WY - Earnings call transcript Q3 2021

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Operator

Greetings and welcome to the Weyerhaeuser Third Quarter 2021 Earnings Conference Call. At this time, all participants are on listen-only mode. After the speakers remarks, there will be a question and answer [Operator instructions] As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host for today's call. Andy Taylor, Director of Investor Relations. Mr. you, Thank may you Taylor begin. (ph),

Andy Taylor

being Thank you for XXXX everyone. is you Good us (ph). Earnings. today call Quarter morning joining Third to Thank 's www.weyerhaeuser.com. Rob discuss at webcast This Weyerhaeuser

will release conference risks website. review release associated statements our and with earnings found our presentation call. the forward-looking statements Please and also forward-looking the can Our be be materials slides this on on in warning made during press presentation concerning as the

measures and found financial reconciliation of materials We our be non-GAAP will a GAAP can in on discuss earnings the website.

Devin On Chief turn the call this morning Financial Stockfish. will Devin Officer, of Chief Nancy now Officer. to I Stockfish, Loewe, and over call the Executive

Devin Stockfish

This million morning, of billion. reported GAAP Andy. earnings $X.XX of net Quarter or Weyerhaeuser Thanks, morning, thank Good you today. Great. Third $XXX diluted and $X.X sales everyone, share per on for us joining

share. earned COVID-XX we Excluding million, or our continued $X.XX a net each ongoing across weather-related of benefit businesses. diluted challenges. chain supply special and the with of item Despite we disruptions, million $XXX strong after-tax results In the Third pandemic, $XX a per delivered Quarter,

EBITDA XXXX. safely supply continuing their billion Great these Our chain incredibly $X.X our distribution. of in more earnings we've Year-to-date I'm in available job of and flow focus a the funds difficult cash entire collective across operating generated adjusted execution environment, $X.X which record has to resulted and of on in in for teams efforts navigating headwinds, than businesses adjusted billion serve proud our and truly. did exceptional an and customers

announced from the July peak can of the above somewhat September lumber finish X quarter. log lever COVID-related we Timberlands the increased Second million in and and of a dollars wildfire of August. salvage a EBITDA work continued quarter, log done Quarter. increased second producers our EBITDA resulting domestic over salvage by in Cascades operations compared Western discussion our quarter. and decreased the season. domestic Adjusted Demand begin the comparable slides. completed bolster wildfires, $XX approximately normal by the headwinds, in number XXXX these $XX to Salvage supply. West, Oregon in efforts managing inventories with job a But by previously by log gain markets quarter mills favorable as quarter included North and this sale third started levels. most sales in elevated our conclude through to million during strong business by to disruptions compared the domestic earnings as despite expect Quarter, now Turning prices have were I'll decreased ample results. Third second outstanding in which adjusted million of prices realizations Despite Quarter our the earning To year. these the Timberlands of weakening $XX year-end. date, to harvest pages Timberland. we've last on remain inventories Third our X continue The XX% log of $XX experienced the the million planned to the In position driven on an to teams

months the summer, transitioned the higher-elevation drier in during higher-cost and warmer we expected, to As and operations.

damage activity Oregon. wildfire timberlands, resulted in in on in minimal particularly the and the conditions very experienced dry harvest region fires across we although Additionally, to restrictions our quarter, active our

higher. the sales a per domestic and fee harvest costs result, quarter, log and were in modestly haul and volumes our lower As unit were third

logs. of robust by continue market driving containers. ongoing our for increased our to markets. and be the In for Turning is our into shortage our global the in strong logs export imports Japan, from Europe customers, demand remains third This Lumber share restricted shipping to quarter. dynamic demand for Japan

COVID log despite Japanese demand moderately lower favorable and for our the compared to logs our consumption, continue to impacts Australian constrained sales quarter, In comparable. the activity to disruptions. container result, be as remained sales global China, by in logs. second seasonally Imports and shipping a as, availability, the China volumes realizations construction into and well increased were chain quarter, of log ban lumber other on As supply

Second result, volumes a by But rates. to moderately China were to sales As than Second Quarter. freight China for our offset increased realizations export to Sales ocean Quarter. more comparable the higher compared logs the we're

Moving to the South.

EBITDA the to Second was comparable Quarter. Southern adjusted Timberlands

and from to sawlog fiber log weather as Southern and remain wet events. supply conditions significant and continued constrained ongoing resulting strengthen markets inventories lean, was mill

realizations As planned and our Hurricane slightly our in activity but sales result in road a and the volumes the as Ida. operational wet slightly and cost. from increased harvest higher log second increased quarter, than slightly fell did persistent below level quarter, were sales disruptions forestry cost result, a as of unit quarter. and weather, haul Fee Per third the

see growing our for southern to logs. continue we side, export demand the On

increased though lower in In lower to increased rates. volumes quarter. Sales second higher the adjusted to log container to second Our coming slightly North, mix. continue spring substantially challenges compared than we availability decreased third pricing of sales the with significantly as associated and freight the quarter but realizations export were quarter, out break-up due were volumes face conditions were EBITDA

