BOISE CASCADE CORP. REPORTS EARNINGS
BOISE CASCADE CORP. REPORTS EARNINGS BOISE, Idaho, April 14 /PRNewswire/ -- Boise Cascade Corp.
(NYSE: BCC) today reported a loss for the first quarter of 1992, primarily because of severely depressed prices for the company's key paper grades.
For the first quarter of 1992, the company posted a net loss of $42.9 million, or $1.29 per fully diluted share. This compares with a net loss of $16.9 million, or 53 cents per fully diluted share, in the first quarter of 1991. In the fourth quarter of 1991, the company reported a net loss of $15.8 million, or 51 cents per fully diluted share. However, before adjusting for a gain on the sale of an asset, the loss in the fourth quarter was $1.12 per share. Sales for the first quarter of 1992 were $954 million, compared with $993 million in the first quarter of 1991 and $963 million in the fourth quarter of 1991. Boise Cascade felt the severe impact of deteriorating paper prices in the first quarter of 1992. Adverse market conditions drove prices for most of the company's grades of pulp and paper down from year-ago levels. Further, prices for the company's most important grades -- coated and uncoated business and printing papers and newsprint -- fell substantially in the first quarter from already-depressed fourth- quarter levels. Prices for uncoated business and printing papers were substantially below the previous lowest price of the last 10 years. In addition, weak demand and excess supply for business and printing papers forced the company to take downtime in uncoated and coated paper due to lack of orders during the quarter. Profitability in the office products segment for the first quarter was down from results of both the first and fourth quarters of 1991, primarily because of the sale of the company's wholesale office products distribution operations, which was completed during the first quarter of 1992. The office products segment continued to feel the effects of a weak U.S. economy, although dollar in the first quarter more than doubled that of the fourth quarter of 1991 and compared very favorably with the loss in this segment in the first quarter a year ago. The improved performance resulted from sharply increased prices for lumber and plywood, offset in part by rising delivered-log costs. The strong prices were driven by improving demand in the nation's housing and repair-and-remodel markets, as well as by continued concerns about the preservationist-inspired shortage of timber available for harvest in the Pacific Northwest. "Boise Cascade's depressed results during the first quarter stemmed primarily from the weak paper pricing which has been so prevalent, particularly in our key grades, during this economic and cyclical downturn," said John B. Fery, chairman of the board and chief executive officer. "Also contributing to the company's poor financial performance were high interest and depreciation charges resulting from our more than $2 billion of capital investment since 1987. The benefits from this investment are just now beginning to be demonstrated. "A further strengthening in the U.S. economy will be required," Fery said, "in order to see a meaningful improvement in demand for many of the company's products. To date, demand in the company's building products business has turned decidedly positive, but in office products distribution and, most importantly, in pulp and paper, particularly in Boise Cascade's grade mix, the evidence of growth in demand has been slight so far. As the economy recovers, pulp and paper demand should grow and paper prices should rebound from their current very low levels. We expect the company's performance to improve with the economy. In the meantime, we are continuing to emphasize cost control and quality improvement throughout the company's operations." Boise Cascade Corp. is an integrated paper and forest products company headquartered in Boise, Idaho, with operations located in the United States and Canada. The company manufactures and distributes paper and paper products, office products, and building products and owns and manages timberland to support these operations. BOISE CASCADE CORP. LOSS SUMMARY (unaudited) Three Months Ended March 31: 1992 1991 Sales $ 953,930,000 $ 992,730,000 Net loss (42,860,000) (16,850,000) Average primary shares 37,944,000 37,948,000 Net loss per share: Primary $ (1.29) $ (0.53) Fully diluted $ (1.29) $ (0.53) (a) The computation of fully diluted net loss per common share was antidilutive; therefore, the amounts reported for primary and fully diluted loss are the same. -0- 4/14/92 /CONTACT: Vincent Hannity of Boise Cascade, 208-384-6390, or after hours, 208-345-8141/ (BCC) CO: Boise Cascade Corp. ST: Idaho IN: PAP SU: ERN
LM -- SE006 -- 8110 04/14/92 09:24 EDT
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|Date:||Apr 14, 1992|
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