PORTLAND, Ore., Jan. 17 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today reported financial results for the fourth quarter and year ended
December 31, 2000.
Net earnings for the 2000 fourth quarter were $86.0 million, or $0.78 per
diluted share, an increase over net earnings of $83.6 million, or $0.75 per
diluted share, in the fourth quarter of 1999. Sales for the 2000 fourth
quarter were $1.1 billion, up slightly over the same period last year. Fourth
quarter net earnings include a year-to-date tax rate decrease from 34.5% to
33%, which improved earnings by $0.05 per share, offset by a $0.05 per share
charge associated with the defense of the unsolicited hostile takeover
initiated by Weyerhaeuser during the fourth quarter of 2000. Total pretax
cost associated with this defense could approximate $50 million.
Net earnings for the full year 2000 were $344.9 million, or $3.12 per
diluted share, up 33.9% from 1999 net earnings of $260.5 million, or $2.33 per
diluted share. Sales for 2000 were $4.7 billion, up 8.9% from the
$4.3 billion recorded in 1999.
Duane McDougall, President and Chief Executive Officer, said, "Willamette
produced strong earnings results for the quarter despite weakening conditions
in the general economy, sharply rising energy costs and a hostile takeover
attempt by Weyerhaeuser. Our strong performance under these difficult
circumstances is the result of our efficient high quality asset base, our
leading customer service, and the exceptional dedication and efforts of our
employees.
"Earnings were driven by improved pricing for white paper, and lower raw
material costs for our brown paper operations. Volumes were down slightly due
to normal seasonal softening," McDougall continued. "While the building
materials market remains at the bottom of the cycle in terms of pricing across
product lines, our plants continued to run efficiently and we began to see the
benefits of increased timber availability on raw material costs."
Commenting on the Company's outlook, McDougall said: "Prospects look mixed
for the first quarter of 2001. However, even in the face of economic and
market pressures, rising energy costs, and a hostile takeover attempt, we
believe we will remain the performance leader in the forest products industry.
This leadership will only be enhanced over time by recent capital projects
which will further enhance our competitive position and profitability. We are
confident that continued pursuit of our long-term strategic plan will yield
significant growth opportunities for shareholders, customers and our other
constituencies."
Conference Call Information:
WHAT: Willamette Industries Earnings Conference Call
WHEN: Wednesday, January 17, 2001
11:00 a.m. Eastern time
NUMBER: 800-521-5431
Dial in by 10:45 a.m. Eastern time
Conference name/reservation number: 906528
WEBCAST: http://www.streetfusion.com "Earnings Events"
REBROADCAST January 17 3:30 p.m.Eastern time through
DATES: January 24 5:00 p.m. Eastern time
REBROADCAST 800-625-5288 or 303-804-1855
NUMBER: Reservation number 906528
Willamette Industries is an integrated forest products company with
105 plants, located in the U.S., France, Ireland and Mexico. The company owns
1.7 million acres of forestland in the U.S. and manages it sustainably to
produce building materials, composite wood panels, fine paper, office paper
products, corrugated packaging and grocery bags.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and uncertainties and
actual results could differ materially from those projected. Such risks and
uncertainties include, but are not limited to, the effect of general economic
conditions; the level of new housing starts and remodeling activity; the
availability and terms of financing for construction; competitive factors,
including pricing pressures; the cost and availability of wood fiber; the
effect of natural disasters on the Company's timberlands; construction delays;
risk of nonperformance by third parties; and the impact of environmental
regulations and other costs associated with complying with such regulations.
Please refer to Willamette Industries' Securities and Exchange Commission
filings for further information.
Investors are urged to read the proxy statement that will be filed by
Willamette in connection with the 2001 annual meeting of shareholders when it
becomes available, as well as any solicitation/recommendation statement that
has been or may be filed by Willamette, because they contain important
information. Each of these documents has been or will be filed with the SEC
and investors may obtain a free copy of them at the SEC's Internet web site at
http://www.sec.gov. These documents may also be obtained for free (when available)
from Willamette by directing such request to: Willamette Industries, Inc.,
Attention: Investor Relations, 1300 S.W. Fifth Avenue, Suite 3800, Portland,
Oregon 97201, telephone: (503) 227-5581, or MacKenzie Partners, Inc. at (800)
322-2885 (toll-free) or at (212) 929-5500 (collect) or by e-mail at
proxy@mackenziepartners.com. Detailed information regarding the names,
affiliations and interests of individuals who may be deemed participants in
the solicitation of proxies of Willamette's shareholders is available in the
Soliciting Materials on Schedule 14A filed by Willamette with the SEC on
January 3, 2001.
