Weyerhaeuser Reports Fourth Quarter, Full Year Results

Rhea-AI Summary

Weyerhaeuser Company (NYSE: WY) reported a fourth quarter net earnings of $11 million, or 2 cents per diluted share, significantly down from $416 million last year, driven by a net sales decline to $1.8 billion from $2.2 billion. Despite a full year net earnings of $1.9 billion, results reflect a decrease from $2.6 billion in 2021, with Adjusted EBITDA dropping to $3.7 billion from $4.1 billion. The company announced a $0.90 per share supplemental dividend and plans to return $1.75 billion in cash to shareholders. The purchase of a $420 million group annuity contract reduced pension liabilities, a strategic move to strengthen the balance sheet.

Positive

• Full year net earnings of $1.9 billion, or $2.53 per diluted share.
• $1.75 billion cash returned to shareholders, 75% of 2022 Adjusted FAD.
• Completion of $550 million share repurchase in 2022.
• Significant reduction in pension obligations from $6.8 billion to $2.3 billion since 2018.
• Increased base dividend by 5.9%.

Negative

• Fourth quarter net earnings dropped to $11 million from $416 million year-over-year.
• Fourth quarter Adjusted EBITDA fell to $369 million from $674 million year-over-year.
• Special items led to after-tax charges of $367 million for the year, impacting net earnings.

• Generated full year net earnings of $1.9 billion, or $2.53 per diluted share
• Achieved full year Adjusted EBITDA of $3.7 billion
• Returning $1.75 billion in total cash back to shareholders based on 2022 results, including $550 million of share repurchase completed in 2022

SEATTLE, Jan. 26, 2023 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings of $11 million, or 2 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $416 million, or 55 cents per diluted share, on net sales of $2.2 billion for the same period last year and net earnings of $310 million for the third quarter of 2022. Excluding a total after-tax charge of $160 million for special items, the company reported fourth quarter net earnings of $171 million, or 24 cents per diluted share. This compares with net earnings before special items of $367 million for the same period last year. Adjusted EBITDA for the fourth quarter of 2022 was $369 million compared with $674 million for the same period last year and $583 million for the third quarter of 2022.

In the fourth quarter, Weyerhaeuser completed the purchase of a group annuity contract that transfers approximately $420 million of the company's Canadian pension liabilities to an insurance carrier. The contract purchase was funded from Canadian pension plan assets, with no company cash contribution required. As a result of the transaction, fourth quarter special items include a noncash after-tax settlement charge of $152 million. This transaction is the latest in a series of actions taken to reduce the company's pension plan obligations. Since beginning these efforts in 2018, Weyerhaeuser's pension obligations have decreased from $6.8 billion to $2.3 billion as of December 31, 2022.

For the full year 2022, Weyerhaeuser reported net earnings of $1.9 billion, or $2.53 per diluted share, on net sales of $10.2 billion. This compares with net earnings of $2.6 billion on net sales of $10.2 billion for the full year 2021. Full year 2022 includes after-tax charges of $367 million for special items. Excluding these items, the company reported net earnings of $2.2 billion, or $3.02 per diluted share. This compares with net earnings before special items of $2.5 billion for the full year 2021. Adjusted EBITDA for full year 2022 was $3.7 billion compared with $4.1 billion for full year 2021.

This afternoon, the company declared a $0.90 per share supplemental dividend. On a combined basis, including dividends and share repurchase, the company is returning $1.75 billion of cash, or 75 percent of 2022 Adjusted FAD, to shareholders based on 2022 results.

"I am extremely proud of our accomplishments in 2022, and our performance reflects strong execution across all businesses despite macroeconomic headwinds, supply chain disruptions and dynamic market conditions," said Devin W. Stockfish, president and chief executive officer. "Our teams drove continued improvements across each of the value levers of our investment thesis in 2022. Notably, we grew our timberlands holdings through a strategic acquisition in the Carolinas, captured additional operational excellence improvements, announced our first two carbon capture and storage agreements and joined the Climate Pledge. We also increased our base dividend by 5.9 percent, repurchased $550 million of our shares and refinanced $900 million of debt. Entering 2023, our balance sheet is exceptionally strong, and we are well positioned to navigate through a range of market conditions. We remain focused on serving our customers and driving long-term value for shareholders through our unrivaled portfolio, industry-leading performance, strong ESG foundation and disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS		2022				2022				2021				2022				2021
(millions, except per share data)		Q3				Q4				Q4				Full Year				Full Year
Net sales		$	2,276			$	1,823			$	2,206			$	10,184			$	10,201
Net earnings		$	310			$	11			$	416			$	1,880			$	2,607
Net earnings per diluted share		$	0.42			$	0.02			$	0.55			$	2.53			$	3.47
Weighted average shares outstanding, diluted			741				737				751				743				751
Net earnings before special items(1)(2)		$	310			$	171			$	367			$	2,247			$	2,526
Net earnings per diluted share before special items(1)		$	0.42			$	0.24			$	0.49			$	3.02			$	3.37
Adjusted EBITDA(1)		$	583			$	369			$	674			$	3,654			$	4,094
Net cash from operations		$	562			$	167			$	494			$	2,832			$	3,159
Adjusted FAD(3)		$	468			$	(56)			$	181			$	2,327			$	2,623

(1)	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.
(2)	Fourth quarter 2022 after-tax special items include a $152 million noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract and a $8 million noncash impairment charge related to the planned divestiture of legacy coal assets. Special items for prior periods presented are included in the reconciliation tables within this release.
(3)	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.

