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AMERICAN BUSINESS PRODUCTS ADOPTS FAS 106

 ATLANTA, Dec. 21 /PRNewswire/ -- American Business Products, Inc. (NYSE: ABP) announced today that it will adopt Statement of Financial Accounting Standards No. 106 (Employers' Accounting for Postretirement Benefits Other than Pensions) in 1992.
 This statement, adoption of which is mandatory by 1993, requires that the company change from its present method of recording the cost of postretirement benefits (principally healthcare) on a pay-as-you-go basis to a method which will accrue these costs over the years in which employment services are performed.
 Adoption of this standard will be accounted for as a change in accounting method. Accordingly, the company will record, retroactively to the first quarter of 1992, a one-time after-tax charge to net income of approximately $12 million. This charge will not affect cash flow. Incremental service costs and interest costs during 1992 will reduce previously announced quarterly results by approximately $350,000 for each quarter in 1992.
 In announcing the accounting changes, Thomas R. Carmody, president and CEO stated, "We have reconsidered our previous position regarding the year of adoption of this standard. We now believe a 1992 adoption will allow us to move forward into 1993 on a comparable basis with 1992, thereby mitigating the financial comparison distortions a later adoption would produce.
 "As a financially strong company, we have chosen to recognize these obligations through an immediate accrual to provide maximum future, financial flexibility. We have taken steps and will continue to take action in the future to contain American Business Products' financial liability for healthcare benefit costs," said Carmody.
 ABP's operating companies and their products and services are: Curtis 1000 Inc., envelopes, labels and business forms; Vanier Business Forms & Services, business forms; BookCrafters USA, Inc., book printing and distributing; American Fiber-Velope Mfg. Co., specialty envelopes and filing systems; and Jen-Coat, Inc., specialty extrusion coating and laminating of packaging. ABP is a joint venture partner in Curtis 1000 Europe GmbH, which produces and markets envelopes in Europe with facilities in Germany, England, Luxembourg, and Poland.
 -0- 12/21/92
 /CONTACT: T.R. Carmody of American Business Products, 404-953-8300/
 (ABP)


CO: American Business Products, Inc. ST: Georgia IN: SU:

CF-RA -- AT007 -- 0132 12/21/92 12:31 PST
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Publication:PR Newswire
Date:Dec 21, 1992
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