Temple-Inland Reports Lower 3rd Quarter 2011 Net Income
Oct. 19, 2011 - Temple-Inland Inc. today reported third quarter 2011 net income of $6 million, or $0.05 per diluted share, compared with second quarter 2011 net income of $19 million, or $0.17 per diluted share, and third quarter 2010 net income of $125 million, or $1.13 per diluted share. Third quarter 2011 net income excluding special items was $21 million, or $0.18 per diluted share.
Net debt at third quarter-end 2011 was $610 million, down $80 million compared with second quarter-end 2011 net debt of $690 million.
Corrugated Packaging segment operating income for third quarter 2011 was $84 million. The pre-tax cost of the previously disclosed operational upset at the Bogalusa paper mill was approximately $20 million in the quarter, $5 million of which is included in special items. Total mill downtime in third quarter 2011 was 58,000 tons, 54,000 tons of which was at the Bogalusa mill. Compared with second quarter 2011, recycled fiber and chemical costs were higher while costs for wood, freight and energy were lower. Box shipments were seasonally lower in the third quarter compared with the second quarter. Compared with third quarter 2010, recycled fiber, freight, chemical and energy costs were higher while the Company benefited from Box Plant Transformation II and lower virgin wood costs.
Fourth quarter 2011 maintenance related downtime is estimated to be approximately 22,000 tons. Box shipments in fourth quarter are typically lower than third quarter by approximately 15,000 to 20,000 tons due to fewer shipping days.
Building Products segment operating results improved in third quarter 2011 compared with second quarter 2011 primarily due to higher gypsum and particleboard prices. Operating results improved in third quarter 2011 compared with third quarter 2010 primarily due to higher gypsum and particleboard prices and higher particleboard volumes.
Fourth quarter volumes for all building products are typically lower compared with third quarter due to seasonality.
Special items for third quarter 2011 after-tax were $15 million, or $0.13 per diluted share, including: (i) a charge of $6 million, or $0.05 per diluted share, related to the previously announced merger with International Paper; (ii) a charge of $5 million, or $0.05 per share, related to Box Plant Transformation II; and (iii) a charge of $3 million, or $0.02 per diluted share, related to the cleanup resulting from the operational upset at the Bogalusa paper mill.
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 57 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