Printer Friendly

JAMES RIVER REPORTS SECOND QUARTER EARNINGS

 RICHMOND, Va., July 22 /PRNewswire/ -- James River Corporation (NYSE: JR) reported net income of $13.7 million or $.06 per share on sales of $1.2 billion for its second quarter which ended on June 27, 1993. Sales were equivalent to last year's second quarter, while net income increased 33 percent over the $10.3 million reported for the second quarter of 1992. Earnings per share were $.06 in both years' second quarters, with 1993 results reduced by higher preferred dividends. Earnings per share for the second quarter of 1993 also compared favorably with the loss of $.22 reported in the first quarter of 1993 and the fourth quarter of 1992 loss of $.72 on a comparable basis.
 Operating results improved for all business segments during the second quarter of 1993 versus the first quarter. The Consumer Products Business' results reflected stable volume, increased pricing, and improved productivity and cost management. The national rollout of new Quilted Northern(R) bathroom tissue continues to be successful. Dixie(R) retail and commercial products also contributed to the strong upturn. Commercial operations were bolstered by a towel and tissue price increase and the introduction of the new line of Nova(R) designer cups and Rio(TM) foodservice items. The Food and Consumer Packaging Business has continued to experience competitive pricing pressures and flat market conditions. The new coated recycled board machine in Kalamazoo, Michigan, achieved premium quality output during the quarter, but at lower than anticipated volume. The Communications Papers Business has realized improved pricing for uncoated papers and stronger demand for most grades. Cost reduction efforts continue to contribute to improving results in each of the company's businesses.
 Results for the second quarter of 1993 included pretax income of $6.7 million, or $.05 per share after taxes, consisting of interest income of $8.8 million on the settlement of prior year income tax returns, partially offset by the write-off of $2.1 million of preferred stock received in a prior divestiture.
 For the six months, James River reported sales of $2.3 billion in 1993, compared to $2.4 billion in 1992. Net income for the first half of 1993 was $3.6 million, or a loss of $.16 per share after preferred dividend requirements, compared to 1992's net loss of $3.7 million, or $.19 per share on a comparable basis.
 During the second quarter, the company announced that it had received notice that Occidental Forest Inc. was exercising its right to sell to James River its 77 percent ownership interest in Diamond Occidental Forest Inc. ("DOFI"). James River previously held 23 percent of DOFI, which owns 820,000 acres of timberland, and will purchase the remaining shares for approximately $198 million in November 1993. In June, DOFI signed a letter of intent providing for the sale of more than 300,000 acres of timberlands to the Hancock Timber Resources Group. Proceeds from this and other anticipated land sales during 1993, expected to total in excess of $100 million, will be applied to the DOFI purchase.
 The company continues to focus on productivity improvement programs designed to lower ongoing annual operating costs by $200 million. Despite the soft economy, management is encouraged by its progress toward this goal, with staffing reductions of over 1,000 realized by the end of the second quarter. James River will continue to focus on delivering value to customers by providing high performance products with increased emphasis on lower costs.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 James River Corporation of Virginia and Subsidiaries
 For the quarters (13 weeks) ended
 June 27, 1993 and June 28, 1992
 (in thousands, except per share amounts)
 Second Quarter
 1993 1992(c)
 Net sales $1,198,134 $1,236,625
 Cost of goods sold 983,337 1,003,172
 Selling and administrative expenses 172,609 185,892
 Income from operations 42,188 47,561
 Interest expense 33,317 38,119
 Other income, net (a) 13,730 6,150
 Income before income taxes 22,601 15,592
 Income tax expense 8,865 5,293
 Net income $ 13,736 $ 10,299
