SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: June 25, 1995 Commission File Number: 1-7911
JAMES RIVER CORPORATION of Virginia
(Exact name of registrant as specified in its charter)
Virginia 54-0848173
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
120 Tredegar Street, Richmond, VA 23219
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (804) 644-5411
Not Applicable
(Former name, former address, and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months, and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
Number of shares of $.10 par value common stock outstanding as of
August 1, 1995:
82,369,462 shares
JAMES RIVER CORPORATION
of Virginia
QUARTERLY REPORT ON FORM 10-Q
June 25, 1995
TABLE OF CONTENTS
Page No.
PART I. FINANCIAL INFORMATION:
ITEM 1. Financial Statements:
Consolidated Balance Sheets as of June 25, 1995 and
December 25, 1994 3
Consolidated Statements of Operations for the quarters and
six months ended June 25, 1995 and June 26, 1994 5
Consolidated Statements of Cash Flows for the six months
ended June 25, 1995 and June 26, 1994 6
Notes to Consolidated Financial Statements 7
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 14
PART II. OTHER INFORMATION:
ITEM 1. Legal Proceedings 17
ITEM 2. Changes in Securities 17
ITEM 3. Defaults Upon Senior Securities 17
ITEM 4. Submission of Matters to a Vote of
Security Holders 17
ITEM 5. Other Information 18
ITEM 6. Exhibits and Reports on Form 8-K 18
SIGNATURES 20
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
JAMES RIVER CORPORATION
of Virginia and Subsidiaries
CONSOLIDATED BALANCE SHEETS
June 25, 1995 and December 25, 1994
(in thousands, except share data)
June December
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $45,746 $59,296
Accounts receivable 960,038 913,501
Inventories 896,421 844,111
Prepaid expenses and other current assets 69,014 63,496
Deferred income taxes 93,865 95,126
Total current assets 2,065,084 1,975,530
Property, plant and equipment 7,191,154 6,925,036
Accumulated depreciation (2,467,014) (2,245,137)
Net property, plant and equipment 4,724,140 4,679,899
Investments in affiliates 126,693 125,097
Other assets 368,455 367,770
Goodwill 804,666 776,032
Total assets $8,089,038 $7,924,328
The accompanying notes are an integral part
of the consolidated financial statements.
JAMES RIVER CORPORATION
of Virginia and Subsidiaries
CONSOLIDATED BALANCE SHEETS, Continued
(in thousands, except share data)
June December
1995 1994
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $607,191 $597,141
Accrued liabilities 548,594 513,599
Short-term borrowings 225,132
Current portion of long-term debt 229,484 221,367
Income taxes payable 18,730 11,647
Total current liabilities 1,403,999 1,568,886
Long-term debt 2,857,331 2,667,960
Accrued postretirement benefits
other than pensions 552,693 545,009
Deferred income taxes 585,704 594,793
Other long-term liabilities 318,059 231,129
Minority interests 167,812 154,930
Preferred stock, $10 par value, 5,000,000
shares authorized, issuable in series;
shares outstanding,
June 25, 1995 -- 3,630,584 and
December 25, 1994 -- 3,630,604 740,269 740,303
Common stock, $.10 par value, 150,000,000
shares authorized; shares outstanding,
June 25, 1995 -- 81,982,221 and
December 25, 1994 -- 81,695,419 8,198 8,170
Additional paid-in capital 1,217,677 1,211,904
Retained earnings 237,296 201,244
Total liabilities and shareholders'
equtiy $8,089,038 $7,924,328
The accompanying notes are an integral part
of the consolidated financial statements.
<TABLE>
JAMES RIVER CORPORATION
of Virginia and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Quarters (13 Weeks) and Six Months (26 Weeks) Ended
June 25, 1995 and June 26, 1994
(in thousands, except per share amounts)
<CAPTION>
Second Quarter Six Months
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net sales $1,812,107 $1,198,145 $3,449,391 $2,303,648
Cost of goods sold 1,403,446 990,697 2,703,828 1,925,563
Selling and administrative expenses 280,115 164,983 522,411 315,315
Severance and other items 8,271
Income from operations 128,546 42,465 214,881 62,770
Interest expense 60,128 36,553 120,401 71,510
Other income, net 7,833 15,434 18,548 17,695
Income before income taxes and minority
interest 76,251 21,346 113,028 8,955
Income tax expense 32,786 8,521 48,600 3,546
Income before minority interests 43,465 12,825 64,428 5,409
Minority interests (1,702) 75 (522) 405
Net income $41,763 $12,900 $63,906 $5,814
Preferred dividend requirements (14,643) (8,201) (29,286) (16,403)
Net income (loss) applicable to common
shares $27,120 $4,699 $34,620 $(10,589)
Net income (loss) per common share and
common share equivalent $.33 $.06 $.42 $(.13)
Cash dividends per common share $.15 $.15 $.30 $.30
Weighted average number of common shares
and common share equivalents 83,368 81,901 83,237 81,883
The accompanying notes are an integral part
of the consolidated financial statements.
