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To: Jorjenzak who wrote (272)	7/15/1999 2:51:00 PM
From: Bidder	Read Replies (2) \| Respond to of 1152

Something of interest in the lumber business! From Raging Bull board. PennyPlaya 1,here is the PR on Slocan Forest Products latest quarterly report. Tuesday July 13, 6:30 am Eastern Time Company Press Release Slocan Forest Products Announces Second Quarter 1999 Earnings VANCOUVER, BRITISH COLUMBIA--Mr. I.K. Barber, Chairman and Chief Executive Officer of Slocan Forest Products Ltd. announced today that Slocan's net earnings for the second quarter of 1999 were $ 35.3 million or $0.92 per share compared with a net loss of $10.7 million or $0.28 per share for the second quarter of 1998. Sales in the second quarter of 1999 were $307.8 million compared with sales of $242.8 million for the second quarter of 1998. For the first half of 1999 the Company had net earnings of $54.0 million or $1.41 per share compared with a net loss of $26.1 million or $0.68 per share for the first half of 1998. The Company's sales for the first six months of 1999 were $559.4 million compared with sales of $465.0 million in 1998. Mr. Barber said that the improvement in earnings is due to the positive effects of higher selling prices due to stronger lumber and panel markets coupled with the benefits of the Company's ongoing cost reduction programs. For the 1999 second quarter, cash flow from operations, after reforestation expenditures and before changes in non-cash working capital, was $76.0 million or $1.99 per share compared with a net cash outflow from operations, after reforestation expenditures and before change in non-cash working capital, of $8.8 million or $0.23 per share in the second quarter of 1998. For the six month period ended June 30, 1999, cash flow from operations, after reforestation expenditures and before change in non-cash working capital, was $118.2 million or $3.09 per share compared with $1.7 million or $0.05 per share for the first six months of 1998. The Company's EBITDA for the second quarter of 1999 was $85.9 million or $2.25 per share, compared with $10.6 million or $0.28 per share for 1998. For the six month period ended June 30, 1999 the EBITDA was $139.3 million or $3.65 per share, compared with $ 18.6 million or $0.49 per share for 1998. The net earnings for the second quarter of 1999 were reduced by a net $500,000 or $0.01 per share for unusual items. The Company recorded an $11.0 million after tax provision for the write-down of the Company's carrying value of its investment in Finlay Forest Industries Inc. to the $80.0 million agreed sale price for its shares. The second quarter net earnings were also impacted by an after tax foreign exchange gain of $10.5 million relating to the conversion of its U.S. denominated debt to Canadian dollars at the quarter-end exchange rate. Pending completion of renegotiation of amended terms for Slocan's U.S dollar denominated senior notes and its bank operating and term credit facilities, Slocan continues to show Cdn. $479.3 million of term debt as current liabilities for accounting purposes and to record foreign exchange gains and losses on a current basis. Slocan expects to conclude agreements for amended terms for its loans concurrently with the previously announced sale of its interest in Finlay Forest Industries Inc. This sale is subject to regulatory approval and is expected to complete in the third quarter of 1999. Completion of these transactions will result in Slocan's remaining term indebtedness of approximately Cdn. $350 million once again being classified as long-term liabilities and any foreign exchange gains and losses after the closing date will be amortized over the remaining life of the notes. Slocan expects to reduce term debt by Cdn. $130 million from the sale proceeds and internally generate! d funds. In commenting on the results, Mr. Barber said, ''The second quarter was a solid continuation of our 1999 first quarter accomplishments and it would appear that positive earnings will continue for the balance of the year. The improvement in results at our Fibreco Pulp Division for the second quarter, our solid wood facilities achieving or exceeding planned production efficiencies, and strong markets - including the improving Asian market - for lumber and panels are a few of the highlights of the first half of 1999''. Slocan Forest Products Ltd. is a major integrated forest products company with an annual capacity of 1.5 billion board feet of lumber, 210 million square feet of plywood (3/8 inch basis), 440 million square feet of oriented strand board (3/8 inch basis), 960,000 bone dry units of wood chips and 240,000 tonnes of chemi-thermo mechanical pulp. The Company employs in excess of 4,000 employees and contractors. -------------------------------------------------------------------------------- Contact: Slocan Forest Products Ltd. Mr. I. K. Barber Chairman and Chief Executive Officer (604) 278-7311 or Slocan Forest Products Ltd. Mr. R. D. Price Senior Vice-President and Chief Financial Officer (604) 278-7311 www.slocan.com -------------------------------------------------------------------------------- More Quotes and News: Slocan Forest Products Ltd (Toronto:SFF.TO - news) Related News Categories: paper/forrest -------------------------------------------------------------------------------- Help -------------------------------------------------------------------------------- Copyright © 1999 Canadian Corporate News. All rights reserved. All news releases provided by Canadian Corporate News are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. 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