PORTLAND, Ore., July 12 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today reported financial results for the second quarter ended June 30, 2001.
Net earnings for the 2001 second quarter were $70.8 million, or $0.64 per
diluted share, versus net earnings of $66.6 million, or $0.61 per diluted
share, in the first quarter of 2001. Sales for the 2001 second quarter were
$1.14 billion, as compared to $1.13 billion for the previous quarter.
Second quarter net earnings include a $0.02 per share write-off related to
obsolete equipment at the newly remodeled Dodson sawmill and a $0.04 per share
charge associated with the defense against Weyerhaeuser's hostile takeover
attempt, partially offset by a $0.03 per share gain due to a reduction in the
Company's tax rate to 29%. Excluding these non-recurring items, diluted
earnings per share would be $0.67.
Duane McDougall, President and Chief Executive Officer, said, "Once again,
Willamette produced solid earnings for the quarter despite a difficult market
environment in which many of our competitors are losing money. Our low cost,
integrated business strategy, balanced business mix, and exceptionally
dedicated employees allow us to maintain our position among the performance
leaders in the industry."
"Earnings for Willamette's brown paper segment were nearly flat compared
with the first quarter of 2001 with pricing declines of less than 1%.
Corrugated volumes were nearly flat with the second quarter of last year, as
compared to industry shipments, which have declined approximately 6%. In
white paper, while industry demand declined, Willamette's business forms and
cut sheet volume grew by 3.4% over last year's second quarter, demonstrating
our ability to grow in the face of weakening market conditions. Weakening
white paper prices and depressed pulp pricing, however, led to a sequential
drop in white paper earnings from the first quarter of 2001. In addition,
white paper pricing has declined in recent weeks, but demand remains solid and
inventories remain at very good levels."
McDougall continued, "Our earnings were buoyed by improvement in our
building materials segment, which benefited from higher lumber and panel
prices. Pricing for these products has since declined, and we do not expect
similar returns in the third quarter. Particleboard pricing has also come
under pressure, and, in response to the weak market conditions and to best
balance inventory levels, we expect to take longer than expected down time for
regularly scheduled maintenance in the current quarter."
Commenting on the Company's outlook, McDougall said: "Given the market, we
believe the second half of 2001 will be challenging, with pricing pressure in
both white paper and building materials. However, in our view, Willamette
remains well positioned to continue to be an industry leader in
profitability."
Conference Call Information:
WHAT: Willamette Industries Earnings Conference Call
WHEN: Thursday, July 12, 2001
9:00 a.m. Eastern time
NUMBER: 800-482-2239 or 303-224-6997
Dial in by 8:45 a.m. Eastern time
Conference name/reservation number: 1111210
WEBCAST: http://www.StreetFusion.com "Live Webcast Center"
REBROADCAST July 12 at 3:30 p.m. Eastern time through July 19
DATES: at 5:00 p.m. Eastern time
REBROADCAST 800-625-5288 or 303-804-1855
NUMBER: Reservation number 1111210
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.
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 June 30
Basic Earnings Per Share $0.65 $0.82
Diluted Earnings Per Share 0.64 0.82
Sales 1,136,314,000 1,188,061,000
Earnings Before Taxes 95,526,000 137,698,000
Net Earnings 70,764,000 90,192,000
Average Shares Outstanding:
Basic 109,688,000 110,177,000
Diluted 110,323,000 110,528,000
Six Months Ended June 30
Basic Earnings Per Share $1.25 $1.59
Diluted Earnings Per Share 1.25 1.58
Sales 2,267,978,000 2,355,187,000
Earnings Before Taxes 193,537,000 267,933,000
Net Earnings 137,411,000 175,496,000
Average Shares Outstanding:
Basic 109,604,000 110,723,000
Diluted 110,219,000 111,217,000
WILLAMETTE INDUSTRIES, INC.
Quarterly Statistical Data
Second Quarter 2001
Quarter Ended June 30 Six Months Ended June 30
2001 2000 2001 2000
PRODUCT SHIPMENTS
Lumber 1" - MBF 213,748 216,105 455,897 429,909
Plywood - 3/8" MSF 306,752 389,199 605,043 790,180
Oriented Strand Board
- 3/8" MSF 77,131 79,212 155,658 152,172
Domestic Particleboard
- 3/4" MSF 151,750 170,480 309,440 329,628
International Particleboard
- 3/4" MSF 43,731 39,313 88,502 78,416
Domestic MDF
- 3/4" MSF 83,797 83,571 165,713 164,220
International MDF
- 3/4" MSF 64,405 66,201 128,495 134,102
Domestic Corrugated
- MSF 6,262,302 6,284,520 12,443,882 12,776,234
International Corrugated
- MSF 419,167 204,205 790,436 298,076
Grocery Bags - Tons 26,076 26,609 50,362 53,870
Business Forms - Tons 87,875 91,268 175,318 183,477
Cut Sheets - Tons 202,527 186,667 405,972 368,638
Brown Mills - Tons 460,231 469,925 913,441 927,924
Market Pulp - Tons 66,159 47,512 131,192 84,574
White Mills - Tons 359,401 379,550 722,893 761,118
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials Group $337,098 $384,611 $662,193 $776,269
Brown Paper 446,724 440,366 883,353 858,946
White Paper 352,492 363,084 722,432 719,972
Operating Earnings:
Building Materials Group 34,767 46,169 53,259 91,447
Brown Paper 76,815 79,654 155,721 146,910
White Paper 30,389 60,342 71,152 118,622
Corporate (13,453) (12,266) (25,948) (23,626)
Non-Recurring and Other
Income (Expense) - Net (9,507) (5,518) (10,651) (6,004)
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 938,640 947,703 1,877,676 1,890,666
Selling & Administrative
Expense 69,156 66,459 136,118 131,168
Interest Expense - Net 23,485 30,683 49,996 59,416
Capitalized Interest 4,468 515 7,319 2,184
Income Taxes 24,762 47,506 56,126 92,437
Tax Rate 25.9% 34.5% 29.0% 34.5%
Depreciation & Amortization 70,611 66,305 140,062 131,119
Cost of Fee Timber Harvested 12,011 11,365 24,360 21,184
Deferred Taxes 13,427 10,363 32,933 30,618
Plant, Property & Equipment 168,859 97,073 280,987 168,297
Timber, Roads & Reforestation 3,205 2,982 7,676 8,995
Acquisitions -- 149,514 -- 149,514
AVERAGE SHARES OUTSTANDING (in Thousands)
Basic 109,688 110,177 109,604 110,723
Diluted 110,323 110,528 110,219 111,217
NOTES:
(A) Non-recurring items include:
2nd Quarter 2001 -- Charge for hostile takeover defense costs of
$6.3 million.
