WY Weyerhaeuser Company

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 25, 2024

 

 

WEYERHAEUSER COMPANY

(Exact name of registrant as specified in charter)

 

 

Washington	1-4825	91-0470860
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification Number)

 

220 Occidental Avenue South

Seattle, Washington 98104-7800

(Address of principal executive offices)

(zip code)

Registrant’s telephone number, including area code:

(206) 539-3000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $1.25 per share		WY		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934:

 

☐	Emerging growth company
☐	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

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TABLE OF CONTENTS

 

	Item 2.02. Results of Operations and Financial Condition
	Item 9.01. Financial Statements and Exhibits
	SIGNATURES
	EXHIBIT 99.1
	EXHIBIT 99.2

 

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Section 2 - Financial Information

Item 2.02. Results of Operations and Financial Condition

On July 25, 2024, Weyerhaeuser Company will post and make available on its website its financial results for the quarter ended June 30, 2024. Copies of the earnings release and the exhibit thereto are furnished as Exhibit 99.1 and Exhibit 99.2 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Section 9 - Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits. The following items are furnished as exhibits to this report.

 

		Exhibit No.	Description
		99.1	Earnings release of Weyerhaeuser Company posted July 25, 2024 reporting results of operations for the quarter ended June 30, 2024.
		99.2	Exhibit to earnings release of Weyerhaeuser Company posted July 25, 2024.
		104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

 

 

 

 

 

 

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

WEYERHAEUSER COMPANY
By:		/s/ David M. Wold
Name:		David M. Wold
Its:		Senior Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

 

Date: July 25, 2024

 

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EXHIBIT 99.1

 

 

For more information contact:		Analysts – Andy Taylor (206) 539-3907
		Media – Nancy Thompson (919) 861-0342

 

 

Weyerhaeuser Reports Second Quarter Results

 

 

SEATTLE, July 25, 2024 – Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $173 million, or 24 cents per diluted share, on net sales of $1.9 billion. This compares with net earnings of $230 million, or 31 cents per diluted share, on net sales of $2.0 billion for the same period last year and net earnings of $114 million for first quarter 2024. Excluding an after-tax benefit of $19 million for special items, the company reported second quarter net earnings of $154 million, or 21 cents per diluted share. This compares with net earnings before special items of $238 million for the same period last year. There were no special items in first quarter 2024. Adjusted EBITDA for second quarter 2024 was $410 million, compared with $469 million for the same period last year and $352 million for first quarter 2024.

This afternoon, Weyerhaeuser also announced strategic timberland acquisitions in Alabama, totaling 84,300 acres for $244 million. The first transaction closed in second quarter 2024 for $48 million. The remaining transactions are under contract and expected to close in the second half of 2024, subject to customary closing conditions. These highly productive and mature timberlands are strategically located to deliver immediate synergies with existing Weyerhaeuser operations. In addition, the acquisitions are expected to generate portfolio-leading cash flow and harvest tons per acre within the company’s Southern Timberlands business. Including these transactions, the company will have completed approximately $775 million against the target to grow its Timberlands portfolio through $1.0 billion of disciplined investments by the end of 2025.

"Our businesses delivered solid operating performance in the second quarter,” said Devin W. Stockfish, president and chief executive officer. “Despite ongoing challenges in the lumber market, Adjusted EBITDA improved across each of our business segments compared to first quarter 2024. In addition, we continue to make meaningful progress toward our multi-year growth targets with the high-quality timberland acquisitions we announced today. Looking forward, we maintain a constructive outlook for the longer-term demand fundamentals that support our businesses and are uniquely positioned to navigate a range of market conditions given our unmatched portfolio of assets, relentless focus on operational excellence and innovation, and disciplined approach to capital allocation. Our balance sheet is strong, and we remain committed to serving our customers and driving long-term value for our shareholders."

