Fibreboard Selling WoodBusiness To SierraPacific

Fibreboard Corp., Walnut Creek, Ca., has signed a letter of intent to sell its wood products business to Sierra Pacific Industries, Redding, Ca., for $240 to $250 million.

The transaction, still subject to final agreement plus company and regulatory approval, is expected to take several months.

News of the sale came just two week's after Fibreboard announced it hoped to sell all or part of its wood products business, including about 80,000 acres of timberland in California, plus sawmills in Standard and Chinese Camp, a hardwood plywood plant in Standard, a moulding and millwork facility in Red Bluff and a

Lumbermen's of Washington, Inc., Olympia, Wa., has acquired Empire Building Supply, Klamath Falls and Medford, Or., and Truss Span Corp., Auburn, Wa.

Truss Span is a provider of roof truss systems in the Puget Sound area, while Empire sells building materials decorative bark plant in Keystone, Ca. in Klamath County and manufactures trusses in the Medford market. "The southern Oregon area has been a target market for some time," said pres. M. David Dittmer.

"While wood products is an excellent long-term business, the shortterm prospects are uncertain due to its cyclical nature as reflected in the current sluggishness in wood products markets," said chairman and ceo John Roach.

He said the company wants to concentrate on vinyl building products and industrial insulation.

The company also announced it plans to buy back $20 million of its shares, triggering its stock price to rise l5Vo to a new high. The price rose another lSVo on news of the Sierra Pacific deal.

Following two-week transition periods, Empire reopened June 26 and Truss Span reopened June l9 as Lumbermen's.

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Slipping stock values are forcing Eagle Hardware & Garden to slow its planned expansion over the next few years.

Eagle's stock price is currently under pressure because, although the chain's total sales continue to climb, sarne-store sales slipped 2Vo lastyear. Shares that sold for $12.25 ayeat ago now trade at about $7.

The chain has grown to 22 stores from one in 1990. New stores were opened in May in Orem, Ut., and Issaquah and Lynnwood, Wa. Two units will be added in the third quarter, the company's first in Denver, Co.

Three to five soores will be added next year, although additional capital is required. The method for raising the funds (more stock or more debt) has not been determined.

Chainnan and ceo David Heerensperger said the company might expand into the Portland, Or., market through acquisition. He said Portland-area HomeBase stores are for sale, but the units would have to be remodeled and expanded.

Eagle is also considering a scaledback concept for small markets, such as Wenatchee, Wa., and Bend, Or., that could still maintain the Eagle marketing concept of "more of everything."

U.S. lumber imports in first quarter 1995 climbed 4.7Vo over first quarter 1994 to 3.91 billion bd. ft., according to the Comnerce Deparfinent.

Canadian mills continued to supply the majority (97.gVo), shipping 3.82 billion bd. ft. in the quarter, up 4.4Vo.

Non-Canadian imports rose over 20Vo to 85.7 million bd. ft.

Western Wood Products Association forecasts lumber imports to increase just 0.2Vo thrs year to 16.41 billion bd. ft. Non-Canadian imports are predicted to rise from 318 million to 500 million bd. ft.. with Canadian imports slipping O.9Vo to 15.9 billion ft.

President Clinton vetoed the $16.5 billion rescissions bill that included an amendment that exempted salvage logging on disaster-stricken national forests from environmental laws. Although Clinton principally objected to the package's cuts in educa- tional programs, he called the timber salvage plan a "very bad environmental provision." lfensn-*M: LAMTNATED DouGLAS FIR VENEERS FOR ADDED STRENGTH, WORKABILIry AND uNf FoRMlw. 1-314', THICK.

"The bad news is good times don't last forever, The good news is neither do the bad."

- Mike Mackin, sales mgr., Hanel Lumber Co., Odell, Or.

The Taylor-Dicks-Gorton emergency timber salvage sale amendment called for salvaging more than 8 billion bd. ft. of timber through 1997 (see The Merchanf, May, p.23).

Republican Congressmen admitted they did not have the votes to override the veto. Congress is expected to revamp and resubmit the spending bill later this year. Industry sources anticipate the salvage amendment will be included, although Clinton's opposition to it makes its reinsertion uncertain.

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Wholesaler-distributors' confiJence in current business conditions increased on a short-term basis, but decreased slightly over the long-term, according to the National Association of Wholesaler-Distributors' confidence index.

The ability to maintain first quarter 1995 sales levels into the second quarter led to short-term optimism. Respondents were less confident in the long-term, due to uncertainty over Federal Reserve interest rate policy and the continued impact of already established higher rates on customers' spending patterns.

