(RTTNews) - Corrugated packaging and building product maker Temple-Inland Inc. (TIN: News ) Thursday reported a significant rise in profit for the third quarter, benefiting mainly from an increase in operating income from the corrugated packaging segment. The company's adjusted earnings came in well ahead of analysts' consensus.

Temple-Inland's third quarter net income attributable to the company rose to $67 million or $0.61 per share from $3 million or $0.03 per share a year ago. Results for the quarter include alternative fuel mixture credits, net of costs of $42 million and loss on purchase and retirement of long-term debt of $2 million.

On an adjusted basis, net income was $27 million or $0.24 per share, compared to a loss of $3 million or $0.03 per share in the previous year.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined to $885 million from $976 million a year ago, yet topped analysts' revenue estimate of $875.78 million.

Revenues from corrugated packaging declined to $734 million from $797 million last year. Revenues from building products declined to $151 million from $179 million in the previous year.

Total segment operating income rose to $90 million from $50 million last year.
Corrugated Packaging operating income improved in third quarter 2009, compared to third quarter 2008 due to lower mill and converting costs, the benefits of the PBL acquisition and less downtime more than offset lower box prices.

Building Products operating results improved in third quarter 2009 compared with third quarter 2008 as lower costs in all products and higher gypsum volumes more than offset lower prices for all products and lower volumes for lumber and particleboard.

Other operating income for the quarter was $68 million, compared to an expense of $1 million last year.

Interest expense on debt for the quarter declined to $14 million from $21 million last year.

For the nine-month period, net income was $168 million or $1.55 per share, compared to a loss of $2 million or $0.02 per share in the same period of the previous year. Total revenues for the period declined to $2.73 billion from $2.91 billion last year.

TIN is currently trading at $17.57, up 0.65 or 3.85%, on a volume of 1.55 million shares on the NYSE.

To receive FREE breaking news email alerts for Temple Inland Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com