 

 

 

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WEYERHAEUSER FINANCIAL HIGHLIGHTS		2024				2024				2023
(millions, except per share data)		Q1				Q2				Q2
Net sales		$	1,796			$	1,939			$	1,997
Net earnings		$	114			$	173			$	230
Net earnings per diluted share		$	0.16			$	0.24			$	0.31
Weighted average shares outstanding, diluted			731				729				732
Net earnings before special items(1)(2)		$	114			$	154			$	238
Net earnings per diluted share before special items(1)		$	0.16			$	0.21			$	0.32
Adjusted EBITDA(1)		$	352			$	410			$	469
Net cash from operations		$	124			$	432			$	496
Adjusted FAD(3)		$	45			$	316			$	415

TIMBERLANDS

 

FINANCIAL HIGHLIGHTS		2024				2024
(millions)		Q1				Q2				Change
Net sales		$	521			$	555			$	34
Net contribution to pretax earnings		$	80			$	81			$	1
Adjusted EBITDA		$	144			$	147			$	3

Q2 2024 Performance – Fee harvest volumes in the West and South were moderately higher than the first quarter, as operating conditions were seasonally favorable. In the West, domestic sales volumes were moderately higher and export sales volumes were significantly higher. Sales realizations were slightly higher overall due to increased export sales volumes. Domestic sales realizations were slightly lower, and per unit log and haul costs were higher. In the South, sales realizations and per unit log and haul costs were comparable. Forestry and road costs in the West and South were seasonally higher.

Q3 2024 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be approximately $20-30 million lower than the second quarter. In the West, the company expects slightly lower fee harvest volumes, moderately lower sales volumes (primarily for export), moderately lower sales realizations, and lower per unit log and haul costs. In the South, the company expects fee harvest volumes to be moderately higher and sales realizations and per unit log and haul costs to be comparable. Forestry and road costs in the West and South are expected to be seasonally higher.

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REAL ESTATE, ENERGY & NATURAL RESOURCES

 

FINANCIAL HIGHLIGHTS		2024				2024
(millions)		Q1				Q2				Change
Net sales		$	107			$	109			$	2
Net contribution to pretax earnings		$	60			$	59			$	(1	)
Adjusted EBITDA		$	94			$	102			$	8

Q2 2024 Performance – Adjusted EBITDA increased from the first quarter due to stronger results from the company’s Energy and Natural Resources business. For the Real Estate business, the average price per acre decreased significantly while the number of acres sold increased significantly due to the timing and mix of properties sold.

Q3 2024 Outlook – Weyerhaeuser anticipates third quarter earnings will be approximately $10 million lower than the second quarter and Adjusted EBITDA will be approximately $30 million lower than the second quarter due to the timing and mix of real estate sales. The company now expects full year 2024 Adjusted EBITDA to be approximately $330 million, a $10 million increase from prior outlook, and continues to expect basis as a percentage of real estate sales to be 35 to 45 percent for the full year.

WOOD PRODUCTS

 

FINANCIAL HIGHLIGHTS		2024				2024
(millions)		Q1				Q2				Change
Net sales		$	1,302			$	1,421			$	119
Net contribution to pretax earnings		$	128			$	196			$	68
Pretax benefit for special items		$	—			$	(25	)		$	(25	)
Net contribution to pretax earnings before special items		$	128			$	171			$	43
Adjusted EBITDA		$	184			$	225			$	41

Q2 2024 Performance – Sales realizations for lumber decreased 2 percent while sales realizations for oriented strand board increased 13 percent compared with first quarter averages. Sales volumes for lumber were moderately higher, partially due to increased production following winter weather disruptions in the first quarter. Unit manufacturing costs were moderately lower and log costs were slightly lower. For oriented strand board, sales volumes and unit manufacturing costs were comparable, while fiber costs were slightly lower. For engineered wood products, sales realizations were comparable for most products. Sales volumes were higher and unit manufacturing costs were slightly lower. Raw material costs were lower for solid section and higher for I-joist products, primarily for oriented strand board webstock.

Second quarter pretax special items include a $25 million product remediation recovery.

Q3 2024 Outlook – Weyerhaeuser anticipates third quarter earnings before special items and Adjusted EBITDA will be lower than the second quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects lower sales volumes, slightly lower log costs, and higher unit manufacturing costs. For oriented strand board, the company anticipates comparable sales volumes, slightly higher fiber costs, and moderately higher unit manufacturing costs. For engineered wood products, the company expects comparable sales volumes, lower raw material costs, and moderately lower sales realizations, primarily for plywood and medium density fiberboard. For distribution, the company anticipates slightly lower results compared to the second quarter.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls approximately 10.5 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in

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North America and operates additional business lines around product distribution, climate solutions, real estate, and energy and natural resources, among others. In 2023, the company generated $7.7 billion in net sales and employed approximately 9,300 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser’s common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 26, 2024 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 26, 2024.

