8-K

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: February 6, 2006

(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 Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1300 MoPac Expressway South, Austin, Texas 78746

(Address of Principal Executive Offices, including Zip code)

(512) 434-5800

(Registrant's telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))

Item 2.02.Results of Operations and Financial Condition.

On February 6, 2006, the Company issued a press release announcing the Company’s earnings for the quarter and year ended December 31, 2005. A copy of the press release is furnished as exhibit 99.1 of this report.

Item 7.01. Regulation FD Disclosure.

On February 6, 2006, Kenneth M. Jastrow, II, Chief Executive Officer of Temple-Inland Inc., participated in a conference call discussing the Company’s earnings for the quarter and year ended December 31, 2005. Copies of the presentation materials used by Mr. Jastrow are furnished as exhibit 99.2 of this report.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

99.1 Press release issued by the Company on February 6, 2006, announcing the Company’s earnings for the quarter and year ended December 31, 2005.

99.2 Presentation materials of Kenneth M. Jastrow, II, Chief Executive Officer of Temple-Inland Inc., used in Mr. Jastrow’s conference call on February 6, 2006, discussing the Company’s earnings for the quarter and year ended December 31, 2005.

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: February 6, 2006 By:       /s/ Doyle R. Simons                

Name: Doyle R. Simons

Title: Executive Vice President

2

EXHIBIT INDEX

Exhibit	Description	Page
99.1	Press release issued by the Company on February 6, 2006, announcing the Company’s earnings for the quarter and year ended December 31, 2005.	4
99.2	Presentation materials of Kenneth M. Jastrow, II, Chief Executive Officer of Temple-Inland Inc., used in Mr. Jastrow’s conference call on February 6, 2006, discussing the Company’s earnings for the quarter and year ended December 31, 2005	12

3

EX-99

NEWS

RELEASE___________________________________________________

FOR IMMEDIATE RELEASE

CONTACT: Chris L. Nines

(512) 434-5587

TEMPLE-INLAND INC. REPORTS FOURTH QUARTER

AND FULL YEAR 2005 RESULTS

AUSTIN, TEXAS, February 6, 2006--Temple-Inland Inc. today reported fourth quarter 2005 net income of $24 million, or $0.21 per diluted share, compared with fourth quarter 2004 net income of $53 million, or $0.46 per diluted share, and third quarter 2005 net income of $38 million, or $0.33 per diluted share.

As reflected in the table below, results for fourth quarter 2005 include after-tax special charges of $0.09 per share, principally related to the repositioning of the wholesale mortgage operation, converting facility closures, early retirement of debt securities, and previously discontinued operations.

	Fourth Quarter		Third Quarter
	2005	2004		2005
Net income per dil. share as reported	$0.21	$0.46		$0.33
Special items	0.09	(0.04)		0.14
Net income per diluted share, excluding special items	$0.30	$0.42		$0.47
Average shares outstanding – diluted	113.0	113.0		114.1

Shares and per share amounts reflect the effect of the two-for-one stock split on April 1, 2005.

For the year, net income was $176 million, or $1.54 per diluted share, compared with 2004 net income of $160 million, or $1.42 per diluted share. The table below reflects 2005 and 2004 net income per diluted share, excluding special items.

	Year
	2005	2004
Net income per dil. share as reported	$1.54	$1.42
Special items	0.36	0.22
Net income per diluted share, excluding special items	$1.90	$1.64
Average shares outstanding – diluted	114.5	112.4

Corrugated Packaging

Segment Operating Income 4th Qtr. 2005 4th Qtr. 2004 3rd Qtr. 2005 Full Year 2005 Full Year 2004

($ in Millions) ($3) $24 $15 $120 $96

Corrugated packaging reported full-year 2005 operating income of $120 million, compared with 2004 operating income of $96 million. This increase was driven primarily by business improvement factors of higher volumes and lower mill and converting costs, which offset negative market related factors, including increased costs for energy and freight.

