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 June 29, 1996
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 1-8634
Temple-Inland Inc.
(Exact name of registrant as specified in its charter)
Delaware 75-1903917
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 South Temple Drive, Diboll, Texas 75941
(Address of principal executive offices) (Zip Code)
(409) 829-2211
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate 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 the 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:
Number of common shares outstanding
Class as of June 29, 1996
Common Stock (par
value $1.00 per share) 55,448,614
The Exhibit Index appears on page 19 of this report.
<PAGE>2
PART I. FINANCIAL INFORMATION
FINANCIAL STATEMENTS
Summarized Statements of Income
Parent Company (Temple-Inland Inc.)
Unaudited
Second Quarter First Six Months
1996 1995 1996 1995
(in millions)
Revenues
Net sales $ 666.6 $ 697.5 $ 1,328.2 $ 1,358.3
Financial services earnings 29.7 24.0 54.4 38.2
696.3 721.5 1,382.6 1,396.5
Costs and Expenses
Cost of sales 543.5 530.2 1,069.4 1,040.3
Selling and administrative 72.1 62.6 134.6 122.2
615.6 592.8 1,204.0 1,162.5
Operating Income 80.7 128.7 178.6 234.0
Interest - net (27.5) (17.3) (54.2) (33.9)
Other 1.3 .7 1.5 1.7
Income Before Taxes 54.5 112.1 125.9 201.8
Taxes on income 19.1 39.2 44.1 70.6
Net Income $ 35.4 $ 72.9 $ 81.8 $ 131.2
See notes to consolidated financial statements.
<PAGE>3
Summarized Balance Sheets
Parent Company (Temple-Inland Inc.)
Unaudited
June 29, December 30,
1996 1995
(in millions)
ASSETS
Current Assets
Cash $ 15 $ 15
Receivables, less allowances of
$8 million in 1996 and $8
million in 1995 315 285
Inventories:
Work in process and finished goods 108 99
Raw materials 220 239
328 338
Prepaid expenses 14 15
Total current assets 672 653
Investment in Financial Services 615 605
Property and Equipment
Buildings 490 469
Machinery and equipment 3,510 3,323
Less allowances for depreciation and
amortization (1,796) (1,702)
2,204 2,090
Construction in progress 110 225
2,314 2,315
Timber and timberlands--less depletion 507 445
Land 30 28
Total property and equipment 2,851 2,788
Other Assets 169 167
Total Assets $ 4,307 $ 4,213
See notes to consolidated financial statements.
<PAGE>4
Summarized Balance Sheets - Continued
Parent Company (Temple-Inland Inc.)
Unaudited
June 29, December 30,
1996 1995
(in millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 129 $ 138
Accrued expenses 145 157
Employee compensation and benefits 20 37
Current portion of long-term debt 3 5
Total current liabilities 297 337
Long-Term Debt 1,596 1,489
Deferred Income Taxes 247 259
Postretirement Benefits 135 132
Other Liabilities 32 21
Shareholders' Equity 2,000 1,975
Total Liabilities and Shareholders' Equity $ 4,307 $ 4,213
See notes to consolidated financial statements.
<PAGE>5
Summarized Statements of Cash Flows
Parent Company (Temple-Inland Inc.)
Unaudited
First Six Months
1996 1995
(in millions)
Cash Provided by (Used for) Operations
Net income $ 81.8 $ 131.2
Adjustments to reconcile net income to net cash:
Depreciation and depletion 120.4 103.5
Deferred taxes (11.4) 21.1
Unremitted earnings of affiliates (33.0) (24.6)
Receivables (31.0) (94.4)
Inventories 18.1 (55.8)
Prepaid expenses 3.5 2.9
Accounts payable and accrued expenses (41.1) (27.9)
Other 13.7 (8.3)
121.0 47.7
Cash Provided by (Used for) Investments
Capital expenditures (166.1) (187.6)
Investment in joint ventures (14.0) -
Sale of property and equipment 2.6 6.3
Capital contribution to financial services - (35.0)
Dividends from financial services 11.2 -
Other (3.0) (1.6)
(169.3) (217.9)
Cash Provided by (Used for) Financing
Change in debt, net 94.3 199.1
Purchase of stock for treasury (12.8) (.2)
Cash dividends paid to shareholders (33.3) (30.3)
Other .5 1.1
48.7 169.7
Effect of exchange rate changes on cash and
cash equivalents - (.2)
Net increase (decrease) in cash and cash
equivalents .4 (.7)
Cash and cash equivalents at beginning
of period 14.7 13.0
Cash and cash equivalents at end of period $ 15.1 $ 12.3
See notes to consolidated financial statements.
