Attached files
file | filename |
---|---|
EX-99.2 - WEYERHAEUSER CO | v173013_ex99-2.htm |
8-K - WEYERHAEUSER CO | v173013_8k.htm |
For more
information contact:
Media – Bruce Amundson (253)
924-3047
Analysts – Kathryn McAuley
(253) 924-2058
Weyerhaeuser
Reports Fourth Quarter Results
FEDERAL WAY, Wash. (Feb. 5, 2010)
– Weyerhaeuser Company (NYSE: WY) today reported a net loss of $175 million
for the fourth quarter, or 83 cents per share, on net sales from continuing
operations of $1.5 billion. Last year, Weyerhaeuser reported a fourth quarter
net loss of $1.2 billion, or $5.73 per share, on net sales from continuing
operations of $1.8 billion.
For the
full year 2009, Weyerhaeuser reported a net loss of $545 million, or $2.58 per
share, on net sales from continuing operations of $5.5 billion. This compares
with a net loss of $1.2 billion, or $5.57 per share, on net sales from
continuing operations of $8.1 billion for 2008.
SIGNIFICANT
FOURTH QUARTER 2009 AFTER-TAX ITEMS
After-Tax
Gain
(Charge)
($
millions)
|
Gain
(Charge)
per
share
(dollars)
|
|
Alternative
fuel mixture credits
|
$77
|
$0.36
|
Real
Estate asset impairments, restructuring and related
charges
|
($67)
|
($0.31)
|
Forest
Products asset impairments, closures, restructuring and other
charges
|
($57)
|
($0.27)
|
Loss
on early extinguishment of debt
|
($19)
|
($0.09)
|
Excluding
these items, the company reported a net loss of $109 million, or 52 cents per
share, in the fourth quarter of 2009.
SIGNIFICANT
FOURTH QUARTER 2008 AFTER-TAX ITEMS
After-Tax
Gain
(Charge)
($
millions)
|
Gain
(Charge)
per
share
(dollars)
|
|
Impairment
of goodwill
|
($827)
|
($3.91)
|
Real
estate-related charges
|
($313)
|
($1.48)
|
Ownership
restructuring of Uruguay assets
|
$149
|
$0.70
|
Closure
and restructuring activities
|
($33)
|
($0.15)
|
Gain
on early extinguishment of debt
|
$21
|
$0.10
|
Excluding
these items, the company reported a net loss of $209 million, or 99 cents
per share, in the fourth quarter of 2008.
“The weak
housing market continues to present challenges and affect our financial
performance,” said Dan Fulton, president and chief executive officer. “2009 has
been another tough year and our financial results are disappointing. Despite
difficult market conditions, we made significant progress this past year to
position ourselves to rebuild revenues and earnings. We cut costs, reduced
production to meet demand, focused on cash generation, and deferred harvest to
preserve the long-term values of our timberlands. With an eye to the future, we
made changes across all business lines to improve long-term competitiveness,
implemented plans to grow with strategic customers and announced our decision to
convert to a REIT. As we enter 2010, markets continue to be challenging, but I’m
confident we’re positioned to deliver significantly improved operating
performance.”
SUMMARY
OF FOURTH QUARTER FINANCIAL HIGHLIGHTS
Millions
(except per share data)
|
4Q
2009
|
4Q
2008
|
Change
|
Net
earnings (loss)
|
($175)
|
($1,212)
|
$1,037
|
Earnings
(loss) per share
|
($0.83)
|
($5.73)
|
$4.90
|
Net
sales from continuing operations
|
$1,455
|
$1,777
|
($322)
|
SUMMARY
OF ANNUAL FINANCIAL HIGHLIGHTS
Millions
(except per share data)
|
2009
|
2008
|
Change
|
Net
earnings (loss)
|
($545)
|
($1,176)
|
$631
|
Earnings
(loss) per share
|
($2.58)
|
($5.57)
|
$2.99
|
Net
sales from continuing operations
|
$5,528
|
$8,100
|
($2,572)
|
SEGMENT
RESULTS FOR FOURTH QUARTER
Contributions
(Charges) to Pre-Tax Earnings
Millions
|
4Q
2009
|
4Q
2008
|
Change
|
Timberlands
|
$13
|
$62
|
($49)
|
Wood
Products
|
($208)
|
($960)
|
$752
|
Cellulose
Fibers
|
$147
|
($29)
|
$176
|
Real
Estate
|
($89)
|
($630)
|
$541
|
TIMBERLANDS
4Q
2009
|
3Q
2009
|
Change
|
|
Contribution
to pre-tax earnings (millions)
|
$13
|
$219
|
($206)
|
4Q 2009 Performance –
Excluding the pre-tax items noted below, the segment’s fourth quarter results
decreased $22 million.
