Temple-Inland increased its overall operating income by almost 150% during the first quarter, despite a $6 million operating loss in the company's building products segment the company announced today. The company was carried by a $98 million operating income in its corrugated packaging segment.
The Austin, Texas-based building products and corrugated packaging manufacturer posted an operating income of $92 million on $995 million in sales. The building products segment reported sales of $174 million during the first quarter 2011, a 13.7% increase over the year earlier period, but still managed to finish in the red. The operating loss is an improvement over the $9 million operating loss the segment posted during the year earlier period.
The company cited "higher lumber prices and seasonally higher volumes for all products" as the reason for the segment's operating loss improvement. As for the various products within the building product segment, lumber lead the way with $59 million in revenues, an 18% improvement over the same period in 2010. Particleboard was second with $41 million in revenues, again improving on the $36 million it brought in during the year earlier period. Gypsum wallboard also saw a 15% improvement in sales to $38 million, compared the same time last year. Medium density fiberboard and other building products posted small gains of $2 million or less.
"In Building Products, our operating results improved compared with fourth quarter 2010 and first quarter 2010 despite continued weakness in housing markets," said chairman and CEO Doyle R. Simons. "In Building Products, our operating results improved compared with fourth quarter 2010 and first quarter 2010 despite continued weakness in housing markets."
The segment also produced earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4 million, double what the segment produced in EBITDA during last year's first quarter. Following $10 million in depreciation and amortization the operating loss was brought down to $6 million.