</TABLE>
JAMES RIVER CORPORATION
of Virginia and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months (26 Weeks) Ended
June 25, 1995 and June 26, 1994
(in thousands)
1995 1994
Cash provided by (used for) operating
activities:
Net income $63,906 $5,814
Items not affecting cash:
Depreciation expense and cost of timber harvested 234,892 178,038
Deferred income tax provision 8,704 662
Equity in earnings of unconsolidated affiliates (11,483) (4,164)
Severance and other items 8,271
Retirement benefits expense in excess of funding 7,505 14,044
Amortization of goodwill 11,399 2,358
Other noncash items 4,410 6,757
Change in current assets and liabilities:
Accounts receivable (16,237) (21,496)
Inventories (37,548) (35,665)
Prepaid expenses and other current assets (10,433) (907)
Accounts payable and accrued liabilities 3,091 (17,739)
Other current liabilities 9,285 (14,337)
Dividends received from unconsolidated affiliates 17,996
Other, net (8,280) (5,263)
Cash provided by operating activities 285,478 108,102
Cash provided by (used for) investing activities:
Expenditures for property, plant and equipment (208,707) (143,363)
Cash received from sale of assets 2,843 8,935
Proceeds on sale of partnership option 24,327
Investments in affiliates (12,108)
Other, net 12,625 2,777
Cash used for investing activities (168,912) (143,759)
Cash provided by (used for) financing activities:
Additions to long-term debt 6,321 98,568
Payments of long-term debt (88,078) (21,083)
Common and preferred stock cash dividends paid (53,800) (40,907)
Other, net 5,441 (1,399)
Cash provided by (used for) financing
activities (130,116) 35,179
Decrease in cash and cash equivalents (13,550) (478)
Cash and cash equivalents, beginning of period 59,296 23,620
Cash and cash equivalents, end of period $45,746 $23,142
The accompanying notes are an integral part
of the consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
In the opinion of management, the accompanying unaudited
consolidated financial statements of James River Corporation of
Virginia and Subsidiaries (the "Company" or "James River") contain
all adjustments (consisting of only normal recurring accruals)
necessary to present fairly the Company's consolidated financial
position as of June 25, 1995, and its results of operations for the
quarters (13 weeks) and the six months (26 weeks) ended June 25,
1995, and June 26, 1994, and its cash flows for the six months then
ended. The balance sheet as of December 25, 1994, was derived from
audited financial statements as of that date. The results of
operations for the six months ended June 25, 1995, are not
necessarily indicative of the results to be expected for the full
year. The results of Jamont N.V. ("Jamont"), the Company's European
consumer products subsidiary, are included on the basis of closing
dates which lag the Company's fiscal periods by one month.
Certain amounts in the prior year's financial statements and
supporting footnote disclosures have been reclassified to conform to
the current year's presentation.
2. Acquisitions and Dispositions
On March 29, 1995, the Company announced its Board of Directors
had approved proceeding with a spin-off to shareholders of a large
part of the Company's Communications Papers Business, along with the
specialty paper-based portion of its Food and Consumer Packaging
Business. The new company, Crown Vantage Inc. ("Vantage"), which is
expected to have annual sales of over $1 billion in 1995, will
include papermaking operations with an annual capacity of
approximately one million short tons. The assets of Vantage will
include mills located in St. Francisville, La.; Berlin, N.H.; Adams,
Mass.; Newark, Del.; Richmond, Va.; St. Andrews and Penicuik,
Scotland; Ypsilanti, Parchment and Port Huron, Mich.; and Milford
N.J. The St. Francisville, La., and Berlin, N.H., mills include
annual pulping capacity of nearly 600,000 short tons, or
approximately three-quarters of Vantage's fiber needs. Approximately
120,000 acres of managed forests supporting the Berlin and St.
Francisville mills will also be included in Vantage. The spin-off is
planned to be tax-free to shareholders and is expected to be
effective during the summer of 1995.
The pro forma information presented below is based on James
River's financial statements, as adjusted to give effect to (i) James
River's receipt of cash in connection with the spin-off of Vantage,
(ii) the receipt of a pay-in-kind note to James River from Vantage
and (iii) the execution of the transition agreements between James
River and Vantage. The pro forma information is presented as if the
spin-off had been completed as of June 25, 1995, for any balance
sheet information and as of the beginning of 1995 for each period for
which pro forma consolidated operating data are presented. The pro
forma financial information does not purport to represent the actual
financial position as it will finally be recorded, or the results of
operations which would actually have been reported if the spin-off
had occurred on the dates or for the periods indicated, or which may
be reported in the future.
Pro Forma Consolidated Operating Data Quarter Ended Six Months Ended
(in millions, except per share data) June 25, 1995 June 25, 1995
Net sales $1,573.4 $2,979.6
Operating profit 112.1 179.3
Net income 38.5 56.1
Net income applicable to common shares
(after preferred dividend requirements) 23.8 26.8
Net income per common share $.29 $.32
The Company expects to receive approximately $480 million in
cash proceeds which is planned to be used to pay down its existing
long-term debt. Pro forma total debt, net of the application of cash
proceeds, as of June 25, 1995, is $2,579.6 million and the pro forma
ratio of total debt to total capitalization is 52.0%. These amounts
compare to actual total debt of $3,086.8 million and a total debt to
total capitalization ratio of 56.6% as of June 25, 1995.
In November 1994, James River initiated the exercise of its
option to purchase CRSS Capital, Inc.'s ("CRSS") 50% total direct and
indirect interest in the Naheola Cogeneration Limited Partnership
(the "Naheola Partnership"). Earlier this spring, James River and
CRSS reached a settlement allowing James River to assign the right to
purchase CRSS's interest to UtilCo Group Inc. ("UtilCo"). In May
1995, UtilCo purchased CRSS's 50% interest in the chemical recovery
and cogeneration facility at the Naheola pulp and paper mill in
Pennington, Alabama. The proceeds to James River on its sale of this
purchase option to UtilCo of $24.3 million are reflected in the
consolidated statement of cash flows for the six months ended June
25, 1995. Such proceeds were recognized as a deferred gain and will
result in reduced expenses for James River of $1.4 million annually.
