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 5, 2007
(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))

TABLE OF CONTENTS

Press Release

Presentation Materials

Item 2.02. Results of Operations and Financial Condition.

     On February 5, 2007, the Company issued a press release announcing the Company’s earnings for the quarter and year ended December 30, 2006. A copy of the press release is furnished as exhibit 99.1 of this report.

Item 7.01. Regulation FD Disclosure.

     On February 5, 2007, 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 30, 2006. 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 5, 2007, announcing the Company’s earnings for the quarter and year ended December 30, 2006.
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 5, 2007, discussing the Company’s earnings for the quarter and year ended December 30, 2006.

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 5, 2007	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 5, 2007, announcing the Company’s earnings for the quarter and year ended December 30, 2006.		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 5, 2007, discussing the Company’s earnings for the quarter and year ended December 30, 2006	xx

3

EX-99.1

EXHIBIT 99.1

NEWS
RELEASE

FOR IMMEDIATE RELEASE
CONTACT: Chris L. Nines
                      (512) 434-5587

TEMPLE-INLAND INC. REPORTS FOURTH QUARTER
AND FULL YEAR 2006 RECORD RESULTS

     AUSTIN, TEXAS, February 5, 2007—Temple-Inland Inc. today reported fourth quarter 2006 net income of $104 million, or $0.97 per diluted share, compared with fourth quarter 2005 net income of $24 million, or $0.21 per diluted share, and third quarter 2006 net income of $96 million, or $0.87 per diluted share.

     Results for fourth quarter 2006 include a net after-tax gain of $26 million, or $0.24 per share, principally related to payments received pursuant to the Softwood Lumber Agreement between the U.S. and Canada. As reflected in the table below, net income per diluted share, excluding special items, for fourth quarter 2006 is $0.73 per share, compared with $0.30 per share in fourth quarter 2005, and $0.93 per share in third quarter 2006.

	Fourth Quarter					Third Quarter
	2006			2005		2006
Net income per dil. share as reported	$	0.97		$	0.21	$	0.87
Adjustment for special items		(0.24	)		0.09		0.06
Net income per diluted share, Excluding special items	$	0.73		$	0.30	$	0.93
Average shares outstanding – diluted (in millions)		107.8			113.0		110.3

     For the year, net income was $468 million, or $4.22 per diluted share, compared with 2005 net income of $176 million, or $1.54 per diluted share. Net income per diluted share excluding special items was $3.32 in 2006 compared with $1.90 in 2005, an increase of 75%. At year end 2006, fully diluted outstanding shares were 106.7 million.

	Year
	2006			2005
Net income per diluted share as reported	$	4.22		$	1.54
Special items		(0.90	)		0.36
Net income per diluted share, excluding special items	$	3.32		$	1.90
Average shares outstanding — diluted		110.8			114.5

Corrugated Packaging

	4th Qtr.		4th Qtr.			3rd Qtr.		Year		Year
Segment Operating Income	2006		2005			2006		2006		2005
($ in Millions)	$	74	$	(3	)	$	74	$	255	$	120

     Corrugated Packaging operating income increased to $255 million in 2006 compared with $120 million in 2005.

     Corrugated Packaging operating income improved fourth quarter 2006 compared with fourth quarter 2005, principally due to higher corrugated container prices and lower energy costs. Operating income was flat fourth quarter 2006 compared with third quarter 2006 as higher corrugated container prices and lower recycled fiber costs were offset by lower box shipments and higher energy and freight costs.

     Shipments fourth quarter 2006 were down 6%, on a volume per workday basis, compared with fourth quarter 2005 primarily due to the previously-announced sale of Performance Sheets (a sheet feeder plant in City of Industry, California) August 2006. On a volume per workday basis, shipments of corrugated containers were essentially flat fourth quarter 2006 compared with third quarter 2006.

     Average prices for corrugated containers fourth quarter 2006 were up 13% compared with fourth quarter 2005 and up 2% compared with third quarter 2006. The average cost of recycled fiber fourth quarter 2006 was up 10% compared with fourth quarter 2005, but down 16% compared with third quarter 2006. Freight costs were up $2 million compared with fourth quarter 2005 and third quarter 2006. Energy costs were down $16 million fourth quarter 2006 compared with fourth quarter 2005, but up $3 million compared with third quarter 2006.

