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ABITIBI-PRICE TURNS QUARTERLY OPERATING PROFIT

 TORONTO, Oct. 25 /PRNewswire/ -- Abitibi-Price (NYSE: ABY) today reported a third-quarter operating profit from its continuing operations of $3.9 million, a significant improvement from the operating loss of $8 million in the second quarter, and the $31.7 million operating loss recorded in the third quarter of 1992.
 Ron Oberlander, president and CEO of Abitibi-Price, said, "Our focus on increasing efficiency and cutting costs throughout our operations has mitigated the negative effects of low pricing resulting from the continued oversupply of newsprint and uncoated groundwood papers. This lower cost structure has resulted from reduced fiber costs, more efficient uses of power, and favorable labor contracts settled earlier this year."
 Although encouraging, the third quarter operating profit was not sufficient to cover interest and other expenses, nor have the newsprint joint ventures yet returned to profitability. As a result, the company recorded an after-tax loss from continuing operations of $25.3 million or 36 cents per common share in the third quarter, on net sales of $485 million. This is an improvement from the after-tax loss from continuing operations of $73.3 million or $1.06 per share in the same period of 1992, on sales of $438 million.
 In the fourth quarter of 1993, the company is taking the next major step to decentralize its core business activities by eliminating yet another layer in the company's selling, general and administrative functions. This will increase efficiency and reduce costs by an estimated $20 million per year on an annualized basis. An unusual charge of $16.1 million was recorded in the third quarter, principally to provide for the anticipated one-time cost of this restructuring.
 Including a $1.5 million after-tax loss from discontinued businesses, the company reported a net loss of $26.8 million or 38 cents per common share in the third quarter. This compares with a net loss of $68.7 million or $1.00 per share in the same period last year, including a $4.6 million after-tax gain from discontinued operations.
 In September, the company issued eight million common shares at a price of $12.75 per share for total cash proceeds of $102 million. The net proceeds were used to replenish working capital and to repay short-term debt. On Oct. 15, 1993, the company completed a private placement financing in the amount of U.S. $200 million. This financing has lengthened the average term of the company's long-term debt, and no major repayments are due until 1997.
 Abitibi-Price, a Canadian-based forest products company, manufactures newsprint and uncoated groundwood papers at 11 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, unaudited; in millions of Canadian dollars)
 Period ended Sept. 30: Three months Nine months
 1993 1992 1993 1992
 Net Sales $485.2 $438.1 $1,449.3 $1,231.1
 Cost of sales 434.9 423.1 1,332.5 1,197.0
 Selling & admin. exps. 25.4 23.6 81.1 71.8
 Deprec. & depletion 21.0 23.1 63.7 69.1
 Total: 481.3 469.8 1,477.3 1,337.9
 Oper. profit (loss)
 from cont. operations 3.9 (31.7) (28.0) (106.8)
 Loss from newsprint jt.
 ventures, bef. inc.taxes (9.7) (12.6) (24.4) (34.7)
 Interest expense
 - long-term (9.2) (6.8) (27.4) (20.4)
 - short-term (0.6) (1.3) (1.1) (3.3)
 Unusual items (16.1) (60.4) (17.0) (61.2)
 Other inc. & exp., net (4.8) (4.6) (5.4) (9.8)
 Loss from cont. opers.
 bef. income taxes (36.5) (117.4) (103.3) (236.2)
 Recovery of inc. taxes 11.2 44.1 31.0 87.5
 Loss from cont. opers. (25.3) (73.3) (72.3) (148.7)
 Discontinued operations -
 Loss from discont. opers.,
 net of income taxes -- (5.7) -- (13.2)
 Gain (loss) on disposal
 of discont. opers.,
 net of income taxes (1.5) 10.3 (3.1) 10.3
 Gain (loss) from
 discont. operations (1.5) 4.6 (3.1) (2.9)
 Loss for the period (26.8) (68.7) (75.4) (151.6)
 Provision for dividends
 on preferred shares (0.4) (0.4) (1.1) (1.2)
 Loss attributable to
 common shareholders $(27.2) $(69.1) $(76.5) $(152.8)
 Per common share:
 Loss from cont. opers. $(0.36) $(1.06) $(1.05) $(2.16)
 Loss (0.38) (1.00) (1.09) (2.20)
 Dividends declared -- 0.125 0.125 0.375
 Wtd. avg. no. of common
 shares outstg. (millions) 71.3 69.3 70.0 69.3
 ABITIBI-PRICE INC.
 CONSOLIDATED SEGMENTED INFORMATION
 (Unaudited; in millions of Canadian dollars)
 Period ended Sept. 30: Three months Nine months
 1993 1992 1993 1992
 SALES
 Newsprint $234.6 $220.3 $720.9 $615.4
 Groundwood papers 83.9 83.3 235.1 229.2
 Office products &
 converted products 111.9 93.0 337.0 272.6
 Other 54.8 41.7 156.3 114.8
 Intersegment
 eliminations -- (0.2) -- (0.9)
 Net sales $485.2 $438.1 $1,449.3 $1,231.1
 OPERATING PROFIT (LOSS)
 Newsprint $(1.6) $(30.4) $(24.7) $(92.2)
 Groundwood papers 2.8 (2.3) (12.6) (12.8)
 Office products &
 converted products 2.9 1.1 10.4 (0.1)
 Other (0.2) (0.1) (1.1) (1.7)
 Oper. profit (loss) $3.9 $(31.7) $(28.0) $(106.8)
 PRIMARY PRODUCTION (Figures in 000s of tons)
 Period ended Sept. 30: Three months Nine months
 1993 1992 1993 1992
 Newsprint 420 458 1,316 1,312
 Groundwood papers 114 109 325 308
 -0- 10/25/93
 /CONTACT: Eileen A. Mercier, Senior vice president-finance, 416-369-6981, or Robert J. Tait, manager of investor Relations, 416-369-6789, both of Abitibi-Price/
 (ABY)


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

JS -- NY109 -- 6578 10/25/93 17:41 EDT
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Date:Oct 25, 1993
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