PORTLAND, Ore., July 14 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
reported second quarter earnings of $17.8 million, or $.32 per share, up 33%
from first quarter 1997%s earnings of $.24 per share.  Earnings for the first
half were $.56 per share, down from 1996%s $2.20 per share.
    Sales for the six-month period were $1.7 billion, down slightly from the
first half of 1996.
    Willamette's Building Materials Group contributed 71% of the quarterly
operating earnings, compared to 25% in the second quarter of 1996, according
to Steven R. Rogel, chief executive officer.  "Our three business segments,
pulp and white paper products, brown paper products, and building materials,
tend to be offset somewhat on the business cycle," Rogel said.  "That's
benefited us tremendously during this trough in paper markets and underscores
the importance of our long-term strategy of continuing to invest in all
segments of our business."
    Lumber was a strong performer during the quarter with both volume and
prices up nicely from the previous quarter and second quarter 1996.  Expanded
international markets resulting from Willamette's 1996 acquisitions of Medite
of Europe and portions of Cavenham Forest Industries also made a significant
contribution to Building Materials Group earnings during the quarter.
    Willamette took a pretax charge of $2.3 million against earnings during
the second quarter to account for the permanent closure of its Taylor,
Louisiana plywood plant, scheduled to take place on July 24, 1997.  However,
this charge was offset by income from the sale of assets and other
nonrecurring items.
    Prices for Willamette's converted uncoated free sheet and unbleached paper
products were down from the first quarter of 1997.  On a positive note,
inventories for both grades were down from the first quarter, and even with
inventories of a year ago.  Price increases were implemented at the end of the
second quarter for both continuous computer forms and cut sheets (copy paper).
While implemented too late to have much effect on second quarter earnings,
these price increases should boost Paper Group earnings in the third quarter,
according to Rogel.  Production volumes for cut sheets for the first six
months were up substantially compared to the same period a year earlier.
    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.  Refer to Willamette Industries' Securities and Exchange Commission
filings for further information.

                         WILLAMETTE INDUSTRIES, INC.
                             FINANCIAL HIGHLIGHTS
                                             1997                1996

    Quarter Ended June 30:
    Share Earns                         $         0.32      $         0.87
    Sales                               $  857,742,000      $  858,792,000
    Earnings Before Taxes               $   28,263,000      $   78,208,000
    Net Earnings                        $   17,750,000      $   48,254,000
    Average Shares Outstanding              55,417,000          55,242,000

    Six Months Ended June 30:
    Share Earns                         $         0.56      $         2.20
    Sales                               $1,695,405,000      $1,724,904,000
    Earnings Before Taxes               $   49,469,000      $  197,122,000
    Net Earnings                        $   31,067,000      $  121,624,000
    Average Shares Outstanding              55,391,000          55,233,000

                         WILLAMETTE INDUSTRIES, INC.
                          Quarterly Statistical Data
                             Second Quarter 1997

                                                     Second Quarter
                                               1997                 1996

    PRODUCT SHIPMENTS
      Lumber - 1"                             163,493              136,439
      Plywood - 3/8"                          431,194              438,661
      Oriented Strand Board - 3/8"             80,143               29,283
      Particleboard - 3/4"                    154,457              138,218
      MDF - 3/4"                              122,964*              68,436
      Corrugated - MSF                      5,619,413            5,419,280
      Grocery Bags - Tons                      30,246               30,306
      Business Forms - Tons                    87,172               88,058
      Cut-sheets - Tons                       122,623              108,822
      Brown Mills - Tons                      419,874              402,569
      Market Pulp - Tons                       34,807               36,482
      White Mills - Tons                      275,452              257,233

    * Includes Medite for 2nd quarter of 44,493

    SEGMENT INFORMATION ($ in Thousands)

        Building Materials Group             $320,255             $272,535
        Paper Group                           537,487              586,257
      Operating Earnings:
        Building Materials Group               40,725               25,033
        Paper Group                            16,863               73,312

    SUPPLEMENTAL FINANCIAL ($ in Thousands)
      Cost of Sales                          $738,927             $704,807
      Selling & Administration                 61,227               55,640
      Other Income - Net                          104                  969
      Interest Expense - Net                   29,429               21,106
      Capitalized Interest                      4,408                2,096
      Income Taxes                             10,513               29,954
      Tax Rate                                  37.2%                 38.3
      Depreciation & Amortization              71,292               64,572
      Fee Stumpage                             12,986               12,677
      Deferred Taxes                            4,205                4,793
      Plant, Property & Equipment (a)         139,645               89,136
      Timber, Roads & Reforestation             5,280                5,077
      Cavenham Acquisition                         --              957,385

    (a) Includes capitalized interest

    AVG. SHARES OUTSTANDING (000'S)            55,417               55,242

                         WILLAMETTE INDUSTRIES, INC.
                          Quarterly Statistical Data
                             Second Quarter 1997

                                                    Year-to-Date
                                             1997                  1996

    PRODUCT SHIPMENTS
      Lumber - 1"                            320,153               239,749
      Plywood - 3/8"                         840,868               877,546
      Oriented Strand Board - 3/8"           153,758                29,283
      Particleboard - 3/4"                   298,562               267,789
      MDF - 3/4"                             237,049*              124,315
      Corrugated - MSF                    10,838,635            10,489,092
      Grocery Bags - Tons                     57,345                61,391
      Business Forms - Tons                  179,392               173,294
      Cut-sheets - Tons                      236,999               199,725
      Brown Mills - Tons                     836,742               790,956
      Market Pulp - Tons                      64,282                64,692
      White Mills - Tons                     556,396               499,224

    * Includes Medite year-to-date of 87,706

    SEGMENT INFORMATION ($ in Thousands)
      Sales:
        Building Materials Group            $621,642              $498,973
        Paper Group                        1,073,763             1,225,931
      Operating Earnings:
        Building Materials Group              65,430                33,802
        Paper Group                           41,821               197,339

    SUPPLEMENTAL FINANCIAL ($ in Thousands)
      Cost of Sales                       $1,467,294            $1,382,973
      Selling & Administration               120,860               110,790
      Other Income - Net                         790                 1,173
      Interest Expense - Net                  58,572                35,192
      Capitalized Interest                     7,900                 4,641
      Income Taxes                            18,402                75,498
      Tax Rate                                 37.2%                 38.3%
      Depreciation & Amortization            141,184               124,344
      Fee Stumpage                            25,445                16,295
      Deferred Taxes                           8,972                12,080
      Plant, Property & Equipment (a)        230,248               191,330
      Timber, Roads & Reforestation           10,358                12,124
      Cavenham Acquisition                        --               957,385

    (a) Includes capitalized interest

    AVG. SHARES OUTSTANDING (000'S)           55,391                55,233

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