Weyerhaeuser Outlines Strategy to Drive Growth, Accelerate Shareholder Returns and Enhance ESG Leadership at Investor Day
Weyerhaeuser Company will today outline the company’s strategy for driving long-term sustainable growth and superior shareholder returns at its 2021 Virtual Investor Day, beginning at 9:30 a.m. Pacific time.
“Over the past 18 months, we have improved Weyerhaeuser’s portfolio of assets, strengthened our balance sheet and positioned the company for its next phase of sustainable growth and value creation,” said Devin W. Stockfish, president and chief executive officer. “We intend to grow our company and cash flows, improve our competitive position, fully capitalize on increasing demand for our products and capabilities, and unequivocally establish Weyerhaeuser as a premier ESG investment opportunity. These actions will enhance our ability to return capital to shareholders through dividends and opportunistic share repurchases. Looking forward, I am confident in our ability to achieve our new multi-year targets and deliver superior returns for our shareholders.”
Driving Strategic Growth
At today’s event, members of Weyerhaeuser’s management team will discuss the company’s targets for driving strategic growth by year-end 2025, including:
-Growing the company’s timberlands portfolio through $1 billion of disciplined investments with strong returns;
-Generating $100 million of Adjusted EBITDA from Natural Climate Solutions, a fivefold increase from current levels;
-Capturing $175 to 250 million of additional operational excellence improvements to maintain and further improve upon Weyerhaeuser’s industry leading performance; and
-Organically growing lumber production by 5 percent annually to serve increasing market demand.
Returning Cash to Shareholders
In light of its record first-half 2021 cash flow generation, the company is also announcing the following actions, which demonstrate its strong commitment to returning capital to shareholders:
-Declaring a one-time interim supplemental dividend of $0.50 per share, enabling shareholders to benefit from extraordinary market conditions and allowing the company to capitalize on a one-time tax planning opportunity;
-Targeting 5 percent annual growth in the sustainable base dividend from 2022-2025 driven by Timberlands and Natural Climate Solutions growth opportunities; and
-Authorizing a new $1 billion share repurchase authorization.
Additional details regarding the interim supplemental dividend declaration and share repurchase authorization can be found in a separate press release issued today.
Enhancing ESG Leadership
The company is taking meaningful action to contribute to climate change solutions and further enhance Weyerhaeuser’s reputation as a leading ESG investment opportunity, including:
-Growing the company’s Natural Climate Solutions business to capitalize on opportunities associated with emerging carbon markets;
-Leading its sector by aligning carbon disclosures with the future Greenhouse Gas Protocol on Carbon Removals and Land Use;
-Releasing its inaugural carbon record, disclosing that the company is significantly carbon negative and stores billions of metric tons of carbon dioxide equivalents in its U.S. timberlands; and
-Setting a science-based greenhouse gas emissions reduction target that aligns with limiting global warming to 1.5 degrees Celsius and supports the pathway to net-zero.
To register for the live video webcast, please visit https://wyinvestorday.connectid.cloud/register/ or the homepage of www.weyerhaeuser.com. Presentation materials will be available on the Investor Relations section of www.weyerhaeuser.com, and a replay will be posted following the event.
Weyerhaeuser Company, one of the world’s largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
Nancy Thompson – Media Relations – (919) 861-0342
Source: Weyerhaeuser Company