PORTLAND, Ore., Jan. 17 /PRNewswire-FirstCall/ -- Willamette Industries
(NYSE: WLL) today reported financial results for the fourth quarter and full
year ended December 31, 2001.
Net earnings for the 2001 fourth quarter were $45.6 million, or $0.41 per
diluted share, down from 2000 fourth quarter earnings of $86.0 million, or
$0.78 per diluted share. Net earnings for the full year 2001 were
$248.8 million, or $2.26 per diluted share, down from full year 2000 results
of $344.9 million, or $3.12 per diluted share.
Sales for the 2001 fourth quarter were $1.1 billion, and full year 2001
sales were $4.5 billion, down slightly from full year 2000 sales of
$4.7 billion.
Duane McDougall, President and CEO, said, "In a difficult market
environment and in the face of a hostile takeover attempt, we believe
Willamette has again outperformed its peers by a significant margin."
Commenting on the performance of Willamette's individual segments,
McDougall noted, "Building materials has been most significantly impacted by
the events of September 11th, with weak demand and pricing resulting in a
breakeven performance. Although corrugated volumes declined less than the
rest of the industry, earnings were impacted in the fourth quarter 2001 by the
lower volume and pricing. White paper profitability improved slightly due to
improvement in pulp prices and strong demand for cut sheets."
McDougall continued, "Even during a year as demanding as 2001, Willamette
generated cash flow from operations of $688 million. This allowed us to fully
fund our capital spending program, which we expect will generate significant
value in coming years. In addition, we increased our cash dividend to
shareholders by 9.5% in 2001 and still were able to reduce our debt-to-capital
ratio to 39.3% from 41.2% at the end of 2000.
"While we are hopeful that we will begin to see an economic recovery in
the second quarter of 2002, we nevertheless anticipate a challenging year for
the industry. That said, Willamette remains well positioned for the
long-term, with a dedicated workforce and lean, low-cost facilities operating
in a highly efficient integrated structure," McDougall concluded.
Conference Call Information:
WHAT: Willamette Industries Earnings Conference Call
WHEN: Thursday, January 17, 2002
11:00 a.m. Eastern time
NUMBER: 1-800-482-2225 or 1-303-267-1002
Dial in by 10:45 a.m. Eastern time
Conference name/reservation number: 1446527
WEBCAST: http://www.companyboardroom.com
REBROADCAST January 17 at 3:30 p.m. Eastern time through January
DATES: 24 at 5:00 p.m. Eastern time
REBROADCAST 1-800-625-5288 or 1-303-804-1855
NUMBER: Reservation number 1446527
Willamette Industries is an integrated forest products company with
106 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, and 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.
Any such forward looking statement made by Willamette with respect to the
Weyerhaeuser tender offer is not entitled to the benefit of the safe harbor
protections 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.
WILLAMETTE INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
2001 2000
Quarter Ended December 31
Basic Earnings Per Share $0.42 $0.79
Diluted Earnings Per Share 0.41 0.78
Sales 1,061,178,000 1,126,990,000
Earnings Before Taxes 59,255,000 119,071,000
Net Earnings 45,638,000 85,955,000
Average Shares Outstanding:
Basic 109,911,000 109,286,000
Diluted 110,433,000 109,745,000
Twelve Months Ended December 31
Basic Earnings Per Share $2.27 $3.14
Diluted Earnings Per Share 2.26 3.12
Sales 4,453,942,000 4,651,761,000
Earnings Before Taxes 345,404,000 514,387,000
Net Earnings 248,804,000 344,887,000
Average Shares Outstanding:
Basic 109,744,000 109,982,000
Diluted 110,326,000 110,717,000
WILLAMETTE INDUSTRIES, INC.
