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POPE & TALBOT REPORTS THIRD QUARTER EARNINGS

 PORTLAND, Ore., Oct. 14 /PRNewswire/ -- Pope & Talbot Inc., (NYSE: POP), today reported third quarter earnings of $1,313,000, or 11 cents per share, compared with a loss of $907,000, or 8 cents per share, in 1992's third quarter. Revenues of $150,910,000 were 5 percent ahead of last year.
 For the first nine months of 1993, net income was $16,457,000, or $1.41 per share, compared with a loss of $5,084,000, or 44 cents per share, for the same period in 1992. Last year's loss included 9 cents per share of restructuring charges. Revenues were $469,739,000, up by 17 percent from 1992.
 Lower lumber prices in the first two months of the quarter and higher wood costs, particularly in the United States, kept wood-product profits below levels of the first and second quarters. The Consumer Products Division continued to be profitable, with profits in disposable diapers slightly more than offsetting losses from sales of tissue products. Lower product prices and sales volume caused the loss at the company's Halsey, Oregon market pulp mill to widen, compared with losses in earlier quarters of 1993.
 The outlook is for improvement during the fourth quarter of 1993 and into 1994. Peter T. Pope, chairman, president and chief executive officer, stated, "Lumber prices have been volatile this year and probably will continue that way in the future, but it is significant that lumber prices this fall are 25-50 percent above this date last year." He continued, "We expect fourth quarter earnings to exceed the third quarter; by how much will depend on lumber prices." The company said it expects higher earnings in 1994 than in 1993, in part because of these lumber prices but also because of a new contract to supply pulp to the Grays Harbor Paper Co. mill in Hoquiam, Wash. Pope concluded, "Pope & Talbot remains in strong financial condition, and is prepared for another interesting and rewarding year in 1994."
 Pope & Talbot Inc. is a publicly held, Portland, Oregon-based paper, pulp and wood products company traded on the NYSE. 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
 (thousands, except per share, unaudited)
 Three months ended Nine months ended
 Sept. 30 Sept. 30.
 1993 1992 1993 1992
 Revenues:
 Wood products $71,158 $56,976 $224,272 155,061
 Pulp and paper
 products 79,752 86,595 245,467 245,416
 Total 150,910 143,571 469,739 400,477
 Cost and expenses:
 Cost of sales:
 Wood products 60,157 53,273 174,570 142,662
 Pulp and paper
 products 78,191 82,661 239,430 238,308
 Selling, general and
 administrative 7,233 7,680 21,080 21,377
 Interest 2,231 1,120 5,814 3,437
 Total 147,812 144,734 440,894 405,784
 Other losses - - - (1,657)
 Income (loss) before
 income taxes and
 cumulative effect of
 accounting changes 3,098 (1,163) 28,845 (6,964)
 Income tax provision
 (benefit) 1,785 (256) 11,826 (1,880)
 Income (loss) before
 cumulative effect of
 accounting changes 1,313 (907) 17,019 (5,084)
 Cumulative effect of
 accounting changes -
 net of tax - - (562) -
 Net income (loss) $1,313 $(907) $16,457 $(5,084)
 Net income (loss) per
 common share:
 Primary:
 Income (loss) before
 cumulative effect of
 accounting changes $.11 $(.08) $1.46 $(.44)
 Cumulative effect of
 accounting changes - - (.05) -
 Primary earnings (loss)
 per share $.11 $(.08) $1.41 $(.44)
 Fully diluted:
 Income (loss) before
 cumulative effect of
 accounting changes $.11 $(.08) $1.35 $(.44)
 Cumulative effect of
 accounting changes - - (.04) -
 Fully diluted earnings
 (loss) per share $.11 $(.08) $1.31 $(.44)
 Segment Information:
 Operating profit
 (loss):
 Wood Products $9,786 $2,770 $45,920 $9,792
 Pulp and paper
 products (2,768) (1,717) (5,979) (7,250)
 7,018 1,053 39,941 2,542
 Other losses - - - (1,657)
 Interest expense (2,231) (1,120) (5,814) (3,437)
 General corporate
 expense (1,689) (1,096) (5,282) (4,412)
 Income (loss) before
 income taxes and
 cumulative effect of
 accounting changes $3,098 $(1,163) $28,845 $(6,964)
 Pope & Talbot Inc. and Subsidiaries
 Consolidated Balance Sheets
 (thousands, unaudited)
 Sept. 30
 1993 1992
 Assets:
 Current assets $160,872 $130,974
 Properties 253,647 220,707
 Other assets 15,945 10,498
 Total $430,464 $362,179
 Liabilities and Stockholders'
 Equity:
 Current liabilities $95,939 $64,471
 Reforestation 13,599 10,735
 Postretirement benefits 12,636 11,950
 6 percent convertible
 subordinated debentures 40,000 40,000
 8-3/8 percent debentures 75,000 -
 Other long-term debt 4,500 55,000
 Deferred income taxes 7,796 7,523
 Total liabilities 249,470 189,679
 Stockholders' equity 180,994 172,500
 Total $430,464 $362,179
 -0- 10/14/93
 /CONTACT: C. Lamadrid of Pope & Talbot, 503-228-9161/
 (POP)


CO: Pope & Talbot Inc. ST: Oregon IN: PAP SU: ERN

RB-IC -- SE004 -- 2163 10/14/93 11:11 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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