earnings EBITDA. ENR natural Real contributed Estate to and third million resources million real $XX energy, on quarter and to pages to XX. and Turning estate, $XX XX adjusted

the adjusted weighted quarter but timing Third Similar comparable of XXXX quarter. the second been real EBITDA year-ago first estate million due last of year, activity than half quarter year. lower to transactions, our sales $XX to the heavily to toward the was has

due than the earnings sold. of to the of Third property XXXX to Quarter compared Third mix more doubled Quarter

high-value capitalize transactions strong for demand to premiums timber in with HBU We resulting properties, on continue value. significant to

decreased later lumber the pages quarter. pricing in Wood earnings as compared by stabilizing before Products, quarter Wood to substantially EBITDA levels Moving OSB approximately XX record XX. in XX% earlier the the Products year to from and prior and adjusted declined through

U.S. in weather Additionally, events the

production Hurricane teams disruptions, in and these strong including and staffing together with delivered South, in lumber And business. Despite related well downtime, the in challenges exacerbated COVID results. performed transportation Ida, our resulted further headwinds, loss temporary region. our

a established new quarter business has more elevated repair do-it-yourself third in remodel of Wood EBITDA record Products inventory and quarter, the activity. third than adjusted markets the overall to billion. $X.X achieved began center and EWP EBITDA softening the year-to-date home segment with due Our Lumber quarterly levels treater and

from When the to repair August. pricing and and home market much result, gradually and July dynamics inventories activity, a Second Third Quarter. lumber remodel which cause our of The and treaters as September. remained remodel EBITDA for repair later late construction As back spending $XXX stabilize the centers compared Day. healthy with worked throughout solid professional to each activity August after new business, the quarter for and in through decreased continued Adjusted do-it-yourself downward increased to and through its pricing home trajectory began in in shifted strengthen excess to and of demand Quarter. combined consumer These Labor million

by Third Our sales composite the lumber XX%. XX% decreased framing pricing by while the realizations decreased Quarter, in

sales and of primarily increased higher log OSB the inventories remodel and can centers. Our we volumes the lower softening at do-it-yourself dynamic sales repair the Canadian the slightly, moderately of at with and significantly market, home in third activity, activity. This for quarter drove the outset Third costs The logs. Quarter, increased

historical in in that the from in we a and OSB the do-it-yourself with pricing for constraints peak activity as Pricing repair continued, record As by quarter July. result, market dynamic, our This $XXX resulting prices rapid a reached remodel the demand, through new the stabilized availability quarter. higher decreased strong EBITDA gradually decline business from along we and [Indiscernible] improvement million August late September. above from to ongoing average second in faced supply transportation home compared drove then prices experienced challenges. construction and demand Adjusted

Our of the third composite sales while in pricing This products. largely decreased higher our premium a of OSB realizations out-performance decreased XX%. the percentage by quarter, result OSB relative was by XX%

significantly sales XX% to improved costs. slightly to A for quarter. quarter. for primarily Despite for products the by manufacturing million resin lower higher cost lower production lower moderately offset was of and modestly Sales Our second veneer. Sales across from volumes continue the volumes annual in increases compared maintenance. $XX EBITDA margins adjusted to section less maintenance during most material as from planned increased Products discuss Unit that, distribution, fourth delivered for correction, to second did sales adjusted the a costs planned announced and the third quarter. financial for navigating Wood stock, due $XX price turn production the resulting Engineered solid in the to improvement. in items we for the commodity a increased $XX improved Nancy a significantly over products, and quarter challenges most million OSB result decreased web In adjusted downtime realizations EBITDA job partially and third these quarter million benefit our and call and price This outlook. were With great I will products. teams compared resin, most quarter. by raw and products, our some to EBITDA previously volumes I-joist of

Nancy Loewe

the distribution Year-to-date, morning, XXXX everyone. cash through we Devin. operating to over operations the dividend, to with shareholders begin as $X.X million returned FAD, we billion flows FAD. with our totaled XX% Quarter for XX. Third our for supplement you, will year-to-date payment XX. have dividend are to financial cash cash year-to-date year-to-date which funds targeted of and items of $XXX I'll million record. $XXX our $X.X in summarized additional achieve each total year the adjusted on bringing an of XX% our page nearly adjusted Page Thank return the and good available highlighted of on quarterly based to Third from Adjusted billion, generated We key Quarter, our highest base on or

for flow. of of year, cash normally variable we dividend. intend opportunistic prior utilize be supplemental the quarter in supplemental The dividend portion paid will year this future cash return. through each entirely cash in we For share year achieve a a Though on may repurchase first years, this based also to this

of $XXX performance, dividend significant our $X.XX a per month. the dividend the in previously interim of the first look dividend XXXX. a We through However, with supplemental announced million our to payment the supplemental forward earlier portion supplemental returning we year-to-date to accelerated record share of shareholders portion this remaining as a returning quarter result by

