PORTLAND, Ore., Oct. 10 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) today reported third quarter earnings of $83.4 million, or
$.76 per diluted share, up from the $.73 per diluted share earned in third
quarter 1999 (after a $.09 per share charge for estimated penalties related to
the federal Clean Air Act).
Earnings for the first nine months of 2000 were $258.9 million, or
$2.34 per diluted share, up 48% from the $1.58 earned during the same period
in 1999.
Sales for the third quarter were $1.1 billion. Year-to-date sales in
2000 were $3.4 billion, up 12% from sales during the first nine months of
1999.
Willamette's brown paper business continued strong during the quarter.
While domestic volumes were down slightly due to fewer operating days, margins
were much improved as compared to third quarter 1999, according to
Duane McDougall, president and chief executive officer. "Operating earnings
for our brown paper facilities were up significantly compared to both the
third quarter 1999 and second quarter 2000 due to healthy demand and lower
costs for OCC, or recycled brown paper," McDougall said.
The company's white paper business improved compared to third quarter
1999 due to improved pricing and increased volume. "While pricing for
uncoated free sheet weakened slightly from the second quarter of 2000, an
announced October price increase should improve the outlook for this product
line," McDougall noted. The company's white paper operations were negatively
impacted due to downtime experienced because of construction activities at the
Johnsonburg, Pennsylvania, paper mill and the start-up of the Port Wentworth,
Georgia, market pulp mill. "Both projects are progressing through the normal
start-up curve and we're producing excellent quality pulp at Port Wentworth,"
according to McDougall.
The outlook for the company in the fourth quarter is cautiously
optimistic, according to McDougall. "On the brown paper side of the business,
we see some signs of slowing due to the slowdown of the general economy,
however, operating earnings of this business segment remain strong."
"The announced price increase for uncoated free sheet bodes well for this
product line during the fourth quarter. Market pulp conditions are more
uncertain now after nearly eighteen months of improved pricing. However, with
improved production at Johnsonburg and a full quarter of production at
Port Wentworth, we should be in an excellent position to capitalize on our
operating efficiencies.
"Building materials markets are still in the doldrums and some additional
downtime is expected during the fourth quarter to match supply with orders,"
McDougall said.
Willamette Industries is an integrated forest products company with
106 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 September 30:
Basic Earnings Per Share $0.76 $0.74
Diluted Earnings Per Share $0.76 $0.73
Sales $1,116,937,000 $1,087,899,000
Earnings Before Taxes $127,383,000 $134,692,000
Net Earnings $83,436,000 $81,958,000
Average Shares Outstanding:
Basic 109,203,000 111,552,000
Diluted 109,392,000 112,218,000
Nine Months Ended September 30:
Basic Earnings Per Share $2.35 $1.59
Diluted Earnings Per Share $2.34 $1.58
Sales $3,366,257,000 $3,018,721,000
Earnings Before Taxes $395,316,000 $282,986,000
Net Earnings $258,932,000 $176,866,000
Average Shares Outstanding:
Basic 110,216,000 111,307,000
Diluted 110,833,000 111,938,000
October 10, 2000
WILLAMETTE INDUSTRIES, INC. October 10, 2000
Quarterly Statistical Data
Third Quarter 2000
Third Quarter Year-to-Date
2000 1999 2000 1999
PRODUCT SHIPMENTS
Lumber 1" - MBF 213,304 208,746 643,213 621,125
Plywood - 3/8" MSF 329,786 394,492 1,119,966 1,206,422
Oriented Strand
Board - 3/8" MSF 79,232 80,826 231,404 241,638
Domestic
Particleboard
- 3/4" MSF 157,928 161,882 487,556 470,922
International
Particleboard
- 3/4" MSF 24,134 29,667 102,551 29,667
