Weyerhaeuser Company (WY) Bundle
A Brief History of Weyerhaeuser Company
Weyerhaeuser Company, established in 1900, has evolved into one of the largest private owners of timberlands in the world and a leading manufacturer of wood products. As of 2024, the company operates across various segments including Timberlands, Wood Products, and Real Estate, Energy, and Natural Resources (ENR).
Financial Performance in 2024
In the third quarter of 2024, Weyerhaeuser reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $1,681 million | $2,022 million | $5,416 million | $5,900 million |
| Costs of Sales | $1,431 million | $1,520 million | $4,407 million | $4,560 million |
| Operating Income | $78 million | $353 million | $544 million | $908 million |
| Net Earnings | $28 million | $239 million | $315 million | $620 million |
| Earnings per Share (Basic) | $0.04 | $0.33 | $0.43 | $0.85 |
Overall, Weyerhaeuser's net sales experienced a decrease of $341 million (17%) in Q3 2024 compared to Q3 2023, primarily due to lower sales in the Wood Products segment, which saw a $302 million decline attributed to decreased sales realizations and sales volumes across most product lines.
Cash Flow and Liquidity
For the year-to-date period ending September 30, 2024, Weyerhaeuser reported the following cash flow metrics:
| Metric | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|
| Net Cash from Operations | $790 million | $1,145 million |
| Net Cash from Investing Activities | $(381) million | $(982) million |
| Net Cash from Financing Activities | $(674) million | $(571) million |
The decrease in net cash from operations was primarily due to decreased cash flows from business operations.
Dividends and Share Repurchase Programs
Weyerhaeuser has maintained a consistent dividend strategy, paying cash dividends on common shares as follows:
| Year | Dividends Paid (in millions) |
|---|---|
| 2024 | $539 million |
| 2023 | $1,076 million |
The reduction in dividends paid is reflective of a supplemental dividend paid in 2023 that was not repeated in 2024.
Market Conditions and Impact
Market conditions in 2024 have been challenging, particularly in the housing sector. The average price for framing lumber decreased to $383 per MBF from previous highs, affecting the company's revenue from wood products. Additionally, the company's interest expense for the third quarter of 2024 was $69 million, down from $72 million in the same quarter of 2023, indicating some improvement in debt management.
As of September 30, 2024, Weyerhaeuser had $877 million in cash and cash equivalents, with a line of credit availability of $1.5 billion, demonstrating a solid liquidity position.
Recent Acquisitions
In 2024, Weyerhaeuser continued to expand its timberland assets, acquiring 84 thousand acres in Alabama for $244 million. This strategic acquisition aligns with the company's long-term growth objectives in timberland management.
A Who Owns Weyerhaeuser Company (WY)
Major Shareholders
As of 2024, Weyerhaeuser Company (WY) has a diverse shareholder base. The largest shareholders include institutional investors and mutual funds. The top five shareholders are:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| Vanguard Group Inc. | 79.8 million | 12.1% |
| BlackRock Inc. | 73.5 million | 11.1% |
| State Street Corporation | 36.5 million | 5.5% |
| Wellington Management Group LLP | 28.4 million | 4.3% |
| Invesco Ltd. | 25.1 million | 3.8% |
Insider Ownership
Insider ownership in Weyerhaeuser is relatively modest. Key executives and board members own approximately:
- Executive Officers: 1.2% of total shares outstanding
- Board of Directors: 0.8% of total shares outstanding
Institutional Ownership Trends
Institutional ownership has been gradually increasing. As of the latest reports, institutional investors hold about:
- Percentage of Total Shares Owned: 70.6%
- Number of Institutional Holders: 1,200+
Recent Stock Performance
Weyerhaeuser's stock has seen fluctuations in the market. The most recent stock price as of Q3 2024 was:
- Current Stock Price: $32.50
- 52-Week High: $40.15
- 52-Week Low: $29.85
Market Capitalization
The market capitalization of Weyerhaeuser Company is approximately:
- Market Cap: $21.5 billion
Dividend Payments
Weyerhaeuser Company is known for its consistent dividend payments. The latest dividend details are:
- Annual Dividend Per Share: $1.68
- Dividend Yield: 5.2%
Summary of Financial Performance
For the year-to-date 2024, Weyerhaeuser reported the following financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $1.681 billion | $2.022 billion | $5.416 billion | $5.900 billion |
| Operating Income | $78 million | $353 million | $544 million | $908 million |
| Net Earnings | $28 million | $239 million | $315 million | $620 million |
| Earnings Per Share | $0.04 | $0.33 | $0.43 | $0.85 |
Weyerhaeuser continues to maintain a strong presence in the timber and forest products industry, with a robust ownership structure that supports its operations and growth strategies.
Weyerhaeuser Company (WY) Mission Statement
Company Overview
The Weyerhaeuser Company, listed on the NYSE as WY, is one of the largest private owners of timberlands in the United States and a leading manufacturer of wood products. The company's mission statement emphasizes sustainability, innovation, and commitment to customer service while leveraging its extensive resources in timber and wood products.
