{"id":424393,"date":"2021-01-29T03:08:20","date_gmt":"2021-01-29T08:08:20","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=424393"},"modified":"2021-01-29T03:08:20","modified_gmt":"2021-01-29T08:08:20","slug":"weyerhaeuser-reports-fourth-quarter-full-year-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/weyerhaeuser-reports-fourth-quarter-full-year-results\/","title":{"rendered":"Weyerhaeuser Reports Fourth Quarter, Full Year Results"},"content":{"rendered":"
\n

– Generated full year net earnings of $797 million, or $1.07 per diluted share<\/h2>\n

– Increased full year Adjusted EBITDA by 72 percent to $2.2 billion<\/h2>\n

– Highest full year Wood Products Operating Income and Adjusted EBITDA on record<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n SEATTLE<\/span>, Jan. 29, 2021<\/span> \/PRNewswire\/ —\u00a0Weyerhaeuser Company<\/a> (NYSE: WY) today reported fourth quarter net earnings of\u00a0$292 million, or 39 cents\u00a0per diluted share, on net sales of $2.1 billion<\/span>. This compares with a net loss of $14 million<\/span>, or two cents\u00a0per diluted share, on net sales of $1.5<\/span> billion\u00a0for the same period last year and net earnings of $283 million<\/span> for the third quarter of 2020.<\/p>\n

\n

\n
\n \"Weyerhaeuser
\n <\/a>\n <\/p>\n<\/p><\/div>\n

\n View our earnings release and financial statements in a printer-friendly PDF<\/a>.<\/i>\n <\/p>\n

Excluding net after-tax charges of $69 million<\/span> for special items, the company reported fourth quarter net earnings of $361 million<\/span>, or 48 cents<\/span> per diluted share. This compares with net earnings before special items of $23 million<\/span> for the same period last year and $386 million<\/span> for the third quarter of 2020.<\/p>\n

Adjusted EBITDA for the fourth quarter of 2020 was $657<\/span> million\u00a0compared with $260<\/span> million\u00a0for the same period last year and $745 million<\/span> for the third quarter of 2020.<\/p>\n

For the full year 2020, Weyerhaeuser reported net earnings of $797 million<\/span>, or $1.07<\/span> per diluted share, on net sales of $7.5 billion<\/span>. This compares with a net loss of $76 million<\/span> on net sales of $6.6 billion<\/span> for the full year 2019.<\/p>\n

Full year 2020 includes net after-tax charges of $165 million<\/span> for special items. Excluding these items, the company reported net earnings of $962 million<\/span>, or $1.29<\/span> per diluted share. This compares with net earnings before special items of $285 million<\/span> for the full year 2019.<\/p>\n

Adjusted EBITDA for full year 2020 was $2.2 billion<\/span> compared with $1.3 billion<\/span> for full year 2019.<\/p>\n

“In 2020 each of our businesses delivered remarkable results in the face of unprecedented operating and market challenges,” said Devin W. Stockfish, president and chief executive officer. “Our teams delivered the highest Wood Products Adjusted EBITDA on record, achieved record low cost performance in lumber, and captured approximately $100 million<\/span> of operational excellence improvements across our businesses, all while demonstrating an unwavering commitment to safety. In addition, we reduced gross debt by more than $900 million<\/span>, implemented a new dividend framework, strategically upgraded our Oregon<\/span> timberland holdings and launched a new sustainability strategy. As we embark on 2021, we are encouraged by the macroeconomic tailwinds that continue to bolster strong U.S. housing and repair and remodel markets, and we remain focused on creating value for shareholders through our unrivaled portfolio of assets, industry-leading operating performance and disciplined capital allocation.”<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n WEYERHAEUSER FINANCIAL HIGHLIGHTS<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2019<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2019<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n (millions, except per share data)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q3<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q4<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q4<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Full Year<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Full Year<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net sales<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2,110<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2,063<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1,548<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $7,532<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $6,554<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings (loss)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $283<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $292<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($14)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $797<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($76)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings (loss) per diluted share<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.38<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.39<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($0.02)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.07<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($0.10)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Weighted average shares outstanding, diluted<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 748<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 749<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 746<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 748<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 746<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings before special items(1)(2)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $386<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $361<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $23<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $962<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $285<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings per diluted share before special items(1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.52<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.48<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.03<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1.29<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $0.39<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA(1)<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $745<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $657<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $260<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $2,201<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1,276<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n (2)<\/span>\n <\/p>\n<\/td>\n

\n

\n Fourth quarter 2020 after-tax special items include a $193 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract, a $182 million gain related to the previously announced sale of certain southern Oregon timberlands and a $58 million charge related to the early extinguishment of debt. Special items for other periods presented are included in the reconciliation tables following this release.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n TIMBERLANDS<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n
\n

