Champion International reports third quarter earnings.STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 8, 1996--Champion International Corporation today reported third quarter net income of $32 million or 33 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 $236 million or $2.44 per share fully diluted in the third quarter of 1995 and net income of $16 million or 16 cents per share in 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 $58 million compared to $419 million a year ago and $44 million last quarter. The decline from last year was due to sharply lower prices for all of the company's pulp and paper grades. Compared to last quarter, results reflected higher prices for pulp and lower 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 and publication paper grades. The company's wood products segment reported operating income of $42 million compared to $34 million in the third quarter of 1995 and $29 million in the second quarter of this year. The improvement from last year was attributable primarily to higher prices for lumber. The improvement from last quarter was due mainly to higher prices for lumber and increased West Coast timber sales. In commenting on the quarter, Champion's chairman and chief executive officer Richard E. Olson said, "We are very pleased with the performance of our wood products operations and the improvement in our pulp business this quarter. We are disappointed, however, that prices for a number of our key paper grades, particularly newsprint and publication papers, continued to decline throughout the quarter." 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, 1996 1995 1996 1995 Net Sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight : Paper $1,222,955 $1,603,439 $3,771,808 $4,491,293 Wood Products 247,526 237,225 676,439 739,827 Total Net Sales $1,470,481 $1,840,664 $ 4,448,247 $5,231,120 Income Before Income Taxes: (Note 1) Paper $58,355 $418,932 $269,284 $983,356 Wood products 41,866 34,171 90,418 109,483 Other income (expense) - net (Note 2) 9,560 4,035 29,416 35,288 General corporate expense (10,048) (15,777) (26,920) (47,859) Interest and debt expense (54,217) (57,711) (162,394) (172,239) Income Before Income Taxes 45,516 383,650 199,804 908,029 Income Taxes 13,515 148,067 68,602 353,688 Net Income $32,001 $235,583 $131,202 $554,341 Earnings Per Common Share: Primary $.33 $2.47 $1.37 $5.74 Fully Diluted $.33 $2.44 $1.37 $5.43 Note 1: Certain amounts for 1995 have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current year's presentation. Note 2: Other income (expense) - net for the nine months ended September 30, 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. CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in thousands of dollars) Sept. 30, Dec. 31, 1996 1995 (unaudited) ASSETS: Cash and temporary cash investments $287,577 $415,344 Receivables - net 558,503 641,291 Inventories 429,899 484,001 Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. 33,266 24,841 Deferred income taxes 72,698 75,329 Total Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 1,381,943 1,640,806 Timber and timberlands - net 2,260,910 2,007,685 Property, plant and equipment - net 5,593,504 5,514,574 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and deferred charges 465,441 380,237 Total Assets $9,701,798 $9,543,302 LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. : Current installments of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. $129,660 $77,760 Short-term bank borrowings 138,042 150,067 Accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. 671,103 726,206 Income taxes 8,374 125,840 Total Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 947,179 1,079,873 Long-term debt 2,981,578 2,828,509 Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 652,376 664,010 Deferred income taxes 1,364,263 1,218,978 Minority interest in subsidiaries (Note 1) 4,168 105,241 Shareholders' Equity 3,752,234 3,646,691 Total Liabilities and Shareholders' Equity $9,701,798 $9,543,302 Note 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 E. Green, 203/358-7900 |
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