To join the conference call from within North America, dial 1-877-407-0792 (access code: 13742028) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13742028). Replays will be available for two weeks at 1-844-512-2921 (access code: 13742028) from within North America, and at 1-412-317-6671 (access code: 13742028) from outside North America.

FORWARD-LOOKING STATEMENTS

This earnings release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, with respect to our outlook and expectations concerning the following: the company's expectations concerning the occurrence, timing and expected financial contributions and economic results of its acquisitions of certain Alabama timberlands, including expected synergies, cash flow and harvest tons per acre; our long-term outlook on the drivers of demand for our products; our ability to manage our business through various market conditions; future operating performance, innovation and delivery of long-term shareholder value and returns; earnings and Adjusted EBITDA for our Timberlands and Real Estate, Energy & Natural Resources segments; earnings before special items and Adjusted EBITDA for our Wood Products segment; fee harvest volumes, sales volumes, sales realizations, log and haul costs and forestry and road costs for our Timberlands segment; the timing and mix of real estate sales for our Real Estate, Energy & Natural Resources segment; sales volumes, log costs and unit manufacturing costs for our lumber business; sales volumes, raw material costs and unit manufacturing costs for our oriented strand board business; sales volumes, sales realizations and raw material costs for our engineered wood products business; and results for our distribution business. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as “anticipate,” “committed,” “expect,” “look forward,” “will,” and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

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

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

 

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RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

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

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2024:

 

(millions)		Timberlands				Real Estate & ENR				Wood Products				Unallocated Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	114
Interest expense, net of capitalized interest																			67
Income taxes																			20
Net contribution (charge) to earnings		$	80			$	60			$	128			$	(67	)		$	201
Non-operating pension and other post-employment benefit costs			—				—				—				11				11
Interest income and other			—				—				—				(16	)			(16	)
Operating income (loss)			80				60				128				(72	)			196
Depreciation, depletion and amortization			64				3				56				2				125
Basis of real estate sold			—				31				—				—				31
Adjusted EBITDA		$	144			$	94			$	184			$	(70	)		$	352

 

The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2024:

 

(millions)		Timberlands				Real Estate & ENR				Wood Products				Unallocated Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	173
Interest expense, net of capitalized interest																			67
Income taxes																			33
Net contribution (charge) to earnings		$	81			$	59			$	196			$	(63	)		$	273
Non-operating pension and other post-employment benefit costs			—				—				—				10				10
Interest income and other			(1	)			—				—				(12	)			(13	)
Operating income (loss)			80				59				196				(65	)			270
Depreciation, depletion and amortization			67				4				54				1				126
Basis of real estate sold			—				39				—				—				39
Special items included in operating income (loss)(1)			—				—				(25	)			—				(25	)
Adjusted EBITDA		$	147			$	102			$	225			$	(64	)		$	410

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The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2023:

 

(millions)		Timberlands				Real Estate & ENR				Wood Products				Unallocated Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	230
Interest expense, net of capitalized interest																			70
Income taxes																			25
Net contribution (charge) to earnings		$	104			$	52			$	218			$	(49	)		$	325
Non-operating pension and other post-employment benefit costs			—				—				—				12				12
Interest income and other			—				—				—				(18	)			(18	)
Operating income (loss)			104				52				218				(55	)			319
Depreciation, depletion and amortization			68				5				52				1				126
Basis of real estate sold			—				13				—				—				13
Special items included in operating income (loss)(1)			—				—				—				11				11
Adjusted EBITDA		$	172			$	70			$	270			$	(43	)		$	469

 

The table below reconciles Adjusted EBITDA for the year-to-date period ended June 30, 2024:

 

(millions)		Timberlands				Real Estate & ENR				Wood Products				Unallocated Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	287
Interest expense, net of capitalized interest																			134
Income taxes																			53
Net contribution (charge) to earnings		$	161			$	119			$	324			$	(130	)		$	474
Non-operating pension and other post-employment benefit costs			—				—				—				21				21
Interest income and other			(1	)			—				—				(28	)			(29	)
Operating income (loss)			160				119				324				(137	)			466
Depreciation, depletion and amortization			131				7				110				3				251
Basis of real estate sold			—				70				—				—				70
Special items included in operating income (loss)(1)			—				—				(25	)			—				(25	)
Adjusted EBITDA		$	291			$	196			$	409			$	(134	)		$	762

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RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

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

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

 

