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AMERICAN PRESIDENT COMPANIES ANNOUNCES FIRST QUARTER RESULTS AND ITS INTENTION TO REPURCHASE UP TO TWO MILLION SHARES OF ITS COMMON STOCK

AMERICAN PRESIDENT COMPANIES ANNOUNCES FIRST QUARTER RESULTS AND ITS INTENTION TO REPURCHASE UP TO TWO MILLION SHARES OF ITS COMMON STOCK
 OAKLAND, Calif., April 28 /PRNewswire/ -- American President Companies Ltd. (NYSE: APS) (APC) today announced earnings for its first quarter ended April 3, 1992 of $17.8 million, or $1.06 per share, before a one-time after-tax charge of $21.6 million, or $1.42 per share, related to a change in the company's method of recognizing revenues and expenses. This compares with earnings for the first quarter of 1991 of $9.0 million, or $0.41 per share, before a one-time charge of $10.5 million, or $0.59 per share, related to a change in accounting for postretirement benefits. Including the accounting changes, the net loss for the first quarter of 1992 and the first quarter of 1991 was $3.8 million, or $0.36 per share, and $1.5 million, or $0.18 per share, respectively. Revenues increased to $660 million in the first quarter of 1992 from $624 million in the first quarter of 1991. Operating income was $36.4 million for the quarter, compared with $24.6 million in the same period in 1991. In addition to the 1992 change in accounting for revenues and expenses, the company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS 109) in the first quarter of 1992, applied retroactively to the beginning of fiscal 1989.
 American President Companies Ltd. also announced, with the approval of its board of directors, it intends to repurchase up to two million shares of its common stock. The form and timing of the repurchase will depend on market conditions. Chairman John Lillie said that the funds for the repurchase of the common stock will be provided by existing cash and proceeds from bank borrowings, as required. He said that the repurchase of common stock reflects the company's continuing adjustment of its overall financial structure.
 As earlier reported, Lillie stated that Operation Desert Storm contributed pre-tax income of $20 million in the first quarter of 1992, for the detention of containers held beyond an allowed time, and was also a very significant contributor to pre-tax income in the first quarter of 1991. Non-Desert Storm related results improved due to increases in international volumes, particularly in the U.S. export market, and due to the company's alliance with Orient Overseas Container Line (OOCL) effective in December 1991. Other factors included the continuing benefits of cost reductions and further improvements in the company's intra-Asia cargo mix.
 Lillie stated that the company, as it approached the end of the quarter, began to see signs of a possible recovery in the U.S. economy, which should help stimulate demand in its U.S. import and domestic markets. In addition, the company foresees continued market expansion and new business opportunities in the intra-Asia market.
 In the first quarter of 1992, the company changed its method of recognizing revenues and expenses to conform to new transportation industry guidelines issued on Jan. 23, 1992 by the Financial Accounting Standards Board's Emerging Issues Task Force. Under the new method, APC recognizes revenue on a percentage-of-completion basis and records expenses as incurred. APC previously recorded revenues and variable expenses at the time freight was loaded. As a result of this change, pre-tax income for the first quarter of 1992 was reduced $5 million, reflecting the fact that a portion of the revenues from the higher volumes of freight in transit at the end of the first quarter of 1992 will instead be recognized in the second quarter of 1992.
 SFAS 109, which was issued in February 1992, was also implemented by the company in the first quarter of 1992. APC's financial results for 1991, including the 1991 fiscal quarters, have been restated using the new method of accounting for income taxes. Financial results for 1989 and 1990 will also be restated and a one-time charge for the cumulative effect of the accounting change will be recorded as of the beginning of fiscal 1989. The company's retained earnings at the end of fiscal 1991 was reduced by $27 million as a result of this accounting change.
 American President Companies Ltd. provides container transportation and distribution services within and between Asia and North America through an intermodal system combining ocean, rail and truck transportation.
 Common Stock Ticker Symbol: APS
 AMERICAN PRESIDENT COMPANIES LTD.