James River retains ownership of the remaining 50% total direct and
indirect interest in this facility.
3. Severance and Other Items
Results for the first six months of 1995 included a nonrecurring
charge of $8.3 million ($5.3 million net of tax benefits and minority
interest, or $.06 per share) primarily for costs related to a
reduction of approximately 500 employees at European Consumer
Products Business locations in the British Isles. During 1995, the
Company made severance payments of $6.8 million to approximately 312
terminated employees in both the United States and Europe for whom
severance costs had been accrued beginning in December 1994. The
Company expects to incur additional severance expenses during 1995
associated with ongoing cost reduction programs and consolidation of
certain operations in Europe.
In April 1995, the Company announced its decision to discontinue
towel and tissue converting operations at its Berlin, New Hampshire,
facility by the end of June. This decision will affect approximately
80 salaried and hourly positions. One small tissue machine has been
taken out of production, and selected converting equipment will be
transferred to other James River facilities. The Company currently
expects that any severance costs or fixed asset write-offs associated
with the closure will not be material. The majority of the assets
that comprise the Berlin pulp and paper mill will be part of the spin-
off to Vantage (see Note 2).
4. Other Income
The components of other income were as follows for the six
months ended June 25, 1995, and June 26, 1994 (in thousands):
June June
1995 1994
Interest and investment income $5,992 $10,926
Equity in earnings of
unconsolidated affiliates 11,483 4,164
Foreign currency exchange gain (loss) (1,248) (357)
Other, net 2,321 2,962
Total other income $18,548 $17,695
5. Income Taxes
The Company's effective income tax rate was 43% for the six
months ended June 25, 1995, compared to 39.6% for the first six
months of 1994. The increase in the effective tax rate from the
prior year was primarily due to (i) foreign net operating losses for
which valuation allowances have been established and (ii) the
relative size of non-tax-deductible permanent differences, the most
significant of which relates to goodwill resulting from the
consolidation of Jamont beginning in the third quarter of 1994.
6. Inventories
The components of inventories were as follows as of June 25,
1995, and December 25, 1994 (in thousands):
June December
1995 1994
Raw materials $224,763 $187,634
Finished goods and work in process 574,086 543,872
Stores and supplies 187,811 184,457
986,660 915,963
Reduction to state certain inventories
at last-in, first-out cost (90,239) (71,852)
Total inventories $896,421 $844,111
7. Long-Term Debt
In support of the Company's focus as a worldwide consumer
products business, management has decided to utilize its global
revolver capacity to refinance short-term borrowings of approximately
$200 million, as compared to the segregation of domestic and foreign
borrowing capacity employed in prior years. Because of the
availability of long-term financing under the terms of the domestic
and foreign revolving credit agreements and the Company's intention
to refinance its worldwide commercial paper, money market notes and
other short-term borrowings, these borrowings have been classified as
long-term debt in the June 25, 1995, balance sheet.
8. Financial Instruments
The estimated fair value of the Company's $1,286 million
notional amount of interest rate swaps was a liability of $28.9
million as of June 25, 1995, compared to a liability of $128 million
as of December 25, 1994. As of June 25, 1995, the carrying value of
foreign exchange contracts was a net liability of $94.6 million and
the estimated fair value of such contracts was a net liability of
$121.5 million, compared to net liabilities of $39.6 million and
$73.0 million, respectively, as of December 25, 1994. The estimated
fair values were based on quoted market prices of comparable
instruments and current market rates as of June 25, 1995, and
December 25, 1994, respectively.
9. Commitments and Contingent Liabilities
(a) Put and Call Arrangements:
James River is a party to a put and call arrangement
related to the 14% minority interest in Jamont currently owned
by EuroPaper Inc. ("EuroPaper"). EuroPaper may put its interest
in Jamont to James River during May 1996 and James River may
call these shares during August 1996, each at a fixed price of
approximately 1.04 billion French francs (approximately $214.4
million using exchange rates in effect as of June 25, 1995). In
addition, James River has a separate call agreement with
EuroPaper under which it may call EuroPaper's shares through
April 1996 at a formula price.
James River and UtilCo each own 50% of the Naheola
Partnership, which was formed in order to develop and operate a
$300 million chemical recovery unit at the Company's Naheola
mill. James River has an option to purchase UtilCo's interest
at a formula price. UtilCo also has an option to put its
interest in the partnership to James River at a formula price.
UtilCo's option may only be exercised (i) if the facility
becomes subject to regulation as a public utility, (ii) if
production levels at the Naheola mill fall below certain levels
due to the Company's shifting of production to other mills or
(iii) if the Naheola mill is sold to a competitor of UtilCo;
management believes the probability of the occurrence of any of
these events is remote.
(b) Environmental Matters:
Like its competitors, James River is subject to extensive
regulation by various federal, state, provincial and local
agencies concerning compliance with environmental control
statutes and regulations. These regulations impose limitations
on the discharge of materials into the environment, including
effluent and emission limitations, as well as require the
Company to obtain and operate in compliance with the conditions
of permits and other governmental authorizations. Future
regulations could materially increase the Company's capital
requirements and certain operating expenses in future years.