Quarterly Statistical Data
Fourth Quarter 2001
Fourth Quarter Year-to-Date
2001 2000 2001 2000
PRODUCT SHIPMENTS
Lumber 1" - MBF 238,228 219,543 932,739 862,756
Plywood - 3/8" MSF 277,202 312,481 1,181,138 1,432,448
Oriented Strand Board
- 3/8" MSF 85,424 64,314 330,112 295,718
Domestic Particleboard
- 3/4" MSF 150,475 142,464 614,940 630,020
International
Particleboard - 3/4" MSF 53,114 38,076 174,936 140,627
Domestic MDF - 3/4" MSF 79,358 77,119 330,643 321,123
International MDF
- 3/4" MSF 70,939 66,603 260,600 256,300
Domestic Corrugated
- MSF 6,014,824 6,253,144 24,661,633 25,475,221
International Corrugated
- MSF 363,821 399,167 1,489,610 1,093,024
Grocery Bags - Tons 26,568 27,165 103,075 108,567
Business Forms - Tons 84,311 90,189 344,116 369,200
Cut-Sheets - Tons 200,825 172,168 810,110 731,967
Brown Mills - Tons 481,011 471,109 1,871,500 1,885,166
Market Pulp - Tons 76,508 71,171 281,587 211,838
White Mills - Tons 370,784 364,740 1,457,689 1,494,672
SEGMENT INFORMATION
($ in Thousands)
Sales:
Building Materials
Group $304,884 $324,370 $1,305,291 $1,436,580
Brown Paper 410,219 447,716 1,727,496 1,763,892
White Paper 346,075 354,904 1,421,155 1,451,289
Operating Earnings:
Building Materials Group 996 23,207 78,274 137,259
Brown Paper 72,686 103,967 317,386 355,011
White Paper 27,141 43,402 122,754 207,702
Corporate (13,672) (11,480) (52,678) (46,715)
Non-Recurring and Other
Income (Expense) - Net (6,582) (11,437) (25,245) (19,737)
SUPPLEMENTAL FINANCIAL
($ in Thousands)
Cost of Sales 904,104 895,487 3,713,834 3,729,685
Selling & Administrative
Expense 69,923 72,407 274,372 268,819
Interest Expense - Net 21,314 28,588 95,087 119,133
Capitalized Interest 4,338 1,798 14,999 5,163
Income Taxes 13,617 33,116 96,600 169,500
Tax Rate 23.0% 27.8% 28.0% 33.0%
Depreciation &
Amortization 74,978 69,868 287,722 270,225
Cost of Fee Timber
Harvested 8,937 11,737 44,456 44,774
Deferred Taxes 15,545 9,151 62,778 70,011
Plant, Property &
Equipment 164,066 133,602 574,941 379,667
Timber, Roads
& Reforestation 4,224 4,296 18,801 19,221
Acquisitions -- 3,480 -- 169,334
AVERAGE SHARES OUTSTANDING
(in Thousands)
Basic 109,911 109,286 109,744 109,982
Diluted 110,433 109,745 110,326 110,717
NOTES:
(A)Non-recurring items include:
4th Quarter 2001 -- Charge for hostile takeover defense costs of
$6.0 million
-- Adjustment of $0.03 per diluted share due to a
change in tax rate from 29.0% to 28.0%
3rd Quarter 2001 -- Charge for hostile takeover defense costs of
$6.0 million
-- Charge for partial closure costs of $2.0 million
at our particleboard plant in Bend, Ore.
2nd Quarter 2001 -- Charge for hostile takeover defense costs of
$6.2 million
-- Charge for equipment abandonments of $2.9 million
as a result of the Dodson, La., sawmill
modernization
-- Adjustment of $0.03 per diluted share due to a
change in tax rate from 32.0% to 29.0%
1st Quarter 2001 -- Gain on sale of non-strategic timberlands of
$5.3 million
-- Charge for hostile takeover defense costs of
$6.0 million
4th Quarter 2000 -- Charge for hostile takeover defense costs of
$8.0 million
-- Charge of $4.0 million for closure of the Ruston,
La. plywood plant
-- Adjustment of $0.05 per diluted share due to a
change in tax rate from 34.5% to 33.0%
2nd Quarter 2000 -- Charge for facility closure and alleged Clean Air
Act violation settlement of $5.1 million
(B) In the second quarter of 2000, the company completed its acquisition
of four facilities in Mexico and a bleached pulp mill in Georgia.
Willamette Industries, Inc.