\n
\n FINANCIAL HIGHLIGHTS<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n (millions)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q3<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q4<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net sales<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $452<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $502<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $50<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net contribution (charge) to pretax earnings<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($11)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $286<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $297<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Pretax charge (benefit) for special items<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $80<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($182)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($262)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net contribution to pretax earnings before special items<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $69<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $104<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $35<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $130<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $167<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $37<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q4 2020 Performance \u2013 <\/b>In the West, average sales realizations for domestic and Japan<\/span> export logs increased from the third quarter, and export log sales volumes were significantly higher. Fee harvest volumes increased 9 percent as harvest operations fully resumed following third quarter wildfire activity. In the South, average log sales realizations were comparable to the third quarter, as higher average sawlog realizations were largely offset by lower realizations for fiber logs. Unit logging and hauling costs decreased, and log sales volumes were slightly lower.<\/p>\n

Fourth quarter special items include a $182 million<\/span> gain on the previously announced sale of certain southern Oregon<\/span> timberlands, which was completed in November.<\/p>\n

\n Q1 2021 Outlook \u2013<\/b>\u00a0Weyerhaeuser expects first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter. In the West, the company anticipates higher export log sales volumes, slightly lower average domestic log sales realizations, slightly higher unit logging and hauling costs, and seasonally lower road spending. In the South, the company expects higher fee harvest volumes and comparable average log sales realizations.\u00a0\u00a0 <\/p>\n

\n REAL ESTATE, ENERGY & NATURAL RESOURCES<\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n

\n
\n FINANCIAL HIGHLIGHTS<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n (millions)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q3<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q4<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net sales<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $69<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $30<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($39)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net contribution to pretax earnings<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $17<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $14<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($3)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $60<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $23<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($37)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q4 2020 Performance \u2013 <\/b>Earnings and Adjusted EBITDA decreased due to fewer real estate sales. Average land basis was significantly lower due to the mix of properties sold. The segment reported full year Adjusted EBITDA of $241 million<\/span>.<\/p>\n

\n Q1 2021 Outlook \u2013 <\/b>Weyerhaeuser anticipates first quarter earnings will be slightly higher than first quarter 2020, and Adjusted EBITDA will be modestly lower than first quarter 2020 due to the timing and mix of real estate transactions. The company expects full year 2021 Adjusted EBITDA for the segment will be approximately $255 million<\/span>.<\/p>\n

\n WOOD PRODUCTS<\/b>\n <\/p>\n

\n\n\n\n\n\n\n
\n

\n
\n FINANCIAL HIGHLIGHTS<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n (millions)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q3<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Q4<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net sales<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1,696<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $1,652<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($44)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net contribution to pretax earnings<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $566<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $481<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($85)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $615<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $530<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n ($85)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q4 2020 Performance \u2013 <\/b>Sales volumes declined slightly across most product lines from the third quarter. Raw material costs increased significantly, primarily for Western and Canadian logs and oriented strand board webstock. Per unit manufacturing costs increased for oriented strand board due to planned maintenance outages. <\/p>\n

Average sales realizations for oriented strand board improved 27 percent compared with the third quarter, as benchmark pricing remained near record levels. This was largely offset by a 10 percent decrease in average lumber sales realizations. <\/p>\n

\n Q1 2021 Outlook \u2013<\/b>\u00a0Excluding the effect of changes in average sales realizations for lumber and oriented strand board, the company expects first quarter earnings and Adjusted EBITDA will be significantly higher than the fourth quarter. The company expects improved manufacturing costs across product lines and slightly higher sales volumes, primarily for lumber and engineered wood products. To date, first quarter benchmark pricing for lumber and oriented strand board is significantly higher than the fourth quarter average.<\/p>\n

\n ABOUT WEYERHAEUSER<\/b>\n <\/p>\n

\n Weyerhaeuser Company<\/a>, one of the world’s largest private owners of timberlands<\/a>, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada<\/span>. We manage these timberlands on a sustainable<\/a> basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products<\/a> in North America<\/span>. Our company is a real estate investment trust. In 2020, we generated $7.5 billion<\/span> in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com<\/a>.<\/p>\n

\n EARNINGS CALL INFORMATION<\/b>\n <\/p>\n

Weyerhaeuser will hold a live conference call at 7 a.m.<\/span> Pacific (10 a.m.<\/span> Eastern) on January 29, 2021<\/span> to discuss fourth quarter results.<\/p>\n

To access the live webcast and presentation online, go to the Investor Relations<\/a> section on www.weyerhaeuser.com<\/a> on January 29, 2021<\/span>.<\/p>\n

To join the conference call from within North America<\/span>, dial 877-407-0792 (access code: 13714046) at least 15 minutes prior to the call. Those calling from outside North America<\/span> should dial 201-689-8263 (access code: 13714046). Replays will be available for two weeks at 844-512-2921 (access code: 13714046) from within North America<\/span>, and at 412-317-6671 (access code: 13714046) from outside North America<\/span>.<\/p>\n

\n FORWARD-LOOKING STATEMENTS<\/b>\n <\/p>\n

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, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log export sales volumes and domestic log sales realizations; forestry road expense and logging costs; fee harvest volumes; manufacturing costs for our wood products business and sales volumes for our lumber and engineered wood products lines. Forward-looking statements are generally identified by words such as “believe,” “expect,” “anticipate,” “estimate,” “future,” “planned,” “may,” “will,” “maintain,” and similar words and expressions. Forward-looking statements are based on our current expectations and assumptions. 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:<\/p>\n