In December 1993, the U.S. Environmental Protection Agency
("EPA") published draft rules which contain proposed regulations
affecting pulp and paper industry discharges of wastewater and
gaseous emissions ("cluster rules"). The final rules are likely
to be issued in late 1996, with a nominal compliance date of
1999. These rules may require significant changes in the
pulping and/or bleaching process presently used in some U.S.
pulp mills, including several of James River's mills. The
implementation of the rules could materially increase the
Company's capital expenditures between 1997 and 1999. Based on
its evaluation, the Company expects that such capital
expenditures could be at least $300 million for James River, if
the regulations are approved as originally proposed. Of this
amount, approximately $70 million would be associated with the
Vantage facilities to be spun-off, reducing James River's
portion of potential costs to meet the original proposal to at
least $230 million. This estimate could change, depending on
several factors, including changes to the proposed regulations,
new developments in control and process technology, and
inflation.
In addition, James River has been identified as a
potentially responsible party ("PRP"), along with others, at
various EPA designated Superfund sites and is involved in
remedial investigations and actions under federal and state
laws. It is James River's policy to accrue remediation costs
when it is probable that such costs will be incurred and when
they can be reasonably estimated. As of June 25, 1995, James
River's accrued environmental liabilities, including remediation
and landfill closure costs, totaled $36.9 million. The Company
periodically reviews the status of all significant existing or
potential environmental issues and adjusts its accrual as
necessary. The accruals do not reflect any possible future
insurance recoveries. Estimates of costs for future remediation
are necessarily imprecise due to, among other things, the
identification of presently unknown remediation sites and the
allocation of costs among PRP's. The Company believes that its
share of the costs of cleanup for its current remediation sites
will not have a material adverse impact on its consolidated
financial position but could have a material effect on
consolidated results of operations in a given quarter or year.
As is the case with most manufacturing and many other entities,
there can be no assurance that the Company will not be named as
a PRP at additional sites in the future or that the costs
associated with such additional sites would not be material.
(c) Bondholder Litigation:
In 1994, James River was sued in Morgan County, Alabama, in
a purported class action and in Bridgeport, Connecticut, by
certain former holders of James River's 10-3/4% Debentures due
October 1, 2018. Most of these Debentures were retired by means
of a tender offer to all holders commenced on September 18,
1992. The remainder were redeemed on November 2, 1992. Merrill
Lynch & Co., which acted as James River's dealer manager for the
tender, is also named as a defendant in the Alabama case. In
general, the complaints allege violations of a covenant
prohibiting use of lower cost borrowed funds to redeem the
Debentures before October 1, 1998, and of various disclosure
obligations, and seek damages in excess of $50 million plus
punitive damages in excess of $500 million. James River
believes that these claims are without merit and intends to
defend them vigorously. Although the ultimate disposition of
legal proceedings cannot be predicted with certainty, it is the
opinion of the Company's management that the outcome of any
claim which is pending or threatened, either individually or on
a combined basis, will not have a materially adverse effect on
the consolidated financial condition of James River but could
materially affect consolidated results of operations in a given
quarter or year.
10. Segment Information
James River's net sales and income from operations by business
segment were as follows for the quarters and six months ended June
25, 1995, and June 26, 1994 (in thousands):
Second Quarter Six Months
June June June June
1995 1994 1995 1994
Net sales:
Consumer products:
North America $686,669 $621,370 $1,296,167 $1,178,594
Europe 422,877 780,517
Total consumer
products 1,109,546 621,370 2,076,684 1,178,594
Food and consumer
packaging 431,568 399,328 851,881 775,065
Communications papers 325,891 220,453 627,201 435,497
Intersegment elimination (54,898) (43,006) (106,375) (85,508)
Total net sales $1,812,107 $1,198,145 $3,449,391 $2,303,648
Operating profit (loss):
Consumer products:
North America $58,408 $46,991 $96,833 $75,307
Europe 10,464 14,011
Total consumer
products 68,872 46,991 110,844 75,307
Food and consumer
packaging 16,463 34,310 34,483 60,943
Communications papers 60,155 (26,516) 104,656 (51,575)
Severance and other items (8,271)
General corporate expenses (16,944) (12,320) (26,831) (21,905)
Income from operations $128,546 $42,465 $214,881 $62,770
11. Pro Forma Data -- Jamont
In July 1994, James River increased its ownership interest in
Jamont from 43% to 86% for approximately $575 million and began
accounting for Jamont as a consolidated subsidiary. The following
pro forma information assumes that the acquisition of the additional
interest in Jamont occurred as of the beginning of 1994. The pro
forma financial information does not purport to be indicative of the
results of operations which would actually have been reported if the
transactions had occurred for the periods indicated or which may be
reported in the future. Jamont is included in the consolidated
balance sheets as of June 25, 1995, and December 25, 1994, and its
results of operations are consolidated for all of 1995.
Pro Forma Consolidated Operating Data Quarter Ended Six Months Ended
(in millions, except per share data) June 26, 1994 June 26, 1994
Net sales $1,576.8 $3,006.3
Operating profit 59.5 94.8
Net income (loss) 8.1 (0.3)
Net loss applicable to common shares
(after preferred dividend requirements) (6.5) (29.6)
Net loss per common share $(.08) $(.36)
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The Company reported net income of $41.8 million for its second
quarter ended June 25, 1995, more than triple the $12.9 million in
1994's second quarter. Earnings of $.33 per share for the second
quarter were similarly improved over the earnings of $.06 per share
reported in last year's second quarter. Results for the second
quarter of 1994 included nonrecurring interest income of $5.4
million, or $.07 per share. Net sales of $1.8 billion reported in
the second quarter were 51% above the $1.2 billion of sales in the
prior year's quarter. Compared to the prior year, $423 million, or
35%, of the sales growth was attributable to the European Consumer
Products Business, which was not consolidated until July 1994. The
remaining sales growth of 16% represented a combination of improved
pricing and stronger volumes in many product lines, as discussed
below. Income from operations totaled $128.5 million for the second
quarter, more than three times last year's second quarter.
