PR Newswire | Oct 29, 2021 03:05AM EDT

10/29 02:05 CDT

Weyerhaeuser Reports Third Quarter Results- Achieved net earnings of $482 million, or $0.64 per diluted share- Generated $746 million of Adjusted EBITDA SEATTLE, Oct. 29, 2021

SEATTLE, Oct. 29, 2021 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $482 million, or 64 cents per diluted share, on net sales of $2.3 billion. This compares with net earnings of $283 million, or 38 cents per diluted share, on net sales of $2.1 billion for the same period last year.

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

Excluding an after-tax benefit of $32 million for special items related to a gain on the sale of timberlands, the company reported third quarter net earnings of $450 million, or 60 cents per diluted share. This compares with net earnings before special items of $386 million for the same period last year and $1.0 billion for the second quarter of 2021.

Adjusted EBITDA for the third quarter of 2021 was $746 million compared with $745 million for the same period last year and $1.6 billion for the second quarter of 2021.

"In the third quarter, we delivered strong results across each of our businesses despite weather-related operational disruptions, continued supply chain challenges and the ongoing pandemic," said Devin W. Stockfish, president and chief executive officer. "Our teams did an exceptional job navigating these headwinds and I'm extremely proud of their collective focus on operating safely, strong execution and continuing to serve our customers. Year to date, we have generated more than $3.4 billion of Adjusted EBITDA and $2.4 billion of Adjusted Funds Available for Distribution. We expect this record cash flow generation to result in a significant supplemental dividend payment to shareholders in the first quarter of 2022. We are bullish on the underlying demand fundamentals for U.S. housing and growth opportunities for our businesses and remain intently focused on delivering superior shareholder value."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 2021 2021 2020

(millions, except per share data) Q2 Q3 Q3

Net sales $3,144 $2,345 $2,110

Net earnings $1,028 $482 $283

Net earnings per diluted share $1.37 $0.64 $0.38

Weighted average shares outstanding, diluted 752 751 748

Net earnings before special items^(1)(2) $1,028 $450 $386

Net earnings per diluted share before special items^(1) $1.37 $0.60 $0.52

Adjusted EBITDA^(1) $1,573 $746 $745

Net cash from operations $1,308 $659 $608

Adjusted FAD^(3) $1,236 $561 $543

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(1) EBITDA, as we define it, is operating income adjusted for depreciation, 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 2021 after-tax special items includes a $32 million gain on(2) the sale of timberlands. Special items for prior periods presented are included in the reconciliation tables within this release.

Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and(3) significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q2 Q3 Change

Net sales $541 $552 $11

Net contribution to pretax earnings $113 $133 $20

Pretax benefit for special items $- ($32) ($32)

Net contribution to pretax earnings before special items $113 $101 ($12)

Adjusted EBITDA $180 $165 ($15)

Q3 2021 Performance -In the West, fee harvest volumes were modestly lower than the second quarter due to continued salvage operations and harvest restrictions resulting from regional wildfire activity. Per unit log and haul costs increased as Western harvest activity shifted to higher elevation units. Export sales realizations were moderately higher, driven by strong demand. In the South, sales realizations for sawlogs and fiber logs improved and fee harvest volumes increased slightly, but harvest activity was affected by persistent wet conditions and weather events. Per unit log and haul costs and forestry and road costs were slightly higher.

Third quarter special items consist of a $32 million gain on the previously announced sale of 145 thousand acres of timberlands in the North Cascades region of Washington, which was completed in July.

Q4 2021 Outlook - Weyerhaeuser expects fourth quarter earnings and Adjusted EBITDA will be comparable to the third quarter. 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. Domestic sales realizations are expected to be moderately lower compared to the third quarter. 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. This is expected to be offset by slightly higher per unit log and haul costs as well as moderately higher forestry and road costs.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q2 Q3 Change

Net sales $110 $69 ($41)

Net contribution to pretax earnings $63 $45 ($18)

Adjusted EBITDA $91 $60 ($31)

Q3 2021 Performance -Earnings and Adjusted EBITDA decreased from the second quarter due to lower real estate sales. The number of real estate acres sold decreased due to the timing of real estate transactions, partially offset by an increase in the average price per acre due to the mix of properties sold.

