{"id":520559,"date":"2021-07-30T03:08:15","date_gmt":"2021-07-30T07:08:15","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/weyerhaeuser-reports-record-second-quarter-results\/"},"modified":"2021-07-30T03:08:15","modified_gmt":"2021-07-30T07:08:15","slug":"weyerhaeuser-reports-record-second-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/weyerhaeuser-reports-record-second-quarter-results\/","title":{"rendered":"Weyerhaeuser reports record second quarter results"},"content":{"rendered":"
\n

– Achieved net earnings of $1.0 billion, or $1.37 per diluted share<\/h2>\n

– Highest quarterly Adjusted EBITDA on record at $1.6 billion<\/h2>\n

– Generated record cash flow from operations of over $1.3 billion<\/h2>\n

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

\n

\n SEATTLE<\/span>, July 30, 2021<\/span> \/PRNewswire\/ —\u00a0Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of\u00a0$1.0 billion, or $1<\/span>.37\u00a0per diluted share, on net sales of $3.1 billion<\/span>. This compares with net earnings of $72 million<\/span>, or 10 cents\u00a0per diluted share, on net sales of $1.6<\/span> billion\u00a0for the same period last year and net earnings of $681 million<\/span> for the first quarter of 2021. There were no special items in second quarter or first quarter 2021.\u00a0Net earnings before special items was $77 million<\/span> for the same period last year, or 11 cents<\/span> per diluted share.<\/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

Adjusted EBITDA for the second quarter of 2021 was $1.6<\/span> billion\u00a0compared with $386<\/span> million\u00a0for the same period last year and $1.1 billion<\/span> for the first quarter of 2021.<\/p>\n

“In the second quarter, our teams again delivered the company’s strongest quarterly results on record, surpassing last quarter’s Adjusted EBITDA record by over 40 percent,” said Devin W. Stockfish, president and chief executive officer. “Year-to-date, our Adjusted EBITDA is almost $2 billion<\/span> higher than this time last year and exceeds our full year results for each of the last 14 years. We also generated record operating cash flow in the quarter and reduced long-term debt by another $225 million<\/span>. Looking forward, our outlook remains favorable for continued strength in residential construction, our financial position is exceptionally strong, and with year-to-date Adjusted Funds Available for Distribution of almost $1.9 billion<\/span>, we are excited for the opportunity to return significant cash to shareholders through the variable supplemental component of our new dividend framework.”<\/p>\n

\n\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 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2020<\/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 Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n Q2<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n Q2<\/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 $2,506<\/span>\n <\/p>\n<\/td>\n

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

\n $3,144<\/span>\n <\/p>\n<\/td>\n

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

\n $1,631<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n $681<\/span>\n <\/p>\n<\/td>\n

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

\n $1,028<\/span>\n <\/p>\n<\/td>\n

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

\n $72<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n $0.91<\/span>\n <\/p>\n<\/td>\n

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

\n $1.37<\/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 750<\/span>\n <\/p>\n<\/td>\n

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

\n 752<\/span>\n <\/p>\n<\/td>\n

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

\n 747<\/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 $681<\/span>\n <\/p>\n<\/td>\n

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

\n $1,028<\/span>\n <\/p>\n<\/td>\n

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

\n $77<\/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 $0.91<\/span>\n <\/p>\n<\/td>\n

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

\n $1.37<\/span>\n <\/p>\n<\/td>\n

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

\n $0.11<\/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 $1,101<\/span>\n <\/p>\n<\/td>\n

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

\n $1,573<\/span>\n <\/p>\n<\/td>\n

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

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

\n

\n Net cash from operations<\/span>\n <\/p>\n<\/td>\n

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

\n $698<\/span>\n <\/p>\n<\/td>\n

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

\n $1,308<\/span>\n <\/p>\n<\/td>\n

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

\n $391<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Adjusted FAD(3)<\/sup><\/span>\n <\/p>\n<\/td>\n

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

\n $645<\/span>\n <\/p>\n<\/td>\n

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

\n $1,236<\/span>\n <\/p>\n<\/td>\n

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

\n $317<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

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

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

\n

\n Special items for prior periods presented are included in the reconciliation tables following this release.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

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

\n

\n Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company’s liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within 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 FINANCIAL HIGHLIGHTS<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/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 Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n Q2<\/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 $513<\/span>\n <\/p>\n<\/td>\n

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

\n $541<\/span>\n <\/p>\n<\/td>\n

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

\n $28<\/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 $108<\/span>\n <\/p>\n<\/td>\n

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

\n $113<\/span>\n <\/p>\n<\/td>\n

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

\n $5<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n $172<\/span>\n <\/p>\n<\/td>\n

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

\n $180<\/span>\n <\/p>\n<\/td>\n

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

\n $8<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q2 2021 Performance \u2013 <\/b>In the West, export sales realizations increased significantly from the first quarter and export sales volumes were modestly higher as the company shifted additional volume to the export market to serve higher demand, particularly from China<\/span>. Fee harvest volumes were comparable as the company continued salvage operations. Domestic sales realizations were slightly lower as salvage activity continued to yield a greater mix of smaller diameter logs. In the South, fee harvest volumes increased significantly and sales realizations for sawlogs and fiber logs were slightly higher. In both regions, forestry and road expenses increased seasonally.<\/p>\n

