-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V/dXmBvWrO6c0n6TqqNJnVM1ZuiaXgzn4LTcT5QEyEVDreuBV7j8yt2ZolU+ZFwW efHO28owZKIkqxdG7SnxCw== 0000731939-03-000030.txt : 20030723 0000731939-03-000030.hdr.sgml : 20030723 20030723094828 ACCESSION NUMBER: 0000731939-03-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030723 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLE INLAND INC CENTRAL INDEX KEY: 0000731939 STANDARD INDUSTRIAL CLASSIFICATION: PAPERBOARD MILLS [2631] IRS NUMBER: 751903917 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08634 FILM NUMBER: 03797480 BUSINESS ADDRESS: STREET 1: 1300 MOPAC EXPRESSWAY SOUTH CITY: AUSTIN STATE: TX ZIP: 78746 BUSINESS PHONE: 5124345800 MAIL ADDRESS: STREET 1: 1300 MOPAC EXPRESSWAY SOUTH CITY: AUSTIN STATE: TX ZIP: 78746 8-K 1 tin2qearn8k.txt FORM 8-K FOR 2ND QUARTER 2003 EARNING RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 _________________ Date of Report: July 23, 2003 (Date of earliest event reported) TEMPLE-INLAND INC. (Exact Name of Registrant as Specified in its Charter) Delaware 001-08634 75-1903917 (State or Other (Commission (IRS Employer Jurisdiction File Number) Identification No.) of Incorporation) 1300 South MoPac Expressway, Austin, Texas 78746 (Address of Principal Executive Offices) (512) 434-5800 (Registrant's telephone number, including area code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) 2 Item 7. Exhibits. (c) Exhibits. 99.1 Press release issued by the Company on July 23, 2003, announcing the Company's earnings for the quarter ended June 28, 2003. Item 9. Regulation FD Disclosure and Item 12. Results of Operations and Financial Condition. On July 23, 2003, the Company issued a press release announcing the Company's earnings for the quarter ended June 28, 2003. Copies of the press release are furnished as exhibit 99.1 of this report. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TEMPLE-INLAND INC. Date: July 23, 2003 By: /s/ M. Richard Warner ------------------------- Name: M. Richard Warner Title: Vice President and Chief Administrative Officer 3 EXHIBIT INDEX Exhibit Description Page - ------- ----------- ---- 99.1 Press release issued by the Company on July 23, 4 2003, announcing the Company's earnings for the quarter ended June 28, 2003. EX-99 3 tin2q03earnrel.txt 2ND QUARTER 2003 EARNING RELEASE [TEMPLE-INLAND INC. LOGO] NEWS RELEASE------------------------------------------------------ FOR IMMEDIATE RELEASE CONTACT: Doyle R. Simons (512) 434-3737 TEMPLE-INLAND INC. REPORTS SECOND QUARTER RESULTS AUSTIN, TEXAS, July 23, 2003 -- Temple-Inland Inc. today reported second quarter 2003 net income of $156 million, or $2.87 per diluted share, compared with second quarter 2002 net income of $15 million, or $0.29 per diluted share, and a first quarter 2003 loss of $18 million, or $0.32 per diluted share. Results for second quarter 2003 include: (i) a previously disclosed one-time tax benefit of $165 million, or $3.05 per diluted share, and (ii) an after-tax charge of $15 million, or $0.28 per diluted share, primarily associated with consolidation and supply-chain cost reduction initiatives. Results for second quarter 2002 included an after-tax charge of $0.19 per diluted share primarily related to fees associated with the early repayment of the bridge financing for the acquisition of Gaylord. Results for first quarter 2003 included after-tax charges totaling $0.10 per share primarily associated with the closure of two box plants and consolidation and supply-chain cost reduction initiatives. Corrugated Packaging The corrugated packaging operation reported income of $1 million in second quarter 2003, compared with income of $29 million in second quarter 2002 and a loss of $4 million in first quarter 2003. The decline in earnings in second quarter 2003 compared with second quarter 2002 was primarily attributable to $13 million in higher energy costs, $7 million in higher pension expenses and lower box volumes. Income was up in second quarter 2003 compared with first quarter 2003 due to improved mill operations and higher box volumes. Average prices for boxes in second quarter 2003 were flat compared with second quarter 2002 and down 2% compared with first quarter 2003. The cost of OCC was down 7% compared with second quarter 2002, but up 16% compared with first quarter 2003. - ------------------------------------------------------------------- Temple-Inland Inc. A forest resource company PO Box 40 with major interests in Austin, Texas 78767 corrugated packaging, building products and financial services - ------------------------------------------------------------------- 2 Shipments of corrugated containers were down approximately 3% compared with second quarter 2002, but up 4% compared with first quarter 2003 levels. Mill downtime in second quarter 2003 was approximately 21,000 tons. Building Products The building products operation reported income of $12 million in the quarter, compared with income of $21 million in second quarter 2002 and a loss of $9 million in first quarter 2003. Income for second quarter 2003 included $5 million in income from high-value land sales in the quarter, compared with $5 million in second quarter 2002 and $1 million in first quarter 2003. The average price for high-value land sales in second quarter 2003 was $6,000 per acre. Average prices for lumber were down 9% compared with second quarter 2002, but up 5% compared with first quarter 2003. Average prices for particleboard in the quarter were down 4% compared with the year ago second quarter, but up 3% compared with first quarter 2003. Medium density fiberboard (MDF) prices were down 4% compared with second quarter 2002 and down 2% compared with first quarter 2003. Gypsum prices were down 3% compared