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MAXXAM REPORTS RESULTS FOR SECOND QUARTER, FIRST HALF OF 1993

 HOUSTON, Aug. 3 /PRNewswire/ -- MAXXAM Inc. (AMEX: MXM) today reported a net loss of $15.8 million, or $1.67 per share, for the second quarter of 1993, compared to net income of $1.4 million, or 15 cents per share, for the second quarter of 1992. Sales in the second quarter of 1993 totaled $507.9 million, compared to $565.0 million for the same period in 1992.
 For the first six months of 1993, the company's loss was $41.7 million, or $4.41 per share, exclusive of first-quarter, non-cash charges totaling $461.8 million for the adoption of new accounting standards and for extraordinary losses associated with the early retirement of debt at subsidiary companies. Results for the first six months of 1993 compare to net income of $2.3 million, or 24 cents per share for the first half of 1992. Sales in the first six months of 1993 were $1,021.6 million, compared to $1,094.5 million for the first half of 1992.
 "Compared to the second quarter of 1992, MAXXAM's net income in the second quarter of 1993 declined primarily as a result of reduced shipments and lower market prices for key products in the company's aluminum business," said Charles E. Hurwitz, MAXXAM's chairman, president, and chief executive officer. "World market prices for aluminum in the second quarter were below year-ago levels due to continued cyclical overcapacity of the metal."
 MAXXAM operates in three industries: aluminum (through Kaiser Aluminum Corp.); forest products (through MAXXAM Group Inc. and its subsidiary companies); and real estate management and development (primarily through MAXXAM Property Co. and various wholly owned subsidiaries).
 Aluminum Operations
 The company's aluminum operations reported operating losses of $12.7 million for the second quarter and $20.9 million for the first six months of 1993, compared to operating income of $30.0 million and $59.9 million for the same periods of 1992. Sales were $432.2 million for the second quarter and $874.8 million for the first half of 1993, compared to $490.9 million and $954.6 million for the same periods of 1992.
 Compared to the year-ago period, the operating loss in the second quarter of 1993 was due largely to the impact of lower shipments and lower average realized prices for primary aluminum and alumina. The reduced level of primary aluminum shipments was caused by the partial curtailment of the company's Northwest smelters.
 NOTE: A separate press release, providing greater detail on Kaiser Aluminum Corp.'s (NYSE: KLU) results, also is being issued today.
 Forest Products Operations
 Operating income for the company's forest products operations was $15.3 million for the second quarter and $31.8 million for the first six months of 1993, compared to $20.2 million and $34.0 million for the same periods of 1992. Sales by forest products operations amounted to $58.0 million in the second quarter and $110.7 million in the first six months of 1993, compared to $57.5 million and $109.0 million for the same periods of 1992.
 Compared to the year-ago periods, operating income in the second quarter and first half of 1993 declined, primarily reflecting an increase in cost of sales. The increase in cost of sales reflects the fact that, in the comparable 1992 periods, cost of sales was reduced by a $3.0 million business insurance interruption claim received by the company as a result of earthquake damage. Also contributing to the decline in operating income was a decrease in shipments of lumber, logs, and wood chips and the additional cost of logs and lumber purchased from third parties. The increased purchases of logs were principally attributable to a reduction in available harvested logs from the company's timberlands related to bad weather in Northern California during the first five months of 1993. Partially offsetting the impact of decreased shipments were generally higher prices for most of the company's lumber and manufactured products.
 Real Estate Operations
 The company's real estate operations reported an operating loss of $0.4 million for the second quarter of 1993, compared to an operating loss of $2.2 million in the year-ago quarter. For the first six months of 1993, the real estate operations reported an operating loss of $7.0 million, which includes a first-quarter writedown of $5.9 million of certain real estate holdings to their net estimated realizable value, compared to an operating loss of $4.0 million for the first half of 1992. Sales for MAXXAM's real estate operations were $17.7 million for the second quarter and $36.1 million for the first half of 1993, compared to $16.6 million and $30.9 million for the same periods of 1992.
 The improvement in real estate operations is largely due to the continued strong performance of the company's Texas properties.
 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 $5.7 million for the first quarter and $11.0 million for the first six months of 1993, compared to $5.4 million and $7.1 million for the same periods of 1992.
 MAXXAM INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
 (In millions of dollars, except share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Sales $507.9 $565.0 $1,021.6 $1,094.5
 Costs and expenses 509.0 523.1 1,024.5 1,016.1
 Operating income (loss) (1.1) 41.9 (2.9) 78.4
 Other income (expense):
 Investment, interest
 and other income 7.2 13.5 16.7 28.3
 Interest expense (46.9) (49.6) (96.2) (99.8)
 Income (loss) before income taxes,
 minority interests, extraordinary item
 and cumulative effect of changes in
 accounting principles (40.8) 5.8 (82.4) 6.9
 Credit (provision) for
 income taxes 22.9 (2.9) 37.0 (1.8)
 Minority interests 2.1 (1.5) 3.7 (2.8)
 Income (loss) before extraordinary
 item and cumulative effect
 of changes in accounting
 principles (15.8) 1.4 (41.7) 2.3
 Extraordinary item:
 Loss on early extinguishment of debt,
 net of related benefits for minority
 interests of $2.8 and income taxes
 of $24.2 -- -- (44.1) --
 Cumulative effect of changes in
 accounting principles:
 Postretirement and postemployment
 benefits, net of related benefits
 for minority interests of $64.6
 and income taxes
 of $240.2 -- -- (444.3) --
 Accounting for income
 taxes -- -- 26.6 --
 Net income (loss) $(15.8) $1.4 $(503.5) $2.3
 Net income (loss) per common and
 common equivalent share:
 Income (loss) before extraordinary item
 and cumulative effect of changes
 in accounting
 principles $(1.67) $0.15 $(4.41) $0.24
 Extraordinary item -- -- (4.66) --
 Cumulative effect of changes
 in accounting
 principles -- -- (44.14) --
 Net income (loss) $(1.67) $0.15 $(53.21) $0.24
 Weighted average common and common equivalent
 shares outstanding
 (in thousands) 9,463 9,428 9,463 9,431
 -0- 8/3/93
 /CONTACT: Scott Lamb of MAXXAM, 713-267-3826/
 (MXM KLU)


CO: MAXXAM Inc.; Kaiser Aluminum Corp.; MAXXAM Group Inc.; MAXXAM
 Property Co. ST: Texas IN: MNG SU: ERN


TM -- SF007 -- 8734 08/03/93 08:52 EDT
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Date:Aug 3, 1993
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