previously create as we share Further, $XX $X circumstances And shares it the million will under During billion we repurchase new quarter, returned third through opportunistically look a believe also share to authorized we'll value. as announced, always, shareholders when shareholder to repurchase repurchases. program. we

we note After have or to balance debt the at to our billion. to maturity, under million, with $XXX repaid we additional repayment, quarter-end, $X.X $X.X billion XXXX. Sheet, of we Balance Turning ended just and billion our X% $X.X brings approximately maturities of cash quarter debt. which the Subsequent until no this

quarter fourth XX. the In quarter third expect presented the earnings, for items to fourth outlook comparable will are on adjusted key business, forward, quarter. we Looking and our EBITDA Timberlands Page be

the domestic the fourth Turning to although in continuing takeaway ended and Timberland of lumber Western for improved have this finished log our pullback following third anticipate of higher-than-normal, most brief quarter log a operations, We dynamic demand September. quarter. inventories

expect we from result, improve As experienced sales in realizations levels the lower our September. domestic to

fourth levels. third quarter be the anticipate our For domestic than realizations moderately average to sales elevated quarter, lower we the

As in progress we expect the great our within volumes decrease fourth made to operations Devin quarter. Oregon our salvage salvage in discussed, have and

harvest per-unit haul As fourth fee higher result, to a with volumes lower expect costs. moderately be quarter and log we

comparable quarter our export lumber favorable. sales the timing due third China, activity to of be continue We to construction partially remains as demand logs to to port, demand anticipate realizations in the elevated countries. the moderately markets, be and Japan, to increases from expected elevated the seasonally, fourth logs for offset log by lower vessels. at remain volumes to levels, despite other quarter sales and inventories is of log imports favorable In constrained our Moving

Third to weather be outside the continue expect the our realizations. partially lower conditions slightly by Third Quarter. to sales offset and of a Quarter, result, at the be harvest volumes lean labor compared from load Elevated demand In Quarter fee continues freight to to reduced volumes wet to the improved Fourth We sales and higher be South, ships to inventories, costs headwinds. slightly work Log bolster than as log favorable the anticipate as mills supply. Fourth persistent we higher resulting Quarter, conditions

As we realizations during slightly fourth sales the a quarter. anticipate result, higher

activities slightly moderately log of and be in a as will a offset and planned cost, higher to were disruptions. this by due as road haul third per-unit as weather quarter well higher deferred costs portion forestry expect the our We

In harvest expected As compared a be quarter. volumes to expect quarter, to comparable and persistent fee result are the fee mix conditions volumes in third sales XXXX XXXX. harvest slightly of to to lower events be and significant to are be wet North, also the in we Southern weather expected to the full-year now slightly due realizations third lower

natural earnings of to due third quarter our segment, will and than fourth lower EBITDA resources Turning estate significantly real transactions. energy and to be quarter adjusted timing

to predict for and a real as million XX XXXX-line $XXX to be approximately expect XX% to the be continue will full estate We basis full-year adjusted we EBITDA approximately sales percentage year. now of

residential and September. for For from our remains activity new continues most quarter seasonally strong before repair to continues segment, improvement dynamic This and activity the construction strengthen of do-it-yourself the into following Products Wood weakening the in remodel winter. demand in segment

and and EBITDA sales changes realizations will lumber effective adjusted the expect quarter. board, than for average the in higher strand fourth-quarter Excluding oriented be earnings we third

be are the comparable expected third quarter. volumes production For lumber, to to

to down be expected resulting the anticipate quarter. this lower slightly in by offset be lower, experienced improved third volumes unit and manufacturing are inventory our However, we the modestly log cost will draw cost. from We sales

XX, shown for realizations current As and on are than Page quarter slightly lumber average. our third quarter-to-date higher

higher less for downtime oriented improved fourth planned For the maintenance board, unit moderately quarter. sales we strand and due manufacturing primarily volumes cost, to during anticipate

by We higher be cost. fiber moderately partially expect this offset will

for shown compared average, historical quarter oriented Page our As still realizations third current but XX, on elevated than lower board significantly to quarter-to-date are and the strand standards.

more Wood Engineered for costs, products will offset be Products, realizations expect for will raw web plywood We OSB realizations lower. comparable significantly material be while by sales for section and stock. lower For I-Joist primarily anticipate be will this we solid than

fourth supply million previous potentially as a items partially or For expecting with financial to quantity outlook total our million our the business, a primarily at margins higher and on anticipate due quarter, with of lower our risk. $XX to below $XXX couple seasonally we comments are constraints EBITDA in sales Company volumes. be adjusted by of contract improved expenditures wrap for items. We distribution our offset additional up $XX chain labor capital slightly full-year now guidance result to I'll

refund our million tax Turning XXXX $XX Second the approved associated to was the contribution taxes, with during Quarter. pension

still However, awaiting refund. the are we

receive expect Fourth by XXXX. it the of Quarter We to end

expense. taxes our cash will we Excluding lower anticipate refund, this slightly now full-year tax be than

I'll Now, to Devin, look back the turn and your questions. to forward call

Devin Stockfish

Thanks, Nancy.

