SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended
March 31, 1998
--------------
Commission File Number 1-12545
-------
Willamette Industries, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
State of Oregon 93-0312940
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1300 S.W. Fifth Avenue, Suite 3800, Portland, Oregon 97201
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (503) 227-5581
------------------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
---- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, 50 cent par value: 111,390,695 at March 31, 1998.
----------------------------------
<PAGE>
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED BALANCE SHEETS PART I
(amounts, except per share amounts, in thousands) ITEM 1
March 31, December 31,
ASSETS 1998 1997
------ --------- -----------
Current assets:
Cash $ 30,241 27,600
Accounts receivable, less allowance
for doubtful accounts of $4,577 and $4,571 329,209 307,002
Inventories (Note 2) 405,550 394,595
Prepaid expenses and timber deposits 48,892 36,991
Total current assets 813,892 766,188
Timber, timberlands and related facilities, net 1,386,061 1,396,946
Property, plant and equipment, at cost less
accumulated depreciation of $2,099,233 and $2,018,206 2,609,892 2,566,291
Other assets 84,996 81,630
------ ------
$ 4,894,841 4,811,055
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current installments on long-term debt (Note 3) $ 121,558 17,897
Notes payable 52,000 64,000
Accounts payable, includes book overdrafts
of $45,213 and $49,421 187,148 216,914
Accrued expenses 165,218 155,453
Accrued income taxes 7,927 3,831
Total current liabilities 533,851 458,095
Deferred income taxes 401,558 402,896
Other liabilities 40,038 39,583
Long-term debt, net of current installments (Note 3) 1,919,563 1,916,001
Stockholders' equity:
Preferred stock, cumulative, of $.50 par value.
Authorized 5,000 shares. - -
Common stock, $.50 par value. Authorized 150,000
shares; issued 111,391 and 111,350 shares. 55,695 55,675
Capital surplus 295,826 294,760
Retained earnings 1,648,310 1,644,045
--------- ---------
Total stockholders' equity 1,999,831 1,994,480
--------- ---------
$ 4,894,841 4,811,055
========= =========
2
<PAGE>
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED STATEMENTS OF EARNINGS PART I
(amounts, except per share amounts, in thousands) ITEM 1
Three Months Ended
March 31,
------------------------------
1998 1997
------------ ---------------
Net sales $ 900,075 855,192
Cost of sales 775,823 745,896
----------- ----------
Gross profit 124,252 109,296
Selling and administrative expenses 62,741 59,633
----------- ----------
Operating earnings 61,511 49,663
Other income 2,773 686
----------- ----------
64,284 50,349
Interest expense 30,572 29,143
----------- ----------
Earnings before provision for income taxes 33,712 21,206
Provision for income taxes 11,631 7,889
----------- ----------
Net earnings $ 22,081 13,317
=========== ==========
Per share information: (1)
Basic earnings per share $ 0.20 0.12
============ ==========
Diluted earnings per share $ 0.20 0.12
============ ==========
Dividends $ 0.16 0.16
============ ==========
Weighted average shares outstanding:
Basic 111,362 110,728
======= =======
Diluted (2) 111,915 111,298
======= =======
(1) Per share earnings are based upon the
weighted average number of shares outstanding.
(2) Weighted average shares outstanding (diluted) are
calculated using the treasury stock method assuming all
stock options are exercised.