<PAGE>6
Summarized Statements of Income
Temple-Inland Financial Services
Unaudited
Second Quarter First Six Months
1996 1995 1996 1995
(in millions)
Interest income
Mortgage-backed and investment
securities $ 46.7 $ 52.5 $ 96.4 $ 103.1
Loans receivable and mortgage
loans held for sale 105.7 90.7 207.5 171.5
Assisted assets - 6.1 - 12.2
Other earning assets 5.2 6.1 10.9 11.6
Total interest income 157.6 155.4 314.8 298.4
Interest expense
Deposits 77.3 78.7 155.7 152.6
Borrowed funds 31.0 31.2 60.5 60.3
Total interest expense 108.3 109.9 216.2 212.9
Net interest income 49.3 45.5 98.6 85.5
Provision for loan losses 2.9 3.7 9.1 9.0
Net interest income after provision
for loan losses 46.4 41.8 89.5 76.5
Noninterest income
Loan servicing fees 13.8 10.6 27.5 20.4
Loan origination and marketing 7.6 1.6 14.2 2.8
Other 26.5 23.9 47.3 43.8
47.9 36.1 89.0 67.0
Noninterest expense
Compensation and benefits 25.4 23.3 50.6 45.4
Other 39.2 30.6 73.5 59.9
Total noninterest expense 64.6 53.9 124.1 105.3
Income before taxes 29.7 24.0 54.4 38.2
Taxes on income 11.7 7.9 21.4 13.6
Net income $ 18.0 $ 16.1 $ 33.0 $ 24.6
See notes to consolidated financial statements.
<PAGE>7
Summarized Balance Sheets
Temple-Inland Financial Services
Unaudited
June 30, December 31,
1996 1995
(in millions)
ASSETS
Cash and cash equivalents $ 362 $ 343
Mortgage loans held for sale 193 106
Loans receivable 5,111 4,764
Mortgage-backed and investment
securities 3,192 3,424
Other assets 617 574
TOTAL ASSETS $ 9,475 $ 9,211
LIABILITIES
Deposits $ 6,337 $ 6,377
Securities sold under repurchase
agreements 1,994 1,604
Federal Home Loan Bank advances 55 155
Other borrowings 130 113
Other liabilities 344 357
TOTAL LIABILITIES 8,860 8,606
SHAREHOLDER'S EQUITY 615 605
TOTAL LIABILITIES AND SHAREHOLDER S
EQUITY $ 9,475 $ 9,211
See notes to consolidated financial statements.
<PAGE>8
Summarized Statements of Cash Flows
Temple-Inland Financial Services
Unaudited
First Six Months
1996 1995
(in millions)
Cash Provided by (Used for) Operations
Net income $ 33.0 $ 24.6
Adjustments to reconcile net income
to net cash:
Amortization, accretion and depreciation 17.1 11.9
Provision for loan losses 9.1 9.0
Receivable from FDIC 7.4 9.3
Mortgage loans held for sale (36.2) (4.4)
Collections and remittances on loans
serviced for others, net (51.7) 23.0
Other (53.1) (13.5)
(74.4) 59.9
Cash Provided by (Used for) Investments
Purchases of mortgage-backed and investment
securities held-to-maturity (.1) -
Purchases of mortgage-backed and investment
securities available-for-sale (2.2) (53.7)
Maturities of mortgage-backed and investment
securities held-to-maturity 162.0 198.1
Maturities of mortgage-backed and investment
securities available-for-sale 47.8 11.0
Proceeds from sales of loans and mortgage-
backed and investment securities available-
for-sale 4.3 192.6
Loans originated net of principal collected (359.1) (889.0)
Reduction in covered assets - 88.3
Other (14.0) (37.4)
(161.3) (490.1)
Cash Provided by (Used for) Financing
Net increase (decrease) in deposits (38.9) (37.6)
Net increase (decrease) in securities sold
under repurchase agreements and short-term
borrowings 341.9 372.7
Change in debt, net (85.5) 16.6
Capital contribution from parent - 35.0
Dividends paid to parent (11.2) -
Other 47.8 72.7
254.1 459.4
Net increase in cash and cash equivalents 18.4 29.2
Cash and cash equivalents at beginning of period 343.1 301.8
Cash and cash equivalents at end of period $ 361.5 $ 331.0
See notes to consolidated financial statements.
