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Alliance Forest Products Inc. - 1995 third quarter results.

MONTREAL--(BUSINESS WIRE)--Oct. 24, 1995--ALLIANCE FOREST (ME, TSE: ALP) Alliance Forest Products Inc. recorded net earnings of $21.9 million, or $1.22 per common share, during the quarter ended September 30, 1995, compared with $12.3 million, or $0.69 per common share, for the quarter ended September 30, 1994.

Operating income for the period totalled $30.3 million, compared with $14.8 million in 1994. Sales reached $112.9 million, compared with $74.5 million for last year.

For the nine-month period ended September 30, 1995, net earnings amounted to $57.0 million ($3.19 per common share), compared with $17.1 million ($0.97 per common share) for the 4-1/2-month period from May 12, 1994 when the Company commenced operations, to September 30, 1994. For the first nine months of 1995, the Company generated $77.1 million in operating income and $284.4 million in sales.

Alliance Forest Products Inc. continued to benefit from favorable market conditions and strong demand in the paper sector. As a result, paper prices remained higher during the third quarter than for the comparable 1994 period. Prices rose on September 1, 1995, as anticipated, but the effects will be felt mainly in the fourth quarter as sales contracts provide for the increases to be progressively introduced.

Following a slight increase during the quarter, lumber prices came under downward pressure the end of the period. In general, prices remain below levels during the third quarter of 1994.

During the quarter, Alliance Forest Products Inc. acquired the two member companies of the Groupe Mitis - Fernand Bois Ltee of Lac des Aigles, Quebec, and Scierie Mitis Inc. of Price, Quebec. These two sawmills have a production capacity of 140 million foot board measures of lumber and own annual timber-cutting rights to 343,000 metres of lumber.

Alliance Forest Products Inc. is an integrated company specializing in timber harvesting and forest management, as well as in the production and sale of newsprint, uncoated groundwood papers, lumber and related products. The common shares of Alliance Forest Products Inc. are listed on the Montreal and Toronto stock exchanges under the symbol ALP. -0-

Appendix: Summary of financial statements




Alliance Forest Products Inc.
Consolidated Earnings
(Unaudited)
(In millions of Canadian Quarter ended 9 months ended
dollars except for earnings September 30 September 30
per share) 1995 1994 1995 1994
_______________________________________________________________
Sales $112.9 $74.5 $284.4 $108.7
_______________________________________________________________
Operating costs and expenses
 Cost of goods sold 74.2 52.4 180.2 77.7
 Selling, general and
 administrative expenses 4.1 3.5 15.3 5.0
 Depreciation 4.3 3.8 11.8 5.8
_______________________________________________________________
 82.6 59.7 207.3 88.5
_______________________________________________________________
Operating income 30.3 14.8 77.1 20.2
 Net financing
 income (expenses) (0.2) 0.1 1.1 -


Earnings before income taxes 30.1 14.9 78.2 20.2
 Income taxes
 Current 6.6 0.2 17.2 0.2
 Deferred 1.6 2.4 4.0 2.9
_______________________________________________________________
Net earnings 21.9 12.3 57.0 17.1
_______________________________________________________________
_______________________________________________________________
Net earnings per common share $1.22 $0.69 $3.19 $0.97
_______________________________________________________________
_______________________________________________________________


As the company was in operation from May 12, 1994, the 1994
cumulative data is for 4 1/2 months only.




Alliance Forest Products Inc.
Consolidated Balance Sheet
(Unaudited)


(In millions of dollars)
______________________________________________________________
 1995 1994
______________________________________________________________
Assets


 Current assets
 Investments, at cost $7.9 $18.9
 Accounts receivable 55.2 36.3
 Inventory 58.5 35.1
 Prepaid expenses 4.4 3.0
_______________________________________________________________
 126.0 93.3
 Land, buildings and equipment 213.9 159.9
 Investments 0.2 -
 Goodwill 40.2 -
______________________________________________________________
 380.8 253.2
_______________________________________________________________
_______________________________________________________________


Liabilities
 Current liabilities
 Trade and other accounts payable 46.1 34.9
 Income taxes payable 20.9 0.2
 ______________________________________________________________
 67.0 35.1


 Long term debt 12.5 -
 Pension liability 10.0 6.7
 Deferred income taxes 9.4 0.2
_______________________________________________________________
 98.9 42.0
_______________________________________________________________


Shareholders' Equity
 Capital stock 200.4 200.2
 Retained earnings 81.0 11.0
_______________________________________________________________
 281.4 211.2
_______________________________________________________________
 $380.3 $253.2
_______________________________________________________________
_______________________________________________________________




Alliance Forest Products Inc.
Consolidated Changes in Cash Resources
(Unaudited)


 Quarter ended
 September 30
(In millions of dollars) 1995 1994
____________________________________________________________
Operations


 Net earnings $21.9 $12.3
 Non-cash items
 Depreciation 4.3 3.8
 Pension expense 0.6 -
 Deferred income taxes 1.6 2.4
____________________________________________________________


 Working capital provided by operations 28.4 18.5
 Changes in non-cash working
 capital items 8.7 (3.3)
____________________________________________________________


Cash provided by operations 37.1 15.2
____________________________________________________________
____________________________________________________________


Investment
 Acquisition of commercial operations (25.7) -
 Investments - -


 Acquisitions of property,
 plant and equipment (10.1) (7.7)
____________________________________________________________


Cash used for investing activities (35.8) (7.7)
____________________________________________________________
____________________________________________________________


Financing
 Common shares issued 0.1 -
 Share issuance expenses - (0.2)
 Long term debt (1.3) -
____________________________________________________________
Cash provided (used) by financing (1.2) (0.2)
____________________________________________________________
____________________________________________________________
Increase (decrease) in cash 0.1 7.3
____________________________________________________________
____________________________________________________________


Cash at the beginning of the period 7.8 11.6
____________________________________________________________


Cash at the end of the period $7.9 $18.9
____________________________________________________________
____________________________________________________________


 9 months ended
 September 30
(In millions of dollars) 1995 1994
____________________________________________________________


Operations


 Net earnings $57.0 $17.1
 Non-cash items
 Depreciation 11.8 5.8
 Pension expense 1.8 -
 Deferred income taxes 4.0 2.9
___________________________________________________________


 Working capital provided by operations 74.6 25.8
 Changes in non-cash working
 capital items 6.6 (1.6)
___________________________________________________________


Cash provided by operations 81.2 24.2
___________________________________________________________
___________________________________________________________


Investment


 Acquisition of commercial operations (77.0) (186.9)
 Investments (0.1) -
 Acquisitions of property,
 plant and equipment (29.1) (9.8)
___________________________________________________________


Cash used for investing activities (106.2) (196.7)
___________________________________________________________


Financing


 Common shares issued 0.2 200.2
 Share issuance expenses - (8.8)
 Long term debt (1.4) -
____________________________________________________________
Cash provided (used) by financing (1.2) 191.4
____________________________________________________________
____________________________________________________________


Increase (decrease) in cash (26.2) 18.9
___________________________________________________________
___________________________________________________________


Cash at the beginning of the period 34.1 -
___________________________________________________________


Cash at the end of the period $7.9 $18.9
___________________________________________________________
___________________________________________________________


As the company was in operation from May 12, 1994, the 1994
cumulative data is for 4 1/2 months only.


CONTACT: Dino Fuoco

Vice-president Finance and

Chief Financial Officer

514/954-2118
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Oct 24, 1995
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