3
<PAGE>
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES FORM 10-Q
CONSOLIDATED STATEMENTS OF CASH FLOWS PART I
(dollar amounts in thousands) ITEM 1
Three Months Ended
March 31,
------------------------------
1998 1997
------------ -------------
Cash flows from operating activities:
Net earnings $ 22,081 13,317
Adjustments to reconcile net earnings
to net cash from operating activities:
Depreciation 68,764 65,500
Cost of fee timber harvested 12,195 12,459
Other amortization 4,836 4,392
Increase in deferred income taxes 5,816 4,767
Changes in working capital items:
Accounts receivable (20,471) (11,013)
Inventories (9,098) (4,578)
Prepaid expenses and timber deposits (11,770) 1,773
Accounts payable and accrued expenses (27,122) (23,563)
Accrued income taxes 4,096 1,894
-------- ----------
Net cash from operating activities 49,327 64,948
======== ==========
Cash flows from investing activities:
Proceeds from sale of equipment 64 -
Expenditures for property, plant and equipment (93,770) (90,603)
Expenditures for timber and timberlands (2,393) (1,817)
Expenditures for roads and reforestation (3,101) (3,261)
Assets held for sale - 59,526
Other (20,082) 1,622
-------- ----------
Net cash from investing activities (119,282) (34,533)
======== ==========
Cash flows from financing activities:
Net change in operating lines of credit 90,050 51,094
Debt borrowing - 210
Proceeds from sale of common stock 1,072 552
Cash dividends paid (17,816) (17,713)
Payment on debt (710) (51,830)
-------- ----------
Net cash from financing activities 72,596 (17,687)
======== ==========
Net change in cash 2,641 12,728
Cash at beginning of period 27,600 22,222
-------- ----------
Cash at end of period $ 30,241 34,950
======== ==========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amount capitalized) $ 39,248 34,963
======== ==========
Income taxes $ 1,718 1,228
======== ==========
4
<PAGE>
FORM 10-Q
PART I
ITEM 1
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998
Note 1 The information furnished in this report reflects all adjustments which
are, in the opinion of management, necessary to a fair statement of the
results for the interim periods presented.
Note 2 The components of inventories are as follows (thousands of dollars):
March 31, December 31,
1998 1997
--------- ---------
Finished product $ 137,778 118,046
Work in progress 6,571 7,404
Raw material 178,491 187,912
Supplies 82,710 81,233
--------- --------
$ 405,550 394,595
========= ========
Note 3 In January 1998, the Company issued $200.0 million in debentures -
$100.0 million at 6.45% due 2005 and $100.0 million at 7.0% due 2018.
The proceeds were used to replace $144.5 million in notes maturing in
1998 and reduce other bank borrowings.
Note 4 Certain items previously reported have been reclassified to conform
with the 1998 presentation.
Other notes have been omitted pursuant to Rule 10-01(a)(5) of
Regulation S-X.
5
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FORM 10-Q
PART I
ITEM 2
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
March 31, 1998
The Company's two basic businesses, paper products and building materials, are
affected by changes in general economic conditions. Paper product sales and
earnings tend to follow the general economy. Building materials activity is
closely related to new housing starts and to the availability and terms of
financing for construction. Both industry segments use wood fiber as the basic
raw material. The cost of wood fiber is sensitive to various supply and demand
factors, including environmental issues affecting supply.
SEGMENT INFORMATION
-------------------
Three Months Ended March 31,
1998 1997
---------- -----------
Sales:
Paper Group $ 606,424 536,276
Building Materials Group 293,651 318,916
--------- -----------
$ 900,075 855,192
========== ===========
Operating Earnings:
Paper Group $ 59,418 32,110
Building Materials Group 13,549 27,487
Corporate (11,456) (9,934)
--------- -----------
$ 61,511 49,663
========== ===========
6
<PAGE>
RESULTS OF OPERATIONS
---------------------
1st Quarter 1998 vs. 1st Quarter 1997
-------------------------------------
Consolidated net sales increased 5.2% in the first quarter of 1998 compared with
the first quarter of 1997, as increases in paper product sales outpaced
decreases in building materials sales. Earnings positively reflected the
climbing sales as consolidated operating earnings increased 23.9% over the prior
year.
Total paper product sales increased 13.1% in the first quarter of 1998 over 1997
due to a blend of price and volume increases. Sales prices increased in all
product lines, except hardwood market pulp which slightly decreased. Unbleached
products showed corrugated container prices increasing 6.4% and grocery bag
prices remaining stable compared to the first quarter of 1997. Prices were also
up for the bleached product lines as prices increased 2.0% for continuous forms
and 13.2% for cut sheets.