WILLAMETTE INDUSTRIES, INC. FINANCIAL HIGHLIGHTS
2000 1999
Quarter Ended December 31:
Basic Earnings Per Share $ 0.79 $ 0.75
Diluted Earnings Per Share $ 0.78 $ 0.75
Sales * $1,126,990,000 $1,108,540,000
Earnings Before Taxes $ 119,071,000 $ 130,289,000
Net Earnings $ 85,955,000 $ 83,609,000
Average Shares Outstanding:
Basic 109,286,000 111,574,000
Diluted 109,745,000 112,149,000
Twelve Months Ended December 31:
Basic Earnings Per Share $ 3.14 $ 2.34
Diluted Earnings Per Share $ 3.12 $ 2.33
Sales * $4,651,761,000 $4,272,957,000
Earnings Before Taxes $ 514,387,000 $ 413,275,000
Net Earnings $ 344,887,000 $ 260,475,000
Average Shares Outstanding:
Basic 109,982,000 111,375,000
Diluted 110,717,000 112,001,000
* Sales for all periods presented have been reclassified to conform with
EITF 00-10 "Accounting for Shipping and Handling Costs."
WILLAMETTE INDUSTRIES, INC. January 17, 2001
Quarterly Statistical Data
Fourth Quarter 2000
Fourth Quarter Year-to-Date
2000 1999 2000 1999
PRODUCT SHIPMENTS
Lumber 1" - MBF 219,543 198,675 862,756 819,800
Plywood - 3/8" MSF 312,481 373,293 1,432,448 1,579,715
Oriented Strand Board -
3/8" MSF 64,314 79,108 295,718 320,746
Domestic Particleboard -
3/4" MSF 142,464 149,462 630,020 620,384
International
Particleboard - 3/4" MSF 38,076 39,402 140,627 69,069
Domestic MDF - 3/4" MSF 77,119 77,493 321,123 321,132
International MDF - 3/4"
MSF 66,603 64,969 256,300 251,945
Domestic Corrugated - MSF 6,253,144 6,204,439 25,475,221 25,125,344
International Corrugated -
MSF 399,167 89,512 1,093,024 342,903
Grocery Bags - Tons 27,165 29,960 108,567 113,958
Business Forms - Tons 90,189 97,966 369,200 374,438
Cut-sheets - Tons 172,168 162,739 731,967 650,567
Brown Mills - Tons 471,109 473,456 1,885,166 1,839,322
Market Pulp - Tons 71,171 46,020 211,838 144,276
White Mills - Tons 364,740 382,206 1,494,672 1,456,523
SEGMENT INFORMATION ($ in Thousands)
Sales: (1)
Building Materials Group $324,370 $368,295 $1,436,580 $1,552,739
Brown Paper 447,716 400,978 1,763,892 1,522,195
White Paper 354,904 339,267 1,451,289 1,198,023
Operating Earnings:
Building Materials Group 23,207 38,790 137,259 253,910
Brown Paper 103,967 73,326 355,011 225,283
White Paper 43,402 60,897 207,702 118,955
Corporate (11,480) (11,353) (46,715) (47,879)
SUPPLEMENTAL FINANCIAL ($ in
Thousands)
Cost of Sales (1) 895,487 882,056 3,729,685 3,468,994
Selling & Administrative
Expense (1) 72,407 64,824 268,819 253,694
Non-Recurring and Other
Income (Expense) - Net
(2), (4) (11,437) (1,524) (19,737) (11,710)
Interest Expense - Net 28,588 29,847 119,133 125,284
Capitalized Interest 1,798 1,708 5,163 3,998
Income Taxes (3) 33,116 46,680 169,500 152,800
Tax Rate (3) 27.8% 35.8% 33.0% 37.0%
Depreciation &
Amortization 69,868 65,046 270,225 257,522
Cost of Fee Timber
Harvested 11,737 10,665 44,774 46,197
Deferred Taxes 9,151 26,644 70,011 86,938
Plant, Property &
Equipment 133,602 86,522 379,667 267,856
Timber, Roads &
Reforestation 4,296 4,073 19,221 22,390
Acquisitions 3,480 -- 169,334 --
AVERAGE SHARES OUTSTANDING
(in Thousands)
Basic 109,286 111,574 109,982 111,375
Diluted 109,745 112,149 110,717 112,001
(1) Sales, cost of sales, and selling and administrative expenses for all
periods presented have been reclassified to conform with EITF 00-10
"Accounting for Shipping and Handling Costs."
(2) Non-recurring expense for the fourth quarter of 2000 includes charges
of $8.0 million for hostile takeover defense costs and $4.0 million
for the closure of the Ruston, Louisiana, plywood plant. In
addition, non-recurring expense for the year ended December 31, 2000,
also includes charges totaling $5.1 million related to estimated
costs for the closure of the Dallas, Oregon, plywood plant and
settlement costs for alleged violations of the Clean Air Act
involving the company's building materials operations.
(3) The fourth quarter of 2000 includes an adjustment of $.05 per share
related to a change in the effective tax rate from 34.5% to 33.0%.
(4) Non-recurring expense for the year ended December 31, 1999 includes a
$10.0 million charge related to an estimate of environmental
penalties resulting from allegations of Clean Air Act issues at the
company's building materials operations.
Willamette Industries, Inc.
Consolidated Balance Sheets
(000s omitted, except per share amounts)
12/31/00 12/31/99
Assets
Current Assets:
Cash $24,284 $25,557
Accounts receivable -- net 459,591 382,763
Inventories 473,788 445,110
Prepaid expenses 35,154 36,160
Total current assets 992,817 889,590
Other assets 92,975 99,532
Timber, timberlands and related
facilities -- net 1,014,285 1,057,529
Property, plant and equipment -- net 3,017,593 2,751,210
$5,117,670 $4,797,861
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable -- current $127,499 $16,873
Accounts payable and accrued
expenses 450,040 393,046
Federal and state income taxes 19,184 22,200
Total current liabilities 596,723 432,119
Long-term debt 1,542,926 1,628,843
Deferred income taxes and other
liabilities 596,978 533,187
Stockholders' Equity:
Common stock, $.50 par value;
authorized 150,000
shares; issued and outstanding
109,417 and 111,587 shares 54,709 55,794
Capital surplus 229,598 303,626
Retained earnings 2,096,736 1,844,292
Total stockholders' equity 2,381,043 2,203,712
$5,117,670 $4,797,861
Consolidated Statements of Earnings
(000s omitted, except per share amounts)
Three Months Ended Twelve Months Ended
12/31/00 12/31/99 12/31/00 12/31/99
Net sales $1,126,990 $1,108,540 $4,651,761 $4,272,957
Cost of sales 895,487 882,056 3,729,685 3,468,994
Gross profit 231,503 226,484 922,076 803,963
Selling and
administrative
expense 72,407 64,824 268,819 253,694
Non-recurring and
other income
(expense) - net (11,437) (1,524) (19,737) (11,710)
Operating earnings 147,659 160,136 633,520 538,559
Interest expense 28,588 29,847 119,133 125,284
Earnings before
income taxes 119,071 130,289 514,387 413,275
Income taxes 33,116 46,680 169,500 152,800
Net earnings $85,955 $83,609 $344,887 $260,475
Basic earnings per
share $0.79 $0.75 $3.14 $2.34
Diluted earnings per
share $0.78 $0.75 $3.12 $2.33
Average shares
outstanding - basic 109,286 111,574 109,982 111,375
Average shares
outstanding -
diluted 109,745 112,149 110,717 112,001
Willamette Industries, Inc.
