PR Newswire | Oct 30, 2020 03:06AM EDT

10/30 02:05 CDT

Weyerhaeuser Reports Third Quarter Results- Achieved net earnings of $283 million, or $0.38 per diluted share- Increased Adjusted EBITDA by 93 percent compared with second quarter 2020- Highest Wood Products Adjusted EBITDA on record- Reinitiates quarterly cash dividend and implements "base plus variable supplemental" dividend framework- Declares quarterly base dividend of $0.17 per share SEATTLE, Oct. 30, 2020

SEATTLE, Oct. 30, 2020 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $283 million, or 38 cents per diluted share, on net sales of $2.1 billion. This compares with net earnings of $99 million, or 13 cents per diluted share, on net sales of $1.7 billion for the same period last year.

View our earnings release and financial statements in a printer-friendly PDF.

Third quarter results include after-tax charges of $103 million for special items, primarily a non-cash timber casualty loss associated with Oregon fire damage. Excluding special items, the company reported third quarter net earnings of $386 million, or 52 cents per diluted share. This compares with net earnings before special items of $59 million for the same period last year and $77 million for the second quarter of 2020.

Adjusted EBITDA for the third quarter of 2020 was $745 million compared with $308 million for the same period last year and $386 million for the second quarter of 2020.

"In the third quarter, each of our businesses delivered outstanding operational and financial results despite disruptions from severe weather, unprecedented forest fires and the ongoing COVID-19 pandemic," said Devin W. Stockfish, president and chief executive officer. "We achieved record Wood Products Adjusted EBITDA, surpassing the previous high by nearly 60 percent. In addition, we redeemed $325 million of debt maturities and announced transactions to strategically upgrade our Oregon timberland holdings."

"Entering the fourth quarter, Weyerhaeuser is operating from a strong financial position, and we are increasingly confident that the recent strength in U.S. housing will continue notwithstanding ongoing macroeconomic headwinds," Stockfish continued. "Today, we are reinitiating a quarterly dividend and implementing a new dividend framework that will enhance our ability to return meaningful and appropriate amounts of cash to our shareholders across a variety of market conditions. This framework positions Weyerhaeuser to deliver superior long-term value creation through our unmatched portfolio, industry-leading performance and disciplined, prudent capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2020 2020 2019

(millions, except per share data) Q2 Q3 Q3

Net sales $1,631 $2,110 $1,671

Net earnings $72 $283 $99

Net earnings per diluted share $0.10 $0.38 $0.13

Weighted average shares outstanding, diluted 747 748 747

Net earnings before special items^(1)(2) $77 $386 $59

Net earnings per diluted share before special items^(1) $0.11 $0.52 $0.08

Adjusted EBITDA^(1) $386 $745 $308



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, (1)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.

Third quarter 2020 after-tax special items include a $23 million charge (2)related to the early extinguishment of debt and an $80 million non-cash timber casualty loss. Special items for other periods presented are included in the reconciliation tables following this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q2 Q3 Change

Net sales $480 $452 ($28)

Net contribution (charge) to pretax earnings $75 ($11) ($86)

Pretax charge for special items $- $80 $80

Net contribution to pretax earnings before special items $75 $69 ($6)

Adjusted EBITDA $140 $130 ($10)

Q3 2020 Performance -In the West, fee harvest volumes decreased 15 percent compared with the second quarter as wildfire conditions restricted harvest activity. This was largely offset by higher average sales realizations for domestic logs. Domestic log sales volumes decreased modestly compared with the second quarter, and export log sales volumes were significantly lower as the company shifted volume to the domestic market to take advantage of higher margin opportunities. In the South, fee harvest volumes decreased 5 percent as the company continued to implement the previously announced reduction in its 2020 fee harvest volumes. Average log sales realizations were comparable to the second quarter and forestry spending increased seasonally.

Third quarter special items consist of an $80 million timber casualty loss related to the Oregon wildfires. This non-cash charge represents the estimated book value of timber and related assets that will not be able to be salvaged based on currently available information.

Q4 2020 Outlook - Weyerhaeuser expects fourth quarter earnings and Adjusted EBITDA will be higher than the third quarter. In the West, the company anticipates higher average sales realizations for domestic and Japanese export logs and improved log sales volumes as Oregon harvest activity resumes and salvage operations begin. In the South, the company expects slightly higher forestry expense and slightly lower average log sales realizations due to mix.

