PORTLAND, Ore., Sept. 3 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
has announced its intention to sell certain non-core timberland properties
located in the Pacific Northwest. These properties were acquired by Willamette
in 1996 as part of the Cavenham acquisition. Duane McDougall, president and
chief operating officer, says, "it has become clear that these lands are not
critical to our Northwest operations and that the Proceeds can be put to
better use."
The lands identified for sale are located in southwestern Washington state
and cover an area of approximately 117,000 acres, McDougall identified these
lands as "highly productive properties which should be well-suited to any
number of buyers."
Proceeds from the sale of these properties will be used to strengthen the
company's balance shed. According to company officials, debt levels have
remained high since the Cavenham timberland acquisition in 1996. Jerry
Parsons, chief financial officer, believes that "this action will enable
Willamette to reduce outstanding debt to more comfortable levels in a move to
strengthen its balance sheet, as well as give the company greater flexibility
in pursuing new opportunities."
Willamette has entered into an agreement with Warburg Dillon Read to
handle the sale of the property,
In an additional action, the board of directors authorized a resumption of
Willamette's previously approved share repurchase program. The program,
authorized in 1995, has been inactive because of high debt levels. The board
has approved the repurchase of approximately $25 million of Willamette's
shares of common stock. This action is intended to offset some of the dilution
that has occurred in recent years due to stock option exercises.
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 is an integrated forest products company with more
than 100 manufacturing facilities and 1.84 million acres of timberland.
SOURCE Willamette Industries, Inc.
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Related links:
http://www.wii.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 971763
CONTACT:
J. A. Parsons of Willamette Industries,
503-227-5581
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