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MAXXAM INC. REPORTS FIRST QUARTER RESULTS

 MAXXAM INC. REPORTS FIRST QUARTER RESULTS
 HOUSTON, April 27 /PRNewswire/ -- MAXXAM Inc. (AMEX: MXM) today


reported net income of $.9 million, or $.10 per share, for the first quarter of 1992, compared to net income of $24.7 million, or $2.61 per share, for the first quarter of 1991. Sales for the first quarter of 1992 were $529.5 million, compared to $563.5 million for the same period a year ago.
 "MAXXAM's sales and net income declined primarily as a result of lower realized prices in our aluminum business," said Charles E. Hurwitz, chairman of


the board and chief executive officer. "Overall, our aluminum business performed well, given the tough economic times and low prices it faced. Also, we were encouraged that both our forest products business and our real estate business showed improved results."
 MAXXAM operates in three industries: 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 (primarily through MAXXAM Property Co. and various wholly owned subsidiaries). ALUMINUM OPERATIONS
 Operating income for the company's aluminum operations was $29.9 million for the first quarter of 1992, compared to $59.9 million for the same period of 1991. Sales were $463.7 million, compared to $512.6 million for the first quarter of 1991.
 Compared to the first quarter of 1991, the decline in operating income was largely the result of lower realized prices for alumina, primary aluminum, and many fabricated aluminum products. The impact of lower prices was partially offset by forward-sales agreements that had been entered into previously and that produced better-than-market prices for alumina and primary aluminum. The impact of lower prices was also partially offset by increased shipments of fabricated products.
 (NOTE: A separate press release, providing greater detail on Kaiser Aluminum Corp.'s results, also is being released today.) FOREST PRODUCTS OPERATIONS
 Operating income for the company's forest products operations was $14.0 million for the first quarter of 1992, compared to $10.4 million for the same period of 1991. Sales by forest products operations amounted to $51.5 million, compared to $43.0 million for the same period of 1991.
 Compared to the first quarter of 1991, strong demand for redwood common and Douglas fir common lumber led to increased shipments and higher prices for these products. REAL ESTATE OPERATIONS
 The operating loss for the company's real estate operations narrowed to $1.8 million for the first quarter of 1992, compared to a loss of $6.4 million for the same period of 1991. Revenue for MAXXAM's real estate operations increased to $14.3 million, compared to $7.9 million for the same period in 1991, due in particular to the performance of the company's portfolio of Texas- based loans and income-producing properties that were acquired from the Resolution Trust Corp. in June of 1991. CORPORATE
 At the corporate level, certain costs and interest expenses that are not allocated to the company's business segments resulted in a loss before income taxes and minority interests of $5.1 million for the first quarter of 1992, compared to a loss of $11.7 million for the same period of 1991. The reduced loss was mainly attributable to lower interest expense and administrative costs. OUTLOOK
 Looking ahead, Hurwitz said, "MAXXAM expects to face a challenging operating environment well into the second half of the year. The imbalance of supply and demand in world aluminum markets is continuing, due in large measure to increased inventories stemming from shipments by the former Soviet Union into Western Europe. In addition, the U.S. economy remains sluggish. In this environment, we will adhere to an operating strategy that emphasizes efficiency, quality, and innovative marketing and sales techniques. We believe this strategy leaves us poised to benefit significantly from the eventual improvement in economic and market conditions."
 The company is considering a number of alternatives which, if pursued, would be designed to extend the maturities and reduce the interest rates with respect to a portion of the debt obligations of its operating units. However, the company has not determined which, if any, of these proposals it may implement or when it would expect to do so.
 (Condensed Consolidated Statement of Income Follows)
 MAXXAM INC.
 Condensed Consolidated Statement of Income (Unaudited)
 (In millions except share amounts)
 Three Months Ended
 March 31,
 1992 1991
 Sales $529.5 $563.5
 Costs and expenses 493.0 507.4
 Operating income 36.5 56.1
 Other income (expense):
 Investment, interest and other income 14.8 28.9
 Interest expense (50.2) (52.8)
 Income before income taxes and minority
 interests 1.1 32.2
 Credit (provision) for income taxes 1.1 (6.5)
 Minority interests (1.3) (1.0)
 Net income $.9 $24.7
 Net income per common and common
 equivalent share $ 0.10 $ 2.61
 Weighted average common and common
 equivalent shares outstanding
 (in thousands) 9,435 9,477
 -0- 4/27/92
 /CONTACT: Scott Lamb of MAXXAM Inc., 713-267-3826/
 (MXM) CO: MAXXAM Inc. ST: Texas IN: MNG SU: ERN


RM -- SF007 -- 2931 04/27/92 08:12 EDT
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