In September 2020, the company announced an agreement to sell 149,000 acres of southern Oregon timberlands and a separate agreement to purchase 85,000 acres of mid-coastal Oregon timberlands. The two agreements are subject to customary closing conditions and are both expected to close in fourth quarter 2020.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q2 Q3 Change

Net sales $65 $69 $4

Net contribution to pretax earnings $19 $17 ($2)

Adjusted EBITDA $57 $60 $3

Q3 2020 Performance -Real estate sales improved slightly compared with the second quarter as an increase in the number of acres sold was largely offset by a lower average price per acre due to mix. Adjusted EBITDA increased, but earnings decreased slightly due to a higher average land basis on the mix of properties sold. Energy & Natural Resources royalties increased due to seasonally higher production of construction materials.

Q4 2020 Outlook -Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be lower than the third quarter due to the timing of real estate transactions and average land basis will decrease due to the mix of properties sold. The company continues to expect full year 2020 Adjusted EBITDA for the segment will be approximately $235 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q2 Q3 Change

Net sales $1,207 $1,696 $489

Net contribution to pretax earnings $159 $566 $407

Pretax benefit for special items ($8) $- $8

Net contribution to pretax earnings before special items $151 $566 $415

Adjusted EBITDA $198 $615 $417

Q3 2020 Performance -Benchmark prices for lumber and oriented strand board reached record levels in the third quarter, and average sales realizations for lumber and oriented strand board improved 54 percent and 65 percent, respectively, compared with second quarter averages. Sales volumes for engineered wood products also increased significantly. These improvements were partially offset by higher raw material costs.

Q4 2020 Outlook - Excluding the effect of changes in average sales realizations, the company expects fourth quarter earnings and Adjusted EBITDA will be significantly lower than the third quarter, though both are expected to exceed previous record levels attained in 2018. The company expects a modest seasonal reduction in sales volumes, higher Western and Canadian log costs, and lower operating rates for some product lines due to planned maintenance outages.

UNALLOCATED

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q2 Q3 Change

Net charge to pretax earnings ($18) ($69) ($51)

Adjusted EBITDA ($9) ($60) ($51)

Q3 2020 Performance -Third quarter results include a charge from elimination of intersegment profit in inventory and LIFO compared with a benefit in the second quarter. Unallocated corporate function and variable compensation expense also increased, primarily due to a year-to-date adjustment for performance-based incentive compensation.

REINITIATING COMMON DIVIDEND

On May 1, 2020, Weyerhaeuser's board of directors temporarily suspended the company's quarterly cash dividend to preserve financial flexibility in light of significant uncertainty regarding the duration and magnitude of the effects of the COVID-19 pandemic on the company's business conditions.

Since May, the board has continued to regularly review opportunities to reinitiate a quarterly cash dividend, taking into account the company's cash flow, liquidity, customer demand, market conditions, the broader macroeconomic environment and other factors, with the desire for a sustainable dividend framework that will drive long-term shareholder value across market cycles.

Over the past several months, demand for housing and wood products has proven resilient, and the company is increasingly confident that U.S. housing activity will remain strong even as the pandemic and macroeconomic headwinds continue. Weyerhaeuser has also meaningfully strengthened its financial position, having reduced gross debt by over $400 million on a year-to-date basis, announced the fourth quarter 2020 redemption of $500 million of additional maturities, and attained its target leverage ratio. The company maintains ample liquidity, including $787 million in cash and cash equivalents and $1.5 billion of undrawn revolver capacity as of September 30, 2020.

Based upon its most recent review of these and other factors, Weyerhaeuser's board of directors is reinitiating a quarterly cash dividend. The board is also implementing a new dividend framework to enhance Weyerhaeuser's ability to return meaningful and appropriate amounts of cash to shareholders across a variety of market conditions.

This new dividend framework includes two components:

* Sustainable quarterly base cash dividend: This core mechanism for returning cash to shareholders is supported by cash flows from the company's Timberlands and Real Estate, Energy and Natural Resources segments and is positioned to grow sustainably over time. For the fourth quarter 2020, the board of directors has declared a quarterly base cash dividend of $0.17 per share. * Variable supplemental dividend: The company expects to supplement its quarterly base dividend with an additional return of cash, as appropriate, to achieve a targeted total annual return to shareholders of 75 to 80 percent of annual Adjusted Funds Available for Distribution(1). Weyerhaeuser expects this will occur primarily through a supplemental cash dividend. In certain circumstances, the company may also utilize opportunistic share repurchase. In general, the company expects a supplemental dividend will be declared and paid annually, with the first payment occurring in first quarter 2022.

Stockfish concluded, "This new dividend framework supports our commitment to returning a significant portion of free cash flow to shareholders, while ensuring that our return of cash is sustainable and appropriate across market cycles. Going forward, Weyerhaeuser remains focused on disciplined, prudent capital allocation to sustainably grow our base dividend and drive superior long-term value for shareholders."

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 2019, we generated $6.6 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. 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 October 30, 2020 to discuss third quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 30, 2020.

To join the conference call from within North America, dial 877-407-0792 (access code: 13710359) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13710359). Replays will be available for two weeks at 844-512-2921 (access code: 13710359) from within North America, and at 412-317-6671 (access code: 13710359) 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, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, with respect to future quarterly and supplemental cash dividends and dividend framework, future share repurchases, the closing of previously announced Oregon timberland transactions and our outlook and expectations concerning the following: the future strength of U.S. housing activity; the company's liquidity position; earnings and Adjusted EBITDA for each of our businesses; log sales realizations and sales volumes; forestry expense; log costs and operating rates for our wood products business and sales volumes across our wood products lines. Forward-looking statements are generally identified by words such as "believe," "expect," "anticipate," "estimate," "future," "planned," "may," "will," "maintain," and similar words and expressions. Forward-looking statements are based on our current expectations and assumptions. 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, housing starts, general availability 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; * our operational excellence initiatives; * 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, 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 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 charges related to casualty losses; * changes in accounting principles; and * other risks and uncertainties identified in our 2019 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 quarter ended June 30, 2020:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDA by Segment:

Net earnings $ 72

Interest expense, net of capitalized interest^(1) 103

Income taxes 60

Net contribution (charge) to earnings $ 75 $ 19 $ 159 $ (18) $ 235

Non-operating pension and other postretirement - - - 10 10benefit costs

Interest income and other - - - (2) (2)

Operating income (loss) 75 19 159 (10) 243

Depreciation, depletion and amortization 65 4 47 1 117

Basis of real estate sold - 34 - - 34

Special items included in operating income (loss)^(2) - - (8) - (8)

Adjusted EBITDA $ 140 $ 57 $ 198 $ (9) $ 386



Interest expense, net of capitalized interest includes a pretax special (1)item consisting of an $11 million net charge related to the early extinguishment of $569 million of 4.7 percent notes due March 2021.

(2)Operating income (loss) includes a pretax special item consisting of an $8 million product remediation insurance recovery.

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2020:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDA by Segment:

Net earnings $ 283

Interest expense, net of capitalized interest^(1) 111

Income taxes 109

Net contribution (charge) to earnings $ (11) $ 17 $ 566 $ (69) $ 503

Non-operating pension and other postretirement - - - 9 9benefit costs

Interest income and other - - - (2) (2)

Operating income (loss) (11) 17 566 (62) 510

Depreciation, depletion and amortization 61 3 49 2 115

Basis of real estate sold - 40 - - 40

Special items included in operating income (loss)^(2) 80 - - - 80

Adjusted EBITDA $ 130 $ 60 $ 615 $ (60) $ 745



Interest expense, net of capitalized interest includes a pretax special (1)item consisting of a $23 million charge related to the early extinguishment of $325 million of 3.25 percent notes due March 2023.

(2)Operating income (loss) includes a pretax special item consisting of an $80 million timber casualty loss.

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2019:

Real Estate Wood Unallocated(millions) Timberlands Total & ENR Products Items

Adjusted EBITDA by Segment:

Net earnings $ 99

Interest expense, net of capitalized interest 91

Income taxes 3

Net contribution (charge) to earnings $ 72 $ 32 $ 143 $ (54) $ 193

Non-operating pension and other postretirement - - - 15 15benefit costs

Interest income and other - - - (6) (6)

Operating income (loss) 72 32 143 (45) 202

Depreciation, depletion and amortization 82 4 48 1 135

Basis of real estate sold - 24 - - 24

Special items included in operating income (loss)^(1) - - (68) 15 (53)

Adjusted EBITDA $ 154 $ 60 $ 123 $ (29) $ 308



Operating income (loss) includes pretax special items consisting of a $68(1)million product remediation insurance recovery and a $15 million legal charge.