In addition to increased prices, unit shipments increased in the first quarter
of 1998 over the first quarter of 1997. For unbleached products, unit shipments
of corrugated containers were up 11.0% over the prior year, while grocery bag
volume declined by 8.6%. The corrugated container increase was primarily due to
the 1997 addition of our box plant in Plant City, Florida and our sheet plant in
Portland, Oregon, both of which came on line in the first half of 1997. Unit
shipments for bleached products showed increases of 8.7% for cut sheets and 9.3%
for hardwood market pulp, while continuous forms decreased by 10.8%. The
increased cut sheet volume is the result of building internal converting
capacity in preparation for the new Kentucky paper machine,
7
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scheduled to commence operations late in the second quarter. Our new
Brownsville, Tennessee cut sheet plant came on line in February 1998.
As a result of increases in prices and volume, paper group operating earnings
increased 85.0% in the first quarter of 1998 compared to the prior period.
Partially offsetting the favorable price variance was a 6.5% increase in old
corrugated container (OCC) costs and a 10.6% increase in chip costs from the
first quarter of 1997.
Building materials sales price decreases exceeded unit shipment volume
increases, resulting in a 7.9% sales decrease and an operating earnings decrease
of 50.7% in the first quarter of 1998. While plywood prices increased 1.2% over
1997 and oriented strand board ("OSB") prices increased 19.9%, showing strength
for the fourth consecutive quarter, other product lines experienced price
declines over the first quarter of 1997. Lumber prices decreased 15.7%,
particleboard 7.1%, medium density fiberboard ("MDF") 6.8% and export log prices
decreased 28.4% from the first quarter of 1997. The difficulties in the
economies of the Southwest Pacific and continued pressure from supply and demand
imbalances have kept prices depressed for all these products since late in the
second quarter of 1997.
While the soft markets have put downward pressure on prices, unit shipments have
provided some relief. Lumber unit shipments increased 10.7% over the first
quarter of 1997 as gains were realized from capital project completions.
Structural panels and composite board showed mixed results as plywood unit
shipments decreased 10.0% and OSB decreased 13.9%, while particleboard increased
2.3% and MDF increased 13.0%. The decrease in plywood unit
8
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shipments was primarily related to a plant closure which occurred in July 1997
at our Taylor, Louisiana plant. The MDF increase is a result of expansion from
capital projects and the acquisition of a new facility in Morcenx, France in
March 1998.
Selling and administrative expenses increased $3.1 million or 5.2% in the first
quarter mostly due to expansion of Company operations. The ratio of selling and
administrative expenses to net sales remained stable at 7.0% for the first
quarter of 1998 compared to the same period in 1997.
Interest expense was $30.6 million in the first quarter of 1998 compared with
$29.1 million in the prior year. Interest expense increased due to increased
outstanding debt for the three months ended March 31, 1998, and an increase in
the Company's effective interest rate on average outstanding debt from 6.98% for
the first quarter of 1997 to 7.04% for the same period in 1998. Capitalized
interest increased from $3.5 million in the first quarter of 1997 to $5.6
million in 1998.
9
<PAGE>
Financial Condition as of March 31, 1998
----------------------------------------
For the first three months of 1998, cash flows from operating activities were
$49.3 million, representing a decrease of 24.1% from the first quarter of 1997.
The decrease was primarily attributable to changes in working capital items,
which more than offset increased earnings. Net working capital decreased to
$280.0 million at March 31, 1998 compared to $308.1 at December 31, 1997. The
total debt to capital ratio slightly increased to 51.1% at March 31, 1998 from
50.0% at December 31, 1997.
The Company believes it has the resources available to meet its short-term and
long-term liquidity requirements. Resources include internally generated funds,
short-term borrowing arrangements, the $300.0 million balance of a shelf
registration statement filed in August 1997 covering potential issuances of debt
and equity securities, and the unused portion of the revolving loan available
under a Credit Agreement.
On April 21, 1998, the Board of Directors of the Company voted to pay a
quarterly cash dividend of $0.16 share in the second quarter of 1998; however,
there is no assurance as to future dividends as they are dependent upon
earnings, capital requirements and financial condition.
In January 1998, the Company issued $200.0 million in debentures - $100.0
million at 6.45% due 2005 and $100.0 million at 7.0% due 2018. The proceeds were
used to replace $144.5 million in notes maturing in 1998 and reduce other bank
borrowings.
