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Willamette 3Q shrinks
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October 10, 2001: 8:44 a.m. ET
But the forest products maker easily surpasses Wall Street estimates.
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NEW YORK (CNNmoney) - Paper-products maker Willamette Industries Inc. reported third-quarter earnings Wednesday that surpassed Wall Street expectations, as its packaging products for consumer necessities helped it overcome a slowing economy and higher costs.
The Portland, Ore.-based company reported earnings in the quarter ended Sept. 30 of $73.8 million before one-time items, or 67 cents a share, compared with $83.4 million, or 76 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call expected Willamette to earn just 52 cents a share.
Willamette's sales for the third quarter were $1.1 billion, compared with $1.2 billion a year ago. The company said its earnings were lower than the prior year because the prices of its raw materials were higher.
The company said prices for its corrugated-paper products held up despite a prolonged slowdown in the U.S. economy. Because more than 60 percent of Willamette's corrugated products business is in food, beverage and consumer staples, Willamette said it might weather the slowdown better than it expected.
"Despite a tough market environment, we believe our performance measures will again put us at or near the top of the industry," said CEO Duane McDougall.
McDougall offered no guidance about fourth-quarter earnings, saying it was too early to determine the impact of the Sept. 11 terror attacks on the economy and the paper-products industry.
"The tragic events in New York and Washington, D.C., have created a great deal of economic uncertainty," McDougall said.
Willamette (WLL: Research, Estimates) shares closed Tuesday up 20 cents at $44.60. 
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