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FLETCHER CHALLENGE CANADA ANNOUNCES RESULTS

 FLETCHER CHALLENGE CANADA ANNOUNCES RESULTS
 VANCOUVER, British Columbia, April 22 /PRNewswire/ -- Fletcher


Challenge Canada Ltd. (Toronto, Montreal, Vancouver: FCC) today reported a net loss of $24.3 million, or 40 cents per common share for the first three months of 1992.
 The results compare with a net loss of $10.7 million, or 18 cents per share, for the same period of 1991. Sales for the first three months declined to $230 million from $267 million a year ago.
 Ian Donald, president and chief executive officer, said the company's lower sales and earnings resulted from severely depressed prices for pulp and paper.
 North American lumber markets were unsettled with generally higher prices reflecting an increase in demand from new housing starts. Demand was dampened however as a result of the March 6 preliminary ruling by the U.S. Department of Commerce which imposes a 14.48 percent countervailing duty on all Canadian softwood lumber imports.
 Offshore lumber markets remain weak with low demand in the United Kingdom and continuing excess supply in Japanese and Asian markets.
 "Trading conditions for all of our products were extremely difficult. One positive note is that pulp markets have begun to recover slowly and some modest price improvements have been recorded," Donald said. Average prices for northern softwood bleached kraft pulp were approximately US$155 below levels of a year ago, he said.
 Noting that newsprint markets "were affected by significant excess capacity and weak demand," Donald said the company was forced to curtail production by a total of 14 days during the period to keep its inventories at manageable levels.
 Markets for lightweight coated paper, the product used for magazines, catalogues and newspaper inserts, were similarly depressed due to reduced retail advertising activity.
 He said the company is anticipating a difficult, although improving, year in 1992 as North America works towards economic recovery following the lengthy recession.
 "Certainly the weaker Canadian dollar, relative to its U.S. counterpart, can only help improve the competitiveness of our products in export markets. The modest price improvements we are starting to see for pulp and lumber are positive signals that we are trending up from the botton of the cycle.
 "The company is also starting to benefit from the operating and cost efficiencies that flow from the major capital program it has put in place over the last four years," Donald said.
 FLETCHER CHALLENGE CANADA LTD.
 Consolidated Supplemental Information
 (in millions of dollars)
 unaudited
 3 Months Ended
 March 31
 1992 1991
 Earnings
 Net sales $229.8 $266.5
 Cost of products sold 210.3 239.1
 Depreciation, depletion & amortization 23.7 21.6
 Selling & administrative 17.1 16.6
 251.1 277.3
 (21.3) (10.8)
 Earnings from associate companies
 before income taxes 0.0 4.9
 Operating earnings (loss) (21.3) (5.9)
 Interest expense 15.6 13.0
 Gain on disposal of fixed assets 0.2 0.4
 Investment & other
 income (expense) (1.8) 1.8
 Earnings (loss) before income taxes (38.5) (16.7)
 Income taxes (recovery) (14.2) (6.0)
 Net earnings (loss) ($24.3) ($10.7)
 Net earnings (loss) per
 common share (in dollars) ($0.40) ($0.18)
 Number of shares outstanding (000) 60,186 60,032
 Other Information
 Cash flow from operations ($15.1) $15.1
 Additions to fixed assets $8.3 $46.8
 Ratio of debt to equity 0.74 0.63
 3 Months Ended
 March 31
 1992 1991
 Product Shipments
 Newsprint - M tonnes 84 104
 Market kraft pulp - M tonnes(a) 93 67
 Lightweight coated paper - M short tons 104 100
 Lumber - MMBM 153 160
 (a) Excludes 18 M tonnes (1991 - 18 M tonnes) shipped to Blandin.
 -0- 4/22/92
 /CONTACT: John Graf, VP, treasurer, 604-654-4383, or Stuart Clugston, director-corporate affairs, 604-654-4463, of Fletcher Challenge Canada Ltd./
 (FCC.) CO: Fletcher Challenge Canada Ltd. ST: British Columbia IN: PAP SU: ERN


AL -- LA030 -- 1501 04/22/92 17:26 EDT
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Date:Apr 22, 1992
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