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ABITIBI-PRICE RESTRUCTURES TO ADVANCE STRATEGIC PLAN

 ABITIBI-PRICE RESTRUCTURES TO ADVANCE STRATEGIC PLAN
 TORONTO, Oct. 26 /PRNewswire/ -- Abitibi-Price's (NYSE: ABY) third quarter statements reflect very significant progress towards its strategic objective of becoming a more focused company with a strong financial position.
 The statements for the third quarter of 1992 record the impact of four notable events. In September, the company sold its Distribution businesses for net proceeds of $274 million. On Oct. 20, the largest segment of the Building Products division was sold for a total consideration of $122 million. In addition, management has decided to aggressively pursue the sale of Provincial Papers, the company's coated paper operation, and as a consequence has made provision for an anticipated $72 million after-tax loss on the sale. A decision has also been made to close the idled Thunder Bay newsprint division and, as a result, the related assets have been written down to their realizable value. Accordingly, a pre-tax charge of $60 million has been recorded as an unusual item.
 Cash flow from asset sales has allowed the company to completely retire its short-term debt, with its attendant interest costs, and at Sept. 30, 1992, we had $50 million cash on hand.
 While the company's cash position reflects the cash flow from the sale of Distribution, the cash from the sale of Building Products was not received until the fourth quarter. The write-downs for Provincial and Thunder Bay are largely adjustments to book value and have little effect on cash flow.
 Results will now reflect a much purer newsprint and groundwood papers manufacturing company. As far as this business is concerned, it appears that the low point was reached in the second quarter, with operating losses for newsprint and groundwood in the first, second and third quarters of $34.9, $37.3 and $32.7 million respectively. While operating losses continue to be unacceptable, conditions are continuing to improve, with volume up and price increases being implemented in newsprint.
 Abitibi-Price reported a loss from continuing operations for the three months ended Sept. 30, 1992 of $31.7 million on sales of $438 million, compared to a loss of $5.4 million on sales of $409 million for the same period in 1991.
 In the first nine months of 1992, the company reported a loss from continuing operations of $106.8 million on sales of $1.2 billion, compared to an operating profit of $6.3 million on sales of $1.3 billion in the first nine months of 1991.
 The results of operations of the Distribution, Coated Papers and Building Products businesses have been combined and reclassified as discontinued operations. This reflects the intention of Abitibi-Price to exit these businesses, a process that is well underway with the completion of the sales of Distribution and the largest portion of Building Products.
 Abitibi-Price recorded a combined net loss from continuing and discontinued businesses of $68.7 million or one dollar per common share compared with a loss of $16.6 million in the third quarter of 1991 or 25 cents per share. For the first nine months of 1992, the company's loss was $151.6 million or $2.20 per common share, which compares with a loss of $27.8 million or 42 cents per share for the comparable 1991 period.
 Abitibi-Price, a major competitor in the global forest products industry, is a producer of newsprint, uncoated groundwood papers and coated papers. The company is a prominent distributor of office and information-processing products, as well as a converter of industrial towelling, folding cartons, paper bags and products for home, school and office use.
 ABITIBI-PRICE INC.
 Consolidated Earnings
 (unaudited)
 Three months Nine months
 Periods ended Sept. 30
 (millions of Canadian 1992 1991 1992 1991
 dollars) (restated-note) (restated-note)
 Net Sales $438.1 $409.1 $1,231.1 $1,275.1
 Cost of sales 423.1 365.8 1,197.0 1,119.5
 Selling and
 administrative expenses 23.6 25.4 71.8 79.0
 Depreciation and
 depletion 23.1 23.3 69.1 70.3
 Total 469.8 414.5 1,337.9 1,268.8
 Operating profit (loss)
 from continuing
 operations (31.7) (5.4) (106.8) 6.3
 Income (loss) from
 newsprint joint ventures,
 before income taxes (12.6) (2.2) (34.7) 6.7
 Interest expense
 - long-term (6.8) (7.3) (20.4) (20.6)
 - short-term (1.3) (1.4) (3.3) (5.4)
 Unusual items (note) (60.4) -- (61.2) (20.0)
 Other income and
 expense
 - net (4.6) 2.6 (9.8) 5.4
 Loss from continuing
 operations before
 income taxes (117.4) (18.9) (236.2) (27.6)
 Recovery of
 income taxes 44.1 5.5 87.5 11.3
 Loss from continuing
 operations (73.3) (13.4) (148.7) (16.3)
 Discontinued operations -
 Loss from discontinued
 operations, net of
 income taxes of $4.3,
 $2.3, $8.6 and $6.9,
 respectively (5.7) (3.2) (13.2) (11.5)
 Net gain on disposal
 of discontinued
 operations, net of
 an income tax
 recovery of $22.4
 (note) 10.3 -- 10.3 --
 Earnings (loss) from
 discontinued
 operations 4.6 (3.2) (2.9) (11.5)
 Loss for the period (68.7) (16.6) (151.6) (27.8)
 Provision for dividends
 on preferred shares (0.4) (0.4) (1.2) (1.3)
 Loss attributable to
 common shareholders $(69.1) $(17.0) $(152.8) $(29.1)
 Per common share:
 Loss from
 continuing operations $(1.06) $(0.20) $ (2.16) $(0.25)
 Loss $(1.00) $(0.25) $ (2.20) $(0.42)
 Dividends declared $0.125 $0.125 $ 0.375 $ 0.375
 Weighted average
 number of common shares
 outstanding
 (millions) 69.3 69.3 69.3 69.3
 ABITIBI-PRICE INC.
 Consolidated Segmented Information
 (unaudited)
 Periods ended Sept. 30 Three months Nine months
 (millions of
 Canadian dollars) 1992 1991 1992 1991
 Sales
 Newsprint $220.3 $224.9 $615.4 $701.8
 Groundwood
 papers 83.3 80.9 229.2 248.8
 Office products
 and converted
 products 93.0 80.8 272.6 288.7
 Other 41.7 22.9 114.8 37.0
 Intersegment
 eliminations (0.2) (0.4) (0.9) (1.2)
 Net sales $438.1 $409.1 $1,231.1 $1,275.1
 Operating Profit (Loss)
 Newsprint $(30.4) $(5.6) $(92.2) $ (0.7)
 Groundwood papers (2.3) (2.1) (12.8) 1.7
 Office products
 and converted
 products 1.1 1.2 (0.1) 4.7
 Other (0.1) 1.1 (1.7) 0.6
 Operating profit
 (loss)
 - from continuing
 operations $ (31.7) $ (5.4) $(106.8) $ 6.3
 PRIMARY PRODUCTION - FROM CONTINUING OPERATIONS
 Periods ended Sept. 30 Three months Nine months
 (figures in 1992 1991 1992 1991
 thousands)
 Newsprint (tons) 458 384 1,312 1,191
 Groundwood papers
 (tons) 109 98 308 308
 Lumber (mfbm) 17 14 50 40
 PRIMARY PRODUCTION - FROM DISCONTINUED OPERATIONS
 Hardboard
 (msf equivalent) 279 270 843 835
 Coated papers
 (tons) 32 25 85 63
 ABITIBI-PRICE INC.
 Changes in Consolidated Cash Position
 (unaudited)
 Period ended Sept. 30 Nine Months
 (millions of Canadian dollars) 1992 1991
 (restated - note)
 Operating Activities
 Loss from continuing operations $ (148.7) $ (16.3)
 Non-cash items 96.4 74.0
 Change in operating working
 capital (4.3) (60.0)
 Discontinued operations (40.3) 13.9
 Total (96.9) 11.6
 Financing Activities
 Repayment of long-term debt (24.3) (12.6)
 Retirement of preferred shares (1.6) (6.2)
 Other 0.2 0.2
 Total (25.7) (18.6)
 Investment Activities
 Additions to fixed assets (11.7) (20.4)
 Sales of discontinued
 operations, equity interest
 and operating divisions 273.7 90.3
 (Increase) decrease in long-term
 receivables (0.1) 1.2
 Investment in newsprint joint
 ventures (8.5) (5.4)
 Other 1.0 1.9
 Total 254.4 67.6
 Dividends Paid
 Preferred shareholders (1.2) (1.3)
 Common shareholders (26.0) (26.0)
 Total (27.2) (27.3)
 CASH - Increase 104.6 33.3
 - Beginning of period (54.9) (150.1)
 - End of period $ 49.7 $ (116.8)
 Cash comprises cash and short-term investments, less bank


