PR Newswire | Jul 31, 2020 12:06AM EDT

07/30 23:05 CDT

Weyerhaeuser reports second quarter results- Achieved net earnings of $72 million, or $0.10 per diluted share- Increased Adjusted EBITDA by more than 12 percent compared to second quarter 2019 SEATTLE, July 31, 2020

SEATTLE, July 31, 2020 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $72 million, or 10 cents per diluted share, on net sales of $1.6 billion. This compares with net earnings of $128 million, or 17 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 aprinter-friendly PDF.

Excluding a net after-tax charge of $5 million for special items, primarily related to the early extinguishment of debt, the company reported second quarter net earnings of $77 million, or 11 cents per diluted share. This compares with net earnings before special items of $123 million for the same period last year and $138 million for the first quarter of 2020.

Adjusted EBITDA for the second quarter of 2020 was $386 million compared with $343 million for the same period last year and $413 million for the first quarter of 2020.

"In the second quarter, we delivered strong results across each of our businesses despite the disruptive impacts of the COVID-19 pandemic," said Devin W. Stockfish, president and chief executive officer. "I am extremely proud of the dedication and focus of our teams as they safely adapted business practices, efficiently pivoted operating postures, and capitalized on operational excellence opportunities while navigating unprecedented fluctuations in market demand. This includes delivering record low cost performance in lumber despite significant production curtailments."

"These operational efforts, in conjunction with improving market conditions and our prior actions to enhance financial flexibility, enabled us to generate solid cash flow and strengthen our balance sheet. Entering the third quarter, U.S. housing activity is improving, but against a backdrop of rising COVID-19 infection rates and the rollback of certain economic reopening plans. We remain focused on operating safely and efficiently, effectively capitalizing on a full range of market conditions, and driving long-term value for our shareholders through disciplined, prudent capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2020 2020 2019

(millions, except per share data) Q1 Q2 Q2

Net sales $1,728 $1,631 $1,692

Net earnings $150 $72 $128

Net earnings per diluted share $0.20 $0.10 $0.17

Weighted average shares outstanding, diluted 747 747 746

Net earnings before special items^(1)(2) $138 $77 $123

Net earnings per diluted share before special items^(1) $0.18 $0.11 $0.16

Adjusted EBITDA^(1) $413 $386 $343



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.

Second quarter 2020 after-tax special items include an $11 million net charge related to the early extinguishment of debt and a $6 million (2)benefit related to a product remediation insurance recovery. Special items for other periods presented are included in the reconciliation tables following this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q1 Q2 Change

Net sales $503 $480 ($23)

Net contribution to pretax earnings $105 $75 ($30)

Adjusted EBITDA $173 $140 ($33)

Q22020 Performance -In the West, log sales volumes and average sales realizations were comparable to the first quarter, as lower volumes and realizations for domestic and Japan export logs were offset by improved China export volumes and realizations. Forestry and road spending was seasonally higher, and export costs increased. In the South, harvest volumes decreased approximately 4 percent and average sales realizations declined slightly due to mix. In the North, fee harvest volumes decreased seasonally due to spring breakup.

Q3 2020 Outlook - Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be lower than second quarter. In the West, the company anticipates slightly lower average log sales realizations and seasonally higher road, forestry, and per unit logging and hauling costs. The company expects higher average Western domestic log realizations, slightly lower export log realizations, and a higher proportion of domestic log sales compared with the second quarter. In the South, the company expects seasonally higher forestry expenses, decreased fee harvest volumes and slightly lower average log sales realizations, primarily due to mix.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q1 Q2 Change

Net sales $112 $65 ($47)

Net contribution to pretax earnings $36 $19 ($17)

Adjusted EBITDA $101 $57 ($44)

Q22020 Performance -The number of real estate acres sold decreased compared with the first quarter, and average price per acre declined due to the mix of properties sold. Average land basis as a percent of sales increased slightly due to mix. Energy & Natural Resources earnings and Adjusted EBITDA were comparable to the first quarter.

