Friday, January 24, 2014

Vaya con Dios, Temple-Inland

Walking across a yard near Philadelphia earlier this week, I had a twinge of nostalgia as I saw this bundle of Temple-Inland lumber. It may be the last one I ever see.



As you may recall, Temple-Inland was purchased by International Paper in 2011. Last year, Georgia-Pacific purchased the portion of the company that was formerly called Temple-Inland Building Products Group, and for the employees employed at the Temple facilities, the process of being integrated into the larger G-P began in earnest. I haven't heard what the schedule is for re-labeling the various Temple products as Georgia-Pacific products, but I'm pretty sure this bundle of lumber may be one of the last I ever see with the Temple-Inland brand.

Well, so it goes. The folks I worked with at those Temple-Inland mills were some of the best, and I hope their new bosses at G-P treat them right. Perhaps G-P can show the rest of the world that there is a beneficial, productive way to employ newly-acquired assets and the folks who run them. That is a story I would love to write about.

Adios, Temple-Inland. Vaya con Dios.


4 comments:

JLK said...

All thanks to Carl Icahn and his trail of wreckage.
JLK

MJJ said...

I sympathize with JLK's sentiment and admittedly do not know the circumstances that ultimately brought Temple-Inland to its end. The company may have been run by wonderful, talented people, but it evidently was not maximizing the return on its assets or it would never have come to the attention of Carl Icahn.

While Icahn may take heat for the painful consequences of his actions, the hard fact in such cases is normally that if the assets had been optimally managed, there would have been no opportunity for an outsider to profit by getting involved.

We must all be good stewards of the resources entrusted to us, or they will one day be taken away and given to another who will better manage them. Icahn and his kind (ilk, if you prefer) have made fortunes by recognizing underperforming operations and moving in to more efficiently and effectively utilize their assets.

Fault for the "trail of wreckage", then, more typically and truly lies with any management that, as a consequence of not making hard and timely decisions to run their operations optimally, puts them in a compromised position which opens the door to outsiders willing to make the changes necessary to remedy, and profit by, the situation.

I therefore find it hard to fault those who avail themselves of such opportunity, or to criticize them for what they choose to do with the assets they have purchased with their own money.

Anonymous said...

No it was not entirely the fault of Icahn, because a vote to keep integrated companies like Temple on a level tax playing field with the TIMO's and REIT's failed by one vote, on the vote of the Louisiana Senator Landrieu, where Temple had mills and forest.

And yes Temple did not manage their assets exclusively for maximum return, because they had a land and environmental ethic that was unmatched in the industry. The TIMO who controls their lands now definitely cannot be accused of continuing the management in that fashion.

sepatu murah said...

No it was not entirely the fault of Icahn, because a vote to keep integrated companies like Temple on a level tax playing field with the TIMO's and REIT's failed by one vote, on the vote of the Louisiana Senator Landrieu, where Temple had mills and forest.

And yes Temple did not manage their assets exclusively for maximum return, because they had a land and environmental ethic that was unmatched in the industry. The TIMO who controls their lands now definitely cannot be accused of continuing the management in that fashion.