		2024				2024				2023
(millions)		Q1				Q2				Q2
Net earnings		$	114			$	173			$	230
Environmental remediation charge			—				—				8
Product remediation recovery			—				(19	)			—
Net earnings before special items		$	114			$	154			$	238

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

 

		2024				2024				2023
		Q1				Q2				Q2
Net earnings per diluted share		$	0.16			$	0.24			$	0.31
Environmental remediation charge			—				—				0.01
Product remediation recovery			—				(0.03	)			—
Net earnings per diluted share before special items		$	0.16			$	0.21			$	0.32

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

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

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

 

		2024				2024				2023
(millions)		Q1				Q2				Q2
Net cash from operations		$	124			$	432			$	496
Capital expenditures			(79	)			(91	)			(81	)
Adjustments to FAD(1)			—				(25	)			—
Adjusted FAD		$	45			$	316			$	415

 

 

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Weyerhaeuser Company	Exhibit 99.2

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

 

Consolidated Statement of Operations

 

		Q1				Q2								Year-to-Date
in millions		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net sales		$	1,796			$	1,939			$	1,997			$	3,735			$	3,878
Costs of sales			1,441				1,535				1,528				2,976				3,040
Gross margin			355				404				469				759				838
Selling expenses			22				22				22				44				44
General and administrative expenses			120				116				108				236				209
Other operating costs (income), net			17				(4	)			20				13				30
Operating income			196				270				319				466				555
Non-operating pension and other post-employment benefit costs			(11	)			(10	)			(12	)			(21	)			(21	)
Interest income and other			16				13				18				29				30
Interest expense, net of capitalized interest			(67	)			(67	)			(70	)			(134	)			(136	)
Earnings before income taxes			134				206				255				340				428
Income taxes			(20	)			(33	)			(25	)			(53	)			(47	)
Net earnings		$	114			$	173			$	230			$	287			$	381

 

 

Per Share Information

 

		Q1				Q2								Year-to-Date
		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Earnings per share, basic and diluted		$	0.16			$	0.24			$	0.31			$	0.39			$	0.52
Dividends paid per common share		$	0.34			$	0.20			$	0.19			$	0.54			$	1.28
Weighted average shares outstanding (in thousands):
Basic			730,043				729,026				732,021				729,534				732,599
Diluted			730,558				729,341				732,362				729,950				732,961
Common shares outstanding at end of period (in thousands)			729,141				727,519				730,850				727,519				730,850

 

 

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

 

		Q1				Q2								Year-to-Date
in millions		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net earnings		$	114			$	173			$	230			$	287			$	381
Non-operating pension and other post-employment benefit costs			11				10				12				21				21
Interest income and other			(16	)			(13	)			(18	)			(29	)			(30	)
Interest expense, net of capitalized interest			67				67				70				134				136
Income taxes			20				33				25				53				47
Operating income			196				270				319				466				555
Depreciation, depletion and amortization			125				126				126				251				252
Basis of real estate sold			31				39				13				70				46
Special items included in operating income			—				(25	)			11				(25	)			11
Adjusted EBITDA(1)		$	352			$	410			$	469			$	762			$	864

 

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

 

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Weyerhaeuser Company	Total Company Statistics

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

Special Items Included in Net Earnings (Income Tax Affected)

 

		Q1				Q2								Year-to-Date
in millions		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net earnings		$	114			$	173			$	230			$	287			$	381
Environmental remediation charge			—				—				8				—				8
Product remediation recovery			—				(19	)			—				(19	)			—
Net earnings before special items(1)		$	114			$	154			$	238			$	268			$	389

 

 

		Q1				Q2								Year-to-Date
		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net earnings per diluted share		$	0.16			$	0.24			$	0.31			$	0.39			$	0.52
Environmental remediation charge			—				—				0.01				—				0.01
Product remediation recovery			—				(0.03	)			—				(0.02	)			—
Net earnings per diluted share before special items(1)		$	0.16			$	0.21			$	0.32			$	0.37			$	0.53

 

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

 

Selected Total Company Items

 

		Q1				Q2								Year-to-Date
in millions		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Pension and post-employment costs:
Pension and post-employment service costs		$	5			$	5			$	5			$	10			$	11
Non-operating pension and other post-employment benefit costs			11				10				12				21				21
Total company pension and post-employment costs		$	16			$	15			$	17			$	31			$	32

 

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Weyerhaeuser Company

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

 

