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CHESAPEAKE REPORTS THIRD QUARTER EARNINGS

 CHESAPEAKE REPORTS THIRD QUARTER EARNINGS
 RICHMOND, Va., Oct. 22 /PRNewswire/ -- Chesapeake Corporation


(NYSE: CSK) announced third quarter net income of $6.3 million, or 28 cents a share, up 31 percent from $4.9 million, or 23 cents a share, earned in the third quarter of 1991 and up from $4.3 million, or 18 cents a share, earned in the second quarter of 1992. Sales for the quarter ended Sept. 30, 1992, were a record $236.2 million, up 8 percent from $219.4 million a year ago, and up 3 percent from $229.3 million during the second quarter of 1992. EBIT (earnings before interest and taxes) for the third quarter was $17.8 million, up 7 percent from $16.6 million in 1991, and up 21 percent from $14.6 million in the second quarter of this year.
 Net income for the first nine months of 1992 was $13.1 million, or 58 cents a share, up 35 percent from $9.7 million, or 47 cents a share earned in 1991. Year to date 1992 sales were up 6 percent to $675.6 million. EBIT for the first three quarters was $45.1 million, or 5 percent higher than 1991. Third quarter interest expense of $7.2 million was $1.4 million less than in the third quarter of 1991. Year to date interest expense of $23.2 million was 12 percent less than in 1991 because of $2.2 million higher capitalized interest, lower interest rates and lower debt levels. Chesapeake's long-term debt to total capital ratio was 45 percent at the end of the third quarter of 1992 compared to 50 percent at the end of the third quarter of last year.
 For the first three quarters of 1992, "EBIT plus D" (earnings before interest and taxes plus depreciation and other non-cash charges) was $95.3 million, or 3 percent higher than $92.5 million in the first three quarters of 1991. Capital expenditures for the first nine months of 1992, primarily for the recovery boiler project at the West Point, Va., were $65 million.
 All three of Chesapeake's major businesses experienced record quarterly shipments in the third quarter of 1992. Compared to third quarter 1991, tissue shipments were up 11 percent, kraft shipments were up 4 percent and packaging shipments were up 8 percent. Compared to the first three quarters of 1991, year to date shipments were up 9 percent for tissue products, 4 percent for kraft products and 6 percent for packaging products.
 J. Carter Fox, president and chief executive officer, commented: "1992 continues to be a frustrating year. Volume was up in each of our major businesses, but pricing remains awful. Discounting is prevalent in the tissue business, and the announced third quarter increase for containerboard products has not been realized. Our market pulp pricing is up 22 percent when compared to the third quarter of 1991, but this product line is also encountering more competitive conditions because of weak customer markets and currency changes.
 "Chesapeake employees have responded well to a difficult economic environment. Operating efficiencies improved in each of our businesses during the quarter. White top linerboard shipments now represent approximately 90 percent of our paperboard product mix. Our graphic packaging business, Color-Box, completed the first part of an expansion program to double its capacity.
 "Despite running with limited recovery capacity because of the premature shutdown of an old boiler, our kraft products mill in West Point, Va., produced 7 percent more volume than in the third quarter 1991. At the end of the quarter, this facility successfully started its new recovery boiler that will eliminate a major production bottleneck and reduce operating costs. During this quarter, the effects of having limited recovery capacity reduced operating earnings by approximately $2.0 million."
 Fox concluded: "With the price environment that we face today, it will be difficult to improve upon the fourth quarter of last year. We will continue to optimize production, control costs and delay lower priority capital expenditures in response to these conditions. I am confident of our abilities and firmly believe that the markets we participate in will be the most attractive in the paper industry during the next few years."
 Chesapeake Corporation, a Fortune 500 company headquartered in Richmond, is an integrated paper and forest products company. Chesapeake's primary businesses include tissue and kraft paper products and packaging. Other businesses are consumer tissue products, treated wood and land development.
 CHESAPEAKE CORPORATION
 Percent
 Third Quarter 1992 1991 Change
 Net Sales $236,182,000 $219,456,000 8
 Income from Operations 17,679,000 15,510,000 14
 Interest Expense 7,189,000 8,672,000 (17)
 Income Before Taxes 10,644,000 8,008,000 33
 Income Taxes 4,302,000 3,168,000 36
 Net Income 6,342,000 4,840,000 31
 Earnings Per Share $0.28 $0.23 22
 Weighted Average Shares
 and Equivalents
 Outstanding 23,345,701 20,593,000
 Percent
 Year to Date 1992 1991 Change
 Net Sales $675,611,000 $636,724,000 6
 Income from Operations 43,244,000 41,804,000 4
 Interest Expense 23,229,000 26,461,000 (12)
 Income Before Taxes 21,992,000 16,615,000 32
 Income Taxes 8,841,000 6,895,000 28
 Net Income 13,151,000 9,720,000 35
 Earnings Per Share $0.58 $0.47 23
 Weighted Average Shares
 and Equivalents
 Outstanding 22,462,498 20,502,000
 -0- 10/22/92
 /CONTACT: Andrew J. Kohut, chief financial officer, Chesapeake Corporation, 804-697-1153/
 (CSK) CO: Chesapeake Corporation ST: Virginia IN: PAP SU:


MH -- DC003 -- 3356 10/22/92 09:24 EDT
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Date:Oct 22, 1992
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