Operating profits in the North American Consumer Products
Business increased 24%, from $47.0 million in last year's second
quarter to $58.4 million in the current quarter, while net sales
increased 11% over the same period, from $621.4 million to $686.7
million. Improved sales and profitability continue to be driven by
better pricing, especially in the commercial line. Current quarter
volumes in the retail and club lines remained relatively constant
compared to the prior year, while commercial volumes declined by 10%
for the same period. This decline is attributable to relaxed
customer demand in response to price increases. Price increases
began to be put into place late in 1994 in response to higher raw
materials costs and continued to become effective during the second
quarter in response to competitive pressures and the persisting
upward trend in raw materials costs.
Operating profits for the European Consumer Products Business
decreased to $10.5 million, compared to $17.0 million on a pro forma
basis in last year's second quarter, while net sales increased to
$422.9 million in this year's second quarter from $378.7 million on a
pro forma basis in the prior year. Profitability of the European
Consumer Products Business has been hindered by significant increases
in the cost of market pulp, waste paper and other raw materials
during 1994 and 1995 without commensurate increases in finished goods
prices. Although there has been improved recovery of such raw
material costs and positive results from cost reduction programs
during 1995, volumes have declined 2% compared to the second quarter
of 1994 as a result of the current aggressive pricing position; James
River has led price increase initiatives in many European countries.
This situation has delayed the expected increase in overall
profitability. In addition, second quarter 1995 sales increased
approximately $48 million over the prior year due to changes in
foreign currency exchange rates. Operating profit for the first
quarter of 1995 was $3.5 million, while sales were $357.6 million.
Improved profitability over the first quarter was attributable to a
combination of unit volume recovery, stronger pricing and continued
cost reductions.
The Food and Consumer Packaging Business reported a decline in
operating profits, from $34.3 million in last year's second quarter
to $16.5 million in the current quarter, while net sales increased by
8%, from $399.3 million to $431.6 million for the comparable periods.
The increase in sales was due to price increases implemented to
recover the rapid escalation in raw materials costs. Primary causes
of the decline in operating profits for the quarter were competitive
pressures, softening product demand, as well as excess raw materials
costs and other manufacturing costs primarily experienced in the
flexible packaging operations. The paper packaging group performance
was depressed by high pulp costs. Folding carton performance was
equal to the prior year due to the successful recovery of raw
materials cost increases. Paperboard production hit record levels
during the quarter, but softening demand led to increases in finished
goods inventories and forced downtime. In addition, the flexible
packaging operations experienced a slight decrease in unit volumes
during the quarter as compared to the prior year's quarter.
Results for the Communications Papers Business continued the
dramatic rebound begun in the second half of 1994. Operating profits
increased to $60.2 million in 1995's second quarter compared with a
loss of $26.5 million in the prior year, while net sales increased by
48% from $220.5 million last year to $325.9 million this year.
Profitability for the quarter was favorably affected by improved
pricing. Pricing improved by over 50% for this business compared to
the prior year, despite slightly decreased volumes. Price increases
for uncoated free sheet and coated and uncoated groundwood papers
combined with the benefits of cost reduction efforts and productivity
improvements effected during the last cyclical downturn caused the
sharp year-over-year improvement. Second quarter results continued
to be negatively affected by increasing costs for wood fiber. Higher
costs for wood chips were caused by several factors, including
declining supplies from Federal lands, soft lumber markets and
continued higher demand for wood chips. Additional price increases
may be implemented in the remainder of 1995, however, costs for wood
chips may also continue to rise.
For the six months, James River reported net sales of $3.4
billion in 1995, compared to $2.3 billion in 1994. Net income for
the first six months of 1995 was $63.9 million, or $.42 per share,
compared to 1994's net income of $5.8 million, or a loss of $(.13)
per share. Results for 1995 included a net charge of $5.3 million,
or $.06 per share, primarily for severance costs in the United
Kingdom, while 1994 results included net income of $5.4 million, or
$.07 per share, from nonrecurring interest income. General corporate
expenses for 1995 included $6.7 million of consulting fees ($4.1
million net of tax benefits, or $.05 per share) incurred in
connection with cost reduction programs. Interest expense for the
first six months of 1995 increased by $48.9 million compared with the
same period in 1994 as consolidated total debt increased from $2,117
million on June 26, 1994, to $3,086 million on June 25, 1995. The
increase in debt was attributable to the July 1994 purchase and
consolidation of Jamont. Other income increased to $18.5 million for
the first half of 1995 from $17.7 million for the comparable period
in 1994. This slight increase is a combination of an increase in
equity earnings of unconsolidated affiliates, primarily the Company's
earnings from its Brazilian affiliate which has benefited from
increases in worldwide market pulp prices, offset by a decrease in
interest income. Interest income in 1994 included $9.0 million ($5.4
million after taxes, or $.07 per share) of nonrecurring interest
income on income tax refunds. Further detail on other income is
included in Note 4 of Notes to Consolidated Financial Statements.
The change in the effective tax rate for 1995 is discussed in Note 5
of Notes to Consolidated Financial Statements.
The Company progressed with the spin-off to shareholders of
Vantage, a new company which will include a substantial portion of
the Company's Communications Papers Business and the specialty paper-
based portion of its Food and Consumer Packaging Business. Vantage
is expected to incur $500 million in long-term debt, the net proceeds
of which will be paid to James River as a return of capital. Vantage
will also issue $100 million of notes to James River. James River
plans to use the cash proceeds to reduce its long-term debt. The
spin-off is currently expected to be completed in late summer (see
Note 2 of Notes to Consolidated Financial Statements).
