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FEDERAL PAPER BOARD REPORTS FOURTH QUARTER RESULTS

 FEDERAL PAPER BOARD REPORTS FOURTH QUARTER RESULTS
 MONTVALE, N.J., Jan. 22 /PRNewswire/ -- Federal Paper Board Company,


Inc. (NYSE: FBO) today announced lower sales and earnings for the fourth quarter of 1991 compared to the fourth quarter of last year. Results for the full year showed increased sales with lower net income for 1991 compared with 1990.
 Sales for the 16 weeks ended Dec. 28, 1991 were $411,000,000 compared to $439,900,000 for the fourth quarter of 1990. Net income was $5,700,000 or $.08 per fully diluted common share compared to $22,900,000 or $.50 per fully diluted common share last year.
 Sales for the fiscal year ended Dec. 28, 1991 were $1,435,000,000 compared to $1,374,100,000 for the 1990 fiscal year. Net income was $82,400,000 or $1.77 per fully diluted common share compared to $118,200,000 or $2.58 per fully diluted common share last year.
 The 1991 fourth quarter results reflect the previously announced non-operating after-tax charge of $7.3 million relating to machinery write-offs, increased reserves for environmental matters and increased reserves in connection with previously sold or closed facilities and an after-tax charge of $2.5 million related to an increase in the effective tax rate.
 The 1990 fourth quarter results include a non-cash after-tax charge of $11.0 million for the retirement of assets primarily associated with the Augusta, Ga. Phase II expansion project.
 Additionally, this year's fourth quarter earnings compared to last year's were adversely affected by pulp price erosion of more than $100 per ton from the fourth quarter of last year and the impact of downtime of various equipment due to rebuilding or maintenance.
 John R. Kennedy, president, stated, "Our business has been hurt during the quarter and the entire year by a generally poor economy. The fourth quarter non-operating charges and the reduced earnings due to machine downtime are now behind us and will have no further or continuing effect on our future earnings. There are a number of encouraging signs for 1992. A modest market pulp price increase was implemented in November 1991 with a further increase implemented for the first quarter 1992. The rebuild of the No. 1 machine at Augusta was completed and successfully started up on January 11, after a 39 day shutdown. The No. 3 machine at Augusta is showing steady improvement."
 Kennedy further said, "The Phase II expansion program at the Augusta mill is now complete. Total capital spending in 1991 was about $225 million, less than one-half of our 1990 capital spending. With our major capital projects now completed, capital expenditures in 1992 will be about the same or lower than in 1991. The company has modernized, low-cost operations in all segments of its business and is ready to realize the benefits from the expected recovery in the economy."
 Federal Paper Board Company, Inc. manufactures and sells solid bleached paperboard, bleached market pulp, recycled paperboard, paper and plastic cups, folding cartons, lumber, and in the European market, uncoated free-sheet paper. The company operates two bleached kraft paperboard and pulp mills, one recycled paperboard mill, four sheeting and distribution centers, six cup converting plants, four folding carton plants and five wood products mills in the United States and one uncoated free-sheet paper mill in the United Kingdom. Federal has approximately 7,000 employees.
 FEDERAL PAPER BOARD COMPANY, INC.
 Preliminary Results
 Industry Segment Information
 (In millions)
 Periods ended: 16 Weeks 52 Weeks
 12/28/91 12/29/90 12/28/91 12/29/90
 Net sales:
 Paper, paperboard and pulp $290.4 $295.4 $ 986.9 $1,001.2
 Wood products 47.0 38.9 146.4 130.9
 Converting operations 105.4 136.1 403.9 335.1
 Intersegment eliminations (31.8) (30.5) (102.2) (93.1)
 Total $411.0 $439.9 $1,435.0 $1,374.1
 Income before taxes:
 Paper, paperboard and pulp $44.2 $49.5 $ 207.7 $ 228.9
 Wood products 2.2 (.9) 10.3 4.9
 Converting operations 11.1 10.7 39.0 26.6
 Intersegment eliminations (1.5) 1.0 (1.0) 2.3
 Genl. corp. expense - net (15.0) (5.8) (21.5) (17.4)
 Interest expense (26.8) (16.6) (90.3) (43.1)
 Total $14.2 $37.9 $ 144.2 $ 202.2
 FEDERAL PAPER BOARD COMPANY, INC.
 Preliminary Results
 Consolidated Statement Of Income
 (In millions except per share amounts)
 Periods ended: 16 Weeks 52 Weeks
 12/28/91 12/29/90 12/28/91 12/29/90
 Net sales $ 411.0 $ 439.9 $1,435.0 $1,374.1
 Costs and expenses:
 Cost of products sold 303.9 320.9 1,008.5 958.1
 Depreciation, amortization
 & cost of timber harvested 37.5 31.0 122.7 88.1
 Selling & admin. expenses 17.8 18.5 64.1 57.9
 Interest expense 26.8 16.6 90.3 43.1
 Other - net 10.8 15.0 5.2 24.7
 Total costs and expenses 396.8 402.0 1,290.8 1,171.9
 Income before taxes 14.2 37.9 144.2 202.2
 Provision for income taxes 8.5 15.0 61.8 84.0
 Net income $ 5.7 $ 22.9 $ 82.4 $ 118.2
 Earnings per common share:
 Assuming no dilution $ .08 $ .52 $ 1.83 $ 2.74
 Assuming full dilution(A) $ .08 $ .50 $ 1.77 $ 2.58
 Average common shares outstanding:
 Assuming no dilution 40.7 40.1 40.5 40.1
 Assuming full dilution(A) 41.4 45.8 46.4 45.8
 (A) -- Earnings per common share assuming full dilution assumes the conversion of the Company's convertible preferred stocks except for the fourth quarter of 1991 where the calculation is anti-dilutive.
 -0- 1/22/92
 /CONTACT: Quentin J. Kennedy, executive vice president of Federal Paper Board, 201-391-1776/
 (FBO) CO: Federal Paper Board Company Inc. ST: New Jersey IN: PAP SU: ERN


TS -- NY012 -- 2078 01/22/92 08:54 EST
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Date:Jan 22, 1992
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