-- Charge for equipment abandonments of $2.9 million.
-- Adjustment of $0.03 per diluted share due to a
change in tax rate from 32.0% to 29.0%.
1st Quarter 2001 -- Gain on sale of non-strategic timberlands of
$5.3 million.
-- Charge for hostile takeover defense costs of
$6.0 million.
2nd Quarter 2000 -- Charge for facility closure and alleged Clean Air
Act violation settlement of $5.1 million.
(B) In the second quarter of 2000, the company completed its acquisition
of four facilities in Mexico and a bleached pulp mill in Georgia.
Willamette Industries, Inc.
Consolidated Balance Sheets
(000s omitted, except per share amounts)
6/30/01 12/31/00
Assets
Current Assets:
Cash $23,837 $24,284
Accounts receivable - net 435,197 459,591
Inventories 446,595 473,788
Prepaid expenses 33,785 35,154
Total current assets 939,414 992,817
Other assets 91,905 92,975
Timber, timberlands and related
facilities - net 982,232 1,014,285
Property, plant and equipment - net 3,160,133 3,017,593
$5,173,684 $5,117,670
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable - current $118,707 $127,499
Accounts payable and accrued expenses 414,650 450,040
Federal and state income taxes 11,638 19,184
Total current liabilities 544,995 596,723
Long-term debt 1,529,909 1,542,926
Deferred income taxes and other liabilities 617,512 596,978
Stockholders' Equity:
Common stock, $.50 par value;
authorized 150,000
shares; issued and outstanding 109,816
and 109,417 shares 54,908 54,709
Capital surplus 242,639 229,598
Retained earnings 2,183,721 2,096,736
Total stockholders' equity 2,481,268 2,381,043
$5,173,684 $5,117,670
Consolidated Statements of Earnings
(000s omitted, except per share amounts)
Three Months Ended Six Months Ended
6/30/01 6/30/00 6/30/01 6/30/00
Net sales $1,136,314 $1,188,061 $2,267,978 $2,355,187
Cost of sales 938,640 947,703 1,877,676 1,890,666
Gross profit 197,674 240,358 390,302 464,521
Selling and
administrative
expense 69,156 66,459 136,118 131,168
Non-recurring and
other income (expense)
- net (9,507) (5,518) (10,651) (6,004)
Operating earnings 119,011 168,381 243,533 327,349
Interest expense 23,485 30,683 49,996 59,416
Earnings before
income taxes 95,526 137,698 193,537 267,933
Income taxes 24,762 47,506 56,126 92,437
Net earnings $70,764 $90,192 $137,411 $175,496
Basic earnings per
share $0.65 $0.82 $1.25 $1.59
Diluted earnings per
share $0.64 $0.82 $1.25 $1.58
Average shares
outstanding - basic 109,688 110,177 109,604 110,723
Average shares
outstanding - diluted 110,323 110,528 110,219 111,217
Willamette Industries, Inc.
Summary of Cash Flows
(000s omitted)
Six Months Ended
6/30/01 6/30/00
Operating Activities:
Net earnings $137,411 $175,496
Depreciation, amortization and cost of
fee timber harvested 164,422 152,303
Deferred income taxes 32,933
30,618
Change in working capital items 3,112 (48,602)
337,878 309,815
Investing Activities:
Proceeds from sale of assets 17,437 661
Expenditures for property purchases (280,987) (168,297)
Expenditures for timber, timberlands,
roads, and reforestation (7,676) (8,995)
Acquisitions -- (149,514)
Other (8,096) 17,973
(279,322) (308,172)
Financing Activities:
Net change in operating lines of credit (8,000) 97,863
Debt borrowing 3,644 110,241
Proceeds from sale of common stock
13,232 1,758
Repurchased common stock -- (84,071)
Cash dividends (50,426) (46,558)
Payment on debt (17,453) (82,291)
(59,003) (3,058)
Change in cash $(447) $(1,415)
Willamette Industries, Inc.
2nd Quarter 2001 vs. 1st Quarter 2001
Selling Price Variances
AVERAGE PRICE
VARIANCE PER UNIT
INCREASE/
(DECREASE)
Q2 2001
vs. Q1 2001
Bleached pulp - ton $(65.00)
Forms - ton $(6.00)
Cut sheets - ton $(11.00)
Corrugated containers - ton $(2.00)
Paper bags - ton $20.00
Lumber - mbf $46.00
Plywood - 3/8" msf $35.00
Oriented strand board - 3/8" msf $42.00
Domestic particleboard - 3/4" msf $2.00
Domestic MDF - 3/4" msf $22.00
SOURCE Willamette Industries
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Related links:
http://www.wii.com
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, all of
Citigate Sard, 212-687-8080, for Willamette Industries
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