 

TIMBERLANDS

FINANCIAL HIGHLIGHTS		2022				2022
(millions)		Q3				Q4				Change
Net sales		$	574			$	548			$	(26)
Net contribution to pretax earnings		$	107			$	86			$	(21)
Adjusted EBITDA		$	168			$	150			$	(18)

 

Q4 2022 Performance – In the West, fee harvest volumes were slightly higher than the third quarter, as harvest operations returned to normal levels faster than expected following the resolution of the work stoppage. Sales realizations were significantly lower, partially offset by moderately higher sales volumes. Per unit log and haul costs were comparable, and forestry and road costs were seasonally lower. In the South, fee harvest volumes were slightly higher than the third quarter, while sales realizations and per unit log and haul costs were both comparable.

Q1 2023 Outlook – Weyerhaeuser anticipates first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter. In the West, the company expects significantly higher fee harvest volumes, partially offset by significantly lower domestic sales realizations. Per unit log and haul costs are expected to be moderately lower and forestry and road costs are expected to be seasonally lower. In the South, the company expects fee harvest volumes and sales realizations to be slightly lower. Per unit log and haul costs and forestry and road costs are expected to be comparable.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS		2022				2022
(millions)		Q3				Q4				Change
Net sales		$	68			$	55			$	(13)
Net contribution to pretax earnings		$	48			$	24			$	(24)
Pretax charge for special items		$	—			$	10			$	10
Net contribution to pretax earnings before special items		$	48			$	34			$	(14)
Adjusted EBITDA		$	60			$	46			$	(14)

 

Q4 2022 Performance – Earnings and Adjusted EBITDA decreased from the third quarter due to lower real estate sales. The number of acres sold decreased due to the timing of transactions, partially offset by an increase in the average price per acre due to the mix of properties sold. The segment reported full year Adjusted EBITDA of $329 million.

Fourth quarter pretax special items include a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets.

Q1 2023 Outlook – Weyerhaeuser anticipates first quarter earnings before special items will be approximately $10 million higher than the fourth quarter and Adjusted EBITDA will be approximately $35 million higher than the fourth quarter due to the timing and mix of real estate sales. The company expects full year 2023 Adjusted EBITDA for the segment will be approximately $300 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS		2022				2022
(millions)		Q3				Q4				Change
Net sales		$	1,767			$	1,331			$	(436)
Net contribution to pretax earnings		$	344			$	147			$	(197)
Adjusted EBITDA		$	395			$	197			$	(198)

 

Q4 2022 Performance – Sales realizations for lumber and oriented strand board decreased 11 percent and 16 percent, respectively, compared with third quarter averages. Sales and production volumes for lumber were significantly lower due to the work stoppage, labor constraints and adverse weather conditions. Unit manufacturing costs were significantly higher and log costs were moderately lower, primarily for western logs. For oriented strand board, sales volumes were slightly lower and production volumes were comparable. Unit manufacturing costs were moderately lower, and fiber costs were slightly lower. Sales realizations were lower for most engineered wood products, while sales volumes were significantly lower for all products due to softening demand. Raw material costs were moderately lower, primarily for oriented strand board webstock. Distribution sales volumes were lower, primarily for engineered wood products.

Q1 2023 Outlook – Weyerhaeuser anticipates first quarter earnings and Adjusted EBITDA will be moderately higher than the fourth quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes, moderately lower log costs and significantly lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes, moderately lower fiber costs and slightly lower unit manufacturing costs. Sales realizations for engineered wood products are expected to be significantly lower, partially offset by significantly lower raw material costs, primarily for oriented strand board webstock. For distribution, the company anticipates lower margins for all products.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, 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. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our 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 January 27, 2023 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January 27, 2023.

To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734906) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734906). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734906) from within North America, and at 1-412-317-6671 (access code: 13734906) from outside North America.

