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TEMPLE-INLAND INC. REPORTS LOWER EARNINGS FOR SECOND QUARTER

 DIBOLL, Texas, July 19 /PRNewswire/ -- Temple-Inland Inc. (NYSE: TIN) today reported lower earnings for the second quarter due to severely depressed earnings in the paper segments and higher net interest charges. These reductions more than offset improved earnings of the financial services group and sharply higher earnings at the building materials group.
 Earnings per share for the second quarter were $.38, down from $.85 per share in the second quarter of last year.
 Combined operating earnings totaled $49.2 million in this year's second quarter, down from $71.7 million in the comparable 1992 quarter. Revenues in this year's quarter totaled $702.6 million.
 For the first six months of this year, earnings per share (including accounting changes reported in the first quarter) were $1.78, up 20 percent from the $1.48 per share recorded in the first half of 1992.
 Container and containerboard earnings of $11 million were down 65 percent from last year even though domestic box shipments were up slightly from last year's levels. The deterioration in other global economies has resulted in a decline in the selling prices of containerboard and continued margin erosion.
 The company's containerboard mills had near record production of 630,000 tons in the second quarter and, with the declining export volumes, inventories have now grown above targeted levels. Assuming these conditions continue, the company will take unscheduled downtime at its linerboard mills in the second half to reduce inventories by at least 30,000 tons.
 The bleached paperboard group operated at a break-even level compared with earnings of $10 million in the second quarter of 1992. Markets for bleached board and pulp continued to deteriorate and resulted in a less than desirable product grade mix that more than offset productivity improvements.
 Demand for building products remained excellent with earnings of $22.7 million up from $12.1 million last year. While prices for lumber and plywood were down substantially from the first quarter peak, the group experienced improved pricing for virtually all of its other products.
 Earnings for the financial services group of $18.5 million were ahead of last year's second quarter of $18 million. The savings bank continued to experience growth in its loan portfolio which more than offset the decline in the net interest margins of the bank's other investments. A continued focus on controlling expenses further enhanced earnings. Deposits at the savings bank increased in the quarter for the first time since the end of 1991.
 The mortgage banking operation maintained its record profitability with new loan originations of $1.3 billion. The mortgage bank is now servicing almost $8 billion on mortgages.
 In June, the company announced the discontinuation of its general contracting operation. This unit had a loss of $3 million in the second quarter, primarily because of an adverse arbitration ruling. Operations should be virtually concluded in the next six months.
 In announcing results, Temple-Inland's chairman and CEO, Clifford J. Grum, said "The global depression outside the U.S. continues to be a major problem for our paper operations. Both building materials and financial services should have record years, but a recovery in paper markets is not expected during the next six months."
 TEMPLE-INLAND INC. AND SUBSIDIARIES
 (UNAUDITED)
 (in thousands, except per share amounts)
 Second Quarter First Six Months
 1993 1992 1993 1992
 Total Revenues $702,600 $684,400 $1,385,400 $1,342,400
 Manufacturing Net
 Sales 543,700 523,500 1,080,400 1,009,000
 Income before
 accounting changes 20,900 47,700 48,900 82,500
 Net income 20,900 47,700 98,900 82,500
 Weighted avg. shares
 outstanding 55,571 55,582 55,595 55,585
 Earnings per share:
 Before accounting
 changes $ 0.38 $ 0.85 $ 0.88 $ 1.48
 Effect of accounting
 changes --- --- 0.90 ---
 Earnings per share $ 0.38 $ 0.85 $ 1.78 $ 1.48
 Business Segments
 Revenues
 Container and
 Containerboard $319,600 $319,000 $ 638,100 $ 615,100
 Bleached Paperboard 86,900 85,800 175,700 177,300
 Building Products 118,700 101,500 236,700 190,100
 Other Activities 18,500 17,200 29,900 26,500
 Manufacturing net
 sales 543,700 523,500 1,080,400 1,009,000
 Financial Services 158,900 160,900 305,000 333,400
 Total Revenues $702,600 $684,400 $1,385,400 $1,342,400
 Income
 Container and
 Containerboard $ 11,000 $ 31,500 $ 27,500 $ 56,800
 Bleached Paperboard 0 10,000 100 16,000
 Building Products 22,700 12,100 49,100 20,300
 Other Activities (3,000) 100 (3,000) (400)
 Operating Profit 30,700 53,700 73,700 92,700
 Financial Services 18,500 18,000 35,500 37,200
 Combined operating
 earnings 49,200 71,700 109,200 129,900
 Corporate expenses (2,700) (4,100) (5,700) (8,300)
 Parent company
 interest - net (17,700) (10,800) (35,200) (22,300)
 Other - net 1,100 700 1,600 100
 Income before taxes
 and accounting
 changes 29,900 57,500 69,900 99,400
 Taxes on Income 9,000 9,800 21,000 16,900
 Income before
 accounting changes $ 20,900 $ 47,700 $ 48,900 $ 82,500
 Cumulative effect of
 accounting changes --- --- 50,000 ---
 Total $ 20,900 $ 47,700 $ 98,900 $ 82,500
 -0- 7/19/93
 /CONTACT: Joseph M. Areddy of Temple-Inland Inc., 317-879-4328/
 (TIN)


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

KL -- CL006 -- 2968 07/19/93 10:22 EDT
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