At a meeting with security analysts on July 28, 1995, the
Company discussed details of its ongoing restructuring initiatives,
cost reduction programs and succession plans, all designed to
transform the Company into a more focused, more profitable consumer
products company. These programs include dramatic changes in how the
Company purchases raw materials, equipment and services, fundamental
redesign of how work is done in its manufacturing facilities,
modernization of its tissue converting operations, upgrading of
information systems that respond to customer orders, streamlining of
its distribution network, and redesign and consolidation of its
administrative and support activities. Interest savings are expected
to result from debt reduction associated with both the spin-off of
Vantage and the possible separation of the Food and Consumer
Packaging Business. Mr. Williams, the Chairman and Chief Executive
Officer of the Company, plans to retire at the end of the year, and a
search for his successor is nearing completion.
The Company expects to see further profit improvements as the
year progresses. Consumer Products' results, in both the U.S. and
Europe, should continue to improve, as announced price increases are
more fully implemented. Communications Papers' results are expected
to remain strong, as market conditions continue to be favorable. In
addition to the Vantage spin-off, alternatives for the Food and
Consumer Packaging Business continue to be evaluated in order to
enhance shareholder value, reduce debt and improve the strategic
focus of the Company.
Financial Condition
Capital expenditures totaled $208.7 million for the first six
months of 1995 compared with $143.4 million for the same period of
1994. This increase is primarily due to the effect of the
consolidation of Jamont's capital spending in 1995. Cash provided by
operations for the six months ended June 25, 1995, totaled $285.5
million, compared to $108.1 million in the comparable period of 1994.
This increase is primarily due to increases in net income, changes in
domestic working capital components (mainly decreased receivables and
increased payables and other current liabilities), and dividends
received from its unconsolidated Brazilian affiliate and the Naheola
Partnership in 1995. The Company's current ratio increased to 1.47
as of June 25, 1995, from 1.26 as of December 25, 1994, and working
capital increased to $661 million from $407 million for the same time
period. The increase in working capital of $254 million was
primarily attributable to the recharacterization of short-term
borrowings as long-term debt based on the Company's ability and
intention to refinance such borrowings.
James River's ratio of total debt, including the current portion
and short-term borrowings, to total capitalization was 56.6% as of
June 25, 1995, compared to 57.4% as of December 25, 1994. For
purposes of calculating this ratio, total capitalization represents
the sum of current and long-term debt, including short-term
borrowings, minority interests and equity accounts. On December 14,
1994, the Company refinanced Jamont's European currency unit ("ECU")
borrowing facility which was reduced in size from ECU 400 million to
ECU 330 million. For the six months ended June 25, 1995, the ratio
of earnings to fixed charges was 1.75. For the year ended December
25, 1994, earnings were inadequate to cover fixed charges by $18.8
million.
As of June 25, 1995, under the most restrictive provisions of
the Company's debt agreements, the Company had additional borrowing
capacity of approximately $630 million and net worth in excess of the
minimum requirement specified by such agreements of approximately
$470 million.
In May 1995, James River completed the assignment of the right
to purchase the remaining 50% total direct and indirect interest in
the Naheola Partnership to UtilCo. UtilCo paid James River $24.3
million for the assignment of the purchase option, and the proceeds
were recognized as a deferred gain and will result in reduced
expenses of approximately $1.4 million per year (see Note 2 of Notes
to Consolidated Financial Statements).
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
James River has been notified by the EPA of a proposed civil
action relating to certain environmental violations at the Company's
Berlin, New Hampshire, mill. The EPA filed a civil action in federal
court in New Hampshire and concurrently filed a consent decree which
is subject to court approval. The Company has agreed to a settlement
with the EPA and the Department of Justice relating to this action
which will involve penalties of $200,000. In addition, the Company
has agreed to implement environmentally beneficial capital
improvements at a cost of approximately $500,000. A citizen's group
whose members live near the Berlin facility has moved to intervene in
the matter which may impact the final resolution of this action.
Item 2. CHANGES IN SECURITIES.
None.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
None.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Annual Meeting of Shareholders was held on April 20, 1995,
at which time all of management's nominees for members of the Board
of Directors were elected, and the designation of Coopers & Lybrand
L.L.P. as the Company's independent accountants for the fiscal year
which will end December 31, 1995, was approved. Additionally, the
Company's common shareholders voted on two proposals submitted by
certain shareholders: (i) a proposal urging the Company's Northern
Ireland affiliate to implement and/or increase activity on the nine
MacBride Principles and (ii) a proposal requesting the preparation of
an equal employment report to be made available upon request to all
shareholders and employees. These proposals are more fully described
in the James River Proxy Statement for the Annual Meeting held on
April 20, 1995. Shareholders of record of the Company's common stock
and its Series P 9% Cumulative Convertible Preferred Stock at the
close of business on February 13, 1995, were entitled to vote at the
Annual Meeting. Votes were casts as follows:
Vote
Voted Voted Withheld or Broker
For Against Abstained Non-Votes
Nominees for election of
Directors:
William T. Burgin 79,368,355 2,656,920
Worley H. Clark, Jr. 71,088,467 10,936,808
William T. Comfort, Jr. 79,377,191 2,648,084
William V. Daniel 79,306,074 2,719,201
Bruce C. Gottwald 71,094,907 10,930,368
Robert M. O'Neil 79,351,662 2,673,613
Joseph T. Piemont 79,294,520 2,730,755
Anne M. Whittemore 79,410,904 2,614,371
Robert C. Williams 79,172,883 2,852,392
Vote
Voted Voted Withheld or Broker
For Against Abstained Non-Votes
Appointment of Coopers &
Lybrand L.L.P. as
auditors 81,701,048 182,135 142,092
Shareholder proposal -
MacBride Principles 4,963,568 63,338,828 6,073,290 7,649,589
Shareholder proposal -
Equal Employment Report 6,276,146 61,882,318 6,217,222 7,649,589
Item 5. OTHER INFORMATION.
None.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
The exhibits listed below are filed as part of this
quarterly report. Each exhibit is listed according to the
number assigned to it in the Exhibit Table of Item 601 of
Regulation S-K.
Exhibit Starts
Number Description on Page
11 Computation of Earnings per Share -- filed
herewith. 21
12 Computation of Ratio of Earnings to Fixed
Charges -- filed herewith. 24
27 Financial Data Schedules for the six
months ended June 25, 1995 (incorporated
by reference to Exhibit 27 to the
Company's Current Report on Form 8-K dated
July 20, 1995).
99(a) Press release announcing highlights from
security analyst meeting dated July 31,
1995 -- filed herewith. 27
99(b) Press release announcing the negotiation
of an information technologies management
contract dated July 31, 1995 -- filed
herewith. 29
(b) Reports on Form 8-K:
During the quarter ended June 25, 1995, and subsequent
thereto, the Company filed the following Current Reports on
Form 8-K:
Date of Report Event Reported
March 29, 1995 The Company published a press release
announcing that the Board of Directors
approved proceeding with a spin-off to
shareholders which includes a large
part of the Communications Papers
Business and certain specialty
packaging papers operations included in
its Food and Consumer Packaging
Business.
May 22, 1995 The Company published a press release
announcing the completion of the sale
of 50% of the chemical recovery and
cogeneration facility at its Naheola
pulp and paper mill in Pennington,
Alabama, to UtilCo Group Inc.
June 15, 1995 The Company published a press release
announcing that a Registration
Statement was filed with the Securities
and Exchange Commission by Crown Paper
Co. for the proposed issuance of $250
million of debt securities.
July 20, 1995 The Company published a press release
announcing its results of operations
for the second quarter and six months
ended June 25, 1995.
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.
JAMES RIVER CORPORATION of Virginia
By:/s/Stephen E. Hare
Stephen E. Hare
Senior Vice President, Corporate Finance
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
Date: August 2, 1995
Exhibit 11
JAMES RIVER CORPORATION of Virginia
COMPUTATION OF EARNINGS PER SHARE
For the Quarters (13 Weeks) and Six Months (26 Weeks) Ended
June 25, 1995 and June 26, 1994
(in thousands, except per share amounts)
Second Quarter Six Months
PRIMARY: 1995 1994 1995 1994
Net earnings (loss) applicable
to common shares $27,120 $4,699 $34,620 $(10,589)
Weighted average number of
common shares and common share
equivalents:
Common shares outstanding 82,083 81,672 81,911 81,652
Issuable upon exercise of
outstanding stock options and
pursuant to a deferred stock
award plan 4,890 355 4,294 407
Less assumed acquisition of
common shares, using proceeds
from stock options and the impact
of a deferred stock award plan, under
the treasury stock method (3,732) (127) (3,327) (176)
83,241 81,900 82,878 81,883
Primary earnings (loss) per
common share $.33 $.06 $.42 $(.13)
Exhibit 11 (continued)
JAMES RIVER CORPORATION of Virginia
COMPUTATION OF EARNINGS PER SHARE
For the Quarters (13 Weeks) and Six Months (26 Weeks) Ended
June 25, 1995 and June 26, 1994
(in thousands, except per share amounts)
Second Quarter Six Months
FULLY DILUTED: 1995 1994 1995 1994
Net earnings (loss) applicable
common shares $27,120 $4,699 $34,620 $(10,589)
Weighted average number of common
shares and common share equivalents:
Common shares outstanding 82,083 81,672 81,911 81,652
Issuable upon exercise of outstanding
stock options and pursuant to a
deferred stock award plan 4,922 355 5,113 407
Less assumed acquisition of common
shares, using proceeds from stock
options and the impact of a deferred
stock award plan, under the treasury
stock method (3,637) (126) (3,787) (176)
83,368 81,901 83,237 81,883
Fully diluted earnings (loss)
per common share $.33 $.06 $.42 $(.13)
Exhibit 11 (continued)
JAMES RIVER CORPORATION of Virginia
NOTES TO COMPUTATIONS OF EARNINGS
PER SHARE
Primary earnings per common share is computed by dividing net
income, after deducting dividends on outstanding preferred shares, by
the weighted average number of common shares and dilutive common
share equivalents outstanding during the period. Common share
equivalents consist of shares issuable pursuant to stock options and
a deferred stock award plan, and are calculated using an average
market price for the period.
Fully diluted earnings per common share is computed using the
same method as for the primary computation except that (i) common
share equivalents are computed using the higher of the market price
at the end of the period or the average market price for the period,
and (ii) the average number of common shares and dilutive common
share equivalents outstanding is increased by the assumed conversion,
if dilutive, of the Company's Series K $3.375 Cumulative Convertible
Exchangeable Preferred Stock, its Series L $14.00 Cumulative
Convertible Exchangeable Preferred Stock, its Series N $14.00
Cumulative Convertible Exchangeable Preferred Stock, and its Series P
9% Cumulative Convertible Preferred Stock. No conversions of any of
the convertible preferred stocks have been assumed for the periods
presented, as such conversions are not dilutive.
