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 ATLANTA, April 14 /PRNewswire/ -- Georgia-Pacific Corp. (NYSE: GP) today reported net income of $41 million (47 cents per share) for the three months ended March 31, 1993, compared with a net loss of $58 million (67 cents per share) in the first quarter of 1992.
 The 1993 first quarter earnings include a $3 million (3 cents per share) after-tax charge resulting from a revised estimate of the loss anticipated from the previously announced sale of Butler Paper Co. Last year's first quarter net loss included a $55 million (64 cents per share) after-tax charge for accounting changes.
 The company reported an all-time record quarter in its building products business. Building products profits for the three-month period increased to $309 million, vs. $182 million in the first quarter of 1992, while the company reported an operating loss of $67 million in its pulp and paper segment for the same period, compared with a profit of $30 million last year.
 Sales for the first quarter were $2.9 billion this year, vs. $2.8 billion a year ago. Georgia-Pacific's free cash flow was a deficit of about $115 million, which includes a $155 million payment to the Internal Revenue Service to settle certain previous tax years. The free cash flow level also reflects an increase in working capital attributable to normal first quarter inventory build up and an increase in accounts receivable consistent with increased prices for building products.
 The free cash flow deficit consisted of cash used in operations of $52 million (including the $155 million tax payment) and capital expenditures of $99 million, less proceeds from asset sales of $36 million.
 "Good demand resulting from a modestly improved economy and tight supplies due in part to wet weather in the South and our nation's public timber policy resulted in strong prices for softwood lumber and structural panels," T. Marshall Hahn Jr., chairman and chief executive officer, said. "Plywood and lumber prices, however, recently have declined and currently are lower than the first quarter average. With the economy improving and manufacturing production in the West still dropping, we anticipate continued tight supply situations and strong performance in our building products business," he said.
 "The pulp and paper business continues to be weak. Market pulp and bleached board inventories and price levels have stabilized, following a price decline in the first quarter. Containerboard prices weakened somewhat in the first quarter because of high industry inventory levels. Order volume for communication papers improved during the quarter and while over-supply remains a concern, there are some modestly encouraging signs," Hahn said.
 A tabulation of results follows:
 Operating Highlights
 (Dollar amounts, except per share, in millions)
 Three Months Ended Three
 March 31, 1993 Months
 Including Excluding Ended
 Asset Asset Asset March 31,
 Sales Sales Sales 1992
 Building products $ 1,596 $ --- $ 1,596 $ 1,401
 Pulp and paper 1,340 --- 1,340 1,418
 Other operations 8 --- 8 11
 Total net sales $ 2,944 $ --- $ 2,944 $ 2,830
 Building products $ 309 $ --- $ 309 $ 182
 Pulp and paper (67) --- (67) 30
 Other operations 2 --- 2 3
 Other income (36) (36) --- ---
 Total operating profits 208 (36) 244 215
 General corporate expense (29) --- (29) (68)
 Interest expense (129) --- (129) (143)
 Cost of accounts receivable
 sale program (8) --- (8) (9)
 Income (loss) before
 income taxes and
 accounting change 42 (36) 78 (5)
 (Provision) benefit for
 income taxes (1) 33 (34) 2
 Income (loss) before
 accounting change 41 (3) 44 (3)
 Accounting change,
 net of tax --- --- --- (55)
 Net income (loss) $ 41 $ (3) $ 44 $ (58)
 Per share:
 Income (loss) before
 accounting change $ .47 $ (.03) $ .50 $ (.03)
 Net income (loss) $ .47 $ (.03) $ .50 $ (.67)
 Average number of
 shares outstanding 86.6 86.6 86.6 86.3
 Notes to Operating Highlights
 1. Income (Loss) Per Share. Income (loss) per share is computed based on net income (loss) and the weighted average number of common shares outstanding, net of restricted stock. The effects of assuming issuance of common shares under long-term incentive, stock option and stock purchase plans were either insignificant or antidilutive.
 2. Accounting Changes. The Corporation adopted Financial Accounting Standard Number 109 (FAS 109), "Accounting for Income Taxes" effective Jan. 1, 1992. Adoption of this standard resulted in a one- time, after-tax charge of $55 million (64 cents per share) to 1992 first quarter earnings.
 3. Other Income. In March 1993, the Corporation announced its intention to sell the assets of Butler Paper Company, which operates 80 distribution centers in 31 states, to Alco Standard Corporation. The transaction is expected to be completed by the beginning of the 1993 third quarter. A pretax loss of $36 million ($3 million after taxes) was recognized in the 1993 first quarter. The large tax benefit results from the loss on the sale as well as the fact that the tax basis is significantly greater than the financial basis of the stock which is being sold in the transaction.
 4. Provision for Income Taxes. Excluding asset sales, the

Corporation reported pretax income of $78 million and an income tax provision of $34 million for the three months ended March 31, 1993. The actual effective tax rate for the quarter was used because an annual effective tax rate could not be reasonably estimated. The actual effective tax rate is higher than the federal statutory tax rate primarily because of nondeductible goodwill amortization expense associated with past business acquisitions.
 The income tax benefit for the three months ended March 31, 1992, was based on an estimated effective tax rate for the year. The 44 percent effective tax rate differed from the federal statutory tax rate primarily because of nondeductible goodwill amortization expense associated with past business acquisitions.
 -0- 4/14/93
 /CONTACT: Sheila Weidman of Georgia-Pacific, 404-521-4732/

CO: Georgia-Pacific Corporation ST: Georgia IN: PAP SU: ERN

RA-BN -- AT014 -- 0783 04/14/93 17:20 EDT
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Date:Apr 14, 1993

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