Consolidated Balance Sheets
(000s omitted, except per share amounts)
12/31/01 12/31/00
Assets
Current Assets:
Cash $21,777 $24,284
Accounts receivable - net 399,735 459,591
Inventories 472,952 473,788
Prepaid expenses 33,334 35,154
Total current assets 927,798 992,817
Other assets 127,665 104,412
Timber, timberlands and related
facilities - net 964,716 1,014,285
Property, plant and equipment - net 3,304,970 3,017,593
$5,325,149 $5,129,107
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable - current $119,083 $127,499
Accounts payable and accrued expenses 444,923 450,040
Federal and state income taxes 11,118 19,184
Total current liabilities 575,124 596,723
Long-term debt 1,530,881 1,542,926
Deferred income taxes and other
liabilities 669,659 608,415
Stockholders' Equity:
Common stock, $.50 par value;
authorized 150,000 shares; issued
and outstanding 110,009 and 109,417
shares 55,004 54,709
Capital surplus 249,915 229,598
Retained earnings 2,244,566 2,096,736
Total stockholders' equity 2,549,485 2,381,043
$5,325,149 $5,129,107
Consolidated Statements of Earnings
(000s omitted, except per share amounts)
Three Months Ended Twelve Months Ended
12/31/01 12/31/00 12/31/01 12/31/00
Net sales $1,061,178 $1,126,990 $4,453,942 $4,651,761
Cost of sales 904,104 895,487 3,713,834 3,729,685
Gross profit 157,074 231,503 740,108 922,076
Selling and
administrative expense 69,923 72,407 274,372 268,819
Non-recurring and other
income (expense) - net (6,582) (11,437) (25,245) (19,737)
Operating earnings 80,569 147,659 440,491 633,520
Interest expense 21,314 28,588 95,087 119,133
Earnings before income
taxes 59,255 119,071 345,404 514,387
Income taxes 13,617 33,116 96,600 169,500
Net earnings $45,638 $85,955 $248,804 $344,887
Basic earnings per share $0.42 $0.79 $2.27 $3.14
Diluted earnings per share $0.41 $0.78 $2.26 $3.12
Average shares
outstanding - basic 109,911 109,286 109,744 109,982
Average shares
outstanding - diluted 110,433 109,745 110,326 110,717
Willamette Industries, Inc.
Summary of Cash Flows
(000s omitted)
Twelve Months Ended
12/31/01 12/31/00
Operating Activities:
Net earnings $248,804 $344,887
Depreciation, amortization and cost of
fee timber harvested 332,178 314,999
Deferred income taxes 62,778 70,011
Change in working capital items 43,953 (39,424)
687,713 690,473
Investing Activities:
Proceeds from sale of assets 23,385 5,704
Expenditures for property purchases (574,941) (379,667)
Expenditures for timber, timberlands, (249) (2,516)
roads, and reforestation (18,552) (16,705)
Acquisitions -- (169,334)
Other (18,819) 13,646
(589,176) (548,872)
Financing Activities:
Net change in operating lines of credit (12,000) 108,383
Debt borrowing 9,210 115,038
Proceeds from sale of common stock 20,391 8,931
Repurchased common stock -- (84,071)
Cash dividends (100,974) (92,443)
Payment on debt (17,671) (198,712)
(101,044) (142,874)
Change in cash $(2,507) $(1,273)
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
(000s Omitted)
1997 1998 1999 2000 2001 2002
Non-Cash Charges:
Depreciation
& Amortization $286,300 316,765 257,522 270,225 287,722 305,000
Cost of Fee
Timber
Harvested $52,649 54,376 46,197 44,774 44,456 47,000
Subtotal $338,949 371,141 303,719 314,999 332,178 352,000
Deferred Taxes $28,650 7,683 86,938 70,011 62,778 61,000
Total $367,599 378,824 390,657 385,010 394,956 413,000
Capital Expenditures:
Timber, Roads
& Reforest. $21,560 24,067 22,390 19,221 18,801 25,000
Plant, Property
& Equip. (A) $506,348 417,772 267,856 379,667 574,941 500,000
Acquisitions -- -- -- 169,334 -- --
Capitalized
Interest $19,939 13,589 3,998 5,163 14,999 16,000
Interest Expense $116,990 131,990 125,284 119,133 95,087 85,000
Tax Rate 34.4% 33.0% 37.0% 33.0% 28.0% 28.0%
(A) Includes capitalized interest
WILLAMETTE INDUSTRIES, INC.
