Loading...
•
Sep 30, 2021
Weyerhaeuser Q3 2021 Earnings Report
Weyerhaeuser reported strong results across each of its businesses despite various challenges.
Key Takeaways
Weyerhaeuser reported third quarter net earnings of $482 million, or 64 cents per diluted share, on net sales of $2.3 billion. Adjusted EBITDA for the third quarter of 2021 was $746 million.
Achieved net earnings of $482 million, or $0.64 per diluted share
Generated $746 million of Adjusted EBITDA
Year to date, generated more than $3.4 billion of Adjusted EBITDA and $2.4 billion of Adjusted Funds Available for Distribution
Expect record cash flow generation to result in a significant supplemental dividend payment to shareholders in the first quarter of 2022
Weyerhaeuser
Weyerhaeuser
Weyerhaeuser Revenue by Segment
Revenue by Segment
Timberlands Revenue
CapyFin.comReal Estate & ENR Revenue
CapyFin.comWood Products Revenue
CapyFin.com Forward Guidance
Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be higher than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board.
Positive Outlook
- In the West, the company expects moderately higher fee harvest volumes and lower per unit log and haul costs, as salvage-related harvest will decrease.
- In the South, the company expects slightly higher fee harvest volumes due to improving weather conditions as well as slightly higher sales realizations as mills rebuild from lower than normal inventory levels.
- The company expects higher sales volumes, primarily for oriented strand board, as well as improved manufacturing costs due to lower planned maintenance downtime.
- Raw material costs are expected to be lower, primarily for oriented strand board webstock.
- Domestic sales realizations are expected to be moderately lower compared to the third quarter.
Challenges Ahead
- In the West, domestic sales realizations are expected to be moderately lower compared to the third quarter.
- In the South, the company expects slightly higher per unit log and haul costs as well as moderately higher forestry and road costs.
- Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be significantly lower than the third quarter due to the timing of transactions for Real Estate, Energy & Natural Resources.
- The company still expects full year 2021 Adjusted EBITDA will be approximately $290 million, although basis as a percentage of real estate sales is now expected to be 25 to 30 percent for the full year.
- Sales realizations for lumber and oriented strand board decreased 52 percent and 24 percent, respectively, compared with second quarter averages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income