Earnings in fourth quarter 2005 compared with fourth quarter 2004 were negatively affected by lower box prices, and higher energy, freight and wood costs. Compared with third quarter 2005, earnings were negatively affected by scheduled mill maintenance outages, impact of Hurricane Rita, lower volumes attributable to seasonality and three less shipping days, and higher costs, principally related to energy and freight.

Average prices for corrugated containers in fourth quarter 2005 were down 4% compared with fourth quarter 2004 and essentially flat compared with third quarter 2005. The average cost of recycled fiber in fourth quarter 2005 was down 19% compared with fourth quarter 2004 and down 18% compared with third quarter 2005.

On a volume per workday basis, shipments of corrugated containers were up 4.0% in fourth quarter 2005 compared with fourth quarter 2004, and up 3.7% compared with third quarter 2005. Shipments increased despite the closure of four box plants since fourth quarter 2004. Actual shipments were down 1% in fourth quarter 2005 compared with third quarter 2005 due to seasonality and three less shipping days. Shipments were up 2.5% on a volume per workday basis in 2005 compared with 2004.

2

Forest Products

Segment Operating Income 4th Qtr. 2005 4th Qtr. 2004 3rd Qtr. 2005 Full Year 2005 Full Year 2004

($ in Millions) $62 $50 $64 $238 $215

Forest products reported full-year operating income of $238 million in 2005, a record level for the second consecutive year. In addition, fourth quarter 2005 operating income of $62 million was a record fourth quarter.

Despite the impact of higher energy, chemical and wood costs, operating income in fourth quarter 2005 compared favorably with fourth quarter 2004 principally due to increased high-value land sales, and a $6 million gain on sale of timberland to TEMCO (a real estate joint venture between Temple-Inland and Cousins Properties). Operating income in fourth quarter 2005 compared with third quarter 2005 was negatively affected by higher energy costs.

Fourth quarter 2005 operating income included $10 million from high-value land sales compared with $7 million in fourth quarter 2004 and $3 million in third quarter 2005. The average sales price per acre of high-value land in fourth quarter 2005 was approximately $6,900 per acre. High value land sales averaged $7,300 per acre for 2005 compared with $7,100 in 2004.

Average lumber prices in fourth quarter 2005 were up 4% compared with fourth quarter 2004, but down 6% compared with third quarter 2005. Gypsum prices were up 22% compared with fourth quarter 2004, and up 6% compared with third quarter 2005. Particleboard prices were down 8% compared with fourth quarter 2004, and down 2% compared with third quarter 2005.

Shipments for lumber and particleboard were up in fourth quarter 2005 compared with fourth quarter 2004 and essentially flat compared with third quarter 2005. Shipments for gypsum were up in fourth quarter 2005 compared with fourth quarter 2004, but down compared with third quarter 2005.

Financial Services

Segment Operating Income 4th Qtr. 2005 4th Qtr. 2004 3rd Qtr. 2005 Full Year 2005 Full Year 2004

($ in Millions) $55 $58 $67 $220 $207

Financial services reported full-year operating income of $220 million for 2005, a record level for the second consecutive record year.

3

Earnings in fourth quarter 2005 were lower compared with fourth quarter 2004 principally because of a more normalized loan loss provision. Earnings were lower in fourth quarter 2005 compared with third quarter 2005 principally due to repositioning of the wholesale mortgage operation and a more normalized loan loss provision. The sale of the wholesale mortgage operation was completed in January 2006.

Comments

In announcing fourth quarter and full year 2005 results, Kenneth M. Jastrow, II, chairman and chief executive officer of Temple-Inland Inc. said, "Improved operating results achieved during 2005 reflect continued benefits from our strategic initiatives, cost reduction efforts, and improving market conditions.

“During 2005, our containerboard mill system achieved higher production, improved efficiency, and lower unit cost. With four less box plants in our system in 2005 versus 2004, our box shipments were up 2.5% in 2005, compared with 0.6% for the industry, on a volume per workday basis. Temple-Inland and the industry generated strong shipment growth in fourth quarter 2005. Our box shipments have outpaced the industry for the past two years, despite the closure of eleven box plants since third quarter 2003. This reduction in box plants, coupled with our growth in shipments, has resulted in improved asset utilization and lower costs.