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:

2020 2020 2019

(millions) Q2 Q3 Q3

Net earnings $72 $283 $99

Early extinguishment of debt charges 11 23 -

Legal charge - - 11

Product remediation recoveries (6) - (51)

Timber casualty loss - 80 -

Net earnings before special items $77 $386 $59

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

2020 2020 2019

Q2 Q3 Q3

Net earnings per diluted share $0.10 $0.38 $0.13

Early extinguishment of debt charges 0.02 0.03 -

Legal charge - - 0.02

Product remediation recoveries (0.01) - (0.07)

Timber casualty loss - 0.11 -

Net earnings per diluted share before special items $0.11 $0.52 $0.08

Exhibit 99.2

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept Sept Sept Septin millions 30, 30, 30, 30, 2020 2020 2020 2019 2020 2019

Net sales $ 1,728 $ 1,631 $ 2,110 $ 1,671 $ 5,469 $ 5,006

Costs of sales 1,382 1,283 1,390 1,399 4,055 4,111

Gross margin 346 348 720 272 1,414 895

Selling expenses 22 18 22 20 62 62

General andadministrative 74 84 96 85 254 254expenses

Productremediation - (8) - (68) (8) (68)recoveries

Other operating 10 11 92 33 113 85costs, net

Operating income 240 243 510 202 993 562

Non-operatingpension andother (9) (10) (9) (15) (28) (495)postretirementbenefit costs

Interest income 1 2 2 6 5 22and other

Interestexpense, net of (85) (103) (111) (91) (299) (289)capitalizedinterest

Earnings (loss)before income 147 132 392 102 671 (200)taxes

Income taxes 3 (60) (109) (3) (166) 138

Net earnings $ 150 $ 72 $ 283 $ 99 $ 505 $ (62)(loss)

Per Share Information

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30,

2020 2020 2020 2019 2020 2019

Earnings (loss) per share, basic and diluted $ 0.20 $ 0.10 $ 0.38 $ 0.13 $ 0.68 $ (0.08)

Dividends paid per common share $ 0.34 $ - $ - $ 0.34 $ 0.34 $ 1.02

Weighted average shares outstanding (in thousands):

Basic 746,534 746,896 746,996 745,626 746,809 745,901

Diluted 747,155 746,984 748,450 746,514 747,530 745,901

Common shares outstanding at end of period (in 746,206 746,251 746,398 745,071 746,398 745,071thousands)

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization (Adjusted EBITDA)

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept Sept Sept Septin millions 30, 30, 30, 30, 2020 2020 2020 2019 2020 2019

Net earnings (loss) $ 150 $ 72 $ 283 $ 99 $ 505 $ (62)

Non-operatingpension and other 9 10 9 15 28 495postretirementbenefit costs

Interest income and (1) (2) (2) (6) (5) (22)other

Interest expense,net of capitalized 85 103 111 91 299 289interest

Income taxes (3) 60 109 3 166 (138)

Operating income 240 243 510 202 993 562

Depreciation,depletion and 123 117 115 135 355 382amortization

Basis of real 62 34 40 24 136 105estate sold

Special itemsincluded in (12) (8) 80 (53) 60 (33)operating income

Adjusted EBITDA^(1) $ 413 $ 386 $ 745 $ 308 $ 1,544 $ 1,016

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(1) 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.