 CONSOLIDATED STATEMENT OF INCOME
 (In millions, except per share data)
 Quarter Ended
 April 3, 1992 April 5, 1991
 REVENUES
 International Transportation $ 493.0 $ 458.8
 Domestic Transportation 166.5 165.4
 Real Estate 0.9 --
 660.4 624.2
 EXPENSES
 Operating, Net of Operating--
 Differential Subsidy 579.8 555.6
 General & Administrative 15.5 15.6
 Depreciation & Amortization 28.7 28.4
 624.0 599.6
 Operating Income (A) 36.4 24.6
 Interest, Net (7.7) (10.1)
 Income Before Taxes $ 28.7 $ 14.5
 Federal, State & Foreign Tax
 Expense (B) 10.9 5.5
 Income before Cumulative
 Effect of the Accounting Change 17.8 9.0
 Cumulative Effect on Prior
 Years of Changing
 the Accounting for
 Revenues & Expenses (C) (21.6) --
 Cumulative Effect on Prior
 Years of Changing
 the Accounting for
 Postretirement Benefits (D) -- (10.5)
 Net Income (Loss) $ (3.8) $ (1.5)
 Earnings (Loss) Per Common Share (E)
 Before Cumulative Effect of the
 Accounting Change $ 1.06 $ 0.41
 Cumulative Effect of the Accounting
 Change (1.42) (0.59)
 Earnings (Loss) Per Share $(0.36) $ (0.18)
 Weighted Average Common Shares (E) 15.2 17.6
 Operating Income (Loss) by Segment
 Transportation $ 36.3 $ 24.8
 Real Estate 0.1 (0.2)
 Total Operating Income $ 36.4 $ 24.6
 (A) The U.S. government is obligated to pay detention for the company's containers transported for Operation Desert Storm and held beyond an allowed time. The revenue and related expenses are recognized as revenue is collected. In the first quarter of 1992, the company recognized $27.7 million in revenue, less related expenses of $7.9 million. The company presently estimates that remaining collections will range from approximately $10 million to $20 million, before expenses.
 (B) The company adopted the new income tax accounting standard in the first quarter of 1992 and applied the effects retroactively to 1989. Earnings for the first quarter of 1991 have been restated to reflect this change, which resulted in a decrease of the previously reported net loss of $2.6 million, or $0.25 per share. The cumulative impact of this change on retained earnings at the end of 1991 was $27 million. After the restatement, net income for the full year 1991 increased from $53.9 million to $55.7 million, or from $3.00 per share to $3.12 per share.
 (C) The company changed its method of revenue and expense recognition in the first quarter of 1992 to a percentage-of-completion method for revenues and recognizing expenses as incurred, from recording revenues and variable expenses when cargo was loaded. If the new method of recognizing revenues and expenses had not been implemented, Net Income and Earnings per Share for the first quarter of 1992 would have been $21.0 million and $1.22, respectively. Conversely, if the new method of recognizing revenues and expenses had been applied retroactively to 1991, Income before the Cumulative Effect of the Accounting Change and related Earnings per Share for the first quarter of 1991 would have been $9.7 million and $0.45, respectively.
 (D) The company adopted the new accounting standard for postretirement health benefits in the fourth quarter of 1991 and, as required, the cumulative effect of this standard on prior years' retained earnings was recognized as a one-time charge as of the beginning of 1991. This amount has been restated from $10.1 million to reflect the effect of the change in income tax accounting.
 (E) Primary earnings available to common stock for the quarters ended April 3, 1992 and April 5, 1991 are net of dividends on preferred stock of $1.7 million.
 AMERICAN PRESIDENT COMPANIES LTD.
 1992 FIRST QUARTER OPERATIONAL HIGHLIGHTS
 Quarter Ended
 April 3, 1992 April 5, 1991
 VOLUMES (A)
 (in Forty Foot Equivalent Units - FEU's)
 INTERNATIONAL
 Import 51,500 50,400
 Export 45,000 37,300
 Intra-Asia 38,900 37,100
 Desert Storm 8,600
 Total International 135,400 133,400
 STACKTRAIN
 International 52,300 49,600
 Domestic 83,800 79,100
 Total Stacktrain 136,100 128,700
 AVERAGE REVENUE PER FEU (A)
 INTERNATIONAL
 Import $3,826 $3,786
 Export $3,251 $3,330
 Intra-Asia $2,091 $1,998
 Desert Storm $5,137
 DOMESTIC STACKTRAIN (B) $1,349 $1,284
 (A) The company changed its method of revenue and expense recognition in the first quarter of 1992 to a percentage-of-completion basis from a method that recorded revenues and variable expenses at the time freight was loaded. These amounts are presented under the company's previous method.
 (B) Average revenue per FEU excludes the effect of international stacktrain revenues and volumes.
 Quarter Ended
 April 3, 1992 April 5, 1991
 TRANSPORTATION OPERATING EXPENSES (in millions) (A)
 Land Transportation $242.3 $245.6
 Cargo Handling 117.2 99.6
 Vessel, Net 74.3 86.8
 Transportation Equipment 56.3 45.1
 Information Systems 12.6 12.8
 Other 76.3 65.4
 Total $579.0 $555.3
 Percentage of Transportation
 Revenue 88 89
 (A)Excluding Real Estate Operating Expenses
 -0- 4/28/92
 /CONTACT: Randall K. Gausman of American President Companies Ltd., 415-272-8284/
 (APS) CO: American President Companies Ltd. ST: California IN: TRN SU: ERN


MM -- SF014 -- 4122 04/28/92 21:19 EDT
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