MAXXAM Reports Results for Second Quarter and First Half of 2001
HOUSTON--(BUSINESS WIRE)--July 24, 2001--MAXXAM Inc. (AMEX:MXM) today reported a net loss of $42.7 million, or $6.53 per share, for the second quarter of 2001, compared to net income of $10.3 million, or $1.36 per share, for the second quarter of 2000. Net sales for the second quarter of 2001 totaled $516.2 million, compared to $627.1 million for the same period of 2000.
For the first six months of 2001, MAXXAM reported net income of $22.6 million, or $3.09 per share, compared to $15.2 million, or $1.96 per share, for the same period of 2000. Net sales for the first six months of 2001 were $1,060.6 million compared to $1,264.7 million for the first six months of 2000.
MAXXAM reported an operating loss of $30.2 million for the second quarter and operating income of $179.1 million for the first six months of 2001, compared to operating income of $60.6 million and $99.1 million for the comparable periods of 2000.
MAXXAM operates primarily in aluminum, forest products, real estate and racing.
ALUMINUM OPERATIONS
Kaiser Aluminum (NYSE:KLU) experienced an operating loss of $26.1 million for the second quarter as compared to operating income of $53.0 million for the comparable prior year period largely as a result of continuing costs associated with the start up of the Gramercy, Louisiana, alumina refinery; an almost 50% decline in primary aluminum shipments due to smelter curtailments in the Pacific Northwest; a 9% decline in realized prices for alumina; and weak demand in a number of key fabricated products markets.
In addition, for the quarter ended June 30, 2001, the loss before income taxes of $104.9 million attributable to aluminum operations includes a non-cash pre-tax charge of $45.8 million related to an increase in Kaiser's net asbestos liability. Results also include a number of other special items and adjustments, as detailed in a separate Kaiser press release issued today.
FOREST PRODUCTS OPERATIONS
Although overall shipments of lumber increased for the second quarter of 2001 as compared to the second quarter of 2000, net sales declined primarily as a result of lower prices for common grade redwood lumber. Forest products had lower operating income for the second quarter of 2001 as a result of the decline in net sales as well as higher logging costs and higher costs associated with milling operations. The failure of the government agencies to approve timber harvest plans in a timely manner continues to adversely affect log supply and operations.
REAL ESTATE OPERATIONS
Net sales for the second quarter of 2001 decreased slightly from the second quarter of 2000 primarily due to decreased revenue from resort and commercial operations and lower sales of real estate at the Fountain Hills development project. The real estate segment had a loss from operations for the second quarter of 2001, as compared to income for the second quarter of 2000, as a result of the decline in net sales.
RACING OPERATIONS
The decreases in net sales and operating results for the second quarter of 2001 versus the comparable prior year period were primarily the result of decreases in wagering at both Sam Houston Race Park (due to fewer live racing days) and Valley Race Park (due to lower average daily attendance). This decline was partially offset by continued improvements in operating efficiencies at both race parks.
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. |
