Morningstar Rating

Stock Research and Analysis

by Daniel Rohr, CFA
While operating in an industry historically defined by highly variable demand, corrugated box producer Temple-Inland should suffer less from the ravages of cyclicality than many of its peers, owing to a customer base weighted toward less-cyclical segments   Read more 

Bulls Say

Temple-Inland's investments in boosting box plant efficiency and asset utilization appear to be bearing fruit.
Industry consolidation within the corrugated packaging market should produce more rational capacity management and pricing.
The spin-off of Guaranty and Forestar should translate to improved strategic focus and provide investors the option of investing only in the business lines they really like. Read more 

Bears Say

The outlook for the packaging industry appears difficult for U.S. producers, as box demand continues to lag U.S. GDP growth.
Asian box makers continue to ramp up capacity. Should capacity outstrip local demand, these manufacturers might turn to Temple-Inland's customers to sell excess inventory.
Temple-Inland's profitability is wedded to often-volatile commodity prices. Boom times can go bust in relatively short order. Read more 

Strategy

Asset utilization and operational integration are the heart of management's strategy for its corrugated packaging business. Temple-Inland's ability to produce linerboard and corrugating medium for use   Read more 

Management

Doyle R. Simons serves as Temple-Inland's chairman and CEO, roles he has held since the separation of Temple-Inland into three stand-alone companies. Simons joined the firm in 1992, holding a variety of positions before moving into the C-suite in late   Read more 

Profile

Following the spin-off of its financial services and land-development subsidiaries, Temple-Inland is focused on manufacturing packaging and forest products. Packaging is   Read more 

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