment of debt












16

 
Restructuring, impairments and other charges
10








12


10


36

 
Gain on postretirement plan amendment
(34
)

(33
)







(67
)


 
Gain on sale of properties


(4
)







(4
)

(9
)
 
Tax settlements
(8
)









(8
)


 
Charges related to the sale of hardwoods












14

 
Gain on sale of Westwood Shipping Lines












(31
)
 
Net earnings before special items
$
9


$
47


$
117

 
$
143

 
$
77


$
316


$
178

 





 
 
Q1

Q2

Q3

Q4

Year-to-date
 
 
Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012
 
Dec 31,
2011
 
 
Net earnings per diluted share
$
0.08


$
0.16


$
0.22


$
0.26

 
$
0.12


$
0.71


$
0.61

 
Income tax adjustments












(0.15
)
 
Gain on sale of 82,000 acres of non-strategic timberlands





 

 




(0.18
)
 
Loss on early extinguishment of debt












0.03

 
Restructuring, impairments and other charges
0.02








0.02


0.02


0.07

 
Gain on postretirement plan amendment
(0.06
)

(0.06
)







(0.12
)


 
Gain on sale of properties


(0.01
)







(0.01
)

(0.02
)
 
Tax settlements
(0.02
)









(0.02
)


 
Charges related to the sale of hardwoods












0.03

 
Gain on sale of Westwood Shipping Lines












(0.06
)
 
Net earnings before special items per diluted share
$
0.02


$
0.09


$
0.22

 
$
0.26

 
$
0.14


$
0.58


$
0.33

 

 
Selected Total Company Items, Excluding Discontinued Operations
 

 
in millions
Q1

Q2

Q3

Q4

Year-to-date
 
 
Mar 31,
2012

Jun 30,
2012

Sep 30,
2012

Dec 31,
2012

Dec 31,
2011

Dec 31,
2012
 
Dec 31,
2011
 
 
Depreciation, depletion and amortization:





 

 







 
Cost of products sold
$
102


$
103

 
$
102

 
$
109

 
$
104


$
416


$
422

 
Selling, general and administrative expenses
11


10

 
10

 
9

 
13


40


54

 
Total depreciation, depletion and amortization
$
113


$
113

 
$
112

 
$
118

 
$
117


$
456


$
476

 















 
Pension and postretirement costs:





 

 







 
Pension and postretirement costs allocated to business segments
$
13


$
14

 
$
12

 
$
12

 
$
12


$
51


$
46

 
Pension and postretirement costs not allocated
7


7

 
7

 
8

 
5


29


26

 
Total company pension and postretirement costs
$
20


$
21


$
19

 
$
20

 
$
17


$
80


$
72

 
















 
Total decrease (increase) in Forest Products working capital (1)
$
(148
)

$
103

 
$
(29
)
 
$
(85
)
 
$
(41
)

$
(159
)

$
(211
)
 
Cash spent for capital expenditures
$
(64
)

$
(75
)
 
$
(80
)
 
$
(66
)
 
$
(82
)

$
(285
)

$
(238
)
 
(1) Working capital does not include cash balances.





















Page 4 of 9



Weyerhaeuser Company






Timberlands Segment
 
Q4.2012 Analyst Package













Preliminary results, subject to audit




























Segment Statement of Operations















in millions

Q1.2012

Q2.2012
 
Q3.2012
 
Q4.2012

Q4.2011

YTD.2012

YTD.2011
Sales to and revenues from unaffiliated customers
$
250


$
262

 
$
267

 
$
298


$
274


$
1,077


$
1,044

Intersegment sales
190


146

 
162

 
185


167


683


646

Total net sales and revenues
440


408

 
429

 
483


441


1,760


1,690

Cost of products sold
353


313

 
336

 
374


358


1,376


1,290

Gross margin
87


95

 
93

 
109


83


384


400

Selling expenses
2


2


3


2


3


9


10

General and administrative expenses
23


21

 
21

 
20


18


85


81

Research and development expenses
4


5

 
4

 
6


6


19


18

Restructuring, closures and impairments






2




2



Other operating income, net
(11
)

(10
)
 
(14
)
 
(14
)

(14
)

(49
)

(196
)
Operating income
69


77

 
79

 
93


70


318


487

Interest income and other
1



 
1

 
1


1


3


4

Loss attributable to noncontrolling interest






1




1



Net contribution to earnings (see note 1 on page 9)
$
70


$
77

 
$
80

 
$
95


$
71


$
322


$
491




















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



















in millions

Q1.2012

Q2.2012
 
Q3.2012
 
Q4.2012

Q4.2011

YTD.2012

YTD.2011
Operating income
$
69


$
77

 
$
79

 
$
93


$
70


$
318


$
487

Depreciation, depletion and amortization
35


34

 
35

 
38


35


142


137

Special items





 






(152
)
Adjusted EBITDA, excluding special items*
$
104


$
111


$
114

 
$
131


$
105


$
460


$
472

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




































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



















 

Q1.2012

Q2.2012
 
Q3.2012
 
Q4.2012

Q4.2011

YTD.2012

YTD.2011
Gain on sale of 82,000 acres of non-strategic timberlands
$


$

  
$

  
$


$


$


$
152




















Selected Segment Items



















 

Q1.2012

Q2.2012
 
Q3.2012
 
Q4.2012

Q4.2011

YTD.2012

YTD.2011
Total decrease (increase) in working capital (1)
$
(9
)

$
6

 
$
19

 
$
(37
)

$
(6
)

$
(21
)

$
(26
)
Cash spent for capital expenditures
$
(12
)

$
(15
)
 
$
(17
)
 
$
(16
)

$
(13
)

$
(60
)

$
(53
)
(1) Working capital does not include cash balances.






































Segment Statistics