<PAGE>9
Consolidated Statements of Income
Temple-Inland Inc. and Subsidiaries
Unaudited
Second Quarter First Six Months
1996 1995 1996 1995
(In millions, except for per share data)
Revenues
Manufacturing net sales $ 666.6 $ 697.5 $ 1,328.2 $ 1,358.3
Financial services revenues 205.5 191.5 403.8 365.4
872.1 889.0 1,732.0 1,723.7
Costs and Expenses
Manufacturing costs and
expenses 615.6 592.8 1,204.0 1,162.5
Financial services expenses 175.8 167.5 349.4 327.2
791.4 760.3 1,553.4 1,489.7
Operating Income 80.7 128.7 178.6 234.0
Parent Company Interest - net (27.5) (17.3) (54.2) (33.9)
Other 1.3 .7 1.5 1.7
Income Before Taxes 54.5 112.1 125.9 201.8
Taxes on Income 19.1 39.2 44.1 70.6
Net Income $ 35.4 $ 72.9 $ 81.8 $ 131.2
Earnings per share $ .63 $1.30 $1.47 $2.34
Dividends Paid Per Share of
Common Stock $ .30 $ .27 $ .60 $ .54
Weighted Average Shares
Outstanding 55.6 56.1 55.6 56.1
See notes to consolidated financial statements.
<PAGE>10
Consolidated Balance Sheets
Temple-Inland Inc. and Subsidiaries
June 29, 1996
Unaudited
Parent Financial
Company Services Consolidated
(in millions)
ASSETS
Cash and cash equivalents $ 15 $ 362 $ 377
Mortgage loans held for sale - 193 193
Loans receivable - 5,111 5,111
Mortgage-backed and investment
securities - 3,192 3,192
Trade and other receivables 315 - 313
Inventories 328 - 328
Property & equipment 2,851 77 2,928
Other assets 183 540 679
Investment in affiliates 615 - -
TOTAL ASSETS $ 4,307 $ 9,475 $13,121
LIABILITIES
Deposits $ - $ 6,337 $ 6,337
Securities sold under repurchase
agreements and Federal Home
Loan Bank advances - 2,049 2,049
Other liabilities 329 344 657
Long-term debt 1,596 130 1,726
Deferred income taxes 247 - 217
Postretirement benefits 135 - 135
TOTAL LIABILITIES $ 2,307 $ 8,860 11,121
SHAREHOLDERS' EQUITY
Preferred stock - par value $1 per share:
authorized 25,000,000 shares; none issued -
Common stock - par value $1 per share:
authorized 200,000,000 shares; issued
61,389,552 shares including shares held
in the treasury 61
Additional paid-in capital 304
Translation and other adjustments (26)
Retained earnings 1,822
2,161
Cost of shares held in the treasury:
5,940,938 shares (161)
TOTAL SHAREHOLDERS' EQUITY 2,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $13,121
See the notes to the consolidated financial statements.
<PAGE>11
Consolidated Balance Sheets
Temple-Inland Inc. and Subsidiaries
December 30, 1995
Unaudited
Parent Financial
Company Services Consolidated
(in millions)
ASSETS
Cash and cash equivalents $ 15 $ 343 $ 358
Mortgage loans held for sale - 106 106
Loans receivable - 4,764 4,764
Mortgage-backed and investment
securities - 3,424 3,424
Trade and other receivables 285 - 283
Inventories 338 - 338
Property & equipment 2,788 76 2,864
Other assets 182 498 627
Investment in affiliates 605 - -
TOTAL ASSETS $ 4,213 $ 9,211 $12,764
LIABILITIES
Deposits $ - $ 6,377 $ 6,377
Securities sold under repurchase
agreements and Federal Home
Loan Bank advances - 1,759 1,759
Other liabilities 358 357 702
Long-term debt 1,489 113 1,602
Deferred income taxes 259 - 217
Postretirement benefits 132 - 132
TOTAL LIABILITIES $ 2,238 $ 8,606 10,789
SHAREHOLDERS' EQUITY
Preferred stock - par value $1 per share:
authorized 25,000,000 shares; none issued -
Common stock - par value $1 per share:
authorized 200,000,000 shares; issued
61,389,552 shares including shares held
in the treasury 61
Additional paid-in capital 306
Translation and other adjustments (14)
Retained earnings 1,773
2,126
Cost of shares held in the treasury:
5,731,411 shares (151)
TOTAL SHAREHOLDERS' EQUITY 1,975
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,764
See the notes to the consolidated financial statements.