2

Forest Products

	4th Qtr.		4th Qtr.		3rd Qtr.		Year		Year
Segment Operating Income	2006		2005		2006		2006		2005
($ in Millions)	$	46	$	52	$	83	$	312	$	219

     Forest Products reported operating income of $312 million in 2006, a record level for the third consecutive year.

     Operating income declined fourth quarter 2006 compared with fourth quarter 2005 primarily due to lower lumber pricing. Operating income declined fourth quarter 2006 compared with third quarter 2006 due to lower pricing and shipments. Fourth quarter and full year 2006 operating income reflect the benefit of the acquisition of our partner’s interest in Standard Gypsum January 2006.

     Average lumber prices fourth quarter 2006 were down 25% compared with fourth quarter 2005 and down 6% compared with third quarter 2006. Gypsum prices were up 13% compared with fourth quarter 2005, but down 9% compared with third quarter 2006. Particleboard prices were up 29% compared with fourth quarter 2005, but down 2% compared with third quarter 2006.

     Shipments of lumber, gypsum (adjusted for the acquisition of our partner’s interest in Standard Gypsum January 2006) and particleboard were down fourth quarter 2006 compared with fourth quarter 2005 and third quarter 2006.

Real Estate

	4th Qtr.		4th Qtr.		3rd Qtr.		Year		Year
Segment Operating Income	2006		2005		2006		2006		2005
($ in Millions)	$	12	$	16	$	15	$	62	$	44

     Real estate reported operating income of $62 million in 2006.

     Real Estate operating income fourth quarter 2006 was $12 million. Including joint-venture activity, 1,150 acres of high-value land were sold at an average sales price of approximately $9,500 per acre fourth quarter 2006, resulting in a gain of $10 million.

     Residential development activity for all wholly and partially-owned projects during fourth quarter 2006 included the sale of 715 lots at an average price of approximately $49,300 per lot.

     Commercial activity for all wholly and partially-owned projects during fourth quarter 2006 included the sale of 57 acres at an average price of $123,400 per acre, resulting in a gain of $3 million.

3

Financial Services

	4th Qtr.		4th Qtr.		3rd Qtr.		Year		Year
Segment Operating Income	2006		2005		2006		2006		2005
($ in Millions)	$	53	$	51	$	58	$	222	$	201

     Financial Services reported operating income of $222 million in 2006, a record level for the third consecutive year.

     Financial Services operating income increased fourth quarter 2006 compared with fourth quarter 2005 due to stronger credit conditions and lower costs. Operating income declined fourth quarter 2006 compared with third quarter 2006 principally due to lower noninterest income.

Comments

     In announcing fourth quarter and full year results, Kenneth M. Jastrow, II, chairman and chief executive officer of Temple-Inland Inc. said, “For the year 2006, Temple-Inland achieved record earnings of $3.32 per share, excluding special items, and return on investment of 15.9%, reflecting the benefit of our strategic initiatives and market conditions.

     In 2006 we returned approximately 10% of Temple-Inland’s average market capitalization to shareholders through share repurchases and dividends. During fourth quarter 2006 we repurchased 2.2 million shares, bringing the total for the year to 7.9 million shares. In addition, on February 2, 2007 the Board of Directors approved an additional 5 million share repurchase authorization, representing approximately 5% of shares outstanding. Also, the Board increased the dividend 12% to $1.12 in 2007, the fifth consecutive year we have raised the dividend. We have paid a dividend every year since Temple-Inland became a public company.

     “In 2006, our containerboard mill system achieved record production, greater efficiency, and lower cost per ton. Despite the closure of eleven box plants since third quarter 2003, Temple-Inland’s box shipments were up 6% in 2006 compared with 2003, resulting in increased asset utilization and lower converting costs. Industry box shipments were up 5% during this same period. Since 2003, we have generated $225 million in business improvement, and we expect to generate an additional $75 million in business improvement in the future by focusing on manufacturing excellence within our box plant system and further operational efficiency in our containerboard mills.

     “Forest Products achieved record operating income in 2006, a third consecutive record year, reflecting the benefits from our focus on fiber integration, improved market conditions for gypsum and particleboard, and the acquisition of our partner’s interest in Standard Gypsum in January 2006.

4

     “Real Estate generated $62 million in operating income in 2006. During fourth quarter 2006, zoning was approved on 2,001 acres of our high-value land around Atlanta, GA, including 1,840 acres of residential property, representing 3,257 lots, and 161 acres for commercial use. During 2006, 4,890 acres of high-value land were transferred from undeveloped into the “in entitlement process” category.

