<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ........... TO ............
COMMISSION FILE NUMBER 1-6780
RAYONIER INC.
Incorporated in the State of North Carolina
I.R.S. Employer Identification Number 13-2607329
50 North Laura Street, Jacksonville, FL 32202
(Principal Executive Office)
Telephone Number: (904) 357-9100
Indicate by check mark whether the registrant (l) has filed all reports required
to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during
the preceding l2 months and (2) has been subject to such filing requirements for
the past 90 days.
YES (X) NO ( )
As of May 3, 2000, there were outstanding 27,357,440 Common Shares of the
Registrant.
<PAGE> 2
RAYONIER INC.
FORM 10-Q
MARCH 31, 2000
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item l. Financial Statements
Statements of Consolidated Income for the
Three Months Ended March 31, 2000 and 1999 1
Consolidated Balance Sheets as of March 31, 2000
and December 3l, 1999 2
Statements of Consolidated Cash Flows for the
Three Months Ended March 31, 2000 and 1999 3
Notes to Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 5
Item 3. Selected Operating Data 8
Selected Supplemental Financial Data 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
Signature 10
Exhibit Index 11
</TABLE>
i
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following unaudited financial statements reflect, in the opinion of Rayonier
Inc. and Subsidiaries (Rayonier or the Company), all adjustments (which include
only normal recurring adjustments) necessary for a fair presentation of the
results of operations, the financial position and the cash flows for the periods
presented. For a full description of accounting policies, please refer to the
Notes to Consolidated Financial Statements in the 1999 Annual Report on Form
l0-K.
RAYONIER INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE INFORMATION)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
-------- --------
<S> <C> <C>
SALES $289,155 $226,396
-------- --------
Costs and expenses
Cost of sales 226,140 188,681
Selling and general expenses 9,936 9,465
Other operating expense (income), net 1,573 (1,194)
-------- --------
237,649 196,952
-------- --------
OPERATING INCOME 51,506 29,444
Interest expense (22,790) (7,703)
Interest and miscellaneous income, net 167 713
Gains from sale of assets 23,147 -
-------- --------
Income before income taxes 52,030 22,454
Income tax expense (16,557) (7,324)
-------- --------
NET INCOME $ 35,473 $ 15,130
======== ========
EARNINGS PER COMMON SHARE
Basic $ 1.30 $ 0.54
======== ========
Diluted $ 1.27 $ 0.54
======== ========
</TABLE>
1
<PAGE> 4
RAYONIER INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ASSETS
March 31, December 31,
2000 1999
---------- ------------
<S> <C> <C>
CURRENT ASSETS
Cash and short-term investments $ 21,742 $ 12,265
Accounts receivable, less allowance for doubtful
accounts of $4,863 and $4,859 122,607 103,535
Inventories
Finished goods 56,715 52,984
Work in process 12,409 12,478
Raw materials 12,888 17,947
Manufacturing and maintenance supplies 23,343 21,670
---------- ----------
Total inventories 105,355 105,079
Timber purchase agreements 27,343 30,477
Other current assets 16,215 11,107
Deferred income taxes 8,609 9,143
---------- ----------
Total current assets 301,871 271,606
OTHER ASSETS 67,204 77,094
TIMBER PURCHASE AGREEMENTS 10,774 7,816
TIMBER, FORESTLANDS AND LOGGING ROADS,
NET OF DEPLETION AND AMORTIZATION 1,219,114 1,247,547
PROPERTY, PLANT AND EQUIPMENT, NET
Land, buildings, machinery and equipment 1,344,899 1,333,789
Less accumulated depreciation 678,462 657,625
---------- ----------
Total property, plant and equipment, net 666,437 676,164
---------- ----------
TOTAL ASSETS $2,265,400 $2,280,227
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 71,627 $ 74,035
Bank loans and current maturities 12,420 3,248
Accrued taxes 30,010 15,148
Accrued payroll and benefits 22,445 22,405
Accrued interest 25,987 11,160
Other current liabilities 43,195 48,895
Current reserves for dispositions and discontinued operations 19,492 18,980
---------- ----------
Total current liabilities 225,176 193,871
DEFERRED INCOME TAXES 126,243 123,458