Total Company Statistics

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept Sept Sept Septin millions 30, 30, 30, 30, 2020 2020 2020 2019 2020 2019

Net earnings (loss) $ 150 $ 72 $ 283 $ 99 $ 505 $ (62)

Early extinguishment - 11 23 - 34 9of debt charges^(1)

Legal charges (12) - - 11 (12) 26(benefits)

Pension settlement - - - - - 340charges

Product remediation - (6) - (51) (6) (51)recoveries

Timber casualty loss - - 80 - 80 -

Net earnings before $ 138 $ 77 $ 386 $ 59 $ 601 $ 262special items^(2)

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept Sept 30, Sept 30, Sept 30, 30, 2020 2020 2019 2020 2019 2020

Net earnings(loss) per $ 0.20 $ 0.10 $ 0.38 $ 0.13 $ 0.68 $ (0.08)diluted share

Earlyextinguishment - 0.02 0.03 - 0.05 0.01of debtcharges^(1)

Legal charges (0.02) - - 0.02 (0.02) 0.04(benefits)

Pensionsettlement - - - - - 0.46charges

Productremediation - (0.01) - (0.07) (0.01) (0.07)recoveries

Timber - - 0.11 - 0.11 -casualty loss

Net earningsper dilutedshare before $ 0.18 $ 0.11 $ 0.52 $ 0.08 $ 0.81 $ 0.36special items^(2)

We recorded pretax charges of $12 million ($9 million after-tax), $11^ million ($11 million after-tax) and $23 million ($23 million after-tax)(1) related to the early extinguishment of debt in first quarter 2019, second quarter 2020 and third quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

Net earnings before special items is a non-GAAP measure that management^ believes provides helpful context in understanding the company's earnings(2) 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 Year-to-Date

March 31, June 30, Sept Sept Sept Septin millions 30, 30, 30, 30, 2020 2020 2020 2019 2020 2019

Pension and postretirementcosts:

Pension and postretirement $ 10 $ 8 $ 9 $ 8 $ 27 $ 24service costs

Non-operating pension andother postretirement 9 10 9 15 28 495benefit costs

Total company pension and $ 19 $ 18 $ 18 $ 23 $ 55 $ 519postretirement costs

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

March June 30, September Decemberin millions 31, 30, 31, 2020 2020 2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 1,458 $ 643 $ 787 $ 139

Receivables, net 390 420 500 309

Receivables for taxes 24 48 48 98

Inventories 480 409 411 416

Assets held for sale - - 199 140

Prepaid expenses and other current 141 131 101 147assets

Current restricted financialinvestments held by variable - - - 362interest entities

Total current assets 2,493 1,651 2,046 1,611

Property and equipment, net 1,911 1,958 1,945 1,969

Construction in progress 153 110 119 130

Timber and timberlands at cost, 11,847 11,780 11,465 11,929less depletion

Minerals and mineral rights, less 278 275 271 281depletion

Deferred tax assets 147 65 44 72

Other assets 399 415 466 414

Total assets $ 17,228 $ 16,254 $ 16,356 $ 16,406

LIABILITIES AND EQUITY

Current liabilities:

Current maturities of long-term $ 577 $ - $ - $ -debt

Borrowings on line of credit 550 - - 230

Accounts payable 241 199 215 246

Accrued liabilities 448 525 617 530

Total current liabilities 1,816 724 832 1,006

Long-term debt, net 6,299 6,299 5,974 6,147

Deferred tax liabilities 10 18 27 6

Deferred pension and other 669 652 638 693postretirement benefits

Other liabilities 352 359 358 377

Total liabilities 9,146 8,052 7,829 8,229

Total equity 8,082 8,202 8,527 8,177

Total liabilities and equity $ 17,228 $ 16,254 $ 16,356 $ 16,406

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept Sept Sept Septin millions 30, 30, 30, 30, 2020 2020 2020 2019 2020 2019

Cash flows from operations:

Net earnings (loss) $ 150 $ 72 $ 283 $ 99 $ 505 $ (62)

Noncash charges (credits) to earnings (loss):

Depreciation, depletion and amortization 123 117 115 135 355 382

Basis of real estate sold 62 34 40 24 136 105

Deferred income taxes, net (82) 80 22 2 20 (164)

Pension and other postretirement benefits 19 18 18 23 55 519

Share-based compensation expense 7 8 7 7 22 23

Timber casualty loss - - 80 - 80 -

Change in:

Receivables, less allowances (82) (30) (80) 40 (192) (47)

Receivables and payables for taxes 79 (18) 42 7 103 (18)

Inventories (72) 74 - 30 2 (2)

Prepaid expenses and other current assets (2) 7 - 2 5 5

Accounts payable and accrued liabilities (91) 30 64 (58) 3 (13)

Pension and postretirement benefit (10) (6) (5) (9) (21) (36)contributions and payments

Other (15) 5 22 (10) 12 (18)

