Printer Friendly

ABITIBI-PRICE REDUCES LOSS IN SECOND QUARTER, CONTINUING YEAR-OVER-YEAR IMPROVEMENT

 TORONTO, July 21 /PRNewswire/ - Abitibi-Price today reported for the three months ended June 30, 1993 a loss from continuing operations of $18.2 million, or 27 cents per common share, an improvement over its 1992 second quarter loss from continuing operations of $37.5 million or 55 cents per share. The latest results are also improved from the first quarter 1993 loss from continuing operations of $28.8 million or 42 cents per share.
 The operating loss from continuing operations for the second quarter of 1993 has been reduced to $8 million, significantly less than the operating loss of $23.9 million in the first quarter of the year, and the $35.9 million loss in the second quarter of 1992.
 For the second quarter, higher transaction prices were principally responsible for the increase in net sales to $492.7 million from $414 million for the same quarter of 1992.
 Ron Oberlander, president and chief executive officer of the company said, ``Economic recovery and growth in the sectors that drive advertising in our principal markets are long overdue and this slower than expected recovery will make profitability difficult to attain in 1993. However, we are encouraged by the year-over-year improvement that we have had each quarter this year.''
 The improvement in the company's newsprint operations was driven by higher North American transaction prices, a weaker Canadian dollar relative to the U.S. dollar and reduced operating costs. Compared with the second quarter of 1992 newsprint sales improved by 17 per cent and operating losses were reduced by $20 million.
 Recovery has been slow for the company's uncoated groundwood paper business as evidenced by the drop in transaction pricing that occurred in the first quarter of 1993. In the second quarter, operating losses for these grades were reduced as a result of higher sales volumes and more favourable exchange rates.
 In the second quarter, the Office Products division's sales and operating profit continued to improve as it expands its product lines in both North America and Europe.
 In converting products, the improvement in Hilroy's profitability has been the result of significant restructuring of its production and order systems. Price Wilson's cost reduction programs have brought this division back to break even.
 In June, the Board of Directors suspended payment of the company's common share quarterly dividend. ``This decision, while a difficult one, was made to conserve cash given the uncertainty of the immediate market outlook,'' commented Mr. Oberlander.
 Abitibi-Price, a Canadian-based forest products company, manufactures newsprint and uncoated groundwood papers at eleven mills in North America and markets these products to customers around the world. The company is also a converter and distributor of paper and other information-related products.
 ABITIBI-PRICE INC.
 CONSOLIDATED EARNINGS
 (unaudited)
 Three months ended Six months ended
 June 30 June 30
 (millions of Canadian 1993 1992(1) 1993 1992(1)
 dollars)
 Net Sales $ 492.7 $ 414.0 $ 964.1 $ 793.0
 Cost of sales 452.0 401.9 897.6 773.9
 Selling and
 administrative expenses 27.3 25.0 55.7 48.2
 Depreciation and
 depletion 21.4 23.0 42.7 46.0
 500.7 449.9 996.0 868.1
 Operating loss from
 continuing operations (8.0) (35.9) (31.9) (75.1)
 Loss from newsprint
 joint ventures,
 before income
 taxes (5.6) (11.4) (14.7) (22.1)
 Interest expense
 - long-term (9.1) (6.7) (18.2) (13.6)
 - short-term (0.3) (1.3) (0.5) (2.0)
 Other income and
 expense
 - net (1.6) (3.4) (1.5) (6.0)
 Loss from continuing
 operations before
 income taxes (24.6) (58.7) (66.8) (118.8)
 Recovery of
 income taxes 6.4 21.2 19.8 43.4
 Loss from continuing
 operations (18.2) (37.5) (47.0) (75.4)
 Discontinued operations -
 Loss from discontinued
 operations, net of
 income taxes of $2.1
 and $4.3 respectively - (3.8) - (7.5)
 Loss on disposal
 of discontinued
 operations, net of
 income taxes of $0.9 (1.6) - (1.6) -
 Loss from discontinued
 operations (1.6) (3.8) (1.6) (7.5)
 Loss for the period (19.8) (41.3) (48.6) (82.9)
 Provision for dividends
 on preferred shares (0.3) (0.4) (0.7) (0.8)
 Loss attributable to
 common shareholders $ (20.1) $ (41.7) $ (49.3) $ (83.7)
 Per common share:
 Loss from continuing
 operations $ (0.27) $ (0.55) $ (0.69) $ (1.11)
 Loss (0.29) (0.60) (0.71) (1.21)
 Dividends declared $ - $ 0.125 $ 0.125 $ 0.25
 Weighted average
 number of common shares
 outstanding
 (millions) 69.3 69.3 69.3 69.3
 (1) The 1992 results have been restated as the Company reclassified its Building Products, Paper Distribution and Coated Papers businesses to discontinued operations during the third quarter of 1992.
 ABITIBI-PRICE INC.
 CONSOLIDATED SEGMENTED INFORMATION
 (unaudited)
 (millions of Canadian Three months ended Six months ended
 dollars) June 30 June 30
 1993 1992 1993 1992
 SALES
 Newsprint $246.9 $211.1 $486.3 $395.1
 Groundwood papers 79.6 68.4 151.2 145.9
 Office products and
 converted products 117.7 93.0 225.1 179.6
 Lumber and other 48.5 41.7 101.5 73.1
 Intersegment eliminations - (0.2) - (0.7)
 Net sales $ 492.7 $ 414.0 $ 964.1 $ 793.0
 OPERATING LOSS
 Newsprint $ (8.9) $ (28.6) $ (23.1) $ (61.8)
 Groundwood papers (4.1) (8.8) (15.4) (10.5)
 Office products and
 converted products 5.6 1.7 7.5 (1.2)
 Lumber and other (0.6) (0.2) (0.9) (1.6)
 Operating loss $ (8.0) $ (35.9) $ (31.9) $ (75.1)
 PRIMARY PRODUCTION
 Three months ended Six months ended
 June 30 June 30
 (figures in thousands) 1993 1992 1993 1992
 Newsprint (tonnes) 420 468 896 854
 Groundwood papers
 (tonnes) 110 93 211 199
 Lumber (mfbm) 17 14 18 33
 -0- 7/21/93
 /CONTACT: Eileen A. Mercier, Senior Vice-President, Finance, 416-369-6981; Robert J. Tait, Manager, Investor Relations, 416-69-6789/
 (A. ABY)