|
·
|
Fourth
quarter 2009 included charges of $15 million for asset impairments
primarily in the international manufacturing
operations.
|
|
·
|
Third
quarter 2009 included a pre-tax gain of $163 million from the sale of
140,000 acres of non-strategic timberlands in northwestern Oregon and $6
million for the sale of mineral
royalties.
|
Fourth
quarter earnings from operations were lower primarily due to the company’s
decision to defer additional harvest, lower sales of non-strategic timberlands
and higher logging, trucking and road costs. These reductions were partially
offset by an increase in log sales realizations. Losses related to international
operations, excluding the pre-tax items noted above, were $6 million compared to
$4 million in third quarter.
1Q 2010 Outlook – Excluding
the effect of non-strategic land sales, Weyerhaeuser expects
first quarter operating earnings from the segment to be comparable to fourth
quarter primarily due to improved log sales realizations offset by higher
costs.
WOOD
PRODUCTS
4Q
2009
|
3Q
2009
|
Change
|
|
Charge
to pre-tax earnings (millions)
|
($208)
|
($97)
|
($111)
|
4Q 2009 Performance –
Excluding the pre-tax items noted below, the segment’s fourth quarter results
decreased $31 million.
|
·
|
Fourth
quarter 2009 included charges of $85 million for closures, restructuring
and asset impairments.
|
|
·
|
Third
quarter 2009 included charges of $5 million for closures, restructuring
and asset impairments.
|
The
higher operating loss in the fourth quarter was due to lower volumes and lower
sales prices in nearly all product lines. The segment took more downtime to
match lower seasonal and market demand.
1Q 2010 Outlook – Weyerhaeuser
expects a lower operating loss in first quarter due to improved operating rates
and anticipated sales realization improvements for lumber and OSB.
CELLULOSE
FIBERS
4Q
2009
|
3Q
2009
|
Change
|
|
Contribution
to pre-tax earnings (millions)
|
$147
|
$166
|
($19)
|
4Q 2009 Performance –
Excluding the pre-tax items noted below, the segment’s fourth quarter results
decreased $10 million.
|
·
|
Fourth
quarter 2009 included a pre-tax gain of $115 million related to
alternative fuel mixture credits, compared to $122 million in the third
quarter.
|
|
·
|
Fourth
quarter also included charges of $2 million for asset
impairments.
|
An
extended annual outage at the New Bern, NC mill contributed to lower production
and increased maintenance costs. Fiber and energy costs also increased in the
fourth quarter. These cost increases more than offset improved sales
realizations for pulp.
1Q 2010 Outlook –Excluding the
effect of alternative fuel mixture credits, which ended in 2009, Weyerhaeuser expects
earnings from operations for first quarter to be comparable to fourth quarter.
Annual maintenance and fiber costs are expected to increase. These costs are
expected to offset improved pulp price realizations.
REAL
ESTATE
4Q
2009
|
3Q
2009
|
Change
|
|
Charge
to pre-tax earnings (millions)
|
($89)
|
($64)
|
($25)
|
4Q 2009 Performance –
Excluding the pre-tax items noted below, the segment’s fourth quarter results
improved $30 million.
|
·
|
Asset
impairments, restructuring and investment-related charges were $100
million in the fourth quarter compared to $55 million in the third
quarter.
|
|
·
|
Fourth
quarter also included losses of $10 million on land and lot
sales.
|
The
contribution from the segment's operations was $21M in the fourth quarter
excluding the losses on land and lot sales. Homebuilding operations closed
778 single-family homes, a 54 percent increase from third quarter. The
average price of homes closed increased 7 percent from the previous quarter.
Selling expenses increased primarily due to higher volumes.
1Q 2010 Outlook
– Excluding asset impairments,
restructuring and related charges, Weyerhaeuser expects the segment to be
profitable in the first quarter. A loss is expected from single-family
homebuilding operations due to seasonally lower closings; however, two
commercial partnership interests were sold in January 2010 and will contribute
$33 million in earnings.