Domestic MDF
- 3/4" MSF 79,784 80,892 244,004 243,639
International
MDF - 3/4" MSF 55,593 57,708 189,697 186,976
Domestic
Corrugated
- MSF 6,445,833 6,580,518 19,222,077 18,920,905
International
Corrugated - MSF 395,781 88,436 693,857 253,391
Grocery Bags - Tons 27,532 29,579 81,402 83,998
Business Forms - Tons 95,534 90,908 279,011 276,470
Cut-sheets - Tons 191,161 167,668 559,799 487,829
Brown Mills - Tons 486,133 477,505 1,414,057 1,365,866
Market Pulp - Tons 56,093 42,919 140,667 98,256
White Mills - Tons 368,814 364,292 1,129,932 1,074,317
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building
Materials
Group $314,925 $399,201 $1,044,350 $1,120,522
Brown Paper 442,241 393,924 1,273,833 1,080,809
White Paper 359,771 294,774 1,048,074 817,390
Operating Earnings:
Building
Materials
Group 22,605 88,499 114,052 215,120
Brown Paper 104,134 62,804 251,044 151,957
White Paper 45,678 36,877 164,300 58,058
Corporate (11,609) (12,629) (35,235) (36,526)
SUPPLEMENTAL FINANCIAL
($ in Thousands)
Cost of Sales 887,590 844,980 2,665,489 2,431,683
Selling &
Administration 68,539 67,368 206,607 198,429
Other Income
(Expense) - Net (2,296) (9,791) (8,300) (10,186)
Interest
Expense - Net 31,129 31,068 90,545 95,437
Capitalized
Interest 1,181 1,074 3,365 2,290
Income Taxes 43,947 52,734 136,384 106,120
Tax Rate 34.5% 39.2% 34.5% 37.5%
Depreciation &
Amortization 69,238 65,428 200,357 192,476
Cost of Fee
Timber Harvested 11,853 14,007 33,037 35,532
Deferred Taxes 30,242 22,917 60,860 60,294
Plant, Property
& Equipment (A) 77,768 60,570 246,065 181,334
Timber, Roads &
Reforestation 5,930 5,830 14,925 18,317
Acquisitions 16,340 0 165,854 0
(A)Includes capitalized interest
AVG. SHARES OUTSTANDING
(000'S)
Basic 109,203 111,552 110,216 111,307
Diluted 102,392 112,218 110,833 111,938
Willamette Industries, Inc.
Consolidated Balance Sheets
(000's omitted, except per share amounts)
9/30/00 12/31/99
Assets
Current Assets:
Cash $16,350 $25,557
Accounts receivable - net 472,417 382,763
Inventories 441,700 445,110
Prepaid expenses 27,102 36,160
Total current assets 957,569 889,590
Other assets 100,614 99,532
Timber, timberlands and
related facilities - net 1,027,320 1,057,529
Property, plant and
equipment - net 2,949,643 2,751,210
$5,035,146 $4,797,861
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable - current $32,540 $16,873
Accounts payable and
accrued expenses 428,545 393,046
Federal and state income taxes 8,166 22,200
Total current liabilities 469,251 432,119
Long-term debt 1,654,127 1,628,843
Deferred income taxes and
other liabilities 600,759 533,187
Stockholders' Equity:
Common stock, $.50 par value;
authorized 150,000 shares;
issued and outstanding
109,206 and 111,587 shares $54,603 $55,794
Capital surplus 222,672 303,626
Retained earnings 2,033,734 1,844,292
Total stockholders' equity 2,311,009 2,203,712
$5,035,146 $4,797,861
Willamette Industries, Inc.
Consolidated Statements of Earnings
(000's omitted, except per share amounts)
Three Months Ended Nine Months Ended
9/30/00 9/30/99 9/30/00 9/30/99
Net sales $1,116,937 $1,087,899 $3,366,257 $3,018,721
Cost of sales 887,590 844,980 2,665,489 2,431,683
Gross profit 229,347 242,919 700,768 587,038
Selling and
administrative
expense 68,539 67,368 206,607 198,429
Operating earnings 160,808 175,551 494,161 388,609
Other expense (2,296) (9,791) (8,300) (10,186)
158,512 165,760 485,861 378,423
Interest expense 31,129 31,068 90,545 95,437
Earnings before
income taxes 127,383 134,692 395,316 282,986
Income taxes 43,947 52,734 136,384 106,120
Net earnings $83,436 $81,958 $258,932 $176,866
Basic earnings
per share $0.76 $0.74 $2.35 $1.59
Diluted earnings
per share $0.76 $0.73 $2.34 $1.58
Average shares
outstanding
- Basic 109,203 111,552 110,216 111,307
Average shares
outstanding
- Diluted 109,392 112,218 110,833 111,938
Willamette Industries, Inc.