LONG-TERM DEBT 1,062,930 1,132,930
NON-CURRENT RESERVES FOR DISPOSITIONS
AND DISCONTINUED OPERATIONS 146,307 149,551
OTHER NON-CURRENT LIABILITIES 28,465 27,517
SHAREHOLDERS' EQUITY
Common shares, 60,000,000 shares authorized,
27,361,696 and 27,407,094 shares issued and outstanding 58,273 60,518
Retained earnings 618,006 592,382
---------- ----------
676,279 652,900
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,265,400 $2,280,227
========== ==========
</TABLE>
2
<PAGE> 5
RAYONIER INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 35,473 $ 15,130
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, depletion and amortization 37,434 26,696
Deferred income taxes 2,319 2,848
Gains from sale of assets (23,147) -
Non-cash cost of land sales 808 2,572
Increase in other non-current liabilities 948 450
Change in accounts receivable, inventories
and accounts payable (22,564) (3,401)
Decrease (increase) in current timber purchase agreements 3,134 (572)
Increase in other current assets (5,108) (3,189)
Increase in accrued liabilities 24,029 9,974
-------- --------
CASH PROVIDED BY OPERATING ACTIVITIES 53,326 50,508
-------- --------
INVESTING ACTIVITIES
Capital expenditures (23,149) (13,736)
Sales, retirements and reclassifications of property, plant and equipment, net (2,381) 24
Expenditures for dispositions and discontinued operations,
net of tax benefits of $1,000 and $1,178 (1,732) (2,039)
Proceeds from sale of assets, net of cash costs 49,403 -
Change in timber purchase agreements and other assets 6,932 1,350
-------- --------
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 29,073 (14,401)
-------- --------
FINANCING ACTIVITIES
Issuance of debt 15,000 59,853
Repayments of debt (75,828) (87,675)
Dividends paid (9,849) (8,627)
Repurchase of common shares (3,543) (1,523)
Issuance of common shares 1,298 892
-------- --------
CASH USED FOR FINANCING ACTIVITIES (72,922) (37,080)
-------- --------
CASH AND SHORT-TERM INVESTMENTS
Increase (decrease) in cash and short-term investments 9,477 (973)
Balance at beginning of period 12,265 6,635
-------- --------
Balance at end of period $ 21,742 $ 5,662
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 7,963 $ 3,694
======== ========
Income taxes $ 799 $ 216
======== ========
</TABLE>
3
<PAGE> 6
RAYONIER INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE DATA)
1. EARNINGS PER COMMON SHARE
The following table provides details of the calculation of basic and
diluted earnings per common share in accordance with Statement of
Financial Accounting Standards (SFAS) No. 128, "Earnings Per Share," for
the three months ended March 31, 2000 and 1999.
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Net Income $ 35,473 $ 15,130
=========== ===========
Shares used for determining basic earnings per common share 27,390,362 27,806,659
Dilutive effect of
Stock options 186,588 230,249
Contingent shares 360,000 240,000
----------- -----------
Shares used for determining diluted earnings per common share 27,936,950 28,276,908
=========== ===========
Basic earnings per common share $ 1.30 $ 0.54
=========== ===========
Diluted earnings per common share $ 1.27 $ 0.54
=========== ===========
</TABLE>
2. GAINS FROM SALE OF ASSETS
From time to time, Rayonier opportunistically sells non-strategic assets
to monetize portions of its asset base. In March 2000, Rayonier sold
approximately 57,000 acres of Southeastern United States forestland to
various third parties for $49.6 million, resulting in a pre-tax gain of
$23.1 million ($14.4 million after tax, or $0.51 per diluted common
share). The proceeds of these sales were used to reduce debt.
3. RECLASSIFICATIONS
Certain reclassifications of the prior year amounts have been made to
conform with the current year presentation.
4
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SEGMENT INFORMATION
Rayonier operates in two major business segments, Timber and Wood Products and
Specialty Pulp Products. The Timber and Wood Products segment includes two
reportable business units: Forest Resources and Trading, and Wood Products.
Chemical Cellulose, and Fluff and Specialty Paper Pulps are product lines within
the Specialty Pulp Products segment.
