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Temple-Inland may be improving as an opportunity
August 3, 2008
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Temple-Inland Inc. posted better-than-expected second-quarter results Wednesday. The company earned 7 cents a share, compared with expectations for a 5-cent loss. Revenue fell 3 percent from the previous year to $991 million, but still came in collier county business opportunity $12.5 million ahead of the consensus analyst estimate.
Operating training opportunity to keep learning income fell in Temple-Inland's two business units � corrugated packaging new opportunity email (80 percent of small franchise business opportunity information revenue) and building products (20 percent of revenue) � because of higher energy costs, lower opportunity incorporated montana gypsum prices and vancouver bc unix opportunity falling construction demand.
As a result, at Friday's closing price of $15.97, the stock is down about 32 percent over the past year. Still, shares have bounced back from a low of just $10.53 back on July 3.
With that in mind, I'm here to answer readers' questions: Should you preparation meets opportunity buy it? Can Temple-Inland fight against multiple headwinds and continue to exceed investor expectations, or is the stock headed back down toward its recent lows?
The upside this quarter was driven by higher box prices in the corrugated-packaging division, as well as aggressive cost cutting across the board.
Even so, that wasn't enough to stop the analysts at Credit performance and opportunity gaps Suisse from downgrading Temple-Inland pokemon a golden opportunity episode dvd Wednesday, from "outperform" to "neutral," citing valuation.
It's also worth noting that despite the better-than-expected quarter, the company's full-year earnings are expected to drop for a third straight year to a loss of 10 cents a share. In comparison, Temple-Inland earned $1.87 back in 2006.
As a result, the company's 10-cent quarterly dividend (2.6 percent yield) could be at risk, especially employment opportunity at walmart if customer demand remains soft, and management looks for other places to cut costs.
In the meantime, the chaplain indiana job openings opportunity company has a lot of debt on the balance sheet, equal to 138 percent of common equity. That said, Temple-Inland maintains a BBB- corporate rating with S&P, and no major maturities are set to come due until 2012.
The company is beginning to realize some pricing power in its cardboard-box business, but given the recent rebound in the shares, I believe that readers should remain on the sidelines for now.
Temple-Inland's aggressive cost-cutting should help it return to profitability in 2009, but I do not expect a material turnaround in the building-products division to materialize in opportunity to commit fraud the coming quarters � which is what will likely be needed for the federal funding opportunity - alabama mbec stock to move back up toward mer opportunity tracks mgs $20.
ON THE WEB: Visit our Web site, www.app.com, and click on this story for a link to a bonus Jonathan Weil fundraising business opportunity column.
David Peltier adventure club business opportunity is a research associate for TheStreet.com (www.thestreet.com?puc=app), where this column appears as "Should You Buy It?" He also writes the newsletters "TheStreet.com Dividend Stock Advisor" and "TheStreet.com Value Investor". Peltier doesn't own or short stock.
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