PORTLAND, Ore., April 13 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) reported first quarter net earnings of $22.1 million or $.20 per
share (diluted), up 67% from first quarter 1997 net earnings of $13.3 million
or $.12 per share (diluted). Sales were $900.1 million, up 5% from the same
period a year earlier.
Both prices and volumes were up in most of the company's paper product
lines, according to William Swindells, chief executive officer. "The brown
paper side of the business is performing very well," Swindells noted. "Prices
for our brown paper are up nicely, and volume was improved. Both volume and
prices for corrugated containers showed increases over the quarter a year
earlier as well.
"While volume in fine paper production was flat, prices showed increases
over first quarter 1997," Swindells said. "Likewise, prices and volumes in
our cut sheet business were up significantly compared to the previous year's
first quarter. The new Brownsville, Tennessee cut sheet plant came on line
during the quarter, helping us build internal converting capacity for the new
Kentucky paper machine scheduled to start up during the second quarter of this
year."
While prices in Willamette's building materials lines have shown strength
during the quarter, most are down from first quarter 1997. "The notable
exception is oriented strand board which is up nearly 20% from the quarter a
year earlier," Swindells noted. "While our plywood volume is down from first
quarter 1997 due to a plant closure last summer, pricing has remained flat."
The company's off-shore production of medium density fiberboard (MDF)
increased during the quarter with the acquisition of MDF D'Aquitaine in
France. "Our facilities in Ireland and France have allowed us to participate
directly in a healthy European market for MDF and given us a new channel for
marketing some of our domestic production of other wood products," Swindells
noted.
"This is the first time in three years that we've seen an increase in
earnings over the year-earlier quarter," Swindells noted. "We believe it's a
good sign that markets have strengthened and that our production efficiencies
are beginning to be recognized. I'm optimistic the second quarter will show
sustained improvement in most product lines."
Willamette Industries is an integrated forest products company with
103 manufacturing facilities and 1.9 million acres of timberland.
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. Refer to Willamette Industries' Securities and Exchange Commission
filings for further information.
WILLAMETTE INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
Quarter Ended March 31 1998 1997
Basic Earnings Per Share (a) $ 0.20 $ 0.12
Diluted Earnings Per Share (a) $ 0.20 $ 0.12
Sales $900,075,000 $855,192,000
Earnings Before Taxes $ 33,712,000 $ 21,206,000
Net Earnings $ 22,081,000 $ 13,317,000
Average Diluted Shares
Outstanding (a) 111,915,000 111,298,000
(a) Share and per share amounts restated to reflect 2-for-1 stock split on
September 12, 1997.
WILLAMETTE INDUSTRIES, INC. April 13, 1997
Quarterly Statistical Data
First Quarter 1998
First Quarter
1998 1997
PRODUCT SHIPMENTS
Lumber - 1" 173,353 156,660
Plywood - 3/8" 368,504 409,674
Oriented Strand Board - 3/8" 63,358 73,615
Particleboard - 3/4" 147,417 144,105
MDF - 3/4" 128,880* 114,085*
Corrugated - MSF 5,793,471 5,219,222
Grocery Bags - Tons 24,767 27,099
Business Forms - Tons 82,304 92,220
Cut-sheets - Tons 124,331 114,376
Brown Mills - Tons 447,936 416,868
Market Pulp - Tons 32,217 29,475
White Mills - Tons 276,947 280,943
* Includes 52,208 and 43,213 for International MDF for 1998 and 1997,
respectively.
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials Group $293,651 $318,916
Paper Group 606,424 536,276
Operating Earnings: **
Building Materials Group 13,549 27,487
Paper Group 59,418 32,110
Corporate (11,456) (9,934)
** Operating earnings in prior year were restated to exclude the allocated
portion of "corporate."
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 775,823 745,896
Selling & Administration 62,741 59,633
Other Income - Net 2,773 686
Interest Expense - Net 30,572 29,143
Capitalized Interest 5,629 3,492
Income Taxes 11,631 7,889
Tax Rate 34.5% 37.2%
Depreciation & Amortization 73,600 69,892
Fee Stumpage 12,195 12,459
Deferred Taxes 5,816 4,767
Plant, Property & Equipment (1) 93,770 90,603
Timber, Roads & Reforestation 5,494 5,078
AVG. SHARES OUTSTANDING (000'S)
Basic 111,362 110,728
Diluted 111,915 111,298
(1) Includes capitalized interest
Note: Certain reclassifications have been made to prior year's data to
conform with 1998 presentation.
Web site: http://www.wii.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 971763
CONTACT:
E. Jane Sinnema, Director of Investor
Relations of Willamette Industries, Inc., 503-721-8642
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