Weyerhaeuser Co. (NYSE:WY.PRA) Q1 2016 Earnings Conference Call - Preliminary Transcript
May 06, 2016 • 10:00 am ET
Good morning. My name is Brent and I will be your conference operator today. At this time, I'd like to welcome everyone to the Weyerhaeuser First Quarter 2016 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the call over to Beth Baum, Director of Investor Relations. Please go ahead.
Thank you, Brent. Good morning, everyone, and thank you for joining us today to discuss Weyerhaeuser's first quarter 2016 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 Doyle Simons, Chief Executive Officer; and Russell Hagen, Chief Financial Officer. I will now turn the call over to Doyle Simons.
Thank you, Beth, and welcome everyone. This morning, Weyerhaeuser reported first quarter net earnings of 70 million or $0.11 per diluted share on net sales of 1.8 billion. Excluding special items, we earned 150 million or $0.24 per diluted share. Our first quarter earnings included results from Plum Creek for the period February 19 through March 31. Special items for the first quarter included integration and restructuring charges related to the Plum Creek merger and a strategic review of our Cellulose Fiber business, partially offset by gain on the sale of our corporate campus.
I'm extremely proud of the work of our employees in the quarter, as we closed the Plum Creek merger, delivered solid operating performance across each of our businesses, and took significant steps toward achieving the commitments that will drive long-term value for shareholders of our merged company including -- we have specific plans in place to capture $100 million of hard dollar cost synergies, and I am highly confident that we will meet or exceed this run rate target by the end of year one.
As part of that, we made and announced nearly all our personnel decisions in the 41 days between merger close and the end of the first quarter. We raised 2.5 billion of attractively priced term loan financing and began to aggressively execute against our 2.5 billion share repurchase authorization. At the end of the first quarter, we had repurchased approximately 860 million or 35% of our authorization at an average price of $27.49 per share, and we close the sale of our corporate campus for 70 million in cash with our move to Seattle on track and scheduled for September.
We have continued to execute against our goals as the second quarter has progressed. On April 1, we closed the Twin Creeks transaction announced by Plum Creek in