MAXXAM Reports Results for First Quarter 2001
HOUSTON--(BUSINESS WIRE)--April 24, 2001--MAXXAM Inc. (AMEX:MXM) today reported net income of $65.3 million, or $8.81 per share, and operating income of $209.3 million for the first quarter of 2001.
MAXXAM's first quarter 2001 results compare to net income of $4.9 million and operating income of $38.5 million recorded for the first quarter of 2000.
Net sales for the first quarter of 2001 totaled $544.4 million, compared to $637.6 million for the same period of 2000.
MAXXAM's first quarter operating results largely reflect pre-tax net gains from sales of power of $228.2 million.
MAXXAM has operations in aluminum, forest products, real estate, and racing.
ALUMINUM OPERATIONS
Excluding net gains from power sales from the results for the first quarter of 2001, aluminum results were below those of the year-ago period due largely to declines of 11% and 8%, respectively, in realized prices for alumina and primary aluminum. In addition, aluminum operations had a 49% decline in shipments of primary aluminum attributable to smelter curtailments in the Pacific Northwest and a decline of 31% in shipments of engineered products attributable to weakness in the ground transportation market. These unfavorable factors were partially offset by a more favorable hedge position.
(Note: A separate press release with additional details on aluminum operations was released by Kaiser Aluminum (NYSE:KLU) on Tuesday, April 24, 2000.)
FOREST PRODUCTS OPERATIONS
Net sales for the first quarter of 2001 were lower than the 2000 first quarter primarily as a result of lower prices for redwood and Douglas-fir common grade lumber. In addition, the Company had lower shipments of Douglas-fir lumber offset somewhat by higher shipments of redwood lumber.
Forest products had an operating loss for the first quarter of 2001 as compared to operating income for the first quarter of 2000 as a result of the decline in net sales as well as higher costs associated with logging operations.
REAL ESTATE OPERATIONS
Net sales for the first quarter of 2001 improved from the first quarter of 2000 primarily as a result of an increase in lot sales in Fountain Hills, Arizona. Operating losses declined between the periods as a result of the increase in real estate sales.
RACING OPERATIONS
Net sales for the first quarter of 2001 increased over the first quarter of 2000 primarily due to the opening of Valley Race Park in Harlingen, Texas, which was purchased in early 2000. Operating income was substantially unchanged between the periods.
CORPORATE
As previously announced in prior earnings releases, MAXXAM may from time to time purchase shares of its common stock on national exchanges or in privately negotiated transactions. |