Q3 2020 Outlook -Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be comparable to the second quarter. The company now expects full year 2020 Adjusted EBITDA for the segment will be approximately $235 million, an increase from the $200 million previously expected.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q1 Q2 Change

Net sales $1,235 $1,207 ($28)

Net contribution to pretax earnings $134 $159 $25

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

Net contribution to pretax earnings before special items $134 $151 $17

Adjusted EBITDA $184 $198 $14

Q22020 Performance -Market demand for wood products declined sharply in April due to the economic impact of COVID-19 but rebounded later in the quarter. In April, Weyerhaeuser reduced production volumes across its manufacturing facilities to align with customer demand. As the quarter progressed, the company dynamically adjusted operating rates in response to improving market conditions.

Average sales realizations for lumber increased 5 percent compared with the first quarter, and manufacturing costs improved across all product lines due to operational excellence and cost management initiatives. This was partially offset by lower sales volumes for most product lines.

Second quarter special items consist of an $8 million pretax benefit from product remediation insurance proceeds.

Q3 2020 Outlook - Weyerhaeuser expects third quarter earnings and Adjusted EBITDA will be significantly higher than second quarter. To date, third quarter benchmark pricing for lumber and oriented strand board is significantly higher than the second quarter average. The company also anticipates increased sales volumes across most product lines.

UNALLOCATED

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q1 Q2 Change

Net charge to pretax earnings ($43) ($18) $25

Pretax benefit for special items ($12) $- $12

Net charge to pretax earnings before special items ($55) ($18) $37

Adjusted EBITDA ($45) ($9) $36

Q22020 Performance -Second quarter results include a benefit from elimination of intersegment profit in inventory and LIFO compared with a charge in the first quarter. The second quarter benefit was due to lower end of quarter log and lumber inventory levels.

INCOME TAXES

FINANCIAL HIGHLIGHTS 2020 2020

(millions) Q1 Q2 Change

Income tax (expense) benefit $3 ($60) ($63)

Income tax (expense) benefit attributable to special items $- ($2) ($2)

Income tax (expense) benefit before special items $3 ($58) ($61)

Q22020 Performance -The provision for income taxes was a charge for second quarter, compared with a benefit for first quarter, as the company adjusted its estimated annual effective tax rate to reflect higher average sales realizations for lumber and oriented strand board.

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 July 31, 2020 to discuss second quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 31, 2020.

To join the conference call from within North America, dial 855-223-0757 (access code: 3297624) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 3297624). Replays will be available for two weeks at 855-859-2056 (access code: 3297624) from within North America and at 404-537-3406 (access code: 3297624) 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 our outlook and expectations concerning the following: earnings and Adjusted EBITDA for each of our businesses; log sale realizations and sales volumes; log export sales volumes; fee harvest volumes; road, forestry and logging and hauling costs; and sales volumes across all of our wood products lines. Forward-looking statements are generally identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," 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 and required regulatory approvals; * 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; * 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 March 31, 2020:

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

Adjusted EBITDA by Segment:

Net earnings $ 150

Interest expense, net of capitalized interest 85

Income taxes (3)

Net contribution (charge) to earnings $ 105 $ 36 $ 134 $ (43) $ 232

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

Interest income and other - - - (1) (1)

Operating income (loss) 105 36 134 (35) 240

Depreciation, depletion and amortization 68 3 50 2 123

Basis of real estate sold - 62 - - 62

Special items included in operating income (loss)^(1) - - - (12) (12)

Adjusted EBITDA $ 173 $ 101 $ 184 $ (45) $ 413



(1) Operating income (loss) includes a pretax special item consisting of a $12 million noncash legal benefit.

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 benefit costs - - - 10 10

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 debt.

(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 June 30, 2019:

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

Adjusted EBITDA by Segment:

Net earnings $ 128

Interest expense, net of capitalized interest 91

Income taxes (37)

Net contribution (charge) to earnings $ 102 $ 35 $ 81 $ (36) $ 182

Non-operating pension and other postretirement benefit costs^(1) - - - 10 10

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

Operating income (loss) 102 35 81 (32) 186

Depreciation, depletion and amortization 73 3 47 1 124

Basis of real estate sold - 33 - - 33

Adjusted EBITDA $ 175 $ 71 $ 128 $ (31) $ 343

Non-operating pension and other postretirement benefit costs include a pretax special item consisting of a $6 million benefit from finalizing (1)the noncash settlement charge incurred in first quarter 2019 related to the transfer of pension assets and liabilities through the purchase of a group annuity contract.

