Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - WEYERHAEUSER CO | d8k.htm |
| EX-99.1 - PRESS RELEASE ISSUED DECEMBER 13, 2010 - WEYERHAEUSER CO | dex991.htm |
 WEYERHAEUSER COMPANY
Dividend Guidance
December 13, 2010
Exhibit 99.2 |
 2
Forward-looking Statement
This presentation 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
presentation. 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 or negative or other
variations of those terms.
This presentation contains forward-looking statements regarding the
company’s expectations during the during the fourth quarter of 2010 and in 2011,
including continuing difficult economic conditions; a challenging homebuilding
market in 2011, performance of the Company’s Real Estate segment,
housing starts and impairments in the Real Estate segment; impairments
resulting from management’s review of the company’s capacity plan in the Wood
Products segment and
performance
of
the
segment;
performance
of
the
Company’
Cellulose
Fibers
segment
and
pulp
prices;
harvest
levels
in
Timberlands;
liquidity and funds available for distribution; debt and interest expense
levels; and earnings and cash flows. 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 employment rates, housing
starts, interest rate levels, availability of financing for home mortgages,
and strength of the U.S. dollar;
market demand
for
the
company’s
products,
which
is
related
to
the
strength
of
the
various
U.S.
business
segments
and
economic
conditions;
performance of the company’s manufacturing operations;
the level of competition from domestic and foreign producers;
raw material and energy prices and transportation costs;
the effect of weather;
the risk of loss from fires, floods, windstorms, hurricanes, pest infestation
and other natural disasters; the successful execution of internal
performance plans, including restructurings and cost reduction initiatives;
federal tax policies;
the effect of forestry, land use, environmental and other governmental
regulations; legal proceedings;
the effect of timing of retirements and changes in the market price of company
stock on charges for stock-based compensation; changes in accounting
principles; performance of
pension
fund
investments
and
related
derivatives;
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 and China. 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. |
 3
2011 Dividend Guidance
Expect to pay quarterly dividend of 15 cents per share,
or 60 cents per share on annualized basis
First dividend payment expected to occur in March 2011
Board to declare actual dividend on quarterly basis
Targeting dividend payout ratio of 75% of
Funds Available for Distribution (FAD) over cycle
FAD defined as cash flow before debt repayment and dividends
2011 dividend payout may be significantly all of FAD
for the year, given near-term outlook |
 4
Dividend Considerations
Macroeconomic climate
Earning potential of the company
Target capital structure
Appropriate debt levels
Long term liquidity
Maintaining access to capital
Affordability
Future growth opportunities |
 5
2011 Dividend Schedule
Declaration
Date
Record
Date
Payment
Date
February 10
March 1
March 15
April 14
May 13
June 1
August 11
September 1
September 15
October 13
November 11
December 1 |
 6
Expectations for 2011
Longer-term outlook remains positive, but expect housing market
in 2011 will not significantly improve as compared to 2010
Anticipate single-family housing starts of 525,000 in 2011
Expectations for business segments:
Timberlands: Continuing to defer harvest, but expect harvest
to increase slightly over 2010 levels
Wood Products: Despite near-term uncertainty, expect positive
cash flow in 2011
WRECO: Continuing to deliver strong performance relative to its peers,
but backlog at start of 2011 will likely be lower than at start of 2010
Cellulose Fibers: Continuing strong operating performance,
but expect softening in pulp prices to result in lower earnings
|
 7
Conclusion
This action establishes a
dividend that is attractive to
shareholders –
one that is
sustainable and that we expect
to grow over time |