SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
January 18, 1994
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Date of Report
(Date of earliest event reported)
CHAMPION INTERNATIONAL CORPORATION
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(Exact name of registrant as specified in its charter)
New York
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(State or other jurisdiction of incorporation)
1-3053 13-1427390
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(Commission File Number) (IRS Employer Identification No.)
One Champion Plaza, Stamford, Connecticut 06921
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(Address of principal executive offices) (Zip Code)
(203) 358-7000
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(Registrant's telephone number, including area code)
Page 1 of 4
ITEM 5: OTHER EVENTS
The Company reported a loss of 56 cents per
share for the fourth quarter of 1993, compared to losses
of 38 cents in the fourth quarter of 1992 and 65 cents in
the third quarter of 1993. Excluding non-recurring items
in each quarter, the Company incurred a 35 cent loss in
the fourth quarter of 1993, compared to losses of 56
cents in the fourth quarter of 1992 and 40 cents in the
third quarter of 1993.
For the year, the loss per share of $1.98
compared to a loss of $5.05 in 1992. Excluding non-
recurring items in each period, the Company incurred a
loss of $1.44 per share in 1993, compared to a loss of
$1.33 in 1992. The non-recurring items for 1993 included
an eight cent charge as a result of the adoption in the
fourth quarter, retroactive to January 1, 1993, of the
new Financial Accounting Standards Board accounting
standard for postemployment benefits.
Despite significant improvements in the
Company's operating performance and higher earnings in
its wood products business, results for the year and the
quarter ended December 31, 1993 were affected by
continued weak prices for pulp and certain of its paper
grades.
The Company's paper segment reported a loss
from operations for the year of $134 million compared
with a loss of $7 million in 1992. The fourth quarter
loss of $24 million compared with losses of $16 million a
year ago and $22 million in the third quarter of 1993.
The Company's wood products segment reported
income from operations of $248 million for the year, up
from $125 million in 1992. Fourth quarter income from
operations of $57 million improved from $32 million in
both the prior and year-ago quarters. The improved
earnings were due primarily to significantly higher
prices for lumber, plywood and timber.
The Company's Consolidated Statement of Income
for the Three Months and the Twelve Months Ended December
31, 1993 and December 31, 1992 and Consolidated Balance
Page 2 of 4
Sheet as of December 31, 1993 and December 31, 1992 are
attached hereto as Exhibits 99.1 and 99.2, respectively.
EXHIBITS
99.1 Champion International Corporation and
Subsidiaries Consolidated Statement of Income
for the Three Months Ended December 31, 1993
and 1992 and the Twelve Months Ended December
31, 1993 and December 31, 1992
99.2 Champion International Corporation and
Subsidiaries Consolidated Balance Sheet as of
December 31, 1993 and December 31, 1992
Page 3 of 4
SIGNATURES
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,
thereunto duly authorized.
CHAMPION INTERNATIONAL CORPORATION
By: /S/ Lawrence A. Fox
Lawrence A. Fox
Vice President and Secretary
Dated: January 31, 1994
Page 4 of 4
EXHIBIT 99.1
<TABLE>
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE)
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
1993 1992 1993 1992
(Unaudited)
<S> <C> <C> <C> <C>
Net Sales
Paper $ 992,663 $ 963,649 $ 3,817,579 $ 3,834,585
Wood Products 307,564 273,790 1,251,254 1,091,886
1,300,227 1,237,439 5,068,833 4,926,471
Income From Operations:
Paper (24,143) (16,494) (133,774) (7,490)
Wood Products 57,015 32,391 247,989 125,071
General Corporate Expense (13,676) (13,054) (47,823) (44,210)
19,196 2,843 66,392 73,371
Interest and debt expense 62,186 50,324 224,658 206,295
Other (income) expense -
net (Note 1) (10,142) (9,333) 7,410 (142,516)
Income (Loss) Before Income
Taxes, Extraordinary Item
and Cumulative Effect of
Accounting Changes (32,848) (38,148) (165,676) 9,592
Income Taxes (Benefit) (Note 2) (2,284) (9,226) (31,222) (4,328)
Income (Loss) Before
Extraordinary Item and
Cumulative Effect of
Accounting Changes (30,564) (28,922) (134,454) 13,920
Extraordinary Item -
Loss on Early Retirement
of Debt, Net of Taxes (14,266) ---- (14,266) ----
Cumulative Effect of
Accounting Changes,
Net of Taxes (Note 3) ---- ---- (7,523) (454,314)
Net Income (Loss) $ (44,830) $ (28,922) $ (156,243) $ (440,394)
Earnings (Loss) Per Common Share:
Income (Loss) Before
Extraordinary Item and
Cumulative Effect of
Accounting Changes:
Recurring $ (.35) $ (.56) $ (1.44) $ (1.33)
Non-Recurring (.06) .18 (.31) 1.18
(.41) (.38) (1.75) (.15)
Extraordinary Item -
Loss on Early Retirement
of Debt (.15) --- (.15) ---
Cumulative Effect of
Accounting Changes ---- --- (.08) (4.90)
Net Income (Loss) $ (.56) $ (.38) $ (1.98) $ (5.05)
___________
<FN>
Note 1: Other (income) expense - net for the three month and twelve month periods
ended December 31, 1993 includes non-recurring pre-tax income of $10
million. The three month period ended December 31, 1992 includes non-
recurring pre-tax income of $12 millon. The twelve month period ended
December 31, 1992 includes $148 million in non-recurring pre-tax
income, primarily from the sale of timberlands.
<FN>
Note 2: Income Taxes (Benefit) for the three month and twelve month periods ended
December 31, 1993 includes a provision of $11 million and $34 million,
respectively, to reflect one-time adjustments to the Company's deferred
tax liability.
<FN>
Note 3: Cumulative Effect of Accounting Changes for the twelve month period
ended December 31, 1993 reflects the after-tax effect of adopting,
retroactive to January 1, 1993, a new accounting standard for postemployment
benefits. The twelve month period ended December 31, 1992, reflects the
after-tax effect of adopting a new accounting standard for postretirement
benefits other than pensions and a new accounting standard for income taxes.
</TABLE>
EXHIBIT 99.2
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
December 31, December 31,
1993 1992
ASSETS:
Cash and temporary cash investments $ 62,850 $ 91,610
Receivables - net 494,426 469,846
Inventories 469,269 479,511
Prepaid expenses 22,818 24,622
Deferred income taxes 65,064 76,911
Total Current Assets 1,114,427 1,142,500
Timber and timberlands - net 1,838,550 2,011,567
Property, plant, and equipment - net 5,802,036 5,762,860
Other assets and deferred charges 387,756 464,505
Total Assets $ 9,142,769 $ 9,381,432
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current installments of
long-term debt $ 88,052 $ 21,147
Accounts and notes payable
and accrued liabilities 679,411 757,092
Income taxes 4,841 8,132
Total Current Liabilities 772,304 786,371
Long-term debt 3,316,165 3,290,875
Other liabilities 672,788 637,275
Deferred income taxes 1,077,234 1,159,244
Minority interest in subsidiaries 54,160 48,864
Preference stock, $92.50
cumulative series 300,000 300,000
Shareholders' Equity 2,950,118 3,158,803
Total Liabilities and
Shareholders' Equity $ 9,142,769 $ 9,381,432
