PORTLAND, Ore., Oct. 10 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today reported financial results for the third quarter ended
September 30, 2001.
Net earnings for the 2001 third quarter were $65.8 million, or
$0.60 per diluted share, exceeding First Call analysts' estimates of $0.52 by
15%. These earnings include non-recurring charges of $0.03 related to the
start-up of the eastern particleboard plant and closure costs for shutting
down a press line in Bend, OR and $0.04 per share charge associated with the
defense of the unsolicited hostile takeover attempt by Weyerhaeuser. Net of
these non-recurring charges, diluted EPS would be $0.67 per share.
Net earnings for the first nine months of 2001 were $203.2, or
$1.85 per diluted share. Sales for the third quarter 2001 were $1.1 billion
and year-to-date 2001 were $3.4 billion.
Duane McDougall, President and CEO, said, "Despite a tough market
environment we believe our performance measures will again put us at or near
the top of the industry."
McDougall said brown paper earnings increased $12 million from the
second quarter as energy costs lightened and mills continued to operate
extremely well.
Willamette experienced a modest decline in corrugated sales volumes as
compared to third quarter 2000. Corrugated pricing held up relatively well
despite the economic slump. Because more than 60% of Willamette's corrugated
business is in food, beverage and consumer staples, the company may not
experience as significant an impact from the sluggish economy as might be
expected.
In white paper, McDougall said the company continued to gain market share
as combined business forms and cut sheet volume increased slightly from last
year while the industry experienced a decline. Inventories continue to remain
on the low side. Earnings were down primarily as a result of industry pricing
pressures.
As expected, third quarter 2001 results from Willamette's building
materials business declined from the second quarter due to price deterioration
in most product lines, increased log costs due to decreased harvest levels,
and startup expenses associated with the eastern particleboard plant.
"The tragic events in New York and Washington, D.C. have created a great
deal of economic uncertainty," said McDougall.
"As I look at the fourth quarter of 2001, it is too early to determine the
full impact of the events of September 11 on the economy," McDougall said.
"The fourth quarter is seasonably a slow time and this year will be even more
challenging due to the current economic downtrends. However, we believe
Willamette is well positioned for the long term. Willamette's distinguishing
characteristics, our culture, values, structure and investments lead us to
believe we will continue to outperform the industry in profitability under
most key financial metrics and deliver significant value to our shareholders."
Conference Call Information:
WHAT: Willamette Industries Earnings Conference Call
WHEN: Wednesday, October 10, 2001
11:00 a.m. Eastern time
NUMBER: 1-800-482-2239 or 1-303-267-1000
Dial in by 10:45 a.m. Eastern time
Conference name/reservation number: 1245189
WEBCAST: http://www.Streetevents.com "Company Boardroom"
REBROADCAST
DATES: October 10 at 3:30 p.m. Eastern time through October 17 at
5:00 p.m. Eastern time
REBROADCAST
NUMBER: 1-800-625-5288 or 1-303-804-1855
Reservation number 1245189
Willamette Industries is an integrated forest products company with
105 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
2001 2000
Quarter Ended September 30
Basic Earnings Per Share $0.60 $0.76
Diluted Earnings Per Share 0.60 0.76
Sales 1,124,786,000 1,169,585,000
Earnings Before Taxes 92,612,000 127,383,000
Net Earnings 65,755,000 83,436,000
Average Shares Outstanding:
Basic 109,853,000 109,203,000
Diluted 110,437,000 109,392,000
Nine Months Ended September 30
Basic Earnings Per Share $1.86 $2.35
Diluted Earnings Per Share 1.85 2.34
Sales 3,392,764,000 3,524,772,000
Earnings Before Taxes 286,149,000 395,316,000
Net Earnings 203,166,000 258,932,000
Average Shares Outstanding:
Basic 109,518,000 110,216,000
Diluted 110,114,000 110,833,000
WILLAMETTE INDUSTRIES, INC.
