PORTLAND, Ore., July 13 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today announced net earnings of $90.2 million or $.82 per diluted share,
including charges against earnings for the closure of its Dallas, Oregon,
plywood plant and an estimate of the final cost of settlement for federal
Clean Air Act allegations involving Willamette's building material operations.
The total amount of charges was $5.1 million before taxes. Results were up
44% from second quarter 1999 net earnings of $63.3 million, or $.57 per
diluted share and up 8% from first quarter 2000 net earnings of $.76 per
diluted share.
Net earnings for the first six months of 2000 were $175.5 million, or
$1.58 per diluted share, up 86% from the first half of 1999.
Sales for the second quarter of 2000 were $1.14 billion. Year-to-date
sales were $2.25 billion, up 16% from the first six months of 1999.
The company's corrugated volumes remained strong with growth rates on
corrugated shipments higher than the industry average, according to Duane
McDougall, Willamette's chief executive officer. "Corrugated demand remains
healthy, so the outlook for this product line is positive," McDougall noted.
"Our white paper business turned in good results," McDougall said,
"although price increases that we had hoped to see have not been fully
realized in all product lines. We have a backlog of orders and stable market
conditions for our white paper products."
McDougall said that the company's building materials product lines of
lumber and panel products were under pricing pressure during the quarter due
to increased industry production and higher interest rates resulting in
decreased home construction. "I see no reason for optimism that this market
will improve soon," McDougall said.
During the second quarter the company completed its authorized share
repurchase program. In the first six months of 2000, Willamette repurchased
2.5 million shares. "At share prices noted during the quarter, the stock
repurchase program represented an excellent use of a portion of our cash
flow," McDougall noted.
Willamette Industries is an integrated forest products company with 107
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
2000 1999
Quarter Ended June 30
Basic Earnings Per Share $0.82 $0.57
Diluted Earnings Per Share $0.82 $0.57
Sales $1,135,006,000 $1,007,369,000
Earnings Before Taxes $137,698,000 $101,139,000
Net Earnings $90,192,000 $63,314,000
Average Shares Outstanding:
Basic 110,177,000 111,362,000
Diluted 110,528,000 112,055,000
Six Months Ended June 30
Basic Earnings Per Share $1.59 $0.85
Diluted Earnings Per Share $1.58 $0.85
Sales $2,249,320,000 $1,930,822,000
Earnings Before Taxes $267,933,000 $148,294,000
Net Earnings $175,496,000 $94,908,000
Average Shares Outstanding:
Basic 110,723,000 111,183,000
Diluted 111,217,000 111,787,000
WILLAMETTE INDUSTRIES, INC.
Quarterly Statistical Data
Second Quarter 2000
Quarter Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
PRODUCT SHIPMENTS
Lumber 1" - MBF 216,105 215,367 429,909 412,379
Plywood - 3/8" MSF 389,199 410,524 790,180 811,930
Oriented Strand Board
- 3/8" MSF 79,212 81,023 152,172 160,812
Domestic Particleboard
- 3/4" MSF 170,480 160,968 329,628 309,040
International Particleboard
- 3/4" MSF 39,313 -- 78,416 --
Domestic MDF
- 3/4" MSF 83,571 83,094 164,220 162,747
International MDF
- 3/4" MSF 66,201 65,349 134,102 129,268
Corrugated - MSF 6,488,725 6,272,210 13,074,310 12,505,342
Grocery Bags - Tons 26,609 29,024 53,870 54,419
Business Forms - Tons 91,268 90,141 183,477 185,562
Cut-sheets - Tons 186,667 165,724 368,638 320,161
Brown Mills - Tons 469,925 453,036 927,924 888,361
Market Pulp - Tons 47,512 29,700 84,574 55,337
White Mills - Tons 379,550 352,857 761,118 710,026
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials
Group $361,187 $388,514 $729,425 $721,321
Brown Paper 427,026 354,188 831,592 686,885
White Paper 346,793 264,667 688,303 522,616
Operating Earnings:
Building Materials Group 46,169 76,863 91,447 126,621
Brown Paper 79,654 55,479 146,910 89,153
White Paper 60,342 11,991 118,622 21,181
Corporate (12,266) (11,281) (23,626) (23,897)
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales $891,019 $808,408 $1,777,899 $1,586,703
Selling & Administration 70,088 65,909 138,068 131,061
Other Income (Expense)
- Net (5,518) (304) (6,004) (395)
Interest Expense
- Net 30,683 31,609 59,416 64,369
Capitalized Interest 515 711 2,184 1,216
Income Taxes 47,506 37,825 92,437 53,386
Tax Rate 34.5% 37.4% 34.5% 36.0%
Depreciation & Amortization 66,305 63,443 131,119 127,048
Fee Stumpage 11,365 10,571 21,184 21,525
Deferred Taxes 10,363 26,477 30,618 37,377
Plant, Property &
Equipment (A) 97,073 55,023 168,297 120,764
Timber, Roads &
Reforestation 2,982 7,301 8,995 12,487
Acquisitions 149,514 -- 149,514 --
(A) Includes capitalized interest
AVG. SHARES OUTSTANDING (000'S)
Basic 110,177 111,362 110,723 111,183
Diluted 110,528 112,055 111,217 111,787
Willamette Industries, Inc.
