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FEDERAL PAPER BOARD REPORTS SECOND QUARTER RESULTS

 FEDERAL PAPER BOARD REPORTS SECOND QUARTER RESULTS
 MONTVALE, N.J., June 29 /PRNewswire/ -- Federal Paper Board Company,


Inc. (NYSE: FBO), today announced slightly higher earnings and lower sales for the second quarter of 1992 compared to the second quarter of 1991.
 Sales for the 12 weeks ended June 13, 1992, were $345.3 million compared to $348.1 million last year. Net income was $25.5 million or $.55 per fully diluted common share compared to $24.6 million or $.53 per fully diluted common share for the second quarter of 1991. The second quarter 1991 results included a non-recurring after-tax charge of $.05 per fully diluted common share from the retirement of assets related to the Phase II expansion project at the company's Augusta, Ga., mill.
 Sales for the 24 weeks ended June 13, 1992, were $668.4 million compared to $682.2 million for the same period of 1991. Net income was $42.4 million or $.91 per fully diluted common share compared to $52.5 million or $1.13 per fully diluted common share last year. The year-to- date 1991 results included a non-recurring after-tax gain of $.06 per fully diluted common share from the first quarter 1991 sale of the mechanical packaging operations.
 John R. Kennedy, president, stated, "Second quarter results indicate signs of improvement in our business. We implemented a price increase in both market pulp and uncoated free-sheet paper during the quarter. Orders and backlogs for bleached paperboard remain firm and are beginning to improve for recycled paperboard. We anticipate a strengthening of market pulp prices in the third quarter reflecting the British Columbia pulp and paper strike and lower inventory levels.
 "The first quarter improvement in lumber prices continued throughout most of the second quarter and currently prices remain higher than the prior year. The cup business continues to be adversely impacted by a lower average selling price. We are implementing major cost savings and quality improvement programs which should significantly improve its long-term business performance."
 Kennedy further said, "Our operations continue to do well. New production records were set at both the Riegelwood, N.C., and Augusta, Ga., mills during the second quarter. Our Augusta mill set a production record for the No. 3 paperboard machine. Riegelwood set a new production record for both market pulp and the overall mill. Our lumber mills continue to benefit from overall improved operating efficiencies.
 "The collective bargaining agreement at the Riegelwood mill which was to expire in September 1992 was extended to September 1995. Also during the quarter, a 13-day outage occurred at our Thomas Tait & Son subsidiary to resolve a labor dispute. The issues were resolved to management's and labor's satisfaction."
 The company has reduced its capital spending program and expects capital expenditures for 1992 to be approximately $170 million.
 Federal Paper Board Company, Inc., manufactures and sells solid bleached paperboard, bleached market pulp, recycled paperboard, paper and plastic cups, folding cartons, lumber and in the European market, uncoated free-sheet paper. The company operates two bleached kraft paperboard and pulp mills, one recycled paperboard mill, four sheeting and distribution centers, six cup converting plants, four folding carton plants and five wood products mills in the United States and one uncoated free-sheet paper mill in the United Kingdom. Federal has approximately 7,100 employees.
 FEDERAL PAPER BOARD COMPANY, INC.
 Preliminary Results
 Industry Segment Information
 (In millions)
 Periods 12 Weeks 24 Weeks
 Ended 6/13/92 6/15/91 6/13/92 6/15/91
 NET SALES:
 Paper, Paperboard and Pulp $251.5 $236.4 $ 482.4 $ 464.5
 Wood Products 42.7 35.9 84.8 65.0
 Converting Operations 79.0 100.9 152.0 204.8
 Intersegment Eliminations (27.9) (25.1) (50.8) (52.1)
 Total $345.3 $348.1 $ 668.4 $ 682.2
 INCOME BEFORE TAXES:
 Paper, Paperboard and Pulp $55.0 $54.5 $ 95.1 $ 111.6
 Wood Products 8.4 2.7 15.1 3.4
 Converting Operations 4.8 10.0 9.3 19.1
 Intersegment Eliminations (0.9) 1.8 0.3 1.2
 General Corporate Exp. - Net (4.6) (5.9) (11.0) (5.1)
 Interest Expense (19.7) (21.1) (37.5) (41.2)
 Total $43.0 $42.0 $ 71.3 $ 89.0
 FEDERAL PAPER BOARD COMPANY, INC.
 Preliminary Results
 Consolidated Statement of Income
 (In millions except per share amounts)
 Periods 12 Weeks 24 Weeks
 Ended 6/13/92 6/15/91 6/13/92 6/15/91
 NET SALES $ 345.3 $ 348.1 $ 668.4 $ 682.2
 Costs and Expenses:
 Cost of Products Sold 238.6 236.8 470.0 467.1
 Depreciation, Amort.
 & Cost of Timber
 Harvested 32.2 28.5 63.3 55.7
 Selling and Admin.
 Expenses 13.4 16.1 28.8 30.5
 Interest Expense 19.7 21.1 37.5 41.2
 Other - Net (1.6) 3.6 (2.5) (1.3)
 Total Costs and Exps. 302.3 306.1 597.1 593.2
 INCOME BEFORE TAXES 43.0 42.0 71.3 89.0
 Prov. for Income Taxes 17.5 17.4 28.9 36.5
 NET INCOME $ 25.5 $ 24.6 $ 42.4 $ 52.5
 EARNINGS PER COMMON SHARE:
 Assuming No Dilution $0.58 $0.56 $0.95 $1.21
 Assuming Full Dilution(A) $0.55 $0.53 $0.91 $1.13
 AVERAGE COMMON SHARES OUTSTANDING:
 Assuming No Dilution 41.0 40.6 40.9 40.4
 Assuming Full Dilution(A) 46.8 46.6 46.7 46.5
 (A) -- Earnings per common share assuming full dilution assumes the conversion of the company's convertible preferred stocks.
 -0- 6/29/92
 /CONTACT: Quentin J. Kennedy, executive vice president of Federal Paper Board Company, 201-391-1776/
 (FBO) CO: Federal Paper Board Company, Inc. ST: New Jersey IN: PAP SU: ERN


GK -- NY011 -- 4521 06/29/92 08:53 EDT
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Date:Jun 29, 1992
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