and slight housing repair in will housing starts from averaging the basis. activity the up remodel Quarter, wrapping a I morning, prior Before this Third markets. make Notwithstanding a and few U.S. strong the on comments million total around permits decrease housing units quarter, seasonally-adjusted with remains X.X on a

the of under-building and expect tell starts housing for a home balance in strong cycle XXXX. future. strong housing to continue reinforces to extended U.S. decade new into has labor Despite Although have of The outlook pace, time continue activity continue of current for these and between view to latest further a a long-term our demographics, sales supply construction favorable number demand us challenges. new chain starts state earlier fundamentals, availability bullish well the completions this XXXX headwinds, customers on the experience on home released the continue the home as at market. demand week builders With they favorable our housing including positive we

the and some continued Turning And and did see to strength over professional balance to home including coming the softening continue equity, out the favorable improved interest XXXX. remodel, by smaller and long-term to October. while repair and we during expect see and housing demand outlook demand segment course the repair stock, an for have a year large that summer, rates. numerous and aging the low Day, significantly and Overall, drivers, see segment activity, we've supported has for into of to rising to of Labor strong in we of repair remodel remodel do-it-yourself continued the projects XXXX through continue we've in demand from

portfolio, growing the business. and opportunity Finally, our we a participate targets, of on we Natural XXnd, growth multiyear you our Virtual had September business, including where organically Investor our strategic Timberlands hope new Climate to growing outlined Solutions in our series lumber growing Day

greenhouse and We announcing also emission leadership enhanced releasing allocation announced carbon reduction and new capital several our actions by gas record ESG our targets.

while the as These our strategy, intend of at solidify a build will returns on Weyerhaeuser is investors, well-positioned We're for we're a dividend, Weyerhaeuser, share of shareholders Investor on we marketplace, appropriate meaningful driving capital the about capitalize to opportunistic our our to and Day, our improve to future continuing ESG repurchases. our supplemental Our and simple. value invest trends and demand grow and our that portfolio, businesses. variable products flows, actions advantage in in premier ensure our competitive investment as growing to strong for We new continued cash growth the outlined superior and our we structure. through drive of All returning businesses maintain base excited opportunity. cash and dividend, macro an including opportunities for amounts

including joined taking I XX-year to a this the Investor our of to Weyerhaeuser questions, career has several assumed role. where him energy look last take IR the appreciative last this and lead turning he our been to the program. for our years. on industry, a after Relations With excited Weyerhaeuser great team forward role an Before we're really over in to of of to in October Investor Relations the Beth's next recognize Investor addition Beth We're year, thank Relations. our numerous Andy transition, team of leadership and leadership He's like new Baum roles, her served at have and Andy Beth's would to opportunity opportunity to function Taylor Company. the contributions greatly

I questions. floor open now would like to the So for up

Operator

Thank you.

we session. please, question-and-answer questions. instructions] a poll conducting while One We for will [Operator be now moment

Please Susan comes proceed with Maklari with your question from Goldman question. Sachs. Xst Our

Susan Maklari

everyone. Morning,

Devin Stockfish

Morning.

Susan Maklari

us moves do during the sitting to is industry all the terms in question inventory can as the we compare environment, pricing inventories broader demand given of around that industry? and your channel, first that in well give and worked you much through any maybe the think the quarter the My on how you color does how saw as where

Devin Stockfish

talking Products And about inventory? Wood Yeah. I assume Susan, you're

Susan Maklari

Yes.

Devin Stockfish

Sure. Yes.

So I as inventory for perhaps about to think home levels at or and generally in certain anywhere of respect channel, is time them, bit normal extent treaters with more from this think would think normal less I present, I some the we a and they for speaking, to lean than areas, year. the improvement warehouses, to the are lumber OSB across categorize inventories

I dealers, little think spots. the that's of in system, I think there's spots Products. there. of Wood normal pretty case the whole of some EWP, inventory really, so as to in well. a the little sort terms in lot perhaps in certain perhaps lean And a tight generally On don't for us We're across that's light a of

Susan Maklari

headwinds helpful. it inputs chain the that's the seeing lot up, any And as obviously read about there. And quarter. of you're of things to to as - Okay, puts some highlights in as Can some products just of you a and relates from really resins then been and throughs like a or also and areas bit any the on there's where the EWP think color us give implications there? your some of more we takes a follow supply especially then like OSB maybe other kind

Devin Stockfish

particularly chain The chain. and for of side, cuts level, across transportation challenges one that's everyone, that the from a a in on really the I'd supply have big challenge supply a I U.S. been and a been really think that has Yeah, of all standpoint lot say trucking, the there aspects at has been high

the finding been over export all the that South. a shipping containers. challenge, side rail, real bleeds and instances, many way into to It's in

is having transportation right a to now. So real really do with anything challenge

is of other about the supply a challenge labor think in you As chain, many spots. aspects

every lot much You think about read that, it's a is industry, different. I ours no impacting pretty

little we done So challenged labor of might hours challenges, really have bit to in running so. us more when otherwise us, that's a made terms extra be

labor an think issues issue. the I So industry to continue across be

tightness think the as of some there that's certainly, impacted inputs it of of a to but resin, whole. terms is operations industry resin really a impacted availability in I date, terms the and our hasn't In

out The call one a been veneer, I is other would and really as that's challenge well.

