CHAMPION INTERNATIONAL CORPORATION REPORTS SUBSTANTIAL EARNINGS IMPROVEMENT.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)--January 9, 1995--Champion International Corporation today reported fourth quarter earnings of $1.02 per share. This included non-recurring income of 29 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. which resulted primarily from the sale of Champion's remaining 25% interest in a Swedish linerboard lin·er·board n. A type of paperboard used in making corrugated cartons. mill and the refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies due on countervailing duties Countervailing duties are a means to restrict international trade in cases where imports are subsidized by a foreign country and hurt domestic producers. According to WTO rules, a country can launch its own investigation and decide to charge extra duties, provided such additional on 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 exports from Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of into the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in prior years. The $1.02 per share compared to a loss of 56 cents, including non-recurring charges, for the fourth quarter of 1993 and earnings of 18 cents per share for the third quarter of 1994. For the year, the company reported earnings per share of 38 cents compared to a loss of $1.98 in 1993. Excluding non-recurring items in both years, Champion's per share earnings were nine cents for the year compared to a loss of $1.44 in 1993. 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. for the year of $71 millon compared to a loss of $134 million in 1993. Fourth quarter income of $113 million compared to a loss of $24 million a year ago and income of $36 million in the third quarter of 1994. The company's wood products segment reported income from operations of $242 million for the year, compared to $248 million in 1993. Fourth quarter income from operations of $61 million compared to the same amount in the prior quarter and $57 million in the year-ago quarter. 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 reached near record levels during the last quarter of 1994 but declined towards the end of the year. Lumber prices remained relatively strong throughout the year. In his comments on the quarter and the year, Champion's chairman and chief executive officer Andrew C. Sigler said, "The tightness in all of our pulp and paper markets for the past six months allowed us to increase prices. We have seen the largest increases in uncoated free sheet and pulp; however, the coated paper Coated paper is paper which has been coated by an inorganic compound to impart certain qualities to the paper, including weight and surface gloss, smoothness or ink absorbency. Kaolinite is the compound most often used for coating papers used in commercial printing. market is tightening and prices for newsprint newsprint low grade paper used for newspapers. Old newspapers are fed to cattle as an alternative roughage and may occasionally be ingested by dogs. Significant amounts of lead are accumulated in tissues; no cases of poisoning have been recorded in cattle, though it has been also have improved significantly." Sigler added, "With very little industry capacity additions expected in any of our principal pulp and paper grades over the next several years, Champion is now well positioned to profit from the improving economy, as long as the economy continues to grow and overseas demand stays strong. Our facilities are generally in excellent condition, we have the right product mix for this recovery and our people are performing extremely well. The goal of everyone at Champion in 1995 is to focus on generating profit and positive cash flow so we can reduce our debt and strengthen our financial position." -0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share)
Three Months Ended Twelve Months Ended
December 31, December 31,
1994 1993 1994 1993
(Unaudited) (Unaudited)
Net Sales:
Paper $ 1,183,431 $ 992,663 $ 4,216,795 $ 3,817,579
Wood Products 281,943 307,564 1,101,397 1,251,254
1,465,374 1,300,227 5,318,192 5,068,833
Income From
Operations:
Paper 113,331 (24,143) 70,887 (133,774)
Wood Products 60,789 57,015 242,285 247,989
General Corporate
Expense (10,124) (13,676) (47,172) (47,823)
163,996 19,196 266,000 66,392
Interest and debt
expense 59,485 62,186 235,086 224,658
Other (income)
expense - net (Note 1) (37,950) (10,142) (57,342) 7,410
Income (Loss) Before
Income Taxes,
Extraordinary Item and
Cumulative Effect of
Accounting Change 142,461 (32,848) 88,256 (165,676)
Income Taxes (Benefit)
(Note 2) 40,189 (2,284) 24,951 (31,222)
Income (Loss) Before
Extraordinary Item and
Cumulative Effect of
Accounting Change 102,272 (30,564) 63,305 (134,454)
Extraordinary Item -
Loss on Early Retirement
of Debt, Net of Taxes --- (14,266) --- (14,266)
Cumulative Effect of
Accounting Change,
Net of Taxes (Note 3) --- --- --- (7,523)
Net Income (Loss) $ 102,272 $ (44,830) $ 63,305 $ (156,243)
Earnings (Loss) Per
Common Share:
Income (Loss) Before
Extraordinary Item and
Cumulative Effect of
Accounting Change:
Recurring $ .73 $ (.35) $ .09 $ (1.44)
Non-recurring .29 (.06) .29 (.31)
1.02 (.41) .38 (1.75)
Extraordinary Item -
Loss on Early
Retirement of Debt --- (.15) --- (.15)
Cumulative Effect of
Accounting Change --- --- --- (.08)
Net Income (Loss) $ 1.02 $ (.56) $ .38 $ (1.98)
Note 1: Other (income) expense - net
includes non-recurring pre-tax income of
$34 million for the three month and twelve
month periods ended December 31, 1994 and
$10 million for the three month and twelve
month periods ended December 31, 1993.
Note 2: Income Taxes (Benefit) for the three
month and twelve month periods ended
December 31, 1994 includes a benefit of $7
million to reflect one-time adjustments to the
company's deferred tax liability. The three
month and twelve month periods ended
December 31, 1993 include a provision of $11
million and $34 million, respectively, to reflect
one-time adjustments to the company's
deferred tax liability.
Note 3: Cumulative Effect of Accounting
Change for the twelve month period ended
December 31, 1993 reflects the after-tax
effect of adopting, retroactive to January 1,
1993, a new accounting standard for
postemployment benefits.
CONTACT: Champion International Corp., 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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