with second quarter 2002, but up 7% compared with first quarter 2003. Shipments for lumber in the quarter were up compared with second quarter 2002 and first quarter 2003. Shipments for particleboard, MDF and gypsum were down compared with second quarter 2002 and first quarter 2003. Financial Services The financial services operation reported income of $44 million in the quarter, compared with $37 million in second quarter 2002 and $39 million in first quarter 2003. The improvement compared with second quarter 2002 and first quarter 2003 was primarily attributable to cost reduction initiatives, progress toward achieving asset allocation targets and record levels of originations by the mortgage banking operation. Comments In announcing results, Kenneth M. Jastrow, II, chairman and chief executive officer of Temple-Inland Inc., said, "Although improved from the first quarter, our results for the second quarter continued to reflect challenging business conditions resulting from the sluggish U.S. manufacturing economy. Despite this environment, free cash flow allowed reduction of debt by approximately $75 million in the quarter. We remain committed to disciplined capital expenditures and are focused on lowering costs through our consolidation and supply-chain initiatives. In addition, we are pursuing further cost reduction opportunities in all operations. "In our corrugated packaging business, demand for boxes remains lackluster and improvement is dependent on the U.S. economy. The mills operated well in the quarter, and our high level of integration allowed us to take only minimal downtime. 3 "Lumber and gypsum markets improved in the quarter, and an August price increase has been announced for gypsum. Particleboard and MDF markets continue to be oversupplied. "Earnings from financial services improved in the second quarter compared with both the year ago and prior quarter. Earnings for this operation should continue to improve for the balance of the year." Temple-Inland Inc. is a major manufacturer of corrugated packaging and building products, with a diversified financial services operation. The Company's 2.1 million acres of forestland are certified as managed in compliance with ISO 14001 and in accordance with the Sustainable Forestry Initiative (SFISM) program of the American Forest & Paper Association to ensure forest management is conducted in a scientifically sound and environmentally sensitive manner. Temple-Inland's common stock (TIN) is traded on the New York Stock Exchange and the Pacific Exchange. Temple-Inland's address on the World Wide Web is www.templeinland.com. This release 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 laws or regulations; the accuracy of certain judgments and estimates concerning the integration of Gaylord into the operations of the company; the accuracy of certain judgments and estimates concerning the company's consolidation and supply chain initiatives; and other factors, many of which are beyond the control of Temple-Inland and its subsidiaries. 4 TEMPLE-INLAND INC. AND SUBSIDIARIES (UNAUDITED) (in millions, except per share amounts) Second Quarter Six Months Ended 2003 2002 2003 2002 ---- ---- ---- ---- Total revenues $ 1,182 $ 1,190 $ 2,317 $ 2,210 ===== ===== ===== ===== Income from continuing operations $ 155 $ 16 $ 138 $ 31 Effect of accounting change - - (1) (1) Discontinued operations 1 (1) 1 (11) ----- ----- ----- ----- Net income $ 156 $ 15 $ 138 $ 19 ===== ===== ===== ===== Diluted earnings per share: Income from continuing operations $ 2.86 $ 0.31 $ 2.55 $ 0.61 Effect of accounting change - - (0.01) (0.22) Discontinued operations 0.01 (0.02) 0.01 (0.02) ----- ----- ----- ----- Net income $ 2.87 $ 0.29 $ 2.55 $ 0.37 ===== ===== ===== ===== Average shares outstanding - diluted 54.1 52.4 54.1 51.0 Business Segments Revenues - -------- Corrugated packaging $ 685 $ 703 $ 1,352 $ 1,260 Building products 192 218 372 408 Financial services 305 269 593 542 ----- ----- ----- ----- Total revenues $ 1,182 $ 1,190 $ 2,317 $ 2,210 ===== ===== ===== ===== Income Corrugated packaging $ 1 $ 29 $ (3) $ 51 Building products 12 21 3 31 Financial services 44 37 83 71 ----- ----- ----- ----- Segment operating income 57 87 83 153 Unallocated general and administrative expense (11) (8) (22) (18) Other expense (23) (17) (32) (24) Parent company interest (35) (36) (70) (61) ----- ----- ----- ----- Income (loss) before taxes (12) 26 (41) 50 Income (taxes) benefit 167 (10) 179 (19) ----- ----- ----- ----- Income from continuing operations 155 16 138 31 Effect of accounting change - - (1) (11) Discontinued operations 1 (1) 1 (1) ----- ----- ----- ----- Net income $ 156 $ 15 $ 138 $ 19 ===== ===== ===== ===== 5 TEMPLE-INLAND INC. AND SUBSIDIARIES (UNAUDITED) Second Quarter Six Months Ended 2003 2002 2003 2002 ---- ---- ---- ---- (dollars in millions) Revenues Corrugated Packaging (b) $ 685 $ 703 $ 1,352 $ 1,260 Building Products Pine lumber $ 64 $ 66 $ 120 $ 118 Particleboard 36 47 75 90 Medium density fiberboard 23 33 49 59 Gypsum wallboard 16 20 34 39 Fiberboard 17 18 31 34 Other 36 34 63 68 ----- ----- ----- ----- Total Building Products $ 192 $ 218 $ 372 $ 408 ===== ===== ===== ===== Unit sales Corrugated Packaging (b), thousands of tons 956 973 1,860 1,713 Building Products Group Pine lumber, mbf 216 202 414 375 Particleboard, msf 140 177 295 337 Medium density fiberboard, msf 57 85 121 152 Gypsum wallboard, msf 146 166 307 339 Fiberboard, msf 102 109 189 206 (a) Revenues and unit sales do not include joint venture operations. (b) Includes boxes sold and open market sales of linerboard. Note: Data for corrugated packaging for 2003 is not comparable due to the effects of acquisitions completed in 2002. -----END PRIVACY-ENHANCED MESSAGE-----