So supply the in the I we're to that's that done results has and of there really work and some think across deliver pleased team of the in are we so chain, the able entirety impacts QX. our navigating were those with delivering really, why challenges

Susan Maklari

Got you.

coloring, Thank good you. Okay. very helpful luck. That's

Devin Stockfish

you. Thank

Operator

Our proceed next with question is with from Staphos Bank of America. George Please question. your

George Staphos

everyone. Hi, Good morning. Thanks very much.

Devin Stockfish

Good morning, George.

George Staphos

to future. congratulations Andy. and Beth you with forward looking to And the in Andy, working

So the all a in on it had, particular, EBITDA I EBITDA guess expected. actually bit apply lumber wood, volumes, at I than you little chin a first little when to I your and but obviously pricing look the better would when I question than the from did bit you a held and up standpoint, better have took I that composites,

of and the cost of So on had quarter. on. last helped obviously, standpoint, And couple years that what process this for the you a working the were doing from - operations a performance number in you've been follow that the

Devin Stockfish

in touched we you George, we've a reality OpEx that's it, think and are just been an true and -- of is Yes, the -- is our doing but any absolutely that long particularly environment, work part pressures, that has where really strategy. environment the core been I a seeing really That's time in work for on inflationary

Devin Stockfish

hurdle given for to certainly environment we inflationary OpEx to mention We seeing. are didn't that's of we $XX work kudos to a through for pressures. that target year, all the really continue again, and But million the of on the high plan chain do $XX just going to critical, a that I'll which inflationary -- the the And say really meet some to do they're battle that's the our doing script. so that. some the supply manage try to we're to, teams challenges,

that out expenses delivering can doing make just we driving and really operational for really we are are our back goes -- are customers. it And what we to wherever sure So cost to on the we George. front up

George Staphos

that suggest that or be at upper range want be of juncture at that does really you don't this to you'll end on the OpEx? precise Devin,

Devin Stockfish

any I Yeah, to that more want we'll within than to range. be were that say just precise confident wouldn't be that we

George Staphos

Okay. not is for question case it the quarter, to far tax $X.XX you in for special do that's Obviously, quarter it of again, the see the at year the was you happen refund, as what and if but performance making math, us perhaps adjustments the unfair would for good for looks is has us as in third think the Xnd to your dividend guidance we CapEx lots the first fourth like range, the so when Understood. the brings, potential we'll quarter, guardrail or for and or Nancy. as the gave guidance least you how higher you being have in will? it on

Nancy Loewe

is Adjusted and less This cash Nancy. significant from George. is operations, non-recurring Hi, items. CapEx FAD

the fluctuates, capital adjust the you don't with actually cash adjusted and And know, flow OSB can't and because credit and prices. that's will our working the FAD for we tax dividend, supplemental So we changes predict that. provide lumber on or guidance we

payout we So we at adjusted targeted to do we've the That's will and be saw, supplemental each go dividend I And XX% know the think here. you FAD significant. say. is shared seen you'll what about FAD provide today see quarter we've that remainder of XX the adjusted that you will that we each as what as and of quarter is the can than

George Staphos

at some but to operating versus working would terms we the capital, your I etc.? remembering taxes, fair don't that, and good hold least stuff appreciate Are in other pricing of, say that we'll I be as things if cash side, other flow there we XQ? leave XQ in cash, be that to should know, Nancy, should constant and be

Nancy Loewe

a CapEx of our amount is Yeah. fourth because CapEx quarter our significant We'll the that's remember just and as

George Staphos

You're currently operating CapEx with excluding cash flow there. and it's

So an operating cash flow?

Devin Stockfish

up, on EBITDA I build And side, about try is standpoint. in operating to. you guided OSB talking George, you're wrong as going to it It thinking have you we mean, be Products those real quarter prices, the we the build to to it [Indiscernible] the going not the not that estate. to Wood said, about Timberlands then for to which, again, you lower we're the like obviously, for comparable when and Nancy going build up, higher is FAD. to from think you're the although, we're up But XXX so Yes, the when trying said, when CapEx flow, Yeah lumber cash predict, calculate we're to be I

George Staphos

last My were over. I lack to hit quarter. other in the it why being more in But markets supply good able you just assume southern exports course. I'll a the common Of quarter. turn the and give it's question bit and luck log of if of terms the us chain could Asia. strong the Thanks,

Devin Stockfish

sure. global logs. particularly chain China, Australian European there's that into going containers there the our market you of terms Yeah really markets are X, supply And some that's in of and in been for into ban as issues, mentioned, going wood strained, India And Southern primarily China Number overall shipping export. on a it's George, things. a have also combination a few

for North Pakistan, into India. so up, really seen Turkey China, And shipping into American going up, but seen so that's wood well. really opened up some true Coming started demand for that's also that and the demand we've spike and opportunities as we've we've

good, global so And for we're from seeing just and the strong demand logs, Southern

George Staphos

stand there's when out logistical particularly good, availability a for standpoint, start can the container challenge these shipping of strong going availability. future, some pine into -- and with we really we us market yellow think resolving

Devin Stockfish

Thank you, Devin.

