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BOISE CASCADE REPORTS EARNINGS

 BOISE CASCADE REPORTS EARNINGS
 BOISE, Idaho, Jan. 15 /PRNewswire/ -- Boise Cascade Corp.


(NYSE: BCC) today reported a loss for the fourth quarter and for the full year of 1991, primarily because of severely depressed prices in the company's key pulp and paper grades.
 For the fourth quarter of 1991, the company posted a loss of $15.8 million, or 51 cents per share fully diluted. This compares with net income of $4.8 million, or 4 cents per share fully diluted, in fourth quarter 1990 and a loss of $14.3 million, or 47 cents per share, in third quarter 1991. Results for the fourth quarter of 1991 included a gain of 61 cents per share fully diluted from the sale of the company's 50-percent interest in a European corrugated container joint venture.
 The fourth quarter was modestly stronger than the third quarter, before adjustments for reserves and gains in both quarters. The losses per share on this basis were $1.12 in the fourth quarter, compared with $1.24 in the third quarter.
 Sales in fourth quarter 1991 were $963 million, compared with $1 billion in fourth quarter 1990.
 For the full year of 1991, Boise Cascade reported a net loss of $79.5 million, or $2.46 per share fully diluted. By contrast, the company earned a net profit in 1990 of $75.3 million, or $1.62 per share fully diluted. Sales for 1991 were $4 billion, compared with $4.2 billion in 1990.
 Boise Cascade's weak performance in the fourth quarter of 1991 and for the full year was due largely to four factors:
 -- Most importantly, adverse market conditions in the company's pulp and paper business, which drove prices down for all of the company's grades of pulp and paper over the course of the year.
 -- High wood costs in the Pacific Northwest, where preservationist-inspired efforts have led to constraints on available timber supply. Costs increased for wood chips to the company's pulp and paper mills and for delivered logs to its wood products operations.
 -- Lower sales volume and squeezed profit margins in office products distribution, as that business felt the effects of a weak economy.
 -- High interest and depreciation charges associated with $2.2 billion of capital investment since 1987.
 PAPER AND PAPER PRODUCTS
 The company's paper and paper products segment incurred a loss in the fourth quarter of 1991, as prices for newsprint, coated papers, and market pulp continued to decline on average from third-quarter levels. The company experienced modest improvement in prices for containerboard and uncoated white paper in the fourth quarter, which led to less of a loss in the fourth quarter than in the third quarter.
 For the full year 1991, weighted-average prices for Boise Cascade's mix of pulp and paper grades were down $72 per ton, or 12 percent, from 1990 levels. In the company's most important grade, uncoated white papers, the average price declined 20 percent, or $163 per ton, from the 1990 level.
 Unit sales volume was higher in 1991 than in 1990 because of added capacity. However, weak demand or excess supply, or both, forced some company facilities to curtail operations for lack of orders. Order backlogs became particularly weak late in the fourth quarter of 1991, when the Kenora, Ontario, newsprint facility and the Rumford, Maine, coated paper mill took a total of more than 40,000 tons of market- related downtime.
 OFFICE PRODUCTS
 The office products segment continued to feel the effects of a weak U.S. economy, although sales volume in the consumer channel in the fourth quarter was up slightly from year-ago levels, as it was for the full year. Segment income was down in the fourth quarter from that of the same period a year ago and was down substantially for the entire year, compared with 1990 results, as profit margins in the business continued to be under pressure. In January 1992, the company expects to complete the previously announced sale of its wholesale office products operations for approximately $90 million. The proceeds will be used primarily to reduce debt.
 BUILDING PRODUCTS
 Income for the company's building products segment was up sharply from income in the year-ago fourth quarter. Further, segment income was down only modestly from income in the third quarter of 1991, excluding a third-quarter reserve and gain on the sale of timberland, despite fourth-quarter seasonal weakness. Although demand in the nation's housing and repair-and-remodel markets was sluggish, prices for lumber and plywood on average were driven higher than year-ago levels by proper concerns about the shortage of timber available for harvest in the Pacific Northwest. Delivered-log costs also increased. Segment operating income for the full year was up substantially from year-ago levels.
 Looking ahead, the company said that market conditions continue to be very difficult, particularly in the company's pulp and paper business. A strengthening U.S. economy will be required in order to see meaningful improvement in demand for the company's products, and to date, very little sign of that strengthening has been noted. As a result, the company's performance in early 1992 will continue to be disappointing.
 Boise Cascade Corp. is an integrated paper and forest products company headquartered in Boise, 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 or controls timberland to support these operations.
 BOISE CASCADE CORP. EARNINGS SUMMARY
 (unaudited)
 Year Ended Dec. 31: 1991 1990
 Sales $3,950,490,000 $4,185,920,000
 Net income (loss) (79,450,000) 75,270,000
 Average primary shares 37,946,000 38,014,000
 Net income (loss) per share
 Primary $ (2.46) $ 1.62
 Fully diluted $ (2.46) $ 1.62
 Fourth Quarter:
 Sales $ 963,200,000 $1,015,170,000
 Net income (loss) (15,780,000) 4,810,000
 Net income (loss) per share
 Primary $ (0.51) $ 0.04
 Fully diluted $ (0.51) $ 0.04
 (A) During the fourth quarter of 1991, the company sold its 50-percent interest in a joint venture which operated corrugated container plants in Austria and Germany. The fourth-quarter 1991 gain attributable to the sale was $37,068,000 before taxes or 61 cents per fully diluted common share after taxes.
 During the third quarter of 1991, the company completed a previously announced sale of timber and timberlands in western Oregon. The final sales price was $81,838,000, which included a $10,000,000 sale of timber that was recorded in the second quarter. The third- quarter 1991 gain attributable to the sale of timberland was $62,648,000 before taxes, or $1.02 per fully diluted common share after taxes. The gain was partially offset by reserves of $15,170,000 before taxes, or 25 cents per fully diluted share after taxes, related primarily to costs associated with the divestiture of certain assets and the increased focus of the company's consumer office products business following an agreement to sell essentially all of the company's wholesale office products distribution operations.
 (B) The computation of fully diluted net income (loss) per common share was antidilutive; therefore, the amounts reported for primary and fully diluted income (loss) are the same.
 -0- 1/15/92
 /CONTACT: Vincent Hannity of Boise Cascade Corp., 208-384-6390, or after hours, 208-345-8141/
 (BCC) CO: Boise Cascade Corp. ST: Idaho IN: PAP SU: ERN


SC -- SE002 -- 9873 01/15/92 09:29 EST
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