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REPAP ANNOUNCES SIGNIFICANT IMPROVEMENT IN FIRST QUARTER 1993

 MONTREAL, April 22 /PRNewswire/ -- Repap Enterprises Inc. (NASDAQ: RPAPF) today announced its results from operations for the first quarter ended March 31, 1993. Repap's cash loss from operations, before net changes in non-cash working capital, was $18.8 million, a marked improvement from cash losses of $41.1 million and $48.7 million reported in the first quarter and fourth quarter 1992 respectively. Revenues totalled $310.9 million, up 14 percent from comparable 1992 revenues of $273.2 million. Repap recorded a loss before income taxes and dividend accrual to non-controlling shareholders of $49.3 million, representing an improvement of $17.7 million from the $67 million loss reported in 1992.
 Repap's cash-flow has been improving steadily throughout the first quarter, with the month of March showing a significantly lower cash loss from operations of $3 million dollars. The fourth quarter 1992 surge in lumber demand and prices is continuing to generate impressive benefits in the first quarter 1993. Shipments of lumber totalled 118 million board feet, up 45 percent from the 81 million board feet shipped during the first quarter of 1992 as Repap realizes the benefits of 170,000 board feet of additional annual capacity with the timely purchase of the Carnaby sawmill in August 1992.
 Repap's first quarter 1993 lumber activities have generated $12.9 million dollars of operating margin before depreciation, eight times that of the comparable quarter in 1992 and more than double 1992's lumber contribution for the year.
 Coated paper revenues totalled $197.7 million, up 20 percent from revenues of $165.1 million reported in the first quarter of 1992.
 Repap's shipments of coated paper totalled 197,000 short tons during the first quarter, up 14 percent from first quarter 1992 shipments. Coated paper operating margins before depreciation have improved benefiting from increased production efficiency at all locations, greater percentage of higher value added sheet products and more favorable foreign exchange rates.
 A recent revision in 1992 North American coated groundwood shipments and operating rates indicates that market conditions were tighter than believed to be in 1992. With strong first quarter 1993 demand and a projected growth of 5 percent to 7 percent in U.S. coated paper consumption for 1993 and 1994, operating rates are expected to quickly reach their practical maximum capacity. This environment has led major North American producers to announce significant price increases on coated groundwood grades effective June 1, 1993 including Repap, with a price increase of 7 percent on No. 5 40 lb. coated groundwood paper and similar increases on other grades and basis weights.
 Market pulp revenues totalled $51 million, down 23 percent from revenues of $67 million in the first quarter of 1992, on shipments of 90,000 metric tons, also down 21 percent from first quarter 1992 shipments. First quarter 1992 shipments benefited from increased consumer buying activity in the face of an anticipated British Columbia industry-wide strike which occurred in July.
 Although demand/supply balance in world pulp markets has begun to stabilize, producer inventories remain high. A number of pulp producers have announced significant downtime to be taken this spring, which, combined with the increase in demand expected to result from paper producers replenishing their inventories as a result of improving paper markets and strengthening economic activity in Europe and Japan later in the year, should allow price increases.
 The initial benefit of Repap's $2.3 billion capital program has recently started to be realized as new production levels have been achieved in three locations in the first three months of 1993. Repap's British Columbia pulp mill achieved a new standard of performance record of 1,336 tons per day in March and a new quarterly record of 111,900 metric tons from the previous record of 108,700 metric tons set in the third quarter of 1988. Repap New Brunswick achieved a production level of 1,075 tons per day in the month of February, 15 percent higher than the fourth quarter of 1992. Repap's Wisconsin coated paper mill achieved a production level of 1,337 tons per day in January, 4 percent higher than the previous highest level achieved.
 The increase in production is particularly important for Repap's coated paper operations where significant price increases have been announced, which will have a significant positive impact on coated paper margins going forward.
 Repap's strategic manufacturing and resource advantages are concentrated in the company's annual manufacturing capacity of 940,000 tons of high value-added coated paper, 650,000 metric tons of northern softwood bleached kraft pulp; 160,000 tons of superior strength kraft paper, 500 million board feet of high value-added lumber as well as its scientific and production intellectual properties. The company has tenured woodlands licensing agreements in excess of 7.4 million hectares under management in Canada.
 Repap's manufacturing facilities are located in British Columbia, Manitoba and New Brunswick, Canada and Wisconsin, U.S.A. Repap's shares are traded on the Montreal, Toronto and Vancouver stock exchanges under the symbol of RPP and on NASDAQ in the U.S.A. under the symbol of RPAPF.
 REPAP ENTERPRISES INC.
 Financial Highlights
 (Cdn. Millions)
 Periods ended First Quarter
 1993 1992
 Revenues $310.9 $273.2
 Cash Flow from Operations before
 working capital changes (18.8) (41.1)
 Loss before income taxes and
 accrual for dividends to
 non-controlling interests (49.3) (67.0)
 Provision for income taxes 1.0+ (24.9)
 Loss before the following (50.3) (42.1)
 Accrual for dividends to
 non-controlling interests 3.9 2.5
 Net Loss $(54.2) $(44.6)
 Loss per share $ (0.64) $ (0.86)
 Shipment Statistics
 Paper (thousands of short tons) 227 202
 Pulp (thousands of metric tons) 90 115
 Lumber (millions of board feet) 118 81
 NOTE: No provision for income tax recovery will be recorded in the accounts of the corporation's Canadian operations until they return to profitability.
 -0- 4/22/93
 /CONTACT: Daniel Veniez, vice-president-corporate affairs of Repap Enterprises, 514-846-1316/
 (RPAPF)


CO: Repap Enterprises Inc. ST: Quebec IN: PAP SU: ERN

TM -- NY140 -- 9782 04/22/93 17:32 EDT
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Date:Apr 22, 1993
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