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MAXXAM REPORTS 1992 RESULTS

 HOUSTON, Feb. 9 /PRNewswire/ -- MAXXAM Inc. (AMEX: MXM) today reported a net loss of $7.3 million, or 77 cents per share, for the full year 1992, compared to net income of $57.5 million, or $6.08 per share, for 1991. For the fourth quarter of 1992, the company reported a net loss of $10.3 million, or $1.09 per share, compared to net income of $9.8 million, or $1.04 per share, for the fourth quarter of 1991.
 Sales for the full year and fourth quarter of 1992 were $2,202.6 million and $576.4 million, compared to $2,254.5 million and $535.7 million for the comparable periods of 1991.
 Commenting on the company's operating performance, Chairman of the Board and Chief Executive Officer Charles E. Hurwitz said, "Despite gains in efficiency and production at a number of company facilities, MAXXAM's 1992 operating results declined primarily due to continuing industry-wide weakness in aluminum prices brought on and perpetuated by cyclical, worldwide overcapacity in this business."
 MAXXAM operates in three industries: aluminum (through Kaiser Aluminum Corp. |NYSE: KLU~, an 87.2 percent-owned, fully integrated aluminum producer); forest products (primarily through The Pacific Lumber Co., a wholly owned subsidiary); and real estate management and development (primarily through MAXXAM Property Company and various wholly owned subsidiaries).
 ALUMINUM OPERATIONS
 Operating income for the company's aluminum operations was $91.6 million for the full year and $4.7 million for the fourth quarter of 1992, compared to $216.4 million and $53.2 million for the same periods of 1991. Sales were $1,909.1 million for the full year and $496.0 million for the fourth quarter of 1992, compared to $2,000.8 million and $471.3 million for the same periods in 1991.
 The decline in operating income for the year and the quarter is largely the result of lower prices for alumina, primary aluminum, and fabricated aluminum products. Partially offsetting the weakness in prices were increased shipments of these products in 1992 compared to 1991. The 1992 fourth quarter includes a pre-tax charge of approximately $29.0 million because of a reduction in the carrying value of inventories, caused principally by prevailing lower prices for alumina, primary aluminum, and 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 $61.8 million for the full year and $13.4 million for the fourth quarter of 1992, compared to $56.3 million and $13.4 million for the same periods in 1991. Sales by forest products operations amounted to $223.4 million for the full year and $57.3 million for the fourth quarter of 1992, compared to $205.7 million and $49.6 million for the same periods in 1991.
 The increase in sales and operating income for 1992 reflected generally higher lumber prices and increased shipments of certain common grades of lumber.
 REAL ESTATE OPERATIONS
 Operating losses for the company's real estate operations were $9.3 million for the full year and $3.3 million for the fourth quarter of 1992, compared to losses of $18.8 million and $5.3 million for the same periods in 1991. Sales by the company's real estate operations were $70.1 million for the full year and $23.1 million for the fourth quarter of 1992, compared to $48.0 million and $14.8 million for the comparable periods in 1991.
 The performance of the company's Texas-based real-estate portfolio, combined with improved operating efficiency at many of the company's other major properties, accounted for the increase in sales and the narrowed operating loss compared to the year-ago periods.
 CORPORATE
 At the corporate level, MAXXAM's interest and other expense before income taxes and minority interests was $40.7 million for the full year and $14.3 million for the fourth quarter of 1992, compared to $55.0 million and $13.6 million for the same periods in 1991.
 MAXXAM INC.
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 (In millions of dollars, except per share amounts)
 Three Months Ended Year Ended
 December 31, December 31,
 1992 1991 1992 1991
 Sales $ 576.4 $ 535.7 $2,202.6 $2,254.5
 Costs and expenses 565.0 477.4 2,075.1 2,019.0
 Operating income 11.4 58.3 127.5 235.5
 Other income (expense):
 Investment, interest and
 other income (expense) 16.5 (0.8) 54.9 42.8
 Interest expense (48.6) (51.8) (195.6) (210.9)
 Income (loss) before income
 taxes and minority
 interests (20.7) 5.7 (13.2) 67.4
 Credit (provision) for
 income taxes 10.5 6.7 9.2 (2.0)
 Minority interests (0.1) (2.6) (3.3) (7.9)
 Net income (loss) $(10.3) $9.8 $(7.3) $57.5
 Net income (loss) per common
 and common equivalent
 share $(1.09) $1.04 $(0.77) $6.08
 Common and common equivalent
 shares (in thousands) 9,419 9,443 9,427 9,458
 -0- 2/9/93
 /CONTACT: Scott Lamb of MAXXAM, 713-267-3826/
 (KLU MXM)


CO: MAXXAM Inc.; Kaiser Aluminum Corp.; The Pacific Lumber Co. ST: Texas IN: MNG PAP SU: ERN

TM -- SF002 -- 4463 02/09/93 08:34 EST
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Date:Feb 9, 1993
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