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MAXXAM INC. REPORTS 1991 RESULTS

 MAXXAM INC. REPORTS 1991 RESULTS
 HOUSTON, Jan. 30 /PRNewswire/ -- MAXXAM Inc. (AMEX: MXM) today


reported net income of $57.5 million or $6.08 per share for the full year 1991, compared to record net income of $161.9 million or $17.03 per share in 1990. For the fourth quarter of 1991, the company reported net income of $9.8 million or $1.04 per share compared to net income of $33.0 million or $3.48 per share for the fourth quarter of 1990. The 1990 results included after-tax extraordinary gains on the repurchase of debt of $17.5 million or $1.84 per share for the full year, and $1.1 million or $.12 per share for the fourth quarter.
 The decline in the company's net income for the year was mainly the result of lower prices for alumina and aluminum. "Despite the effect of these weak prices, our competitive advantages in the aluminum and forest products businesses enabled us to post a double- digit return on shareholders' equity for 1991," said Charles E. Hurwitz, chairman of the board and chief executive officer of MAXXAM.
 Sales for the full year and fourth quarter of 1991 were $2,254.5 million and $535.7 million, compared to $2,360.7 million and $577.2 million for the comparable periods of 1990.
 MAXXAM operates in three industry segments: aluminum (through Kaiser Aluminum Corp., an 87.3 percent-owned, fully integrated aluminum producer); forest products (primarily through The Pacific Lumber Co., a wholly owned subsidiary); and in real estate management and development (through MAXXAM Property Co. and various wholly owned subsidiaries). ALUMINUM OPERATIONS
 Operating income for the company's aluminum operations was $216.4 million for the full year and $53.2 million for the fourth quarter of 1991, compared to $378.7 million and $85.3 million for the same periods of 1990. Sales were $2,000.8 million for the full year and $471.3 million for the fourth quarter of 1991, compared to $2,095.0 million and $517.7 million for the same periods of 1990.
 The reduced earnings for the full year and the fourth quarter of 1991 resulted primarily from lower prices for alumina and aluminum that were partially offset by increased shipments of alumina. Although alumina and aluminum prices for the year and the fourth quarter of 1991 were lower than those of the comparable periods of 1990, Kaiser received better-than-market prices throughout the year for much of its alumina and aluminum as a result of forward sales contracts previously entered into with third parties.
 (NOTE: A separate press release, providing greater detail on Kaiser Aluminum Corporation's results, also is being released today.) FOREST PRODUCTS OPERATIONS
 Operating income for the company's forest products operations was $56.3 million for the full year and $13.4 million for the fourth quarter of 1991, compared to $63.5 million and $12.1 million for the same periods of 1990. Sales by forest products operations amounted to $205.7 million for the full year and $49.6 million for the fourth quarter of 1991, compared to $198.0 million and $46.3 million for the same periods of 1990.
 The decline in operating income for the full year reflects a moderate decrease in the shipment of upper-grade redwood lumber, an increase in logging costs, and additional costs for purchasing logs from third parties. These unfavorable factors were partially offset by increased shipments of lower-margin redwood common lumber and other products. The increase in operating income from the fourth quarter of 1990 to the fourth quarter of 1991 was primarily due to increased lumber shipments. REAL ESTATE OPERATIONS
 Operating losses for the company's real estate operations were $18.8 million for the full year and $5.3 million for the fourth quarter of 1991, compared to losses of $2.4 million and $3.6 million for the same periods of 1990. Sales by the company's real estate operations were $48.0 million for full year and $14.8 million for the fourth quarter of 1991, compared to $67.7 million and $13.2 million for the same periods in 1990.
 Demand for the company's residential and resort properties remained soft through 1991, reflecting the overall weakness in the U.S. economy and the real estate market generally. CORPORATE
 At the corporate level, MAXXAM's interest and other expense before income taxes and minority interests was $55.0 million for the full year and $13.6 million for the fourth quarter of 1991, compared to $66.3 million and $14.1 million for the same periods of 1990. OUTLOOK
 Looking ahead, Hurwitz said, "We are prepared for a very challenging year. Our strategy continues to be to seek out profitable market opportunities, make continuous improvements in the quality of our products, optimize the use of our assets, cut costs wherever possible, and operate as effectively as possible."
 MAXXAM INC.
 Condensed Consolidated Statement of Income (Unaudited)
 (In millions of dollars, except per share amounts)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Sales $535.7 $577.2 $2,254.5 $2,360.7
 Costs and expenses 477.4 488.5 2,019.0 1,946.8
 Operating income 58.3 88.7 235.5 413.9
 Other income (expense):
 Investment, interest
 and other income (0.8) 2.5 42.8 30.2
 Interest expense (51.8) (51.8) (210.9) (222.1)
 Income before income
 taxes, minority interests
 and extraordinary item 5.7 39.4 67.4 222.0
 Benefit (provision) for
 income taxes 6.7 (4.2) (2.0) (69.7)
 Minority interests (2.6) (3.3) (7.9) (7.9)
 Income before
 extraordinary item 9.8 31.9 57.5 144.4
 Extraordinary item:
 Gain on repurchase of
 debt, net of related
 income taxes of
 $0.3 million, for the
 year ended Dec. 31, 1990 -- 1.1 -- 17.5
 Net income $9.8 $33.0 $57.5 $161.9
 Net income per common and
 common equivalent share:
 Primary:
 Income before
 extraordinary item $1.04 $3.36 $6.08 $15.19
 Extraordinary item -- .12 -- 1.84
 Net income $1.04 $3.48 $6.08 $17.03
 -0- 1/30/92
 /CONTACT: Robert W. Irelan of MAXXAM Inc., 713-267-3722/
 (MXM) CO: MAXXAM Inc. ST: Texas IN: MNG SU: ERN


RM -- SF001 -- 5067 01/30/92 08:18 EST
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Date:Jan 30, 1992
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