Dec 31, 2022

Weyerhaeuser Q4 2022 Earnings Report

Weyerhaeuser's Q4 2022 financial performance was reported, revealing a mixed outcome with decreased net earnings and sales compared to the previous year, but strategic actions and strong execution amidst market headwinds.

Key Takeaways

Weyerhaeuser reported Q4 net earnings of $11 million, or $0.02 per diluted share, on net sales of $1.8 billion. Excluding special items, net earnings were $171 million, or $0.24 per diluted share. Adjusted EBITDA was $369 million. The company completed the purchase of a group annuity contract, transferring approximately $420 million of Canadian pension liabilities.

Q4 net earnings were $11 million, or $0.02 per diluted share.

Net sales for Q4 reached $1.8 billion.

Adjusted EBITDA for Q4 was $369 million.

A supplemental dividend of $0.90 per share was declared.

Total Revenue
$1.82B
Previous year: $2.21B
-17.4%
EPS
$0.24
Previous year: $0.49
-51.0%
Gross Profit
$389M
Previous year: $705M
-44.8%
Cash and Equivalents
$1.58B
Previous year: $1.88B
-15.9%
Total Assets
$17.3B
Previous year: $17.7B
-1.8%

Weyerhaeuser

Weyerhaeuser

Weyerhaeuser Revenue by Segment

Forward Guidance

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.

Positive Outlook

  • In the West, the company expects significantly higher fee harvest volumes.
  • For lumber, the company expects higher sales volumes and moderately lower log costs.
  • For lumber, the company expects significantly lower unit manufacturing costs.
  • For oriented strand board, the company anticipates moderately higher sales volumes and moderately lower fiber costs.
  • For oriented strand board, the company anticipates slightly lower unit manufacturing costs.

Challenges Ahead

  • In the West, the company expects significantly lower domestic sales realizations.
  • In the South, the company expects fee harvest volumes and sales realizations to be slightly lower.
  • Sales realizations for engineered wood products are expected to be significantly lower.
  • For distribution, the company anticipates lower margins for all products.
  • The guidance excludes the effect of changes in average sales realizations for lumber and oriented strand board.

Revenue & Expenses

Visualization of income flow from segment revenue to net income