Q4 2021 Outlook -Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be significantly lower than the third quarter due to the timing of transactions. 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.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS 2021 2021

(millions) Q2 Q3 Change

Net sales $2,629 $1,853 ($776)

Net contribution to pretax earnings $1,338 $517 ($821)

Adjusted EBITDA $1,386 $565 ($821)

Q3 2021 Performance -Sales realizations for lumber and oriented strand board decreased 52 percent and 24 percent, respectively, compared with second quarter averages. Sales volumes for lumber increased moderately due to improvement in home center takeaway, partially offset by weather-related downtime. Oriented strand board production and sales volumes were modestly higher due to less downtime for planned maintenance. Sales realizations improved significantly across most engineered wood products, and the company continued to benefit from previously announced price increases for solid section and I-joist products. Raw material costs for Wood Products increased, primarily for oriented strand board webstock, resin and veneer.

Q4 2021 Outlook - 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. 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.

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 2020, we generated $7.5 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 29, 2021 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 29, 2021.

To join the conference call from within North America, dial 877-407-0792 (access code: 13714049) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714049). Replays will be available for two weeks at 844-512-2921 (access code: 13714049) from within North America, and at 412-317-6671 (access code: 13714049) 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, including, but not limited to, with respect to our outlook and expectations concerning the following: fourth quarter earnings and Adjusted EBITDA for each of our businesses and full-year Adjusted EBITDA for our Real Estate, Energy & Natural Resources business; log sales realizations; forestry and road costs; log and haul costs; fee harvest volumes, including salvage-related harvest activity; basis as a percentage of real estate sales; raw materials costs for our Wood Products business; the amount of manufacturing downtime due to scheduled maintenance; average sales realizations for our lumber and oriented strand board products; sales volumes for oriented strand board and sales realizations for our lumber and oriented strand board product lines. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words such as "anticipate," "expect," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. 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, inflation, 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, including but not limited to any related regulatory restrictions or requirements, 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; * the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction 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 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 the accuracy of our estimates of charges related to casualty losses; * changes in accounting principles; and * other risks and uncertainties identified in our 2020 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.

For more information contact:Analysts -Andy Taylor | 206-539-3907Media - Nancy Thompson | 919-861-0342

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, 2021:

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

Adjusted EBITDA bySegment:

Net earnings $1,028

Interest expense, netof capitalized 78interest

Income taxes 324

Net contribution $113 $63 $1,338 $(84) $1,430(charge) to earnings

Non-operating pensionand other - - - 1 1post-employmentbenefit costs

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

Operating income 113 63 1,338 (85) 1,429(loss)

Depreciation,depletion and 67 4 48 1 120amortization

Basis of real estate - 24 - - 24sold

Adjusted EBITDA $180 $91 $1,386 $(84) $1,573

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2021:

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

Adjusted EBITDA bySegment:

Net earnings $482

Interest expense, net 79of capitalized interest

Income taxes 84

Net contribution $133 $45 $517 $(50) $645(charge) to earnings

Non-operating pensionand other - - - 5 5post-employment benefitcosts

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

Operating income (loss) 133 45 517 (46) 649

Depreciation, depletion 64 4 48 2 118and amortization

Basis of real estate - 11 - - 11sold

Special items includedin operating income (32) - - - (32)(loss)^(1)

Adjusted EBITDA $165 $60 $565 $(44) $746

(1) Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands.

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 bySegment:

Net earnings $283

Interest expense, netof capitalized interest 111^(1)

Income taxes 109

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

Non-operating pensionand other - - - 9 9post-employment benefitcosts

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

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

Depreciation, depletion 61 3 49 2 115and amortization

Basis of real estate - 40 - - 40sold

Special items includedin operating income 80 - - - 80(loss)^(2)

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 year-to-date period ended September 30, 2021:

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

Adjusted EBITDA bySegment:

Net earnings $2,191

Interest expense, netof capitalized 236interest

Income taxes 597

Net contribution $354 $174 $2,695 $(199) $3,024(charge) to earnings

Non-operating pensionand other - - - 14 14post-employmentbenefit costs

Interest income and - - - (4) (4)other

Operating income 354 174 2,695 (189) 3,034(loss)

Depreciation,depletion and 195 11 145 5 356amortization

Basis of real estate - 62 - - 62sold

Special items includedin operating income (32) - - - (32)(loss)^(1)

Adjusted EBITDA $517 $247 $2,840 $(184) $3,420

(1) Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands.