“In 2005, our corrugated packaging operation generated $67 million in business improvements, resulting in $210 million in business improvements since 2003. We are on target to generate an additional $90 million in business improvements in the future from lower mill and converting costs and continued volume growth. In addition, market conditions are improving, and we expect higher box pricing in first quarter 2006.

“Forest products achieved record earnings for the second consecutive year, reflecting improved market conditions for our products and continued focus on low-cost operations. In January 2006 we acquired Caraustar’s interest in Standard Gypsum. These operations are low cost and located near some of the fastest growing markets in the South. Our gypsum business continues to generate very good earnings and returns.

“Financial services achieved record earnings for the second consecutive year. In fourth quarter 2005, we announced repositioning of the wholesale mortgage operation. The sale was completed in January 2006 which eliminated 250 positions, lowered costs, and reduced risk, positioning financial services for continued strong financial performance going forward.”

In conclusion, Mr. Jastrow said, “We remain committed to maximizing long-term value and returning cash to shareholders. During fourth quarter 2005 we repurchased 1.5 million shares. We have 3.5 million shares remaining under our current share repurchase authorization. In February 2006, our Board of Directors increased the dividend 11% to $1.00 per share, the fourth consecutive annual increase. We believe there is significant opportunity to create shareholder value through our new fourth line of business – Real Estate, which we will report as a separate segment in first quarter 2006.”

4

The company will host a conference call on February 6, 2005, at 9:00 a.m. ET to discuss results of the fourth quarter. The meeting may be accessed through Temple-Inland’s Internet site or by conference call. To access through Temple-Inland’s internet site, www.templeinland.com, click on "Investor Relations - Conference Call." To access by 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 passcode 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 passcode for the replay is 10493661.

Temple-Inland Inc. is a major manufacturer of corrugated packaging and forest 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 accordance with the Sustainable Forestry Initiative^® (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 press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements reflect management’s current views with respect to future events and are subject to risks and uncertainties. Factors and uncertainties that could cause our actual results to differ significantly from the results discussed in the forward-looking statements include, but are not limited to: general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to us and that we may pursue; the availability and price of raw materials we use; fluctuations in the cost of purchased energy; fluctuations in the costs we incur to transport the raw materials we use and the products we manufacture; assumptions related to pension and post-retirement costs; assumptions related to accounting for impaired assets; the collectibility of loans and accounts receivable and related provisions for losses; competitive actions by other companies; changes in laws or regulations and actions or restrictions of regulatory agencies; the accuracy of certain judgments and estimates concerning our integration of acquired operations; our ability to execute certain strategic and business improvement initiatives; and other factors, many of which are beyond our control. Our actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, and accordingly, we can give no assurances that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on our results of operations or financial condition. We expressly disclaim any obligation to publicly revise any forward-looking statements contained in this release to reflect the occurrence of events after the date of this release.

5

TEMPLE-INLAND INC. AND SUBSIDIARIES

(UNAUDITED)

		Fourth Quarter				For the Year
		2005		2004		2005		2004
		(Dollars in millions, except per share amounts)
Total revenues	$	1,212	$	1,184	$	4,888	$	4,750
Income from continuing operations	$	26	$	52	$	176	$	157
Discontinued operations		(2)		1		-		3
Net income	$	24	$	53	$	176	$	160
Diluted earnings per share:
Income from continuing operations	$	0.23	$	0.45	$	1.54	$	1.39
Discontinued operations		(0.02)		0.01		-		0.03
Net income	$	0.21	$	0.46	$	1.54	$	1.42
Average shares outstanding – diluted		113.0		113.0		114.5		112.4