     “Financial Services had record operating income in 2006, a third consecutive record year. Generating asset growth and remaining low cost continue to be the focus in Financial Services. Our retail branch network is located in Texas and California, the largest and fastest growing deposit markets in the country. In addition, multiple loan products and a nationwide lending platform provide the opportunity to grow earning assets.

     “For the year 2006, Temple-Inland achieved all-time record earnings and strong return on investment, reflecting the benefit of our strategic initiatives, improved market conditions and the dedication of all Temple-Inland employees to be the best.”

     The Company will host a conference call on February 5, 2007 at 10:00 am EDT to discuss results of the fourth quarter and full year 2006. 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 54632640.

     Temple-Inland Inc. operates four business segments: corrugated packaging, forest products, real estate and financial services. 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) Standard of the Sustainable Forestry Board 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. Temple-Inland’s address on the World Wide Web is www.templeinland.com.

This release contains “forward-looking statements” within the meaning of the federal securities laws. These statements reflect management’s current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that might cause such differences 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; fluctuations in costs and expenses including the costs of raw materials, purchased energy, and freight; demand for new housing; accuracy of accounting assumptions related to pension and postretirement costs, impaired assets, allowance for credit losses, and income taxes; competitive actions by other companies; changes in laws or regulations and actions or restrictions of regulatory agencies; our ability to execute certain strategic and business improvement initiatives; and other factors, many of which are beyond our control.

This release includes non-GAAP financial measures. The required reconciliations to GAAP financial measures are located in this release.

5

TEMPLE-INLAND INC. AND SUBSIDIARIES
UNAUDITED

Business Segments

	Fourth Quarter						Year to Date
	2006			2005			2006			2005
	(In millions,						(In millions,
	except per share)						except per share)
Revenues
Corrugated packaging	$	752		$	675		$	2,977		$	2,825
Forest products		253			255			1,237			1,040
Real estate		34			33			175			113
Financial services		293			265			1,169			983
Total revenues	$	1,332		$	1,228		$	5,558		$	4,961
Income
Corrugated packaging	$	74		$	(3	)	$	255		$	120
Forest products		46			52			312			219
Real estate		12			16			62			44
Financial services		53			51			222			201
Total segment operating income		185			116			851			584
Expenses not allocated to segments
General and administrative		(30	)		(24	)		(107	)		(91	)
Share-based compensation (a)		(14	)		(7	)		(46	)		(26	)
Other operating income (expense)		36			(10	)		15			(90	)
Other non-operating income (expense)		—			(3	)		92			—
Parent company interest		(30	)		(29	)		(128	)		(115	)
Income before taxes		147			43			677			262
Income (taxes) benefit		(42	)		(17	)		(208	)		(86	)
Income from continuing operations		105			26			469			176
Discontinued operations		(1	)		(2	)		(1	)		—
Net income	$	104		$	24		$	468		$	176
Diluted earnings per share:
Income from continuing operations	$	0.98		$	0.23		$	4.23		$	1.54
Discontinued operations		(0.01	)		(0.02	)		(0.01	)		—
Net income	$	0.97		$	0.21		$	4.22		$	1.54
Average diluted shares outstanding		107.8			113.0			110.8			114.5

We have recast prior period results to reflect the classification of the new business segment, real estate. In addition, we have recast 2005 revenues to include gross real estate sales that had previously been reported net and certain other ancillary revenues previously reflected as a reduction of cost of sales.

(a) The adoption of SFAS 123(R) for 2006 stock awards resulted in the acceleration of $7 million in pre-tax share-based compensation expense ($0.04 per share after-tax) into first quarter 2006.

6

     Non-GAAP Financial Measure

     Net income excluding special items and net income per diluted share excluding special items are important measures for us and investors because they allow useful and consistent comparisons of on-going operations by excluding gains and losses that management believes are not indicative of our ongoing operating results.

     We define special items to include discontinued operations, effects of accounting changes, and other items such as gains or losses on sales of non-strategic assets; asset impairments; and unusual income, expenses, and tax benefits or charges. The most comparable GAAP measures are net income and net income per diluted share.

