PORTLAND, Ore., Oct. 12 /PRNewswire/ -- Willamette Industries, Inc.
(NYSE: WLL) today reported third quarter earnings of $82 million, or $.73 per
diluted share, up 128% from third quarter 1998's $36 million or $.32 per
share. Third quarter 1999 earnings include a charge of $10 million, or
$.09 per share, 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.
Earnings for the first nine months of 1999 were $177 million or $1.58 per
diluted share, up 116% from the $82 million or $.73 per share in the same
period in 1998.
Sales for the third quarter were $1.1 billion. Year-to-date sales in 1999
were $3.0 billion, up 8% from the first three quarters of 1998.
Additionally, earnings include a previously-announced change in accounting
for estimates relating to depreciation amounting to $.11 for the third quarter
of 1999 and $.35 for the year thus far.
Both Willamette's Paper Group and Building Materials Group had a good
third quarter, according to Willamette's Chief Executive Officer
Duane McDougall. "The Paper Group's operating earnings were up 53% from third
quarter 1998, with both the brown and white paper segments of the business
participating in the improvement," McDougall said. "Building Materials Group
operating earnings were up 159% compared to last year's third quarter. The
building materials markets enjoyed high pricing levels for two months before
flattening out late in August. The markets now appear to have stabilized."
Volumes for most of Willamette's products were up in the third quarter of
1999 when compared to the same period in 1998. "The volume increases result
from the benefits of capital programs that have increased efficiency and
enhanced employee productivity," McDougall said.
As for the fourth quarter, McDougall expects the rising trend in paper
markets to continue and the usual fourth quarter slow-down in building
materials pricing.
Willamette Industries is an integrated forest products company with
101 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 papers,
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
1999 1998
Quarter Ended September 30:
Basic Earnings Per Share $ 0.74 $ 0.32
Diluted Earnings Per Share $ 0.73 $ 0.32
Sales $ 1,087,899,000 $ 956,794,000
Earnings Before Taxes $ 134,692,000 $ 53,335,000
Net Earnings $ 81,958,000 (a) $ 35,735,000
Average Shares
Outstanding - Diluted 112,218,000 111,696,000
Nine Months Ended September 30:
Basic Earnings Per Share $ 1.59 $ 0.73
Diluted Earnings Per Share $ 1.58 $ 0.73
Sales $ 3,018,721,000 $ 2,803,259,000
Earnings Before Taxes $ 282,986,000 $ 122,134,000
Net Earnings $ 176,866,000 (a) $ 81,830,000
Average Shares
Outstanding - Diluted 111,938,000 111,877,000
(a) Includes a $10.0 million, or $.09 per share, charge related to an
estimate of expected, non-tax-deductible environmental penalties resulting
from a Clean Air Act assessment of Willamette's building materials operations.
WILLAMETTE INDUSTRIES, INC. October 12, 1999
Quarterly Statistical Data
Third Quarter 1999
Third Quarter Year-to-Date
1999 1998 1999 1998
PRODUCT SHIPMENTS
Lumber - 1" 208,746 197,024 621,125 569,482
Plywood - 3/8" 394,492 335,844 1,206,422 1,035,333
Oriented Strand
Board - 3/8" 80,826 81,566 241,638 228,449
Particleboard - 3/4" 191,549* 158,124 500,589* 466,086
MDF - 3/4" 138,600 136,198 430,615 410,730
Corrugated - MSF 6,668,954 6,282,503 19,174,296 18,347,107
Grocery Bags - Tons 29,579 28,085 83,998 80,060
Business Forms - Tons 90,908 84,598 276,470 248,311
Cut-sheets - Tons 167,668 142,830 487,829 398,076
Brown Mills - Tons 477,505 447,539 1,365,866 1,334,122
Market Pulp - Tons 42,919 28,504 98,256 94,160
White Mills - Tons 364,292 361,714 1,074,317 922,642
* Quarter and year-to-date include 29,667 for international particleboard
in 1999
SEGMENT INFORMATION ($ in Thousands)
Sales:
Building
Materials Group $399,201 $328,374 $1,120,522 $943,142
Brown Paper 393,924 350,162 1,080,809 1,045,026
White Paper 294,774 277,992 817,390 815,091
Operating Earnings:**
Building
Materials Group 88,499 34,216 215,120 65,002
Brown Paper 62,804 43,500 151,957 127,834
White Paper 36,877 21,748 58,058 55,455
Corporate (12,629) (10,927) (36,526) (32,710)
** Operating earnings for 1999 include the positive impact of change in
estimate for depreciable lives of property, plant and equipment as
follows
Building Materials 5,500 -- 16,600 --
Brown Paper 5,900 -- 17,700 --
White Paper 9,200 -- 27,500 --
SUPPLEMENTAL FINANCIAL ($ in Thousands)
Cost of Sales 844,980 805,486 2,431,683 2,398,752
Selling &
Administration 67,368 62,771 198,429 188,926
Other Income
Expense - Net (9,791)*** 1,751 (10,186)*** 4,505
Interest Expense
- Net 31,068 36,953 95,437 97,952
Capitalized Interest 1,074 425 2,290 12,513
Income Taxes 52,734 17,600 106,120 40,304
Tax Rate 39.2% 33.0% 37.5% 33.0%
Depreciation &
Amortization 65,428 83,025 192,476 231,869
Fee Stumpage 14,007 17,545 35,532 42,447
Deferred Taxes 22,917 8,782 60,294 15,346
Plant, Property &
Equipment (a) 60,570 99,711 181,334 303,735
Timber, Roads &
Reforestation 5,830 3,158 18,317 14,954
*** Includes a $10.0 million, or $.09 per share, charge related to an
estimate of expected, non-tax-deductible environmental penalties
resulting from a Clean Air Act assessment of Willamette's building
materials operations.
(a) Includes capitalized interest
AVG. SHARES OUTSTANDING (000'S)
Basic 111,552 111,399 111,307 111,393
Diluted 112,218 111,696 111,938 111,877
Note: Certain reclassifications have been made to prior year's data to
conform with 1999 presentation.
SOURCE Willamette Industries, Inc.
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CONTACT:
E. Jane Sinnema of Willamette Industries,
503-721-8642
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