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GEORGIA-PACIFIC REPORTS SECOND QUARTER RESULTS

 GEORGIA-PACIFIC REPORTS SECOND QUARTER RESULTS
 ATLANTA, July 15 /PRNewswire/ -- Georgia-Pacific Corp. (NYSE: GP)


today reported break-even results for the three months ended June 30, 1992, compared with net income of $29 million (34 cents per share) in the 1991 second quarter. The 1991 results reflect a $29 million (34 cents per share) after-tax gain on the sale of timberlands.
 The company generated free cash flow of approximately $56 million for the three months ended June 30, 1992. Free cash flow consisted of cash from operations of approximately $146 million and proceeds from miscellaneous asset sales of approximately $14 million, less capital expenditures of approximately $104 million. Sales for the second quarter were $3 billion in both 1992 and 1991.
 Georgia-Pacific's building products business reported operating profits of $163 million, a record for the second quarter, compared with $132 million last year. Pulp and paper profits for the same period were $42 million versus $105 million a year ago.
 For the six-month period, net income was $5 million (6 cents per share) versus a net loss of $44 million (51 cents per share) last year. The 1991 results include after-tax gains on asset sales of $72 million (84 cents per share) and noncash charges of $63 million (73 cents per share) for accounting changes.
 "Our building products operating profits for the first six months of this year are equal to that business' profits for all of 1991," said T. Marshall Hahn Jr., chairman and chief executive officer. "The strong prices and demand that supported all-time record results for building products in the first quarter have weakened. The second period results, however, still exceeded the profits reported in any quarter prior to 1992.
 "Our pulp and paper business continues to be pressured by weak market conditions. Although pulp prices and demand have continued to improve, our communication papers, tissue and bleached board businesses continue to face excess capacity in the industry and depressed prices. In our containerboard business, which has improved significantly compared with a year ago, demand remains strong, with the industry anticipating a further seasonal increase in demand this fall," Hahn concluded.
 A tabulation of results follows:
 GEORGIA-PACIFIC CORPORATION AND SUBSIDIARIES
 Operating Highlights
 (Dollar amounts, except per share, in millions)
 (unaudited)
 Three Three Months Ended
 Months June 30, 1991
 Ended Including Excluding
 June 30, Asset Asset Asset
 1992 Sales Sales Sales
 NET SALES
 Building products $ 1,592 $ 1,465 $ - $ 1,465
 Pulp and paper 1,446 1,507 - 1,507
 Other operations 8 9 - 9
 Total net sales $ 3,046 $ 2,981 $ - $ 2,981
 OPERATING PROFITS
 Building products $ 163 $ 132 $ - $ 132
 Pulp and paper 42 105 - 105
 Other operations 3 7 - 7
 Other income - 46 46 -
 Total operating profits 208 290 46 244
 General corp. expense (29) (53) - (53)
 Interest expense (144) (143) - (143)
 Cost of accounts receivable
 sale program (10) (15) - (15)
 Income before inc. taxes 25 79 46 33
 Provision for inc. taxes(25) (50) (17) (33)
 Net income $ - $ 29 $ 29 $ -
 Per share:
 Net income $ - $ .34 $ .34 $ -
 Average number of
 shares outstanding 86.4 85.8 85.8 85.8
 GEORGIA-PACIFIC CORPORATION AND SUBSIDIARIES
 Operating Highlights
 (Dollar amounts, except per share, in millions)
 (unaudited)
 Six Six Months Ended
 Months June 30, 1991
 Ended Including Excluding
 June 30, Asset Asset Asset
 1992 Sales Sales Sales
 NET SALES
 Building products $ 2,993 $ 2,627 $ - $ 2,627
 Pulp and paper 2,864 3,115 - 3,115
 Other operations 19 17 - 17
 Total net sales $ 5,876 $ 5,759 $ - $ 5,759
 OPERATING PROFITS
 Building products $ 346 $ 138 $ - $ 138
 Pulp and paper 88 246 - 246
 Other operations 6 9 - 9
 Other income - 293 293 -
 Total operating
 profits 440 686 293 393
 General corporate
 expense (97) (86) - (86)
 Interest expense (287) (296) - (296)
 Cost of accounts receivable
 sale program (19) (32) - (32)
 Income (loss) before income
 taxes and accounting
 changes 37 272 293 (21)
 Provision for income
 taxes (32) (253) (221) (32)
 Income (loss) before
 accounting changes 5 19 72 (53)
 Cumulative effect of
 accounting changes,
 net of taxes - (63) - (63)
 Net income (loss) $ 5 $ (44) $ 72 $ (116)
 Per share:
 Income (loss) before
 accounting changes $ .06 $ .22 $ .84 $ (.62)
 Cumulative effect of
 accounting changes - (.73) - (.73)
 Net income (loss) $ .06 $ (.51) $ .84 $ (1.35)
 Average number of
 shares outstanding 86.3 85.6 85.6 85.6


Notes to Operating Highlights 1. Income (Loss) Per Share. Income (loss) per share is computed based on net income (loss) and the weighted average number of common shares outstanding, net of restricted stock. The effects of assuming issuance of common shares under long-term incentive, stock option and stock purchase plans are insignificant. 2. Accounting Changes. Effective January 1, 1991, the Corporation adopted Financial Accounting Standard Number 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." Also effective on this date, the Corporation changed its accounting policy to include in inventory certain supplies that previously were expensed. 3. Sale of Accounts Receivable. As of June 30, 1992 and 1991, the Corporation had sold fractional ownership interests in a defined pool of trade accounts receivable for $800 million and $900 million, respectively. A portion of the cost of the accounts receivable sale program is based on the purchasers' level of investment and borrowing costs. Additionally, the Corporation pays fees based on its senior debt ratings. 4. Other Income. In June 1991, the Corporation sold 49,000 acres of fee timberland in Washington for $48 million in cash. A pretax gain of $46 million ($29 million after taxes) was recognized on this transaction. In January 1991, the Corporation sold two domestic containerboard mills, 19 corrugated packaging plants and approximately 540,000 acres of fee timberland (and lease rights to 98,000 acres of timberland) for $725 million in cash and, in a separate transaction, sold its interests in a foreign containerboard mill, two corrugated packaging plants and two sheet plants for $102 million in cash. A combined pretax gain of $247 million ($43 million after taxes) was recorded in the first quarter. 5. Provision for Income Taxes. The provision for income taxes for the three months ended June 30, 1992, was based on an 87 percent estimated effective tax rate on income before income taxes for the year. The effective tax rate exceeds the federal statutory tax rate primarily because of nondeductible depreciation, depletion and goodwill amortization expenses associated with the revaluation of assets in past business acquisitions.
 Excluding asset sales, the Corporation reported a pretax loss of $21 million and an income tax provision of $32 million for the six months ended June 30, 1991. The provision for income taxes was based on the effective tax rate for the six-month period. An annual effective tax rate could not be reasonably estimated in 1991 due to the low level of income before income taxes for the period relative to nondeductible expenses.
 -0- 7/15/92
 /CONTACT: Sheila Weidman of Georgia-Pacific, 404-521-4732/
 (GP) CO: Georgia-Pacific Corporation ST: Georgia IN: PAP SU: ERN


EA -- AT002 -- 9379 07/15/92 08:17 EDT
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Date:Jul 15, 1992
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