Temple-Inland's building products segment posted a $15 million operating loss during the fourth quarter of 2010, the company announced today. The loss is an improvement from the $18 million operating loss the segment posted during the same period last year.
Higher lumber prices and improved volumes that were partially offset by higher input costs and lower gypsum prices were cited by the Austin, Texas-based company as the cause of the improvement.
The segment also improved its operating loss for the year by posting a $19 million loss, which is an improvement from the $27 million operating loss it posted in 2009. The building products segment also generated $22 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), which was a $5 million increase from 2009.
Overall, Temple-Inland posted a net income of $168 million for 2010, a decrease from the $209 million net income the company posted in 2009. The company posted a net income of $27 million during the fourth quarter, a fall from the $38 million net income posted during the same period in 2009.
"We had an outstanding year as we delivered strong operating results and cash flow from operations in 2010," said Temple-Inland chairman and CEO Doyle R. Simons. "Our consolidated return on investment was 8.2%, up from 7.0% in 2009."
Simons said the building products segment will focus on generating cash and returning to profitability.