Condensed Consolidated Balance Sheet

 

in millions		March 31, 2024				June 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	871			$	997			$	1,164
Receivables, net			405				410				354
Receivables for taxes			13				10				10
Inventories			630				614				566
Prepaid expenses and other current assets			192				152				219
Total current assets			2,111				2,183				2,313
Property and equipment, net			2,283				2,240				2,269
Construction in progress			243				303				270
Timber and timberlands at cost, less depletion			11,481				11,475				11,528
Minerals and mineral rights, less depletion			198				194				200
Deferred tax assets			14				13				15
Other assets			426				392				388
Total assets		$	16,756			$	16,800			$	16,983
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$	210			$	210			$	—
Accounts payable			310				281				287
Accrued liabilities			424				504				501
Total current liabilities			944				995				788
Long-term debt, net			4,861				4,862				5,069
Deferred tax liabilities			84				87				81
Deferred pension and other post-employment benefits			460				460				461
Other liabilities			353				351				348
Total liabilities			6,702				6,755				6,747
Total equity			10,054				10,045				10,236
Total liabilities and equity		$	16,756			$	16,800			$	16,983

 

 

 

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Weyerhaeuser Company

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

 

Consolidated Statement of Cash Flows

 

		Q1				Q2								Year-to-Date
in millions		March 31,  2024				June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Cash flows from operations:
Net earnings		$	114			$	173			$	230			$	287			$	381
Noncash charges (credits) to earnings:
Depreciation, depletion and amortization			125				126				126				251				252
Basis of real estate sold			31				39				13				70				46
Pension and other post-employment benefits			16				15				17				31				32
Share-based compensation expense			10				12				9				22				17
Other			1				3				(1	)			4				2
Change in:
Receivables, net			(53	)			(4	)			(22	)			(57	)			(105	)
Receivables and payables for taxes			(3	)			16				13				13				27
Inventories			(68	)			15				50				(53	)			14
Prepaid expenses and other current assets			17				16				17				33				8
Accounts payable and accrued liabilities			(51	)			37				57				(14	)			(30	)
Pension and post-employment benefit contributions and payments			(4	)			(5	)			(5	)			(9	)			(11	)
Other			(11	)			(11	)			(8	)			(22	)			(11	)
Net cash from operations		$	124			$	432			$	496			$	556			$	622
Cash flows from investing activities:
Capital expenditures for property and equipment		$	(57	)		$	(82	)		$	(69	)		$	(139	)		$	(119	)
Capital expenditures for timberlands reforestation			(22	)			(9	)			(12	)			(31	)			(33	)
Acquisitions of timberlands			—				(53	)			(2	)			(53	)			(2	)
Purchase of short-term investments			—				—				(664	)			—				(664	)
Other			2				1				(2	)			3				—
Net cash from investing activities		$	(77	)		$	(143	)		$	(749	)		$	(220	)		$	(818	)
Cash flows from financing activities:
Cash dividends on common shares		$	(248	)		$	(146	)		$	(139	)		$	(394	)		$	(938	)
Net proceeds from issuance of long-term debt			—				—				743				—				743
Repurchases of common shares			(50	)			(49	)			(51	)			(99	)			(85	)
Other			(10	)			—				(2	)			(10	)			(10	)
Net cash from financing activities		$	(308	)		$	(195	)		$	551			$	(503	)		$	(290	)
Net change in cash, cash equivalents and restricted cash		$	(261	)		$	94			$	298			$	(167	)		$	(486	)
Cash, cash equivalents and restricted cash at beginning of period			1,164				903				797				1,164				1,581
Cash, cash equivalents and restricted cash at end of period		$	903			$	997			$	1,095			$	997			$	1,095
Cash paid during the period for:
Interest, net of amounts capitalized		$	57			$	69			$	70			$	126			$	127
Income taxes, net of refunds		$	23			$	15			$	12			$	38			$	18

 

 

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Weyerhaeuser Company	Timberlands Segment

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

 

Segment Statement of Operations

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Sales to unaffiliated customers		$	387			$	409			$	417			$	796			$	879
Intersegment sales			134				146				150				280				292
Total net sales			521				555				567				1,076				1,171
Costs of sales			415				450				439				865				900
Gross margin			106				105				128				211				271
General and administrative expenses			25				25				24				50				49
Other operating costs (income), net			1				—				—				1				(2	)
Operating income			80				80				104				160				224
Interest income and other			—				1				—				1				—
Net contribution to earnings		$	80			$	81			$	104			$	161			$	224

