CHAMPION INTERNATIONAL CORPORATION REPORTS FIRST QUARTER EARNINGS.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--April 10, 1996--Champion International Corporation today reported first quarter net income of $84 million or 88 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . This compares to net income of $131 million or $1.26 per share fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. in the first quarter of 1995 and net income of $217 million or $2.26 per share in the fourth quarter of 1995. The company's paper segment reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $167 million compared to $230 million in the first quarter of 1995 and $367 million in the fourth quarter of 1995. The decline from the year-ago quarter was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to lower prices for certain key grades and reduced shipments, while the decline from last quarter was due principally to lower prices. After rising dramatically through most of 1995, prices have deteriorated for all of the company's major grades, particularly uncoated freesheet papers and market pulp. The company's wood products segment reported operating income of $19 million compared to $49 million in the first quarter of 1995 and $27 million in the fourth quarter of 1995. The decline from the year-ago quarter was attributable primarily to lower prices for plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. and lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to , while the decline from last quarter was due mainly to lower plywood prices. In commenting on the quarter, Champion's chairman and chief executive officer Andrew C. Sigler said, "Following the record results posted in 1995, the first quarter of 1996 was particularly disappointing. Although prices for most of our major pulp and paper grades continue to decline, orders for uncoated freesheet papers have shown some improvement in recent weeks." -0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(in thousands, except per share)
Three Months Ended
March 31,
1996 1995
Net Sales:
Paper $ 1,313,256 $ 1,361,755
Wood products 219,926 272,269
Total Net Sales $ 1,533,182 $ 1,634,024
Income Before Income Taxes:
Paper (Note 1) 167,315 230,114
Wood products 19,344 48,579
Other income (expense) - net (Note 2) 11,168 19,776
General corporate expense (10,945) (18,289)
Interest and debt expense (54,959) (59,717)
131,923 220,463
Income Taxes 48,274 89,238
Net Income $ 83,649 $ 131,225
Earnings Per Common Share:
Primary $ 0.88 $ 1.33
Fully Diluted $ 0.88 $ 1.26
Note 1: Paper income for the three months ended March 31, 1995 includes $13 million of expenses primarily for the writedown of certain receivables from customers in Mexico and for certain legal contingencies. Note 2: Other income (expense) - net for the three months ended March 31, 1996 includes a charge of $9 million primarily for severance costs at the Hamilton, Ohio, printing and writing papers mill, and income of $7 million for the reduction of reserves associated with certain discontinued operations. The three months ended March 31, 1995 includes a $50 million gain from the sale of certain operations in Canada and a charge of $36 million primarily for the writedown of certain U.S. paper and wood products assets. -0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
March 31, December 31,
1996 1995
(unaudited)
ASSETS:
Cash and temporary cash investments $ 338,674 $ 415,344
Receivables - net 559,584 641,291
Inventories 544,442 484,001
Prepaid expenses 27,578 24,841
Deferred income taxes 72,532 75,329
Total Current Assets 1,542,810 1,640,806
Timber and timberlands - net 2,188,361 2,007,685
Property, plant, and equipment - net 5,500,550 5,514,574
Other assets and deferred charges 400,906 380,237
Total Assets $ 9,632,627 $ 9,543,302
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current installments of $ 129,218 $ 77,760
long-term debt
Short-term bank borrowings 137,075 150,067
Accounts payable and
accrued liabilities 664,180 726,206
Income taxes 34,433 125,840
Total Current Liabilities 964,906 1,079,873
Long-term debt 2,859,938 2,828,509
Other liabilities 673,292 664,010
Deferred income taxes 1,307,439 1,218,978
Minority interest in subsidiaries 109,553 105,241
Shareholders' Equity 3,717,499 3,646,691
Total Liabilities
and Shareholders' Equity $ 9,632,627 $ 9,543,302
CONTACT: Champion International, Stamford Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. E. Green, 203/358-7900 |
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