BOISE CASCADE REPORTS EARNINGS
BOISE CASCADE REPORTS EARNINGS BOISE, Idaho, July 14 /PRNewswire/ -- Boise Cascade Corp.
(NYSE: BCC) today reported a loss for the second quarter of 1992, primarily because of continued weak prices for the company's key paper grades.
For the second quarter of 1992, the company posted a net loss of $45 million, or $1.38 per fully diluted share. This compares with net losses of $32.6 million, or 95 cents per fully diluted share, in the second quarter of 1991 and $42.9 million, or $1.29 per fully diluted share, in the first quarter of 1992. Sales for the second quarter of 1992 were $922 million, compared with $978 million in the second quarter of 1991 and $954 million in the first quarter of 1992. PAPER AND PAPER PRODUCTS The operating performance of Boise Cascade's paper and paper products segment in the second quarter of 1992 continued to be severely affected by weak paper prices, which, on average, were modestly below the very low levels reached in the first quarter of 1992. Prices for business and printing papers and market pulp strengthened modestly in the second quarter relative to those of the first quarter, while newsprint, coated and uncoated groundwood paper prices reached new lows in this cycle. In addition, weak demand for and excess supply of business and printing papers and newsprint caused the company to take approximately 37,000 tons of downtime due to lack of orders. The company's cost to produce business and printing papers continued to decline, but that improvement was largely offset in the second quarter by the cost of extensive scheduled maintenance, primarily at the company's Rumford, Maine, coated white paper mill. Results from the company's paper and paper products segment compared unfavorably with those of the second quarter a year ago because of lower prices on average for the company's mix of pulp and paper grades. However, the company's business and printing paper portion of the segment showed improved results despite lower prices. On June 30, 1992, the company completed the sale of 11 corrugated container plants. This sale and the related liquidation of working capital will generate approximately $100 million. The sale resulted in a pretax gain of $25 million, or 41 cents per fully diluted common share after taxes, which was largely offset by the write-off of certain pulp and paper mill start-up costs that had been capitalized in prior years. OFFICE PRODUCTS The office products segment continued to experience the negative impact of the weak U.S. economy, which has had an unusually severe effect on white collar employment. Although sales volume on a comparable-unit basis was up slightly from year-ago levels, segment profitability was down from that of the year-ago period and the first quarter of this year. The reasons for the decline in profitability were a seasonal swing from first quarter, pressure on margins in this economically weak period, and the divestiture of the wholesale office products distribution operations in January 1992. BUILDING PRODUCTS Income from the company's building products segment in the second quarter was modestly stronger than that of the year-ago second quarter but was down from first quarter 1992 income. Prices for lumber and plywood, which in some cases reached record levels earlier in the year, eased in the second quarter, as moderating demand in the nation's housing and repair-and-remodel markets led to a buildup of wood products inventory in the marketplace. OUTLOOK "Looking ahead, the U.S. economy appears to be gradually strengthening, and we are beginning to see modest signs of improvement in our businesses," said John B. Fery, chairman of the board and chief executive officer. "We have announced price increases for the second half of 1992 in most of our major pulp and paper grades. This emerging trend of improvement, assuming it continues, combined with the continuation of cost-reduction efforts underway in the company, should lead to stronger performance in the second half of the year. If the economy continues to grow at a modest rate and if we are able to obtain further modest increases in paper prices, Boise Cascade should return to profitability during 1993." Boise Cascade Corp. is an integrated paper and forest products company headquartered in Boise, with operations located in the United States and Canada. The company manufactures and distributes paper and paper products, office products, and building products and owns and manages timberland to support these operations. BOISE CASCADE CORP. LOSS SUMMARY (unaudited) Three Months Ended June 30: 1992 1991 Sales $ 922,200,000 $ 977,870,000 Net loss $ (44,970,000) $ (32,560,000) Average primary shares 37,943,000 37,948,000 Net loss per share: Primary $ (1.38) $ (0.95) Fully diluted $ (1.38) $ (0.95) Six Months Ended June 30: 1992 1991 Sales $1,876,130,000 $1,970,600,000 Net loss $ (87,830,000) $ (49,410,000) Net loss per share: Primary $ (2.67) $ (1.48) Fully diluted $ (2.67) $ (1.48) (a) The computation of fully diluted net loss per common share was antidilutive; therefore, the amounts reported for primary and fully diluted loss are the same. -0- 7/14/92 /CONTACT: Vincent Hannity of Boise Cascade, 208-384-6390, or after hours, 208-345-8141/ (BCC) CO: Boise Cascade Corp. ST: Idaho IN: PAP SU: ERN
SC -- SE006 -- 8978 07/14/92 09:27 EDT
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|Date:||Jul 14, 1992|
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