Weyerhaeuser Company (WY) Q3 2022 Earnings Call Transcript

Weyerhaeuser Company (NYSE:WY) Q3 2022 Results Conference Call October 28, 2022 10:00 AM ET

Company Participants

Andy Taylor - Director of Investor Relations

Devin Stockfish - Chief Executive Officer

David Wold - Chief Financial Officer

Conference Call Participants

Susan Maklari - Goldman Sachs

Anthony Pettinari - Citi

George Staphos - Bank of America

Mike Roxland - Truist Securities

Mark Wilde - Bank of Montreal

Mark Weintraub - Seaport Research Partners

Paul Quinn - RBC Capital Markets

Kurt Yinger - D.A. Davidson

Operator

Greetings, and welcome to the Weyerhaeuser Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. 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 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 third quarter GAAP earnings of $310 million or $0.42 per diluted share on net sales of $2.3 billion. Adjusted EBITDA totaled $583 million in the third quarter. This is approximately 52% lower than the second quarter and was largely driven by further softening in lumber and OSB pricing as cautious sentiment weighed on the near-term housing and macroeconomic outlook.

Additionally, and to a lesser degree, third quarter results were also impacted by the work stoppage in our Washington and Oregon wood products and timberlands operations. The work stoppage commenced on September 13 and impacted our 4 lumber mills in the Northwest as well as a portion of our Western Timberlands operations. I'm pleased to report that as of last night, we've resolved the work stoppage, and we'll begin resuming operations next week.