The amounts and relative contributions to sales and operating income
attributable to each of Rayonier's reportable business units for the three
months ended March 31, 2000 and 1999 were as follows (thousands of dollars):
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
--------- ---------
<S> <C> <C>
SALES
- -----
Timber and Wood Products
Forest Resources and Trading $ 124,569 $ 100,042
Wood Products 31,639 24,628
--------- ---------
Total Timber and Wood Products 156,208 124,670
--------- ---------
Specialty Pulp Products
Chemical Cellulose 74,779 62,840
Fluff and Specialty Paper Pulps 58,363 39,029
--------- ---------
Total Specialty Pulp Products 133,142 101,869
--------- ---------
Intersegment eliminations (195) (143)
--------- ---------
Total sales $ 289,155 $ 226,396
========= =========
OPERATING INCOME (LOSS)
- -----------------------
Timber and Wood Products
Forest Resources and Trading $ 41,665 $ 28,517
Wood Products (1,397) (901)
--------- ---------
Total Timber and Wood Products 40,268 27,616
Specialty Pulp Products 17,501 5,866
Corporate and other (6,263) (4,038)
--------- ---------
Total operating income $ 51,506 $ 29,444
========= =========
</TABLE>
RESULTS OF OPERATIONS
SALES AND OPERATING INCOME
Sales for the first quarter of 2000 were $289 million, $63 million above the
first quarter of 1999. The sales improvement was due to increased log trading
activity and timber harvesting in the Northwest U. S., higher volumes in the
Southeast U. S. resulting from the acquisition of the Smurfit forestlands,
higher pulp shipments, and higher fluff pulp pricing. Operating income of $52
million was $22 million higher than the first quarter of 1999, primarily related
to the stronger U.S. timber results and fluff pulp pricing.
5
<PAGE> 8
TIMBER AND WOOD PRODUCTS
Sales and operating income for first quarter 2000 were higher than first quarter
1999 by $32 million and $13 million, respectively.
FOREST RESOURCES AND TRADING
Forest Resources and Trading sales for the first quarter of 2000 were
$125 million, $25 million higher than last year's first quarter.
Operating income of $42 million was $13 million higher than prior year.
The sales improvement was the result of unusually strong Northwest U.S.
timber volumes and prices, increased volumes in the Southeast U.S.
resulting from the Smurfit forestlands acquisition, and higher log
trading activity in Asian and U.S. markets. Domestic timber sales
remained strong due to a robust U.S. economy, while export demand for
timber benefited from the continuing Asian recovery. These improvements
in sales were partially offset by lower prices in the Southeast U.S. and
reduced log trading volumes in New Zealand. Operating income improved
primarily as the result of the strong Northwest U.S. timber sales
activity in first quarter 2000.
WOOD PRODUCTS
Wood Products sales of $32 million for this year's first quarter were $7
million higher than last year, due to increased lumber and
medium-density-fiberboard (MDF) sales volumes, while the operating loss
of $1 million, excluding $0.5 million in foreign exchange losses, was
essentially flat compared to the prior year. Favorable operating and
price improvements at the Company's MDF plant in New Zealand were offset
by unfavorable log costs at the Company's Southeast U.S. lumber mills.
SPECIALTY PULP PRODUCTS
Sales of Specialty Pulp Products for the first quarter of 2000 were $133
million, $31 million higher than first quarter 1999. Operating income for first
quarter 2000 of $18 million was $12 million higher than the prior year. Fluff
and specialty paper pulp prices increased 22 percent, while overall volumes for
chemical cellulose, fluff and paper pulps increased 21 percent. Pulp markets
continued to trend upward with tighter inventories, and fluff pulp price
increases matching or exceeding those for commodity grades.
CORPORATE AND OTHER
Corporate and other costs for the first quarter of 2000 were greater than 1999
principally as a result of costs associated with the headquarters relocation
from Stamford, CT to Jacksonville, FL.
OTHER INCOME / EXPENSE
Interest expense of $23 million for the first quarter of 2000 was $15 million
higher than first quarter 1999, reflecting higher debt levels associated with
the Smurfit forestland acquisition and slightly higher interest rates.
In March 2000, Rayonier sold approximately 57,000 acres of non-strategic
Southeast U.S. forestland to various third parties for $49.6 million, resulting
in a pre-tax gain of $23.1 million ($14.4 million after tax, or $0.51 per
diluted common share). The proceeds of these sales were used to reduce debt.
The effective tax rate of 31.8 percent for the first quarter of 2000 was
slightly below the 32.6 percent rate in first quarter 1999. The effective tax
rates continue to be below U.S. statutory rates, resulting from the lower tax
rates in effect for foreign subsidiaries and various tax credits.
NET INCOME
Net income for the first quarter of 2000 was $35.5 million, or $1.27 per diluted
common share, compared to $15.1 million, or $0.54 per diluted common share, for
the first quarter of 1999. First quarter 2000 included $14.4 million, or $0.51
per diluted common share, on gains from the sale of non-strategic forestland.
