MAXXAM Reports Results for Third Quarter, Nine Months of 2001
HOUSTON--(BUSINESS WIRE)--Oct. 30, 2001--MAXXAM Inc. (AMEX:MXM) today reported net income of $29.4 million, or $4.08 per share, for the third quarter of 2001, compared to a net loss of $16.7 million, or $2.47 per share, for the third quarter of 2000. Net sales for the third quarter of 2001 totaled $504.1 million compared to $618.3 million in the same period of 2000. Results for the third quarter of 2001 include a pre-tax gain of $163.6 million in connection with Kaiser Aluminum's sale of a partial interest in an alumina refinery.
For the first nine months of 2001, MAXXAM reported net income of $52.0 million, or $7.14 per share, compared to net loss of $1.5 million, or $.22 per share, for the same period of 2000. Net sales for the first nine months of 2001 were $1,564.7 million compared to $1,883.0 million for the first nine months of 2000.
MAXXAM reported an operating loss of $34.3 million for the third quarter and operating income of $144.8 million for the first nine months of 2001, compared to operating income of $1.4 million and $100.5 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 $34.7 million for the third quarter of 2001 as compared to operating income of $4.3 million for the same period of 2000 as a result of weak commodity prices (partially offset by Kaiser's hedging program), continued soft demand for fabricated products, and the impact of the ongoing curtailment of the company's Pacific Northwest smelters. Included in the operating loss for the third quarter of 2001 are pre-tax charges of $21.3 million from non-recurring items, whereas operating income for the third quarter of 2000 included a pre-tax gain of $10.9 million from non-recurring items. The non-recurring items for the third-quarter of 2001 included a pre-tax restructuring charge of $24.5 million.
(Note: A separate press release with additional details on aluminum operations is being released today by Kaiser Aluminum Corporation.)
FOREST PRODUCTS OPERATIONS
Net sales during the third quarter were negatively impacted by lower lumber prices, with lower prices for common grade redwood lumber being the primary contributor to the decline. In addition, shipments of lumber declined slightly for the third quarter of 2001 as compared to the third quarter of 2000. The business segment had higher sales volumes for redwood common grade lumber; however, this was more than offset by lower shipments of other lumber categories. Despite the decline in net sales, gross margins on lumber sales were flat period to period as a result of a decline in cost of sales.
Forest Products had lower operating income for the third quarter of 2001 primarily as a result of a decline in gross margins on chips and other by-products and an increase in miscellaneous other expenses.
REAL ESTATE OPERATIONS
Net sales and operating income for the third quarter and first nine months of 2001 increased from the same periods of 2000. The improvements reflect higher real estate acreage sales at the Palmas del Mar development project, in addition to rental income from the LakePointe Plaza office complex acquired in June 2001.
RACING OPERATIONS
Operating results for the third quarter and first nine months of 2001 decreased slightly from the year ago periods. Increases in net sales for the quarter and year-to-date periods (due to higher overall net pari-mutuel commissions) were offset by modest increases in operating expenses over the same periods.
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. |