Summary of Cash Flows
(000s omitted)
Twelve Months Ended
12/31/00 12/31/99
Operating Activities:
Net earnings $344,887 $260,475
Depreciation, amortization and
cost of fee timber harvested 314,999 303,719
Deferred income taxes 70,011 86,938
Change in working capital items (39,424) (48,266)
690,473 602,866
Investing Activities:
Proceeds from sale of assets 5,704 5,965
Expenditures for property
purchases (379,667) (267,856)
Expenditures for timber,
timberlands, roads, and reforestation (19,221) (22,390)
Acquisitions (169,334) --
Other 13,646 (33,329)
(548,872) (317,610)
Financing Activities:
Net change in operating lines of
credit 108,383 (33,635)
Debt borrowing 115,038 27,770
Proceeds from sale of common stock 8,931 18,725
Repurchased common stock (84,071) --
Cash dividends (92,443) (77,984)
Payment on debt (198,712) (225,934)
(142,874) (291,058)
Change in cash $(1,273) $(5,802)
Notes:
(A) Non-recurring expense for the fourth quarter of 2000 includes charges
of $8.0 million for hostile takeover defense costs and $4.0 million
for the closure of the Ruston, Louisiana, plywood plant. In addition,
non-recurring expense for the year ended December 31, 2000, also
includes charges totaling $5.1 million related to estimated costs for
the closure of the Dallas, Oregon, plywood plant and settlement costs
for alleged violations of the Clean Air Act involving the company's
building materials operations.
(B) In the second quarter of 2000, the company completed its acquisition
of Corrugados Tehuacan S.A. de C.V. This company operates a
state-of-the-art corrugated container plant, a solid fiber box plant
and a small recycled linerboard and medium mill, all located in
Mexico. Also in the second quarter of 2000, the company purchased a
hardwood pulp mill in Port Wentworth, Georgia.
(C) Sales, cost of sales, and selling and administrative expense for all
periods presented have been reclassified to conform with EITF 00-10
"Accounting for Shipping and Handling Costs."
(D) The fourth quarter of 2000 includes an adjustment of $.05 per share
related to a change in the effective tax rate from 34.5% to 33.0%.
(E) Non-recurring expense for the year ended December 31, 1999 includes a
$10.0 million charge related to an estimate of environmental penalties
resulting from allegations of Clean Air Act issues at the company's
building materials operations.
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
Exhibit A
(000s Omitted)
1995 1996 1997 1998
Non-Cash Charges:
Depreciation &
Amortization $ 224,104 259,556 286,300 316,765
Cost of Fee Timber
Harvested $ 25,061 43,381 52,649 54,376
Subtotal $ 249,165 302,937 338,949 371,141
Deferred Taxes $ 98,425 40,717 28,650 7,683
Total $ 347,590 343,654 367,599 378,824
Capital Expenditures:
Timber, Roads &
Reforest. $ 41,538 31,025 21,560 24,067
Plant, Property &
Equip. (1) $ 411,985 454,744 506,348 417,772
Acquisitions $ -- 1,019,274 -- --
Capitalized Interest $ 6,187 10,534 19,939 13,589
Interest Expense $ 71,050 92,804 116,990 131,990
Tax Rate 37.5% 37.2% 34.4% 33.0%
(1) Includes capitalized interest
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
(000s Omitted)
1999 2000 2001
Estimate
Non-Cash Charges:
Depreciation & Amortization 257,522 270,225 286,000
Cost of Fee Timber Harvested 46,197 44,774 47,000
Subtotal 303,719 314,999 333,000
Deferred Taxes 86,938 70,011 75,000
Total 390,657 385,010 408,000
Capital Expenditures:
Timber, Roads & Reforest. 22,390 19,221 25,000
Plant, Property & Equip. (1) 267,856 379,667 475,000
Acquisitions -- 169,334 --
Capitalized Interest 3,998 5,163 11,700
Interest Expense 125,284 119,133 110,000
Tax Rate 37.0% 33.0% 33.0%
(1) Includes capitalized interest
WILLAMETTE INDUSTRIES, INC.
PRODUCTION SUMMARY
Exhibit B
1996 1997 1998
BUILDING MATERIALS GROUP
Western Plywood - 3/8" msf 352,000 291,000 362,000
Southern Plywood - 3/8" msf 1,083,000 936,000 731,000
Atlantic Plywood - 3/8" msf 304,000 310,000 325,000
Total 1,739,000 1,537,000 1,418,000
Oriented Strand Board -
3/8" msf 143,000 310,000 299,000
Western Lumber - 1" mbf 421,000 484,000 580,000
Southern Lumber - 1" mbf 117,000 140,000 175,000
Atlantic Lumber - 1" mbf -- -- --
Total 538,000 624,000 755,000
Particleboard - 3/4" msf 546,000 593,000 616,000
MDF -3/4" msf 284,000 466,000 (2) 540,000 (2)
Lam Beams - 1" mbf 99,000 93,000 75,000
Structural I-Beams - M.
Lin. Ft. 24,000 36,000 45,000
LVL - ccf 16,000 27,000 34,000
PAPER GROUP
Brown Paper (3) - Tons 1,629,000 1,730,000 1,792,000
White Paper - Tons 1,040,000 1,117,000 1,274,000
Hardwood Market Pulp - Tons 134,000 134,000 125,000
Corrugated Containers -
msf 21,528,000 22,976,000 24,491,000 (4)
Grocery Bags - Tons 118,000 113,000 105,000
Business Forms - Tons 326,000 345,000 316,000
Cut-Sheets - Tons 423,000 500,000 586,000
(1) Includes International - 69,000 msf 1999, 141,000 msf 2000 and
233,000 msf 2001.
(2) Includes International - 161,000 msf 1997, 227,000 msf 1998,
251,000 msf 1999, 256,000 msf 2000 and 272,000 msf 2001.
(3) Linerboard, bag and medium. Includes International - 14,000 tons
2000 and 28,000 tons 2001.
(4) Includes International - 357,000 msf 1998, 350,000 msf 1999,
1,204,000 msf 2000 and 1,725,000 msf 2001.
WILLAMETTE INDUSTRIES, INC.
PRODUCTION SUMMARY
Projected
1999 2000 2001
BUILDING MATERIALS GROUP
Western Plywood - 3/8"
msf 405,000 335,000 255,000
Southern Plywood - 3/8"
msf 824,000 792,000 604,000
Atlantic Plywood - 3/8"
msf 351,000 305,000 355,000
Total 1,580,000 1,432,000 1,214,000
Oriented Strand Board -
3/8" msf 321,000 296,000 330,000
Western Lumber - 1" mbf 640,000 659,000 694,000
Southern Lumber - 1" mbf 180,000 188,000 186,000
Atlantic Lumber - 1" mbf -- 16,000 39,000
Total 820,000 863,000 919,000
Particleboard - 3/4" msf 689,000 (1) 771,000 (1) 914,000 (1)
MDF -3/4" msf 573,000 (2) 577,000 (2) 611,000 (2)
Lam Beams - 1" mbf 83,000 84,000 95,000
Structural I-Beams - M.
Lin. Ft. 55,000 68,000 79,000
LVL - ccf 46,000 52,000 57,000
PAPER GROUP
Brown Paper (3) - Tons 1,839,000 1,888,000 (3) 1,915,000 (3)
White Paper - Tons 1,456,000 1,483,000 1,471,000
Hardwood Market Pulp -
Tons 137,000 203,000 406,000
Corrugated Containers -
msf 25,709,000 (4) 26,925,000 (4) 29,480,000 (4)
Grocery Bags - Tons 111,000 104,000 109,000
Business Forms - Tons 334,000 307,000 298,000
Cut-Sheets - Tons 697,000 799,000 946,000
(1) Includes International - 69,000 msf 1999, 141,000 msf 2000 and
233,000 msf 2001.
(2) Includes International - 161,000 msf 1997, 227,000 msf 1998,
251,000 msf 1999, 256,000 msf 2000 and 272,000 msf 2001.
(3) Linerboard, bag and medium. Includes International - 14,000 tons
2000 and 28,000 tons 2001.
(4) Includes International - 357,000 msf 1998, 350,000 msf 1999,
1,204,000 msf 2000 and 1,725,000 msf 2001.
SOURCE Willamette Industries
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Related links:
http://www.wii.com
Company News On-Call:
http://www.prnewswire.com/comp/971763.html or fax,
800-758-5804, ext. 971763
CONTACT:
Greg Hawley, EVP & CFO, 503-273-5640, or
Cathy Dunn, VP Communications, 503-273-5642, both of Willamette
Industries; or Paul Verbinnen, David Reno, or Jim Barron, all of
Citigate Sard Verbinnen, 212-687-8080
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