Net cash from operations $ 86 $ 391 $ 608 $ 292 $ 1,085 $ 674

Cash flows from investing activities:

Capital expenditures for property and $ (47) $ (55) $ (56) $ (87) $ (158) $ (199)equipment

Capital expenditures for timberlands (21) (11) (9) (11) (41) (42)reforestation

Proceeds from note receivable held by 362 - - - 362 253variable interest entities

Proceeds from sale of Montana timberlands 145 - - - 145 -

Other 2 1 - 1 3 20

Net cash from investing activities $ 441 $ (65) $ (65) $ (97) $ 311 $ 32

Cash flows from financing activities:

Cash dividends on common shares $ (254) $ - $ - $ (253) $ (254) $ (760)

Net proceeds from issuance of long-term debt 732 - - - 732 739

Payments on long-term debt - (588) (348) - (936) (512)

Proceeds from borrowings on line of credit 550 - - 490 550 875

Payments on line of credit (230) (550) - (190) (780) (860)

Payments on debt held by variable interest - - - (302) - (302)entities

Proceeds from exercise of stock options 6 - 3 4 9 8

Repurchases of common shares - - - - - (60)

Other (12) (3) (1) (3) (16) (15)

Net cash from financing activities $ 792 $ (1,141) $ (346) $ (254) $ (695) $ (887)

Net change in cash, cash equivalents and $ 1,319 $ (815) $ 197 $ (59) $ 701 $ (181)restricted cash

Cash, cash equivalents and restricted cash at 139 1,458 643 212 139 334beginning of period

Cash, cash equivalents and restricted cash at $ 1,458 $ 643 $ 840 $ 153 $ 840 $ 153end of period

Cash paid (received) during the period for:

Interest, net of amounts capitalized $ 108 $ 70 $ 100 $ 123 $ 278 $ 310

Income taxes, net of refunds $ - $ 1 $ 45 $ (5) $ 46 $ 46

Timberlands Segment

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Sales tounaffiliated $ 381 $ 359 $ 345 $ 398 $ 1,085 $ 1,230customers

Intersegment 122 121 107 125 350 381sales

Total net sales 503 480 452 523 1,435 1,611

Costs of sales 375 383 358 429 1,116 1,247

Gross margin 128 97 94 94 319 364

Selling expenses - 1 - - 1 1

General andadministrative 24 22 24 24 70 71expenses

Other operatingcosts (income), (1) (1) 81 (2) 79 (2)net

Operating income(loss) and Netcontribution $ 105 $ 75 $ (11) $ 72 $ 169 $ 294(charge) toearnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Operating income $ 105 $ 75 $ (11) $ 72 $ 169 $ 294(loss)

Depreciation,depletion and 68 65 61 82 194 228amortization

Special items - - 80 - 80 -

Adjusted EBITDA^ $ 173 $ 140 $ 130 $ 154 $ 443 $ 522(1)

^(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Segment Special Items Included in Net Contribution (Charge) to Earnings(Pretax)

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Timber casualty loss $ - $ - $ (80) $ - $ (80) $ -

Selected Segment Items

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Total decrease(increase) in $ (3) $ (2) $ 43 $ 2 $ 38 $ 24working capital^(2)

Cash spent forcapital $ (30) $ (21) $ (24) $ (28) $ (75) $ (79)expenditures

^(2) Represents the change in prepaid assets, accounts receivable, accountspayable, accrued liabilities and log inventory for the Timberlands and RealEstate & ENR segments combined.

Segment Statistics^(3)

Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Third Party Delivered logs:

