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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2024
WEYERHAEUSER COMPANY
(Exact name of registrant as specified in charter)
Washington |
1-4825 |
91-0470860 |
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(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(IRS Employer Identification Number) |
220 Occidental Avenue South
Seattle, Washington 98104-7800
(Address of principal executive offices)
(zip code)
Registrant’s telephone number, including area code:
(206) 539-3000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock, par value $1.25 per share |
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WY |
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New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934:
☐ |
Emerging growth company |
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☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
TABLE OF CONTENTS
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Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition
On April 25, 2024, Weyerhaeuser Company issued a press release announcing its financial results for the quarter ended March 31, 2024. Copies of the press release and the exhibit thereto are furnished as Exhibit 99.1 and Exhibit 99.2 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(d) Exhibits. The following items are furnished as exhibits to this report.
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Exhibit No. |
Description |
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Exhibit to press release of Weyerhaeuser Company issued April 25, 2024. |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WEYERHAEUSER COMPANY |
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By: |
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/s/ David M. Wold |
Name: |
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David M. Wold |
Its: |
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Senior Vice President and Chief Financial Officer |
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(Principal Financial and Accounting Officer) |
Date: April 25, 2024
EXHIBIT 99.1
For more information contact: |
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Analysts – Andy Taylor (206) 539-3907 |
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Media – Nancy Thompson (919) 861-0342 |
Weyerhaeuser Reports First Quarter Results
SEATTLE, April 25, 2024 – Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $114 million, or 16 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $151 million, or 21 cents per diluted share, on net sales of $1.9 billion for the same period last year and net earnings of $219 million for fourth quarter 2023. There were no special items in first quarter 2024 or the same period last year. Net earnings before special items was $121 million for fourth quarter 2023. Adjusted EBITDA for first quarter 2024 was $352 million, compared with $395 million for the same period last year and $321 million for fourth quarter 2023.
“In the first quarter, we delivered solid results across our businesses,” said Devin W. Stockfish, president and chief executive officer. “In addition, we continued to make progress toward our multi-year targets by increasing our base dividend by 5.3 percent and signing our third carbon capture and sequestration agreement in the U.S. South. Looking forward, we are encouraged by the strong underlying fundamentals that will drive long-term growth for housing and repair and remodel demand, and natural climate solutions. And given our unmatched portfolio of assets, we are uniquely positioned to capitalize on these opportunities well into the future. Our balance sheet is exceptionally strong, and we remain focused on driving peer-leading performance across our businesses, serving our customers and delivering superior long-term value and returns to our shareholders.”
WEYERHAEUSER FINANCIAL HIGHLIGHTS |
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2023 |
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2024 |
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2023 |
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|||
(millions, except per share data) |
|
Q4 |
|
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Q1 |
|
|
Q1 |
|
|||
Net sales |
|
$ |
1,774 |
|
|
$ |
1,796 |
|
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$ |
1,881 |
|
Net earnings |
|
$ |
219 |
|
|
$ |
114 |
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|
$ |
151 |
|
Net earnings per diluted share |
|
$ |
0.30 |
|
|
$ |
0.16 |
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$ |
0.21 |
|
Weighted average shares outstanding, diluted |
|
|
731 |
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|
|
731 |
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|
|
734 |
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Net earnings before special items(1)(2) |
|
$ |
121 |
|
|
$ |
114 |
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$ |
151 |
|
Net earnings per diluted share before special items(1) |
|
$ |
0.16 |
|
|
$ |
0.16 |
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$ |
0.21 |
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Adjusted EBITDA(1) |
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$ |
321 |
|
|
$ |
352 |
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$ |
395 |
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Net cash from operations |
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$ |
288 |
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$ |
124 |
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$ |
126 |
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Adjusted FAD(3) |
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$ |
92 |
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|
$ |
45 |
|
|
$ |
55 |
|
1
TIMBERLANDS
FINANCIAL HIGHLIGHTS |
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2023 |
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2024 |
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(millions) |
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Q4 |
|
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Q1 |
|
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Change |
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|||
Net sales |
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$ |
534 |
|
|
$ |
521 |
|
|
$ |
(13 |
) |
Net contribution to pretax earnings |
|
$ |
186 |
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$ |
80 |
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$ |
(106 |
) |
Pretax benefit for special items |
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$ |
(109 |
) |
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$ |
— |
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$ |
109 |
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Net contribution to pretax earnings before special items |
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$ |
77 |
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$ |
80 |
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$ |
3 |
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Adjusted EBITDA |
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$ |
143 |
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$ |
144 |
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$ |
1 |
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Q1 2024 Performance – In the West, fee harvest volumes were moderately higher than the fourth quarter. Domestic sales volumes were significantly higher and export sales volumes were significantly lower, primarily for China, as the company flexed volumes to the domestic market. Domestic sales realizations were slightly lower, primarily due to mix, while export sales realizations were comparable. Per unit log and haul costs were significantly lower due to the seasonal transition to lower elevation harvest activity. In the South, fee harvest volumes were slightly lower than the fourth quarter. Sales realizations and per unit log and haul costs were comparable. Forestry and road costs in the West and South were seasonally lower.
