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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
February 21, 1995
(Date of Report)
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GEORGIA-PACIFIC CORPORATION
(Exact Name of Registrant as Specified in its Charter)
GEORGIA
(State of Incorporation)
1-3506
(Commission File Number)
93-0432081
(IRS Employer Identification Number)
133 PEACHTREE STREET, N.E., ATLANTA, GEORGIA 30303
(Address of Principal Executive Offices)
(404) 652-4000
(Registrant's Telephone Number, including area code)
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Item 5. Other Events.
On January 25, 1995, the Corporation issued the following press release
announcing its results of operations for the quarter and year ended December
31, 1994:
GEORGIA-PACIFIC (LOGO)
133 Peachtree Street Northeast
Atlanta, Georgia 30303
(404) 652-4000
NEWS FROM GEORGIA-PACIFIC
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Release No. C-1165
Contact: Sheila Weidman
(404) 652-4732
Ken Haldin
(404) 652-6098
January 25, 1995
GEORGIA-PACIFIC REPORTS 1994 EARNINGS
AND RECORD FOURTH QUARTER
ATLANTA -- Georgia-Pacific Corp. today reported a record fourth
quarter net income of $169 million ($1.89 per share) for the three months ended
Dec. 31, 1994, compared with a net loss of $36 million (41 cents per share) for
the 1993 fourth quarter. The company's total quarterly operating profit was an
all-time record of $441 million.
Building products operating profits for the quarter were $262 million
compared with $252 million in the 1993 period. Pulp and paper operating
profits of $181 million reflected a dramatic turnaround from an operating loss
of $95 million for the same period a year ago. Sales in the fourth quarter
were $3.3 billion, versus $3.2 billion a year ago.
For the year, Georgia-Pacific reported net income of $310 million
($3.48 per share), versus a net loss of $34 million (39 cents per share) for
1993. The 1994 results include a $33 million (37 cents per share) net
after-tax gain primarily from asset sales, an $11 million (12 cents per share)
extraordinary
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after-tax loss on the early retirement of debt and a $5 million
(6 cents per share) one-time, after-tax charge for an accounting change. The
1993 results include an after-tax gain of $7 million (8 cents per share) from
asset sales and a $16 million (18 cents per share) extraordinary after-tax loss
on the early retirement of debt.
Sales in 1994 were $12.7 billion versus 1993 sales of $12.3 billion.
The company generated cash from operations of $829 million, made capital
expenditures of $894 million and received net proceeds of approximately $245
million from asset sales. Total debt, including the accounts receivable sale
program, was $5.7 billion as of Dec. 31, 1994.
Georgia-Pacific's building products business reported record operating
profits of $989 million in 1994 compared with $973 million in 1993. The pulp
and paper business reported a strong recovery with profits of $171 million for
the year versus an operating loss of $187 million a year earlier.
"Our building products business remains strong, and I am very
optimistic about the pulp and paper recovery and Georgia-Pacific's ability to
capitalize on strong market conditions," A.D. "Pete" Correll, chairman and
chief executive officer, said.
"Our building products business continued to perform at record levels
of profitability. Plywood and oriented strand board benefited from good demand
and record prices during the quarter," Correll said. "Gypsum, particleboard
and hardboard prices remained strong, while softwood lumber prices began to
decline in December. In the past five years, we have nearly doubled our
operating profits in building products, and the outlook remains very good.
"In 1995, we expect our pulp and paper business to benefit, as it did
in the 1994 fourth quarter, from growing demand, improving prices and modest
growth in industry capacity. Prices in our pulp business are still rising.
Business also remains strong in containerboard with all segments oversold and
demand for corrugated packaging very brisk. In communication papers, the
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market and prices now are improving rapidly, and our inventories are at their
lowest level in five years. Our tissue business also is improving. The speed
and magnitude of the pulp and paper turnaround is unprecedented, and
Georgia-Pacific is well positioned to take full advantage of the recovery,"
Correll concluded.
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GEORGIA-PACIFIC CORPORATION AND SUBSIDIARIES
Operating Highlights
(Dollar amounts, except per share, in millions)
(unaudited)
<TABLE>
<CAPTION>
Three Three
Months Months
Ended Ended
Dec. 31, Dec. 31,
1994 1993
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<S> <C> <C>
NET SALES
Building products $ 1,871 $ 1,908
Pulp and paper 1,460 1,263
Other operations 11 7
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Total net sales $ 3,342 $ 3,178
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OPERATING PROFITS
Building products $ 262 $ 252
Pulp and paper 181 (95)
Other operations (2) 3
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Total operating profits 441 160
General corporate expense (32) (76)
Interest expense (109) (123)
Cost of accounts receivable
sale program (10) (7)
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Income (loss) before income taxes 290 (46)
(Provision) benefit for income taxes (121) 10
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Net income (loss) $ 169 $ (36)
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Per share:
Net income (loss) $ 1.89 $ (.41)
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Average number of
shares outstanding 89.5 88.5
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</TABLE>
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GEORGIA-PACIFIC CORPORATION AND SUBSIDIARIES
Operating Highlights
(Dollar amounts, except per share, in millions)
(unaudited)
<TABLE>
<CAPTION>
Twelve Twelve
Months Months
Ended Ended
Dec. 31, Dec. 31,
1994 1993
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<S> <C> <C>
NET SALES
Building products $ 7,561 $ 7,067
Pulp and paper 5,138 5,188
Other operations 39 32
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Total net sales $ 12,738 $ 12,287
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OPERATING PROFITS
Building products $ 989 $ 973
Pulp and paper 171 (187)
Other operations 10 10
Other income (loss) 57 (26)
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Total operating profits 1,227 770
General corporate expense (169) (205)
Interest expense (453) (513)
Cost of accounts receivable
sale program (33) (29)
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Income before income taxes,
extraordinary item and accounting change 572 23
Provision for income taxes (246) (41)
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Income (loss) before extraordinary item
and accounting change 326 (18)
Extraordinary item, net of tax (11) (16)
Accounting change, net of tax (5) -
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Net income (loss) $ 310 $ (34)
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Per share:
Income (loss) before extraordinary
item and accounting change $ 3.66 $ (.21)
Extraordinary item, net of tax (.12) (.18)
Accounting change, net of tax (.06) -
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Net income (loss) $ 3.48 $ (.39)
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Average number of
shares outstanding 89.1 87.7
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</TABLE>
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Notes to Operating Highlights
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1. Income (Loss) Per Share. Income (loss) per share is computed based
on net income (loss) and the weighted average number of common shares
outstanding, net of restricted stock. The effects of assuming issuance of
common shares under long-term incentive, stock option and stock purchase plans
were either insignificant or antidilutive.
2. Accounting Change. The Corporation adopted Financial Accounting
Standard Number 112, "Employers' Accounting for Postemployment Benefits,"
effective Jan. 1, 1994. Adoption of this standard resulted in a one-time,
after-tax charge of $5 million (6 cents per share) to 1994 first quarter
earnings.
3. Other Income (Loss). In the 1994 first quarter, the Corporation
recorded other pretax income of $57 million ($33 million after taxes),
primarily resulting from the sales of its roofing manufacturing and envelope
businesses. During 1993, the Corporation recorded a pretax loss of $26 million
($7 million after-tax gain) on the sale of its paper distribution business.
4. Provision for Income Taxes. The Corporation reported pretax income
of $290 million and an income tax provision of $121 million for the three
months ended Dec. 31, 1994. The Corporation reported pretax loss of $46
million and an income tax benefit of $10 million for the three months ended
Dec. 31, 1993. The actual effective tax rate for both periods was different
than the federal statutory rate primarily because of nondeductible goodwill
amortization expense associated with past business acquisitions.
Excluding asset sales, the Corporation reported pretax income before
extraordinary item and accounting change of $515 million and an income tax
provision of $222 million for the 12 months ended Dec. 31, 1994. The
Corporation reported, excluding asset sales, pretax income before extraordinary
item of $49 million and an income tax provision of $74 million for the 12
months ended Dec. 31, 1993. The actual effective tax rate for both periods was
higher than the federal statutory rate primarily because of nondeductible
goodwill amortization expense associated with past business acquisitions.
5. Extraordinary Item. The Corporation prepaid approximately $204
million and $317 million of its outstanding debt during 1994 and 1993,
respectively. After-tax extraordinary losses of $11 million (12 cents per
share) and $16 million (18 cents per share) were recognized in 1994 and 1993,
respectively, related to the retirements.
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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 hereunto duly authorized.
DATED: February 21, 1995
GEORGIA-PACIFIC CORPORATION
By /s/ John F. McGovern
--------------------------------
John F. McGovern
Senior Vice President - Finance
and Chief Financial Officer