 

 

 

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

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Operating income		$	80			$	80			$	104			$	160			$	224
Depreciation, depletion and amortization			64				67				68				131				136
Adjusted EBITDA(1)		$	144			$	147			$	172			$	291			$	360

 

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

 

 

Selected Segment Items

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Total decrease in working capital(2)		$	8			$	32			$	51			$	40			$	27
Cash spent for capital expenditures(3)		$	(31	)		$	(21	)		$	(22	)		$	(52	)		$	(48	)

 

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

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

 

 

Segment Statistics(4)

 

			Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Third Party		Delivered logs:
Net Sales		West	$	176			$	205			$	206			$	381			$	435
(millions)		South		151				153				162				304				330
		North		13				9				7				22				24
		Total delivered logs		340				367				375				707				789
		Stumpage and pay-as-cut timber		11				13				15				24				31
		Recreational and other lease revenue		19				19				17				38				35
		Other revenue		17				10				10				27				24
		Total	$	387			$	409			$	417			$	796			$	879
Delivered Logs		West	$	121.06			$	123.15			$	123.45			$	122.18			$	130.30
Third Party Sales		South	$	36.93			$	36.89			$	37.49			$	36.91			$	37.86
Realizations (per ton)		North	$	73.58			$	76.55			$	78.69			$	74.78			$	80.73
Delivered Logs		West		1,452				1,668				1,661				3,120				3,335
Third Party Sales		South		4,089				4,154				4,341				8,243				8,727
Volumes (tons, thousands)		North		175				118				98				293				302
Fee Harvest Volumes		West		2,214				2,355				2,292				4,569				4,537
(tons, thousands)		South		5,990				6,293				6,430				12,283				12,862
		North		239				190				175				429				460

 

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

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Weyerhaeuser Company	Real Estate, Energy & Natural Resources Segment

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

 

Segment Statement of Operations

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Net sales		$	107			$	109			$	80			$	216			$	181
Costs of sales			41				46				21				87				62
Gross margin			66				63				59				129				119
General and administrative expenses			6				8				7				14				14
Other operating income, net			—				(4	)			—				(4	)			—
Operating income and Net contribution to earnings		$	60			$	59			$	52			$	119			$	105

 

 

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

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Operating income		$	60			$	59			$	52			$	119			$	105
Depreciation, depletion and amortization			3				4				5				7				8
Basis of real estate sold			31				39				13				70				46
Adjusted EBITDA(1)		$	94			$	102			$	70			$	196			$	159

 

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

 

 

Segment Statistics

 

			Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Net Sales	Real Estate		$	83			$	78			$	47			$	161			$	119
(millions)	Energy and Natural Resources			24				31				33				55				62
	Total		$	107			$	109			$	80			$	216			$	181
Acres Sold	Real Estate			19,774				37,665				9,281				57,439				30,034
Price per Acre	Real Estate		$	3,629			$	2,062			$	4,790			$	2,601			$	3,720
Basis as a Percent of Real Estate Net Sales	Real Estate			37	%			50	%			28	%			43	%			39	%

 

 

 

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Weyerhaeuser Company	Wood Products Segment

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

 

Segment Statement of Operations

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Net sales		$	1,302			$	1,421			$	1,500			$	2,723			$	2,818
Costs of sales			1,107				1,185				1,218				2,292				2,377
Gross margin			195				236				282				431				441
Selling expenses			21				22				21				43				43
General and administrative expenses			40				37				37				77				73
Other operating costs (income), net			6				(19	)			6				(13	)			12
Operating income and Net contribution to earnings		$	128			$	196			$	218			$	324			$	313

 

 

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

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Operating income		$	128			$	196			$	218			$	324			$	313
Depreciation, depletion and amortization			56				54				52				110				105
Special items			—				(25	)			—				(25	)			—
Adjusted EBITDA(1)		$	184			$	225			$	270			$	409			$	418

 

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

 

 

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

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Product remediation recovery		$	—			$	(25	)		$	—			$	(25	)		$	—

 

 

Selected Segment Items

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Total (increase) decrease in working capital(2)		$	(174	)		$	34			$	40			$	(140	)		$	(87	)
Cash spent for capital expenditures		$	(42	)		$	(63	)		$	(56	)		$	(105	)		$	(99	)

 

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

 

 

