Champion International reports second 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)--July 11, 1996--Champion International Corporation today reported second quarter net income of $16 million or 16 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 $188 million or $1.79 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 second quarter of 1995 and net income of $84 million or 88 cents per share in the first 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 $44 million compared to $344 million a year ago and $167 million last quarter. The sharp decline was due primarily to lower prices for the company's major pulp and paper grades. The company's wood products segment reported operating income of $29 million compared to $28 million in the second quarter of 1995 and $19 million in the first quarter of this year. The improvement was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk primarily to higher 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 and lower purchased fiber costs. In commenting on the quarter, Champion's chairman and chief executive officer, Andrew C. Sigler, said, "The main factor affecting the results this quarter was the 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. in the paper segment, particularly for uncoated free sheet papers and pulp. However, we began to see some improvement in the demand and price for these two key grades during May and June June: see month. . We are hopeful that this improvement will continue into the third quarter." -0-
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(in thousands, except per share)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net Sales:
Paper $ 1,235,597 $ 1,526,099 $ 2,548,853 $ 2,887,854
Wood products 208,987 230,333 428,913 502,602
Total Net Sales $ 1,444,584 $ 1,756,432 $ 2,977,766 $ 3,390,456
Income Before
Income Taxes:
Paper $ 43,612 $ 344,112 $ 210,927 $ 574,226
Wood products 29,209 27,831 48,553 76,410
Other income (expense)
- net (Note 1) 8,688 11,477 19,856 31,253
General corporate
expense (5,925) (24,693) (16,870) (42,982)
Interest and debt
expense (53,219) (54,811) (108,178) (114,528)
22,365 303,916 154,288 524,379
Income Taxes 6,813 116,383 55,087 205,621 Net Income $ 15,552 $ 187,533 $ 99,201 $ 318,758 Earnings Per Common Share: Primary $ 0.16 $ $1.93 $ $1.04 $ $3.27 Fully Diluted $ 0.16 $ $1.79 $ $1.04 $ $3.04 Note 1: Other income (expense) - net for the three months and six months ended June 30, 1995 includes gains of $39 million and $89 million, respectively, from the sales of certain operations in Canada and charges of $32 million and $68 million, respectively, 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)
June 30, December 31,
1996 1995
(unaudited)
ASSETS:
Cash and temporary cash investments $ 375,521 $ 415,344
Receivables - net 560,214 641,291
Inventories 424,467 484,001
Prepaid expenses 41,618 24,841
Deferred income taxes 74,054 75,329
Total Current Assets 1,475,874 1,640,806
Timber and timberlands - net 2,199,796 2,007,685 Property, plant and equipment - net 5,509,632 5,514,574 Other assets and deferred charges 474,776 380,237 Total Assets $ 9,660,078 $ 9,543,302 LIABILITIES AND SHAREHOLDERS' EQUITY: Current installments of long-term debt $ 154,660 $ 77,760 Short-term bank borrowings 134,864 150,067 Accounts payable and accrued liabilities 676,935 726,206 Income taxes 5,090 125,840 Total Current Liabilities 971,549 1,079,873 Long-term debt 2,862,365 2,828,509 Other liabilities 674,227 664,010 Deferred income taxes 1,313,179 1,218,978 Minority interest in subsidiaries (Note 1) 112,613 105,241 Shareholders' Equity 3,726,145 3,646,691 Total Liabilities and Shareholders' Equity $ 9,660,078 $ 9,543,302Note 1: On July 3, 1996, Weldwood of Canada Limited acquired all of its publicly-held shares for approximately (U.S.) $185 million and became a wholly-owned subsidiary of Champion. 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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