CHAMPION INTERNATIONAL CORPORATION REPORTS SHARPLY HIGHER 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. , CT--(BUSINESS WIRE)--April 10, 1995--Champion International Corporation today reported first quarter earnings of $1.26 per share. This compares with a loss of 41 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. for the first quarter of 1994 and earnings per share of 73 cents, excluding non-recurring income, for the fourth quarter of last year. 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 $230 million. This compares with a loss of $40 million a year ago and income of $113 million in the fourth quarter of 1994. The substantial improvement from last year and last quarter was due principally to higher prices for all of the company's pulp and paper grades. The company's wood products segment reported income from operations of $49 million compared to $64 million a year ago and $61 million in the fourth quarter of 1994. The decline from last year was due primarily to lower prices for 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 primarily to lower lumber and 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. prices and reduced timber timber: see lumber; wood. stumpage stump·age n. 1. Standing timber regarded as a commodity. 2. The value of standing timber. 3. The right to cut standing timber. stumpage 1. sales. In his comments on the quarter, chairman and chief executive officer Andrew C. Sigler said, "We are very pleased with the first quarter's results. Although higher pulp and paper prices were the major factor, it is gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that our strong operating performance, including new production records at several mills, contributed to the improvement in earnings." He added, "We expect this momentum to carry into the second quarter. As long as global economic activity remains strong, the outlook for the paper industry is very positive." -0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(in thousands, except per share)
Three Months Ended
March 31,
1995 1994
Net Sales:
Paper $ 1,361,755 $ 960,008
Wood Products 272,269 266,112
1,634,024 1,226,120
Income From Operations:
Paper (Note 1) 230,114 (39,967)
Wood Products 48,579 64,283
General Corporate Expense (18,289) (7,507)
260,404 16,809
Interest and debt expense 59,717 56,537
Other (income) expense - net (Note 2) (19,776) 240
Income (Loss) Before Income Taxes 220,463 (39,968)
Income Taxes (Benefit) 89,238 (8,982)
Net Income (Loss) $ 131,225 $ (30,986)
Earnings (Loss) Per Common Share:
Primary $ 1.33 $ (.41)
Fully Diluted $ 1.26 $ (.41)
Note 1 Income from operations - paper for the three months ended
March 31, 1995 includes $13 million of non-recurring 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,
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.
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
March 31, December 31,
1995 1994
(unaudited)
ASSETS:
Cash and temporary cash investments $ 167,022 $ 90,948
Receivables - net 612,258 562,085
Inventories 424,824 441,430
Prepaid expenses 22,657 23,286
Deferred income taxes 61,392 61,032
Total Current Assets 1,288,153 1,178,781
Timber and timberlands - net 1,865,004 1,846,823
Property, plant, and equipment - net 5,521,440 5,602,614
Other assets and deferred charges 322,062 335,410
Total Assets $ 8,996,659 $ 8,963,628
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current installments of long-term debt $ 203,235 $ 308,922
Short-term bank borrowings 96,879 90,184
Accounts payable and accrued liabilities 582,710 592,033
Income taxes 55,111 43,273
Total Current Liabilities 937,935 1,034,412
Long-term debt 2,837,423 2,889,252
Other liabilities 680,055 670,761
Deferred income taxes 1,074,707 1,039,927
Minority interest in subsidiaries 79,962 68,531
Preference stock, $92.50 cumulative series 300,000 300,000
Shareholders' Equity 3,086,577 2,960,745
Total Liabilities and Shareholders'
Equity $ 8,996,659 $ 8,963,628
CONTACT: Champion International Corporation, Stamford Mary Green Mary Green is a British television presenter currently presenting Thames Valley Tonight on ITV Thames Valley, covering the Central South and Meridian West regions. , 203-358-7900 |
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