PORTLAND, Ore., Jan. 19 /PRNewswire/ --
Willamette Industries, Inc. (NYSE: WLL) today reported 1999 annual earnings of
$260 million, or $2.33 per diluted share, up 191% over 1998's $0.80 per
diluted share. Earnings included a previously-announced change in accounting
for estimates relating to depreciation amounting to $.46 for the year.
Fourth quarter earnings of $84 million, or $.75 per diluted share, were
more than ten times higher than fourth quarter 1998's results of $7 million or
$.07 per diluted share. Results for fourth quarter 1999 included a change in
accounting for estimates relating to depreciation amounting to $.11 per
diluted share.
Sales for the full year 1999 were $4.1 billion, up 10% over 1998 net sales
of $3.7 billion.
All of the company's product lines showed strong gains in the fourth
quarter compared with fourth quarter 1998, according to Duane McDougall, chief
executive officer.
"White paper products results strengthened significantly during the
quarter, compared to both fourth quarter 1998 and third quarter 1999, with
pricing and volumes up," McDougall said. "Our brown paper markets continued
their incremental growth, again out-performing the industry in percentage of
volume growth for the year. Even our building materials business, which
normally experiences a slow fourth quarter, experienced higher operating
earnings than in last year's fourth quarter: $38 million compared to
$15 million in the fourth quarter of 1998," McDougall noted.
"The prospects for the year 2000 look promising in all of our product
lines," McDougall said. "White paper demand continues to be strong and brown
paper shows no sign of slowing its growth rate. Building materials activity
should continue at reasonable levels, absent any dramatic change in interest
rates. We've recently completed a number of capital projects that have
reduced our cost of production. The market we anticipate for 2000 should give
us an excellent opportunity to take full advantage of the benefits of our
capital spending."
Willamette Industries is an integrated forest products company with
104 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.
WILLAMETTE INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
1999 1998
Quarter Ended December 31:
Basic Earnings Per Share $0.75 $0.07
Diluted Earnings Per Share $0.75 $0.07
Sales $1,059,248,000 $897,023,000
Earnings Before Taxes $130,289,000 $10,649,000
Net Earnings $83,609,000 $7,153,000
Average Shares Outstanding:
Basic 111,574,000 111,034,000
Diluted 112,149,000 111,422,000
Twelve Months Ended December 31:
Basic Earnings Per Share $2.34 $0.80
Diluted Earnings Per Share $2.33 $0.80
Sales $4,077,969,000 $3,700,282,000
Earnings Before Taxes $413,275,000 $132,783,000
Net Earnings $260,475,000 $88,983,000
Average Shares Outstanding:
Basic 111,375,000 111,302,000
Diluted 112,001,000 111,747,000
WILLAMETTE INDUSTRIES, INC.
Quarterly Statistical Data
Fourth Quarter 1999
Fourth Quarter Year-to-Date
1999 1998 1999 1998
PRODUCT SHIPMENTS
Lumber - 1" 198,675 185,537 819,800 755,019
Plywood - 3/8" 373,293 383,038 1,579,715 1,418,371
Oriented Strand Board - 3/8 79,108 70,074 320,746 298,523
Particleboard - 3/4" 188,864 * 149,663 689,453
* 615,749
MDF - 3/4" 142,462 129,090 573,077 539,691
Corrugated - MSF 6,293,951 6,029,481 25,468,245 24,376,588
Grocery Bags - Tons 29,960 28,424 113,958 108,484
Business Forms - Tons 97,966 88,322 374,438 336,633
Cut-sheets - Tons 162,739 144,255 650,567 542,331
Brown Mills - Tons 473,456 456,958 1,839,322 1,791,080
Market Pulp - Tons 46,020 30,308 144,276 124,468
White Mills - Tons 382,206 344,676 1,456,523 1,267,319
* Quarter and year-to-date include 39,402 and 69,069 respectively, for
international particleboard in 1999.
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials Group $346,696 $311,607 $1,467,218 $1,254,749
Brown Paper 387,631 333,984 1,468,440 1,379,010
White Paper 324,921 251,432 1,142,311 1,066,523
Operating Earnings: **
Building Materials Group 38,790 15,599 253,910 80,601
Brown Paper 73,326 38,846 225,283 166,680
White Paper 60,897 3,199 118,955 58,654
Corporate (11,353) (10,481) (47,879) (43,191)
** Operating earnings for 1999 include the positive impact of change in
estimate for depreciable lives of property, plant and equipment as follows:
Building Materials Group 5,600 -- 22,200 --
Brown Paper 5,900 -- 23,600 --
White Paper 9,100 -- 36,600 --
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 829,619 786,276 3,261,302 3,185,028
Selling & Administration 67,969 63,584 266,398 252,510
Other Income (Expense) - Net (1,524) (2,476) (11,710) ***
2,029
Interest Expense - Net 29,847 34,038 125,284 131,990
Capitalized Interest 1,708 1,075 3,998 13,589
Income Taxes 46,680 3,496 152,800 43,800
Tax Rate 35.8% 33.0% 37.0% 33.0%
Depreciation & Amortization 65,046 84,896 257,522 316,765
Fee Stumpage 10,665 11,929 46,197 54,376
Deferred Taxes 26,644 (7,663) 86,938 7,683
Plant, Property & Equipment (1) 86,522 114,037 267,856 417,772
Timber, Roads & Reforestation 4,073 9,113 22,390 24,067
***Includes a $10.0 million, or $.09 per share, charge related to an
estimate of expected, on-tax-deductible environmental penalties resulting from
a Clean air Act assessment of Willamette's building materials operations.
(1) Includes capitalized interest
AVG. SHARES OUTSTANDING (000'S)
Basic 111,574 111,034 111,375 111,302
Diluted 112,149 111,422 112,001 111,747
Note: Certain reclassifications have been made to prior year's data to
conform with 1999 presentation.
SOURCE Willamette Industries, Inc.
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CONTACT:
E. Jane Sinnema of Willamette Industries ,
503-721-8642
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