<PAGE>12
Consolidated Statements of Cash Flows
Temple-Inland Inc. and Subsidiaries
Unaudited
First Six Months
1996 1995
(in millions)
Cash Provided by (Used for) Operations
Net income $ 81.8 $ 131.2
Adjustments to reconcile net income to
net cash:
Depreciation and depletion 124.9 107.4
Amortization and accretion 12.5 8.0
Deferred taxes 6.2 32.1
Receivable from FDIC 7.4 9.3
Trade and other receivables (31.0) (94.4)
Accounts payable and accrued expenses (40.9) (32.0)
Inventories 18.1 (55.8)
Mortgage loans held for sale (36.2) (4.4)
Increase (decrease) in collections and
remittances on loans serviced for
others, net (51.7) 23.0
Other (44.6) (16.8)
46.5 107.6
Cash Provided by (Used for) Investments
Capital expenditures (172.7) (205.4)
Purchases of mortgage-backed and investment
securities held-to-maturity (.1) -
Purchases of mortgage-backed and investment
securities available-for-sale (2.2) (53.7)
Maturities of mortgage-backed and investment
securities held-to-maturity 162.0 198.1
Maturities of mortgage-backed and investment
securities available-for-sale 47.8 11.0
Proceeds from sales of mortgage-backed and
investment securities available-for-sale 4.3 192.6
Loans originated net of principal collected (359.1) (889.0)
Reduction in covered assets - 88.3
Other (21.7) (14.9)
(341.7) (673.0)
Cash Provided by (Used for) Financing
Additions to debt 230.2 252.6
Payments of debt (221.4) (36.9)
Net increase (decrease) in short-term
borrowings and repurchase agreements 341.9 372.7
Cash dividends paid to shareholders (33.3) (30.3)
Net increase (decrease) in deposits (38.9) (37.6)
Other 35.5 73.6
314.0 594.1
Effect of exchange rate changes on cash and
cash equivalents - (.2)
Net increase (decrease) in cash and
cash equivalents 18.8 28.5
Cash and cash equivalents at beginning of period 357.8 314.8
Cash and cash equivalents at end of period $ 376.6 $ 343.3
See notes to consolidated financial statements.
<PAGE>13
TEMPLE-INLAND INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements.
However, because certain assets and liabilities are in separate
corporate entities, the consolidated assets are not available to
satisfy all consolidated liabilities. In the opinion of
management, all adjustments (consisting only of normal accruals)
considered necessary for a fair presentation have been included.
For further information, refer to the consolidated financial
statements and footnotes included in, or incorporated into,
Temple-Inland Inc.'s (the "Company") Annual Report on Form 10-K
for the fiscal year ended December 30, 1995.
The consolidated financial statements include the accounts of
Temple-Inland Inc. and all subsidiaries in which the Company has
more than a 50 percent equity ownership. All material
intercompany amounts and transactions have been eliminated.
Included as an integral part of the consolidated financial
statements are separate summarized financial statements for the
Company's primary business groups.
The Parent Company (Temple-Inland Inc.) summarized financial
statements include the accounts of Temple-Inland Inc. and its
manufacturing subsidiaries with the Financial Services
subsidiaries and the 20 percent to 50 percent owned companies
being reflected in the financial statements on the equity basis.
The Temple-Inland Financial Services Group summarized financial
statements include savings bank, mortgage banking and real estate
development activities and insurance operations.
NOTE B - CONTINGENCIES
There are pending against the Company and its subsidiaries
lawsuits and claims arising in the regular course of business.
In the opinion of management, recoveries, if any, by plaintiffs
or claimants that may result from the foregoing litigation and
claims will not be material in relation to the consolidated
financial statements of the Company and its subsidiaries.
