Champion International Corporation reports earnings for fourth quarter and the year.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 16, 1997--Champion International Corporation today reported 1996 earnings per share of $1.48 compared to $7.67 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 1995. For the fourth quarter of 1996, the company reported earnings of 11 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 earnings per share of $2.26 in the fourth quarter of 1995 and 33 cents in the third quarter of 1996. 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 $290 million compared to $1,344 million in 1995. Fourth quarter income of $21 million compared to $361 million a year ago and $58 million last quarter. The decline from last year was due to much lower prices for all of the company's pulp and paper grades. Compared to last quarter, results reflected price erosion erosion (ĭrō`zhən), general term for the processes by which the surface of the earth is constantly being worn away. The principal agents are gravity, running water, near-shore waves, ice (mostly glaciers), and wind. for coated and uncoated freesheet, 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 , and coated and uncoated groundwood grades. The company's wood products segment reported income from operations of $126 million for the year, compared to $138 million in 1995. Fourth quarter income from operations of $36 million compared to $29 million a year ago and $42 million last quarter. Lower results for the year were attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk principally to lower prices and shipments of 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. . The decline from last quarter was primarily due to reduced shipments of 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 and plywood. In commenting on the quarter and the year, Champion's chairman and chief executive officer Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a E. Olson Olson may refer to:
Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. below 1996 levels." -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,
1996 1995 1996 1995
Net Sales: (Unaudited) (Unaudited)
Paper $ 1,189,941 $ 1,515,865 $ 4,961,749 $ 6,007,158
Wood Products 242,255 225,053 918,694 964,880
Total Net Sales $ 1,432,196 $ 1,740,918 $ 5,880,443 $ 6,972,038
Income Before Income Taxes: (Note 1)
Paper $ 20,736 $ 360,696 $ 290,020 $ 1,344,052
Wood products 35,668 28,771 126,086 138,254
Other income (expense) -
net (Note 2) 14,824 (2,199) 44,240 33,089
General corporate
expense (6,242) (4,957) (33,162) (52,816)
Interest and debt
expense (59,820) (53,777) (222,214) (226,016)
Income Before Income
Taxes 5,166 328,534 204,970 1,236,563
Income Taxes (Benefit)
(Note 3) (4,938) 111,040 63,664 464,728
Net Income $ 10,104 $ 217,494 $ 141,306 $ 771,835
Earnings Per Common Share:
Primary $ .11 $ 2.26 $ 1.48 $ 8.01
Fully Diluted $ .11 $ 2.26 $ 1.48 $ 7.67
Note 1: Certain amounts for 1995 have
been reclassified to conform to the current
year's presentation.
Note 2: Other income (expense) - net for
for the three months and twelve months
ended December 31, 1996 includes income
of $14 million from an asset sale and an
insurance refund, and charges of
$9 million primarily for the writedown of
certain paper and wood products assets.
Other income (expense) - net for the twelve
months ended December 31, 1995 includes
gains of $89 million from the sales of certain
operations in Canada and charges of
$68 million primarily for the writedown of
certain U.S. paper and wood products assets.
Note 3: Income taxes (benefit) for the three
months and twelve months ended December
31, 1996 includes a one-time foreign income
tax benefit of $2 million. The improvement in
the effective tax rates for the 1996 periods
compared to 1995 is due primarily to a
larger proportion of income derived from
the company's operations in Brazil, whose
tax rate is lower than that applicable to the
company's North American operations.
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
December 31, December 31,
1996 1995
(unaudited)
ASSETS:
Cash and temporary cash investments $ 174,638 $ 415,344
Receivables - net 579,393 641,291
Inventories 458,043 484,001
Prepaid expenses 29,926 24,841
Deferred income taxes 73,732 75,329
Total Current Assets 1,315,732 1,640,806
Timber and timberlands - net 2,364,858 2,007,685
Property, plant and equipment - net 5,653,469 5,514,574
Other assets and deferred charges 485,933 380,237
Total Assets $ 9,819,992 $ 9,543,302
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current installments of long-term debt $ 80,900 $ 77,760
Short-term bank borrowings 126,910 150,067
Accounts payable and accrued liabilities 713,132 726,206
Income taxes 23,098 125,840
Total Current Liabilities 944,040 1,079,873
Long-term debt 3,085,424 2,828,509
Other liabilities 664,643 664,010
Deferred income taxes 1,363,910 1,218,978
Minority interest in subsidiaries
(Note 1) 6,307 105,241
Shareholders' Equity 3,755,668 3,646,691
Total Liabilities and Shareholders'
Equity $ 9,819,992 $ 9,543,302
Note 1: On July July: see month. 3, 1996, Weldwood of 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 Limited acquired all of its publicly-held shares for (U.S.) $191 million and became a wholly-owned subsidiary of Champion. CONTACT: Champion International Corporation, Stamford Gael Doar - Media - (203) 358-7900 Frank Kneisel - Investor Relations Investor relations The process by which the corporation communicates with its investors. - (203) 358-7402 |
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