Weyerhaeuser Company (NYSE:WY) Q3 2023 Earnings Conference Call October 27, 2023 10:00 AM ET

Company Participants

Andy Taylor - Vice President of Investor Relations

Devin Stockfish - President and CEO

David Wold - Senior Vice President and Chief Financial Officer

Conference Call Participants

George Staphos - Bank of America Merrill Lynch

Kurt Yinger - D.A. Davidson

Anthony Pettinari - Citi

Susan Maklari - Goldman Sachs

Michael Roxland - Truist Securities

Paul Quinn - RBC Capital Markets

Mark Weintraub - Seaport Research Partners

Ketan Mamtora - BMO Capital Markets

Operator

Greetings, and welcome to Weyerhaeuser Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Andy Taylor, Vice President of Investor Relations. Thank you, Mr. Taylor. You may begin.

Andy Taylor

Thank you, Rob. Good morning, everyone. Thank you for joining us today to discuss Weyerhaeuser's third quarter 2023 earnings. This call is being webcast at www.weyerhaeuser.com. Our earnings release and presentation materials can also be found on our website. Please review the warning statements in our press release and on the presentation slides concerning the risks associated with forward-looking statements. As forward-looking statements will be made during this conference call. We will discuss non-GAAP financial measures, and a reconciliation of GAAP can be found in the earnings materials on our website.

On the call this morning are Devin Stockfish, Chief Executive Officer; and Davie Wold, Chief Financial Officer.

I will now turn the call over to Devin Stockfish.

Devin Stockfish

Thanks, Andy. Good morning, everyone, and thank you for joining us. Yesterday Weyerhaeuser reported third quarter GAAP earnings of $239 million or $0.33 per diluted share, a net sales of $2 billion. Adjusted EBITDA totaled $509 million, a 9% increase from the second quarter. These are solid results and I'm proud of the performance delivered by our teams during the quarter.

Turning now to our third quarter business results, starting with Timberlands on Pages 6 through 9 of our earnings slides. Timberlands contributed $78 million to third quarter earnings. Adjusted EBITDA was $143 million, a $29 million decrease compared to the second quarter, largely driven by lower sales volumes in our Western and Southern operations, and lower average sales realizations for Western export volumes. In the West, adjusted EBITDA decreased by $22 million, compared to the second quarter.