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POPE & TALBOT REPORTS RESULTS FOR FOURTH QUARTER, FULL YEAR 1991

POPE & TALBOT REPORTS RESULTS FOR FOURTH QUARTER, FULL YEAR 1991
 PORTLAND, Ore., Jan. 27 /PRNewswire/ -- Pope & Talbot (NYSE: POP) today reported a loss for the fourth quarter and full year 1991. Fourth-quarter results were a loss of $8,776,000, or (76 cents) per share, compared with a loss of $3,311,000, or (27 cents) per share, in 1990's final quarter. Revenues were $115,469,000 in the quarter, down by 10 percent from 1990.
 There was a loss of $11,562,000, or ($1.00) per share, for the full year 1991, compared with a profit of $19,829,000, or $1.70 per share, reported for 1990. Revenues of $502,275,000 in 1991 were 11 percent lower than in 1990.
 Several unusual factors affected results for both the quarter and the year. Included in the fourth quarter of 1991 were after-tax charges totalling $2.1 million, or (18 cents) per share, related to a pending sale of a building previously used in the manufacturing of diapers in Aiken, S.C., write-off of two tissue machines at the company's two Wisconsin paper mills, and several other smaller items. Also, 1991's final quarter included after-tax expenses for 1991 of about $900,000, or (7 cents) per share, related to adoption of Financial Accounting Standard (FAS) No. 106, which deals with accounting for post-retirement health-care benefits.
 Full-year 1991 results were further hurt by an after-tax charge of $6.5 million, or (56 cents) per share, for FAS 106 liabilities related to years prior to 1991. These past-service liabilities were expensed retroactively in 1991's first quarter rather than amortized over future years.
 Fourth-quarter manufacturing and sales were hurt by weak pulp prices, seasonally slow demand and pricing for lumber, and an unexpected low demand and prices for private label tissue products. Pulp prices were 10 percent lower than for the third quarter of 1991. Also, the company's pulp mill at Halsey, Ore., operated at less than capacity. Finally, 16 days of downtime were taken during the quarter (11 days at the end of December) on all of Pope & Talbot's tissue machines. All paper machines, excluding the two removed from production in 1991, were started up on Jan. 2, and have been operating at capacity since then. Disposable diaper operations were normal for the quarter, and volume for all of 1991 was about 10 percent above 1990, with prices stable to slightly higher than for the previous year. Unfortunately, earnings in this area could not offset the above-mentioned factors that hurt overall company results.
 Peter T. Pope, chairman, president and chief executive officer, stated, "The outlook is encouraging." He continued, "A recent sharp drop in interest rates should help housing lead the nation out of this recession, and strength in housing will help the lumber markets important to Pope & Talbot." Pope concluded, "The first quarter will be particularly difficult for earnings, but we expect to be in the neighborhood of 'breakeven' for the quarter and hope to begin an earnings recovery during the second quarter."
 Pope & Talbot Inc. is a publicly held, Portland-based paper, pulp and wood products company traded on the New York Stock Exchange. Pope & Talbot was founded in 1849 and has operations throughout the United States and in Canada.
 POPE & TALBOT INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per share)
 Three Months Twelve Months
 Ended Dec. 31: 1991 1990 1991 1990
 Revenues:
 Wood products $ 40,198 $ 38,739 $170,328 $192,377
 Pulp and paper products 75,271 89,980 331,947 370,116
 Total 115,469 128,719 502,275 562,493
 Costs and Expenses:
 Cost of sales:
 Wood products 41,248 41,345 167,441 190,486
 Pulp and paper products 75,559 80,253 308,339 311,359
 Selling, general and
 administrative 8,218 7,239 27,707 26,587
 Interest 1,248 1,123 3,941 3,925
 Total 126,273 129,960 507,428 532,357
 Other gains (losses) (2,636) (4,486) (1,940) 867
 Income (loss) before income
 taxes and cumulative effect
 of accounting change (13,440) (5,727) (7,093) 31,003
 Income tax provision
 (benefit) (4,664) (2,416) (1,998) 11,174
 Income (loss) before
 cumulative effect of
 accounting change (8,776) (3,311) (5,095) 19,829
 Cumulative effect of
 accounting change -
 net of tax -- -- (6,467) --
 Net income (loss) $ (8,776) $ (3,311) $(11,562) $ 19,829
 Net income (loss) per
 common share: 1991 1990
 Fully Fully
 Primary Diluted Primary Diluted
 First quarter $ (0.37) $ (0.37) $ 0.94 $ 0.85
 Second quarter 0.15 0.15 0.73 0.67
 Third quarter (0.02) (0.02) 0.30 0.30
 Fourth quarter (0.76) (0.76) (0.27) (0.21)
 Year $ (1.00) $ (1.00) $ 1.70 $ 1.61
 POPE & TALBOT INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Dec. 31: 1991 1990
 Assets:
 Current assets $122,393 $131,612
 Properties 213,964 209,673
 Other assets 10,626 12,655
 Total $346,983 $353,940
 Liabilities and Stockholders' Equity:
 Current liabilities $ 64,545 $ 49,389
 Post-retirement benefits and other 16,934 4,401
 Long-term debt, excluding current
 portion 69,000 77,490
 Deferred income taxes 9,896 16,132
 Total liabilities 160,375 147,412
 Stockholders' equity 186,608 206,528
 Total $346,983 $353,940
 -0- 1/27/92 R
 /CONTACT: C. Lamadrid of Pope & Talbot, 503-228-9161/
 (POP) CO: Pope & Talbot Inc. ST: Oregon IN: PAP SU: ERN


SC-JH -- SE004 -- 3757 01/27/92 12:40 EST
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Date:Jan 27, 1992
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