<PAGE>14
MANAGEMENT'S DISCUSSION AND ANALYSIS
Results of Operations
Results of operations, including information regarding the
Company's principal business segments, are shown below:
Second Quarter First Six Months
1996 1995 1996 1995
(in millions)
Revenues
Corrugated container $ 429.5 $ 476.4 $ 876.9 $ 909.8
Bleached paperboard 102.9 92.3 198.0 187.0
Building products 134.2 128.8 253.3 261.5
Manufacturing net sales 666.6 697.5 1,328.2 1,358.3
Financial services 205.5 191.5 403.8 365.4
Total revenues $ 872.1 $ 889.0 $ 1,732.0 $ 1,723.7
Income
Corrugated container $ 42.7 $ 87.1 $ 115.6 $ 151.9
Bleached paperboard (11.1) 8.1 (21.4) 15.6
Building products 24.2 15.3 39.8 39.0
Operating profit 55.8 110.5 134.0 206.5
Financial services 29.7 24.0 54.4 38.2
85.5 134.5 188.4 244.7
Corporate expenses (4.8) (5.8) (9.8) (10.7)
Parent company interest - net (27.5) (17.3) (54.2) (33.9)
Other - net 1.3 .7 1.5 1.7
Income before taxes 54.5 112.1 125.9 201.8
Taxes on income 19.1 39.2 44.1 70.6
Net income $ 35.4 $ 72.9 $ 81.8 $ 131.2
<PAGE>15
Second Quarter 1996 vs. Second Quarter 1995
Second quarter earnings for 1996 totaled $35.4 million, or $.63
per share, a decrease of 51 percent from 1995 second quarter
earnings of $72.9 million, or $1.30 per share. Revenues for the
period were $872.1 million, down two percent from the $889.0
million reported in the same quarter of 1995.
The Corrugated Container Group earned $42.7 million in the
quarter, down from $87.1 million from the second quarter of 1995.
This decline in earnings was attributable primarily to
deteriorating prices for containerboard and corrugated
containers. Those prices began to fall late last year and
continued to decline throughout the second quarter of this year.
As in the last two quarters of 1995, the Company curtailed
production during the quarter to control inventory levels.
The Bleached Paperboard Group lost $11.1 million in the quarter.
Although sales were 11 percent above 1995 second quarter levels,
product prices declined and the Company still limited production
to control inventory levels. During the quarter, the Company
continued its activities to consolidate management of its paper
operations in order to better serve its customers in both the
bleached and unbleached segments of the business. Results for
the Bleached Paperboard Group include a $5.0 million charge
associated with these consolidation and restructuring efforts.
Excluding this charge, the Bleached Paperboard Group lost $6.1
million in the quarter compared with operating earnings of $8.1
million in the second quarter of 1995.
The Building Products Group earned $24.2 million in the quarter,
up from the $15.3 million earned in the second quarter last year.
This increase resulted from improved price levels in lumber and
fiber products along with substantial reductions in net wood
costs for the solid wood group.
The Financial Services Group earned $29.7 million, up $5.7
million from the second quarter last year. Increase in net
interest income because of a larger loan portfolio and
continuation of productivity programs contributed to the earnings
improvement.
Net interest expense increased to $27.5 million in the second
quarter of 1996 compared with $17.3 million in the second quarter
of last year. The increase in net interest expense is primarily
due to a decrease in capitalized interest from $10.4 million in
the second quarter of 1995 to $1.0 million in the second quarter
of 1996 due to the completion of the Bleached Paperboard Group s
modernization and expansion projects. Gross interest increased
slightly from $27.7 million in the second quarter of 1995 to
$28.5 million in the second quarter of 1996, due to higher levels
of debt outstanding.
<PAGE>16
First Half of 1996 vs. First Half of 1995
Earnings for the first six months of 1996 were $81.8 million, or
$1.47 per share compared with $131.2 million, or $2.34 per share
for the first half of last year. Revenues of $1,732.0 million
were up from the 1995 first half of $1,723.7 million.
The Corrugated Container Group's earnings of $115.6 million were
down 24 percent from last year. As the U.S. economy slowed in
the second half of 1995, demand for containerboard and corrugated
containers softened. This trend continued in the second quarter
leading to a significant decline in prices for containerboard and
corrugated containers. Corrugated container shipments improved
from first quarter levels, building momentum throughout the
second quarter. The activity level in June was the best of any
month since January 1995.
The Bleached Paperboard Group lost $21.4 million compared with
earnings of $15.6 million in the first six months of 1995.
Excluding the $5.0 million charge for consolidation and
restructuring, the Bleached Paperboard Group lost $16.4 million
year-to-date. Demand for the bleached paperboard products
strengthened during the quarter and production levels improved.
Although sales were six percent above last year s level, product
prices declined and the Company still limited production to
control inventory levels. The current backlog of orders has
improved from first quarter levels.