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, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest volumes and sales realizations for our Timberlands business; log and haul, forestry and road costs and expenses; sales volumes and log and manufacturing costs for our lumber business; sales volumes, fiber costs and unit manufacturing costs for our oriented strand board business; sales realizations and raw material costs for our engineered wood products business; margins for all products in our distribution business; and our future performance through a range of market conditions. 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," "expect," "looking ahead," "planned," "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:

• the effect of general economic conditions, including employment rates, interest rate levels, inflation, housing starts, general availability and cost of financing for home mortgages and the relative strength of the U.S. dollar;
• the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
• market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
• changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
• restrictions on international trade and tariffs imposed on imports or exports;
• the availability and cost of shipping and transportation;
• economic activity in Asia, especially Japan and China;
• performance of our manufacturing operations, including maintenance and capital requirements;
• potential disruptions in our manufacturing operations;
• the level of competition from domestic and foreign producers;
• the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
• our ability to hire and retain capable employees;
• the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
• raw material availability and prices;
• the effect of weather;
• changes in global or regional climate conditions and governmental response to such changes;
• the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
• energy prices;
• transportation and labor availability and costs;
• federal tax policies;
• the effect of forestry, land use, environmental and other governmental regulations;
• legal proceedings;
• performance of pension fund investments and related derivatives;
• the effect of timing of employee retirements as it relates to the cost of pension benefits and changes in the market price of our common stock on charges for share-based compensation;
• the accuracy of our estimates of costs and expenses related to contingent liabilities and the accuracy of our estimates of charges related to casualty losses;
• changes in accounting principles; and
• other risks and uncertainties identified in our 2021 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

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.

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 year ended December 31, 2022:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	1,880
Interest expense, net of capitalized interest																			270
Loss on debt extinguishment(1)																			276
Income taxes																			425
Net contribution (charge) to earnings		$	528			$	218			$	2,536			$	(431)			$	2,851
Non-operating pension and other post-employment benefit costs(2)			—				—				—				254				254
Interest income and other			—				—				—				(25)				(25)
Operating income (loss)			528				218				2,536				(202)				3,080
Depreciation, depletion and amortization			256				17				201				6				480
Basis of real estate sold			—				84				—				—				84
Special items included in operating income (loss)(3)			—				10				—				—				10
Adjusted EBITDA		$	784			$	329			$	2,737			$	(196)			$	3,654

(1)	Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt.
(2)	Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $205 million noncash settlement charge related to the transfer of pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract.
(3)	Operating income (loss) for Real Estate & ENR includes a pretax special item consisting of a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets.

 

The table below reconciles Adjusted EBITDA for the year ended December 31, 2021:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	2,607
Interest expense, net of capitalized interest																			313
Income taxes																			709
Net contribution (charge) to earnings		$	464			$	210			$	3,211			$	(256)			$	3,629
Non-operating pension and other post-employment benefit costs			—				—				—				19				19
Interest income and other			—				—				—				(5)				(5)
Operating income (loss)			464				210				3,211				(242)				3,643
Depreciation, depletion and amortization			261				15				196				5				477
Basis of real estate sold			—				71				—				—				71
Special items included in operating income (loss)(1)(2)(3)			(32)				—				(50)				(15)				(97)
Adjusted EBITDA		$	693			$	296			$	3,357			$	(252)			$	4,094

(1)	Operating income (loss) for Timberlands includes a pretax special item consisting of a $32 million gain on the sale of timberlands.
(2)	Operating income (loss) for Wood Products includes pretax special items consisting of a $37 million product remediation insurance recovery and a $13 million insurance recovery.
(3)	Operating income (loss) for Unallocated Items includes a pretax special item consisting of a $15 million noncash legal benefit.

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2022:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	11
Interest expense, net of capitalized interest																			66
Income taxes																			(45)
Net contribution (charge) to earnings		$	86			$	24			$	147			$	(225)			$	32
Non-operating pension and other post-employment benefit costs(1)			—				—				—				216				216
Interest income and other			—				—				—				(16)				(16)
Operating income (loss)			86				24				147				(25)				232
Depreciation, depletion and amortization			64				5				50				1				120
Basis of real estate sold			—				7				—				—				7
Special items included in operating income (loss)(2)			—				10				—				—				10
Adjusted EBITDA		$	150			$	46			$	197			$	(24)			$	369

(1)	Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $205 million noncash settlement charge related to the transfer of pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract.
(2)	Operating income (loss) for Real Estate & ENR includes a pretax special item consisting of a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets.

 

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2022:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	310
Interest expense, net of capitalized interest																			67
Income taxes																			77
Net contribution (charge) to earnings		$	107			$	48			$	344			$	(45)			$	454
Non-operating pension and other post-employment benefit costs			—				—				—				12				12
Interest income and other			—				—				—				(9)				(9)
Operating income (loss)			107				48				344				(42)				457
Depreciation, depletion and amortization			61				5				51				2				119
Basis of real estate sold			—				7				—				—				7
Adjusted EBITDA		$	168			$	60			$	395			$	(40)			$	583

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2021:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	416
Interest expense, net of capitalized interest																			77
Income taxes																			112
Net contribution (charge) to earnings		$	110			$	36			$	516			$	(57)			$	605
Non-operating pension and other post-employment benefit costs			—				—				—				5				5
Interest income and other			—				—				—				(1)				(1)
Operating income (loss)			110				36				516				(53)				609
Depreciation, depletion and amortization			66				4				51				—				121
Basis of real estate sold			—				9				—				—				9
Special items included in operating income (loss)(1)(2)			—				—				(50)				(15)				(65)
Adjusted EBITDA		$	176			$	49			$	517			$	(68)			$	674

(1)	Operating income (loss) for Wood Products includes pretax special items consisting of a $37 million product remediation insurance recovery and a $13 million insurance recovery.
(2)	Operating income (loss) for Unallocated Items includes a pretax special item consisting of a $15 million noncash legal benefit.