6
<PAGE> 9
OTHER ITEMS
The Company believes that the Northwest U.S. harvest levels achieved in first
quarter 2000 were atypically high and will not be sustained over the rest of the
year. Fluff pulp prices are expected to continue to increase and will further
improve Specialty Pulp Products results over the next several quarters. Overall,
the Company believes that, with the improving strength in many of its markets,
anticipated 2000 earnings will exceed 1999 levels.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow provided by operating activities of $53 million for the first three
months of 2000 increased $3 million from 1999, primarily as a result of the
improvements in net income. Cash flow provided by investing activities for the
first three months of 2000 was $29 million, primarily as a result of monetizing
certain non-strategic forestlands. EBITDA (defined as earnings from continuing
operations before significant non-recurring items, provision for dispositions,
interest expense, income taxes, depreciation, depletion, amortization and the
non-cash cost of land sales) for first quarter 2000 amounted to $90 million, $31
million higher than first quarter 1999 results. Cash provided by operating
activities along with cash from investing activities helped to finance capital
expenditures of $23 million, dividends of $10 million, the repurchase of common
shares for $3.5 million, and allowed for the repayment of $61 million of debt.
Free cash flow (defined as income from continuing operations plus depreciation,
depletion and amortization, deferred income taxes and changes in working
capital, less custodial capital spending and prior-year dividend levels)
increased $38 million to $71 million in first quarter 2000, primarily as a
result of higher net income and working capital changes.
The Company repurchased 85,600 of its shares during the first quarter of 2000 at
an average cost of $41.39, for a total of $3.5 million. During the first quarter
of 1999, the Company repurchased 37,400 shares at an average cost of $40.52 for
a total of $1.5 million.
At March 31, 2000, debt was $1.075 billion and the debt-to-capital ratio was
61.4 percent, compared to debt of $1.136 billion and a debt-to-capital ratio of
63.5 percent at December 31, 1999. Excluding U.S. timberland external debt,
corporate debt was $360 million, a reduction of $59 million from December 31,
1999 and $102 million from March 31, 1999. The Company has unsecured credit
facilities totaling $300 million, which were used as support for $52 million of
outstanding commercial paper. As of March 31, 2000, Rayonier had $248 million
available under its revolving credit facilities.
In connection with the financing of the Smurfit forestland acquisition, Rayonier
Timberlands Operating Company, L.P. (RTOC), a wholly-owned limited partnership,
issued notes totaling $485 million, and entered into an agreement with a group
of banks that provided RTOC with an unsecured term loan of $200 million and
revolving credit facilities totaling $75 million, which expire in 2004. As of
March 31, 2000 and December 31, 1999, RTOC's outstanding external debt was $715
million and $717 million, respectively. RTOC had $45 million of available
borrowings under its revolving credit facilities as of March 31, 2000.
In addition, the Company has on file with the Securities and Exchange Commission
shelf registration statements to offer $150 million of new public debt
securities. The Company believes that internally generated funds, combined with
available external financing, will enable Rayonier to fund capital expenditures,
share repurchases, working capital and other liquidity needs for the foreseeable
future.
SAFE HARBOR
Comments about market trends, anticipated earnings and future activities in 2000
and beyond, are forward-looking and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Changes in
the following important factors, among others, could cause actual results to
differ materially from those expressed in the forward-looking statements:
changes in global market trends; interest rate and currency movements;
fluctuations in demand for specialty chemical cellulose and fluff pulps, export
and domestic logs, and wood products; the impact of such market factors on the
Company's timber sales in the U.S. and New Zealand; production costs for wood
products and for specialty pulps, particularly for raw materials such as wood
and chemicals; governmental policies and regulations affecting the environment,
import and export controls, and taxes.
7
<PAGE> 10
ITEM 3. SELECTED OPERATING DATA
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
---- ----
<S> <C> <C>
TIMBER AND WOOD PRODUCTS
Log trading sales volume
North America, in millions of board feet 62 30
New Zealand, in thousands of cubic meters 244 272
Other, in thousands of cubic meters 119 110
Timber sales volume
Northwest U.S., in millions of board feet 90 65
Southeast U.S., in thousands of short green tons 999 533
New Zealand, in thousands of cubic meters 253 270
Lumber sales volume, in millions of board feet 65 56
Medium-density-fiberboard sales volume,
in thousands of cubic meters 37 27
Intercompany timber sales volume
Northwest U.S., in millions of board feet 20 10
Southeast U.S., in thousands of short green tons 12 7
New Zealand, in thousands of cubic meters 109 121
SPECIALTY PULP PRODUCTS
Pulp sales volume
Chemical cellulose, in thousands of metric tons 89 74
Fluff and specialty paper pulp, in thousands of metric tons 94 77
Production as a percent of capacity 104.0% 100.6%
</TABLE>
8
<PAGE> 11
SELECTED SUPPLEMENTAL FINANCIAL DATA (thousands of dollars, except per share
data)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
---- ----
<S> <C> <C>
GEOGRAPHICAL DATA (NON-U.S.)
