The Timber Company Reports First Quarter Earnings

Apr 19, 2001, 01:00 ET from The Timber Company

    ATLANTA, April 19 /PRNewswire/ -- The Timber Company (NYSE:   TGP) today
 reported net income of $22 million (27 cents diluted earnings per share) for
 the first quarter 2001, compared with $40 million (49 cents diluted earnings
 per share) for first quarter 2000.
     Operating profits for first quarter 2001 were $47 million versus first
 quarter 2000 operating profits of $75 million.  Sales during first quarter
 2001 were down 11 percent to $91 million compared with $102 million in first
 quarter 2000.
     "Our first quarter results reflected the weak conditions in the forest
 products industry during the first quarter," said Donald L. Glass, president
 and chief executive officer of The Timber Company.  "More recently, however,
 we have seen some encouraging signs of improvement in solid wood products
 markets which should lead to stronger log demand and pricing as the year
 progresses.
     "First quarter comparisons were affected primarily by two factors.  First,
 sales were lower, most notably because of widespread downtime and log
 inventory reductions by our customers, including Georgia-Pacific Group, in
 response to weak demand for solid wood and paper products.  While our volumes
 and prices were lower than a year ago, we successfully kept first quarter 2001
 prices for sawtimber and pulpwood essentially flat with fourth quarter 2000
 levels, despite sharply lower mill operating rates.
     "Second, gains from our ongoing tactical land sales and exchanges were
 $4 million in first quarter 2001, down from $10 million during first quarter
 2000.  Our land sales gains can vary significantly from quarter to quarter
 because of the varied timing of transaction closings.  While it is difficult
 to estimate quarterly land sale gains, our target is to generate income in the
 $35-$60 million range this year.
     "Current log inventory levels at mills in our operating basins are well
 below normal," Glass said.  "This bodes well for a stronger second half as we
 view the first quarter as the low point of the year.
     "As a result of weak demand in the first quarter, we again strategically
 deferred some harvests until later in the year.  Looking ahead, we will stay
 disciplined in managing our harvest levels during difficult market conditions
 to ensure we maximize the value of our forests.  We are positioned to take
 full advantage of changing local market conditions and are focused on
 preserving our long-term timber values," Glass concluded.
     Headquartered at Atlanta, The Timber Company (www.thetimbercompany.com )
 is a separate operating group of Georgia-Pacific Corp. (NYSE:   GP) and its
 performance is reflected in one of the corporation's two common stocks.  The
 Timber Company manages 4.7 million acres of timberland in the United States
 and sells timber and wood fiber to industrial wood users, including Georgia-
 Pacific Group.
     Also today, Georgia-Pacific Corp. provided consolidated results for The
 Timber Company and Georgia-Pacific Group for first quarter 2001.  The
 corporation recorded a consolidated net loss of $115 million for the first
 quarter 2001, compared with consolidated net income of $234 million for the
 three months ended April 1, 2000.
     Certain statements contained in this release, including statements
 regarding sawtimber and pulpwood demand and pricing, are forward-looking
 statements (as such term is defined under the Private Securities Litigation
 Reform Act of 1995) based on current expectations.  The accuracy of such
 statements is subject to a number of risks, uncertainties and assumptions
 including, but not limited to, the effect of general economic conditions on
 the demand for timber, particularly the strength of the pulp and paper
 markets; the effect of any material changes in the available supply of timber,
 including the levels of harvests from public lands, the effect of government,
 legislative and environmental restrictions on the harvesting of private
 timberlands; and other factors listed in Georgia-Pacific Corp.'s Securities
 and Exchange Commission filings, including its reports on Form 10-K for the
 year Dec. 30, 2000.
     A tabulation of results for The Timber Company follows:
 
                               THE TIMBER COMPANY
                              Operating Highlights
                    (In millions, except per share amounts)
                                  (unaudited)
 
                                                       First           First
                                                      Quarter         Quarter
                                                        2001            2000
 
 
     NET SALES
     Timber - Georgia-Pacific Group                       $46            $64
     Timber - Third parties
       Delivered                                           13              8
       Stumpage                                            25             28
     Other                                                  7              2
     Total net sales                                      $91           $102
     Operating profits                                    $47            $75
     Interest expense                                    (11)           (10)
     Provision for income taxes                          (14)           (25)
     Net income                                           $22            $40
 
     Basic and diluted per share:
     Net income per share                               $0.27          $0.49
 
     Average number of shares outstanding:
     Basic                                               80.4           82.3
     Diluted                                             81.2           82.5
 
