Temple-Inland Reports 2nd Quarter 2011 Earnings
July 21, 2011 - Temple-Inland Inc. today reported second quarter 2011 net income of $19 million, or $0.17 per diluted share, compared with first quarter 2011 net income of $16 million, or $0.15 per diluted share, and second quarter 2010 net income of $20 million, or $0.18 per diluted share.
Second quarter 2011 net income excluding special items was $23 million, or $0.21 per diluted share, compared with first quarter 2011 net income excluding special items of $24 million, or $0.22 per diluted share, and second quarter 2010 net income excluding special items of $21 million, or $0.19 per diluted share.
Doyle R. Simons, chairman and chief executive officer of Temple-Inland Inc., said, “We had another very good quarter, as our employees again delivered solid operating results. We also generated strong cash from operations of $121 million. Our net debt at second quarter end was $690 million, down $47 million from first quarter end net debt of $737 million.
“In Corrugated Packaging, despite rising input costs and two fewer shipping days compared with first quarter 2011, second quarter operating income was $96 million and return on investment was 18%. Our mills performed well in the quarter and we continue to make good progress on Box Plant Transformation II.
“In Building Products, we generated positive EBITDA in the quarter despite depressed housing markets.
“Looking forward, corrugated packaging industry fundamentals are constructive. We are focused on executing our strategic initiatives and continuing to generate returns well in excess of our cost of capital. In Building Products, we remain committed to generating cash at these depressed levels of housing starts and driving high returns for shareholders as housing markets recover.”
Corrugated Packaging operating results for second quarter 2011 were $96 million. Earnings declined slightly in second quarter 2011 compared with first quarter 2011 as lower mill downtime and benefits from box plant transformation were more than offset by higher input costs and two fewer shipping days. Operating results improved in second quarter 2011 compared with second quarter 2010 as higher box prices and benefits from box plant transformation more than offset higher input costs.
Building Products operating results declined in second quarter 2011 compared with first quarter 2011 as lower lumber prices and gypsum volumes more than offset higher gypsum prices. Operating results declined in second quarter 2011 compared with second quarter 2010 primarily due to lower lumber prices and lower gypsum volumes.
Special items for second quarter 2011 were an after-tax charge of $4 million, or $0.04 per diluted 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 58 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.