George Staphos

you. Thank Yup.

Operator

Our next [Indiscernible] question

Mark

sort three what my phase-in know cadence, a understanding over these you how me a given would've about increases told [Indiscernible] know, people have four quarter typically you've last but price expected, always year, I larger and got lot I was period. over of than that the of those increases or

Devin Stockfish

terms pricing Yeah over timeline Mark. increases in how Well, of a period. place, multi-quarter the typically absolutely take you're it is for right those

over each about quarter, in though number what's of and so start veneer, of going in layered is input the like really been that's more we We to think price had still And I resin, both on of that generally increases have take the terms previously market, year, in to on the of of have the etc., last is increases just that pricing other answer, speaking, dynamics the and increases. coming the given we've they of costs saw several way this top respect sort hold. think to other. price announced a of OSB the just price those some with the

than little customers, did is, think. and QX a of on So layered otherwise QX always it's regions have The generally speaking, that year on and and we'll perhaps the is, we just increases of QX bit kind I it's would But only a so thing the last dependent see on top more little say more. price over number front might other. bit that a you particular each of in answer see

Mark

And maybe little but forward was the be southern data the take the a fully just such reflected three we had pricing, with question going have you're trade, of little it timber timber just there's or second than bit, around people more in talking because the up sell But it not was around Okay. log pickup showing a you're that I markets you a while four a starting seems like much. in on in occur, do selling to or curious, forward and quarters? mart if your I'm you're numbers, because would you that are showing, in pickup to a

Devin Stockfish

Yes.

in to the certainly correct So that some of with respect South. we volume our that's sell

reflected which time. real-time. those of a spot But will which indexes. we prior a through lot quarterly the reflect also including pricing do are methods, quarter obviously sell we variety of So prices,

a And will lag run-up, so in in to extent pricing see the there South. log be the you a

Mark

in we X there business, Southern next, don't you've put boat basically X higher which this in should case And export containers Pacific the dedicated know, years, for in whereas actually Is the the In Okay. now, be dedicated log South, years, on stuffing ships some log got place? cost. we're then business. over Northwest to freight finally, I any I think right logs the has shipping export

Devin Stockfish

up like the Ultimately, that's we we'd Yeah, the break-bulk. from that container where Mark. to shipping build over to transfer Well, size goal. the can to program that

So that's the goal.

headwind ago was years a that tariffs us some the with we're think little That - we were a Southern the demand back but come size We those as building do China direction pre up. trade Southern when on had bit growing. yellow yellow been with really that of I in dispute a pine there making in program of We bit. we've tariffs set the That have progress. few for the China. off, good see a pine, back heading

seen the think over levels that logs few with next an be going European think the follow. into market interesting that will we beetle have I logs of interesting here will we've see the infestation I from then export seen of we dynamic And you X, X, dynamics ban elevated to Russia, after some there. know, years. that

so then view the volume's or opens up I start yellow should that And to another over opportunity is just that think next again, for year pine. peaking and over Our maybe diminish time. Southern

Mark

if to us of go order on an can does shipping And magnitude that what you break-bulk, give to costs? Devin, you

Devin Stockfish

Yeah.

true top market there's much of the versus even about certainly it's of it we've can so to containers, more But that the no with container, any environment. the But versus hard question would are if shipping can seen you conditions, pressures think when to right Mark, in question off container. for that's break-bulk in you to be we and go today's particularly it'd now it, on better my you better economics head, I but no follow up. me be economics right think break-bulk inflationary give

Mark

over. it turn Thanks, Devin. will I Great.

Devin Stockfish

Thanks, Mark.

Operator

your Weintraub next Seaport question. from with Our comes proceed Mark with Please question Global.

Mark Weintraub

Good you. Thank morning.

-- First

Devin Stockfish

Morning.

Mark Weintraub

that heard just exchange. little to look third is bit, make OSB they're sort 's just be a the higher because like wanted it fourth question. total operations just quarter by the clarify a the really And thought saying, wanted the would today, and saying, you to lumber prices probably clarify what I'm in me, I quarter? doesn't are from I I if case to be going somewhat sense or guess that George would be where if to to that they than Were stayed that were of little cash I you First confused you -- answer they lower?