     Despite their importance to us, net income excluding special items and net income per diluted share excluding special items are non-GAAP financial measures that have no standardized definitions and as a result may not be comparable with other companies’ measures using the same or similar terms. This lack of comparability may limit the usefulness of these measures to us and investors. There may be other limits in the usefulness of these measures to investors. As a result, we encourage you to read our financial information in its entirety and not to rely on any single financial measure.

     Calculation of Non-GAAP Financial Measure

						Third
	Fourth Quarter					Quarter		For the Year
	2006			2005		2006		2006			2005
	(In millions, except per share)
Net income determined in accordance with GAAP	$	104		$	24	$	96	$	468		$	176
Special items, after-tax
Closure and sale of converting and production facilities and sale of non-strategic assets		5			2		3		8			30
Hurricane related costs, and in 2006, related insurance proceeds		(1	)		—		—		(1	)		10
Litigation and other		2			5		3		4			14
Settlement of tax litigation		—			—		—		(85	)		—
Softwood Lumber Agreement		(27	)		—		—		(27	)		—
Financial Services repositioning activities		(1	)		3		—		7			3
One-time tax benefit(a)		(4	)		—		—		(6	)		(16	)
Total special items, after-tax		(26	)		10		6		(100	)		41
Net income excluding special items as defined	$	78		$	34	$	102	$	368		$	217
Average diluted shares outstanding		107.8			113.0		110.3		110.8			114.5
Net income per diluted share determined in accordance with GAAP	$	0.97		$	0.21	$	0.87	$	4.22		$	1.54
Special items, after-tax, per diluted share
Closure and sales of converting and production facilities and sale of non-strategic assets		0.05			0.02		0.03		0.07			0.26
Hurricane related costs, and in 2006, related insurance proceeds		(0.01	)		—		—		(0.01	)		0.09
Litigation and other		0.02			0.04		0.03		0.04			0.12
Settlement of tax litigation		—			—		—		(0.77	)		—
Softwood Lumber Agreement		(0.25	)		—		—		(0.24	)		—
Financial Services repositioning activities		(0.01	)		0.03		—		0.06			0.03
One-time tax benefit(a)		(0.04	)		—		—		(0.05	)		(0.14	)
Total special items, per diluted share		(0.24	)		0.09		0.06		(0.90	)		0.36
Net income per diluted share excluding special items as defined	$	0.73		$	0.30	$	0.93	$	3.32		$	1.90

(a) Relates to new Texas state tax legislation in 2006 and sale of Pembroke facility in 2005.

7

TEMPLE-INLAND INC. AND SUBSIDIARIES
UNAUDITED

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

	Fourth Quarter				Year to Date
	2006		2005		2006		2005
			(Dollars in millions)
Revenues
Corrugated Packaging
Corrugated packaging	$	693	$	657	$	2,841	$	2,728
Linerboard		59		18		136		97
Total Corrugated Packaging	$	752	$	675	$	2,977	$	2,825
Forest Products
Pine lumber	$	54	$	74	$	278	$	312
Gypsum wallboard (a)		90		39		420		143
Particleboard		45		45		214		195
Medium density fiberboard (a)		13		15		65		87
Fiberboard		13		21		72		83
Mineral and hunting leases		7		7		45		31
Fiber and other		31		54		143		189
Total Forest Products	$	253	$	255	$	1,237	$	1,040
Unit sales
Corrugated Packaging
Corrugated packaging, thousands of tons		789		842		3,371		3,437
Linerboard, thousands of tons		133		53		310		264
Total, thousands of tons		922		895		3,681		3,701
Forest Products
Pine lumber, mbf		188		193		829		777
Gypsum wallboard, msf (a)		437		216		1,990		859
Particleboard, msf		118		153		609		640
Medium density fiberboard, msf (a)		27		37		142		202
Fiberboard, msf		65		102		362		431

(a) Comparisons of revenue and unit sales of gypsum wallboard are affected by the January 2006 acquisition of our partner’s interest in Standard Gypsum L.P. Comparisons for MDF are affected by the sale of the Pembroke facility in second quarter 2005.