 

SOURCE The Timber Company
    ATLANTA, April 19 /PRNewswire/ -- The Timber Company (NYSE:   TGP) today
 reported net income of $22 million (27 cents diluted earnings per share) for
 the first quarter 2001, compared with $40 million (49 cents diluted earnings
 per share) for first quarter 2000.
     Operating profits for first quarter 2001 were $47 million versus first
 quarter 2000 operating profits of $75 million.  Sales during first quarter
 2001 were down 11 percent to $91 million compared with $102 million in first
 quarter 2000.
     "Our first quarter results reflected the weak conditions in the forest
 products industry during the first quarter," said Donald L. Glass, president
 and chief executive officer of The Timber Company.  "More recently, however,
 we have seen some encouraging signs of improvement in solid wood products
 markets which should lead to stronger log demand and pricing as the year
 progresses.
     "First quarter comparisons were affected primarily by two factors.  First,
 sales were lower, most notably because of widespread downtime and log
 inventory reductions by our customers, including Georgia-Pacific Group, in
 response to weak demand for solid wood and paper products.  While our volumes
 and prices were lower than a year ago, we successfully kept first quarter 2001
 prices for sawtimber and pulpwood essentially flat with fourth quarter 2000
 levels, despite sharply lower mill operating rates.
     "Second, gains from our ongoing tactical land sales and exchanges were
 $4 million in first quarter 2001, down from $10 million during first quarter
 2000.  Our land sales gains can vary significantly from quarter to quarter
 because of the varied timing of transaction closings.  While it is difficult
 to estimate quarterly land sale gains, our target is to generate income in the
 $35-$60 million range this year.
     "Current log inventory levels at mills in our operating basins are well
 below normal," Glass said.  "This bodes well for a stronger second half as we
 view the first quarter as the low point of the year.
     "As a result of weak demand in the first quarter, we again strategically
 deferred some harvests until later in the year.  Looking ahead, we will stay
 disciplined in managing our harvest levels during difficult market conditions
 to ensure we maximize the value of our forests.  We are positioned to take
 full advantage of changing local market conditions and are focused on
 preserving our long-term timber values," Glass concluded.
     Headquartered at Atlanta, The Timber Company (www.thetimbercompany.com )
 is a separate operating group of Georgia-Pacific Corp. (NYSE:   GP) and its
 performance is reflected in one of the corporation's two common stocks.  The
 Timber Company manages 4.7 million acres of timberland in the United States
 and sells timber and wood fiber to industrial wood users, including Georgia-
 Pacific Group.
     Also today, Georgia-Pacific Corp. provided consolidated results for The
 Timber Company and Georgia-Pacific Group for first quarter 2001.  The
 corporation recorded a consolidated net loss of $115 million for the first
 quarter 2001, compared with consolidated net income of $234 million for the
 three months ended April 1, 2000.
     Certain statements contained in this release, including statements
 regarding sawtimber and pulpwood demand and pricing, are forward-looking
 statements (as such term is defined under the Private Securities Litigation
 Reform Act of 1995) based on current expectations.  The accuracy of such
 statements is subject to a number of risks, uncertainties and assumptions
 including, but not limited to, the effect of general economic conditions on
 the demand for timber, particularly the strength of the pulp and paper
 markets; the effect of any material changes in the available supply of timber,
 including the levels of harvests from public lands, the effect of government,
 legislative and environmental restrictions on the harvesting of private
 timberlands; and other factors listed in Georgia-Pacific Corp.'s Securities
 and Exchange Commission filings, including its reports on Form 10-K for the
 year Dec. 30, 2000.
     A tabulation of results for The Timber Company follows:
 
                               THE TIMBER COMPANY
                              Operating Highlights
                    (In millions, except per share amounts)
                                  (unaudited)
 
                                                       First           First
                                                      Quarter         Quarter
                                                        2001            2000
 
 
     NET SALES
     Timber - Georgia-Pacific Group                       $46            $64
     Timber - Third parties
       Delivered                                           13              8
       Stumpage                                            25             28
     Other                                                  7              2
     Total net sales                                      $91           $102
     Operating profits                                    $47            $75
     Interest expense                                    (11)           (10)
     Provision for income taxes                          (14)           (25)
     Net income                                           $22            $40
 
     Basic and diluted per share:
     Net income per share                               $0.27          $0.49
 
     Average number of shares outstanding:
     Basic                                               80.4           82.3
     Diluted                                             81.2           82.5
 
 SOURCE  The Timber Company

RELATED LINKS

http://www.gp.com