Devin Stockfish

Yes.

really lumber were are EBITDA just try absent OSB and know impact which we to sales, you we pricing don't as forecast. to So the which speaking of

Mark Weintraub

just of provided level, that from where do a they pricing hold you type you assume where quarter-to-date we want have to they and are indication But that? give sense were to off so Right. or us currently, you if are of an can

Devin Stockfish

so Well, about right, mind but lumber think bit OSB pricing, up quarter-to-date pricing in they're keep I to QX. think but a quite if we little bit, just a still is relative down

you lower today's took pricing, if So quarter-over-quarter. be it obviously would then

Mark Weintraub

was in there But on guess a OSB, of back. just thing so pointed I pricing does in give do week that's up, today the that way in we that and is what's to what really that another -- out current on reflective the random show And is misunderstanding. a back -- reflective of the or you was several that wanted lag weeks though, you lengths random what length the I when Okay. slide number, clarify is what several that thought,

some built-in we've in -- that amount a this So few already ramp weeks? got up coming -- the

Devin Stockfish

when to on lag realizations. and realizations length, about today there's where And see to of files order to three-to-five-week that going a with have effect. at relative we to about talk relative pricing our creates Yes, a talk you're when the particularly order always OSB we going be lag that what's terms because a lagging we're we random in file, our targeting going links, random comparable

Mark Weintraub

on as for to business, lastly, that of implications other make expecting for we cetera, Do the strength or sense we've patterns well What more year seasonal could noted have me et certainly counter-seasonally? your at out and this bullish as, a seen for it's that it your Wood you do the next a of Are there's And are view you you going balance then comments that lot -- this or Products housing, businesses. normal to that most quarter? likely grayish see strong underlying think play enough in point?

Devin Stockfish

Yeah.

customers as to from they as try tell many builder So build our you we they're I homes hear what going can. will which is, to home

what think from going try pedal So I metal. the and standpoint they're of it's to to to the demand do, signal

they've are the that One, Now, the caveats had. two-fold. on to chain supply largely manage can they whether issues depends that that really through

you're that see just with meet at we to can of do a held look and yet conversations, no weather, that the to But deeper there, obviously manage There's right and a northern back the much our could impact to an new the issues not you as the continues and otherwise to tell the have whether so expecting regions have through and you QX. get to still number, that customers in that you I standpoint, as saw. paint, strong as you can wildcard products I on demand lot housing can it. I that To windows doors other at might there's So started homebuilding and or struggle start quarter demand squeeze homebuilders rain probably can possibly year. some from or have on the are just can other the what permitted we goes I the get going into just can fourth think trying of the that mild a of that a a And the are that's in balance, they doubt the given be, the our and you governor. that it extent, be to what there number from get is think sales seen level big events etc., just that we extent out out extent weather we're getting winter a weather. think they we lot will you seeing now. into issue market if look just home And weather early is

Mark Weintraub

just clarification. quick, one, Last Thanks.

web had which third that understand higher wanted OSB little bit third just me a missed puzzle I or in the given in in think you something. that mentioned in quarter a the quarter, were so guess than second maybe EWP costs I the lower OSB business that the I prices bit quarter, you to more

Devin Stockfish

that lag. OSB that just just that web cost is again, business. our for goes -- stock talk when sales OSB from to OSB the own almost Yeah, And to when web exclusively coming we about we about -- talk Remember, back goes

think, that -- that kind so rolls I a pricing on, rolling dynamics. And of XX-week average

see -- but a you So will QX. bit, you that lag that up see show in little

Mark Weintraub

Thanks Got much. it. very

Operator

proceed Our comes Quinn next question. with from your question Markets. Capital with RBC Paul Please

Paul Quinn

very Thanks Morning much. guys. Yes.

Paul Quinn

Day. a Lumber shipments to-date on are they [Indiscernible] bit quite what suggested X% Investor Wood is which lower you up to up Just Products. than only X.X%, on

for confident next over that are in years getting how the wondering you of just year. X% So the number

Devin Stockfish

at high in. out say next how have a if level going we Investor -- are to over I We didn't confident. would it several about as that's confidence we frankly, think the have said we highly of Day would play years. wouldn't we

is completed of to incremental so All built identified. the capital individual projects have or up of and one have make are that mill another. majority from level, at that already been X-year going mill that The we the road-maps, projects up production vast

already So as across and by to done we've that it projects to it's continue view low-risk we large relatively -- execute somewhere these else.

in So confident that's the number. we're short that long answer. answer is highly The

Paul Quinn

down on I it you're year-to-date OSB, X.X% to Okay. shipments. flip if And then over

wondering why Just that is?