Q2 2024 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be slightly higher than the first quarter. In the West, the company expects moderately higher fee harvest volumes, comparable sales realizations, and higher per unit log and haul costs. In the South, the company expects fee harvest volumes to be moderately higher and sales realizations and per unit log and haul costs to be comparable. Forestry and road costs in the West and South are expected to be seasonally higher.
REAL ESTATE, ENERGY & NATURAL RESOURCES
FINANCIAL HIGHLIGHTS |
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2023 |
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2024 |
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(millions) |
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Q4 |
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Q1 |
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Change |
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Net sales |
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$ |
77 |
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$ |
107 |
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$ |
30 |
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Net contribution to pretax earnings |
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$ |
50 |
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$ |
60 |
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$ |
10 |
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Adjusted EBITDA |
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$ |
67 |
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$ |
94 |
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$ |
27 |
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Q1 2024 Performance – Earnings and Adjusted EBITDA increased from the fourth quarter due to higher real estate sales. The number of acres sold increased significantly and the average price per acre decreased due to the timing and mix of properties sold.
Q2 2024 Outlook – Weyerhaeuser anticipates second quarter earnings will be approximately $10 million lower than the first quarter and Adjusted EBITDA will be comparable to the first quarter due to the timing and mix of real estate sales.
WOOD PRODUCTS
FINANCIAL HIGHLIGHTS |
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2023 |
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2024 |
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(millions) |
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Q4 |
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Q1 |
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Change |
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Net sales |
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$ |
1,302 |
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$ |
1,302 |
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$ |
— |
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Net contribution to pretax earnings |
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$ |
119 |
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$ |
128 |
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$ |
9 |
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Pretax benefit for special items |
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$ |
(14 |
) |
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$ |
— |
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$ |
14 |
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Net contribution to pretax earnings before special items |
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$ |
105 |
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$ |
128 |
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$ |
23 |
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Adjusted EBITDA |
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$ |
159 |
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$ |
184 |
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$ |
25 |
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Q1 2024 Performance – Sales realizations for both lumber and oriented strand board increased four percent compared with fourth quarter averages. Sales volumes for lumber were slightly lower, partially driven by winter weather disruptions early in the quarter. Unit manufacturing costs for lumber were slightly higher and log costs were slightly lower.
2
For oriented strand board, sales volumes and fiber costs were slightly higher, while unit manufacturing costs were slightly lower. Sales realizations were lower for most engineered wood products, while raw material costs were moderately higher. Unit manufacturing costs were slightly higher, and sales volumes were comparable for solid section and lower for I-joist products. Distribution results were higher due to improved commodity realizations and margins.
Q2 2024 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be slightly higher than the first quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes, slightly lower log costs, and moderately lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes, slightly higher fiber costs, and comparable unit manufacturing costs. For engineered wood products, the company expects sales volumes to be higher, sales realizations to be comparable, and raw material costs to be higher, primarily for oriented strand board webstock. For distribution, the company anticipates higher results compared to the first quarter.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls approximately 10.5 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, and energy and natural resources, among others. In 2023, the company generated $7.7 billion in net sales and employed approximately 9,300 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser’s 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 April 26, 2024 to discuss first quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 26, 2024.
To join the conference call from within North America, dial 1-877-407-0792 (access code: 13742027) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13742027). Replays will be available for two weeks at 1-844-512-2921 (access code: 13742027) from within North America, and at 1-412-317-6671 (access code: 13742027) 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: long-term growth in housing, repair and remodel demand and natural climate solutions; future operating performance, innovation and delivery of long-term shareholder value and returns; earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest volumes, sales realizations, log and haul costs and forestry and road costs for our Timberlands business; sales volumes, log costs and unit manufacturing costs for our lumber business; sales volumes, fiber costs and unit manufacturing costs for our oriented strand board business and sales volumes, sales realizations and raw material costs for our engineered wood products business and results for our distribution business. 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,” “future,” “growth,” “look forward,” “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.
3
These risks and uncertainties include, but are not limited to:
4
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.