Sales
New Zealand $ 19,294 $ 18,284
Other 11,138 9,982
-------- --------
Total $ 30,432 $ 28,266
======== ========
Operating Loss
New Zealand $ (1,109) $ (1,635)
Other (40) (306)
-------- --------
Total $ (1,149) $ (1,941)
======== ========
FOREST RESOURCES
Sales
Northwest U.S. $ 34,298 $ 23,866
Southeast U.S. 27,342 16,942
New Zealand 4,558 5,362
-------- --------
Total $ 66,198 $ 46,170
======== ========
Operating Income
Northwest U.S. $ 29,629 $ 18,566
Southeast U.S. 12,885 12,463
New Zealand 1,122 998
-------- --------
Total $ 43,636 $ 32,027
======== ========
EBITDA per share
Northwest U.S. $ 1.11 $ 0.69
Southeast U.S. 0.86 0.54
New Zealand 0.14 0.14
-------- --------
Total $ 2.11 $ 1.37
======== ========
</TABLE>
9
<PAGE> 12
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) See Exhibit Index.
(b) Rayonier Inc. did not file a report on Form 8-K during the quarter
covered by this report.
SIGNATURE
Pursuant to the requirements of Section 13 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.
RAYONIER INC. (Registrant)
---------------------------
BY: GEORGE C. KAY
-------------
George C. Kay
Vice President and
Corporate Controller
(Chief Accounting Officer)
May 15, 2000
10
<PAGE> 13
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION LOCATION
----------- ----------- --------
<S> <C> <C>
2 Plan of acquisition, reorganization, None
arrangement, liquidation or succession
3.1 Amended and restated articles of incorporation No amendments
3.2 By-laws No amendments
4 Instruments defining the rights of security holders, Not required to be filed. The
including indentures Registrant hereby agrees to file
with the Commission a copy of any
instrument defining the rights of
holders of the Registrant's
long-term debt upon request of the
Commission.
10 Material contracts None
11 Statement re: computation of per share earnings Not required to be filed
12 Statement re: computation of ratios Filed herewith
15 Letter re: unaudited interim financial information None
18 Letter re: change in accounting principles None
19 Report furnished to security holders None
22 Published report regarding matters None
submitted to vote of security holders
23 Consents of experts and counsel None
24 Power of attorney None
27 Financial data schedule Filed herewith
99 Additional exhibits None
</TABLE>
11
<PAGE> 1
EXHIBIT 12
RAYONIER INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------
2000 1999
--------- -------
<S> <C> <C>
Earnings:
Net income $ 35,473 $ 15,130
---------- ----------
Add:
Income taxes 16,557 7,324
Amortization of capitalized interest 577 584
---------- ----------
Additions to net income 17,134 7,908
---------- ----------
Adjustments to Earnings for Fixed Charges:
Interest and other financial charges 22,790 7,703
Interest factor attributable to rentals 342 438
---------- ----------
Adjustments for fixed charges 23,132 8,141
---------- ----------
EARNINGS AS ADJUSTED $ 75,739 $ 31,179
========== ==========
Fixed Charges:
Fixed charges above $ 23,132 $ 8,141
Capitalized interest - 53
---------- ----------
TOTAL FIXED CHARGES $ 23,132 $ 8,194
========== ==========
RATIO OF EARNINGS AS ADJUSTED TO
TOTAL FIXED CHARGES 3.27 3.81
==== ====
</TABLE>
12
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 21,742
<SECURITIES> 0
<RECEIVABLES> 127,470
<ALLOWANCES> 4,863
<INVENTORY> 105,355
<CURRENT-ASSETS> 301,871
<PP&E> 1,344,899
<DEPRECIATION> 678,462
<TOTAL-ASSETS> 2,265,400
<CURRENT-LIABILITIES> 225,176
<BONDS> 1,062,930
0
0
<COMMON> 58,273
<OTHER-SE> 618,006
<TOTAL-LIABILITY-AND-EQUITY> 2,265,400
<SALES> 289,155
<TOTAL-REVENUES> 289,155
<CGS> 226,140
<TOTAL-COSTS> 226,140
<OTHER-EXPENSES> (11,805)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,790
<INCOME-PRETAX> 52,030
<INCOME-TAX> 16,557
<INCOME-CONTINUING> 35,473
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 35,473
<EPS-BASIC> 1.30
<EPS-DILUTED> 1.27
</TABLE>