 

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:

		2022				2022				2021				2022				2021
(millions)		Q3				Q4				Q4				Full Year				Full Year
Net earnings		$	310			$	11			$	416			$	1,880			$	2,607
Gain on sale of timberlands			—				—				—				—				(32)
Insurance recovery			—				—				(9)				—				(9)
Legal benefit			—				—				(12)				—				(12)
Loss on debt extinguishment			—				—				—				207				—
Pension settlement charge			—				152				—				152				—
Product remediation recovery			—				—				(28)				—				(28)
Restructuring, impairments and other charges			—				8				—				8				—
Net earnings before special items		$	310			$	171			$	367			$	2,247			$	2,526

 

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

		2022				2022				2021				2022				2021
		Q3				Q4				Q4				Full Year				Full Year
Net earnings per diluted share		$	0.42			$	0.02			$	0.55			$	2.53			$	3.47
Gain on sale of timberlands			—				—				—				—				(0.04)
Insurance recovery			—				—				(0.01)				—				(0.01)
Legal benefit			—				—				(0.01)				—				(0.01)
Loss on debt extinguishment			—				—				—				0.28				—
Pension settlement charge			—				0.21				—				0.20				—
Product remediation recovery			—				—				(0.04)				—				(0.04)
Restructuring, impairments and other charges			—				0.01				—				0.01				—
Net earnings per diluted share before special items		$	0.42			$	0.24			$	0.49			$	3.02			$	3.37

 

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:

		2022				2022				2021				2022				2021
(millions)		Q3				Q4				Q4				Full Year				Full Year
Net cash from operations		$	562			$	167			$	494			$	2,832			$	3,159
Capital expenditures			(94)				(223)				(218)				(468)				(441)
Adjustments to FAD(1)			—				—				(95)				(37)				(95)
Adjusted FAD		$	468			$	(56)			$	181			$	2,327			$	2,623

(1)	Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022 and a $95 million tax refund received in fourth quarter 2021 associated with our $300 million voluntary contribution to our U.S. qualified pension plan in 2018.

 

Weyerhaeuser Company																						Exhibit 99.2
Q4.2022 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations
		Q1				Q2				Q3				Q4								Year-to-Date
in millions		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Net sales		$	3,112			$	2,973			$	2,276			$	1,823			$	2,206			$	10,184			$	10,201
Costs of sales			1,647				1,789				1,694				1,434				1,501				6,564				6,103
Gross margin			1,465				1,184				582				389				705				3,620				4,098
Selling expenses			23				23				24				23				27				93				95
General and administrative expenses			92				102				100				104				113				398				396
Other operating costs (income), net			6				12				1				30				(44)				49				(36)
Operating income			1,344				1,047				457				232				609				3,080				3,643
Non-operating pension and other post-employment benefit costs			(15)				(11)				(12)				(216)				(5)				(254)				(19)
Interest income and other			(1)				1				9				16				1				25				5
Interest expense, net of capitalized interest			(72)				(65)				(67)				(66)				(77)				(270)				(313)
Loss on debt extinguishment			(276)				—				—				—				—				(276)				—
Earnings (loss) before income taxes			980				972				387				(34)				528				2,305				3,316
Income taxes			(209)				(184)				(77)				45				(112)				(425)				(709)
Net earnings		$	771			$	788			$	310			$	11			$	416			$	1,880			$	2,607

 

Per Share Information
		Q1				Q2				Q3				Q4								Year-to-Date
		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Earnings per share
Basic		$	1.03			$	1.06			$	0.42			$	0.02			$	0.56			$	2.53			$	3.48
Diluted		$	1.03			$	1.06			$	0.42			$	0.02			$	0.55			$	2.53			$	3.47
Dividends paid per common share		$	1.63			$	0.18			$	0.18			$	0.18			$	0.67			$	2.17			$	1.18
Weighted average shares outstanding (in thousands):
Basic			747,507				744,542				740,058				735,715				749,020				741,904				749,496
Diluted			748,823				745,582				740,975				736,640				750,942				742,953				750,983
Common shares outstanding at end of period (in thousands)			745,442				741,738				737,547				732,794				747,301				732,794				747,301

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)
		Q1				Q2				Q3				Q4								Year-to-Date
in millions		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Net earnings		$	771			$	788			$	310			$	11			$	416			$	1,880			$	2,607
Non-operating pension and other post-employment benefit costs			15				11				12				216				5				254				19
Interest income and other			1				(1)				(9)				(16)				(1)				(25)				(5)
Interest expense, net of capitalized interest			72				65				67				66				77				270				313
Loss on debt extinguishment			276				—				—				—				—				276				—
Income taxes			209				184				77				(45)				112				425				709
Operating income			1,344				1,047				457				232				609				3,080				3,643
Depreciation, depletion and amortization			122				119				119				120				121				480				477
Basis of real estate sold			31				39				7				7				9				84				71
Special items included in operating income			—				—				—				10				(65)				10				(97)
Adjusted EBITDA(1)		$	1,497			$	1,205			$	583			$	369			$	674			$	3,654			$	4,094

(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.

