BOISE CASCADE REPORTS THIRD-QUARTER EARNINGS
BOISE CASCADE REPORTS THIRD-QUARTER EARNINGS BOISE, Idaho, Oct. 13 /PRNewswire/ -- Boise Cascade Corp.
(NYSE: BCC) announced today that it narrowed its loss in the third quarter of 1992, relative to the operating results of the third quarter a year ago and to the loss of the second quarter of 1992, despite continued weak prices for the company's key paper grades.
For the third quarter of 1992, the company posted a net loss of $35.2 million, or $1.11 per fully diluted share. This compares with a net loss of $14.3 million, or 47 cents per fully diluted share, in the third quarter of 1991. After adjusting for gains and charges, the loss in last year's third quarter amounted to $1.24 per fully diluted share. The company reported a loss of $45 million, or $1.38 per fully diluted share, in the second quarter of 1992. Sales for the third quarter of 1992 were $935 million, compared with $922 million in the second quarter of 1992 and $1 billion in the third quarter of 1991. Paper and Paper Products Boise Cascade's operating performance in the third quarter of 1992 continued to reflect the severe impact of very weak paper prices. During the third quarter, prices on average for the company's pulp and paper grades remained close to the trough levels reached in the second quarter. Prices for business and printing papers declined from second- quarter levels, coated paper and market pulp prices rose slightly, and containerboard and newsprint prices showed little change. However, because of reduced manufacturing costs and higher paper unit sales volume, the loss reported in this segment was below those of the third quarter of 1991 and the second quarter of 1992. Office Products The office products segment continued to feel the effects of a weak U.S. economy, which has had an unusually severe impact on the paper-consuming white-collar work force. Sales volume on a comparable- unit basis was flat with year-ago levels. Overall profits were lower than those of the year-ago period, primarily because of the divestiture of the company's wholesale office products distribution operations in the first quarter. Profits were modestly stronger than those of the second quarter of 1992, mostly due to seasonal strength. Building Products Income from the company's building products segment in the third quarter was modestly stronger than the operating income of the year-ago third quarter. Results were lower than those of the second quarter of 1992 because of further easing of lumber prices, which had reached record levels in some grades early in the year. Average plywood prices were modestly higher than second-quarter levels due to sharp increases late in the third quarter. Hurricanes in the South and in Hawaii further exacerbated an already tight supply-demand balance. Outlook "Looking ahead, small signs of a gradually improving U.S. economy are evident in our businesses," said John B. Fery, chairman of the board and chief executive officer. "In pulp and paper, our order backlogs are relatively firm, our mills have been running nearly full, consumption levels in some grades are showing positive comparisons with year-ago low levels, and we have announced price increases in some key grades. In building products, housing starts are running 20 percent ahead of 1991 levels year to date, and repair-and-remodel markets have improved. In addition, our office products consumer sales volume is up modestly from year-ago levels. "This emerging trend of improvement, assuming it continues, combined with continuing cost-reduction efforts underway in the company, should lead to further improvement in performance." 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 and manages timberland to support these operations. BOISE CASCADE CORP. LOSS SUMMARY (unaudited) Three Months Ended Sept. 30: 1992 1991 Sales $ 934,500,000 $1,016,690,000 Net loss $ (35,230,000) $ (14,260,000) Net loss per share: Primary $ (1.11) $ (0.47) Fully diluted $ (1.11) $ (0.47) Nine Months Ended Sept. 30: 1992 1991 Sales $2,810,630,000 $2,987,290,000 Net loss $ (123,060,000) $ (63,670,000) Average primary shares 37,943,000 37,947,000 Net loss per share: Primary $ (3.78) $ (1.95) Fully diluted $ (3.78) $ (1.95) (A) At the end of the second quarter of 1992, the company completed the sale of 11 corrugated container plants. The sale and liquidation of working capital generated approximately $100,000,000. The pre-tax gain of $25,020,000, or 41 cents per fully diluted common share after taxes, from that sale was largely offset by the write-off of certain pulp and paper mill start-up costs that had been capitalized in prior years. The write-off reflects a change in the estimated period benefited by such expenditures. Early in the first quarter of 1992, the company completed the sale of essentially all of its wholesale office products distribution operations. During the third quarter of 1991, the company completed a 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 its wholesale office products distribution operations. (B) 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- 10/13/92 /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 -- SE007 -- 9171 10/13/92 09:35 EDT
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|Date:||Oct 13, 1992|
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