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:

2021 2021 2020

(millions) Q2 Q3 Q3

Net earnings $1,028 $482 $283

Early extinguishment of debt charge - - 23

Gain on sale of timberlands - (32) -

Timber casualty loss - - 80

Net earnings before special items $1,028 $450 $386

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

2021 2021 2020

Q2 Q3 Q3

Net earnings per diluted share $1.37 $0.64 $0.38

Early extinguishment of debt charge - - 0.03

Gain on sale of timberlands - (0.04) -

Timber casualty loss - - 0.11

Net earnings per diluted share before special items $1.37 $0.60 $0.52

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.

The table below reconciles Adjusted FAD to net cash from operations:

2021 2021 2020 2021

(millions) Q2 Q3 Q3 Q3 YTD

Net cash from operations $1,308 $659 $608 $2,665

Capital expenditures (72) (98) (65) (223)

Adjustments to FAD - - - -

Adjusted FAD $1,236 $561 $543 $2,442

Exhibit 99.2

Weyerhaeuser Company Q3.2021 Analyst Package Preliminary results (unaudited)

Consolidated Statement of Operations

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30,in millions 2021 2021 2021 2020 2021 2020

Net sales $ 2,506 $ 3,144 $ 2,345 $ 2,110 $ 7,995 $ 5,469

Costs of sales 1,430 1,583 1,589 1,390 4,602 4,055

Gross margin 1,076 1,561 756 720 3,393 1,414

Selling 20 24 24 22 68 62expenses

General andadministrative 90 95 98 96 283 254expenses

Other operatingcosts (income), 10 13 (15) 92 8 105net

Operating 956 1,429 649 510 3,034 993income

Non-operatingpension andother (8) (1) (5) (9) (14) (28)post-employmentbenefit costs

Interest income 1 2 1 2 4 5and other

Interestexpense, net of (79) (78) (79) (111) (236) (299)capitalizedinterest

Earnings before 870 1,352 566 392 2,788 671income taxes

Income taxes (189) (324) (84) (109) (597) (166)

Net earnings $ 681 $ 1,028 $ 482 $ 283 $ 2,191 $ 505

Per Share Information

Q1 Q2 Q3 Year-to-Date

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

2021 2021 2021 2020 2021 2020

Earnings pershare, basic $ 0.91 $ 1.37 $ 0.64 $ 0.38 $ 2.92 $ 0.68and diluted

Dividends paidper common $ 0.17 $ 0.17 $ 0.17 $ - $ 0.51 $ 0.34share

Weightedaverage sharesoutstanding (inthousands):

Basic 748,718 750,127 750,105 746,996 749,657 746,809

Diluted 750,024 751,508 751,443 748,450 750,999 747,530

Common sharesoutstanding at 748,751 749,782 749,037 746,398 749,037 746,398end of period(in thousands)

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

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30,in millions 2021 2021 2021 2020 2021 2020

Net earnings $ 681 $ 1,028 $ 482 $ 283 $ 2,191 $ 505

Non-operatingpension andother 8 1 5 9 14 28post-employmentbenefit costs

Interest income (1) (2) (1) (2) (4) (5)and other

Interestexpense, net of 79 78 79 111 236 299capitalizedinterest

Income taxes 189 324 84 109 597 166

Operating 956 1,429 649 510 3,034 993income

Depreciation,depletion and 118 120 118 115 356 355amortization

Basis of real 27 24 11 40 62 136estate sold

Special itemsincluded in - - (32) 80 (32) 60operatingincome

Adjusted EBITDA $ 1,101 $ 1,573 $ 746 $ 745 $ 3,420 $ 1,544^(1)

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 Q3.2021 Analyst PackagePreliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept 30, Sept Sept 30, Sept 30,in millions 30, 2021 2021 2021 2021 2020 2020