 

Weyerhaeuser Company																						Total Company Statistics
Q4.2022 Analyst Package
Preliminary results (unaudited)
Special Items Included in Net Earnings (Income Tax Affected)
		Q1				Q2				Q3				Q4								Year-to-Date
in millions		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Net earnings		$	771			$	788			$	310			$	11			$	416			$	1,880			$	2,607
Gain on sale of timberlands			—				—				—				—				—				—				(32)
Insurance recovery			—				—				—				—				(9)				—				(9)
Legal benefit			—				—				—				—				(12)				—				(12)
Loss on debt extinguishment(1)			207				—				—				—				—				207				—
Pension settlement charge			—				—				—				152				—				152				—
Product remediation recovery			—				—				—				—				(28)				—				(28)
Restructuring, impairments and other charges			—				—				—				8				—				8				—
Net earnings before special items(2)		$	978			$	788			$	310			$	171			$	367			$	2,247			$	2,526

 

		Q1				Q2				Q3				Q4								Year-to-Date
		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Net earnings per diluted share		$	1.03			$	1.06			$	0.42			$	0.02			$	0.55			$	2.53			$	3.47
Gain on sale of timberlands			—				—				—				—				—				—				(0.04)
Insurance recovery			—				—				—				—				(0.01)				—				(0.01)
Legal benefit			—				—				—				—				(0.01)				—				(0.01)
Loss on debt extinguishment(1)			0.28				—				—				—				—				0.28				—
Pension settlement charge			—				—				—				0.21				—				0.20				—
Product remediation recovery			—				—				—				—				(0.04)				—				(0.04)
Restructuring, impairments and other charges			—				—				—				0.01				—				0.01				—
Net earnings per diluted share before special items(2)		$	1.31			$	1.06			$	0.42			$	0.24			$	0.49			$	3.02			$	3.37

(1)	We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022.
(2)	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				Q3				Q4								Year-to-Date
in millions		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Pension and post-employment costs:
Pension and post-employment service costs		$	10			$	8			$	9			$	9			$	10			$	36			$	42
Non-operating pension and other post-employment benefit costs			15				11				12				216				5				254				19
Total company pension and post-employment costs		$	25			$	19			$	21			$	225			$	15			$	290			$	61

 

Weyerhaeuser Company Q4.2022 Analyst Package Preliminary results (unaudited)
Condensed Consolidated Balance Sheet
in millions		March 31,  2022				June 30,  2022				September 30,  2022				December 31,  2022				December 31,  2021
ASSETS
Current assets:
Cash and cash equivalents		$	1,205			$	1,723			$	1,920			$	1,581			$	1,879
Receivables, net			745				547				425				357				507
Receivables for taxes			8				6				15				42				24
Inventories			611				571				542				550				520
Prepaid expenses and other current assets			206				165				146				216				205
Total current assets			2,775				3,012				3,048				2,746				3,135
Property and equipment, net			2,026				2,000				1,997				2,171				2,057
Construction in progress			203				233				245				222				175
Timber and timberlands at cost, less depletion			11,469				11,706				11,681				11,604				11,510
Minerals and mineral rights, less depletion			252				248				245				214				255
Deferred tax assets			15				11				10				8				17
Other assets			376				370				364				375				503
Total assets		$	17,116			$	17,580			$	17,590			$	17,340			$	17,652
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$	—			$	—			$	118			$	982			$	—
Accounts payable			310				283				272				247				281
Accrued liabilities			674				658				664				511				673
Total current liabilities			984				941				1,054				1,740				954
Long-term debt, net			5,053				5,053				4,935				4,071				5,099
Deferred tax liabilities			66				83				89				96				46
Deferred pension and other post-employment benefits			432				347				335				344				440
Other liabilities			344				340				339				340				346
Total liabilities			6,879				6,764				6,752				6,591				6,885
Total equity			10,237				10,816				10,838				10,749				10,767
Total liabilities and equity		$	17,116			$	17,580			$	17,590			$	17,340			$	17,652

 

