EX-99 3 tin8kslides.txt SLIDES FOR EARNINGS CALL [Temple-Inland Inc. Logo] This presentation contains forward looking statements that involve risks and uncertainties. The actual results achieved by Temple-Inland may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include general economic, market, or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by Temple-Inland and its subsidiaries; competitive actions by other companies; changes in law or regulations; the accuracy of certain judgments and estimates concerning the integration of Gaylord into the operations of Temple- Inland; and other factors, many of which are beyond the control of Temple-Inland and its subsidiaries. October 15, 2002 2 Third Quarter Results 3rd Qtr 3rd Qtr 2nd Qtr 2002 2001 2002 ------ ------ ------ TIN Income $ 15 $ 35 $ 26 EPS $0.28 $0.72 $0.50 Operating Income Paper $ 14 $ 31 $ 29 Building Products $ 12 $ 17 $ 21 Financial Services $ 44 $ 43 $ 37 3 Paper 3rd Qtr 3rd Qtr 2nd Qtr 2002 2001 2002 ------ ------ ------ *Operating income (millions) $ 14 $ 31 $ 29 *Price -Average domestic box price down $37/ton vs. 3rd qtr. 2001, and flat vs. 2nd qtr. 2002 -September prices up vs. 3rd qtr. average and upward pricing trend has continued in October 4 Paper (Cont'd) *Volume -Box shipments down 3% vs. 3rd qtr. 2001 (pro-forma combined shipments of the paper group and Gaylord) and down 3% vs. 2nd qtr. 2002 -Seasonal pick-up in September less than normal and trend has continued in October *Downtime -Containerboard production curtailed by 111,000 tons in 3rd qtr. 5 Paper (Cont'd) *OCC -OCC prices up $52/ton vs. 3rd qtr. 2001 and up $20/ton vs. 2nd qtr. 2002 -OCC prices began to decline in August; down approximately $20/ton in both August and September and anticipated to be down another $10/ton in October 6 Paper (Cont'd) *Capacity closures (600,000 tons) -Antioch, CA, linerboard mill permanently closed on September 20, 2002 (425,000 tons of capacity) -3 smaller, older, inefficient machines at Bogalusa, LA, linerboard mill permanently closed (175,000 tons of capacity) 7 Building Products 3rd Qtr 3rd Qtr 2nd Qtr 2002 2001 2002 ------ ------ ------ *Operating income (millions) $ 12 $ 17 $ 21 *Lumber -Average price down $37 vs. 3rd qtr. 2001 and down $33 vs. 2nd qtr. 2002 -Volume up 2% vs. 3rd qtr. 2001, but flat vs. 2nd qtr. 2002 8 Building Products (Cont'd) *Particleboard -Average price down $32 vs. 3rd qtr. 2001 and down $3 vs. 2nd qtr. 2002 -Volume up 7% vs. 3rd qtr. 2001, but down 7% vs. 2nd qtr. 2002 9 Building Products (Cont'd) *MDF -Average price up $5 vs. 3rd qtr. 2001 and up $13 vs. 2nd qtr. 2002 (improved product mix) -Volume up 22% vs. 3rd qtr. 2001, but down 14% vs. 2nd qtr. 2002 10 Building Products (Cont'd) * Gypsum -Average price up $18 vs. 3rd qtr. 2001, but down $3 vs. 2nd qtr. 2002 -Volume up 4% vs. 3rd qtr. 2001 and up 3% vs. 2nd qtr. 2002 11 High-Value Land [Map depicting location of 160,000 acres of high-value land in the Atlanta area] 12 Financial Services 3rd Qtr 3rd Qtr 2nd Qtr 2002 2001 2002 ------ ------ ------ *Operating income (millions) $ 44 $ 43 $ 37 *Loans -Increased focus on single-family, adjustable-rate mortgage assets *Deposits -Deposit costs remain competitive, however, increase in transaction accounts *Costs -Benefits from cost reduction initiatives being realized 13 Gaylord *Integration on track and on schedule *Asset sales on track and on schedule ($59 million sold to date) 14 [TEMPLE-INLAND INC. LOGO]