Earlier this month the company entered into an agreement to lease the Fortra Fiber-Cement L.L.C. venture's fiber-cement operation to James Hardie Building Products, Inc.
The paper group reported operating income of $57 million in the quarter compared with $29 million in third quarter 1999 and $56 million in second quarter 2000. Corrugated container prices were up 17% compared with the year ago quarter and up 3% compared with second quarter 2000. Shipments of corrugated containers were down approximately 3% compared with year ago third quarter and second quarter 2000 levels.
The cost of old corrugated containers was 15% lower in the third quarter compared with the year ago quarter and 35% lower than second quarter 2000. However, earnings were negatively impacted by downtime, start-up costs associated with the conversion of the Newport, Ind., containerboard mill and higher energy costs. Containerboard production was curtailed by approximately 85,000 tons in the quarter due to market, maintenance and operational factors.
The building products group reported operating income of $10 million in the quarter, compared with $53 million in third quarter 1999 and $28 million in second quarter 2000. The decline was primarily due to lower lumber and gypsum prices and reduced gypsum shipments. Average lumber prices in the quarter were down 22% compared with third quarter year ago levels and 9% from second quarter 2000. Gypsum volumes were lower than the year ago quarter and average gypsum prices were down 35% compared with third quarter 1999 and 22% compared with second quarter 2000 levels.
In announcing results, Kenneth Jastrow, II, chairman and CEO of Temple-Inland Inc., said ``Our third quarter results reflect the benefits from our diverse mix of businesses. Financial services had record operating income in the quarter, which helped mitigate the earnings decline in building products. Building product prices are anticipated to remain under pressure in the fourth quarter, however, financial services is on target to record another outstanding quarter. The paper group remains focused on profit enhancement initiatives and will continue to manage inventories to match demand.''
Explore the October 2000 Issue
Check out more from this issue and find your next story to read.
Latest from Recycling Today
- Summa Equity acquires majority stake of Bollegraaf
- PTR adds new inside sales account manager
- Cascade Engineering distributes free carts in Flint, Michigan
- CMRA selects venue for nonferrous recycling event
- Biffa adds C&D recycling firm to its portfolio
- Cliffs lines up funding for Canadian acquisition
- BIR joins plastics life cycle effort
- Black mass analysis in the sights of equipment maker