Baker Plywood Co., Costa Mesa, Ca., has been closed by retiring owner Clarence Gonser.

The inventory was sold to Barr Lumber Co. and, as part of the agreement with Barr, the property will be leased to a non-lumber business.

T\e 79-year-old Gonser, in the industry "since I was a kid," acquired the company in 1963, a few years after it was founded as Metropolitan Plywood. It moved to its last location in 1971.

FOR DOMESTIC SALES CALL: Jerry Long. Michael Parrella. Lynn Bethurum. Janet Parrella, Pete Ulloa. Bruce Keith. Matt Petersen. Jim Lawson.

FOR INTERNATIONAL SALES CALL: Nestor Pimentel. Abel Flores.

The first industrywide, interactive satellite broadcast for wholesalers and distributors with downlinks throughout the U.S. and Canada will be aired by the National Association of Wholes aler-Distributors.

On-camera experts Bruce Merrifield, Menifield Consulting; Gordon Graham, Inventory Mangement; Steve Samek and Pat Dolan, Arthur Andersen, and Michael Marks, Indian River Consulting Group, will address "Facing the Forces of Change: Transforming Your Business with Best Practices."

The three-hour program will be transmitted live Nov. 9 via a communciations satellite so audiences at specially equipped sites around the country can simultaneously participate by phone or FAX.

Locations selected include Boise, Id.; Denver, Co.; Phoenix, Az.; Portland, Or.; Seattle, Wa., and Los Anqe- les, Orange County, San Francisco and San Jose, Ca.

The Chicago Mercantile Exchange has applied to the Commodity Futures Trading Commission to reduce the size of its 160,000 bf Random Length Lumber contract by half.

Pending approval, the contract would reduce the deliverable underlving product from two rail cars to one car, a more common industry unit. It includes corresponding reductions in the contract performance bond and increases in position limits.

The move comes in response to interest from retailers, wholesalers. builders and mills who believe a reduction in size would increase liquidity in the contract and allow commercial users to fine-tune their hedges. The modifications would become effective July 31, 1995, beginning with contracts for May 1996.

Jack Kemp, former N.Y. Congressman and chairman of the Republican Party's Tax Reform Commission, will keynote the APA - The Engineered Wood Association's 59th annual meeting Sept. 24-26 in Rancho Mirage (Palm Springs), Ca.

Kemp's commission is developing a "fairer, flatter and simpler" alternative tax system, and their report is expected in September, in time for APA's meeting.

The meeting will also feature Info Fair, featuring exhibits by equipment manufacturers, transportation companies, insurance providers, consultants and others product and service suppliers.

President Clinton has unveiled plans to make it easier for Americans to buy their first homes.

A coalition of government entities and banking, real estate and construction groups has been formed to simplify mortgage procedures and reduce closing costs.

Since 1980, home ownership has declined from 65Vo to 64Vo of all households. The Administration hopes to increase that total by about 8 million units to 67.5Vo bv the end of the decade.

A small fire broke out recentlv at Dixieline Lumber, Escondido, Ca., but was contained by the sprinkler system before causing any damage. The fire, which broke out under a paint counter around 9 p.m. May 17, was confined to a 3x4 ft. area until firefighters arrived.

A record 3,800 building professionals attended Payless Cashways' recent California Contractor Night at the Arco Arena, Sacramento, Ca.

"The traffic through our displaY was non-stop over the course of the six-hour show." said Dick Connell, who handed out 2,700+ pieces of literature at the Western Wood Products Association's booth.

One for the Coincidence File, suPplied by Dwight Curran, DMK-Pacific, Fremont, Ca.:

His son. First Lt. Dennis Curran, recently transferred to Fairchild Air Force Base, Spokane, Wa., where he was introduced to U.S. Air Force Gen. Gary Voellger. The men discovered that they not only were both from Fremont, but that they had lived on the same street and in the same house. Voellger lived in the house from 1957 to 1970. The Currans bought the house in 1986.

Humboldt Hoo-Hoo Club will hold its annual golf outing Aug. 11 at the Baywood Country Club, Arcata, Ca' Start time is I l:59 a.m., with cocktails at 5:30 p.m. and dinner from 7-9 P'm'

A cocktail party will be held the preceding day from 6-8:30 p.m. at the historic Ingomar Club in nearbY Eureka.

W.O.O.D.. Inc. has slated its 35th annual golf tournament for Aug. 7 at the Lakewood Country Club, Lakewood, Co.

The two-man scramble format tourney will be followed by dinner'

TREATED LUMBER