Continues to Outperform Sector
PORTLAND, Ore., April 12 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today reported financial results for the first quarter ended March 31, 2001.
Net earnings for the 2001 first quarter were $66.6 million, or $0.61 per
diluted share, versus net earnings of $85.3 million, or $0.76 per diluted
share, in the first quarter of 2000. Sales for the 2001 first quarter were
$1.13 billion, as compared to $1.17 billion for the same period last year.
First quarter net earnings include a $0.03 per share gain from the sale of
non-strategic timberland offset by a $0.04 per share charge associated with
the defense of the unsolicited hostile takeover initiated by Weyerhaeuser
during the fourth quarter of 2000.
Duane McDougall, President and Chief Executive Officer, said, "Willamette
produced solid earnings for the quarter despite weakened conditions in the
general economy and higher energy costs across all lines of business. Our
strong performance relative to our peers, many of which already pre-announced
first quarter losses, is the result of our low cost, integrated business
strategy, balanced business mix, and the exceptional dedication and efforts of
our employees.
"Earnings were driven by continued strength in our brown paper segment,
which continues to perform well despite light seasonal volumes and high energy
costs," McDougall continued. "White paper earnings were down slightly from
the fourth quarter due to significant deterioration in pricing for hardwood
market pulp. Our building materials business remains profitable and our
plants continue to run efficiently, despite very difficult market conditions
across all grades."
Commenting on the Company's outlook, McDougall said: "In the face of
economic and market pressures, high energy costs, and a hostile takeover
attempt, we continue to believe we will remain the performance leader in the
forest products industry. We are confident that the continued pursuit of our
long-term strategic plan will yield significant growth opportunities for
shareholders, customers and our other constituencies."
Commenting on Weyerhaeuser's hostile takeover attempt, McDougall
concluded, "Our continued out-performance demonstrates why we believe we are
the industry's leading franchise and why we are adamantly opposed to
Weyerhaeuser's inadequate offer. Weyerhaeuser's proposal values Willamette at
a 1 percent discount to its 52-week high and a 6 percent discount to its all
time high, unlike other deals in which the target received a premium to these
benchmarks. Additionally, the alternative directors Weyerhaeuser has
nominated for election to the Willamette Board are entirely lacking in public
company board experience, and all of them have been paid $25,000 by
Weyerhaeuser just to stand for election. Given these facts, we ask our
shareholders: Will the Weyerhaeuser nominees act in a reasoned way on behalf
of all Willamette shareholders, or will they simply attempt to deliver
Willamette to Weyerhaeuser at a price your Board has determined is
inadequate?"
Conference Call Information:
WHAT: Willamette Industries Earnings Conference Call
WHEN: Thursday, April 12, 2001
11:00 a.m. Eastern time
NUMBER: 800-482-2239
Dial in by 10:45 a.m. Eastern time
Conference name/reservation number: 995289
WEBCAST: http://www.StreetFusion.com "Live Webcast Center"
REBROADCAST April 12 3:30 p.m. Eastern time through
DATES: April 19 5:00 p.m. Eastern time
REBROADCAST 800-625-5288 or 303-804-1855
NUMBER: Reservation number 995289
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.
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 March 31
Basic Earnings Per Share $0.61 $0.77
Diluted Earnings Per Share 0.61 0.76
Sales 1,131,664,000 1,167,126,000
Earnings Before Taxes 98,011,000 130,235,000
Net Earnings 66,647,000 85,304,000
Average Shares Outstanding:
Basic 109,520,000 111,279,000
Diluted 110,138,000 111,784,000
April 12, 2001
WILLAMETTE INDUSTRIES, INC. April 12, 2001
Quarterly Statistical Data
First Quarter 2001
First Quarter
2001 2000
PRODUCT SHIPMENTS
Lumber 1" - MBF 242,149 213,804
Plywood - 3/8" MSF 298,291 400,981
Oriented Strand Board - 3/8" MSF 78,527 72,960
Domestic Particleboard - 3/4" MSF 157,690 159,148
International Particleboard - 3/4"
MSF 44,771 39,103
Domestic MDF - 3/4" MSF 81,916 80,649
International MDF - 3/4" MSF 64,090 67,901
Domestic Corrugated - MSF 6,181,580 6,491,714
International Corrugated - MSF 371,269 93,871
Grocery Bags - Tons 24,286 27,261
Business Forms - Tons 90,443 92,209
Cut-sheets - Tons 203,445 181,971
Brown Mills - Tons 453,210 457,999
Market Pulp - Tons 65,033 37,062
White Mills - Tons 363,492 381,568
SEGMENT INFORMATION ($ in thousands)
Sales:
Building Materials Group $325,095 $391,658
Brown Paper 436,629 418,580
White Paper 369,940 356,888
Operating Earnings:
Building Materials Group 18,492 45,278
Brown Paper 78,906 67,256
White Paper 40,763 58,280
Corporate (12,495) (11,360)
Non-Recurring and Other Income
(Expense) - Net (A) (1,144) (486)
SUPPLEMENTAL FINANCIAL ($ in thousands)
Cost of Sales 939,036 942,963
Selling & Administrative Expense 66,962 64,709
Interest Expense - Net 26,511 28,733
Capitalized Interest 2,851 1,669
Income Taxes 31,364 44,931
Tax Rate 32.0% 34.5%
Depreciation & Amortization 69,451 64,814
Cost of Fee Timber Harvested 12,349 9,819
Deferred Taxes 19,506 20,255
Plant, Property & Equipment 112,128 71,224
Timber, Roads & Reforestation 4,471 6,013
AVERAGE SHARES OUTSTANDING (in thousands)
Basic 109,520 111,279
Diluted 110,138 111,784
(A) Non-recurring and other income (expense) -- net for the first quarter
of 2001 includes a $5.3 million gain on the sale of non-strategic
timberlands and a charge of $6.0 million for hostile takeover defense
costs.