Mission Statement
As of 2024, Weyerhaeuser’s mission statement focuses on providing sustainable wood products while ensuring environmental stewardship and supporting the communities in which they operate. The company aims to enhance the quality of life for its customers, employees, and shareholders through responsible forest management practices and innovative products.
Financial Performance Overview
In the third quarter of 2024, Weyerhaeuser Company reported a significant decrease in financial performance compared to the same period in 2023. Here are the key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $1,681 million | $2,022 million | $(341 million) (-17%) |
| Costs of Sales | $1,431 million | $1,520 million | $(89 million) (-6%) |
| Operating Income | $78 million | $353 million | $(275 million) (-78%) |
| Net Earnings | $28 million | $239 million | $(211 million) (-88%) |
| Earnings per Share (EPS) | $0.04 | $0.33 | $(0.29) |
Segment Performance
Weyerhaeuser operates in multiple segments, including Timberlands, Wood Products, and Real Estate, Energy, and Natural Resources (ENR). Below is a summary of performance by segment for Q3 2024 compared to Q3 2023:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change |
|---|---|---|---|
| Timberlands | $357 million | $380 million | $(23 million) (-6%) |
| Wood Products | $1,235 million | $1,537 million | $(302 million) (-20%) |
| Real Estate & ENR | $89 million | $105 million | $(16 million) (-15%) |
Market Conditions and Trends
In 2024, the market conditions have been challenging due to fluctuating demand and pricing pressures in the lumber and OSB sectors. The Random Lengths Framing Lumber Composite price averaged $383 per MBF, with a notable increase in prices during the quarter from $366 to $396 per MBF. Conversely, OSB pricing saw a decrease from $352 to $344 per MSF.
Environmental and Social Responsibility
Weyerhaeuser is committed to sustainability and responsible forest management, aiming to reduce its carbon footprint and enhance biodiversity. The company's initiatives include:
- Implementing forest management practices that are certified by third-party organizations.
- Investing in renewable energy projects and carbon capture technologies.
- Engaging with local communities to support social and economic development initiatives.
Liquidity and Capital Resources
As of September 30, 2024, Weyerhaeuser reported significant liquidity with:
- Cash and cash equivalents: $877 million
- Availability on credit line: $1.5 billion
The company anticipates capital expenditures for 2024 to be approximately $420 million.
Conclusion on Financial Outlook
Despite the financial setbacks observed in 2024, Weyerhaeuser remains poised to leverage its strong market position and commitment to sustainability to navigate challenges ahead. The focus on innovation and operational efficiency will be critical in enhancing shareholder value in the coming years.
How Weyerhaeuser Company (WY) Works
Business Overview
Weyerhaeuser Company (WY) operates as a leading timber, land, and forest products company. The company is structured into three primary segments: Timberlands, Wood Products, and Real Estate, Energy, and Natural Resources (ENR).
Financial Performance
As of the third quarter of 2024, Weyerhaeuser reported significant changes in its financial metrics compared to the same period in 2023:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $1,681 million | $2,022 million | ($341 million, -17%) |
| Costs of Sales | $1,431 million | $1,520 million | ($89 million, -6%) |
| Operating Income | $78 million | $353 million | ($275 million, -78%) |
| Net Earnings | $28 million | $239 million | ($211 million, -88%) |
| Earnings per Share | $0.04 | $0.33 | ($0.29) |
Segment Performance
The performance of Weyerhaeuser's business segments in Q3 2024 is detailed below:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change |
|---|---|---|---|
| Timberlands | $357 million | $380 million | ($23 million, -6%) |
| Wood Products | $1,235 million | $1,537 million | ($302 million, -20%) |
| Real Estate, Energy and Natural Resources | $89 million | $105 million | ($16 million, -15%) |
Cash Flow and Capital Expenditures
For year-to-date 2024, Weyerhaeuser reported the following cash flow metrics:
| Cash Flow Metric | Amount (2024) | Amount (2023) | Change |
|---|---|---|---|
| Net Cash from Operations | $790 million | $1,145 million | ($355 million, -31%) |
| Net Cash from Investing Activities | ($381 million) | ($982 million) | $601 million (improvement) |
| Capital Expenditures | $267 million | $251 million | $16 million (increase) |
Debt and Liquidity
As of September 30, 2024, Weyerhaeuser's liquidity position included:
- Cash and cash equivalents: $877 million
- Availability on line of credit: $1.5 billion
- Long-term debt: $210 million, with a weighted average interest rate of 8.314%
Market Conditions and Pricing Trends
In Q3 2024, the market for wood products faced challenges due to cautious buyer sentiment. The average pricing was:
- Random Lengths Framing Lumber Composite Price: $383/MBF
- OSB Composite Price: $346/MSF
These prices reflect a decrease from previous quarters, influenced by supply chain adjustments and increased duties on Canadian lumber imports.