Supplemental Financial Information:

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

	Fourth Quarter				Year to Date
	2006		2005		2006		2005
Cash Balance (at qtr. end)	$	38	$	13
Total Debt (at qtr. end)	$	1,647	$	1,611
Capital Expenditures (including reforestation)	$	66	$	67	$	208	$	222

8

A summary of projects in the entitlement process^(a) at year-end 2006 follows:

			Project
Project		County	Acres(b)
California
	Hidden Creek Estates	Los Angeles		700
	Terrace at Hidden Hills	Los Angeles		30
Georgia
	Bay Springs	Carroll		440
	Birch House Farms	Bartow		140
	Dry Pond	Cherokee		950
	Four Seasons	Coweta		750
	Friendship Road	Cherokee		110
	Garland Mountain	Cherokee		350
	Gold Creek	Dawson		1,090
	Grove Park	Coweta		160
	Happy Valley Farm	Coweta		750
	Jackson Park	Jackson		690
	Lithia Springs	Haralson		260
	Mill Creek	Coweta		770
	Overlook	Cherokee		510
	Pickens School	Pickens		420
	Wolf Creek	Carroll		12,180
	Yellow Creek	Cherokee		1,060
Texas
	Lake Houston	Harris/Liberty		3,630
	Entrada(c)	Travis		240
	Woodlake Village(c)	Montgomery		620
	Total			25,850

(a)	A project is deemed to be in the entitlement process when customary steps necessary for the preparation and submittal of an application, like conducting pre-application meetings or similar discussions with governmental officials, have commenced, or an application has been filed. Projects listed may have significant steps remaining, and there is no assurance that entitlements ultimately will be received.
(b)	Project acres are approximate. The actual number of acres entitled may vary.
(c)	We own a 50% interest in these projects.

9

A summary of activity within our entitled,^(a) developed and under development projects at year-end 2006 follows:

					Residential Lots				Commercial Acres (c)
					Lots Sold				Acres Sold
		Interest			Since		Lots		Since		Acres
Project	County	Owned(b)			Inception		Remaining		Inception		Remaining
Projects we own
Colorado
Buffalo Highlands	Weld		100	%		—		645		—		—
Johnstown Farms	Weld		100	%		115		699		—		—
Pinery West	Douglas		100	%		—		—		—		134
Stonebraker	Weld		100	%		—		600		—		—
Texas
Caruth Lakes	Rockwell		100	%		245		629		—		—
Cibolo Canyons	Bexar		100	%		335		1,414		64		81
Harbor Lakes	Hood		100	%		177		401		—		13
Hunter’s Crossing	Bastrop		100	%		229		348		19		95
Katy Freeway	Harris		100	%		—		—		—		40
La Conterra	Williamson		100	%		—		509		—		60
Maxwell Creek	Collin		100	%		539		484		—		—
Oakcreek Estates	Comal		100	%		—		630		—		—
The Colony	Bastrop		100	%		335		1,090		22		50
The Gables at North Hill	Collin		100	%		182		100		—		—
The Preserve at Pecan Creek	Denton		100	%		41		778		—		9
The Ridge at Ribelin Ranch	Travis		100	%		—		—		126		77
Other Texas Projects (8)	Various		100	%		2,539		132		121		46
Georgia
Other projects (5)	Various		100	%		—		3,428		—		161
Missouri, Tennessee and Utah
Other Projects (4)	Various		100	%		910		294		—		—
						5,647		12,181		352		766
Projects in entities we consolidate
Texas
City Park	Harris		75	%		605		696		36		129
Lantana (d)	Denton		55	%		167		2,183		—		—
Other Texas Projects (6)	Various	Various				261		320		2		63
						1,033		3,199		38		192
Total owned and consolidated						6,680		15,380		390		958
Projects in ventures that we account for using the equity method
Georgia
Seven Hills	Paulding		50	%		561		516		26		—
The Georgian	Paulding		38	%		282		1,104		—		—
Other Georgia projects (5)	Various	Various				1,840		252		—		—
Texas
Bar C Ranch	Tarrant		50	%		143		1,038		—		—
Fannin Farms West	Tarrant		50	%		224		219		—		—
Lantana (d)	Denton	Various				1,639		209		1		79
Long Meadow Farms	Fort Bend		19	%		457		2,255		—		134
Southern Trails	Brazoria		40	%		181		878		—		—
Stonewall Estates	Bexar		25	%		30		360		—		—
Summer Creek Ranch	Tarrant		50	%		780		1,708		—		374
Summer Lakes	Fort Bend		50	%		294		850		42		9
Village Park	Collin		50	%		311		258		—		5
Waterford Park	Fort Bend		50	%		—		493		—		37
Other Texas projects (6)	Various	Various				807		304		—		37
Florida
Other projects (3)	Various	Various				473		372		—		—
Total in ventures						8,022		10,816		69		675
Combined Total						14,702		26,196		459		1,633