5
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 quarter ended December 31, 2023:
(millions) |
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Timberlands |
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Real Estate |
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Wood |
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Unallocated |
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Total |
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Adjusted EBITDA by Segment: |
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Net earnings |
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$ |
219 |
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Interest expense, net of capitalized interest |
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72 |
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Income taxes |
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(3 |
) |
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Net contribution (charge) to earnings |
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$ |
186 |
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$ |
50 |
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$ |
119 |
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$ |
(67 |
) |
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$ |
288 |
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Non-operating pension and other post-employment benefit costs |
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|
— |
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— |
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— |
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12 |
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12 |
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Interest income and other |
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— |
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— |
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— |
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(22 |
) |
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(22 |
) |
Operating income (loss) |
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186 |
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50 |
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119 |
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(77 |
) |
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|
278 |
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Depreciation, depletion and amortization |
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|
66 |
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4 |
|
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54 |
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2 |
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|
126 |
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Basis of real estate sold |
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— |
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13 |
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— |
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— |
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13 |
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Special items included in operating income (loss)(1)(2)(3) |
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(109 |
) |
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— |
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(14 |
) |
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27 |
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|
|
(96 |
) |
Adjusted EBITDA |
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$ |
143 |
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$ |
67 |
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$ |
159 |
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$ |
(48 |
) |
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$ |
321 |
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The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2024:
(millions) |
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Timberlands |
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Real Estate |
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Wood |
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Unallocated |
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Total |
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Adjusted EBITDA by Segment: |
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Net earnings |
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$ |
114 |
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Interest expense, net of capitalized interest |
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67 |
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Income taxes |
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20 |
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Net contribution (charge) to earnings |
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$ |
80 |
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$ |
60 |
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$ |
128 |
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$ |
(67 |
) |
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$ |
201 |
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Non-operating pension and other post-employment benefit costs |
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|
— |
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— |
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— |
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11 |
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11 |
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Interest income and other |
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— |
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— |
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— |
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(16 |
) |
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(16 |
) |
Operating income (loss) |
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80 |
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60 |
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128 |
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(72 |
) |
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196 |
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Depreciation, depletion and amortization |
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|
64 |
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3 |
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56 |
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2 |
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|
125 |
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Basis of real estate sold |
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— |
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31 |
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— |
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— |
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|
31 |
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Adjusted EBITDA |
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$ |
144 |
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$ |
94 |
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$ |
184 |
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$ |
(70 |
) |
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$ |
352 |
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6
The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2023:
(millions) |
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Timberlands |
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Real Estate |
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Wood |
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Unallocated |
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Total |
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Adjusted EBITDA by Segment: |
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Net earnings |
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$ |
151 |
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Interest expense, net of capitalized interest |
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|
66 |
|
||||
Income taxes |
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22 |
|
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Net contribution (charge) to earnings |
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$ |
120 |
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$ |
53 |
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$ |
95 |
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|
$ |
(29 |
) |
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$ |
239 |
|
Non-operating pension and other post-employment benefit costs |
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|
— |
|
|
|
— |
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|
|
— |
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9 |
|
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|
9 |
|
Interest income and other |
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|
— |
|
|
|
— |
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|
|
— |
|
|
|
(12 |
) |
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|
(12 |
) |
Operating income (loss) |
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|
120 |
|
|
|
53 |
|
|
|
95 |
|
|
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(32 |
) |
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|
236 |
|
Depreciation, depletion and amortization |
|
|
68 |
|
|
|
3 |
|
|
|
53 |
|
|
|
2 |
|
|
|
126 |
|
Basis of real estate sold |
|
|
— |
|
|
|
33 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
Adjusted EBITDA |
|
$ |
188 |
|
|
$ |
89 |
|
|
$ |
148 |
|
|
$ |
(30 |
) |
|
$ |
395 |
|
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:
|
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2023 |
|
|
2024 |
|
|
2023 |
|
|||
(millions) |
|
Q4 |
|
|
Q1 |
|
|
Q1 |
|
|||
Net earnings |
|
$ |
219 |
|
|
$ |
114 |
|
|
$ |
151 |
|
Gain on sale of timberlands |
|
|
(83 |
) |
|
|
— |
|
|
|
— |
|
Insurance recovery |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
Legal benefit |
|
|
(25 |
) |
|
|
— |
|
|
|
— |
|
Legal expense |
|
|
20 |
|
|
|
— |
|
|
|
— |
|
Net earnings before special items |
|
$ |
121 |
|
|
$ |
114 |
|
|
$ |
151 |
|
The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
Q4 |
|
|
Q1 |
|
|
Q1 |
|
|||
Net earnings per diluted share |
|
$ |
0.30 |
|
|
$ |
0.16 |
|
|
$ |
0.21 |
|
Gain on sale of timberlands |
|
|
(0.12 |
) |
|
|
— |
|
|
|
— |
|
Insurance recovery |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Legal benefit |
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
Legal expense |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Net earnings per diluted share before special items |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.21 |
|
7
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:
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||
(millions) |
|
Q4 |
|
|
Q1 |
|
|
Q1 |
|
|||
Net cash from operations |
|
$ |
288 |
|
|
$ |
124 |
|
|
$ |
126 |
|
Capital expenditures |
|
|
(196 |
) |
|
|
(79 |
) |
|
|
(71 |
) |
Adjusted FAD |
|
$ |
92 |
|
|
$ |
45 |
|
|
$ |
55 |
|
8
Weyerhaeuser Company |
Exhibit 99.2 |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations
|
|
Q4 |
|
|
Q1 |
|
||||||
in millions |
|
Dec 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Net sales |
|
$ |
1,774 |
|
|
$ |
1,796 |
|
|
$ |
1,881 |
|
Costs of sales |
|
|
1,432 |
|
|
|
1,441 |
|
|
|
1,512 |
|
Gross margin |
|
|
342 |
|
|
|
355 |
|
|
|
369 |
|
Selling expenses |
|
|
21 |
|
|
|
22 |
|
|
|
22 |
|
General and administrative expenses |
|
|
115 |
|
|
|
120 |
|
|
|
101 |
|
Gain on sale of timberlands |
|
|
(84 |
) |
|
|
— |
|
|
|
— |
|
Other operating costs, net |
|
|
12 |
|
|
|
17 |
|
|
|
10 |
|
Operating income |
|
|
278 |
|
|
|
196 |
|
|
|
236 |
|
Non-operating pension and other post-employment benefit costs |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
(9 |
) |
Interest income and other |
|
|
22 |
|
|
|
16 |
|
|
|
12 |
|
Interest expense, net of capitalized interest |
|
|
(72 |
) |
|
|
(67 |
) |
|
|
(66 |
) |
Earnings before income taxes |
|
|
216 |
|
|
|
134 |
|
|
|
173 |
|
Income taxes |
|
|
3 |
|
|
|
(20 |
) |
|
|
(22 |
) |
Net earnings |
|
$ |
219 |
|
|
$ |
114 |
|
|
$ |
151 |
|
Per Share Information
|
|
Q4 |
|
|
Q1 |
|
||||||
|
|
Dec 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Earnings per share, basic and diluted |
|
$ |
0.30 |
|
|
$ |
0.16 |
|
|
$ |
0.21 |
|
Dividends paid per common share |
|
$ |
0.19 |
|
|
$ |
0.34 |
|
|
$ |
1.09 |
|
Weighted average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
730,422 |
|
|
|
730,043 |
|
|
|
733,163 |
|
Diluted |
|
|
731,277 |
|
|
|
730,558 |
|
|
|
733,546 |
|
Common shares outstanding at end of period (in thousands) |
|
|
729,753 |
|
|
|
729,141 |
|
|
|
732,507 |
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)
|
|
Q4 |
|
|
Q1 |
|
||||||
in millions |
|
Dec 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Net earnings |
|
$ |
219 |
|
|
$ |
114 |
|
|
$ |
151 |
|
Non-operating pension and other post-employment benefit costs |
|
|
12 |
|
|
|
11 |
|
|
|
9 |
|
Interest income and other |
|
|
(22 |
) |
|
|
(16 |
) |
|
|
(12 |
) |
Interest expense, net of capitalized interest |
|
|
72 |
|
|
|
67 |
|
|
|
66 |
|
Income taxes |
|
|
(3 |
) |
|
|
20 |
|
|
|
22 |
|
Operating income |
|
|
278 |
|
|
|
196 |
|
|
|
236 |
|
Depreciation, depletion and amortization |
|
|
126 |
|
|
|
125 |
|
|
|
126 |
|
Basis of real estate sold |
|
|
13 |
|
|
|
31 |
|
|
|
33 |
|
Special items included in operating income |
|
|
(96 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA(1) |
|
$ |
321 |
|
|
$ |
352 |
|
|
$ |
395 |
|
(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.
Page 1 of 8
Weyerhaeuser Company |
Total Company Statistics |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Special Items Included in Net Earnings (Income Tax Affected)
|
|
Q4 |
|
|
Q1 |
|
||||||
in millions |
|
Dec 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Net earnings |
|
$ |
219 |
|
|
$ |
114 |
|
|
$ |
151 |
|
Gain on sale of timberlands |
|
|
(83 |
) |
|
|
— |
|
|
|
— |
|
Insurance recovery |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
Legal benefit |
|
|
(25 |
) |
|
|
— |
|
|
|
— |
|
Legal expense |
|
|
20 |
|
|
|
— |
|
|
|
— |
|
Net earnings before special items(1) |
|
$ |
121 |
|
|
$ |
114 |
|
|
$ |
151 |
|
|
|
Q4 |
|
|
Q1 |
|
||||||
|
|
Dec 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Net earnings per diluted share |
|
$ |
0.30 |
|
|
$ |
0.16 |
|
|
$ |
0.21 |
|
Gain on sale of timberlands |
|
|
(0.12 |
) |
|
|
— |
|
|
|
— |
|
Insurance recovery |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Legal benefit |
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
Legal expense |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Net earnings per diluted share before special items(1) |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.21 |
|
(1) 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
|
|
Q4 |
|
|
Q1 |
|
||||||
in millions |
|
Dec 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Pension and post-employment costs: |
|
|
|
|
|
|
|
|
|
|||
Pension and post-employment service costs |
|
$ |
6 |
|
|
$ |
5 |
|
|
$ |
6 |
|
Non-operating pension and other post-employment benefit costs |
|
|
12 |
|
|
|
11 |
|
|
|
9 |
|
Total company pension and post-employment costs |
|
$ |
18 |
|
|
$ |
16 |
|
|
$ |
15 |
|
Page 2 of 8
Weyerhaeuser Company |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Condensed Consolidated Balance Sheet
in millions |
|
December 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
1,164 |
|
|
$ |
871 |
|
|
$ |
797 |
|
Receivables, net |
|
|
354 |
|
|
|
405 |
|
|
|
440 |
|
Receivables for taxes |
|
|
10 |
|
|
|
13 |
|
|
|
28 |
|
Inventories |
|
|
566 |
|
|
|
630 |
|
|
|
586 |
|
Prepaid expenses and other current assets |
|
|
219 |
|
|
|
192 |
|
|
|
202 |
|
Total current assets |
|
|
2,313 |
|
|
|
2,111 |
|
|
|
2,053 |
|
Property and equipment, net |
|
|
2,269 |
|
|
|
2,283 |
|
|
|
2,157 |
|
Construction in progress |
|
|
270 |
|
|
|
243 |
|
|
|
222 |
|
Timber and timberlands at cost, less depletion |
|
|
11,528 |
|
|
|
11,481 |
|
|
|
11,564 |
|
Minerals and mineral rights, less depletion |
|
|
200 |
|
|
|
198 |
|
|
|
211 |
|
Deferred tax assets |
|
|
15 |
|
|
|
14 |
|
|
|
8 |
|
Other assets |
|
|
388 |
|
|
|
426 |
|
|
|
365 |
|
Total assets |
|
$ |
16,983 |
|
|
$ |
16,756 |
|
|
$ |
16,580 |
|
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Current maturities of long-term debt |
|
$ |
— |
|
|
$ |
210 |
|
|
$ |
981 |
|
Accounts payable |
|
|
287 |
|
|
|
310 |
|
|
|
266 |
|
Accrued liabilities |
|
|
501 |
|
|
|
424 |
|
|
|
403 |
|
Total current liabilities |
|
|
788 |
|
|
|
944 |
|
|
|
1,650 |
|
Long-term debt, net |
|
|
5,069 |
|
|
|
4,861 |
|
|
|
4,072 |
|
Deferred tax liabilities |
|
|
81 |
|
|
|
84 |
|
|
|
101 |
|
Deferred pension and other post-employment benefits |
|
|
461 |
|
|
|
460 |
|
|
|
346 |
|
Other liabilities |
|
|
348 |
|
|
|
353 |
|
|
|
335 |
|
Total liabilities |
|
|
6,747 |
|
|
|
6,702 |
|
|
|
6,504 |
|
Total equity |
|
|
10,236 |
|
|
|
10,054 |
|
|
|
10,076 |
|
Total liabilities and equity |
|
$ |
16,983 |
|
|
$ |
16,756 |
|
|
$ |
16,580 |
|
Page 3 of 8
Weyerhaeuser Company |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows
|
|
Q4 |
|
|
Q1 |
|
||||||
in millions |
|
December 31, |
|
|
March 31, |
|
|
March 31, |
|
|||
Cash flows from operations: |
|
|
|
|
|
|
|
|
|
|||
Net earnings |
|
$ |
219 |
|
|
$ |
114 |
|
|
$ |
151 |
|
Noncash charges (credits) to earnings: |
|
|
|
|
|
|
|
|
|
|||
Depreciation, depletion and amortization |
|
|
126 |
|
|
|
125 |
|
|
|
126 |
|
Basis of real estate sold |
|
|
13 |
|
|
|
31 |
|
|
|
33 |
|
Pension and other post-employment benefits |
|
|
18 |
|
|
|
16 |
|
|
|
15 |
|
Share-based compensation expense |
|
|
10 |
|
|
|
10 |
|
|
|
8 |
|
Net gain on sale of timberlands |
|
|
(84 |
) |
|
|
— |
|
|
|
— |
|
Other |
|
|
(2 |
) |
|
|
1 |
|
|
|
3 |
|
Change in: |
|
|
|
|
|
|
|
|
|
|||
Receivables, net |
|
|
81 |
|
|
|
(53 |
) |
|
|
(83 |
) |
Receivables and payables for taxes |
|
|
(10 |
) |
|
|
(3 |
) |
|
|
14 |
|
Inventories |
|
|
(36 |
) |
|
|
(68 |
) |
|
|
(36 |
) |
Prepaid expenses and other current assets |
|
|
(8 |
) |
|
|
17 |
|
|
|
(9 |
) |
Accounts payable and accrued liabilities |
|
|
(8 |
) |
|
|
(51 |
) |
|
|
(87 |
) |
Pension and post-employment benefit contributions and payments |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
Other |
|
|
(27 |
) |
|
|
(11 |
) |
|
|
(3 |
) |
Net cash from operations |
|
$ |
288 |
|
|
$ |
124 |
|
|
$ |
126 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|||
Capital expenditures for property and equipment |
|
$ |
(181 |
) |
|
$ |
(57 |
) |
|
$ |
(50 |
) |
Capital expenditures for timberlands reforestation |
|
|
(15 |
) |
|
|
(22 |
) |
|
|
(21 |
) |
Acquisition of timberlands |
|
|
(163 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from sale of timberlands |
|
|
166 |
|
|
|
— |
|
|
|
— |
|
Maturities of short-term investments |
|
|
664 |
|
|
|
— |
|
|
|
— |
|
Other |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
Net cash from investing activities |
|
$ |
474 |
|
|
$ |
(77 |
) |
|
$ |
(69 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|||
Cash dividends on common shares |
|
$ |
(140 |
) |
|
$ |
(248 |
) |
|
$ |
(799 |
) |
Net proceeds from issuance of long-term debt |
|
|
249 |
|
|
|
— |
|
|
|
— |
|
Payments on long-term debt |
|
|
(860 |
) |
|
|
— |
|
|
|
— |
|
Repurchases of common shares |
|
|
(22 |
) |
|
|
(50 |
) |
|
|
(34 |
) |
Other |
|
|
2 |
|
|
|
(10 |
) |
|
|
(8 |
) |
Net cash from financing activities |
|
$ |
(771 |
) |
|
$ |
(308 |
) |
|
$ |
(841 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Net change in cash, cash equivalents and restricted cash |
|
$ |
(9 |
) |
|
$ |
(261 |
) |
|
$ |
(784 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,173 |
|
|
|
1,164 |
|
|
|
1,581 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,164 |
|
|
$ |
903 |
|
|
$ |
797 |
|
|
|
|
|
|
|
|
|
|
|
|||
Cash paid during the period for: |
|
|
|
|
|
|
|
|
|
|||
Interest, net of amounts capitalized |
|
$ |
93 |
|
|
$ |
57 |
|
|
$ |
57 |
|
Income taxes, net of refunds |
|
$ |
23 |
|
|
$ |
23 |
|
|
$ |
6 |
|
Page 4 of 8
Weyerhaeuser Company |
Timberlands Segment |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Sales to unaffiliated customers |
|
$ |
395 |
|
|
$ |
387 |
|
|
$ |
462 |
|
Intersegment sales |
|
|
139 |
|
|
|
134 |
|
|
|
142 |
|
Total net sales |
|
|
534 |
|
|
|
521 |
|
|
|
604 |
|
Costs of sales |
|
|
429 |
|
|
|
415 |
|
|
|
461 |
|
Gross margin |
|
|
105 |
|
|
|
106 |
|
|
|
143 |
|
General and administrative expenses |
|
|
26 |
|
|
|
25 |
|
|
|
25 |
|
Gain on sale of timberlands |
|
|
(84 |
) |
|
|
— |
|
|
|
— |
|
Other operating (income) costs, net |
|
|
(23 |
) |
|
|
1 |
|
|
|
(2 |
) |
Operating income and Net contribution to earnings |
|
$ |
186 |
|
|
$ |
80 |
|
|
$ |
120 |
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Operating income |
|
$ |
186 |
|
|
$ |
80 |
|
|
$ |
120 |
|
Depreciation, depletion and amortization |
|
|
66 |
|
|
|
64 |
|
|
|
68 |
|
Special items |
|
|
(109 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA(1) |
|
$ |
143 |
|
|
$ |
144 |
|
|
$ |
188 |
|
(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 |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Gain on sale of timberlands |
|
$ |
(84 |
) |
|
$ |
— |
|
|
$ |
— |
|
Legal benefit |
|
$ |
(25 |
) |
|
$ |
— |
|
|
$ |
— |
|
Selected Segment Items
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Total (increase) decrease in working capital(2) |
|
$ |
(45 |
) |
|
$ |
8 |
|
|
$ |
(24 |
) |
Cash spent for capital expenditures(3) |
|
$ |
(37 |
) |
|
$ |
(31 |
) |
|
$ |
(26 |
) |
(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)
|
|
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Third Party |
|
Delivered logs: |
|
|
|
|
|
|
|
|
|||
Net Sales |
|
West |
$ |
183 |
|
|
$ |
176 |
|
|
$ |
229 |
|
(millions) |
|
South |
|
158 |
|
|
|
151 |
|
|
|
168 |
|
|
|
North |
|
13 |
|
|
|
13 |
|
|
|
17 |
|
|
|
Total delivered logs |
|
354 |
|
|
|
340 |
|
|
|
414 |
|
|
|
Stumpage and pay-as-cut timber |
|
13 |
|
|
|
11 |
|
|
|
16 |
|
|
|
Recreational and other lease revenue |
|
20 |
|
|
|
19 |
|
|
|
18 |
|
|
|
Other revenue |
|
8 |
|
|
|
17 |
|
|
|
14 |
|
|
|
Total |
$ |
395 |
|
|
$ |
387 |
|
|
$ |
462 |
|
Delivered Logs |
|
West |
$ |
126.58 |
|
|
$ |
121.06 |
|
|
$ |
137.10 |
|
Third Party Sales |
|
South |
$ |
37.15 |
|
|
$ |
36.93 |
|
|
$ |
38.23 |
|
Realizations (per ton) |
|
North |
$ |
69.92 |
|
|
$ |
73.58 |
|
|
$ |
81.71 |
|
Delivered Logs |
|
West |
|
1,445 |
|
|
|
1,452 |
|
|
|
1,674 |
|
Third Party Sales |
|
South |
|
4,266 |
|
|
|
4,089 |
|
|
|
4,386 |
|
Volumes (tons, thousands) |
|
North |
|
179 |
|
|
|
175 |
|
|
|
204 |
|
Fee Harvest Volumes |
|
West |
|
2,079 |
|
|
|
2,214 |
|
|
|
2,245 |
|
(tons, thousands) |
|
South |
|
6,169 |
|
|
|
5,990 |
|
|
|
6,432 |
|
|
|
North |
|
259 |
|
|
|
239 |
|
|
|
285 |
|
(4) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.
Page 5 of 8
Weyerhaeuser Company |
Real Estate, Energy & Natural Resources Segment |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Net sales |
|
$ |
77 |
|
|
$ |
107 |
|
|
$ |
101 |
|
Costs of sales |
|
|
21 |
|
|
|
41 |
|
|
|
41 |
|
Gross margin |
|
|
56 |
|
|
|
66 |
|
|
|
60 |
|
General and administrative expenses |
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
Operating income and Net contribution to earnings |
|
$ |
50 |
|
|
$ |
60 |
|
|
$ |
53 |
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Operating income |
|
$ |
50 |
|
|
$ |
60 |
|
|
$ |
53 |
|
Depreciation, depletion and amortization |
|
|
4 |
|
|
|
3 |
|
|
|
3 |
|
Basis of real estate sold |
|
|
13 |
|
|
|
31 |
|
|
|
33 |
|
Adjusted EBITDA(1) |
|
$ |
67 |
|
|
$ |
94 |
|
|
$ |
89 |
|
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Selected Segment Items
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Cash spent for capital expenditures |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Segment Statistics
|
|
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Net Sales |
Real Estate |
|
$ |
39 |
|
|
$ |
83 |
|
|
$ |
72 |
|
(millions) |
Energy and Natural Resources |
|
|
38 |
|
|
|
24 |
|
|
|
29 |
|
|
Total |
|
$ |
77 |
|
|
$ |
107 |
|
|
$ |
101 |
|
Acres Sold |
Real Estate |
|
|
7,187 |
|
|
|
19,774 |
|
|
|
20,753 |
|
Price per Acre |
Real Estate |
|
$ |
4,202 |
|
|
$ |
3,629 |
|
|
$ |
3,241 |
|
Basis as a Percent of |
Real Estate |
|
|
33 |
% |
|
|
37 |
% |
|
|
46 |
% |
Page 6 of 8
Weyerhaeuser Company |
Wood Products Segment |
Q1.2024 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Net sales |
|
$ |
1,302 |
|
|
$ |
1,302 |
|
|
$ |
1,318 |
|
Costs of sales |
|
|
1,127 |
|
|
|
1,107 |
|
|
|
1,159 |
|
Gross margin |
|
|
175 |
|
|
|
195 |
|
|
|
159 |
|
Selling expenses |
|
|
21 |
|
|
|
21 |
|
|
|
22 |
|
General and administrative expenses |
|
|
38 |
|
|
|
40 |
|
|
|
36 |
|
Other operating (income) costs, net |
|
|
(3 |
) |
|
|
6 |
|
|
|
6 |
|
Operating income and Net contribution to earnings |
|
$ |
119 |
|
|
$ |
128 |
|
|
$ |
95 |
|
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Operating income |
|
$ |
119 |
|
|
$ |
128 |
|
|
$ |
95 |
|
Depreciation, depletion and amortization |
|
|
54 |
|
|
|
56 |
|
|
|
53 |
|
Special items |
|
|
(14 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA(1) |
|
$ |
159 |
|
|
$ |
184 |
|
|
$ |
148 |
|
(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 |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Insurance recovery |
|
$ |
(14 |
) |
|
$ |
— |
|
|
$ |
— |
|
Selected Segment Items
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Total decrease (increase) in working capital(2) |
|
$ |
61 |
|
|
$ |
(174 |
) |
|
$ |
(127 |
) |
Cash spent for capital expenditures |
|
$ |
(155 |
) |
|
$ |
(42 |
) |
|
$ |
(43 |
) |
(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 |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
||||
Structural Lumber |
Third party net sales |
|
$ |
465 |
|
|
$ |
464 |
|
|
$ |
515 |
|
(volumes presented |
Third party sales realizations |
|
$ |
413 |
|
|
$ |
429 |
|
|
$ |
450 |
|
in board feet) |
Third party sales volumes(3) |
|
|
1,125 |
|
|
|
1,080 |
|
|
|
1,144 |
|
|
Production volumes |
|
|
1,091 |
|
|
|
1,085 |
|
|
|
1,143 |
|
Oriented Strand |
Third party net sales |
|
$ |
237 |
|
|
$ |
255 |
|
|
$ |
208 |
|
Board |
Third party sales realizations |
|
$ |
344 |
|
|
$ |
359 |
|
|
$ |
269 |
|
(volumes presented |
Third party sales volumes(3) |
|
|
688 |
|
|
|
710 |
|
|
|
773 |
|
in square feet 3/8") |
Production volumes |
|
|
721 |
|
|
|
735 |
|
|
|
761 |
|
Engineered Solid |
Third party net sales |
|
$ |
183 |
|
|
$ |
177 |
|
|
$ |
169 |
|
Section |
Third party sales realizations |
|
$ |
3,385 |
|
|
$ |
3,212 |
|
|
$ |
3,643 |
|
(volumes presented |
Third party sales volumes(3) |
|
|
5.4 |
|
|
|
5.4 |
|
|
|
4.7 |
|
in cubic feet) |
Production volumes |
|
|
5.8 |
|
|
|
5.7 |
|
|
|
4.6 |
|
Engineered |
Third party net sales |
|
$ |
112 |
|
|
$ |
99 |
|
|
$ |
87 |
|
I-joists |
Third party sales realizations |
|
$ |
2,766 |
|
|
$ |
2,648 |
|
|
$ |
3,171 |
|
(volumes presented |
Third party sales volumes(3) |
|
|
41 |
|
|
|
37 |
|
|
|
27 |
|
in lineal feet) |
Production volumes |
|
|
42 |
|
|
|
43 |
|
|
|
25 |
|
Softwood Plywood |
Third party net sales |
|
$ |
39 |
|
|
$ |
41 |
|
|
$ |
41 |
|
(volumes presented |
Third party sales realizations |
|
$ |
495 |
|
|
$ |
508 |
|
|
$ |
490 |
|
in square feet 3/8") |
Third party sales volumes(3) |
|
|
79 |
|
|
|
81 |
|
|
|
83 |
|
|
Production volumes |
|
|
75 |
|
|
|
72 |
|
|
|
74 |
|
Medium Density |
Third party net sales |
|
$ |
35 |
|
|
$ |
39 |
|
|
$ |
38 |
|
Fiberboard |
Third party sales realizations |
|
$ |
1,191 |
|
|
$ |
1,183 |
|
|
$ |
1,314 |
|
(volumes presented |
Third party sales volumes(3) |
|
|
29 |
|
|
|
33 |
|
|
|
29 |
|
in square feet 3/4") |
Production volumes |
|
|
31 |
|
|
|
34 |
|
|
|
34 |
|
(3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.
Page 7 of 8
Weyerhaeuser Company |
Unallocated Items |
Q1.2024 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 and interest income and other.
Net Charge to Earnings
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Unallocated corporate function and variable compensation expense |
|
$ |
(35 |
) |
|
$ |
(38 |
) |
|
$ |
(27 |
) |
Liability classified share-based compensation |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
— |
|
Foreign exchange loss |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Elimination of intersegment profit in inventory and LIFO |
|
|
3 |
|
|
|
(6 |
) |
|
|
9 |
|
Other, net |
|
|
(43 |
) |
|
|
(26 |
) |
|
|
(13 |
) |
Operating loss |
|
|
(77 |
) |
|
|
(72 |
) |
|
|
(32 |
) |
Non-operating pension and other post-employment benefit costs |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
(9 |
) |
Interest income and other |
|
|
22 |
|
|
|
16 |
|
|
|
12 |
|
Net charge to earnings |
|
$ |
(67 |
) |
|
$ |
(67 |
) |
|
$ |
(29 |
) |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Operating loss |
|
$ |
(77 |
) |
|
$ |
(72 |
) |
|
$ |
(32 |
) |
Depreciation, depletion and amortization |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Special items |
|
|
27 |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA(1) |
|
$ |
(48 |
) |
|
$ |
(70 |
) |
|
$ |
(30 |
) |
(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 |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Legal expense |
|
|
27 |
|
|
|
— |
|
|
|
— |
|
Special items included in operating loss and net charge to earnings |
|
$ |
27 |
|
|
$ |
— |
|
|
$ |
— |
|
Unallocated Selected Items
in millions |
|
Q4.2023 |
|
|
Q1.2024 |
|
|
Q1.2023 |
|
|||
Cash spent for capital expenditures |
|
$ |
(4 |
) |
|
$ |
(6 |
) |
|
$ |
(2 |
) |
Page 8 of 8