 Preferred dividend requirements (8,205) (6,149)
 Net income applicable to
 common shares $ 5,531 $ 4,150
 Net income per common share and
 common share equivalent $.06 $.06
 Weighted average number of common
 shares and common share
 equivalents -- fully diluted 81,846 81,803
 See the accompanying footnotes.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 James River Corporation of Virginia and Subsidiaries
 For the six months (26 weeks) ended
 June 27, 1993 and June 28, 1992
 (in thousands, except per share amounts)
 Six Months
 1993 1992(c)
 Net sales $2,311,759 $2,372,978
 Cost of goods sold 1,918,057 1,951,567
 Selling and administrative expenses 333,860 359,366
 Income from operations 59,842 62,045
 Interest expense 72,502 75,889
 Other income, net (a) 17,919 7,508
 Income (loss) before income taxes
 and the cumulative effect of
 changes in accounting principles 5,259 (6,336)
 Income tax expense (benefit) 1,653 (2,634)
 Net income (loss) before the
 cumulative effect of changes
 in accounting principles 3,606 (3,702)
 Cumulative effect of changes in
 accounting principles:
 Change in accounting for income
 taxes (b) 35,923
 Change in accounting for
 postretirement benefits other
 than pensions, net of income
 tax benefit of $189,534 (c) (309,765)
 Net income (loss) $ 3,606 $ (277,544)
 Preferred dividend requirements (16,413) (12,299)
 Net income (loss) applicable
 to common shares $ (12,807) $ (289,843)
 Net income (loss) per common share
 and common share equivalent:
 Before the cumulative effect of
 changes in accounting principles $(.16) $ (.19)
 Cumulative effect of change in
 accounting for income taxes (b) .44
 Cumulative effect of change in
 accounting for postretirement
 benefits other than pensions (c) (3.79)
 Net income (loss) per share $(.16) $(3.54)
 Weighted average number of common
 shares and common share
 equivalents -- fully diluted 81,795 81,770
 (a) Other income for the second quarter of 1993 includes $8.8
 million of interest income on refunds resulting from the favorable
 settlement of certain prior years' income tax returns, partially
 offset by a $2.1 million charge for the write-off of preferred stock
 received in a prior divestiture.
 (b) Effective as of the beginning of 1992, James River adopted
 Statement of Financial Accounting Standards No. 109, "Accounting for
 Income Taxes" ("SFAS 109"), which requires the adoption of the
 liability method of accounting for income taxes. In connection with
 the adoption of SFAS 109, the Company recorded a credit of $35.9
 million, or $.44 per share.
 (c) James River adopted Statement of Financial Accounting Standards
 No. 106, "Employers' Accounting for Postretirement Benefits Other
 Than Pensions" ("SFAS 106"), during the fourth quarter of 1992,
 retroactive to the first day of 1992. Results for 1992 have been
 restated for the impact of SFAS 106. SFAS 106 requires the accrual
 of the cost of providing postretirement benefits during the years
 that employees render service. The Company elected immediate
 recognition of the cumulative effect of this change in accounting of
 $499.3 million ($309.8 million net of income tax benefits of $189.5
 million, or $3.79 per share).
 -0- 7/22/93
 /CONTACT: Celeste Gunter (Financial), 804-649-4307, Steve Garnett (Media), 804-649-4362, both of James River/
 (JR)


CO: James River Corporation ST: Virginia IN: PAP SU: ERN

TW -- DC005 -- 4820 07/22/93 17:28 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1993
Words:1226
Previous Article:PSC INC. REPORTS FIRST HALF REVENUE UP 7 PERCENT
Next Article:ETHYL DECLARES QUARTERLY DIVIDEND
Topics:


Related Articles
JAMES RIVER CORPORATION OF VIRGINIA RELEASES ANNOUNCEMENT
JAMES RIVER REPORTS THIRD QUARTER 1994 RESULTS
JAMES RIVER CORPORATION REPORTS IMPROVED SECOND QUARTER 1995 RESULTS
JAMES RIVER REPORTS HIGHER THIRD QUARTER 1995 SALES AND PROFITS
JAMES RIVER REPORTS FOURTH QUARTER 1995 RESULTS
JAMES RIVER REPORTS FIRST QUARTER 1996 RESULTS
JAMES RIVER REPORTS SECOND QUARTER 1996 RESULTS
James River Reports Fourth Quarter And 1996 Results
James River Reports Improved First Quarter 1997 Results
James River Reports Improved Second Quarter 1997 Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters