PORTLAND, Ore., Jan. 20 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) reported fourth quarter 1998 earnings of $7.1 million or $.07 per
diluted share. Included were several non-recurring items: the
recently-announced closure of the #3 paper machine at Kingsport, Tennessee;
sale of the Cathlamet, Washington timber tract; and settlement from the
Zwolle, Louisiana plywood plant fire, that as a group, amounted to a pre-tax
charge of approximately $1 million. This compares to $.19 per share in the
fourth quarter of 1997, which included an income tax gain of $.03 per share.
Willamette's fourth quarter earnings brought the unaudited net annual
earnings for 1998 to $89 million or $.80 per share, up 21% over 1997's
results. Sales for the full year 1998 were $3.7 billion, up 6% over
1997 sales.
Notable among the company's product lines was its corrugated container
business, according to Duane C. McDougall, Willamette's chief executive
officer. "Volumes for the year in our corrugated container division were up
8% over those of the previous year," McDougall said. "This volume increase
and pricing improvement on a year-to-year comparison, were more than enough to
offset profit deterioration in our building materials and fine paper product
lines. However, fourth quarter was a disappointing quarter."
While housing start predictions are up over previous estimates and there
are recent industry announcements of paper price increases, nonetheless,
prices of most of the company's product lines deteriorated during the
fourth quarter compared to early quarters in 1998. "However, we believe
prices have bottomed out in most product lines and are optimistic of price
increases early in 1999," McDougall said.
Willamette Industries is a vertically integrated forest products company
with more than 100 manufacturing facilities in the United States, Europe and
Mexico. The company manufactures building materials, fine paper products and
corrugated containers. Willamette owns approximately 1.7 million acres of
timberland in Oregon, Louisiana, Tennessee, Missouri, Arkansas, Texas and the
Carolinas.
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, general business and economic
conditions, competitive products and pricing, as well as fluctuations in
demand; potential equipment malfunction; and plant construction and repair
delays. Please refer to Willamette Industries' Securities and Exchange
Commission filings for further information.
WILLAMETTE INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
1998 1997
Quarter Ended December 31:
Basic Earnings Per Share $ 0.07 $ 0.19
Diluted Earnings Per Share $ 0.07 $ 0.19
Sales $ 897,023,000 $ 878,041,000
Earnings Before Taxes $ 10,649,000 $ 28,836,000
Net Earnings $ 7,153,000 $ 21,199,000
Average Diluted Shares Outstanding 111,422,000 111,798,000
Twelve Months Ended December 31:
Basic Earnings Per Share $ 0.80 $ 0.66
Diluted Earnings Per Share $ 0.80 $ 0.65
Sales $3,700,282,000 $3,501,376,000
Earnings Before Taxes $ 132,783,000 $ 111,263,000
Net Earnings $ 88,983,000 $ 72,963,000
Average Diluted Shares Outstanding 111,747,000 111,550,000
WILLAMETTE INDUSTRIES, INC.
January 20, 1999
Quarterly Statistical Data
Fourth Quarter 1998
Fourth Quarter Year-to-Date
1998 1997 1998 1997
PRODUCT SHIPMENTS
Lumber - 1 185,537 158,344 755,019 624,275
Plywood - 3/8 383,038 353,980 1,418,371 1,537,100
Oriented Strand
Board - 3/8 70,074 75,406 298,523 309,677
Particleboard - 3/4 149,663 147,129 615,749 593,428
MDF - 3/4 129,090* 113,949** 539,691* 466,313**
Corrugated - MSF 6,029,481 5,771,700 24,376,588 22,558,988
Grocery Bags - Tons 28,424 29,281 108,484 117,042
Business Forms - Tons 88,322 86,420 336,633 356,078
Cut-sheets - Tons 144,255 117,349 542,331 481,283
Brown Mills - Tons 456,958 457,404 1,791,080 1,729,803
Market Pulp - Tons 30,308 33,335 124,468 133,639
White Mills - Tons 344,676 279,646 1,267,319 1,117,824
* Quarter includes 55,022 and 36,334 for International MDF for 1998
and 1997, respectively.
** Year-to-date includes 226,867 and 161,139 for International MDF
for 1998 and 1997, respectively.
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials
Group $311,387 $290,203 $1,253,828 $1,262,692
Paper Group 585,636 587,838 2,446,454 2,238,684
Operating Earnings: ***
Building Materials
Group 15,599 22,913 80,601 124,697
Paper Group 42,045 44,922 225,334 142,366
Corporate (10,481) (10,516) (43,191) (40,898)
*** Operating earnings in prior year were restated to exclude the
allocated portion for corporate.
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 786,276 757,336 3,185,028 3,029,892
Selling
& Administration 63,584 63,386 252,510 245,319
Other Income - Net (2,476) 259 2,029 2,088
Interest Expense - Net 34,038 28,742 131,990 116,990
Capitalized Interest 1,075 6,623 13,589 19,939
Income Taxes 3,496 7,637 43,800 38,300
Tax Rate 33.0% 26.5% 33.0% 34.4%
Depreciation
& Amortization 84,896 74,032 316,765 286,300
Fee Stumpage 11,929 12,052 54,376 52,649
Deferred Taxes (7,663) 14,774 7,683 28,650
Plant, Property
& Equipment (A) 114,037 144,358 417,772 506,348
Timber, Roads
& Reforestation 9,113 4,684 24,067 21,560
(A) Includes capitalized interest
AVG. SHARES OUTSTANDING (000'S)
Basic 111,034 111,228 111,302 110,975
Diluted 111,422 111,798 111,747 111,550
NOTE: Certain reclassifications have been made to prior year's data
to conform with 1998 presentation.
SOURCE Willamette Industries, Inc.
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CONTACT:
E. Jane Sinnema of Willamette Industries,
Inc., 503-721-8642
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