Production Volumes
Weyerhaeuser's production volumes for Q3 2024 compared to Q3 2023 are as follows:
| Product | Q3 2024 Volume | Q3 2023 Volume | Change |
|---|---|---|---|
| Structural Lumber (MBF) | 1,116 | 1,184 | (68) |
| Oriented Strand Board (MSF) | 675 | 683 | (8) |
| Engineered I-joists (Lineal Feet) | 36 | 42 | (6) |
Environmental and Regulatory Factors
As a REIT, Weyerhaeuser is generally not subject to federal corporate income taxes on REIT taxable income distributed to shareholders. However, it is required to pay corporate income taxes on earnings generated by its Taxable REIT Subsidiaries (TRSs).
How Weyerhaeuser Company (WY) Makes Money
Revenue Segments
Weyerhaeuser Company generates revenue through three primary segments: Timberlands, Real Estate, Energy and Natural Resources (ENR), and Wood Products.
Timberlands
The Timberlands segment includes the management and sales of timber, which is a significant source of revenue. In the third quarter of 2024, net sales from this segment were $357 million, a decrease from $380 million in the same quarter of 2023. Year-to-date net sales for 2024 were $1.153 billion, down from $1.259 billion in 2023.
| Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Year-to-Date 2024 ($ millions) | Year-to-Date 2023 ($ millions) |
|---|---|---|---|---|
| Net Sales | 357 | 380 | 1,153 | 1,259 |
| Delivered Logs | 318 | 342 | 1,025 | 1,131 |
| Stumpage and Pay-as-Cut Timber | 14 | 12 | 38 | 43 |
| Recreational and Other Lease Revenue | 19 | 19 | 57 | 54 |
Real Estate, Energy and Natural Resources
This segment encompasses sales from real estate and energy resources. For Q3 2024, net sales were $89 million, compared to $105 million in Q3 2023. Year-to-date net sales increased to $305 million from $286 million in the previous year.
| Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Year-to-Date 2024 ($ millions) | Year-to-Date 2023 ($ millions) |
|---|---|---|---|---|
| Net Sales | 89 | 105 | 305 | 286 |
| Real Estate | 59 | 79 | 220 | 198 |
| Energy and Natural Resources | 30 | 26 | 85 | 88 |
Wood Products
The Wood Products segment includes the manufacturing and sale of various wood products. In Q3 2024, net sales were $1.235 billion, down from $1.537 billion in Q3 2023. For the year-to-date period, net sales decreased to $3.958 billion from $4.355 billion.
| Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Year-to-Date 2024 ($ millions) | Year-to-Date 2023 ($ millions) |
|---|---|---|---|---|
| Net Sales | 1,235 | 1,537 | 3,958 | 4,355 |
| Structural Lumber | 451 | 570 | 1,414 | 1,658 |
| Oriented Strand Board | 206 | 284 | 749 | 707 |
| Engineered Solid Section | 175 | 216 | 543 | 600 |
| Engineered I-Joists | 95 | 122 | 301 | 335 |
| Softwood Plywood | 38 | 42 | 121 | 127 |
| Medium Density Fiberboard | 42 | 40 | 123 | 120 |
| Complementary Building Products | 158 | 184 | 475 | 551 |
Financial Performance Overview
Overall, Weyerhaeuser's net sales for Q3 2024 totaled $1.681 billion, a decrease of $341 million from $2.022 billion in Q3 2023. Year-to-date net sales were $5.416 billion, down from $5.900 billion in the previous year. The company reported net earnings of $28 million in Q3 2024, a significant drop from $239 million in Q3 2023. Year-to-date net earnings decreased to $315 million from $620 million.
| Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Year-to-Date 2024 ($ millions) | Year-to-Date 2023 ($ millions) |
|---|---|---|---|---|
| Net Sales | 1,681 | 2,022 | 5,416 | 5,900 |
| Operating Income | 78 | 353 | 544 | 908 |
| Net Earnings | 28 | 239 | 315 | 620 |
| Earnings Per Share | 0.04 | 0.33 | 0.43 | 0.85 |
Cost of Sales and Operating Income
Weyerhaeuser's cost of sales for Q3 2024 was $1.431 billion, down from $1.520 billion in Q3 2023. Year-to-date, costs of sales decreased to $4.407 billion from $4.560 billion in the prior year. The operating income for Q3 2024 was $78 million, a decline from $353 million in Q3 2023, while year-to-date operating income fell to $544 million from $908 million.
| Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Year-to-Date 2024 ($ millions) | Year-to-Date 2023 ($ millions) |
|---|---|---|---|---|
| Cost of Sales | 1,431 | 1,520 | 4,407 | 4,560 |
| Operating Income | 78 | 353 | 544 | 908 |
Debt and Liquidity Position
As of September 30, 2024, Weyerhaeuser had $877 million in cash and cash equivalents, with an additional $1.5 billion available on its line of credit. The company had a long-term debt of $4.864 billion with a weighted average interest rate of 8.314 percent. The company aims to maintain a capital structure that provides financial flexibility.
| Category | Amount ($ millions) |
|---|---|
| Cash and Cash Equivalents | 877 |
| Available Line of Credit | 1,500 |
| Long-Term Debt | 4,864 |
| Weighted Average Interest Rate | 8.314% |
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Article updated on 8 Nov 2024
Resources:
- Weyerhaeuser Company (WY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Weyerhaeuser Company (WY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Weyerhaeuser Company (WY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.