CO: Abitibi-Price Inc. ST: Ontario IN: PAP SU: ERN

DH -- NY112 -- 4192 07/21/93 17:54 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 21, 1993
Words:1008
Previous Article:THE NEW YORK TIMES COMPANY REPORTS SECOND QUARTER RESULTS
Next Article:BAKER TO POST LOSS DUE TO EXTRAORDINARY CHARGES
Topics:


Related Articles
ABITIBI-PRICE MAINTAINS ITS BALANCE SHEET AND CASH FLOW IN A TOUGH YEAR
ABITIBI-PRICE MAINTAINS ITS BALANCE SHEET AND CASH FLOW IN A TOUGH YEAR
ABITIBI-PRICE INCURS SECOND QUARTER LOSS; ARRANGES ASSET SALES TO STRENGTHEN CORE BUSINESS
ABITIBI-PRICE RESTRUCTURES TO ADVANCE STRATEGIC PLAN
ABITIBI-PRICE RECORDS LOSS OF $219 MILLION, AS CONTINUED OVERSUPPLY ERODES PAPER PRICES IN 1992
ABITIBI-PRICE RECORDS YEAR-OVER-YEARIMPROVEMENT IN FIRST QUARTER RESULTS
ABITIBI-PRICE TURNS QUARTERLY OPERATING PROFIT
Abitibi-Price Reports Stronger Outlook Despite First Quarter Loss
ABITIBI-CONSOLIDATED REPORTS NET LOSS OF $35 MILLION; CONTINUES TO LOWER COSTS AND STRENGTHEN POSITION.
ABITIBI-CONSOLIDATED REPORTS THIRD QUARTER NET LOSS OF $37 MILLION; CONTINUES TO LOWER COSTS AND BALANCE SUPPLY.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters