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EMPAQUES PONDEROSA, S.A. REPORTS 1992 RESULTS

 CHIHUAHUA, Mexico, March 8 /PRNewswire/ -- Empaques Ponderosa, S.A. (Mexican Stock Exchange: EMPAQ), Mexico's largest producer of folding boxboard, today reported 1992 net income of 35.2 million New Mexican Pesos (US$11.3 million(A)). This compares to 1991 net income of 58.1 million constant New Mexican Pesos as of Dec. 31, 1992 (US$18.6 million(A)). Net income per share declined in 1992 to 0.586 constant New Mexican Pesos (US$0.19(A)) from 0.965 constant New Mexican pesos (US$0.31(A)) in 1991.
 Net sales in 1992 were 245.9 million New Mexican Pesos (US$78.9 million(A)), a decline from 1991 net sales of 264.6 million constant New Mexican Pesos (US$85.0 million(A)). In spite of decreased net sales and net income, Empaques 14 percent profit margin was one of the highest in the pulp and paper industry in both Mexico and abroad.
 Sales fell during 1992 due to a scheduled 28-day plant shutdown and a reduction in exports. The plant shutdown was the result of the company's continuing program to increase installed capacity. During the shutdown, the speed and productivity of the company's paperboard producing machinery was increased, bringing total installed capacity to between 140,000 and 145,000 tons depending upon product mix.
 As a result of the planned plant shutdown, Empaques experienced a market share decline during the first semester of 1992. The company recovered some of its market share during the second semester of 1992 and anticipates this trend will continue during 1993. Empaques expects to surpass its 1991 market share position during 1993.
 Exports were negatively affected by the overvaluation of the Peso which decreased price competitiveness. Despite sales declines in the export market and the plant shutdown, domestic sales remained unchanged in 1992 from 1991 levels.
 Gross profits decreased by 23.8 percent from 1991 due to lower sales volume and increased costs. Variable unit costs were negatively impacted by cost increases and the introduction of higher-priced raw materials which are necessary to improve product quality. There were also significantly higher electrical power expenses during 1992 related to both increased power rates and increased demand for power once new transmission and water treatment equipment began to operate. Additional maintenance expenses were incurred as the result of the necessary learning curve following the completion of the capacity increase project.
 Operating profits decreased 38.9 percent in 1992 due in part to higher administrative expenses related to Empaques' transition to publicly held company in 1991. Previously, many of theses expenses were incurred by the corporate office of Ponderosa Industrial. This was somewhat offset by the elimination of royalties paid by Empaques to its parent. There were also certain non-recurring corporate expenses during 1992 related to lay-offs and market and administrative optimization studies which added to expenses.
 Empaques Ponderosa is Mexico's largest producer of coated boxboard for folding packaging, an industry highly correlated to gross domestic product and population growth, with a 43 percent market share. Empaques has a significant competitive advantage in this industry due to its advanced technologies for processing recyclable paper and water treatment. The company is located in close proximity to abundant resources and Mexico's largest market, Mexico City. Empaques' common stock is traded on the Mexican Stock Exchange (EMPAQ) and its ADRs are available in the U.S. under rule 144A (ticker: Empaques BCP).
 (A) -- Exchange rate N$3.1155 New Mexican Pesos.
 EMPAQUES PONDEROSA, S.A.
 Financial Highlights (A)
 Millions of constant Million of US$(B)
 New Mexican Pesos
 Periods ended Dec. 31 1991 1992 1991 1992 Variation
 percent
 Sales in metric tons 112,500 109,582 --- --- (2.4)
 Net sales 264.7 245.9 85.0 78.9 (7.1)
 Gross Profit 101.9 77.7 32.7 24.9 (23.8)
 Operating profit 89.6 54.8 28.7 17.6 (38.9)
 EBIT(C) 87.9 54.9 28.2 17.6 (37.5)
 Net profit 58.1 35.2 18.6 11.3 (39.3)
 Current assets 124.1 123.3 39.8 39.6 (0.6)
 Fixed assets 362.0 349.4 116.2 112.2 (3.5)
 Other assets 8.4 10.2 2.7 3.3 22.0
 Current liabilities 67.3 74.2 21.6 23.8 10.2
 Long-term liabilities 116.7 105.3 37.5 33.8 (9.8)
 Total liabilities 210.0 200.7 67.4 64.4 (4.4)
 Stockholders equity 284.5 282.2 91.3 90.6 (0.8)
 Per share data (D)
 Book value 4.729 4.690 1.52 1.51 (0.8)
 Earnings per share 0.965 0.586 0.31 0.19 (39.3)
 (A) -- Audited figures
 (B) -- Exchange rate N$3.155
 (C) -- Earnings before integral cost of financing, taxes and profit sharing.
 (D) -- Assuming a total of 60,166,667 shares outstanding.
 -0- 3/8/93
 /CONTACT: Humberto Cano, strategic planning and investor relations manager, 011-52-14-18-08-98, or 011-52-5-211-6511, or Guillermo Fernandez, director, 011-52-467-21168, or 011-52-5-211-6511, both of Empaques Ponderosa, S.A.,; or Jorge Marcos, director of corporate finance and administration of Ponderosa Industrial, S.A. de C.V., 011-52-14-18-08-98/
 (EMPAQ)


CO: Empaques Ponderosa, S.A. ST: Mexico IN: PAP SU: ERN

TS-LR -- NY027 -- 3893 03/08/93 10:12 EST
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Date:Mar 8, 1993
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