Willamette Industries, Inc.
Consolidated Balance Sheets
(000s omitted, except per share amounts)
3/31/01 12/31/00
Assets
Current Assets:
Cash $30,221 $24,284
Accounts receivable - net 461,291 459,591
Inventories 453,083 473,788
Prepaid expenses 34,838 35,154
Total current assets 979,433 992,817
Other assets 92,636 92,975
Timber, timberlands and related
facilities - net 994,396 1,014,285
Property, plant and equipment - net 3,064,050 3,017,593
$5,130,515 $5,117,670
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable - current $110,879 $127,499
Accounts payable and accrued
expenses 411,062 450,040
Federal and state income taxes 28,492 19,184
Total current liabilities 550,433 596,723
Long-term debt 1,542,661 1,542,926
Deferred income taxes and other
liabilities 609,199 596,978
Stockholders' Equity:
Common stock, $.50 par value;
authorized 150,000
shares; issued and outstanding
109,590 and 109,417 shares 54,795 54,709
Capital surplus 235,236 229,598
Retained earnings 2,138,191 2,096,736
Total stockholders' equity 2,428,222 2,381,043
$5,130,515 $5,117,670
Consolidated Statements of Earnings
(000s omitted, except per share amounts)
Three Months Ended
3/31/01 3/31/00
Net sales $1,131,664 $1,167,126
Cost of sales 939,036 942,963
Gross profit 192,628 224,163
Selling and administrative expense 66,962 64,709
Non-recurring and other income
(expense) - net (A) (1,144) (486)
Operating earnings 124,522 158,968
Interest expense 26,511 28,733
Earnings before income taxes 98,011 130,235
Income taxes 31,364 44,931
Net earnings $66,647 $85,304
Basic earnings per share $0.61 $0.77
Diluted earnings per share $0.61 $0.76
Average shares outstanding - basic 109,520 111,279
Average shares outstanding - diluted 110,138 111,784
Note:
(A) Non-recurring and other income (expense) -- net for the first quarter
of 2001 includes a $5.3 million gain on the sale of non-strategic
timberlands and a charge of $6.0 million for hostile takeover defense
costs.
Willamette Industries, Inc.
Summary of Cash Flows
(000s omitted)
Three Months Ended
3/31/01 3/31/00
Operating Activities:
Net earnings $66,647 $85,304
Depreciation, amortization and cost
of fee timber harvested 81,800 74,633
Deferred income taxes 19,506 20,255
Change in working capital items (17,257) (36,680)
150,696 143,512
Investing Activities:
Proceeds from sale of assets 10,740 --
Expenditures for property purchases (112,128) (71,224)
Expenditures for timber,
timberlands,
roads, and reforestation (4,471) (6,013)
Other (2,541) 19,991
(108,400) (57,246)
Financing Activities:
Net change in operating lines of
credit (16,000) 5,858
Debt borrowing 1,951 --
Proceeds from sale of common stock 5,718 1,129
Repurchased common stock -- (31,593)
Cash dividends (25,192) (23,372)
Payment on debt (2,836) (40,846)
(36,359) (88,824)
Change in cash $5,937 $(2,558)
Willamette Industries, Inc.
1st Quarter 2001 vs 4th Quarter 2000
Selling Price Variances
AVERAGE PRICE VARIANCE
PER UNIT INCREASE/(DECREASE)
Q1 2001 March 2001
vs. Q4 2000 vs. Q1 2001
Bleached pulp - ton $(83.00) $(27.00)
Forms - ton $9.00 $6.00
Cut sheets - ton $(3.00) $(4.00)
Corrugated containers - ton $(1.00) $(4.00)
Paper bags - ton $13.00 $4.00
Lumber - mbf $(16.00) $8.00
Plywood - 3/8" msf $(5.00) $5.00
Oriented strand board - 3/8" msf $(14.00) $(2.00)
Domestic particleboard - 3/4" msf $(16.00) $(4.00)
Domestic MDF - 3/4" msf $2.00 $8.00
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 of
Citigate Sard Verbinnen, 212-687-8080, for Willamette Industries
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