6

Business Segments

		Fourth Quarter				For the Year
		2005		2004		2005		2004
		(Dollars in millions)
Revenues
Corrugated packaging	$	673	$	687	$	2,819	$	2,736
Forest products		260		232		1,031		971
Total manufacturing		933		919		3,850		3,707
Financial services		279		265		1,038		1,043
Total revenues	$	1,212	$	1,184	$	4,888	$	4,750
Income
Corrugated packaging	$	(3)	$	24	$	120	$	96
Forest products		62		50		238		215
Financial services		55		58		220		207
Total segment operating income		114		132		578		518
Expenses not allocated to segments
General and administrative		(24)		(22)		(91)		(79)
Share-based compensation		(7)		(4)		(26)		(14)
Other operating income (expense)		(10)		(27)		(90)		(76)
Other non-operating income and (expense)		(3)		2		-		-
Parent company interest		(27)		(28)		(109)		(125)
Income before taxes		43		53		262		224
Income (taxes) benefit		(17)		(1)		(86)		(67)
Income from continuing operations		26		52		176		157
Discontinued operations		(2)		1		-		3
Net income	$	24	$	53	$	176	$	160

(a) Diluted earnings per share and average shares outstanding – diluted have been adjusted to reflect our two-for-one stock split distributed on April 1, 2005.

(b) Income (taxes) reflect one-time benefits of 6 percent in 2005 resulting from the sale of a foreign subsidiary and 8 percent in 2004 (36 percent in fourth quarter 2004) resulting from the resolution of tax examinations.

(c) As previously announced, in January 2005, we changed our method of accounting for our corrugated packaging inventories from the LIFO method to the average cost method, which approximates FIFO. As required by generally accepted accounting principles, we have retrospectively applied the average cost method to our 2004 income statements and segment operating results, the effect of which is summarized as follows:

		Corrugated Packaging Segment Operating Income		Income from Continuing Operations		Per Diluted Share
		As Reported	Retrospective Application	As Reported	Retrospective Application	As Reported	Retrospective Application
		(In millions, except per share)
2004
	Fourth quarter	$ 27	$ 24	$ 54	$ 52	$ 0.47	$ 0.45
	For the Year	105	96	162	157	1.44	1.39

7

TEMPLE-INLAND INC. AND SUBSIDIARIES

(UNAUDITED)

Revenues and unit sales of manufacturing subsidiaries, excluding joint venture operations follows:

		Fourth Quarter				For the Year
		2005		2004		2005		2004
		Dollars in millions
Revenues
Corrugated Packaging
Corrugated Packaging	$	663	$	660	$	2,735	$	2,625
Linerboard		10		27		84		111
Total	$	673	$	687	$	2,819	$	2,736
Forest Products
Pine lumber (a)	$	74	$	68	$	312	$	295
Particleboard		45		43		195		182
Medium density fiberboard		15		27		87		111
Gypsum wallboard		39		29		143		110
Fiberboard		21		15		83		77
Other (a)		66		50		211		196
Total Forest Products	$	260	$	232	$	1,031		971
Unit sales
Corrugated Packaging
Corrugated Packaging, thousands of tons		842		810		3,437		3,366
Linerboard, thousands of tons		53		80		264		320
Total, thousands of tons		895		890		3,701		3,686
Forest Products
Pine lumber, mbf (a)		193		183		777		769
Particleboard, msf		153		137		640		595
Medium density fiberboard, msf		37		57		202		254
Gypsum wallboard, msf		216		196		859		766
Fiberboard, msf		102		76		431		407

Supplemental Financial Information for the Parent Company and its manufacturing subsidiaries follows:

Cash Balance (at qtr. end)	$		3	$		9
Long-Term Debt (at qtr. end)	$ 1,498			$ 1,485
Capital Expenditures	$	67		$	106		$	224 $	223

(a) We have reclassified prior period revenues and unit sales to conform to current period classification.