Net Sales West $ 177 $ 179 $ 163 $ 172 $ 519 $ 571

(millions) South 150 145 141 168 436 483

North 17 7 13 24 37 70

Total delivered 344 331 317 364 992 1,124 logs

Stumpage and pay-as-cut 5 5 5 10 15 29 timber

Recreational and other 15 16 16 15 47 45 lease revenue

Other 17 7 7 9 31 32 revenue

Total $ 381 $ 359 $ 345 $ 398 $ 1,085 $ 1,230

Delivered Logs West $ 104.91 $ 104.90 $ 109.01 $ 99.07 $ 106.16 $ 103.50

Third Party Sales South $ 34.27 $ 33.68 $ 33.68 $ 35.03 $ 33.88 $ 35.27

Realizations (per ton) North $ 60.51 $ 59.82 $ 57.19 $ 57.35 $ 59.15 $ 59.37

Delivered Logs West 1,684 1,714 1,489 1,729 4,887 5,513

Third Party Sales South 4,365 4,307 4,185 4,795 12,857 13,694

Volumes (tons, thousands) North 284 113 234 429 631 1,186

Fee Harvest Volumes West 2,310 2,236 1,911 2,183 6,457 7,023

(tons, thousands) South 6,130 5,914 5,596 6,802 17,640 19,661

North 386 194 321 560 901 1,565

^(3) Western logs are primarily transacted in MBF but are converted to tonequivalents for external reporting purposes.

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Net sales $ 112 $ 65 $ 69 $ 69 $ 246 $ 268

Costs of sales 70 40 46 32 156 127

Gross margin 42 25 23 37 90 141

General andadministrative 6 6 6 6 18 20expenses

Other operating - - - (1) - (1)income, net

Operating incomeand Net $ 36 $ 19 $ 17 $ 32 $ 72 $ 122contribution toearnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Operating income $ 36 $ 19 $ 17 $ 32 $ 72 $ 122

Depreciation,depletion and 3 4 3 4 10 10amortization

Basis of real 62 34 40 24 136 105estate sold

Adjusted EBITDA^ $ 101 $ 57 $ 60 $ 60 $ 218 $ 237(1)

^(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Selected Segment Items

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Cash spent forcapital $ - $ - $ - $ - $ - $ -expenditures

Segment Statistics

Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Net Sales Real $ 95 $ 48 $ 49 $ 45 $ 192 $ 200 Estate

Energy(millions) and 17 17 20 24 54 68 Natural Resources

Total $ 112 $ 65 $ 69 $ 69 $ 246 $ 268

Acres Sold Real 44,974 31,337 34,917 18,057 111,228 103,922 Estate

Price per Real $ 1,992 $ 1,501 $ 1,381 $ 2,415 $ 1,662 $ 1,806Acre Estate

Basis as aPercent of Real 65 % 71 % 82 % 53 % 71 % 53 %Real EstateEstate NetSales

Wood Products Segment

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Net sales $ 1,235 $ 1,207 $ 1,696 $ 1,204 $ 4,138 $ 3,508

Costs of sales 1,040 997 1,075 1,067 3,112 3,104

Gross margin 195 210 621 137 1,026 404

Selling expenses 21 18 18 20 57 59

General andadministrative 36 33 33 35 102 104expenses

Productremediation - (8) - (68) (8) (68)recoveries

Other operating 4 8 4 7 16 16costs, net

Operating incomeand Net $ 134 $ 159 $ 566 $ 143 $ 859 $ 293contribution toearnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Operating income $ 134 $ 159 $ 566 $ 143 $ 859 $ 293

Depreciation,depletion and 50 47 49 48 146 141amortization

Special items - (8) - (68) (8) (68)

Adjusted EBITDA^ $ 184 $ 198 $ 615 $ 123 $ 997 $ 366(1)

^(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 Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Productremediation $ - $ 8 $ - $ 68 $ 8 $ 68recoveries

Selected Segment Items

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Total decrease(increase) in $ (186) $ 56 $ (68) $ 32 $ (198) $ (48)working capital^(2)

Cash spent forcapital $ (38) $ (45) $ (41) $ (65) $ (124) $ (148)expenditures

^(2) Represents the change in prepaid assets, accounts receivable, accountspayable, accrued liabilities and inventory for the Wood Products segment.

Segment Statistics

in millions, except for third Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019party sales realizations

Structural Lumber Third party $ 508 $ 538 $ 819 $ 487 $ 1,865 $ 1,426 net sales

(volumes Third partypresented sales $ 416 $ 438 $ 674 $ 389 $ 509 $ 390 realizations

Third partyin board feet) sales 1,222 1,225 1,216 1,253 3,663 3,660 volumes^(3)