Weyerhaeuser Company Q4.2022 Analyst Package Preliminary results (unaudited)
Consolidated Statement of Cash Flows
		Q1				Q2				Q3				Q4								Year-to-Date
in millions		March 31, 2022				June 30, 2022				Sept 30, 2022				Dec 31, 2022				Dec 31, 2021				Dec 31, 2022				Dec 31, 2021
Cash flows from operations:
Net earnings		$	771			$	788			$	310			$	11			$	416			$	1,880			$	2,607
Noncash charges (credits) to earnings:
Depreciation, depletion and amortization			122				119				119				120				121				480				477
Basis of real estate sold			31				39				7				7				9				84				71
Deferred income taxes, net			14				—				3				(47)				(2)				(30)				14
Pension and other post-employment benefits			25				19				21				225				15				290				61
Share-based compensation expense			8				9				8				8				7				33				30
Gain on sale of timberlands			—				—				—				—				—				—				(32)
Loss on debt extinguishment			276				—				—				—				—				276				—
Change in:
Receivables, net			(238)				198				121				68				(10)				149				(57)
Receivables and payables for taxes			110				(83)				(12)				(116)				6				(101)				99
Inventories			(87)				29				28				(7)				(22)				(37)				(77)
Prepaid expenses and other current assets			(1)				(2)				(4)				(5)				(4)				(12)				(25)
Accounts payable and accrued liabilities			(62)				47				(8)				(88)				(3)				(111)				113
Pension and post-employment benefit contributions and payments			(4)				(10)				(5)				(5)				(3)				(24)				(59)
Other			(8)				(7)				(26)				(4)				(36)				(45)				(63)
Net cash from operations		$	957			$	1,146			$	562			$	167			$	494			$	2,832			$	3,159
Cash flows from investing activities:
Capital expenditures for property and equipment		$	(50)			$	(71)			$	(86)			$	(208)			$	(202)			$	(415)			$	(386)
Capital expenditures for timberlands reforestation			(20)				(10)				(8)				(15)				(16)				(53)				(55)
Acquisition of timberlands			(18)				(265)				(3)				(9)				—				(295)				(149)
Proceeds from sale of timberlands			—				—				—				—				—				—				261
Other			1				—				—				3				1				4				4
Net cash from investing activities		$	(87)			$	(346)			$	(97)			$	(229)			$	(217)			$	(759)			$	(325)
Cash flows from financing activities:
Cash dividends on common shares		$	(1,218)			$	(134)			$	(133)			$	(132)			$	(502)			$	(1,617)			$	(884)
Net proceeds from issuance of long-term debt			881				—				—				—				—				881				—
Payments on long-term debt			(1,203)				—				—				—				(150)				(1,203)				(375)
Proceeds from exercise of stock options			12				2				1				1				5				16				51
Repurchases of common shares			(118)				(141)				(143)				(141)				(74)				(543)				(100)
Other			(18)				(1)				(1)				(5)				(3)				(25)				(22)
Net cash from financing activities		$	(1,664)			$	(274)			$	(276)			$	(277)			$	(724)			$	(2,491)			$	(1,330)
Net change in cash, cash equivalents and restricted cash		$	(794)			$	526			$	189			$	(339)			$	(447)			$	(418)			$	1,504
Cash, cash equivalents and restricted cash at beginning of period			1,999				1,205				1,731				1,920				2,446				1,999				495
Cash, cash equivalents and restricted cash at end of period		$	1,205			$	1,731			$	1,920			$	1,581			$	1,999			$	1,581			$	1,999
Cash paid during the period for:
Interest, net of amounts capitalized		$	78			$	71			$	62			$	72			$	78			$	283			$	315
Income taxes, net of refunds		$	85			$	269			$	92			$	120			$	115			$	566			$	609

 

Weyerhaeuser Company																										Timberlands Segment
Q4.2022 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Sales to unaffiliated customers		$	465			$	515			$	441			$	437			$	429			$	1,858			$	1,636
Intersegment sales			161				156				133				111				136				561				535
Total net sales			626				671				574				548				565				2,419				2,171
Costs of sales			423				495				442				436				432				1,796				1,650
Gross margin			203				176				132				112				133				623				521
Selling expenses			—				—				1				—				1				1				2
General and administrative expenses			24				24				25				25				23				98				92
Other operating (income) loss, net			(3)				(1)				(1)				1				(1)				(4)				(37)
Operating income and Net contribution to earnings		$	182			$	153			$	107			$	86			$	110			$	528			$	464

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Operating income		$	182			$	153			$	107			$	86			$	110			$	528			$	464
Depreciation, depletion and amortization			65				66				61				64				66				256				261
Special items			—				—				—				—				—				—				(32)
Adjusted EBITDA(1)		$	247			$	219			$	168			$	150			$	176			$	784			$	693

(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		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Gain on sale of timberlands		$	—			$	—			$	—			$	—			$	—			$	—			$	32

 

Selected Segment Items
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Total decrease (increase) in working capital(2)		$	(34)			$	57			$	14			$	(28)			$	(21)			$	9			$	(31)
Cash spent for capital expenditures(3)		$	(30)			$	(23)			$	(22)			$	(38)			$	(38)			$	(113)			$	(114)

