Printer Friendly

FEDERAL PAPER BOARD REPORTS THIRD QUARTER RESULTS

 FEDERAL PAPER BOARD REPORTS THIRD QUARTER RESULTS
 MONTVALE, N.J., Sept. 25 /PRNewswire/ -- Federal Paper Board


Company, Inc. (NYSE: FBO) today announced sales and earnings for the third quarter of 1992. Sales for the twelve weeks ended Sept. 5, 1992 were $337.9 million compared to $341.8 million last year. Net income was $24.1 million or $.52 per fully diluted common share compared to $24.2 million or $.52 per fully diluted common share for the third quarter of 1991.
 Sales for the 36 weeks ended Sept. 5, 1992 were $1,006.3 million compared to $1,024.0 million for the same period of 1991. Net income was $66.5 million or $1.42 per fully diluted common share compared to $76.7 million or $1.65 per fully diluted common share last year. The third quarter results have been impacted by an increase in the annual effective tax rate, from 40.6% to 42.5%, which amounted to an adjustment of $1.4 million for the quarter.
 John R. Kennedy, president, stated, "Third quarter results were reasonably good and in line with general business conditions. The markets for our primary products have remained relatively stable for the current quarter. Business conditions continue to be affected by a generally weak economy and we expect these conditions to continue for the remainder of the year."
 Mr. Kennedy further stated, "Production records were set at both the Augusta and Sprague, Conn. mills. Our Augusta mill achieved quarterly production records on both its No. 1 and No. 3 paperboard machines and our Sprague mill set an overall mill production record for recycled paperboard."
 "Operations at our Riegelwood, N.C. mill were impacted by the scheduled downtime associated with the inspection of a recovery boiler at that location. Our Thomas Tait & Sons subsidiary, located in Inverurie, Scotland, continues to be adversely affected by the start-up of new equipment associated with its capital expansion. However, this expansion has enabled the mill to achieve higher production levels. The cup business continues to be negatively impacted by economic conditions however, the market for these products has stabilized. We have implemented major cost savings and quality improvement programs to improve our overall long-term business performance."
 Mr. Kennedy noted, "With the completion of our capital expansion programs of the past three years, our major operations are reaching their anticipated operating levels. We have modern, low cost, high quality production facilities which will compete effectively within our markets. The company has positioned itself to realize the benefits of these capital programs as economic conditions begin to turn upward."
 The company's board of directors approved a $70 million capital program to expand and modernize its No. 18 paperboard machine located at the Riegelwood mill. The prime focus of this project is quality related, and assures the company's continued leadership position in lightweight bleached bristols. This program, coupled with the completion of our Phase II expansion at the Augusta Mill, will allow us to expand our leadership position in this high-end market.
 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, three sheeting and distribution centers, one extrusion coating plant, 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. The company has approximately 6,900 employees.
 FEDERAL PAPER BOARD COMPANY, INC.
 Preliminary Results
 Industry Segment Information
 (In millions)
 For the Twelve For the Thirty-Six
 Weeks Ended Weeks Ended
 Sept 5, Sept 7, Sept 5, Sept 7,
 1992 1991 1992 1991
 Net Sales:
 Paper, Paperboard and Pulp $239.8 $ 232.6 $ 722.2 $ 697.1
 Wood Products 43.6 37.1 128.3 102.1
 Converting Operations 82.7 93.2 234.8 297.9
 Intersegment Eliminations (28.2) (21.1) (79.0) (73.1)
 Total $337.9 $341.8 $1,006.3 $1,024.0
 Income Before Taxes:
 Paper, paperboard and pulp $ 50.5 $ 51.9 $ 145.6 $ 163.5
 Wood products 7.7 4.7 22.8 8.1
 Converting operations 5.4 8.7 14.7 27.9
 Intersegment eliminations 0.4 (0.6) 0.7 0.5
 General corporate
 expense - net (0.7) (1.4) (11.7) (6.5)
 Interest expense (19.0) (22.3) (56.5) (63.5)
 Total $ 44.3 $ 41.0 $ 115.6 $ 130.0
 FEDERAL PAPER BOARD COMPANY, INC.
 Preliminary Results
 Consolidated Statement of Income
 (In millions except per share amounts)
 For the Twelve For the Thirty-Six
 Weeks Ended Weeks Ended
 Sept 5, Sept 7, Sept 5, Sept 7,
 1992 1991 1992 1991
 Net Sales $337.9 $341.8 $1,006.3 $1,024.0
 Costs and Expenses:
 Cost of Products Sold 232.8 237.6 702.8 704.6
 Depreciation, amortization
 & cost of timber harvested 32.9 29.5 96.2 85.2
 Selling and administrative
 expenses 13.9 15.8 42.7 46.3
 Interest expense 19.0 22.3 56.5 63.5
 Other - net (5.0) (4.4) (7.5) (5.6)
 Total costs and expenses 293.6 300.8 890.7 894.0
 Income before taxes 44.3 41.0 115.6 130.0
 Provision for income taxes 20.2 16.8 49.1 53.3
 Net income $ 24.1 $ 24.2 $ 66.5 $ 76.7
 Earnings Per Common Share:
 Assuming no dilution $0.54 $0.55 $1.49 $1.75
 Assuming full dilution(A) $0.52 $0.52 $1.42 $1.65
 Average Common Shares
 Outstanding:
 Assuming no dilution 41.9 40.6 41.2 40.5
 Assuming Full Dilution(A) 46.8 46.6 46.7 46.4
 (A) -- Earnings per common share assuming full dilution assumes the conversion of the Company's convertible preferred stocks.
 -0- 9/25/92
 /CONTACT: Quentin J. Kennedy, executive vice president of Federal Paper Board Company, Inc., 201-391-1776
 (FBO) CO: Federal Paper Board Company, Inc. ST: New Jersey IN: PAP SU: ERN


TS -- NY007 -- 3415 09/25/92 09:12 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 25, 1992
Words:1025
Previous Article:NAGE FILES LIBEL SUIT AGAINST PATRIOT LEDGER
Next Article:BURROUGHS WELLCOME CO. SUPPORTS HURRICANE RELIEF EFFORT
Topics:


Related Articles
FEDERAL PAPER BOARD ANNOUNCES CHARGE TO FOURTH-QUARTER EARNINGS
FEDERAL PAPER BOARD REPORTS FIRST QUARTER RESULTS
FEDERAL PAPER BOARD REPORTS FIRST QUARTER RESULTS
FEDERAL PAPER BOARD REPORTS SECOND QUARTER RESULTS
BOISE CASCADE REPORTS EARNINGS
REPAP ENTERPRISES REPORTS STRONG OPERATING PERFORMANCE COUNTERS WEAKNESS IN PULP MARKETS
INTERNATIONAL PAPER $175 MILLION SENIOR NOTES RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --
Boise Cascade Reports Third-Quarter Results
Consolidated Papers, Inc. Announces Third Quarter Results
Georgia-Pacific Reports Improved Third Quarter Earnings

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters