Q1 2004 Earnings Presentation: View Supporting Slides Only

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Q1 2004 Earnings Presentation: View Supporting Slides Only

  1. 1. Earnings Release First Quarter — 2004 Weyerhaeuser Company April 23, 2004 DTP/3065 2004 Q1.ppt • 4/21/2004 • 1
  2. 2. Forward-Looking Statement Some information included in the following presentations 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. Some of these forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “may,” “will,” “believes,” “should,” “approximately,” anticipates,” “estimates,” “plans,” “continuing” and “maintaining” and the negative or other variations of those terms or comparable terminology or by discussions of strategy, plans or intentions. In particular, some of these forward-looking statements deal with expectations regarding improvement in our pulp, paper and containerboard markets, strong order files, transportation disruptions, higher export and domestic log sales volumes and seasonally higher fee harvest in the second quarter 2004, increased demand and pricing for wood products in second quarter 2004, profitability, price increases and stable demand for pulp and paper in the second quarter 2004, greater demand for boxes in second quarter 2004, increasing prices, shipments and OCC costs in the containerboard markets; continuing strong housing demands, absence of acreage sales in the real estate markets during second quarter 2004, increasing productivity in the manufacturing system, management of asset base, the company’s markets in the second quarter 2004; and earnings and performance of the company’s business segments during the second quarter 2004. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts; market demand for the company’s products, which may be tied to the relative strength of various U.S. business segments; energy prices; raw material prices; transportation disruptions; performance of the company’s manufacturing operations; the successful execution of internal performance plans; the level of competition from domestic and foreign producers; the effect of forestry, land use, environmental and other governmental regulations; fires, floods and other natural disasters; and legal proceedings. The company is also a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan, and by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Euro and the Canadian dollar, and restrictions on international trade or tariffs imposed on imports, including the countervailing and dumping duties imposed on the company's softwood lumber shipments from Canada to the United States. These and other factors could cause or contribute to actual results differing materially from such forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward looking statements will occur, or if any of them occurs, what effect they will have on the company’s results of operations or financial condition. Additional information on risks, assumptions and uncertainties that could cause actual results to vary are set forth in the company’s filings with the Securities and Exchange Commission. DTP/3065 2004 Q1.ppt • 4/21/2004 • 2
  3. 3. Statements Relating to Non-GAAP Financial Measures During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is available on the company’s website at www.weyerhaeuser.com DTP/3065 2004 Q1.ppt • 4/21/2004 • 3
  4. 4. Earnings Summary $ in Millions except EPS 2003 2004 Q4 Q1 Operating Earnings before Special Items Timberlands $ 125 $ 159 Wood Products 128 185 Pulp & Paper (29) (22) Containerboard, Packaging & Recycling 32 28 Real Estate & Related Assets 109 120 Corporate and Other (12) (64) Total Operating Earnings before Special Items $ 353 $ 406 Special Items (17) (31) Total Operating Earnings $ 336 $ 375 Interest Expense, net (197) (192) Income Taxes (47) (62) Net Income $ 92 $ 121 EPS $ 0.41 $ 0.54 EPS before Special Items $ 0.47 $ 0.62 DTP/3065 2004 Q1.ppt • 4/21/2004 • 4
  5. 5. EPS Before Special Items A reconciliation to GAAP EPS is available at www.weyerhaeuser.com $0.80 $0.65 $0.62 $0.60 $0.47 $0.43 $0.40 $0.19 $0.20 $0.00 Q1 Q2 Q3 Q4 Q1 2003 2004 DTP/3065 2004 Q1.ppt • 4/21/2004 • 5
  6. 6. Earnings per Share Reconciliation 2003 2004 Q1 Q2 Q3 Q4 Q1 Earnings per Share before Special Items $ 0.19 $ 0.43 $ 0.65 $ 0.47 $ .62 Integration and Restructuring (0.08) (0.08) (0.07) (0.08) (0.04) Charges for Closure of Facilities (0.07) (0.08) (0.14) (0.14) Gains (Loss) on Sale of Assets 0.43 0.18 0.10 Litigation Charges (0.23) 0.03 (0.07) (0.02) (0.14) Termination of MB Pension Plans (0.02) Effect of Change in Acctg Principle (0.05) Earnings per Share (GAAP) $ (0.24) $ 0.71 $ 0.37 $ 0.41 $ .54 DTP/3065 2004 Q1.ppt • 4/21/2004 • 6
  7. 7. Earnings per Share Comparison 2003 Q4 vs. 2004 Q1 $ per Share Before Special Items* $0.80 .24 .01 .62 $0.60 (.10) .01 .47 (.01) $0.40 $0.20 $0.00 2003 Q4 Price/Volume Raw Material Mfg. Costs F/X & Other Interest 2004 Q1 Before Special Before Special Expense Items Items *A reconciliation before Special Items to GAAP can be found on www.weyerhaeuser.com DTP/3065 2004 Q1.ppt • 4/21/2004 • 7
  8. 8. 2004 Q1 Debt Reconciliation $ in Millions $11,800 $21 $11,631 $90 $11,597 $11,600 $90 $498 $11,400 ($121) $11,200 ($325) $11,000 ($219) $10,800 $10,600 $10,400 $10,200 $10,000 Beginning Net DD&A Other Working Capital Dividends Other Ending Debt Earnings Sources Capital Spending Uses Debt 12/28/03 3/28/04 Note: Weyerhaeuser Company with WRECO treated as equity investment. DTP/3065 2004 Q1.ppt • 4/21/2004 • 8
  9. 9. First Quarter 2004 Highlights Productivity improvements are falling to the bottom line Prices are improving in all of our businesses Capital spending discipline continues There is active interest in the sale of our non-strategic Georgia timberlands We continue to be focused on debt reduction and remain on track to meet our debt reduction goals DTP/3065 2004 Q1.ppt • 4/21/2004 • 9
  10. 10. In Conclusion Debt reduction and productivity improvement remain our top priorities We will continue to work closely with customers to meet their needs We will continue to focus on increasing our return on assets DTP/3065 2004 Q1.ppt • 4/21/2004 • 10

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