UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: December 15, 1998
Date of Earliest Event Reported: December 15, 1998
Boise Cascade Corporation
____________________________________________________________
(Exact Name of Registrant as Specified in Its Charter)
Delaware 1-5057 82-0100960
_________________________________________________________________
(State or Other Jurisdiction of (Commission (IRS Employer
Incorporation or Organization) File Number) Identification No.)
1111 W. Jefferson St., Boise, Idaho 83728
_________________________________________________________________
(Address of Principal Executive Offices) (ZIP Code)
Registrant's Telephone Number, Including Area Code: 208/384-6161
<PAGE>
ITEM 5. OTHER EVENTS.
Boise Cascade issued a news release on December 15, 1998, announcing a
companywide cost-reduction initiative and the restructuring of certain
operations.
The company also announced it will record a pretax write-off of
approximately $40 million, or 42 cents per share after tax, in the fourth
quarter of 1998. A copy of the news release is filed as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit 99 News release issued by the Company on
December 15, 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
BOISE CASCADE CORPORATION
/s/ Karen E. Gowland
_________________________
Karen E. Gowland
Vice President and Corporate Secretary
Date: December 15, 1998
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
___________ ___________________ ____
99 News Release Issued by the Company
on December 15, 1998.
The following was issued by Boise Cascade Corp.
FOR IMMEDIATE RELEASE: December 15, 1998
BOISE CASCADE ANNOUNCES COST REDUCTIONS, RESTRUCTURING
* * * * * *
Pretax Savings of $70 Million Expected
BOISE, Idaho -- Boise Cascade Corp. (NYSE:BCC) announced today a
companywide cost-reduction initiative and the restructuring of certain
operations. These efforts are expected to generate annualized pretax
savings of approximately $70 million by the end of 1999 and will result
in a pretax write-off of approximately $40 million, or 42 cents per
share after tax, in the fourth quarter of 1998.
"In light of the ongoing global financial crisis and the weak
business environment that I believe still lies ahead, we are taking
steps to permanently reduce our cost of doing business," said George J.
Harad, chairman of the board and chief executive officer. "These steps
also are a natural outgrowth of the several focusing and restructuring
efforts the company has completed over the last three years."
Specific actions include:
-- Restructured work, streamlined processes, and consolidated
functions will eliminate approximately 400 job positions, primarily in
our manufacturing businesses and Boise headquarters. Staff reductions
will occur through early retirements, layoffs, and attrition.
-- Our paper research and development facility in Portland,
Oregon, with 55 employees, will be closed.
-- Boise Cascade Office Products (NYSE:BOP), our 81%-held
subsidiary, announced today a pretax charge of $11 million related to a
restructuring of certain of its European operations.
-- Capital spending in our paper business will be about 35%
less than depreciation in 1998 and will be maintained at comparable
levels in 1999.
-- Selected portions of our timberlands associated with
facilities slated for closure will be sold.
Separately, the company announced stock ownership guidelines for
executive officers. These guidelines encourage officers to acquire and
hold company stock ranging from one times base salary for vice
presidents to three times base salary for the chief executive officer.
"Implementation of these guidelines will more closely align the
interests of our management with those of our shareholders," Harad said.
Boise Cascade Corp., headquartered in Boise, Idaho, is a major
distributor of office products and building materials and an integrated
manufacturer and distributor of paper and wood products. The company
also owns and manages over 2 million acres of timberland in the United
States.
/MEDIA CONTACT: Andrew Drysdale, Boise Cascade, 208-384-7992, or home,
208/344-2206;
INVESTOR CONTACT: Vincent Hannity, Boise Cascade, 208-384-6390, or home,
208/345-8141/
# # #