(a)	A project is deemed entitled when all major discretionary land-use approvals have been received. Some projects may require additional permits for development.
(b)	Interest owned reflects our equity interest in the project, whether owned directly or indirectly. There are some projects that have multiple ownership structures within them. Accordingly, portions of these projects may appear as owned, consolidated and/or accounted for on the equity method.
(c)	Commercial acres are net developable acres, and may be fewer than the gross acres available in the project.
(d)	The Lantana project consists of a series of 19 partnerships in which our interests range from 25% to 55%. We account for eight of these partnerships in which our interests range from 25% to 50% using the equity method and we consolidate the remaining partnerships.

10

EX-99.2

EXHIBIT 99.2

Fourth Quarter and Full Year 2006 Results February 5, 2007

2 This presentation contains "forward-looking statements" within the meaning of the federal securities laws. These statements reflect management's current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that might cause such differences 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; fluctuations in costs and expenses including the costs of raw materials, purchased energy, and freight; demand for new housing; accuracy of accounting assumptions related to pension and postretirement costs, impaired assets, allowance for credit losses, and income taxes; competitive actions by other companies; changes in laws or regulations and actions or restrictions of regulatory agencies; our ability to execute certain strategic and business improvement initiatives; and other factors, many of which are beyond our control. This presentation includes non-GAAP financial measures. The required reconciliations to GAAP financial measures are included on our website, www.templeinland.com.

Fourth Quarter Results Net Income $ 104 $ 24 $ 96 Diluted EPS $ 0.97 $ 0.21 $ 0.87 Average Diluted Shares 107.8 113.0 110.3 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 TIN 3 Repurchased 2.2 million shares in 4th qtr. 2006 Diluted shares outstanding at year end 2006 were 106.7 million

Fourth Quarter Results (cont'd) Net income per dil. share $ 0.97 $ 0.21 $ 0.87 Special items (0.24) 0.09 0.06 Net income per dil. share $ 0.73 $ 0.30 $ 0.93 excluding special items * 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 4 4th qtr. 2006 net after-tax special gain of $26 million, or $0.24 per share, principally related to the Softwood Lumber Agreement settlement * See our website for information concerning non-GAAP financial measures

Fourth Quarter Segment Results Operating Income (millions) Corrugated Packaging $ 74 $ (3) $ 74 Forest Products 46 52 83 Real Estate 12 16 15 Financial Services 53 51 58 $185 $116 $230 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 5 Note: We have recast prior period segment operating income to reflect the classification of the new business segment, real estate.

Corrugated Packaging 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 $74 $ (3) $ 74 Operating income (millions) 6 Price - 4th qtr. 2006 avg. box price up $96/ton vs. 4th qtr. 2005 avg. - 4th qtr. 2006 avg. box price up $13/ton vs. 3rd qtr. 2006 avg.

Corrugated Packaging (Cont'd) TIN Box Volumes 7 Volume Per Workday Basis 4th qtr. 2006 vs. 4th qtr. 2005 (6%) 4th qtr. 2006 vs. 3rd qtr. 2006 Flat Sale of Performance Sheets (August 25, 2006) impacted quarterly shipments negatively by 30,000 tons Excluding Performance Sheets, 4th qtr. 2006 box shipments on a volume per workday basis were down 3% compared with 4th qtr. 2005, but up 2% compared with 3rd qtr. 2006

Corrugated Packaging (Cont'd) Freight Freight costs up $2 million vs. 4th qtr. 2005 and 3rd qtr. 2006 Energy Energy costs down $16 million vs. 4th qtr. 2005, but up $3 million vs. 3rd qtr. 2006 8

Corrugated Packaging (Cont'd) Recycled Fiber - - Recycled fiber costs up $9/ton vs. 4th qtr. 2005, but down $18/ton vs. 3rd qtr. 2006 1st qtr. 2007 Scheduled Maintenance Outage - - Rome, GA linerboard mill (January 2007) - - Mill production negatively impacted 27,000 tons in 1st qtr. 2007 compared with 4th qtr. 2006 California / Mexico Weather - - 7,000 - 10,000 tons negative impact on box shipments in 1st qtr. 2007 9

Forest Products 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 $46 $ 52 $ 83 Operating income (millions) Lumber - - Average price down $98/mbf vs. 4th qtr. 2005 and down $18/mbf vs. 3rd qtr. 2006 - - Volume down 3% vs. 4th qtr. 2005, and down 9% vs. 3rd qtr. 2006 - - Current prices up $6/mbf vs. 4th qtr. 2006 avg. price 10 Note: We have recast prior period segment operating income to reflect the classification of the new business segment, real estate.