The Building Products Group earned $39.8 million in the first
half of 1996 compared with $39.0 million last year. Demand for
fiberboard and gypsum strengthened during the quarter which had a
positive impact on earnings. In May, this group began its major
renovation of the Monroeville, Alabama, particleboard mill. This
mill is expected to resume production in August. Similar
renovations to the Diboll, Texas, particleboard mill are
scheduled to start in the fourth quarter.
Earnings for the Financial Services Group were $54.4 million for
the period, an increase of $16.2 million from last year's
comparable period. Increase in net interest income, noninterest
income and decrease in noninterest expense were the major factors
of this positive contribution. The loan portfolio is at a record
level which is 61 percent of total earning assets.
Financial Condition
The Company s financial condition continues to be strong.
Internally generated funds, existing credit facilities and the
capacity to issue long-term debt are sufficient to fund projected
capital expenditures, to service existing debt, to pay dividends
and to meet normal working capital requirements. During the
first half of 1996, the Parent Company s debt increased $94.3
million, mainly through issuance of commercial paper and bank
debt primarily to cover capital expenditures. Debt maturities
of $98.4 million during the first half of 1996 were refinanced
through commercial paper and bank borrowings.
Guaranty Federal Bank continues to meet all three regulatory
requirement formulae set out under the Financial Institution
Reform, Recovery and Enforcement Act of 1989 ( FIRREA ).
<PAGE>17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information set forth in Note B to Notes to
Consolidated Financial Statements in Part I of this
report is incorporated by reference thereto.
Item 2. Changes in Securities.
Not Applicable.
Item 3. Defaults Upon Senior Securities.
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Regulation S-K
Exhibit Number
(11) Statement re computation of per share earnings
(27) Financial Data Schedule
(b) Reports on Form 8-K. During the six months
ended June 29, 1996, the Company did not file
any reports on Form 8-K.
<PAGE>18
SIGNATURES
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.
TEMPLE-INLAND INC.
(Registrant)
Date: August 9, 1996 By /s/ David H. Dolben
David H. Dolben
Vice President and
Chief Accounting Officer<PAGE>
<PAGE>19
EXHIBIT INDEX
The following is an index of the exhibits filed herewith. The
page reference set forth opposite the description of exhibits
included in such index refer to the pages under the sequential
numbering system prescribed by Rule 0-3(b) under the Securities
Exchange Act of 1934.
Regulation S-K
Exhibit Sequential
Number Page Number
(11) Statement re computation of 20
per share earnings.
(27) Financial Data Schedule 21
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED INCOME STATEMENTS FOR
TEMPLE-INLAND INC. AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> JUN-29-1996
<CASH> 377
<SECURITIES> 0
<RECEIVABLES> 313
<ALLOWANCES> 0
<INVENTORY> 328
<CURRENT-ASSETS> 0
<PP&E> 2,928
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,121
<CURRENT-LIABILITIES> 0
<BONDS> 1,726
0
0
<COMMON> 61
<OTHER-SE> 2,100
<TOTAL-LIABILITY-AND-EQUITY> 13,121
<SALES> 1,328
<TOTAL-REVENUES> 1,732
<CGS> 1,204
<TOTAL-COSTS> 1,553
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 54
<INCOME-PRETAX> 126
<INCOME-TAX> 44
<INCOME-CONTINUING> 82
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 82
<EPS-PRIMARY> 1.47
<EPS-DILUTED> 1.47
</TABLE>
EXHIBIT (11)
TEMPLE-INLAND INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(in thousands, except for per share data)
Second Quarter First Six Months
1996 1995 1996 1995
Primary
Average common shares outstanding 55,504 56,098 55,534 56,081
Net effect of dilutive stock options
based on treasury stock method using
average market price 59 12 31 43
Weighted average shares outstanding 55,563 56,110 55,565 56,124
Net income $ 35,406 $ 72,936 $ 81,832 $131,226
Earnings per share $ .63 $ 1.30 $ 1.47 $ 2.34
Fully Diluted
Average common shares outstanding 55,504 56,098 55,534 56,081
Net effect of dilutive stock options
based on treasury stock method
using the closing market price, if
higher than average market price 105 72 54 73
Weighted average shares outstanding 55,609 56,170 55,588 56,154
Net income $ 35,406 $ 72,936 $ 81,832 $131,226
Earnings per share $ .63 $ 1.30 $ 1.47 $ 2.34
