PORTLAND, Ore., July 13 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) today reported second quarter earnings of $63.3 million, or
$.57 per diluted share, up 171% from second quarter 1998's earnings of
$24.0 million or $.21 per diluted share. The results reflect a year-to-date
tax rate increase from 33% to 36%. Additionally, earnings include a
previously-announced change in accounting for estimates relating to
depreciation amounting to $.11 per share for the second quarter of 1999 and
$.24 per share for the first half of 1999.
Earnings for the first half of 1999 were $94.9 million or $.85 per diluted
share, up 107% from $46.1 million, or $.41 per diluted share for the first six
months of 1998.
Sales for the quarter were $1.0 billion, up 6% from second quarter 1998
sales.
Willamette's Building Materials Group turned in a record quarter for
earnings, according to Duane McDougall, chief executive officer. "It was an
outstanding quarter for our Building Materials Group, with record prices in
plywood and near record prices in lumber and OSB (oriented strand board),"
McDougall said. "Our plants have been operating well, volumes were up over
second quarter 1998 and demand continues strong."
The company's brown paper business also fared well compared to second
quarter 1998, according to McDougall. "Our brown paper mills and converting
plants continued to operate well during the quarter and price increases were
implemented during the second quarter," McDougall said. "We believe there are
continued growth opportunities in this sector of our business as demand
remains very strong."
Willamette's white paper business turned in disappointing results.
"Unplanned maintenance at our bleached pulp mill in Kentucky in April and June
negatively affected earnings along with a disproportionate amount of scheduled
maintenance at our white mills in the second quarter," according to McDougall.
"Indications of improving market conditions in white paper give us guarded
optimism for improvement in the second half of the year."
The company completed its acquisition of Darbo, S.A., a French
particleboard plant during the quarter.
Willamette Industries is an integrated forest products company with
101 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
1999 1998
Quarter Ended June 30:
Basic Earnings Per Share $0.57 $0.21
Diluted Earnings Per Share $0.57 $0.21
Sales $1,007,369,000 $946,390,000
Earnings Before Taxes $101,139,000 $35,087,000
Net Earnings $63,314,000 $24,014,000
Average Shares
Outstanding -- Diluted 112,055,000 112,050,000
Six Months Ended June 30:
Basic Earnings Per Share $0.85 $0.41
Diluted Earnings Per Share $0.85 $0.41
Sales $1,930,822,000 $1,846,465,000
Earnings Before Taxes $148,294,000 $68,799,000
Net Earnings $94,908,000 $46,095,000
Average Shares
Outstanding -- Diluted 111,787,000 112,027,000
July 13, 1999
WILLAMETTE INDUSTRIES, INC. 13-Jul-99
Quarterly Statistical Data
Second Quarter 1999
Second Quarter: Year-to-Date:
1999 1998 1999 1998
PRODUCT SHIPMENTS
Lumber -- 1" 215,367 199,105 412,379 372,458
Plywood -- 3/8" 410,524 330,985 811,930 699,489
Oriented Strand
Board -- 3/8" 81,023 83,525 160,812 146,883
Particleboard
-- 3/4" 160,968 160,545 309,040 307,962
MDF -- 3/4" 148,443 145,632 292,015 274,408
Corrugated -- MSF 6,272,210 6,271,132 12,505,342 12,064,604
Grocery Bags
-- Tons 29,024 27,208 54,419 51,975
Business Forms
-- Tons 90,141 81,409 185,562 163,713
Cut-sheets -- Tons 165,724 130,915 320,161 255,246
Brown Mills -- Tons 453,036 438,648 888,361 886,583
Market Pulp -- Tons 29,700 33,439 55,337 65,656
White Mills -- Tons 352,857 283,982 710,026 560,929
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials
Group $388,514 $320,614 $721,321 $614,502
Brown Paper 354,188 357,614 686,885 694,864
White Paper 264,667 268,162 522,616 537,099
Operating Earnings:*
Building Materials
Group 76,863 17,237 126,621 30,786
Brown Paper 55,479 43,228 89,153 84,334
White Paper 11,991 15,395 21,181 33,707
Corporate (11,281) (10,327) (23,897) (21,783)
*Operating Earnings for 1999 include the positive impact of a change in
estimate for depreciable lives of property, plant and equipment as
follows:
Building Materials $5,400 $11,100
Brown Paper 5,600 11,800
White Paper 9,200 18,300
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales $808,408 $817,443 $1,586,703 $1,593,266
Selling
& Administration 65,909 63,414 131,061 126,155
Other Income
(Expense) -- Net (304) (19) (395) 2,754
Interest Expense
-- Net 31,609 30,427 64,369 60,999
Capitalized Interest 711 6,459 1,216 12,088
Income Taxes 37,825 11,073 53,386 22,704
Tax Rate 37.4% 31.6% 36.0% 33.0%
Depreciation
& Amortization 63,443 75,244 127,048 148,844
Fee Stumpage 10,571 12,707 21,525 24,902
Deferred Taxes 26,477 748 37,377 6,564
Plant, Property
& Equipment (a) 55,023 110,254 120,764 204,024
Timber, Roads
& Reforestation 7,301 6,302 12,487 11,796
(a)Includes capitalized interest
AVG. SHARES OUTSTANDING (000'S)
Basic 111,362 111,417 111,183 111,390
Diluted 112,055 112,050 111,787 112,027
Note: Certain reclassifications have been made to prior year's data to
conform with 1999 presentation.
SOURCE Willamette Industries, Inc.
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800-758-5804, ext. 971763
CONTACT:
E. Jane Sinnema of Willamette Industries,
Inc., 503-721-8642
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