Temple-Inland Reports 4Q/Full Year Results
Feb. 9, 2010- Temple-Inland Inc. today reported net income for full year 2009 of $206 million, or $1.89 per diluted share, compared with a net loss of $8 million, or $0.08 per share, in 2008. Net income in 2009 excluding special items was $78 million, or $0.70 per diluted share, compared with $12 million, or $0.11 per diluted share, in 2008.
Doyle R. Simons, chairman and chief executive officer of Temple-Inland Inc., said, “We delivered strong operating results and cash flow in 2009 despite tough economic conditions. Cash from operations was $640 million. We reduced debt by $482 million for the year.
“In Corrugated Packaging, we posted record operating income of $347 million and generated a return on investment of 16.5%, the highest return among our peers. Operating income in 2009 improved by over 50% compared with 2008 driven by our lower cost structure in our box plant system and benefits from our Newport, Indiana mill, which included integration synergies and production of value-added white-top linerboard. We also benefited from lower input costs, our heavy orientation to the food and beverage market and our integrated system.
“Building Products markets continue to suffer from the decline in housing markets. Despite a 39% decrease in housing starts in 2009 compared with 2008, we generated $17 million of EBITDA in 2009, an increase of $9 million compared with 2008. Our improvement in 2009 was due to our structural cost reduction initiatives, favorable geographic footprint and mix of products. We remain focused on generating cash and returning to profitability in this business.
“As we enter 2010, we are focused on fully implementing the current box price increase and continuing to structurally lower our costs in Corrugated Packaging. In Building Products, our low-cost assets and favorable product mix position us to fully capitalize on an economic rebound and recovery in housing.”
Fourth quarter 2009 net income was $38 million, or $0.34 per diluted share, compared with fourth quarter 2008 net loss of $6 million, or $0.06 per share, and third quarter 2009 net income of $67 million, or $0.61 per diluted share. Fourth quarter 2009 net loss excluding special items was $7 million, or $0.07 per share.
Corrugated Packaging operating results were a record $347 million in 2009. Earnings improved in 2009 compared with 2008 as lower input and converting costs and the benefits of the acquisition of the Newport, Indiana mill more than offset lower box prices and volumes. Operating results declined in fourth quarter 2009 compared with third quarter 2009 due to lower box volumes, higher input costs, more downtime and lower prices.
Building Products operating results improved in 2009 compared with 2008 primarily due to lower costs. Operating income for fourth quarter 2009 declined compared with third quarter 2009 primarily due to lower shipments and prices for all products. Results for fourth quarter 2009 also include $4 million of non-cash inventory adjustments and asset write-offs.
Special items for 2009 after tax were $128 million, or $1.19 per diluted share, including: (i) income of $134 million, or $1.24 per diluted share, for alternative fuel mixture tax credits; (ii) a charge of $11 million, or $0.10 per diluted share, related to the substitution of letters of credit in connection with the 2007 sale of timberland; (iii) income of $9 million, or $0.09 per diluted share, related to the purchase and retirement of long-term debt; and (iv) a charge of $3 million, or $0.03 per diluted share, related to facility closures and employment reductions.
Special items for fourth quarter 2009 after tax were income of $45 million, or $0.41 per diluted share, for alternative fuel mixture tax credits.
Temple-Inland Inc. is a manufacturing company focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of 7 mills and 63 converting facilities.
SOURCE: Temple-Inland Inc.