Devin Stockfish

some just happens really that during of it's reflection a planned Yeah, maintenance the year.

the you look where when of of maintenance, have year-over-year, parts that. will reflection a and planned annual year different mills quarters, so that's have so just And different they'll

Paul Quinn

can't Okay. that just lastly, to hate And just then I harp understand it. I on, but

record year, Wood this half performance reap got share Products You've but than your is your biggest pricing less year. to-date

can is why difference? So you the question and make the up how

Devin Stockfish

we the guess side that portfolio, we've transactions would to value. our foremost, is that we're say focused in our that number have think shareholders. I driving Managing Paul and do a what I value some of increased ways. we Timberlands on on done first And for always

on I by late improve paying of a to of performance. Sheet of up have focus the Balance taken we've over and how billion portfolio debt. OpEx the work a our number We think down that driven actions a showed strengthened performance to on industry-leading and in businesses. We've our dollars continue across We

supplemental out dividend with dividend sizable our new XXXX. out paid seen to to structure of going plus going amounts base QX we're we supplemental think pay I over the variable in October, year we've how And this out return in the supplemental interim cash is time. that's significant played

that and And make more stock to that's in I achieve and return margins, we think so my in price the ultimately to valuable as long-term execute to a those as targets. no Company, out from that doubt laid reflected in Day us my mind shareholders, Company. continue improve And the our Investor value be grow cash will to better the going we standpoint There's continue time. on opportunities over growth we

Paul Quinn

I Alright. That's had. luck. all Best of

Devin Stockfish

Alright, thank you.

Operator

Please with Davidson. question final Kurt is question. DA your Yinger with proceed Our from

Kurt Yinger

Great. Thanks and good morning, everyone.

Devin Stockfish

Morning.

Kurt Yinger

different to to be in you in of some XX million last XX you to restrictions is being around just XX down just chain off ramp that XXXX, like anything for there help with particularly Could challenging us or regions and labor million and as you tons ahead look level the side, the think and year the this from about good looks I you'll that wanted baseline we ballpark are it you XX look foresee is a supply start of the harvest on same year. to perspective a what maybe as up? that

Devin Stockfish

Yes, sure.

will do a comments region west. the harvest report which we make by few without in starting on specific earnings. we'll and QX when XXXX guidance I levels, So giving

and as things harvest XXXX frame, you levels think relative that that history, to levels western that we some that think to to XXXX. by XXXX-time we you timber X. about the things very few did harvest had mature keep said, was back the in a mind. So that When through the acquisition. extent as Longview acquisition And in timber came impacted some with along about

work were level. a that elevated down acquisition normalized we for H-class bit as several harvest our So more years levels to a after that

expected season that we start fire expected but to XXXX, significant back obviously bit in always a we over that up, We in pretty had time. had Oregon. going down So a come

those we last year salvage expect last harvest the that both that back year we've of things of And did we next some have XXXX, planned in but events levels had XX% few start so A to ability we out some to etc. year-over-year. due year, We that and There's in impacted up would really years, South really weather some the the and going In to of the XXXX market South, get COVID, couple wood events. in a up in worked has some reduced weather defer by in that been this year. that of harvest to South. as on a our just conditions volume wet obviously lot going volume, also going had move through but back

we to loggers availability up, And one just point and some of so that we're some you of is the tracking availability. made that do have of of able catch but that contracting I the challenges up the fully think to in catching just

our loss going to to expect next production on give I that's some year, guidance of and we for ramp hindered So we'll do more little we bit back that clear for again, in fulsome But wetter report and levels to up probably QX. would say on when harvest up up here. a ability make the start of that margins months kind the

Kurt Yinger

it. Got

terms then, key activity OSB and determining months markets? of direction Okay. XX the markets, out look XX in on you thinking levels, to factors repair And and lumber residential and are the outside That's of next over about remodel helpful. the construction demand you as what the of new just

Devin Stockfish

Yeah.

the what's of fronts. to residential standpoint? those of X going construction? with mentioned a You remodel both big going repair We're What's ones; pretty and happen to from happen bullish on

is extent few think play, mix of what for impact depending things a the into infrastructure some to demand expo, I can't the come incremental CLT, play can that supply OSB, on passed. I think etc. impact to market, wood, impact that momentum extent do availability into on which, industry to standpoint, some some the chain have the that in the of run pricing. continue both see overall into that think we middle that ultimately we the just obviously, the and to timber disruptions, things extent, labor happens there tall continue Labor buildings, find do wood to around and can etc. with I to that an that bill the that a enough have plywood, impact market. can one building, And drive from extent coming which on that are other obviously, to could mass also can that the then put gets would availability, I more supply lumber that wood-based see more are an

be So another well. as that could tailwind

think years. going a over optimistic So market pretty of of like to couple the next are Wood look we the overall, view in I have Products what things

Kurt Yinger

it. Got

keeping one they business the economics just I on last with do my logs southern market? Makes where log and Okay. pricing sense. in tree compare? to those the the then how domestic costs guess, And are, export

Devin Stockfish

decent pricing those the as even we export a costs the get market, Well, we've to into to side. advantageous logs us would transportation it on consideration to what can pretty take and still over we dramatic in the domestic premium for get when the seen much pretty run-up increased you so represents market. in it's move a into market, as export

Kurt Yinger

Got it.

luck color, in Okay. Well, here I appreciate QX. all the and good

Devin Stockfish

Terrific. a this for so Have morning, great Thanks. you joining us was Well, believe for day. to Weyerhaeuser. final and I thank question, our you your thank in interest that everyone continued

Operator

today's concludes teleconference. This

and You you at this disconnect your thank participation. for we may your time, lines

Weyerhaeuser (WY) 29 Oct 212021 Q3 Earnings call transcript