Production 1,209 1,108 1,170 1,189 3,487 3,527 volumes

Oriented Strand Third party $ 190 $ 179 $ 290 $ 159 $ 659 $ 475 net sales

Third partyBoard sales $ 246 $ 240 $ 395 $ 214 $ 293 $ 217 realizations

(volumes Third partypresented sales 770 747 736 740 2,253 2,190 volumes^(3)

in square feet 3/ Production 777 742 759 747 2,278 2,2128") volumes

Engineered Solid Third party $ 127 $ 111 $ 135 $ 138 $ 373 $ 388 net sales

Third partySection sales $ 2,149 $ 2,151 $ 2,128 $ 2,188 $ 2,142 $ 2,206 realizations

(volumes Third partypresented sales 5.9 5.2 6.3 6.3 17.4 17.6 volumes^(3)

in cubic feet) Production 6.1 5.3 5.4 5.3 16.8 17.2 volumes

Engineered Third party $ 78 $ 70 $ 83 $ 90 $ 231 $ 246 net sales

Third partyI-joists sales $ 1,667 $ 1,645 $ 1,638 $ 1,665 $ 1,650 $ 1,676 realizations

(volumes Third partypresented sales 47 42 51 54 140 147 volumes^(3)

in lineal feet) Production 47 38 43 48 128 139 volumes

Softwood Plywood Third party $ 39 $ 34 $ 55 $ 42 $ 128 $ 130 net sales

(volumes Third partypresented sales $ 348 $ 356 $ 507 $ 346 $ 405 $ 369 realizations

in square feet 3/ Third party8") sales 113 95 107 121 315 351 volumes^(3)

Production 97 76 94 100 267 302 volumes

Medium Density Third party $ 44 $ 33 $ 47 $ 44 $ 124 $ 127 net sales

Third partyFiberboard sales $ 841 $ 825 $ 864 $ 831 $ 845 $ 836 realizations

(volumes Third partypresented sales 52 40 55 53 147 152 volumes^(3)

in square feet 3/ Production 56 35 57 47 148 1534") volumes

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

Unallocated Items

Weyerhaeuser Company

Q3.2020 Analyst Package

Preliminary results (unaudited)

Unallocated items are gains or charges not related to, or allocated to, anindividual operating segment. They include all or a portion of items such asshare-based compensation, pension and postretirement costs, elimination ofintersegment profit in inventory and LIFO, foreign exchange transaction gainsand losses, interest income and other as well as legacy obligations.

Net Charge to Earnings

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Unallocatedcorporatefunction and $ (19) $ (23) $ (36) $ (19) $ (78) $ (50)variablecompensationexpense

Liabilityclassified 10 (4) (5) (1) 1 (5)share-basedcompensation

Foreign exchange (8) 3 2 (1) (3) (2)gain (loss)

Elimination ofintersegmentprofit in (13) 18 (9) 6 (4) (4)inventory andLIFO

Other, net (5) (4) (14) (30) (23) (86)

Operating loss (35) (10) (62) (45) (107) (147)

Non-operatingpension and other (9) (10) (9) (15) (28) (495)postretirementbenefit costs

Interest income 1 2 2 6 5 22and other

Net charge to $ (43) $ (18) $ (69) $ (54) $ (130) $ (620)earnings

Adjusted Earnings before Interest, Tax, Depreciation, Depletion andAmortization^(1)

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Operating loss $ (35) $ (10) $ (62) $ (45) $ (107) $ (147)

Depreciation,depletion and 2 1 2 1 5 3amortization

Special items (12) - - 15 (12) 35

Adjusted EBITDA^ $ (45) $ (9) $ (60) $ (29) $ (114) $ (109)(1)

^(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 Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Legal benefits $ 12 $ - $ - $ (15) $ 12 $ (35)(charges)

Special itemsincluded in 12 - - (15) 12 (35)operating loss

Pensionsettlement - - - - - (449)charges

Special itemsincluded in net $ 12 $ - $ - $ (15) $ 12 $ (484)charge toearnings

Unallocated Selected Items

in millions Q1.2020 Q2.2020 Q3.2020 Q3.2019 YTD.2020 YTD.2019

Cash spent forcapital $ - $ - $ - $ (5) $ - $ (14)expenditures

1 Adjusted Funds Available for Distribution (Adjusted FAD), a non-GAAP measure, is defined by Weyerhaeuser as net cash from operations adjusted for capital expenditures and significant non-recurring items.

For more information contact:Analysts -Beth Baum,206-539-3907 Media - Nancy Thompson, 919-861-0342

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SOURCE Weyerhaeuser Company