10
<PAGE>
Forward-looking statements
--------------------------
Statements contained in this report that are not historical in nature, including
without limitation the discussion of the adequacy of the Company's liquidity
resources and the impact of environmental regulations, are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to risks and uncertainties that may
cause actual future results to differ materially. Such risks and uncertainties
with respect to the Company include the effect of general economic conditions;
the level of new housing starts and remodeling activity; the availability and
terms of financing for construction; competitive factors, including pricing
pressures; the cost and availability of wood fiber; the effect of natural
disasters on the Company's timberlands; construction delays; risk of
non-performance by third parties; and the impact of environmental regulations
and the construction and other costs associated with complying with such
regulations. In view of these uncertainties, investors are cautioned not to
place undue reliance on such forward-looking statements. The Company disclaims
any obligation to publicly announce the results of any revisions to any
forward-looking statements contained herein to reflect future events or
developments.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
- ------------------------------------------------------------------
No disclosure required under this item.
11
<PAGE>
FORM 10-Q
PART II
OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
The annual meeting of the Company's shareholders was held April 21, 1998.
The following directors were elected at the annual meeting for terms of office
expiring in the indicated year by the vote indicated below:
Expiration Abstentions and
of Term For Withheld Broker Non-votes
------- ----------- -------- ----------------
Kenneth W.Hergenhan 2001 101,105,593 1,162,909 0
Robert M. Smelick 2001 101,108,308 1,160,194 0
Benjamin R. Whiteley 2001 101,096,877 1,171,625 0
The following individuals continue to serve as directors:
Expiration
of Term
-------
C. W. Knodell 1999
G. Joseph Prendergast 1999
William Swindells 1999
Gerard K. Drummond 2000
Paul N. McCracken 2000
Stuart J. Shelk, Jr. 2000
Samuel C. Wheeler 2000
Item 5. Other Information
- -------------------------
The registrant has received indications that it should expect to receive notice
of alleged violations of the Clean Air Act relating to its building products
operations. The United States Environmental Protection Agency (the "EPA") has
sent the registrant requests for information under Section 114 of the Clean Air
Act with questions concerning compliance with environmental regulations. The
registrant is one of several forest products companies to be reviewed under an
initiative of the EPA with respect to the wood products industry. Previous
investigations of other companies have resulted in notices of violations and it
can be anticipated that the registrant will similarly receive notice of
violations.
The EPA has requested information for a period covering 22 years and relating to
a variety of matters. The requests are focused on compliance with regulations
under the Prevention of Significant Deterioration Program under
12
<PAGE>
the Clean Air Act and relate to 19 of the registrant's plants, three of which
have been closed.
A number of the requests for information relate to matters which the registrant
believes have been resolved with state regulators, while others relate to
documentation or permitting for facilities which the registrant believes to be
in compliance with applicable regulations. The registrant intends to investigate
thoroughly any alleged violations and continue to work with regulatory agencies
to resolve any issues which may be raised.
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
--------
Exhibit No. Exhibit
----------- -------
12 Computation of
Ratio of Earnings
to Fixed Charges.
27.1 Financial Data Schedule for 1998
first quarter.
27.2 Amended and Restated Financial
Data Schedules for the year ended
December 31, 1995 and 1996 and quarters
ended March 31, June 30 and September
30, 1996.
27.3 Amended and Restated Financial
Data Schedules for the year ended
December 31, 1997 and the quarters
ended March 31, June 30 and September
30, 1997.
(b) Reports on Form 8-K
-------------------
One report on Form 8-K was filed during the quarter for which
this report was filed, as previously reported in the registrant's
1997 Form 10-K report.
13
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WILLAMETTE INDUSTRIES, INC.
By /s/ J. A. Parsons
----------------------------
J. A. Parsons
Executive Vice President
(Principal Financial Officer)
Date: April 23, 1998
14
Exhibit 12
WILLAMETTE INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLAR AMOUNTS IN THOUSANDS)
Three Months Ended
Year Ended December 31, March 31,
--------------------------------------- ------------------
1993 1994 1995 1996 1997 1997 1998
---- ---- ---- ---- ---- ---- -----
Fixed Charges:
Interest cost $ 79,194 80,807 77,237 103,338 136,929 32,635 36,201
One-third rent
expense 4,819 5,227 5,976 6,906 7,535 1,810 1,916
------- ------ ------ ------- ------- ------ ------
Total Fixed Charges $ 84,013 86,034 83,213 110,244 144,464 34,445 38,117
======== ====== ====== ======= ======= ====== ======
Add (Deduct):
Earnings before
income taxes $ 189,168 288,923 823,804 306,086 111,263 21,206 33,712
Interest capitalized (15,904) (9,294) (6,187) (10,534) (19,939) (3,492) (5,629)
------- ------ ------ ------- ------- ------ ------
Earnings for
Fixed Charges $ 257,277 365,663 900,830 405,796 235,788 52,159 66,200
======= ======= ======= ======= ======= ====== ======
Ratio of Earnings to
Fixed Charges 3.06 4.25 10.83 3.68 1.63 1.51 1.74
==== ==== ===== ==== ==== ==== ====
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE COMPANY'S CONSOLIDATED BALANCE SHEETS AND RELATED CONSOLIDATED
STATEMENTS OF EARNINGS FOR THE PERIOD ENDED March 31, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
Exhibit 27.1
WILLAMETTE INDUSTRIES, INC.
FINANCIAL DATA SCHEDULE
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 30,241
<SECURITIES> 0
<RECEIVABLES> 333,786
<ALLOWANCES> 4,577
<INVENTORY> 405,550
<CURRENT-ASSETS> 813,892
<PP&E> 6,095,186
<DEPRECIATION> 2,099,233
<TOTAL-ASSETS> 4,894,841
<CURRENT-LIABILITIES> 533,851
<BONDS> 1,919,563
0
0
<COMMON> 55,695
<OTHER-SE> 1,944,136
<TOTAL-LIABILITY-AND-EQUITY> 4,894,841
<SALES> 900,075
<TOTAL-REVENUES> 900,075
<CGS> 775,823
<TOTAL-COSTS> 775,823
<OTHER-EXPENSES> 59,968
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,572
<INCOME-PRETAX> 33,712
<INCOME-TAX> 11,631
<INCOME-CONTINUING> 22,081
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,081
<EPS-PRIMARY> .20
<EPS-DILUTED> .20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS RESTATED/AMENDED SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE COMPANY'S CONSOLIDATED BALANCE SHEETS AND RELATED
CONSOLIDATED STATEMENTS OF EARNINGS FOR THE YEARS ENDED DECEMBER 31,
1995 and 1996 AND THE QUARTERS ENDED MARCH 31, JUNE 30 AND SEPTEMBER
30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
Exhibit 27.2
WILLAMETTE INDUSTRIES, INC.
AMENDED AND RESTATED FINANCIAL DATA SCHEDULES
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS 3-MOS 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1996 DEC-31-1996 DEC-31-1996 DEC-31-1996
<PERIOD-END> DEC-31-1995 DEC-31-1996 MAR-31-1996 JUN-30-1996 SEP-30-1996
<CASH> 17,961 22,222 14,938 10,668 34,230
<SECURITIES> 0 0 29,987 42,975 26,996
<RECEIVABLES> 319,516 277,169 318,094 313,355 291,262
<ALLOWANCES> 5,446 4,460 5,557 5,444 6,228
<INVENTORY> 391,358 365,949 359,319 346,971 350,330
<CURRENT-ASSETS> 774,837 859,552 758,928 945,479 928,585