ABOUT
WEYERHAEUSER
Weyerhaeuser
Company, one of the world’s largest forest products companies, was incorporated
in 1900. In 2009, sales were $5.5 billion. It has offices or operations in 10
countries, with customers worldwide. Weyerhaeuser is principally engaged in the
growing and harvesting of timber; the manufacture, distribution and sale of
forest products; and real estate construction and development. Additional
information about Weyerhaeuser’s businesses, products and practices is available
at http://www.weyerhaeuser.com.
EARNINGS
CALL INFORMATION
Weyerhaeuser
will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on Feb. 5
to discuss fourth quarter results.
To access
the conference call from within North America, dial 1-877-296-9413 (access code
– 49651013) at least 15 minutes prior to the call. Those calling from
outside North America should dial 1-706-679-2458 (access code – 49651013).
Replays will be available for one week at 1-800-642-1687 (access code –
49651013) from within North America and at 1-706-645-9291 (access code –
49651013) from outside North America.
The call
is being webcast through Weyerhaeuser’s Internet site at
http://investor.weyerhaeuser.com by clicking on the “Q4 2009 Earnings Conference
Call” link.
The
webcast is available through the Thomson StreetEvents Network to both
institutional and individual investors. Individual investors can listen to the
call at http://www.fulldisclosure.com, Thomson’s individual investor portal,
powered by StreetEvents. Institutional investors can access the call via
Thomson’s password-protected site, StreetEvents ( http://www.streetevents.com
).
FORWARD LOOKING
STATEMENTS
This news
release contains statements concerning the company’s future results and
performance that are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based on
various assumptions and may not be accurate because of risks and uncertainties
surrounding these assumptions. Factors listed below, as well as other factors,
may cause actual results to differ significantly from these forward-looking
statements. There is no guarantee that any of the events anticipated by
these forward-looking statements will occur. If any of the events occur,
there is no guarantee what effect they will have on company operations or
financial condition. The company will not update these forward-looking
statements after the date of this news release.
Some
forward-looking statements discuss the company’s plans, strategies and
intentions. They use words such as “expects,” “may,” “will,” “believes,”
“should,” “approximately,” “anticipates,” “estimates,” and “plans.” In addition,
these words may use the positive, negative, or other variations of those
terms.
This
release contains forward-looking statements regarding the company’s expectations
during the first quarter of 2010, including log sales realizations and
operating costs in the Timberlands segment, operating rates and sales
realization improvements for most of our products in the Wood Products segment,
increased expenses for annual planned maintenance, fiber costs and pulp price
realizations in the Cellulose Fiber segment, sales of partnership interests and
home sale closings in the Real Estate segment, cost control measures, and
performance of our business segments.
Major
risks, uncertainties and assumptions that affect the company’s businesses and
may cause actual results to differ from these forward-looking statements,
include, but are not limited to:
|
·
|
the
effect of general economic conditions, including the level of interest
rates, availability of financing for home mortgages, strength of the U.S.
dollar, employment rates and housing
starts;
|
|
·
|
market
demand for the company’s products, which is related to the strength of the
various U.S. business segments and economic
conditions;
|
|
·
|
the
successful execution of internal performance plans, including
restructurings and cost reduction
initiatives;
|
|
·
|
performance
of the company’s manufacturing operations, including maintenance
requirements and operating
efficiencies;
|
|
·
|
raw
material prices;
|
|
·
|
energy
prices;
|
|
·
|
transportation
costs;
|
|
·
|
changes
in the Company’s business support functions and support
costs;
|
|
·
|
changes
in legislation or tax rules;
|
|
·
|
the
level of competition from domestic and foreign
producers;
|
|
·
|
the
effect of forestry, land use, environmental and other governmental
regulations;
|
|
·
|
legal
proceedings;
|
|
·
|
the
effect of weather;
|
|
·
|
the
risk of loss from fires, floods, windstorms, hurricanes, pest infestation
and other natural disasters;
|
|
·
|
changes
in accounting principles;
|
|
·
|
performance
of pension fund investments and related
derivatives;
|
|
·
|
the
effect of timing of retirements and changes in the market price of company
stock on charges for stock-based compensation;
and
|
|
·
|
other
factors described under “Risk Factors” in the Company’s annual report on
Form 10-K.
|
The
company also is a large exporter and is affected by changes in economic activity
in Europe and Asia, particularly Japan, China and Korea. It also is affected by
changes in currency exchange rates, particularly the relative value of the U.S.
dollar to the euro and the Canadian dollar. Restrictions on international trade
or tariffs imposed on imports also may affect the company.