(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)
			Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Third Party		Delivered logs:
Net Sales		West	$	259			$	308			$	224			$	213			$	220			$	1,004			$	869
(millions)		South		154				160				166				165				160				645				589
		North		15				10				15				16				14				56				52
		Total delivered logs		428				478				405				394				394				1,705				1,510
		Stumpage and pay-as-cut timber		9				11				10				16				9				46				31
		Recreational and other lease revenue		17				16				18				17				17				68				65
		Other revenue		11				10				8				10				9				39				30
		Total	$	465			$	515			$	441			$	437			$	429			$	1,858			$	1,636
Delivered Logs		West	$	161.29			$	173.35			$	158.59			$	141.88			$	146.39			$	159.46			$	140.08
Third Party Sales		South	$	37.15			$	38.47			$	38.59			$	38.67			$	36.55			$	38.23			$	35.47
Realizations (per ton)		North	$	72.79			$	83.93			$	83.84			$	80.57			$	66.74			$	79.64			$	66.18
Delivered Logs		West		1,604				1,778				1,411				1,503				1,501				6,296				6,203
Third Party Sales		South		4,135				4,167				4,310				4,252				4,358				16,864				16,594
Volumes (tons, thousands)		North		210				118				177				202				217				707				788
Fee Harvest Volumes		West		2,240				2,085				1,760				1,773				1,954				7,858				8,084
(tons, thousands)		South		5,842				6,159				6,112				6,216				6,160				24,329				23,304
		North		278				180				245				271				285				974				1,085

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

 

Weyerhaeuser Company                                                                                                                                                Real Estate, Energy & Natural Resources Segment
Q4.2022 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Net sales		$	128			$	117			$	68			$	55			$	59			$	368			$	344
Costs of sales			41				45				14				13				16				113				109
Gross margin			87				72				54				42				43				255				235
General and administrative expenses			6				7				6				8				7				27				25
Other operating loss, net			—				—				—				10				—				10				—
Operating income and Net contribution to earnings		$	81			$	65			$	48			$	24			$	36			$	218			$	210

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Operating income		$	81			$	65			$	48			$	24			$	36			$	218			$	210
Depreciation, depletion and amortization			4				3				5				5				4				17				15
Basis of real estate sold			31				39				7				7				9				84				71
Special items			—				—				—				10				—				10				—
Adjusted EBITDA(1)		$	116			$	107			$	60			$	46			$	49			$	329			$	296

(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		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Restructuring, impairments and other charges		$	—			$	—			$	—			$	(10)			$	—			$	(10)			$	—

 

Selected Segment Items

in millions

Q1.2022

Q2.2022

Q3.2022

Q4.2022

Q4.2021

YTD.2022

YTD.2021

Cash spent for capital expenditures

$

—

$

—

$

—

$

—

$

—

$

—

$

—

 

Segment Statistics
			Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Net Sales	Real Estate		$	97			$	90			$	30			$	18			$	34			$	235			$	246
(millions)	Energy and Natural Resources			31				27				38				37				25				133				98
	Total		$	128			$	117			$	68			$	55			$	59			$	368			$	344
Acres Sold	Real Estate			24,126				26,906				5,014				2,745				6,920				58,791				55,827
Price per Acre	Real Estate		$	3,785			$	3,215			$	5,046			$	5,550			$	4,385			$	3,714			$	3,725
Basis as a Percent of Real Estate Net Sales	Real Estate			32	%			43	%			23	%			39	%			26	%			36	%			29	%

 

Weyerhaeuser Company                                                                                                                                                                                                     Wood Products Segment
Q4.2022 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Net sales		$	2,519			$	2,341			$	1,767			$	1,331			$	1,718			$	7,958			$	8,221
Costs of sales			1,276				1,414				1,360				1,116				1,185				5,166				4,808
Gross margin			1,243				927				407				215				533				2,792				3,413
Selling expenses			21				21				22				22				23				86				84
General and administrative expenses			35				35				36				36				34				142				138
Other operating costs (income), net			5				8				5				10				(40)				28				(20)
Operating income and Net contribution to earnings		$	1,182			$	863			$	344			$	147			$	516			$	2,536			$	3,211

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Operating income		$	1,182			$	863			$	344			$	147			$	516			$	2,536			$	3,211
Depreciation, depletion and amortization			51				49				51				50				51				201				196
Special items			—				—				—				—				(50)				—				(50)
Adjusted EBITDA(1)		$	1,233			$	912			$	395			$	197			$	517			$	2,737			$	3,357

(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		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Insurance recovery		$	—			$	—			$	—			$	—			$	13			$	—			$	13
Product remediation recovery		$	—			$	—			$	—			$	—			$	37			$	—			$	37

 

Selected Segment Items
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Total decrease (increase) in working capital(2)		$	(371)			$	205			$	136			$	20			$	(11)			$	(10)			$	(23)
Cash spent for capital expenditures		$	(39)			$	(56)			$	(68)			$	(184)			$	(174)			$	(347)			$	(320)