Quarterly Statistical Data
Third Quarter 2001
Third Quarter Year-to-Date
2001 2000 2001 2000
PRODUCT SHIPMENTS
Lumber -- 1" MBF 238,614 213,304 694,511 643,213
Plywood - 3/8" MSF 298,893 329,786 903,936 1,119,966
Oriented Strand
Board -- 3/8" MSF 89,030 79,232 244,688 231,404
Domestic
Particleboard
-- 3/4" MSF 155,025 157,928 464,465 487,556
International
Particleboard
-- 3/4" MSF 33,320 24,134 121,822 102,551
Domestic MDF
-- 3/4" MSF 85,572 79,784 251,285 244,004
International MDF
-- 3/4" MSF 61,166 55,593 189,661 189,697
Domestic
Corrugated -- MSF 6,202,927 6,445,833 18,646,809 19,222,077
International
Corrugated -- MSF 392,687 395,781 1,125,789 693,857
Grocery Bags
-- Tons 26,145 27,532 76,507 81,402
Business Forms
-- Tons 84,487 95,534 259,805 279,011
Cut-sheets -- Tons 203,313 191,161 609,285 559,799
Brown Mills -- Tons 477,048 486,133 1,390,489 1,414,057
Market Pulp -- Tons 73,887 56,093 205,079 140,667
White Mills -- Tons 364,012 368,814 1,086,905 1,129,932
SEGMENT INFORMATION
($ in Thousands)
Sales:
Building Materials
Group $338,214 $335,941 $1,000,407 $1,112,210
Brown Paper 433,924 457,231 1,317,277 1,316,177
White Paper 352,648 376,413 1,075,080 1,096,385
Operating Earnings:
Building Materials
Group 24,019 22,605 77,278 114,052
Brown Paper 88,979 104,134 244,700 251,044
White Paper 24,461 45,678 95,613 164,300
Corporate (13,058) (11,609) (39,006) (35,235)
Non-Recurring and
Other Income
(expense)
-- Net (A) (8,012) (2,296) (18,663) (8,300)
SUPPLEMENTAL FINANCIAL
($ in Thousands)
Cost of Sales 932,054 943,533 2,809,730 2,834,199
Selling &
Administrative E
Expense 68,331 65,244 204,449 196,412
Interest Expense
-- Net 23,777 31,129 73,773 90,545
Capitalized Interest 3,342 1,181 10,661 3,365
Income Taxes 26,857 43,947 82,983 136,384
Tax Rate 29.0% 34.5% 29.0% 34.5%
Depreciation &
Amortization 72,682 69,238 212,744 200,357
Cost of Fee Timber
Harvested 11,159 11,853 35,519 33,037
Deferred Taxes 14,300 30,242 47,233 60,860
Plant, Property
& Equipment 129,888 77,768 410,875 246,065
Timber, Roads
& Reforestation 6,901 5,930 14,577 14,925
Acquisitions (B) -- 16,340 -- 165,854
AVERAGE SHARES
OUTSTANDING
(in Thousands)
Basic 109,853 109,203 109,518 110,216
Diluted 110,437 109,392 110,114 110,833
NOTES:
(A) Non-recurring items include:
3rd Quarter 2001-- Charge for hostile takeover defense costs of
$6.0 million
-- Charge for partial closure costs of
$2.0 million at our particleboard plant in
Bend, OR
2nd Quarter 2001 -- Charge for hostile takeover defense costs of
$6.2 million
-- Charge for equipment abandonments of
$2.9 million as a result of the Dodson, LA,
sawmill modernization
-- Adjustment of $0.03 per diluted share due to a
change in tax rate from 32.0% to 29.0%
1st Quarter 2001 -- Gain on sale of non-strategic timberlands of
$5.3 million
-- Charge for hostile takeover defense costs of
$6.0 million
2nd Quarter 2000 -- Charge for facility closure and alleged Clean
Air Act violation settlement of $5.1 million
(B) In the second quarter of 2000, the company completed its acquisition
of four facilities in Mexico and a bleached pulp mill in Georgia
Willamette Industries, Inc.
