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Temple-Inland 3Q Profit Jumps On Tax Gain, Improved Operations

DOW JONES NEWSWIRES

Temple-Inland Inc.'s (TIN) third-quarter profit surged amid a tax gain as the manufacturer of corrugated packaging and building products again said it sees signs that the economy is stabilizing.

Chief Executive Doyle Simons reiterated that economic conditions appeared to be stabilizing and "appear to be on a slow path to recovery," echoing comments from July.

Temple-Inland reported third-quarter earnings of $67 million, or 61 cents a share, up from $3 million, or 3 cents, a year earlier. Excluding items such as tax gain, earnings would have been 24 cents, compared with a 3-cent loss last year.

Revenue fell 9.3% to $885 million.

Analysts had most recently forecast earnings of 18 cents a share on $876 million in sales.

The company's corrugated packaging segment, which accounts for most of its business, saw revenue slide 7.9% and earnings rise 88% on an acquisition and cost cuts. Its smaller building products division saw a drop of 16% in revenue and a one-third gain in earnings.

Shares of Temple-Inland closed at $16.88 Wednesday and didn't trade premarket.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@ dowjones.com

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