PORTLAND, Ore., Oct. 9 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today reported third quarter earnings of $20.7 million, up 17% from second
quarter earnings of $17.8 million.  Per share earnings for the quarter were
$.19 (after being adjusted for a 2-for-1 stock split which occurred on
September 12) compared to $.16 (also adjusted) in the second quarter.
    Sales for the nine month period were $2.6 billion, down slightly from the
same period in 1996.
    "Current indications signal that the long awaited turn-around in paper
prices has finally occurred in both the brown and white paper lines of our
business," said Willamette's Chief Executive Officer, Steven Rogel.  On the
brown paper side, demand is up but paper inventories are high at paper mills
and low at bag and box plants due to transportation disruptions caused by rail
mergers. Price increases have been implemented in the brown paper grades but
the results won't be seen until the fourth quarter, Rogel noted.
    Prices are up from second quarter in market pulp, uncoated free sheet and
converted fine paper product lines.  Willamette's uncoated free sheet machines
are running full-out to meet internal demand, as converting volumes have been
increased in anticipation of the start-up of the company's #2 machine at
Kentucky Mills when it begins production in April of 1998.
    On the building materials side, lumber, which has been a strong performer
this year, weakened during the third quarter.  However, plywood is holding up
well and oriented strand board prices improved late in the third quarter.
During the third quarter Willamette began exporting building materials to
Europe through the sales offices of Medite of Europe, one of Willamette's 1996
acquisitions.  "This is our first venture into direct sales to Europe and
prospects look promising, helping provide new markets and a more stable demand
for plywood and MDF,"  Rogel said.
    Willamette's Kentucky Mills' expansion project is moving through various
start-up phases, both on time and on budget.
    During the quarter, expanded operations began at the Dodson, Louisiana
sawmill, the Foster, Oregon plywood plant and the Coburg, Oregon sawmill.  All
of these are in typical start-up phases and performing to expectations.
    "As for the rest of 1997, it looks like a slow and steady pull away from
the paper market's trough," Rogel said.  "We're making progress on the pricing
front, and we don't expect to see the volatility these markets experienced in
1995."
    Willamette Industries is an integrated forest products company with 97
plants in the U.S. and one in Ireland and 1.8 million acres of timberlands.
    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, INC.
                             FINANCIAL HIGHLIGHTS

                                            1997                1996

    Quarter Ended September 30:
    Share Earns (a)                    $         0.19      $         0.39
    Sales                              $  872,823,000      $  862,674,000
    Earnings Before Taxes              $   32,958,000      $   69,900,000
    Net Earnings                       $   20,697,000      $   43,129,000
    Average Shares Outstanding (a)        111,101,000         110,548,000

                                            1997                1996

    Nine Months Ended September 30:
    Share Earns (a)                    $         0.47      $         1.49
    Sales                              $2,568,228,000      $2,587,578,000
    Earnings Before Taxes              $   82,427,000      $  267,022,000
    Net Earnings                       $   51,764,000      $  164,753,000
    Average Shares Outstanding (a)        110,889,000         110,494,000

    (a) Share and per share amounts restated to reflect 2-for-1 stock split on
September 12, 1997.

    WILLAMETTE INDUSTRIES, INC.                        October 9, 1997
    Quarterly Statistical Data
    Third Quarter 1997

                                      Third Quarter           Year-to-Date
                                     1997       1996        1997        1996
    PRODUCT SHIPMENTS
      Lumber - 1"                   145,778    146,209     465,931     385,958
      Plywood - 3/8"                342,252    437,684   1,183,120   1,315,230
      Oriented Strand
       Board - 3/8"                  80,513     53,536     234,271      82,819
      Particleboard - 3/4"          147,737    141,063     446,299     408,852
      MDF - 3/4"                    115,313  *  70,831     352,362 *   195,146
      Corrugated - MSF            5,948,653  5,730,612  16,787,288  16,219,704
      Grocery Bags - Tons            30,416     30,593      87,761      91,984
      Business Forms - Tons          90,266     88,085     269,658     261,379
      Cut-sheets - Tons             126,935     97,569     363,934     297,294
      Brown Mills - Tons            435,657    417,117   1,272,399   1,208,073
      Market Pulp - Tons             36,022     36,165     100,304     100,857
      White Mills - Tons            281,783    266,653     838,178     765,875

    *  Includes Medite for 3rd quarter
        of 37,097 and year-to-date
        of 124,803.

    SEGMENT INFORMATION ($ in Thousands)
      Sales:
        Building Materials Group    $295,740  $299,868   $917,382   $798,841
        Paper Group                  577,083   562,806  1,650,846  1,788,737
      Operating Earnings:
        Building Materials Group      27,847    33,189     93,277     66,991
        Paper Group                   33,748    65,595     75,569    262,934

    SUPPLEMENTAL FINANCIAL ($ in Thousands)
      Cost of Sales                 $750,155  $707,532 $2,217,449 $2,090,505
      Selling & Administration        61,073    56,358    181,933    167,148
      Other Income - Net               1,039       539      1,829      1,712
      Interest Expense - Net          29,676    29,423     88,248     64,615
      Capitalized Interest             5,416     2,492     13,316      7,133
      Income Taxes                    12,261    26,771     30,663    102,269
      Tax Rate                         37.2%     38.3%      37.2%      38.3%
      Depreciation & Amortization     71,084    67,613    212,268    191,957
      Fee Stumpage                    15,152    14,747     40,597     31,042
      Deferred Taxes                   4,904     4,283     13,876     16,363
      Plant, Property & Equipment (a)131,742   113,682    361,990    305,012
      Timber, Roads & Reforestation    6,518     2,948     16,876     15,072
       Cavenham Acquisition               --   957,385         --    957,385

    (a) Includes capitalized interest

    AVG. SHARES OUTSTANDING (000'S)  111,101   110,548    110,889    110,494

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