PORTLAND, Ore., April 12 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) today reported first quarter 2000 net earnings of $85.3 million or
$.76 per diluted share, up 170% from first quarter 1999 net earnings of $31.6
million, or $.28 per diluted share.
Sales for the first quarter were $1.1 billion, up 21% from first quarter
1999.
Hardwood market pulp prices were up significantly over first quarter 1999
as were prices for white paper and converted paper products, according to
Duane McDougall, Willamette's chief executive officer. "Volumes in fine paper
and cut sheet products were up from a year ago. The normal effect is for
paper product prices to follow pulp prices, so additional pulp price increases
in the first quarter of 2000 bode well for the future of this line of our
business."
"Volumes and prices were up significantly in our brown paper lines as
demand for corrugated containers remains strong," McDougall noted. "A major
negative was the increased cost of old corrugated containers, a significant
raw material."
"Our Building Materials Group earnings were down slightly compared to a
strong first quarter last year," McDougall said. "Prices were mixed in most
of our product lines, except for oriented strand board which was up
significantly. Demand continued at a strong pace for particleboard and medium
density fiberboard accompanied by improved pricing. However, the higher cost
of logs had a dampening effect on profitability of lumber and plywood
operations."
During the quarter, Willamette increased the quarterly dividend by 17% and
repurchased $32 million of company common stock.
Willamette Industries is an integrated forest products company with 103
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
Quarter Ended March 31 2000 1999
Basic Earnings Per Share $0.77 $0.28
Diluted Earnings Per Share $0.76 $0.28
Sales $1,114,314,000 $923,453,000
Earnings Before Taxes $130,235,000 $ 47,155,000
Net Earnings $85,304,000 $ 31,594,000
Average Shares Outstanding - Diluted 111,784,000 111,478,000
April 12, 2000
WILLAMETTE INDUSTRIES, INC. April 12, 2000
Quarterly Statistical Data
First Quarter 2000
First Quarter
2000 1999
PRODUCT SHIPMENTS
Lumber - 1" 213,804 197,012
Plywood - 3/8" 400,981 401,406
Oriented Strand Board - 3/8" 72,960 79,789
Particleboard - 3/4" 198,251* 148,072
MDF - 3/4" 148,550** 143,572**
Corrugated - MSF 6,585,585 6,233,132
Grocery Bags - Tons 27,261 25,395
Business Forms - Tons 92,209 95,421
Cut-sheets - Tons 181,971 154,437
Brown Mills - Tons 457,999 435,325
Market Pulp - Tons 37,062 25,637
White Mills - Tons 381,568 357,168
* Includes 39,103 for international particleboard for 2000.
** Includes 67,901 and 63,919 for international MDF for 2000 and 1999,
respectively.
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials Group $368,238 $332,807
Brown Paper 404,566 332,697
White Paper 341,510 257,949
Operating Earnings:
Building Materials Group 45,278 49,758
Brown Paper 67,256 33,674
White Paper 58,280 9,190
Corporate (11,360) (12,616)
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 886,880 778,295
Selling & Administration 67,980 65,152
Other Income (Expense) - Net (486) (91)
Interest Expense - Net 28,733 32,760
Capitalized Interest 1,669 505
Income Taxes 44,931 15,561
Tax Rate 34.5% 33.0%
Depreciation & Amortization 64,814 63,605
Fee Stumpage 9,819 10,954
Deferred Taxes 20,255 10,900
Plant, Property & Equipment (a) 71,224 65,741
Timber, Roads & Reforestation 6,013 5,186
(a)Includes capitalized interest
AVERAGE SHARES OUTSTANDING (000'S)
Basic 111,279 111,002
Diluted 111,784 111,478
SOURCE Willamette Industries, Inc.
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http://www.wii.com
Company News On-Call:
http://www.prnewswire.com/comp/971763.html or fax,
800-758-5804, ext. 971763
CONTACT:
E. Jane Sinnema of Willamette Industries,
Inc., 503-721-8642
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