Joining me this morning are Dan Fulton, President and Chief Executive Officer; and Patty Bedient, Executive Vice President and Chief Financial Officer.
Additional information has been added to the analyst package and web slides. This includes EBITDA and operating margin data as well as business-specific metrics. In the web slide package, the charts and tables have been redesigned. I will note some of the graph changes as we review first quarter results.
Corporate and Other has been renamed Unallocated to more accurately reflect the nature of these items. Chart 13 details unallocated items. We hope these changes help you in your analysis of Weyerhaeuser.
As summarized on Chart 1, this morning, Weyerhaeuser reported first quarter 2012 net earnings of $41 million or $0.08 per diluted share on net sales of $1.5 billion. Earnings for the first quarter include aftertax gains of $32 million from special items. A GAAP reconciliation of earnings before special items can be found on Chart 2. This table now details special items on a pretax and an aftertax basis.The special items for the first quarter are: a gain of $34 million or $0.06 per share for a postretirement plan amendment; a gain of $8 million or $0.02 per share for income tax settlements; and a charge of $10 million or $0.02 per share for restructuring, impairments and other items. Excluding these items, the company reported net earnings of $9 million or $0.02 per diluted share. Turning to our business segment discussion. My comments reviewing the first quarter of 2012 refer to changes from the fourth quarter of 2011. This will be the same for all segments. Beginning with Timberlands, Charts 3 and 4. The graph on Chart 4 had been redesigned. The West and the South are now on separate charts, each graphing third-party log sales versus realizations. Graph on intersegment log sales, West and South, and fee harvest volume, West and South, have also been excluded. Timberlands contributed $71 million to pretax earnings, $1 million more than in Q4. Income from operations increased $13 million. This increase was primarily due to lower equipment and road maintenance cost in the West. This increase was largely offset by a $12 million reduction in earnings from the disposition of non-strategic Timberland. Western log sale volumes were flat. Third-party sales volumes declined 6%, primarily due to fewer log sales to China. Log exports to Japan, however, have increased. Japan accounted for 78% of log exports in Q1 versus 68% in Q4.
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