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CHESAPEAKE REPORTS FIRST QUARTER FINANCIAL RESULTS

 RICHMOND, Va., April 19 /PRNewswire/ -- Chesapeake Corporation (NYSE: CSK) announced a first quarter 1993 net loss of $.8 million, or $.03 a share, down from first quarter 1992 income of $2.3 million, or $.11 a share, before the cumulative effect of accounting changes. Sales for the first quarter of 1993 were $209.3 million, slightly below sales of $210.1 million for the first quarter of last year.
 First quarter EBIT (earnings before interest, taxes and accounting changes) was $7.2 million compared to $12.1 million in 1992. Interest expense of $8.4 million was approximately the same as in 1992, as lower interest rates and debt offset a $1.1 million reduction in capitalized interest. Chesapeake's long-term debt to total capital ratio was 46 percent at the end of the first quarter compared to 45 percent at end of 1992. Seasonal working capital requirements caused an increase in long-term debt.
 EBIT plus D (earnings before interest, taxes and accounting changes plus depreciation and other non-cash charges) was $25.8 million, or 13 percent less than $29.5 in 1992. Capital expenditures for the first quarter totaled $22 million, approximately the same as in the first quarter of 1992.
 Compared to the first quarter of last year, volume was up 7 percent for kraft products. Volume increased 11 percent for tissue products, while packaging volume was slightly less than last year. An already poor pricing environment worsened during the quarter, as average prices declined 9 percent for kraft products and 5 percent for tissue products from fourth quarter 1992 levels. Significant increases in the sales prices in our small solid wood products businesses had a positive impact on the quarter.
 J. Carter Fox, president and chief executive officer, commented, "Despite record production levels, we had a loss in the first quarter. Our financial results were weak, as expected. The weakness is directly the result of the awful pricing levels existing in our industry."
 Fox continued: "We expect some price relief in our tissue business during this quarter, but prices for most of our kraft products remain at extremely low levels. Our second quarter earnings will also be negatively impacted by a planned maintenance shutdown at our West Point mill. Consequently, we expect a small loss for the second quarter but anticipate returning to profitability in the second half of the year."
 Chesapeake Corporation, a Fortune 500 company headquartered in Richmond, is a paper and packaging company. Chesapeake's primary businesses are tissue and kraft paper products and packaging. Other businesses include consumer tissue products, land development and wood products.
 CHESAPEAKE CORPORATION
 First Quarter Financial Results
 Percent
 First Quarter 1993 1992 Change
 Net Sales $209,302,000 210,135,000 0 pct.
 Income from Operations 6,467,000 10,745,000 -40 pct.
 Interest Expense 8,424,000 8,499,000 -1 pct.
 Income (Loss) Before
 Taxes and Cumulative
 Effect of Accounting
 Changes (1,211,000) 3,593,000 -134 pct.
 Income Taxes (460,000) 1,293,000 -136 pct.
 Income (Loss) Before
 Cumulative Effect of
 Accounting Changes (751,000) 2,300,000 -133 pct.
 Cumulative Effect
 of Accounting Changes -- (9,665,000) --
 Net Income (Loss) (751,000) (7,365,000) 90 pct.
 Per Share:
 Earnings (Loss) Before
 Cumulative Effect of
 Accounting Changes ($0.03) $0.11 -127 pct.
 Cumulative Effect
 of Accounting Changes -- (0.48) --
 Earnings (Loss) (0.03) (0.35) 91 pct.
 -0- 4/19/93
 /CONTACT: Andrew J. Kohut, chief financial officer, Chesapeake Corporation, 804-697-1153/
 (CSK)


CO: Chesapeake Corporation ST: Virginia IN: PAP SU: ERN

MH-TW -- DC008 -- 7248 04/19/93 09:57 EDT
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Date:Apr 19, 1993
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