Forest Products (Cont'd) Gypsum - - Average price up $23/msf vs. 4th qtr. 2005, but down $20/msf vs. 3rd qtr. 2006 - - Volume down 12% vs. 4th qtr. 2005 (adjusted for the acquisition of Standard Gypsum in January 2006) and down 4% vs. 3rd qtr. 2006 - - Current gypsum prices down $13/msf vs. 4th qtr. 2006 avg. price 11 Particleboard - - Average price up $86/msf vs. 4th qtr. 2005, but down $6/msf vs. 3rd qtr. 2006 - - Volume down 23% vs. 4th qtr. 2005, and down 27% vs. 3rd qtr. 2006

Real Estate 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 $12 $ 16 $ 15 Operating income (millions) 12 Entitlement Activity During 4th qtr. 2006, zoning approved for 2,001 acres of high-value land around Atlanta, GA. Project Acres Towne West 971 Fox Hall 224 Legion Lake 215 High Grove 591 Total 2,001

Real Estate (Cont'd) High-Value Land* Avg. price per acre - $9,500 Acres sold - 1,150 $10 million gain on sale of high-value land Residential* Sold 715 lots Average revenue per lot - $49,300 Average gross profit per lot - $16,500 Commercial* Sold 57 acres Average price per acre - $123,400 $3 million gain on sale of commercial land 13 * Includes Joint Venture activity

Real Estate Pipeline - YE 2006 (Acres) 14 Note: Estimated acres and lots may vary

Financial Services 4th Qtr 4th Qtr 3rd Qtr 2006 2005 2006 $ 53 $ 51 $ 58 Operating income (millions) 15 4th qtr. 2006 earnings up compared with 4th qtr. 2005 due to stronger credit conditions and lower costs 4th qtr. 2006 earnings down compared with 3rd qtr. 2006 due to lower noninterest income Note: We have recast prior period segment operating income to reflect the classification of the new business segment, real estate.

Temple-Inland 2006 Full Year Results Net income per dil. share $ 4.22 $ 1.54 Special items (gain) (0.90) 0.36 Net income per dil. share $ 3.32 $ 1.90 75% excluding special items % 2006 2005 Increase 16 * See our website for information concerning non-GAAP financial measures

Temple-Inland 2006 Full Year Segment Results Operating Income (millions) Corrugated Packaging $255 $120 Forest Products 312 219 Real Estate 62 44 Financial Services 222 201 $851 $584 2006 2005 17

Comments 18 Pension Expense 2006 pension expense $47 million 2007 pension expense estimate $36 million Capital Expenditures (including reforestation) 2006 capital expenditures $208 million 2007 capital expenditures estimate $225 million

Temple-Inland 2006 Results 15.9% ROI, continue to lead the industry $3.32 EPS (before special items), all-time record and 75% Y-O-Y increase Returned 10% of average market capitalization to shareholders through dividends and share repurchases Dividend increased 11% to $1.00 per share 7.9 million shares repurchased Corrugated Packaging Record mill production and box plant asset utilization Forest Products Record operating income - $312 million (3rd consecutive year) Real Estate Operating income of $62 million Entitled 2,181 acres of high-value land Transferred 4,890 acres of high-value land into "in entitlement process" Financial Services Record operating income - $222 million (3rd consecutive year) 19 * See our website for information concerning non-GAAP financial measures

2007 February 2007, Temple-Inland Board of Directors approved the following: Dividend increased 12% to $1.12 per share, fifth consecutive annual increase Authorized additional 5 million share repurchase program 20

Total Shareholder Returns 21 1 year 2 year 3 year 5 year Temple-Inland 7.8 61.2 75.2 106.5 Peer Median 1.6 -14.9 -25.3 -4.8 S&P 500 13.9 25.9 30.2 37.3 Temple-Inland's Strategy, Execution and Focus on ROI Continue To Drive Shareholder Value Note: Total return includes share price appreciation plus dividends. Peer index includes ABY, BOW, CSAR, DTC, IP, LFB, MWV, SSCC, PKG, WY. Prices as of January 26,2007.