Summary of Cash Flows
(000's omitted)
Nine Months Ended
9/30/00 9/30/99
Operating Activities:
Net earnings $258,932 $176,866
Depreciation, amortization and
cost of fee timber harvested 233,394 228,008
Deferred income taxes 60,860 60,294
Change in working capital items (43,376) (57,225)
509,810 407,943
Investing Activities:
Proceeds from sale of assets 1,550 4,869
Expenditures for
property purchases (246,065) (181,334)
Expenditures for timber,
timberlands, roads and
reforestation (14,925) (18,317)
Acquisitions (165,854) --
Other 16,981 (33,124)
(408,313) (227,906)
Financing Activities:
Net change in operating
lines of credit 15,870 (6,156)
Debt borrowing 110,241 27,770
Proceeds from sale of common stock 1,906 17,913
Repurchased common stock (84,071) --
Cash dividends (69,490) (57,900)
Payment on debt (85,160) (172,874)
(110,704) (191,247)
Change in cash $(9,207) $(11,210)
Notes:
(A) Earnings before income taxes for the nine-month period ended
September 30, 2000, include charges totaling $5.1 million related to estimated
costs for the closure of the Dallas, Oregon, plywood plant and anticipated
settlement costs for alleged violations of the federal Clean Air Act and
related state regulations 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 medium mill,
all located in Mexico. Also in the second quarter of 2000, the company
purchased a hardwood pulp mill in Port Wentworth, Georgia.
(C) Net earnings for the three- and nine-months ended September 30, 1999,
included a $10 million, or $.09 per share, charge related to an estimate of
expected, non-tax-deductible environmental penalties resulting from a federal
Clean Air Act assessment of Willamette's building materials operations.
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
(000s Omitted)
1995 1996 1997
Non-Cash Charges:
Depreciation & Amort. $224,104 259,556 286,300
Stumpage $25,061 43,381 52,649
Subtotal $249,165 302,937 338,949
Deferred Taxes $98,425 40,717 28,650
Total $347,590 343,654 367,599
Per Share $3.15 3.11 3.31
Based on Average Shares of: 110,292 110,536 110,975
Capital Expenditures:
Timber, Roads & Reforest. $41,538 31,025 21,560
Plant, Property & Equip. (A) $411,985 454,744 506,348
Acquisitions $-- 1,019,274 --
Capitalized Interest $6,187 10,534 19,939
Interest Expense $71,050 92,804 116,990
Tax Rate 37.5% 37.2% 34.4%
(A) Includes capitalized interest
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
(000s Omitted)
1998 1999 2000
Non-Cash Charges: Estimate
Depreciation & Amort. $316,765 257,522 270,000
Stumpage $54,376 46,197 48,000
Subtotal $371,141 303,719 318,000
Deferred Taxes $7,683 86,938 95,000
Total $378,824 390,657 413,000
Per Share $3.40 3.51 3.76
Based on Average Shares of: 111,302 111,375 109,960
Capital Expenditures:
Timber, Roads & Reforest. $24,067 22,390 20,0
Plant, Property & Equip. (A) $417,772 267,856 400,000
Acquisitions $-- -- 169,000
Capitalized Interest $13,589 3,998 5,000
Interest Expense $131,990 125,284 115,000
Tax Rate 33.0% 37.0% 34.5%
(A) Includes capitalized interest
SOURCE Willamette Industries, Inc.
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CONTACT:
G. W. Hawley of Willamette Industries, Inc.,
503-227-5581
NOTE TO EDITORS: A full copy of this release and other company
news is available at http://www.wii.com or by fax at 800-758-5804 - code
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