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) Q1 Q2 Q2

Net earnings $150 $72 $128

Early extinguishment of debt charge - 11 -

Legal benefit (12) - -

Pension settlement benefit - - (5)

Product remediation recovery - (6) -

Net earnings before special items $138 $77 $123

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

2020 2020 2019

Q1 Q2 Q2

Net earnings per diluted share $0.20 $0.10 $0.17

Early extinguishment of debt charge - 0.02 -

Legal benefit (0.02) - -

Pension settlement benefit - - (0.01)

Product remediation recovery - (0.01) -

Net earnings per diluted share before special items $0.18 $0.11 $0.16

Exhibit 99.2

WeyerhaeuserCompany

Q2.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2020 2020 2019 2020 2019

Net sales $ 1,728 $ 1,631 $ 1,692 $ 3,359 $ 3,335

Costs of sales 1,382 1,283 1,390 2,665 2,712

Gross margin 346 348 302 694 623

Selling expenses 22 18 21 40 42

General and administrative expenses 74 84 80 158 169

Other operating costs (income), net 10 3 15 13 52

Operating income 240 243 186 483 360

Non-operating pension and other postretirement benefit costs (9) (10) (10) (19) (480)

Interest income and other 1 2 6 3 16

Interest expense, net of capitalized interest (85) (103) (91) (188) (198)

Earnings (loss) before income taxes 147 132 91 279 (302)

Income taxes 3 (60) 37 (57) 141

Net earnings (loss) $ 150 $ 72 $ 128 $ 222 $ (161)

Per Share Information

Q1 Q2 Year-to-Date

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

2020 2020 2019 2020 2019

Earnings (loss) per share, basic and diluted $ 0.20 $ 0.10 $ 0.17 $ 0.30 $ (0.22)

Dividends paid per common share $ 0.34 $ - $ 0.34 $ 0.34 $ 0.68

Weighted average shares outstanding (in thousands):

Basic 746,534 746,896 745,486 746,715 746,041

Diluted 747,155 746,984 746,232 747,070 746,041

Common shares outstanding at end of period (in thousands) 746,206 746,251 744,905 746,251 744,905

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

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2020 2020 2019 2020 2019

Net earnings (loss) $ 150 $ 72 $ 128 $ 222 $ (161)

Non-operating pension and other postretirement benefit costs 9 10 10 19 480

Interest income and other (1) (2) (6) (3) (16)

Interest expense, net of capitalized interest 85 103 91 188 198

Income taxes (3) 60 (37) 57 (141)

Operating income 240 243 186 483 360

Depreciation, depletion and amortization 123 117 124 240 247

Basis of real estate sold 62 34 33 96 81

Special items included in operating income (12) (8) - (20) 20

Adjusted EBITDA^(1) $ 413 $ 386 $ 343 $ 799 $ 708



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, (1)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.

Total Company Statistics

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2020 2020 2019 2020 2019

Net earnings (loss) $ 150 $ 72 $ 128 $ 222 $ (161)

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

Legal charge (benefit) (12) - - (12) 15

Pension settlement - - (5) - 340charges

Product remediation - (6) - (6) -recovery

Net earnings before $ 138 $ 77 $ 123 $ 215 $ 203special items^(2)

Q1 Q2 Year-to-Date

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

2020 2020 2019 2020 2019

Net earnings (loss) per $ 0.20 $ 0.10 $ 0.17 $ 0.30 $ (0.22)diluted share

Early extinguishment of - 0.02 - 0.02 0.01debt charges^(1)

Legal charge (benefit) (0.02) - - (0.02) 0.02

Pension settlement - - (0.01) - 0.46charges

Product remediation - (0.01) - (0.01) -recovery

Net earnings perdiluted share before $ 0.18 $ 0.11 $ 0.16 $ 0.29 $ 0.27special items^(2)



We recorded pretax charges of $12 million ($9 million after-tax) and $11 ^ million ($11 million after-tax) related to the early extinguishment of (1)debt in first quarter 2019 and second 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 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2020 2020 2019 2020 2019

Pension andpostretirement costs:

Pension andpostretirement service $ 10 $ 8 $ 8 $ 18 $ 16costs

Non-operating pensionand other 9 10 10 19 480postretirement benefitcosts

Total company pensionand postretirement $ 19 $ 18 $ 18 $ 37 $ 496costs

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

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

ASSETS

Current assets:

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

Receivables, net 390 420 309

Receivables for taxes 24 48 98

Inventories 480 409 416

Assets held for sale - - 140

Prepaid expenses and other current assets 141 131 147

Current restricted financial investments held by variable interest entities - - 362

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

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

Construction in progress 153 110 130

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

Minerals and mineral rights, less depletion 278 275 281

Deferred tax assets 147 65 72

Other assets 399 415 414

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

LIABILITIES AND EQUITY

Current liabilities:

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

Borrowings on line of credit 550 - 230

Accounts payable 241 199 246

Accrued liabilities 448 525 530

Total current liabilities 1,816 724 1,006

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

Deferred tax liabilities 10 18 6

Deferred pension and other postretirement benefits 669 652 693

Other liabilities 352 359 377

Total liabilities 9,146 8,052 8,229

Total equity 8,082 8,202 8,177

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

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows

Q1 Q2 Year-to-Date

March 31, June 30, June 30, June 30, June 30,in millions 2020 2020 2019 2020 2019

Cash flows fromoperations:

Net earnings (loss) $ 150 $ 72 $ 128 $ 222 $ (161)

Noncash charges(credits) to earnings(loss):

Depreciation, depletion 123 117 124 240 247and amortization

Basis of real estate 62 34 33 96 81sold

Deferred income taxes, (82) 80 (43) (2) (166)net

Pension and other 19 18 18 37 496postretirement benefits

Share-based compensation 7 8 7 15 16expense

Change in:

Receivables, less (82) (30) (10) (112) (87)allowances

Receivables and payables 79 (18) 6 61 (25)for taxes

Inventories (72) 74 28 2 (32)

Prepaid expenses and (2) 7 8 5 3other current assets

Accounts payable and (91) 30 127 (61) 45accrued liabilities

Pension andpostretirement benefit (10) (6) (13) (16) (27)contributions andpayments

Other (15) 5 (17) (10) (8)

Net cash from operations $ 86 $ 391 $ 396 $ 477 $ 382

Cash flows frominvesting activities:

Capital expenditures for $ (47) $ (55) $ (71) $ (102) $ (112)property and equipment

Capital expenditures fortimberlands (21) (11) (13) (32) (31)reforestation

Proceeds from notereceivable held by 362 - - 362 253variable interestentities

Proceeds from sale of 145 - - 145 -nonstrategic timberlands

Other 2 1 1 3 19

Net cash from investing $ 441 $ (65) $ (83) $ 376 $ 129activities

Cash flows fromfinancing activities:

Cash dividends on common $ (254) $ - $ (253) $ (254) $ (507)shares

Net proceeds fromissuance of long-term 732 - - 732 739debt

Payments of long-term - (588) - (588) (512)debt

Proceeds from borrowings 550 - 140 550 385on line of credit

Payments on line of (230) (550) (245) (780) (670)credit

Proceeds from exercise 6 - 2 6 4of stock options

Repurchases of common - - - - (60)shares

Other (12) (3) (4) (15) (12)

Net cash from financing $ 792 $ (1,141) $ (360) $ (349) $ (633)activities

Net change in cash and $ 1,319 $ (815) $ (47) $ 504 $ (122)cash equivalents

Cash and cashequivalents at beginning 139 1,458 259 139 334of period

Cash and cashequivalents at end of $ 1,458 $ 643 $ 212 $ 643 $ 212period

Cash paid (received)during the period for:

Interest, net of amounts $ 108 $ 70 $ 60 $ 178 $ 187capitalized

Income taxes, net of $ - $ 1 $ 1 $ 1 $ 51refunds

Timberlands Segment

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

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

Sales to unaffiliated $ 381 $ 359 $ 401 $ 740 $ 832customers

Intersegment sales 122 121 131 243 256

Total net sales 503 480 532 983 1,088

Costs of sales 375 383 405 758 818

Gross margin 128 97 127 225 270

Selling expenses - 1 - 1 1

General and administrative 24 22 25 46 47expenses

Other operating income, net (1) (1) - (2) -

Operating income and Net $ 105 $ 75 $ 102 $ 180 $ 222contribution to earnings

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

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

Operating income $ 105 $ 75 $ 102 $ 180 $ 222

Depreciation, depletion and 68 65 73 133 146amortization

Adjusted EBITDA^(1) $ 173 $ 140 $ 175 $ 313 $ 368



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

Selected Segment Items

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

Total decrease (increase) $ (3) $ (2) $ 46 $ (5) $ 22in working capital^(2)

Cash spent for capital $ (30) $ (21) $ (25) $ (51) $ (51)expenditures



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

Segment Statistics^(3)

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

Third Party Delivered logs:

Net Sales West $ 177 $ 179 $ 194 $ 356 $ 399

(millions) South 150 145 156 295 315

North 17 7 17 24 46

Total delivered 344 331 367 675 760 logs

Stumpage and pay-as-cut 5 5 10 10 19 timber

Recreational and other 15 16 15 31 30 lease revenue

Other 17 7 9 24 23 revenue

Total $ 381 $ 359 $ 401 $ 740 $ 832

Delivered West $ 104.91 $ 104.90 $ 104.07 $ 104.91 $ 105.52Logs

Third Party South $ 34.27 $ 33.68 $ 35.45 $ 33.97 $ 35.40Sales

Realizations North $ 60.51 $ 59.82 $ 62.10 $ 60.31 $ 60.52(per ton)

Delivered West 1,684 1,714 1,864 3,398 3,784Logs

Third Party South 4,365 4,307 4,400 8,672 8,899Sales

Volumes(tons, North 284 113 263 397 757thousands)

Fee Harvest West 2,310 2,236 2,455 4,546 4,840Volumes

(tons, South 6,130 5,914 6,367 12,044 12,859thousands)

North 386 194 378 580 1,005



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

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

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

Net sales $ 112 $ 65 $ 81 $ 177 $ 199

Costs of sales 70 40 39 110 95

Gross margin 42 25 42 67 104

General and administrative 6 6 7 12 14expenses

Operating income and Net $ 36 $ 19 $ 35 $ 55 $ 90contribution to earnings

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

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

Operating income $ 36 $ 19 $ 35 $ 55 $ 90

Depreciation, depletion and 3 4 3 7 6amortization

Basis of real estate sold 62 34 33 96 81

Adjusted EBITDA^(1) $ 101 $ 57 $ 71 $ 158 $ 177



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

Selected Segment Items

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

Cash spent for capital $ - $ - $ - $ - $ -expenditures

Segment Statistics

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

Net Sales Real $ 95 $ 48 $ 59 $ 143 $ 155 Estate

Energy(millions) and 17 17 22 34 44 Natural Resources

Total $ 112 $ 65 $ 81 $ 177 $ 199

Acres Sold Real 44,974 31,337 47,031 76,310 85,865 Estate

Price per Real $ 1,992 $ 1,501 $ 1,063 $ 1,790 $ 1,678Acre Estate

Basis as aPercent of Real 65 % 71 % 56 % 67 % 52 %Real EstateEstate NetSales

Wood Products Segment

Weyerhaeuser Company

Q2.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

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

Net sales $ 1,235 $ 1,207 $ 1,210 $ 2,442 $ 2,304

Costs of sales 1,040 997 1,070 2,037 2,037

Gross margin 195 210 140 405 267

Selling expenses 21 18 20 39 39

General and administrative 36 33 34 69 69expenses

Other operating costs, net 4 - 5 4 9

Operating income and Net $ 134 $ 159 $ 81 $ 293 $ 150contribution to earnings

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

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

Operating income $ 134 $ 159 $ 81 $ 293 $ 150

Depreciation, depletion and 50 47 47 97 93amortization

Special items - (8) - (8) -

Adjusted EBITDA^(1) $ 184 $ 198 $ 128 $ 382 $ 243



^(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 Q2.2019 YTD.2020 YTD.2019

Product remediation recovery $ - $ 8 $ - $ 8 $ -

Selected Segment Items

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

Total decrease (increase) in $ (186) $ 56 $ 75 $ (130) $ (80)working capital^(2)

Cash spent for capital $ (38) $ (45) $ (53) $ (83) $ (83)expenditures



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

Segment Statistics

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

Structural Lumber Third party net sales $ 508 $ 538 $ 495 $ 1,046 $ 939

(volumes Third party sales realizations $ 416 $ 438 $ 388 $ 427 $ 390presented

in board feet) Third party sales volumes^(3) 1,222 1,225 1,274 2,447 2,407

Production volumes 1,209 1,108 1,193 2,317 2,338

Oriented Strand Third party net sales $ 190 $ 179 $ 156 $ 369 $ 316

Board Third party sales realizations $ 246 $ 240 $ 213 $ 243 $ 218

(volumes Third party sales volumes^(3) 770 747 733 1,517 1,450presented

in square feet 3/ Production volumes 777 742 736 1,519 1,4658")

Engineered Solid Third party net sales $ 127 $ 111 $ 134 $ 238 $ 250

Section Third party sales realizations $ 2,149 $ 2,151 $ 2,214 $ 2,150 $ 2,216

(volumes Third party sales volumes^(3) 5.9 5.2 6.1 11.1 11.3presented

in cubic feet) Production volumes 6.1 5.3 6.0 11.4 11.9

Engineered Third party net sales $ 78 $ 70 $ 86 $ 148 $ 156

I-joists Third party sales realizations $ 1,667 $ 1,645 $ 1,662 $ 1,656 $ 1,683

(volumes Third party sales volumes^(3) 47 42 52 89 93presented

in lineal feet) Production volumes 47 38 47 85 91

Softwood Plywood Third party net sales $ 39 $ 34 $ 44 $ 73 $ 88

(volumes Third party sales realizations $ 348 $ 356 $ 380 $ 352 $ 382presented

in square feet 3/ Third party sales volumes^(3) 113 95 115 208 2308")

Production volumes 97 76 104 173 202

Medium Density Third party net sales $ 44 $ 33 $ 45 $ 77 $ 83

Fiberboard Third party sales realizations $ 841 $ 825 $ 833 $ 834 $ 839

(volumes Third party sales volumes^(3) 52 40 55 92 99presented

in square feet 3/ Production volumes 56 35 61 91 1064")



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

Unallocated Items

Weyerhaeuser Company

Q2.2020 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 Q2.2019 YTD.2020 YTD.2019

Unallocated corporatefunction and variable $ (19) $ (23) $ (12) $ (42) $ (31)compensation expense

Liability classified 10 (4) - 6 (4)share-based compensation

Foreign exchange gain (8) 3 2 (5) (1)(loss)

Elimination of intersegmentprofit in inventory and (13) 18 (5) 5 (10)LIFO

Other, net (5) (4) (17) (9) (56)

Operating income (loss) (35) (10) (32) (45) (102)

Non-operating pension andother postretirement (9) (10) (10) (19) (480)benefit costs

Interest income and other 1 2 6 3 16

Net charge to earnings $ (43) $ (18) $ (36) $ (61) $ (566)

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

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

Operating income (loss) $ (35) $ (10) $ (32) $ (45) $ (102)

Depreciation, depletion and 2 1 1 3 2amortization

Special items (12) - - (12) 20

Adjusted EBITDA^(1) $ (45) $ (9) $ (31) $ (54) $ (80)



^(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 Q2.2019 YTD.2020 YTD.2019

Legal benefit (charge) 12 - - 12 (20)

Special items included in 12 - - 12 (20)operating income (loss)

Pension settlement charges - - 6 - (449)

Special items included in $ 12 $ - $ 6 $ 12 $ (469)net charge to earnings

Unallocated Selected Items

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

Cash spent for capital $ - $ - $ (6) $ - $ (9)expenditures

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

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SOURCE Weyerhaeuser Company