Consolidated Balance Sheets
(000s omitted, except per share amounts)
9/30/01 12/31/00
Assets
Current Assets:
Cash $26,253 $24,284
Accounts receivable -- net 445,690 459,591
Inventories 472,444 473,788
Prepaid expenses 25,961 35,154
Total current assets 970,348 992,817
Other assets 90,547 92,975
Timber, timberlands and related
facilities -- net 974,205 1,014,285
Property, plant and equipment -- net 3,220,961 3,017,593
$5,256,061 $5,117,670
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable -- current $123,683 $127,499
Accounts payable and accrued expenses 422,731 450,040
Federal and state income taxes 22,042 19,184
Total current liabilities 568,456 596,723
Long-term debt 1,532,706 1,542,926
Deferred income taxes and other liabilities 631,064 596,978
Stockholders' Equity:
Common stock, $.50 par value; authorized
150,000 shares; issued and outstanding
109,873 and 109,417 shares 54,936 54,709
Capital surplus 244,692 229,598
Retained earnings 2,224,207 2,096,736
Total stockholders' equity 2,523,835 2,381,043
$5,256,061 $5,117,670
Consolidated Statements of Earnings
(000s omitted, except per share amounts)
Three Months Ended Nine Months Ended
9/30/01 9/30/00 9/30/01 9/30/00
Net sales $1,124,786 $1,169,585 $3,392,764 $3,524,772
Cost of sales 932,054 943,533 2,809,730 2,834,199
Gross profit 192,732 226,052 583,034 690,573
Selling and
administrative
expense 68,331 65,244 204,449 196,412
Non-recurring and
other income
(expense) -- net (8,012) (2,296) (18,663) (8,300)
Operating earnings 116,389 158,512 359,922 485,861
Interest expense 23,777 31,129 73,773 90,545
Earnings before
income taxes 92,612 127,383 286,149 395,316
Income taxes 26,857 43,947 82,983 136,384
Net earnings $65,755 $83,436 $203,166 $258,932
Basic earnings
per share $0.60 $0.76 $1.86 $2.35
Diluted earnings
per share $0.60 $0.76 $1.85 $2.34
Average shares
outstanding
-- basic 109,853 109,203 109,518 110,216
Average shares
outstanding
-- diluted 110,437 109,392 110,114 110,833
Willamette Industries, Inc.
Summary of Cash Flows
(000s omitted)
Nine Months Ended
9/30/01 9/30/00
Operating Activities:
Net earnings $203,166 $258,932
Depreciation, amortization and
cost of fee timber harvested 248,263 233,394
Deferred income taxes 47,233 60,860
Change in working capital items (6,921) (43,376)
491,741 509,810
Investing Activities:
Proceeds from sale of assets 18,363 1,550
Expenditures for property purchases (410,875) (246,065)
Expenditures for timber, timberlands,
roads, and reforestation (14,577) (14,925)
Acquisitions -- (165,854)
Other (8,265) 16,981
(415,354) (408,313)
Financing Activities:
Net change in operating lines of credit (4,000) 15,870
Debt borrowing 7,430 110,241
Proceeds from sale of common stock 15,313 1,906
Repurchased common stock -- (84,071)
Cash dividends (75,695) (69,490)
Payment on debt (17,466) (85,160)
(74,418) (110,704)
Change in cash $1,969 $(9,207)
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
(000s Omitted)
1995 1996 1997 1998
Non-Cash Charges:
Depreciation
& Amortization $224,104 259,556 286,300 316,765
Cost of Fee Timber
Harvested $25,061 43,381 52,649 54,376
Subtotal $249,165 302,937 338,949 371,141
Deferred Taxes $98,425 40,717 28,650 7,683
Total $347,590 343,654 367,599 378,824
Capital Expenditures:
Timber, Roads
& Reforest. $41,538 31,025 21,560 24,067
Plant, Property
& Equip. (A) $411,985 454,744 506,348 417,772
Acquisitions $-- 1,019,274 -- --
Capitalized Interest $6,187 10,534 19,939 13,589
Interest Expense $71,050 92,804 116,990 131,990
Tax Rate 37.5% 37.2% 34.4% 33.0%
(A) Includes capitalized interest
WILLAMETTE INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION
(000s Omitted)
1999 2000 2001
Estimate
Non-Cash Charges:
Depreciation
& Amortization $257,522 270,225 286,000
Cost of Fee Timber
Harvested $46,197 44,774 47,000
Subtotal $303,719 314,999 333,000
Deferred Taxes $86,938 70,011 65,000
Total $390,657 385,010 398,000
Capital Expenditures:
Timber, Roads & Reforest. $22,390 19,221 18,000
Plant, Property
& Equip. (A) $267,856 379,667 550,000
Acquisitions $-- 169,334 --
Capitalized Interest $3,998 5,163 14,800
Interest Expense $125,284 119,133 97,000
Tax Rate 37.0% 33.0% 29.0%
(A) Includes capitalized interest
WILLAMETTE INDUSTRIES, INC.
