-----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, MuL5BpQnTnd7BLzBS0wg3u8Xgg56Izz+lyEJT/u+smC90BXt+zStxfPjHtsW6jBw rTTyKOhb6o8aHh+hRT4rGg== 0000731939-04-000014.txt : 20040426 0000731939-04-000014.hdr.sgml : 20040426 20040426165841 ACCESSION NUMBER: 0000731939-04-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040426 ITEM INFORMATION: ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040426 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: 04754730 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 tin1q2004earnrel8k.txt 8-K REPORTING 1ST QUARTER 2004 EARNINGS UNITED STATES 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: April 26, 2004 (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 MoPac Expressway South, 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 April 26, 2004, announcing the Company's earnings for the quarter ended April 3, 2004. Item 9. Regulation FD Disclosure and Item 12. Results of Operations and Financial Condition. On April 26, 2004, the Company issued a press release announcing the Company's earnings for the quarter ended April 3, 2004. 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: April 26, 2004 By: /s/ M. Richard Warner ----------------------------- Name: M. Richard Warner Title: President 3 EXHIBIT INDEX Exhibit Description Page - ------- ----------- ---- 99.1 Press release issued by the Company on April 4 26, 2004, announcing the Company's earnings for the quarter ended April 3, 2004. EX-99 2 ex991q04earnrel.txt 1ST QUARTER 2004 EARNINGS RELEASE [TEMPLE-INLAND INC. LOGO] NEWS RELEASE------------------------------------------------------- FOR IMMEDIATE RELEASE CONTACT: Chris L. Nines (512) 434-5587 TEMPLE-INLAND INC. REPORTS IMPROVED FIRST QUARTER 2004 RESULTS AUSTIN, TEXAS, April 26, 2004--Temple-Inland Inc. today reported first quarter 2004 net income of $13 million, or $0.24 per diluted share, compared with a first quarter 2003 net loss of $18 million, or $0.32 per diluted share, and a fourth quarter 2003 net loss of $39 million, or $0.71 per diluted share. Results for first quarter 2004 include (i) an after-tax impairment charge of $7 million, or $0.13 per share, associated with the possible sale of the Clarion MDF facility, and (ii) an after-tax charge of $4 million, or $0.07 per share, associated with converting facility closures and Project TIP consolidation and supply chain initiatives. As reflected in the table below, the total effect of these special items is ($0.20) per share. First Fourth Quarter Quarter --------------- ------- 2004 2003 2003 ---- ---- ---- Net income (loss) per dil. share as reported $0.24 $(0.32) $(0.71) Special items 0.20 0.11 1.11 ---- ---- ---- Net income per diluted share, excluding special items $0.44 $(0.21) $ 0.40 Effective tax rate 39% 42% 30% Corrugated Packaging The corrugated packaging operation reported income of $10 million in first quarter 2004, compared with $2 million in first quarter 2003 and a loss of $5 million in fourth quarter 2003. Despite lower box prices and higher OCC costs, earnings improved in first quarter 2004 compared with first quarter 2003 and fourth quarter 2003 due to higher volumes and lower mill and converting costs. 2 On a volume per workday basis, shipments of corrugated containers were up 4.6% in first quarter 2004 compared with shipments in first quarter 2003 and up 0.5% compared with fourth quarter 2003. On an actual basis, shipments of corrugated containers were up 7.9% in first quarter 2004 compared with shipments in first quarter 2003 and up 2.1% compared with fourth quarter 2003. Average prices for corrugated containers in first quarter 2004 were 5% lower than first quarter 2003 and down 1% compared with fourth quarter 2003. The average cost of OCC in first quarter 2004 was up 26% compared with first quarter 2003 and up 13% compared with fourth quarter 2003. Energy costs were down $3 million in first quarter 2004 compared with first quarter 2003 and up $4 million compared with fourth quarter 2003. Forest Products The forest products operation reported income of $32 million in first quarter 2004, compared with a loss of $7 million in first quarter 2003 and income of $35 million in fourth quarter 2003. Operating income for first quarter 2004 included $3 million from high-value land sales compared with $1 million in first quarter 2003 and $5 million in fourth quarter 2003. The average sales price per acre of high-value land in first quarter 2004 was approximately $8,000 per acre. Average lumber prices in first quarter 2004 were up 18% compared with first quarter 2003, but down 2% compared with fourth quarter 2003. Particleboard prices were up 13% compared with first quarter 2003 and up 9% compared with fourth quarter 2003. Medium density fiberboard (MDF) prices were up 2% compared with first quarter 2003 and up 4% compared with fourth quarter 2003. Gypsum prices were up 26% compared with first quarter 2003 and up 6% compared with fourth quarter 2003. Shipments for lumber and particleboard were up in first quarter 2004 compared with first quarter 2003 and fourth quarter 2003. Shipments for gypsum were up in first quarter 2004 compared with first quarter 2003, but flat compared with fourth quarter 2003. Excluding the Clarion MDF facility, which was shut down in third quarter 2003, shipments for MDF were up in first quarter 2004 compared with first quarter 2003 and fourth quarter 2003. Financial Services The financial services operation reported income of $53 million in first quarter 2004 compared with $39 million in first quarter 2003 and $54 million in fourth quarter 2003. The improvement in earnings in first quarter 2004 compared with first quarter 2003 was the result of increased spreads, lower loan loss provision, and continued benefits from cost improvement programs. Comments In announcing first quarter results, Kenneth M. Jastrow, II, chairman and chief executive officer of Temple-Inland Inc., said, "The improvement in operating results in first quarter 2004 3 reflects the convergence of significant benefits from our strategic and cost reduction initiatives and improving market conditions. "In our corrugated packaging operation we are pleased with the continued strong improvement in box shipments, especially as the growth in shipments during first quarter 2004 was generated with three less box plants in our system. This positive trend in shipments has continued into the second quarter, and inventories remain at very low levels. "Results in our forest products operation reflect strong housing and repair and remodeling markets, improved pricing and volumes, and lower costs. We continue to benefit from maximizing the value of our forestland through increased fiber growth and self-sufficiency and the development of significant real estate opportunities on high-value land. "The results from financial services reflect the benefits from the revised asset-allocation targets to increase single- family mortgage asset exposure and continued efforts to lower costs. These two major initiatives have successfully lowered the risk profile of the portfolio and improved earning power, which provide a solid platform for strong profitability, cash flow and return on investment going forward." Commenting on the quarter, Mr. Jastrow said "During first quarter 2004, we continued to make progress on our initiatives to lower costs, improve operational efficiency, increase asset utilization and drive return on investment. Our high level of integration allows us to run the containerboard mills full, thereby increasing efficiency and lowering costs. We are realizing additional cost reductions by improving mill processes. We are also implementing initiatives to lower costs in our converting system through improved asset utilization and reduced personnel requirements. In fourth quarter 2003, we eliminated over 300 positions, resulting in annual savings of $20 million. In first quarter 2004, we announced the closure of converting facilities in Dallas, Texas and Raleigh, North Carolina. "Savings associated with Project TIP were $12 million through first quarter 2004, which represents current annual savings of $48 million. We remain confident in our ability to achieve $60 million in annual savings from Project TIP consolidation and supply chain initiatives by the end of 2004." The Company will host a meeting in New York on April 27, 2004 at 8:00 am EDT to discuss results of the first quarter. The meeting may be accessed through webcast or by conference call. The webcast may be accessed through Temple-Inland's Internet site at www.templeinland.com. To access the conference call, listeners calling from North America should dial 1-800-901-5217 at least 15 minutes prior to the start of the meeting. Those wishing to access the call from outside North America should dial 1-617-786-2964. The password is templeinland. Replays of the call will be available for two weeks following the completion of the live call and can be accessed at 1-888-286-8010 in North America and at 1-617-801-6888 outside North America. The password for the replay is 67576647. Temple-Inland Inc. is a major manufacturer of corrugated packaging and building products, with a diversified financial services operation. The Company's 2.0 million acres of forestland are certified as managed in compliance with ISO 14001 and in 4 accordance with the Sustainable Forestry Initiative (R) (SFI) 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 of 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; the availability and price of raw materials; competitive actions by other companies; changes in laws or regulations; the accuracy of judgments and estimates concerning the integration of acquired operations and Temple-Inland's consolidation and supply chain initiatives; and other factors, many of which are beyond the control of Temple- Inland. 5 TEMPLE-INLAND INC. AND SUBSIDIARIES (UNAUDITED) (in millions, except per share amounts)
First Quarter ------------- 2004 2003 ---- ---- Total revenues $ 1,148 $ 1,135 ===== ===== Income (loss) from continuing operations $ 13 $ (17) Effect of accounting change -- (1) Discontinued operations -- -- ----- ----- Net income (loss) $ 13 $ (18) ===== ===== Diluted earnings per share: Income (loss) from continuing operations $ 0.24 $ (0.31) Effect of accounting change -- (0.01) Discontinued operations -- -- ----- ----- Net income (loss) $ 0.24 $ (0.32) ===== ===== Average shares outstanding - diluted 55.6 54.0 Business Segments Revenues Corrugated packaging $ 673 $ 667 Forest products 220 180 Financial services 255 288 ----- ----- Total revenues $ 1,148 $ 1,135 ===== ===== Income Corrugated packaging $ 10 $ 2 Forest products 32 (7) Financial services 53 39 ----- ----- Segment operating income 95 34 Unallocated expenses (23) (19) Other expense (19) (9) Parent company interest (32) (35) ----- ----- Income (loss) before taxes 21 (29) Income (taxes) benefit (8) 12 ----- ----- Income (loss) from continuing operations 13 (17) Effect of accounting change -- (1) Discontinued operations -- -- ----- ----- Net income (loss) $ 13 $ (18) ===== ===== As previously announced, as a result of the consolidation of our administrative functions and the adoption of a shared services concept, beginning in first quarter 2004, we changed the way we allocate cost to the business segments. The effect of this change was to increase segment operating income and to increase unallocated expenses by a like amount. First quarter 2003 amounts have been reclassified below to reflect this change.
6
First Quarter 2003 -------------------------------------------- As Originally As Reported Reclassification Recalssified -------- ---------------- ------------ Corrugated packaging $ (4) $ 6 $ 2 Forest products (9) 2 (7) Financial services 39 -- 39 ---- ---- ---- Segment operating income 26 8 34 Unallocated expenses (20) (8) (28) ---- ---- ---- Operating income $ 6 $ -- $ 6 ==== ==== ====
7 TEMPLE-INLAND INC. AND SUBSIDIARIES (UNAUDITED)
First Quarter --------------- 2004 2003 ---- ---- Dollars in millions Revenues Corrugated Packaging $ 673 $ 667 Forest Products Pine lumber $ 79 $ 56 Particleboard 44 39 Medium density fiberboard 25 26 Gypsum wallboard 23 18 Fiberboard 17 14 Other 32 27 ----- ----- Total Forest Products $ 220 $ 180 ===== ===== Unit sales Corrugated Packaging , thousands of tons 953 904 Forest Products Pine lumber, mbf 236 198 Particleboard, msf 160 155 Medium density fiberboard, msf 57 64 Gypsum wallboard, msf 171 161 Fiberboard, msf 97 87 Revenues and unit sales do not include joint venture operations. Includes boxes sold and open market sales of linerboard.
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