Consolidated Statements of Earnings
(000's omitted, except per share amounts)
Three Months Ended Six Months Ended
6/30/00 6/30/99 6/30/00 6/30/99
Net sales $1,135,006 $1,007,369 $2,249,320 $1,930,822
Cost of sales 891,019 808,408 1,777,899 1,586,703
Gross profit 243,987 198,961 471,421 344,119
Selling and administrative
expense 70,088 65,909 138,068 131,061
Operating earnings 173,899 133,052 333,353 213,058
Other expense (5,518) (304) (6,004) (395)
168,381 132,748 327,349 212,663
Interest expense 30,683 31,609 59,416 64,369
Earnings before income
taxes 137,698 101,139 267,933 148,294
Income taxes 47,506 37,825 92,437 53,386
Net earnings $90,192 $63,314 $175,496 $94,908
Basic earnings per share $0.82 $0.57 $1.59 $0.85
Diluted earnings per share $0.82 $0.57 $1.58 $0.85
Average shares outstanding
- Basic 110,177 111,362 110,723 111,183
Average shares outstanding
- Diluted 110,528 112,055 111,217 111,787
Willamette Industries, Inc.
Summary of Cash Flows
(000's omitted)
Six Months Ended
6/30/00 6/30/99
Operating Activities:
Net earnings $175,496 $94,908
Depreciation, amortization and cost of
fee timber harvested 152,303 148,573
Deferred income taxes 30,618 37,377
Change in working capital items (48,602) (75,176)
309,815 205,682
Investing Activities:
Proceeds from sale of assets 661 615
Expenditures for property purchases (168,297) (120,764)
Expenditures for timber, timberlands,
roads and reforestation (8,995) (12,487)
Acquisitions (149,514) --
Other 17,973 (34,239)
(308,172) (166,875)
Financing Activities:
Net change in operating lines of credit 97,863 26,332
Debt borrowing 110,241 27,770
Proceeds from sale of common stock 1,758 15,356
Repurchased common stock (84,071) --
Cash dividends (46,558) (37,820)
Payment on debt (82,291) (81,874)
(3,058) (50,236)
Change in cash $(1,415) $(11,429)
Notes:
(A) Earnings before income taxes for the three- and six- months ended
June 30, 2000, include charges totaling $5.1 million related to
estimates of the costs for the closure of the Dallas, Oregon, plywood
plant and the final settlement for federal Clean Air Act allegations
involving the company's building materials operations.
(B) In the second quarter of 2000, the company completed its acquisition
of Corrugados Tehuacan S.A. de C.V. This company operates a state-
of-the-art corrugated container plant, a solid fiber box plant and a
small recycled linerboard and medium mill all located in Mexico. In
addition, the company purchased a hardwood pulp mill in Port
Wentworth, Georgia.
Willamette Industries, Inc.
Consolidated Balance Sheet June 30, 2000
(000's omitted, except per share amounts)
Assets
Current Assets:
Cash $24,142
Accounts receivable - net 446,764
Inventories 452,440
Prepaid expenses 32,366
Total current assets 955,712
Other assets 99,993
Timber, timberlands and related facilities - net 1,037,819
Property, plant and equipment - net 2,920,570
$5,014,094
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable - current $114,602
Accounts payable and accrued expenses 413,874
Federal and state income taxes 7,962
Total current liabilities 536,438
Long-term debt 1,656,927
Deferred income taxes and other liabilities 570,378
Stockholders' Equity:
Common stock, $.50 par value;
authorized 150,000 shares; issued and
outstanding 109,198 shares $54,600
Capital surplus 222,521
Retained earnings 1,973,230 2,250,351
$5,014,094
SOURCE Willamette Industries, Inc.
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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:
E. Jane Sinnema of Willamette Industries,
Inc., 503-721-8642
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