<PP&E> 4,068,124 5,542,576 4,219,281 5,200,034 5,291,194
<DEPRECIATION> 1,494,383 1,767,234 1,551,468 1,605,219 1,662,071
<TOTAL-ASSETS> 3,413,555 4,720,681 3,492,272 4,612,329 4,633,942
<CURRENT-LIABILITIES> 415,579 570,418 428,119 557,472 578,418
<BONDS> 790,210 1,766,917 793,160 1,747,595 1,716,638
0 0 0 0 0
0 0 0 0 0
<COMMON> 27,612 27,677 27,613 27,627 27,657
<OTHER-SE> 1,819,278 1,948,604 1,875,672 1,907,587 1,936,616
<TOTAL-LIABILITY-AND-EQUITY> 3,413,555 4,720,681 3,492,272 4,612,329 4,633,942
<SALES> 3,873,575 3,425,173 866,112 1,724,904 2,587,578
<TOTAL-REVENUES> 3,873,575 3,425,173 866,112 1,724,904 2,587,578
<CGS> 2,777,735 2,798,282 678,166 1,382,973 2,090,505
<TOTAL-COSTS> 2,777,735 2,798,282 678,166 1,382,973 2,090,505
<OTHER-EXPENSES> 200,986 228,001 54,946 109,617 165,436
<LOSS-PROVISION> 0 0 0 0 0
<INTEREST-EXPENSE> 71,050 92,804 14,086 35,192 64,615
<INCOME-PRETAX> 823,804 306,086 118,914 197,122 267,022
<INCOME-TAX> 309,000 114,000 45,544 75,498 102,269
<INCOME-CONTINUING> 514,804 192,086 73,370 121,624 164,753
<DISCONTINUED> 0 0 0 0 0
<EXTRAORDINARY> 0 0 0 0 0
<CHANGES> 0 0 0 0 0
<NET-INCOME> 514,804 192,086 73,370 121,624 164,753
<EPS-PRIMARY> 4.67 1.74 0.67 1.10 1.49
<EPS-DILUTED> 4.65 1.73 0.67 1.09 1.48
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS RESTATED/AMENDED SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE COMPANY'S CONSOLIDATED BALANCE SHEETS AND RELATED
CONSOLIDATED STATEMENTS OF EARNINGS FOR THE YEAR ENDED DECEMBER 31,
1997 AND THE QUARTERS ENDED MARCH 31, JUNE 30, AND SEPTEMBER 30,
1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
Exhibit 27.3
WILLAMETTE INDUSTRIES, INC.
AMENDED AND RESTATED FINANCIAL DATA SCHEDULE
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 DEC-31-1997 DEC-31-1997
<PERIOD-END> MAR-31-1997 JUN-30-1997 SEP-30-1997 DEC-31-1997
<CASH> 34,950 31,921 19,547 14,169
<SECURITIES> 0 11,924 8,722 13,431
<RECEIVABLES> 288,255 301,764 309,194 311,573
<ALLOWANCES> 4,533 4,718 4,907 4,571
<INVENTORY> 370,527 363,354 377,140 394,595
<CURRENT-ASSETS> 826,572 804,501 806,772 766,188
<PP&E> 5,618,248 5,740,338 5,854,609 5,981,443
<DEPRECIATION> 1,828,925 1,890,358 1,954,213 2,018,206
<TOTAL-ASSETS> 4,700,851 4,738,440 4,791,072 4,811,055
<CURRENT-LIABILITIES> 539,615 481,465 469,999 458,095
<BONDS> 1,775,525 1,859,052 1,908,904 1,916,001
0 0 0 0
0 0 0 0
<COMMON> 27,684 27,753 55,595 55,675
<OTHER-SE> 1,944,784 1,951,927 1,931,541 1,938,805
<TOTAL-LIABILITY-AND-EQUITY> 4,700,851 4,738,440 4,791,072 4,811,055
<SALES> 855,192 1,734,540 2,623,335 3,501,376
<TOTAL-REVENUES> 855,192 1,734,540 2,623,335 3,501,376
<CGS> 745,896 1,506,429 2,272,556 3,029,892
<TOTAL-COSTS> 745,896 1,506,429 2,272,556 3,029,892
<OTHER-EXPENSES> 58,947 120,070 180,104 243,231
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 29,143 58,572 88,248 116,990
<INCOME-PRETAX> 21,206 49,469 82,427 111,263
<INCOME-TAX> 7,889 18,402 30,663 38,300
<INCOME-CONTINUING> 13,317 31,067 51,764 72,963
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 13,317 31,067 51,764 72,963
<EPS-PRIMARY> 0.12 0.28 0.47 0.66
<EPS-DILUTED> 0.12 0.28 0.46 0.65
</TABLE>
