PORTLAND, Ore., Jan. 20 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) reported fourth quarter earnings of $21,199,000 or $.19 per share,
including a $.03 per share gain related to an adjustment for income tax
expense. This compares to $.25 per share earnings in the fourth quarter of
1996, which included a tax gain of $.03 per share.
Willamette's fourth quarter earnings brought the unaudited net annual
earnings for 1997 to $72,963,000 or $.66 per share. Sales for
1997 were $3,438,664,000.
Much improvement was seen in the paper side of Willamette's business,
according to William Swindells, chief executive officer. "Pricing in
all our paper product lines made healthy improvements during the fourth
quarter compared to third quarter 1997," Swindells said. "However, unit
shipments were down from third to fourth quarter in all lines. Nonetheless,
Paper Group quarterly results were 11% above those of the third quarter."
The building materials side of the company's business showed some stress
from Asian economic difficulties, according to Swindells. "Asian economic
troubles contributed to lower prices in lumber and most engineered wood
products from third to fourth quarter 1997. Log export pricing deteriorated
throughout the year until stabilizing late in the fourth quarter." Plywood
and domestic medium density fiberboard pricing held steady compared to third
quarter and oriented strand board showed healthy gains. Particleboard pricing
continued to slump.
Rail car shortages and delivery delays continue to affect product
shipments in the West, but most inventories have returned to normal.
Swindells noted that the company's major capital projects, a new fine
paper machine in Hawesville, Kentucky, and a new cut sheet plant in
Brownsville, Tennessee, are scheduled to open on time in April and February,
1998, respectively.
"Price trends in the paper side of our business continue to give us
optimism that 1998 will show further improvement," Swindells noted.
Willamette Industries is an integrated forest products company with
100 manufacturing facilities worldwide and 1.8 million acres of
timberland.
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. Refer to Willamette Industries' Securities and Exchange Commission
filings for further information.
WILLAMETTE INDUSTRIES, INC. - FINANCIAL HIGHLIGHTS
Quarter Ended December 31: 1997 1996
Share Earns (a) $ 0.19 (b) $ 0.25 (b)
Sales $ 870,436,000 $ 837,595,000
Earnings Before Taxes $ 28,836,000 $ 39,064,000
Net Earnings $ 21,199,000 $ 27,333,000
Average Shares
Outstanding (a) 111,228,000 110,662,000
Twelve Months Ended December 31: 1997 1996
Share Earns (a) $ 0.66 $ 1.74
Sales $3,438,664,000 $3,425,173,000
Earnings Before Taxes $ 111,263,000 $ 306,086,000
Net Earnings $ 72,963,000 $ 192,086,000
Average Shares
Outstanding (a) 110,975,000 110,536,000
(a) Share and per share amounts restated to reflect 2-for-1 stock split
on September 12, 1997
(b) Includes a $.03 per share gain related to an adjustment of income tax
expense in 1997 and 1996
WILLAMETTE INDUSTRIES, INC. January 20, 1998
Quarterly Statistical Data
Fourth Quarter 1997
Fourth Quarter Year-to-Date
1997 1996 1997 1996
PRODUCT SHIPMENTS
Lumber - 1" 158,344 152,262 624,275 538,220
Plywood - 3/8" 353,980 422,857 1,537,100 1,738,087
Oriented Strand
Board - 3/8" 75,406 60,160 309,677 142,979
Particleboard - 3/4" 147,129 137,270 593,428 546,122
MDF - 3/4" 113,949* 89,155 ** 466,313* 284,301 **
Corrugated - MSF 5,771,700 5,305,101 22,558,988 21,524,805
Grocery Bags - Tons 29,281 30,670 117,042 122,654
Business Forms - Tons 86,420 89,872 356,078 351,251
Cut-sheets - Tons 117,349 102,660 481,283 399,954
Brown Mills - Tons 457,404 425,512 1,729,803 1,633,585
Market Pulp - Tons 33,335 33,441 133,639 134,298
White Mills - Tons 279,646 272,873 1,117,824 1,038,748
* Includes Medite for 4th quarter of 36,334 and year-to-date of 161,139
** Includes 19,670 Medite
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building Materials
Group $282,598 $282,420 $1,199,980 $1,081,261
Paper Group 587,838 555,175 2,238,684 2,343,912
Operating Earnings:
Building Materials
Group 19,969 21,575 113,246 88,566
Paper Group 37,350 43,529 112,919 306,463
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 749,731 707,777 2,967,180 2,798,282
Selling &
Administration 63,386 64,714 245,319 231,862
Other Income - Net 259 2,149 2,088 3,861
Interest Expense - Net 28,742 28,189 116,990 92,804
Capitalized Interest 6,622 3,401 19,939 10,534
Income Taxes 7,637 11,731 38,300 114,000
Tax Rate 26.5% 30.0% 34.4% 37.2%
Depreciation &
Amortization 74,032 67,599 286,300 259,556
Fee Stumpage 12,052 12,339 52,649 43,381
Deferred Taxes 14,774 24,354 28,650 40,717
Plant, Property
& Equipment (a) 144,358 149,732 506,348 454,744
Timber, Roads &
Reforestation 4,684 15,953 21,560 31,025
Acquisitions -- 61,889 -- 1,019,274
AVG. SHARES
OUTSTANDING (000'S) 111,228 110,662 110,975 110,536
(a) Includes capitalized interest
NOTE: Full copy of this is available on Willamette Industries' website @
http://www.wii.com
SOURCE Willamette Industries
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