PRODUCTION SUMMARY
1996 1997 1998
BUILDING MATERIALS GROUP
Western Plywood -- 3/8" msf 352,000 291,000 362,000
Southern Plywood -- 3/8" msf 1,083,000 936,000 731,000
Atlantic Plywood -- 3/8" msf 304,000 310,000 325,000
Total 1,739,000 1,537,000 1,418,000
Oriented Strand Board
-- 3/8" msf 143,000 310,000 299,000
Western Lumber -- 1" mbf 421,000 484,000 580,000
Southern Lumber -- 1" mbf 117,000 140,000 175,000
Atlantic Lumber -- 1" mbf -- -- --
Total 538,000 624,000 755,000
Particleboard -- 3/4" msf 546,000 593,000 616,000
MDF -- 3/4" msf 284,000 466,000(B) 540,000(B)
Lam Beams -- 1" mbf 99,000 93,000 75,000
Structural I-Beams
-- M. Lin. Ft. 24,000 36,000 45,000
LVL -- ccf 16,000 27,000 34,000
PAPER GROUP
Brown Paper -- Tons 1,629,000 1,730,000 1,792,000
White Paper - Tons 1,040,000 1,117,000 1,274,000
Hardwood Market Pulp -- Tons 134,000 134,000 125,000
Corrugated Containers
-- msf 21,528,000 22,976,000 24,491,000(D)
Grocery Bags -- Tons 118,000 113,000 105,000
Business Forms -- Tons 326,000 345,000 316,000
Cut-Sheets -- Tons 423,000 500,000 586,000
(A)Includes International -- 69,000 msf 1999,141,000 msf 2000 and
175,000 msf 2001.
(B)Includes International -- 161,000 msf 1997, 227,000 msf 1998,
251,000 msf 1999, 256,000 msf 2000 and 257,000 msf 2001.
(C)Includes International -- 14,000 tons 2000 and 24,000 tons 2001.
(D)Includes International -- 357,000 msf 1998, 350,000 msf 1999,
1,204,000 msf 2000 and 1,513,000 msf 2001.
WILLAMETTE INDUSTRIES, INC.
PRODUCTION SUMMARY
Projected
1999 2000 2001
BUILDING MATERIALS GROUP
Western Plywood -- 3/8" msf 405,000 335,000 255,000
Southern Plywood - 3/8" msf 824,000 792,000 615,000
Atlantic Plywood - 3/8" msf 351,000 305,000 330,000
Total 1,580,000 1,432,000 1,200,000
Oriented Strand Board
-- 3/8" msf 321,000 296,000 330,000
Western Lumber -- 1" mbf 640,000 659,000 700,000
Southern Lumber -- 1" mbf 180,000 188,000 170,000
Atlantic Lumber -- 1" mbf -- 16,000 40,000
Total 820,000 863,000 910,000
Particleboard -- 3/4" msf 689,000(A) 771,000(A) 804,000(A)
MDF -- 3/4" msf 573,000(B) 577,000(B) 593,000(B)
Lam Beams -- 1" mbf 83,000 84,000 87,000
Structural I-Beams
-- M. Lin. Ft. 55,000 68,000 62,000
LVL -- ccf 46,000 52,000 52,000
PAPER GROUP
Brown Paper -- Tons 1,839,000 1,888,000(C) 1,875,000(C)
White Paper -- Tons 1,456,000 1,483,000 1,458,000
Hardwood Market Pulp
-- Tons 137,000 203,000 269,000
Corrugated Containers
-- msf 25,709,000(D) 26,925,000(D)
26,300,000(D)
Grocery Bags -- Tons 111,000 104,000 102,000
Business Forms -- Tons 334,000 307,000 292,000
Cut-Sheets -- Tons 697,000 799,000 891,000
(A)Includes International -- 69,000 msf 1999,141,000 msf 2000 and
175,000 msf 2001.
(B)Includes International -- 161,000 msf 1997, 227,000 msf 1998,
251,000 msf 1999, 256,000 msf 2000 and 257,000 msf 2001.
(C)Includes International -- 14,000 tons 2000 and 24,000 tons 2001.
(D)Includes International -- 357,000 msf 1998, 350,000 msf 1999,
1,204,000 msf 2000 and 1,513,000 msf 2001.
SOURCE Willamette Industries
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Related links:
http://www.wii.com
Company News On-Call:
http://www.prnewswire.com/comp/971763.html
CONTACT:
Greg Hawley, EVP & CFO, +1-503-227-5581, or
Cathy Dunn, VP Communications, +1-503-273-5642, both of
Willamette Industries; or Paul Verbinnen, or David Reno, or Jim
Barron, all of Citigate Sard Verbinnen, +1-212-687-8080, for
Willamette Industries
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