(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			Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Structural Lumber	Third party net sales		$	1,206			$	998			$	676			$	494			$	701			$	3,374			$	3,721
(volumes presented	Third party sales realizations		$	1,041			$	776			$	556			$	495			$	592			$	724			$	759
in board feet)	Third party sales volumes(3)			1,157				1,289				1,216				996				1,185				4,658				4,902
	Production volumes			1,203				1,232				1,140				938				1,148				4,513				4,815
Oriented Strand	Third party net sales		$	564			$	497			$	287			$	230			$	327			$	1,578			$	1,840
Board	Third party sales realizations		$	787			$	676			$	401			$	335			$	490			$	553			$	675
(volumes presented	Third party sales volumes(3)			717				735				715				686				668				2,853				2,726
in square feet 3/8")	Production volumes			739				758				735				729				725				2,961				2,865
Engineered Solid	Third party net sales		$	196			$	247			$	233			$	186			$	188			$	862			$	679
Section	Third party sales realizations		$	3,433			$	3,863			$	3,946			$	3,743			$	3,319			$	3,751			$	2,789
(volumes presented	Third party sales volumes(3)			5.7				6.4				5.9				5.0				5.7				23.0				24.4
in cubic feet)	Production volumes			5.7				6.4				6.0				5.5				6.0				23.6				24.0
Engineered	Third party net sales		$	137			$	168			$	166			$	102			$	132			$	573			$	447
I-joists	Third party sales realizations		$	2,969			$	3,432			$	3,525			$	3,537			$	2,888			$	3,350			$	2,300
(volumes presented	Third party sales volumes(3)			46				49				47				29				45				171				194
in lineal feet)	Production volumes			44				50				47				31				46				172				190
Softwood Plywood	Third party net sales		$	58			$	53			$	47			$	35			$	40			$	193			$	210
(volumes presented	Third party sales realizations		$	783			$	746			$	632			$	543			$	581			$	679			$	681
in square feet 3/8")	Third party sales volumes(3)			75				70				74				66				68				285				308
	Production volumes			66				67				64				62				60				259				263
Medium Density	Third party net sales		$	48			$	53			$	50			$	41			$	43			$	192			$	186
Fiberboard	Third party sales realizations		$	1,082			$	1,174			$	1,274			$	1,310			$	995			$	1,200			$	908
(volumes presented	Third party sales volumes(3)			44				45				40				31				43				160				205
in square feet 3/4")	Production volumes			44				48				38				31				43				161				206

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

 

Weyerhaeuser Company	Unallocated Items
Q4.2022 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, interest income and other as well as legacy obligations.

Net Charge to Earnings
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Unallocated corporate function and variable compensation expense		$	(31)			$	(36)			$	(36)			$	(36)			$	(35)			$	(139)			$	(129)
Liability classified share-based compensation			1				2				2				(1)				(4)				4				(6)
Foreign exchange gain (loss)			—				3				9				(2)				3				10				5
Elimination of intersegment profit in inventory and LIFO			(59)				18				2				18				10				(21)				(23)
Other, net			(12)				(21)				(19)				(4)				(27)				(56)				(89)
Operating loss			(101)				(34)				(42)				(25)				(53)				(202)				(242)
Non-operating pension and other post-employment benefit costs			(15)				(11)				(12)				(216)				(5)				(254)				(19)
Interest income and other			(1)				1				9				16				1				25				5
Net charge to earnings		$	(117)			$	(44)			$	(45)			$	(225)			$	(57)			$	(431)			$	(256)

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Operating loss		$	(101)			$	(34)			$	(42)			$	(25)			$	(53)			$	(202)			$	(242)
Depreciation, depletion and amortization			2				1				2				1				—				6				5
Special items			—				—				—				—				(15)				—				(15)
Adjusted EBITDA(1)		$	(99)			$	(33)			$	(40)			$	(24)			$	(68)			$	(196)			$	(252)

(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		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Legal benefit		$	—			$	—			$	—			$	—			$	15			$	—			$	15
Special items included in operating loss			—				—				—				—				15				—				15
Pension settlement charge			—				—				—				(205)				—				(205)				—
Special items included in net charge to earnings		$	—			$	—			$	—			$	(205)			$	15			$	(205)			$	15

 

Unallocated Selected Items
in millions		Q1.2022				Q2.2022				Q3.2022				Q4.2022				Q4.2021				YTD.2022				YTD.2021
Cash spent for capital expenditures		$	(1)			$	(2)			$	(4)			$	(1)			$	(6)			$	(8)			$	(7)

 

For more information contact:

Analysts – Andy Taylor (206) 539-3907
Media – Nancy Thompson (919) 861-0342

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SOURCE Weyerhaeuser Company

FAQ

What was Weyerhaeuser's fourth quarter 2022 net earnings?

Weyerhaeuser reported fourth quarter net earnings of $11 million, or 2 cents per diluted share.

How much cash is Weyerhaeuser returning to shareholders in 2022?

Weyerhaeuser is returning $1.75 billion in cash to shareholders based on 2022 results.

What is Weyerhaeuser's 2022 Adjusted EBITDA?

Weyerhaeuser's Adjusted EBITDA for full year 2022 was $3.7 billion.

What special items affected Weyerhaeuser's earnings in 2022?

Weyerhaeuser incurred after-tax charges of $367 million due to special items in 2022.

What dividend did Weyerhaeuser declare in January 2023?

Weyerhaeuser declared a $0.90 per share supplemental dividend.