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TEMPLE-INLAND INC. REPORTS THIRD QUARTER EARNINGS

 DIBOLL, Texas, Oct. 18 /PRNewswire/ -- Temple-Inland Inc. (NYSE: TIN) today reported earnings per share for the third quarter of $.21, down from last year's third quarter earnings of $.71 per share. Earnings continue to be disappointing and reflect the very difficult conditions prevailing in today's paper markets. Building products and financial services both had excellent quarters, helping to offset the decline in the paper segments.
 The first nine months' earnings of $1.99 per share (including accounting changes required), were down 9 percent from the $2.19 recorded in the first nine months of last year.
 Revenues for the quarter were $681 million, up from last year's third quarter. Year-to-date revenues total $2.1 billion compared with the previous year's $2.0 billion.
 Although corrugated box volume in the U.S. has grown moderately, it has failed to keep up with the expanded supply of containerboard which has resulted from additional production capacity and weak exports. This, in turn, has caused excessive inventories resulting in lower selling prices for containerboard and corrugated boxes.
 During the quarter, the company decided to curtail production at some containerboard mills to prevent inventories from increasing further. Approximately 23,000 tons were taken out of production during the quarter, and the expense of this downtime, combined with weaker margins on corrugated box sales, reduced container and containerboard profits to $2.6 million, down $8.4 million from this year's second quarter.
 Markets for bleached paper products continue to deteriorate, especially the pulp category which normally represents about 20 percent of total production. Prices for market pulp declined substantially below its cost levels. The decision was made to discontinue this product and take selected downtime on the paper machines. The bleached paperboard group experienced a loss of $6.3 million in the third quarter, compared to break-even results in the second quarter of this year, reflecting deterioration in prices, product mix, as well as additional costs related to the production curtailments. The new hardwood fiber line did provide some cost efficiencies in the quarter as startup operations improved.
 Building products had an excellent quarter with earnings of $23.0 million, up slightly from the level achieved in the second quarter. Product prices for lumber and plywood were down slightly from second quarter levels, while most other building products enjoyed better margins. Continuing production efficiencies helped to offset the higher cost of wood fiber.
 Product pricing for most building materials is very volatile and normally the fourth quarter is seasonally weaker than the third quarter. However, entering the fourth quarter, lumber and plywood prices are substantially improved over the average for the third quarter and strong pricing prevails in other categories.
 The financial services group had another excellent quarter with record third quarter earnings of $16.5 million. The mortgage banking unit, with $1.3 billion of mortgage originations, equaled last quarter's record level of production, and also improved profitability.
 The net interest spread at the savings bank continued to deteriorate, largely because of the decision to re-invest cash flow in shorter term investments in anticipation of the acquisition of American Federal Savings & Loan, which is now expected to be completed next month.
 In announcing results, Clifford J. Grum, chairman and chief executive officer, said, "The tone of both our paper markets is improving and we have begun price restoration efforts in both containerboard and corrugated boxes. Demand for our bleached paperboard products normally improves in the fourth quarter, therefore we anticipate improved profitability in the paper groups with another good quarter expected from building products and financial services."
 TEMPLE-INLAND INC. AND SUBSIDIARIES
 (UNAUDITED)
 (in thousands, except per share amounts)
 Third Quarter First Nine Months
 1993 1992 1993 1992
 Total Revenues $680,900 $672,200 $2,066,300 $2,014,600
 Manufacturing net
 sales 518,500 521,700 1,598,900 1,530,700
 Income before
 accounting changes 11,400 39,200 60,300 121,700
 Net income 11,400 39,200 110,300 121,700
 Weighted avg. shares
 outstanding 55,510 55,541 55,528 55,570
 Earnings per share:
 Before accounting
 changes $ .21 $ .71 $ 1.09 $ 2.19
 Effect of accounting
 changes --- --- 0.90 ---
 Earnings per share $ .21 $ .71 $ 1.99 $ 2.19
 Business Segments
 Revenues
 Container and
 containerboard $307,700 $315,600 $ 945,800 $ 930,700
 Bleached paperboard 75,600 86,600 251,300 263,900
 Building products 119,300 98,100 356,000 288,200
 Other activities 15,900 21,400 45,800 47,900
 Manufacturing net
 sales 518,500 521,700 1,598,900 1,530,700
 Financial Services 162,400 150,500 467,400 483,900
 Total Revenues $680,900 $672,200 $2,066,300 $2,014,600
 Income
 Container and
 containerboard $ 2,600 $ 29,100 $ 30,100 $ 85,900
 Bleached paperboard (6,300) 5,400 (6,200) 21,400
 Building products 23,000 9,500 72,100 29,800
 Other activities (400) 500 (3,400) 100
 Operating Profit 18,900 44,500 92,600 137,200
 Financial Services 16,500 16,200 52,000 53,400
 Combined operating
 earnings 35,400 60,700 144,600 190,600
 Corporate expenses (2,800) (3,900) (8,500) (12,200)
 Parent company
 interest - net (16,700) (11,100) (51,900) (33,400)
 Other - net 300 1,500 1,900 1,600
 Income before taxes
 and accounting
 changes 16,200 47,200 86,100 146,600
 Taxes on Income 4,800 8,000 25,800 24,900
 Income before
 accounting changes 11,400 39,200 60,300 121,700
 Cumulative effect of
 accounting changes --- --- 50,000 ---
 Total Income $ 11,400 $ 39,200 $ 110,300 $ 121,700
 -0- 10/18/93
 /CONTACT: Joseph M. Areddy, of Temple-Inland Inc., 317-879-4328/
 (TIN)


CO: Temple-Inland Inc. ST: Texas IN: PAP FIN SU: ERN

AR-TJ -- CL011 -- 3285 10/18/93 10:33 EDT
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Date:Oct 18, 1993
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