indebtedness and commercial paper.
 ABITIBI-PRICE INC.
 Consolidated Balance Sheet
 (unaudited)
 Sept. 30 Dec. 31
 1992 1991
 ASSETS (restated - note)
 Current assets
 Cash and short-term
 investments $ 49.7 $ --
 Accounts receivable 143.7 163.5
 Income taxes receivable 6.1 7.3
 Inventories 205.1 341.6
 Prepaid expenses 21.8 28.4
 Net assets held for divestiture 127.7 220.4
 Total 554.1 761.2
 Fixed assets 1,877.2 1,979.6
 Less - accumulated
 depreciation and depletion (918.2) (905.8)
 Total 959.0 1,073.8
 Other assets
 Investments in newsprint
 joint ventures 190.0 202.6
 Deferred pension cost 82.1 76.8
 Goodwill 28.9 28.1
 Long-term receivables,
 investments and other assets 16.8 17.3
 Sub-Total 317.8 324.8
 Total $1,830.9 $2,159.8
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities
 Bank indebtedness and
 commercial paper $ - $ 54.9
 Accounts payable and accrued
 liabilities 356.2 342.6
 Dividends payable 8.7 8.6
 Long-term debt due within
 one year 12.1 13.7
 Total 377.0 419.8
 Long-term debt 370.9 368.6
 Deferred income taxes 241.6 349.5
 Shareholders' equity
 Preferred shares 19.5 21.1
 Common shares 262.2 262.2
 Retained earnings 559.7 738.6
 Subtotal 841.4 1,021.9
 Total $1,830.9 $2,159.8
 NOTE - DISCONTINUED OPERATIONS AND UNUSUAL ITEM
 DISCONTINUED OPERATIONS -
 The net gain recorded on the sales of Distribution and the largest portion of Building Products and the planned sales of Coated Papers and the remainder of Building Products, net of an income tax recovery of $22.4 million, is as follows:
 ($ millions)
 Distribution $ 103.6
 Building Products (21.5)
 Coated Papers (71.8)
 Total $ 10.3
 The results of operations of these discontinued businesses, and the applicable assets and liabilities, have been reclassified for the current and previous periods in these financial statements.
 Unusual item -
 The company decided in the third quarter to close the


Thunder Bay newsprint mill, which had been temporarily idled since March, 1991. The net assets of the mill have been written down to their estimated realizable value, resulting in a charge of $60 million which is recorded as an unusual item in the consolidated earnings statement.
 -0- 10/26/92
 /CONTACT: Eileen A. Mercier, senior vice-president, finance 416-369-6718, or Robert J. Tait, manager, investor relations, 416-369-6789, both of Abitibi-Price/
 (ABY) CO: Abitibi-Price Inc. ST: Ontario IN: PAP SU: ERN


TM -- NY127 -- 5114 10/26/92 20:02 EST
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Date:Oct 26, 1992
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