Net earnings $ 681 $ 1,028 $ 482 $ 283 $ 2,191 $ 505

Earlyextinguishment - - - 23 - 34of debtcharges^(1)

Gain on sale - - (32) - (32) -of timberlands

Legal benefit - - - - - (12)

Productremediation - - - - - (6)recovery

Timber - - - 80 - 80casualty loss

Net earningsbefore special $ 681 $ 1,028 $ 450 $ 386 $ 2,159 $ 601items^(2)

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept 30, Sept Sept 30, Sept 30, 30, 2021 2021 2021 2021 2020 2020

Net earningsper diluted $ 0.91 $ 1.37 $ 0.64 $ 0.38 $ 2.92 $ 0.68share

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

Gain on sale - - (0.04) - (0.04) -of timberlands

Legal benefit - - - - - (0.02)

Productremediation - - - - - (0.01)recovery

Timber - - - 0.11 - 0.11casualty loss

Net earningsper dilutedshare before $ 0.91 $ 1.37 $ 0.60 $ 0.52 $ 2.88 $ 0.81special items^(2)

We recorded pretax charges of $11 million ($11 million after-tax) and $23^ million ($23 million after-tax) related to the early extinguishment of debt(1) in 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 30, Sept 30, Sept 30, Sept 30,in millions 2021 2021 2021 2020 2021 2020

Pension andpost-employmentcosts:

Pension andpost-employment $ 11 $ 10 $ 11 $ 9 $ 32 $ 27service costs

Non-operatingpension andother 8 1 5 9 14 28post-employmentbenefit costs

Total companypension and $ 19 $ 11 $ 16 $ 18 $ 46 $ 55post-employmentcosts

Weyerhaeuser CompanyQ3.2021 Analyst PackagePreliminary results (unaudited)

Consolidated Balance Sheet

March 31, June 30, September 30, December 31,in millions 2021 2021 2021 2020

ASSETS

Current assets:

Cash and cash equivalents $ 1,016 $ 1,777 $ 2,326 $ 495

Receivables, net 589 702 497 450

Receivables for taxes 7 7 72 82

Inventories 505 499 499 443

Assets held for sale - 229 - -

Prepaid expenses and other 141 141 146 139current assets

Total current assets 2,258 3,355 3,540 1,609

Property and equipment, 1,971 1,965 1,924 2,013net

Construction in progress 91 102 169 73

Timber and timberlands at 11,776 11,643 11,606 11,827cost, less depletion

Minerals and mineral 265 262 258 268rights, less depletion

Deferred tax assets 106 71 52 120

Other assets 407 432 543 401

Total assets $ 16,874 $ 17,830 $ 18,092 $ 16,311

LIABILITIES AND EQUITY

Current liabilities:

Current maturities of $ 150 $ 150 $ 150 $ 150long-term debt

Accounts payable 236 253 264 204

Accrued liabilities 549 775 1,110 596

Total current liabilities 935 1,178 1,524 950

Long-term debt, net 5,325 5,100 5,100 5,325

Deferred tax liabilities 26 42 28 24

Deferred pension and other 893 747 711 911post-employment benefits

Other liabilities 367 363 360 370

Total liabilities 7,546 7,430 7,723 7,580

Total equity 9,328 10,400 10,369 8,731

Total liabilities and $ 16,874 $ 17,830 $ 18,092 $ 16,311equity

Weyerhaeuser CompanyQ3.2021 Analyst PackagePreliminary results (unaudited)

Consolidated Statement of Cash Flows

Q1 Q2 Q3 Year-to-Date

March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30,in millions 2021 2021 2021 2020 2021 2020

Cash flows fromoperations:

Net earnings $ 681 $ 1,028 $ 482 $ 283 $ 2,191 $ 505

Noncash charges(credits) toearnings:

Depreciation,depletion and 118 120 118 115 356 355amortization

Basis of real 27 24 11 40 62 136estate sold

Deferred income 8 11 (3) 22 16 20taxes, net

Pension andother 19 11 16 18 46 55post-employmentbenefits

Share-basedcompensation 7 8 8 7 23 22expense

Timber casualty - - - 80 - 80loss

Gain on sale of - - (32) - (32) -timberlands

Change in:

Receivables, (139) (113) 205 (80) (47) (192)net

Receivables andpayables for 120 116 (143) 42 93 103taxes

Inventories (60) 9 (4) - (55) 2

Prepaidexpenses and (2) 1 (20) - (21) 5other currentassets

Accountspayable and (60) 125 51 64 116 3accruedliabilities

Pension andpost-employmentbenefit (8) (25) (23) (5) (56) (21)contributionsand payments

Other (13) (7) (7) 22 (27) 12

Net cash from $ 698 $ 1,308 $ 659 $ 608 $ 2,665 $ 1,085operations

Cash flows frominvestingactivities:

Capitalexpenditures $ (31) $ (62) $ (91) $ (56) $ (184) $ (158)for propertyand equipment

Capitalexpenditures (22) (10) (7) (9) (39) (41)for timberlandsreforestation

Acquisition ofAlabama - (149) - - (149) -timberlands

Proceeds fromnote receivableheld by - - - - - 362variableinterestentities

Proceeds fromsale of - - 261 - 261 145timberlands

Other - 1 2 - 3 3

Net cash frominvesting $ (53) $ (220) $ 165 $ (65) $ (108) $ 311activities

Cash flows fromfinancingactivities:

Cash dividendson common $ (127) $ (128) $ (127) $ - $ (382) $ (254)shares

Net proceedsfrom issuance - - - - - 732of long-termdebt

Payments on - (225) - (348) (225) (936)long-term debt

Proceeds fromborrowings on - - - - - 550line of credit

Payments on - - - - - (780)line of credit

Proceeds fromexercise of 17 28 1 3 46 9stock options

Repurchases of - - (26) - (26) -common shares

Other (14) (2) (3) (1) (19) (16)

Net cash fromfinancing $ (124) $ (327) $ (155) $ (346) $ (606) $ (695)activities

Net change incash, cash $ 521 $ 761 $ 669 $ 197 $ 1,951 $ 701equivalents andrestricted cash

Cash, cashequivalents andrestricted cash 495 1,016 1,777 643 495 139at beginning ofperiod

Cash, cashequivalents andrestricted cash $ 1,016 $ 1,777 $ 2,446 $ 840 $ 2,446 $ 840at end ofperiod

Cash paid(received)during theperiod for:

Interest, netof amounts $ 75 $ 79 $ 83 $ 100 $ 237 $ 278capitalized

Income taxes, $ 66 $ 197 $ 231 $ 45 $ 494 $ 46net of refunds

Timberlands Segment

Weyerhaeuser Company Q3.2021 Analyst PackagePreliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Sales tounaffiliated $ 379 $ 405 $ 423 $ 345 $ 1,207 $ 1,085customers

Intersegment 134 136 129 107 399 350sales

Total net sales 513 541 552 452 1,606 1,435

Costs of sales 383 407 428 358 1,218 1,116

Gross margin 130 134 124 94 388 319

Selling expenses - - 1 - 1 1

General andadministrative 23 23 23 24 69 70expenses

Other operatingcosts (income), (1) (2) (33) 81 (36) 79net

Operating income(loss) and Netcontribution $ 108 $ 113 $ 133 $ (11) $ 354 $ 169(charge) toearnings

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

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Operating income $ 108 $ 113 $ 133 $ (11) $ 354 $ 169(loss)

Depreciation,depletion and 64 67 64 61 195 194amortization

Special items - - (32) 80 (32) 80

Adjusted EBITDA^ $ 172 $ 180 $ 165 $ 130 $ 517 $ 443(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 Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Gain on sale of $ - $ - $ 32 $ - $ 32 $ -timberlands

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

Selected Segment Items

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Total decrease(increase) in $ (13) $ 2 $ 1 $ 43 $ (10) $ 38working capital^(2)

Cash spent forcapital $ (28) $ (21) $ (27) $ (24) $ (76) $ (75)expenditures^(3)

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

^(3) Does not include cash spent for the acquisition of timberlands.

Segment Statistics^(4)

Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Third Party Delivered logs:

Net Sales West $ 201 $ 222 $ 226 $ 163 $ 649 $ 519

(millions) South 131 145 153 141 429 436

North 16 9 13 13 38 37

Total delivered 348 376 392 317 1,116 992 logs

Stumpage and pay-as-cut 6 7 9 5 22 15 timber

Recreational and other 16 16 16 16 48 47 lease revenue

Other 9 6 6 7 21 31 revenue

Total $ 379 $ 405 $ 423 $ 345 $ 1,207 $ 1,085

Delivered West $ 130.69 $ 137.80 $ 145.64 $ 109.01 $ 138.06 $ 106.16Logs

Third Party South $ 34.50 $ 35.11 $ 35.56 $ 33.68 $ 35.08 $ 33.88Sales

Realizations North $ 62.83 $ 74.88 $ 64.93 $ 57.19 $ 65.97 $ 59.15(per ton)

Delivered West 1,539 1,608 1,555 1,489 4,702 4,887Logs

Third Party South 3,782 4,150 4,304 4,185 12,236 12,857Sales

Volumes(tons, North 261 115 195 234 571 631thousands)

Fee Harvest West 2,101 2,099 1,930 1,911 6,130 6,457Volumes

(tons, South 5,376 5,856 5,912 5,596 17,144 17,640thousands)

North 337 199 264 321 800 901

^(^ Western logs are primarily transacted in MBF but are converted to ton4) equivalents for external reporting purposes.

Real Estate, Energy & Natural Resources Segment

Weyerhaeuser Company Q3.2021 Analyst PackagePreliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Net sales $ 106 $ 110 $ 69 $ 69 $ 285 $ 246

Costs of sales 34 41 18 46 93 156

Gross margin 72 69 51 23 192 90

General andadministrative 6 6 6 6 18 18expenses

Operating incomeand Net $ 66 $ 63 $ 45 $ 17 $ 174 $ 72contribution toearnings

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

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Operating income $ 66 $ 63 $ 45 $ 17 $ 174 $ 72

Depreciation,depletion and 3 4 4 3 11 10amortization

Basis of real 27 24 11 40 62 136estate sold

Adjusted EBITDA^ $ 96 $ 91 $ 60 $ 60 $ 247 $ 218(1)

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

Selected Segment Items

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

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

Segment Statistics

Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Net Sales Real $ 84 $ 83 $ 45 $ 49 $ 212 $ 192 Estate

Energy(millions) and 22 27 24 20 73 54 Natural Resources

Total $ 106 $ 110 $ 69 $ 69 $ 285 $ 246

Acres Sold Real 19,455 18,415 11,037 34,917 48,907 111,228 Estate

Price per Real $ 3,803 $ 3,227 $ 4,005 $ 1,381 $ 3,632 $ 1,662Acre Estate

Basis as aPercent of Real 32 % 29 % 24 % 82 % 29 % 71 %Real EstateEstate NetSales

Wood Products Segment

Weyerhaeuser Company Q3.2021 Analyst PackagePreliminary results (unaudited)

Segment Statement of Operations

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Net sales $ 2,021 $ 2,629 $ 1,853 $ 1,696 $ 6,503 $ 4,138

Costs of sales 1,124 1,229 1,270 1,075 3,623 3,112

Gross margin 897 1,400 583 621 2,880 1,026

Selling expenses 19 21 21 18 61 57

General andadministrative 35 35 34 33 104 102expenses

Other operating 3 6 11 4 20 8costs, net

Operating incomeand Net $ 840 $ 1,338 $ 517 $ 566 $ 2,695 $ 859contribution toearnings

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

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Operating income $ 840 $ 1,338 $ 517 $ 566 $ 2,695 $ 859

Depreciation,depletion and 49 48 48 49 145 146amortization

Special items - - - - - (8)

Adjusted EBITDA^ $ 889 $ 1,386 $ 565 $ 615 $ 2,840 $ 997(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 Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Productremediation $ - $ - $ - $ - $ - $ 8recovery

Selected Segment Items

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Total decrease(increase) in $ (212) $ (49) $ 249 $ (68) $ (12) $ (198)working capital^(2)

Cash spent forcapital $ (25) $ (51) $ (70) $ (41) $ (146) $ (124)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 Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020party sales realizations

