Champion International Corporation reports record quarterly 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)--Oct. 9, 1995--Champion International Corporation today reported record quarterly earnings of $2.44 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. for the third quarter of 1995. This compares with fully-diluted earnings per share of 18 cents for the third quarter of 1994 and $1.79 for the second quarter of this 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 $423 million. This compares with income of $36 million a year ago and $344 million last quarter. The improvement from last quarter was due primarily to higher 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 , uncoated free sheet and coated publication papers, and market pulp. The significant improvement from the third quarter of 1994 reflected price increases for all of the company's major pulp and paper grades. The company's wood products segment reported income from operations of $34 million compared to $61 million a year ago and $28 million in the second quarter of this year. 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 . In his comments on the quarter, chairman and chief executive officer Andrew C. Sigler said, "The third quarter was very positive for Champion. We take great pride in the fact that this was by far the best quarter in the history of the company." He added, "Although we have clearly benefited from price increases, a significant portion of the company's improved earnings this year has come from simply running the mills better." He also said that the trends for Champion continue in the right direction and the outlook for the company's major pulp and paper grades is still good. -0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(in thousands, except per share)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Net Sales:
Paper $ 1,603,439 $ 1,091,635 $ 4,491,293 $ 3,033,364
Wood Products 237,225 293,105 739,827 819,454
Total Net Sales $ 1,840,664 $ 1,384,740 $ 5,231,120 $ 3,852,818
Income From
Operations:
Paper $ 423,075 $ 35,945 $ 997,300 $ (42,444)
Wood Products 34,397 60,827 110,808 181,496
General Corporate
Expense (20,146) (15,749) (63,128) (37,048)
437,326 81,023 1,044,980 102,004
Interest and debt
expense 57,711 60,173 172,239 175,601
Other (income)
expense - net (Note 1) (4,035) (11,004) (35,288) (19,392)
Income (Loss) Before
Income Taxes 383,650 31,854 908,029 (54,205)
Income Taxes (Benefit) 148,067 8,737 353,688 (15,238)
Net Income (Loss) $ 235,583 $ 23,117 $ 554,341 $ (38,967)
Earnings (Loss) Per
Common Share: (Note 2)
Primary $ 2.47 $ .18 $ 5.74 $ (.64)
Fully Diluted $ 2.44 $ .18 $ 5.43 $ (.64)
Note 1: Other (income) expense - net for
the nine months ended September 30, 1995
includes non-recurring gains of $89 million
from the sales of certain operations in Canada
and non-recurring charges of $68 million
primarily for the writedown of certain U.S.
paper and wood products assets.
Note 2: Earnings per share was calculated for
each three month and nine month period on a
stand-alone basis. On June 22, 1995 the
company purchased all 7,894,737 shares of
Common Stock that were issued on that date
upon conversion of the $92.50 Convertible
Preference Stock, and on June 30, 1995 the
company purchased an additional 2,000,000
shares of Common Stock. In addition, on June
27, 1995 the company called all $149,893,000
of its 6 1/2% Convertible Subordinated
Debentures due April 15, 2011 for redemption
on August 8, 1995. Virtually all of the
Debentures were converted into an aggregate
of 4,309,070 shares of common stock during
the third quarter. As a result of all of these
transactions, the sum of the earnings per share
for the first, second and third quarters of 1995
does not equal the earnings per share for the
first nine months of 1995.
If the conversion of the 6 1/2% Convertible
Subordinated Debentures had occurred on the
first day of each 1995 period presented,
primary earnings per share for the three
months and nine months ended September 30,
1995 would have been $2.44 and $5.57,
respectively.
-0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
September 30, December 31,
1995 1994
(unaudited)
ASSETS:
Cash and temporary cash
investments $ 343,108 $ 90,948
Receivables - net 697,387 562,085
Inventories 419,544 441,430
Prepaid expenses 32,236 23,286
Deferred income taxes 62,125 61,032
Total Current Assets 1,554,400 1,178,781
Timber and timberlands - net 1,955,612 1,846,823
Property, plant, and
equipment - net 5,497,957 5,602,614
Other assets and deferred
charges 375,611 335,410
Total Assets $ 9,383,580 $ 8,963,628
LIABILITIES AND
SHAREHOLDERS' EQUITY:
Current installments of
long-term debt $ 252,802 $ 308,922
Short-term bank borrowings 110,996 90,184
Accounts payable and accrued
liabilities 677,727 592,033
Income taxes 120,617 43,273
Total Current Liabilities 1,162,142 1,034,412
Long-term debt 2,776,559 2,889,252
Other liabilities 683,270 670,761
Deferred income taxes 1,165,406 1,039,927
Minority interest in
subsidiaries 100,774 68,531
Preference stock, $92.50
cumulative series --- 300,000
Shareholders' Equity 3,495,429 2,960,745
Total Liabilities and
Shareholders' Equity $ 9,383,580 $ 8,963,628
-0-
CONTACT: 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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