Weyerhaeuser Company (WY) Q1 2023 Earnings Call Transcript

Weyerhaeuser Company (NYSE:WY) Q1 2023 Earnings Conference Call April 28, 2023 10:00 AM ET

Company Participants

Andy Taylor – Vice President-Investor Relations

Devin Stockfish – Chief Executive Officer

David Wold – Chief Financial Officer

Conference Call Participants

Anthony Pettinari – Citi

Ketan Mamtora – BMO Capital Markets

Susan Maklari – Goldman Sachs

Kurt Yinger – D.A. Davidson

Paul Quinn – RBC Capital Markets

Mark Weintraub – Seaport Research Partners

Buck Horne – Raymond James

George Staphos – Bank of America

Operator

Greetings, and welcome to Weyerhaeuser First 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]

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

Andy Taylor

Thank you, Rob. Good morning, everyone. Thank you for joining us today to discuss Weyerhaeuser’s first 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 David 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 first quarter GAAP earnings of $151 million or $0.21 per diluted share on net sales of $1.9 million. Adjusted EBITDA was $395 million, a 7% increase over the fourth quarter of 2022. These are solid results, and I’m pleased with the operational and financial performance delivered by our team despite various market and weather-related challenges throughout the quarter.

Turning now to our first quarter business results. I’ll begin with Timberlands on Pages 6 through 9 of our earnings slides. Timberlands contributed $120 million to first quarter earnings. Adjusted EBITDA was $188 million, a 25% increase compared to the fourth quarter.

In the West, adjusted EBITDA increased $33 million compared to the fourth quarter, largely driven by increased sales volumes in domestic and Chinese markets and lower per unit log and haul costs. These favorable results were partially offset by lower sales realizations.