Structural Lumber Third party net $ 990 $ 1,349 $ 681 $ 819 $ 3,020 $ 1,865 sales

(volumes Third partypresented sales $ 864 $ 1,077 $ 516 $ 674 $ 812 $ 509 realizations

Third partyin board feet) sales volumes^ 1,145 1,252 1,320 1,216 3,717 3,663 (3)

Production 1,211 1,234 1,222 1,170 3,667 3,487 volumes

Oriented Strand Third party net $ 438 $ 605 $ 470 $ 290 $ 1,513 $ 659 sales

Third partyBoard sales $ 614 $ 911 $ 691 $ 395 $ 735 $ 293 realizations

(volumes Third partypresented sales volumes^ 714 663 681 736 2,058 2,253 (3)

in square feet 3/ Production 742 683 715 759 2,140 2,2788") volumes

Engineered Solid Third party net $ 142 $ 166 $ 183 $ 135 $ 491 $ 373 sales

Third partySection sales $ 2,285 $ 2,533 $ 3,092 $ 2,128 $ 2,628 $ 2,142 realizations

(volumes Third partypresented sales volumes^ 6.2 6.6 5.9 6.3 18.7 17.4 (3)

in cubic feet) Production 6.0 6.2 5.8 5.4 18.0 16.8 volumes

Engineered Third party net $ 83 $ 104 $ 128 $ 83 $ 315 $ 231 sales

Third partyI-joists sales $ 1,773 $ 1,980 $ 2,600 $ 1,638 $ 2,119 $ 1,650 realizations

(volumes Third partypresented sales volumes^ 47 53 49 51 149 140 (3)

in lineal feet) Production 44 51 49 43 144 128 volumes

Softwood Plywood Third party net $ 56 $ 69 $ 45 $ 55 $ 170 $ 128 sales

(volumes Third partypresented sales $ 594 $ 902 $ 653 $ 507 $ 710 $ 405 realizations

in square feet 3/ Third party8") sales volumes^ 94 77 69 107 240 315 (3)

Production 80 62 61 94 203 267 volumes

Medium Density Third party net $ 48 $ 43 $ 52 $ 47 $ 143 $ 124 sales

Third partyFiberboard sales $ 842 $ 869 $ 943 $ 864 $ 885 $ 845 realizations

(volumes Third partypresented sales volumes^ 57 50 55 55 162 147 (3)

in square feet 3/ Production 56 52 55 57 163 1484") volumes

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

Unallocated Items

Weyerhaeuser Company Q3.2021 Analyst PackagePreliminary 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 post-employment 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 Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Unallocatedcorporatefunction and $ (25) $ (36) $ (33) $ (36) $ (94) $ (78)variablecompensationexpense

Liabilityclassified (1) - (1) (5) (2) 1share-basedcompensation

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

Elimination ofintersegmentprofit in (17) (28) 12 (9) (33) (4)inventory andLIFO

Other, net (13) (20) (29) (14) (62) (23)

Operating loss (58) (85) (46) (62) (189) (107)

Non-operatingpension and other (8) (1) (5) (9) (14) (28)post-employmentbenefit costs

Interest income 1 2 1 2 4 5and other

Net charge to $ (65) $ (84) $ (50) $ (69) $ (199) $ (130)earnings

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

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Operating loss $ (58) $ (85) $ (46) $ (62) $ (189) $ (107)

Depreciation,depletion and 2 1 2 2 5 5amortization

Special items - - - - - (12)

Adjusted EBITDA^ $ (56) $ (84) $ (44) $ (60) $ (184) $ (114)(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 Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Legal benefit $ - $ - $ - $ - $ - $ 12

Special itemsincluded inoperating loss $ - $ - $ - $ - $ - $ 12and net charge toearnings

Unallocated Selected Items

in millions Q1.2021 Q2.2021 Q3.2021 Q3.2020 YTD.2021 YTD.2020

Cash spent forcapital $ - $ - $ (1) $ - $ (1) $ -expenditures

View original content to download multimedia: https://www.prnewswire.com/news-releases/weyerhaeuser-reports-third-quarter-results-301411719.html

SOURCE Weyerhaeuser Company