Temple-Inland 3Q Earnings Up on Better Pricing, Lower Input Costs
Oct. 20, 2010 - Temple-Inland Inc. reported third quarter 2010 net income of $125 million, or $1.13 per diluted share, compared with second quarter 2010 net income of $20 million, or $0.18 per diluted share, and third quarter 2009 net income of $67 million, or $0.61 per diluted share. Third quarter 2010 net income excluding special items was $45 million, or $0.41 per diluted share.
Doyle R. Simons, chairman and chief executive officer of Temple-Inland Inc., said, “We executed well in the quarter and delivered strong operating results, return on investment, and cash flow from operations.
“In Corrugated Packaging, we had record operating income of $121 million and generated a return on investment of 24%. Our mills ran exceptionally well, and we are pleased with our continued progress on Box Plant Transformation II. We also benefited from higher box prices, lower input costs and less mill maintenance downtime in the quarter.
“In Building Products, housing markets deteriorated in the quarter, and pricing was lower for all of our products, including a 26% decline in lumber prices. Through the first nine months of 2010, we have generated $27 million of EBITDA.
“Looking ahead, we are positioned for another solid quarter in Corrugated Packaging. In Building Products, we remain focused on lowering costs and generating cash in these challenging markets.”
Corrugated Packaging segment operating income for third quarter 2010 was a record $121 million. Operating income improved in third quarter 2010 compared with second quarter 2010 primarily due to higher box prices, lower input costs and less mill maintenance downtime, partially offset by seasonally lower box volumes. Operating income improved in third quarter 2010 compared with third quarter 2009 primarily due to higher box prices and benefits from box plant transformation, partially offset by higher input costs.
Building Products segment operating results declined in third quarter 2010 compared with second quarter 2010 due to lower pricing for all products. Operating results declined in third quarter 2010 compared with third quarter 2009 due to lower lumber and particleboard prices and higher input costs.
Special items for third quarter 2010 after-tax were $80 million, or $0.72 per share, including: (i) a tax benefit of $83 million, or $0.75 per share, related to the cellulosic biofuel producer credit; and (ii) a charge of $3 million, or $0.03 per share, primarily related to Box Plant Transformation II.
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 60 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial and repair and remodeling markets.
SOURCE: Temple-Inland Inc.