MAXXAM Reports Results for Fourth Quarter, Twelve Months of 2000
HOUSTON--(BUSINESS WIRE)--Feb. 7, 2001--MAXXAM Inc. (AMEX:MXM) today reported net income of $35.4 million, or $4.78 per share, for the fourth quarter of 2000, compared to net income of $17.0 million, or $2.19 per share, for the fourth quarter of 1999. Net sales for the fourth quarter of 2000 totaled $565.0 million, compared to $601.3 million in the same period of 1999.
For the year ended December 31, 2000, MAXXAM reported net income of $33.9 million, or $4.47 per share, compared to $73.6 million, or $9.49 per share, for the same period of 1999. Net income for the quarter and year ended December 31, 2000, included a one-time pre-tax gain of $60.0 million ($35.6 million net of deferred taxes) on the sale of the Owl Creek grove to the State of California as part of the ongoing implementation of the Headwaters Agreement. Net income for the year ended December 31, 1999, included a one-time, pre-tax gain of $239.8 million ($142.1 million net of deferred taxes) for the landmark sale in March 1999 of the Headwaters timberlands to the governments of the United States and the State of California.
Net sales for the year ended December 31, 2000 were $2,448.0 million compared to $2,350.7 million for 1999. MAXXAM reported operating income of $30.1 million for the fourth quarter and $130.6 million for the year ended December 31, 2000, compared to operating income of $5.4 million and an operating loss of $51.5 million for the comparable periods of 1999.
MAXXAM operates in aluminum, forest products, real estate, and racing.
ALUMINUM OPERATIONS
Aluminum operations' operating income for the fourth quarter of 2000 was $49.5 million. These results included $103.2 million for net gains on sales of power contracts, a $37.5 million charge related to impairments of assets and other non-recurring charges of $7.8 million. Excluding special items from both periods, results in the fourth quarter 2000 were less favorable than those of the year-ago quarter due primarily to lower shipments - particularly in the engineered products business unit related to weakness in demand in the ground transportation and distribution markets - and higher energy costs.
(Note: A separate press release with additional details on aluminum operations is being released today by Kaiser Aluminum Corporation.)
FOREST PRODUCTS OPERATIONS
Net sales for the fourth quarter of 2000 were lower than for the 1999 fourth quarter as a result of lower shipments of redwood lumber and lower prices for common grade redwood and Douglas-fir lumber offset by higher prices for upper grade redwood lumber. In addition to the impact of lower net sales, operating income declined due to higher costs associated with forestry operations.
Results for the year ended December 31, 2000 compared to 1999 reflect higher prices for redwood lumber and higher shipments of common grade redwood and Douglas-fir lumber. This improvement in shipments was more than offset by lower shipments of upper grade redwood lumber due to continuing reductions in the volume of old-growth logs available for the production of lumber. The failure of government agencies to approve timber harvest plans in a timely manner continues to adversely affect log supply.
REAL ESTATE OPERATIONS
Real estate net sales for the 2000 fourth quarter decreased slightly from the comparable 1999 quarter due to lower sales at the Company's Fountain Hills, Arizona development. Operating losses for the quarter and year ended December 31, 2000, increased from the comparable prior year periods as a result of a write-down of certain receivables.
RACING OPERATIONS
Racing operations' 2000 fourth quarter and year net sales increased primarily due to the opening of Valley Race Park in Harlingen, Texas. Operating income for the fourth quarter was lower due to operating losses at Valley Race Park.
CORPORATE
As previously announced in prior earnings statements, MAXXAM may from time to time purchase shares of its common stock on national exchanges or in privately negotiated transactions. |