8

EX-99

Fourth Quarter and Full Year

2005 Results

February 6, 2006

2

This presentation contains "forward-looking statements" within the meaning of the federal
securities laws.  These forward-looking statements reflect management’s current views with
respect to future events and are subject to risks and uncertainties.  Factors and uncertainties
that could cause our actual results to differ significantly from the results discussed in the
forward-looking statements include, but are not limited to: general economic, market or
business conditions; the opportunities (or lack thereof) that may be presented to us and that
we may pursue; the availability and price of raw materials we use; fluctuations in the cost of
purchased energy; fluctuations in the costs we incur to transport the raw materials we use
and the products we manufacture; assumptions related to pension and post-retirement costs;
assumptions related to accounting for impaired assets; the collectibility of loans and
accounts receivable and related provisions for losses; competitive actions by other
companies; changes in laws or regulations and actions or restrictions of regulatory agencies;
the accuracy of certain judgments and estimates concerning our integration of acquired
operations; our ability to execute certain strategic and business improvement initiatives; and
other factors, many of which are beyond our control.  Our actual results, performance, or
achievement could differ materially from those expressed in, or implied by, these forward-
looking statements, and accordingly, we can give no assurances that any of the events
anticipated by the forward-looking statements will transpire or occur, or if any of them do so,
what impact they will have on our results of operations or financial condition. We expressly
disclaim any obligation to publicly revise any forward-looking statements contained in this
release to reflect the occurrence of events after the date of this presentation.

Fourth Quarter Results

Net Income      $    24   $   53  $   38

EPS$ 0.21   $0.46  $0.33

TIN

4th qtr. 2005 special items – total $0.09 per share after-tax

    - Reposition wholesale mortg. operations - $3 million, ($0.03) per share

    - Converting facility closures -  $3 million, ($0.02) per share

    - Retirement of debt securities - $2 million, ($0.02) per share

    - Previously discontinued operations - $2 million, ($0.02) per share

3

Per share results for all periods reflect the effect of the two-for-one
common stock split on April 1, 2005

4th Qtr

4th Qtr

3rd Qtr

2005

2004

2005

Fourth Quarter Results (cont’d)

4

Repurchased 1.5 million shares during 4th qtr. 2005

Net income per dil. share

$

0.21

$ 0.46

$

0.33

Special items

0.09

(0.04)

0

.14

Net income per dil. share

$  0.30

$ 0.42

$

0.47

excluding special items  

4th Qtr

3rd Qtr

2005

2004

2005  

Fourth Quarter Segment Results

5

Operating Income

(millions)

Corrugated Packaging

$  (3)

$  24

$  15

Forest Products

$

62

$  50

$  64

Financial Services

$

55

$  58

$  67

$

114

$132

$146

4th Qtr

4th Qtr

3rd Qtr

2005

2004

2005

Corrugated Packaging

Operating income

           (millions)

6

Price

-  4th qtr. 2005 avg. box price down $33/ton vs. 4th qtr. 2004 avg. price

-  4th qtr. 2005 avg. box price down $1/ton vs. 3rd qtr. 2005 avg. price

-  January 2006 avg. box price up approx.  $11/ton vs. 4th qtr. 2005 avg.

price and up approx. $20/ton vs. low point in 4th qtr. 2005

-  Additionally, a second box price increase reflecting the $40/ton

increase in linerboard will begin to be implemented in 1st qtr. 2006

4th Qtr

4th Qtr

3rd Qtr

2005

2004

2005

$ (3)

$ 24

$ 15

Corrugated Packaging (Cont’d)

7

2.5%

  Year 2005 vs. Year 2004

3.7%

  4th qtr. 2005 vs. 3rd qtr.  2005

4.0%

  4th qtr. 2005 vs. 4th qtr.  2004

TIN Box Volume Growth – (volume per workday
basis)

Closed 3 box plants in 4th qtr. 2005 – Atlanta, Louisville

and Newark

TIN box shipments have outpaced the industry for the past

two years, despite closure of 11 box plants since 3rd qtr.

2003.  TIN and industry generated strong shipment growth

4th qtr. 2005 vs. 4th qtr. 2004  

Corrugated Packaging (Cont’d)

Freight

Freight costs up $14 million vs. 4th qtr. 2004,
and up $8 million vs. 3rd qtr. 2005

Wood

Wood costs up $6 million vs. 4th qtr. 2004,
and up $1 million vs. 3rd qtr. 2005

8

Corrugated Packaging (Cont’d)

Recycled Fiber

Recycled fiber costs down $21/ton vs. 4th qtr.
2004 and down $19/ton vs. 3rd qtr. 2005

Energy

Energy costs up $17 million vs. 4th qtr. 2004,
and up $15 million vs. 3rd qtr. 2005