PRODUCTION SUMMARY
1997 1998 1999
BUILDING MATERIALS GROUP
Western Plywood - 3/8" msf 291,000 362,000 405,000
Southern Plywood - 3/8" msf 936,000 731,000 824,000
Atlantic Plywood - 3/8" msf 310,000 325,000 351,000
Total 1,537,000 1,418,000 1,580,000
Oriented Strand
Board - 3/8" msf 310,000 299,000 321,000
Western Lumber - 1" mbf 484,000 580,000 640,000
Southern Lumber - 1" mbf 140,000 175,000 180,000
Atlantic Lumber - 1" mbf -- -- --
Total 624,000 755,000 820,000
Particleboard - 3/4" msf 593,000 616,000 689,000(A)
MDF -3/4" msf 466,000(B) 540,000(B) 573,000(B)
Lam Beams - 1" mbf 93,000 75,000 83,000
Structural I-Beams -
M. Lin. Ft. 36,000 45,000 55,000
LVL - ccf 27,000 34,000 46,000
PAPER GROUP
Brown Paper 1,730,000 1,792,000 1,839,000
White Paper - Tons 1,117,000 1,274,000 1,456,000
Bleached Market Pulp - Tons 134,000 125,000 137,000
Corrugated Containers - msf 22,976,000 24,491,000(D) 25,709,000(D)
Grocery Bags - Tons 113,000 105,000 111,000
Business Forms - Tons 345,000 316,000 334,000
Cut-Sheets - Tons 500,000 586,000 697,000
WILLAMETTE INDUSTRIES, INC.
PRODUCTION SUMMARY
2000 2001 2002
BUILDING MATERIALS GROUP
Western Plywood - 3/8" msf 335,000 255,000 269,000
Southern Plywood - 3/8" msf 792,000 596,000 626,000
Atlantic Plywood - 3/8" msf 305,000 329,000 343,000
Total 1,432,000 1,180,000 1,238,000
Oriented Strand
Board - 3/8" msf 296,000 330,000 350,000
Western Lumber - 1" mbf 659,000 712,000 742,000
Southern Lumber - 1" mbf 188,000 179,000 199,000
Atlantic Lumber - 1" mbf 16,000 41,000 45,000
Total 863,000 932,000 986,000
Particleboard - 3/4" msf 771,000(A) 790,000(A) 1,012,000(A)
MDF -3/4" msf 577,000(B) 591,000(B) 613,000(B)
Lam Beams - 1" mbf 84,000 81,000 86,000
Structural I-Beams -
M. Lin. Ft. 68,000 60,000 57,000
LVL - ccf 52,000 50,000 56,000
PAPER GROUP
Brown Paper 1,888,000(C) 1,869,000(C) 1,903,000(C)
White Paper - Tons 1,483,000 1,451,000 1,485,000
Bleached Market Pulp - Tons 203,000 240,000 266,000
Corrugated Containers - msf 26,925,000(D) 26,361,000(D) 29,002,000(D)
Grocery Bags - Tons 104,000 99,000 110,000
Business Forms - Tons 307,000 282,000 266,000
Cut-Sheets - Tons 799,000 881,000 980,000
(A) Includes International -- 69,000 msf 1999, 141,000 msf 2000,
175,000 msf 2001 and 245,000 msf 2002.
(B) Includes International -- 161,000 msf 1997, 227,000 msf 1998,
251,000 msf 1999, 256,000 msf 2000, 261,000 msf 2001 and
269,000 msf 2002.
(C) Includes International -- 14,000 tons 2000, 24,000 tons 2001 and
25,000 tons 2002.
(D) Includes International -- 357,000 msf 1998, 350,000 msf 1999,
1,204,000 msf 2000, 1,471,000 msf 2001 and 1,747,000 msf 2002.
SOURCE Willamette Industries, Inc.
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Related links:
http://www.wii.com
Company News On-Call:
http://www.prnewswire.com/comp/971763.html
CONTACT:
Greg Hawley, EVP & CFO, +1-503-227-5581, or
Jackie Lang, Communications Manager, +1-503-721-2769, both of
Willamette Industries, Inc.; or Paul Verbinnen, David Reno, or
Jim Barron, all of Citigate Sard Verbinnen, +1-212-687-8080, for
Willamette Industries, Inc.
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