PORTLAND, Ore., July 13 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) reported second quarter earnings of $24.0 million, or $.21 per
share (diluted), up 31% from second quarter 1997 net earnings of $17.7
million, or $.16 per share (diluted). Sales were $946 million, up 8% from
the second quarter of 1997.
Volumes were up in most of the company's product lines, but prices were
mixed, according to William Swindells, Willamette's chief executive officer.
"Brown paper markets are strong and stable, with prices up significantly over
second quarter 1997," Swindells said. "While the recovery has flattened for
the moment, the brown paper market remains a very strong performer."
In the white paper side of Willamette's business, pricing was up compared
to second quarter 1997, but down from levels experienced during the first
quarter 1998. Willamette started up the second uncoated free sheet machine at
its Kentucky Mills facility at the end of the second quarter. "The start-up
was smooth and the mill is on-schedule with its grade qualifications,"
according to Swindells. "The pulp mill is up to design capacity and the new
machine is operating at design capacity as well and meeting our expectations."
Mixed results also occurred in the company's building materials lines of
business. While lumber prices were down drastically from second quarter 1997,
oriented strand board prices were up significantly and plywood prices were
flat. Strong demand was experienced for Willamette's engineered wood
products, I-joints and laminated veneer lumber. Volumes improved in all lines
except plywood and laminated beams compared to the second quarter of 1997.
The company announced the closure of one of its Oregon laminated beam plants
during the second quarter whose markets were predominately in Japan.
"The company's most significant production-related capital projects have
either just been completed or will come on line before the end of this year,"
Swindells noted. "We'll be able to take advantage of the operating
efficiencies these new facilities afford."
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 June 30:
Basic Earnings Per Share $0.21 $0.16
Diluted Earnings Per Share $0.21 $0.16
Sales $946,390,000 $879,348,000
Earnings Before Taxes $35,087,000 $28,263,000
Net Earnings $24,014,000 $17,750,000
Average Diluted Shares
Outstanding (a) 112,050,000 111,569,000
Six Months Ended June 30:
Basic Earnings Per Shares $0.41 $0.28
Diluted Earnings Per Share $0.41 $0.28
Sales $1,846,465,000 $1,734,540,000
Earnings Before Taxes $68,799,000 $49,469,000
Net Earnings $46,095,000 $31,067,000
Average Diluted Shares
Outstanding (a) 112,027,000 111,339,000
(a)Share and per share amount restated to reflect 2-for-1 stock split
on September 12, 1997.
WILLAMETTE INDUSTRIES, INC. 13-Jul-98
Quarterly Statistical Data
Second Quarter 1998
Second Quarter Year-to-Date
1998 1997 1998 1997
PRODUCT SHIPMENTS
Lumber - 1" 199,105 163,493 372,458 320,153
Plywood - 3/8" 330,985 431,194 699,489 840,868
Oriented Strand Board - 3/8"83,525 80,143 146,883 153,758
Particleboard - 3/4" 160,545 154,457 307,962 298,562
MDF - 3/4" 145,652* 122,964* 274,532** 237,049**
Corrugated - MSF 6,271,132 5,619,413 12,064,604 10,838,635
Grocery Bags - Tons 27,208 30,246 51,975 57,345
Business Forms - Tons 81,409 87,172 163,713 179,392
Cut-sheets - Tons 130,915 122,623 255,246 236,999
Brown Mills - Tons 438,648 419,874 886,583 836,742
Market Pulp - Tons 33,439 34,807 65,656 64,282
White Mills - Tons 283,982 275,452 560,929 556,396
* Quarter includes 65,884 and 44,493 for International MDF for 1998 and
1997, respectively.
** Year-to-date includes 118,092 and 87,706 for International MDF for 1998
and 1997, respectively.
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials Group$320,416 $341,861 $614,067 $660,777
Paper Group 625,974 537,487 1,232,398 1,073,763
Operating Earnings: ***
Building Materials Group 17,237 43,681 30,786 71,168
Paper Group 58,623 24,467 118,041 56,577
Corporate (10,327) (10,560) (21,783) (20,494)
*** Operating earnings in prior year were restated to exclude the
allocated portion of "corporate."
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales $817,443 $760,533 $1,593,266 $1,506,429
Selling & Administration 63,414 61,227 126,155 120,860
Other Income - Net (19) 104 2,754 790
Interest Expense - Net 30,427 29,429 60,999 58,572
Capitalized Interest 6,459 4,408 12,088 7,900
Income Taxes 11,073 10,513 22,704 18,402
Tax Rate 31.6% 37.2% 33.0% 37.2%
Depreciation & Amortization75,244 71,292 148,844 141,184
Fee Stumpage 12,707 12,986 24,902 25,445
Deferred Taxes 748 4,205 6,564 8,972
Plant, Property &
Equipment (1) 110,254 139,645 204,024 230,248
Timber, Roads &
Reforestation 6,302 5,280 11,796 10,358
(1) Includes capitalized interest
Avg. Shares Outstanding (000's)
Basic 111,417 110,835 111,390 110,781
Diluted 112,050 111,569 112,027 111,339
Note: Certain reclassifications have been made to prior years data to
conform with 1998 presentation.
SOURCE Willamette Industries, Inc.
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CONTACT:
Analysts: J.A. Parsons of Willamette
Industries, Inc., 503-227-5581
NOTE TO EDITORS: A full copy of this release, as well as other
company news, is available at http://www.wii.com
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