Segment Statistics

 

in millions, except for third party sales realizations			Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Structural Lumber	Third party net sales		$	464			$	499			$	573			$	963			$	1,088
(volumes presented	Third party sales realizations		$	429			$	419			$	479			$	424			$	465
in board feet)	Third party sales volumes(3)			1,080				1,190				1,196				2,270				2,340
	Production volumes			1,085				1,163				1,164				2,248				2,307
Oriented Strand	Third party net sales		$	255			$	288			$	215			$	543			$	423
Board	Third party sales realizations		$	359			$	407			$	299			$	383			$	283
(volumes presented	Third party sales volumes(3)			710				708				720				1,418				1,493
in square feet 3/8")	Production volumes			735				744				727				1,479				1,488
Engineered Solid	Third party net sales		$	177			$	191			$	215			$	368			$	384
Section	Third party sales realizations		$	3,212			$	3,239			$	3,571			$	3,226			$	3,602
(volumes presented	Third party sales volumes(3)			5.4				6.0				6.0				11.4				10.7
in cubic feet)	Production volumes			5.7				6.1				5.9				11.8				10.5
Engineered	Third party net sales		$	99			$	107			$	126			$	206			$	213
I-joists	Third party sales realizations		$	2,648			$	2,645			$	2,901			$	2,647			$	3,006
(volumes presented	Third party sales volumes(3)			37				41				44				78				71
in lineal feet)	Production volumes			43				41				38				84				63
Softwood Plywood	Third party net sales		$	41			$	42			$	44			$	83			$	85
(volumes presented	Third party sales realizations		$	508			$	464			$	474			$	485			$	481
in square feet 3/8")	Third party sales volumes(3)			81				90				94				171				177
	Production volumes			72				82				84				154				158
Medium Density	Third party net sales		$	39			$	42			$	42			$	81			$	80
Fiberboard	Third party sales realizations		$	1,183			$	1,186			$	1,342			$	1,184			$	1,329
(volumes presented	Third party sales volumes(3)			33				36				31				69				60
in square feet 3/4")	Production volumes			34				34				33				68				67

 

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

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Weyerhaeuser Company	Unallocated Items

Q2.2024 Analyst Package

Preliminary results (unaudited)

 

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

 

 

Net Charge to Earnings

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Unallocated corporate function and variable compensation expense		$	(38	)		$	(37	)		$	(32	)		$	(75	)		$	(59	)
Liability classified share-based compensation			(1	)			3				(2	)			2				(2	)
Foreign exchange (loss) gain			(1	)			—				2				(1	)			1
Elimination of intersegment profit in inventory and LIFO			(6	)			6				3				—				12
Other, net			(26	)			(37	)			(26	)			(63	)			(39	)
Operating loss			(72	)			(65	)			(55	)			(137	)			(87	)
Non-operating pension and other post-employment benefit costs			(11	)			(10	)			(12	)			(21	)			(21	)
Interest income and other			16				12				18				28				30
Net charge to earnings		$	(67	)		$	(63	)		$	(49	)		$	(130	)		$	(78	)

 

 

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

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Operating loss		$	(72	)		$	(65	)		$	(55	)		$	(137	)		$	(87	)
Depreciation, depletion and amortization			2				1				1				3				3
Special items			—				—				11				—				11
Adjusted EBITDA(1)		$	(70	)		$	(64	)		$	(43	)		$	(134	)		$	(73	)

 

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

 

 

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

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Environmental remediation charge		$	—			$	—			$	11			$	—			$	11
Special items included in operating loss and net charge to earnings		$	—			$	—			$	11			$	—			$	11

 

 

Unallocated Selected Items

 

in millions		Q1.2024				Q2.2024				Q2.2023				YTD.2024				YTD.2023
Cash spent for capital expenditures		$	(6	)		$	(7	)		$	(3	)		$	(13	)		$	(5	)

 

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v3.24.2

Document and Entity Information	Jul. 25, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 25, 2024
Entity Registrant Name	WEYERHAEUSER CO
Entity Central Index Key	0000106535
Entity Emerging Growth Company	false
Entity File Number	1-4825
Entity Incorporation State Country Code	WA
Entity Tax Identification Number	91-0470860
Entity Address, Address Line One	220 Occidental Avenue South
Entity Address, City Or Town	Seattle
Entity Address, State Or Province	WA
Entity Address, Postal Zip Code	98104-7800
City Area Code	206
Local Phone Number	539-3000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $1.25 per share
Trading Symbol	WY
Security Exchange Name	NYSE

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