Current natural gas prices down $1.50/MMBtu
compared with 4th qtr. 2005 avg. price of
$12.5/MMBtu

9

Corrugated Packaging (Cont’d)

10

Operating Income Reconciliation

($ in Millions)

3rd qtr. 2005

$15

Hurricanes Katrina & Rita – 3 ^rd qtr. 2005

10

Mill Maintenance & Hurricane Rita (Orange)

(5)

Volume & Price

(4)

OCC

6

Higher Costs (primarily energy &
freight)

(25)

4th qtr. 2005

($3)

Forest Products

Operating income

(millions)

11

4th Qtr

4th Qtr

3rd Qtr

2005

2004

2005

$62

$ 50

$  64

Lumber

- Average price up $14 vs. 4th qtr. 2004, but down $25

vs. 3rd qtr. 2005

Volume up 5% vs. 4th qtr. 2004 and flat vs. 3rd qtr.

2005

-  Current prices are flat vs. 4th qtr. 2005 avg. price  

Forest Products (Cont’d)

Gypsum

- Average price up $33 vs. 4th qtr. 2004, and up $10
vs. 3rd qtr. 2005

- Volume up 10% vs. 4th qtr. 2004, but down 4% vs.
3rd qtr. 2005

- Current prices up $15 vs. 4th qtr. 2005 avg. price

-  In January 2006, Temple-Inland acquired
Caraustar’s 50% interest in Standard Gypsum LP

Temple-Inland Gypsum Capacity – 2.0 bsf

During 1st qtr. 2006 gypsum markets continue to
gain strength

12

Forest Products (Cont’d)

Particleboard

Average price down $25 vs. 4th qtr. 2004, and down $7
vs. 3rd qtr. 2005

Volume up 12% vs. 4th qtr. 2004, and flat vs. 3rd qtr.
2005

13

Forest Products (Cont’d)

High-Value Land Income

-  $10 million in high-value land income 4th qtr. 2005 vs.
$7 million 4th qtr. 2004 and $3 million 3rd qtr. 2005

-  Average sales price of $6,900 per acre 4th qtr. 2005 and
$7,300 per acre for full year 2005

Timberland Sale to TEMCO

-  6,300 acres sold to TEMCO under long-term option     contract for future residential real estate development

-  TEMCO – real estate joint venture between Temple-
Inland and Cousins Properties

-  Gain reported 4th qtr. 2005 - $6 million;

additional $6 million gain deferred and recognized as
development occurs

14

Financial Services

15

Earnings lower in 4th qtr. 2005 due to :

-

More normalized loan loss provision

-

Repositioning of wholesale mortgage operation

-  Sale completed January 2006

Eliminated 250 positions

4th Qtr

4th Qtr

3rd Qtr

2005

2004

2005

$ 55

$ 58

$ 67

Operating income

(millions)

Full Year Results

16

Per share results for all periods reflect the effect of the two-for-one
common stock split on April 1, 2005

Net income per dil. share

$

1.54

$

1.42

Special items

0.36

0.22

Net income per dil. share

$

1.90

$

1.64

excluding special items

2005

2004

Full Year Segment Results

17

Operating Income

(millions)

Corrugated Packaging

$120

$  96

Forest Products

238

215

Financial Services

220

207

$578

$518  

2005

2004

Comments

Pension Expense

-  2005 pension expense $50 million

-  2006 pension expense $47 million

Capital Expenditures

2005 Capital expenditures - $224 million

2006 Capital expenditures - $180 – $190 million

18

Summary Comments

19

Corrugated Packaging –

2005 business improvement $67 million

Two year business improvement $210 million

Forest Products – record earnings of $238 million

Financial Services – record earnings of $220 million

Temple-Inland total cost increase 2003-2005 up only 2.5%

Summary Comments

20

Annual dividend increased 11% to $1.00 per share

Fourth consecutive annual increase

Continued share repurchases, 3.5 million shares

remaining under current 6 million (5%) share

repurchase program

Real Estate segmentation 1st qtr. 2006

High-Value Land acres

203,000

Wholly-owned & J/V acres

20,000

223,000