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AMERICAN PRESIDENT COMPANIES ANNOUNCES PRELIMINARY 1992 FIRST QUARTER RESULTS

 AMERICAN PRESIDENT COMPANIES ANNOUNCES
 PRELIMINARY 1992 FIRST QUARTER RESULTS
 OAKLAND, Calif., April 24 /PRNewswire/ -- American President Companies, Ltd. (APC) (NYSE: APS) announced today that preliminary pre-tax income was $29 million for the first quarter of 1992, after a reduction of approximately $5 million resulting from implementation of an accounting change in the company's method of revenue and expense recognition. This compares with pre-tax income of $15 million for the first quarter of 1991. The company is calculating the after-tax impact of the change in accounting for revenue and expense recognition and the change in accounting for income taxes which is also being implemented. The company expects next week to complete this effort and announce after-tax results for the 1992 first quarter.
 APC Chairman John Lillie said 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.
 Commenting on the non-Desert Storm related results, Lillie stated, "We are pleased with the strength of our first quarter 1992 operating results in what is traditionally a weak period for the shipping industry. Our performance 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 continued, "As we approached the end of the quarter, we began to see signs of a possible recovery in the U.S. economy, which should help stimulate demand in our U.S. import and domestic markets. In addition, we are seeing continued market expansion and new business opportunities in the intra-Asia market."
 The company is changing its method of recognizing revenues and expenses to conform to new transportation industry guidelines issued on January 23, 1992 by the Financial Accounting Standards Board's Emerging Issues Task Force. The cumulative one-time effect of the change will result in a non-cash after-tax charge, estimated to be $22 million, in the first quarter of 1992, which is expected to result in a reported net loss for the quarter.
 Under the new accounting method, APC will recognize revenue on a percentage-of-completion basis and record expenses as incurred. APC previously recorded revenues and variable expenses at the time freight was loaded. The reduction in pre-tax income for the first quarter of 1992 reflects 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.
 Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes", which was issued in February 1992, is also being implemented by the company in the first quarter of 1992. APC's financial results for 1989, 1990 and 1991 will be restated using the new method of accounting for income taxes, and a one-time charge for the cumulative effect of the accounting change will be recorded as of the beginning of fiscal 1989. It is currently estimated that the company's retained earnings at the end of fiscal 1991 will be reduced by approximately $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.
 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.
 -0- 4/24/92
 /CONTACT: R. K. Gausman of American President Companies, 510-272-8284/
 (APS) CO: American President Companies, Ltd. ST: California IN: PAP SU: ERN


TS-PS -- NY006 -- 2289 04/24/92 08:57 EDT
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Date:Apr 24, 1992
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