\n Q3 2021 Outlook \u2013<\/b>\u00a0Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly lower than the second quarter. In the West, the company anticipates slightly lower fee harvest volumes, seasonally higher forestry and road expenses, and higher per unit log and haul costs. The company expects moderately higher export sales realizations and slightly lower domestic sales realizations. In the South, the company expects significantly higher fee harvest volumes, slightly higher per unit log and haul costs, and seasonally higher forestry and road expenses. Sales realizations are expected to be slightly lower due to mix.<\/p>\n

In July 2021<\/span>, the company completed the previously announced sale of 145,000 acres of timberlands in the North Cascades region of Washington<\/span>. Third quarter will include a gain of approximately $30 million<\/span> on this transaction, which will be reported as a special item.<\/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 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/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 Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n Q2<\/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 $106<\/span>\n <\/p>\n<\/td>\n

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

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

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

\n $4<\/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 $66<\/span>\n <\/p>\n<\/td>\n

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

\n $63<\/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 $96<\/span>\n <\/p>\n<\/td>\n

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

\n $91<\/span>\n <\/p>\n<\/td>\n

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

\n ($5)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q2 2021 Performance \u2013 <\/b>The number of real estate acres sold and the average price per acre decreased compared with the first quarter due to the timing of real estate sales and mix of properties sold. Energy & Natural Resources earnings and Adjusted EBITDA increased, primarily due to higher production of construction materials.<\/p>\n

\n Q3 2021 Outlook \u2013 <\/b>Weyerhaeuser anticipates third quarter earnings will be significantly higher than third quarter 2020 due to a lower average basis resulting from the mix of properties sold. The company expects Adjusted EBITDA will be comparable to third quarter 2020. The company now expects full year 2021 Adjusted EBITDA for the segment will be approximately $290 million<\/span>, an increase from the $255 million<\/span> previously expected.<\/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 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/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 Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n Q2<\/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 $2,021<\/span>\n <\/p>\n<\/td>\n

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

\n $2,629<\/span>\n <\/p>\n<\/td>\n

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

\n $608<\/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 $840<\/span>\n <\/p>\n<\/td>\n

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

\n $1,338<\/span>\n <\/p>\n<\/td>\n

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

\n $498<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n $889<\/span>\n <\/p>\n<\/td>\n

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

\n $1,386<\/span>\n <\/p>\n<\/td>\n

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

\n $497<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q2 2021 Performance \u2013 <\/b>Sales realizations for lumber and oriented strand board increased 25 percent and 48 percent, respectively, compared with first quarter averages. Sales volumes for lumber increased moderately. Oriented strand board production and sales volumes were modestly lower, and unit manufacturing costs increased, due to planned maintenance outages. Production and sales volumes for solid section and I-joist products increased and sales realizations improved as the company continued to benefit from previously announced price increases. Raw material costs for Wood Products increased, primarily for Canadian logs, oriented strand board webstock, resin and veneer.<\/p>\n

\n Q3 2021 Outlook \u2013<\/b>\u00a0Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be significantly lower than the second quarter. To date, third quarter benchmark pricing for lumber and oriented strand board is significantly lower than the second quarter average. The company expects higher sales volumes and improved unit manufacturing costs for lumber and oriented strand board, as well as higher raw material costs.<\/p>\n

\n UNALLOCATED<\/b>\n <\/p>\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 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2021<\/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 Q1<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n
\n Q2<\/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 charge to pretax earnings<\/span>\n <\/p>\n<\/td>\n

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

\n ($65)<\/span>\n <\/p>\n<\/td>\n

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

\n ($84)<\/span>\n <\/p>\n<\/td>\n

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

\n ($19)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n ($56)<\/span>\n <\/p>\n<\/td>\n

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

\n ($84)<\/span>\n <\/p>\n<\/td>\n

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

\n ($28)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Q2 2021 Performance \u2013 <\/b>Second quarter results include an increase in variable compensation expense due to a year-to-date adjustment for performance-based incentive compensation, as well as an increase in the noncash charge from elimination of intersegment profit in inventory and LIFO, primarily due to higher costing within our lumber and log inventories.<\/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>\u00a0basis 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 July 30, 2021<\/span> to discuss second 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 July 30, 2021<\/span>.<\/p>\n

To join the conference call from within North America<\/span>, dial 877-407-0792 (access code: 13714048) at least 15 minutes prior to the call. Those calling from outside North America<\/span> should dial 201-689-8263 (access code: 13714048). Replays will be available for two weeks at 844-512-2921 (access code: 13714048) from within North America<\/span>, and at 412-317-6671 (access code: 13714048) 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, 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 sales realizations; forestry and road expenses; log and haul costs; fee harvest volumes; expected gain on the sale of timberlands; raw materials costs for our wood products business; operating rates for the manufacture of our oriented strand board products; and sales volumes for our lumber and oriented strand board products and sales realizations for our engineered wood products lines. 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 such as “anticipate,” “expect,” “planned,” “will,” and similar words and expressions. They may use the positive, negative or another variation of those and similar words. 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: <\/p>\n