Weyerhaeuser Company (WY) Q4 2022 Earnings Call Transcript

Weyerhaeuser Company (NYSE:WY) Q4 2022 Results Conference Call January 27, 2023 10:00 AM ET

Company Participants

Andy Taylor - VP, IR

Devin Stockfish - CEO

Davie Wold - CFO

Conference Call Participants

Susan Maklari - Goldman Sachs

George Staphos - Bank of America

Anthony Pettinari - Citi

Ketan Mamtora - BMO Capital Markets

Mark Weintraub - Seaport Research Partners

Mike Roxland - Truist Securities

Paul Quinn - RBC Capital Markets

Kurt Yinger - D.A. Davidson

Operator

Greetings, and welcome to the Weyerhaeuser Fourth Quarter 2022 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 Andy Taylor, Vice President of Investor Relations. Thank you. Mr. Taylor, you may begin.

Andy Taylor

Thank you, Melissa. Good morning, everyone. Thank you for joining us today to discuss Weyerhaeuser’s fourth quarter 2022 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 full year GAAP earnings of $1.9 billion or $2.53 per diluted share on net sales of $10.2 billion. Excluding special items, our full-year 2022 earnings totaled $2.2 billion or $3.02 per diluted share. Adjusted EBITDA totaled $3.7 billion for the year.

For the fourth quarter, we reported GAAP earnings of $11 million or $0.02 per diluted share on net sales of $1.8 billion. Excluding an after-tax charge of $160 million for the special items, we earned $171 million or $0.24 per diluted share for the quarter. Adjusted EBITDA was $369 million. This is a 37% decrease from the third quarter and was largely driven by further softening in Wood Products markets as cautious sentiment continued to weigh on the near-term housing and macroeconomic outlook.