Exhibit 12
JAMES RIVER CORPORATION of Virginia
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a)
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
Fiscal Year Ended
April December December December December December
29, 1990 30, 1990 29, 1991 27, 1992 26, 1993 25, 1994
(52 weeks) (35 weeks) (52 weeks) (52 weeks) (52 weeks) (52 weeks)
(b) (c,d) (d)
<S> <C> <C> <C> <C> <C> <C>
Pretax income (loss) from
continuing operations,
before minority interests $371,501 $44,352 $115,170 $(182,817) $14,115 $(15,693)
Add:
Interest charged to operations 198,743 133,716 191,344 192,962 183,035 210,063
Portion of rental expense
representative of interest
factor (assumed to be one-third) 23,400 15,100 19,891 19,426 19,094 24,224
Total earnings, as adjusted $593,644 $193,168 $326,405 $29,571 $216,244 $218,594
Fixed charges:
Interest charged to operations $198,743 $133,716 $191,344 $192,962 $183,035 $210,063
Capitalized interest 25,475 10,759 31,740 12,778 5,291 3,080
Portion of rental expense
representative of interest
factor (assumed to be one-third) 23,400 15,100 19,891 19,426 19,094 24,224
Total fixed charges $247,618 $159,575 $242,975 $225,166 $207,420 $237,367
Ratio 2.40 1.21 1.34 -- 1.04 --
See accompanying footnote explanations.
</TABLE>
Exhibit 12 (continued)
JAMES RIVER CORPORATION of Virginia
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a)
(Dollar amounts in thousands)
Six Months Ended
June 26, June 25,
1994 1995
(26 Weeks) (26 Weeks)
Pretax income (loss) from continuing
operations, before minority interests $8,195 $108,074
Add:
Interest charged to operations 89,824 125,282
Portion of rental expense representative of
interest factor (assumed to be one-third) 9,547 12,112
Total earnings, as adjusted $107,566 $245,468
Fixed charges:
Interest charged to operations $89,824 $125,282
Capitalized interest 1,251 2,850
Portion of rental expense representative of
interest factor (assumed to be one-third) 9,547 12,112
Total fixed charges $100,622 $140,244
Ratio 1.07 1.75
See accompanying footnote explanations.
Exhibit 12 (continued)
JAMES RIVER CORPORATION of Virginia
NOTES TO COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(a) In computing the ratio of earnings to fixed charges,
earnings consist of income before income taxes,
minority interests, and fixed charges excluding
capitalized interest. Fixed charges consist of
interest expense, capitalized interest, and that
portion of rental expense (one-third) deemed
representative of the interest factor. Earnings and
fixed charges also include the Company's proportionate
share of such amounts for unconsolidated affiliates
which are owned 50% or more and distributed income from
less than 50% owned affiliates.
(b) During 1990, the Company changed its fiscal year from
one ending on the last Sunday in April to one ending on
the last Sunday in December. During this period, the
Company initiated an operational restructuring program
designed to focus the Company's operations on those
businesses in which it commands a substantial market
share and which are less cyclical. In connection with
that program, the Company recorded a $200 million
pretax charge which has been included in the
calculation of the ratio of earnings to fixed charges
for this period.
(c) During 1992, the Company initiated a productivity
enhancement program and recorded a $112 million pretax
charge which has been included in the calculation of
the ratio of earnings to fixed charges for this year.
(d) For the following periods, earnings were inadequate to
cover fixed charges, and the amounts of the
deficiencies were: year ended December 27, 1992 --
$195.6 million and year ended December 25, 1994 --
$18.8 million.
Exhibit 99(a)
News Release: Immediate Contact: Richard B. Elder (Media)
(804)343-4785
Celeste Gunter (Financial)
(804) 649-4307
JAMES RIVER HIGHLIGHTS COST REDUCTION AND RESTRUCTURING PROGRAMS
AT SECURITY ANALYST MEETING
RICHMOND, VIRGINIA, July 31, 1995 -- At a meeting with security
analysts on Friday, July 28, 1995, James River Corporation discussed
details of its ongoing restructuring initiatives, cost reduction
programs and succession plans, all designed to transform the company
into a more focused, more profitable consumer products company.
Robert C. Williams, co-founder, Chairman and Chief Executive
Officer, outlined additional details of an expanded cost reduction
program which is in motion. This program, once fully implemented, could
generate savings of as much as $640 million by 1998 and would result in
the elimination of approximately 4,400 jobs in North America and Europe,
mostly in 1995 and 1996. These programs include dramatic changes in how
the company purchases raw materials, equipment and services, fundamental
redesign of how work is done in its manufacturing facilities,
modernization of its tissue converting operations, upgrading of
information systems that respond to customer orders, streamlining of its
distribution network, and redesign and consolidation of its
administrative and support activities. Mr. Williams told analysts,
"While these reductions will be painful, they are absolutely necessary
for us to become a competitive consumer products business in the
future." The company currently employs nearly 22,700 people in its
North American and European Consumer Products operations.
Mr. Williams also commented on progress relative to the naming of a
new CEO. Mr. Williams, who plans to retire at the end of the year,
indicated that the search for his successor was nearing completion. He
noted, "While no successor has yet been named, it is expected that the
new CEO will come from outside the company, will have a broad consumer
products background and could be on board this fall."
Stephen E. Hare, Chief Financial Officer, updated analysts on the
planned spin-off to shareholders of what was formerly a large part of
the company's Communications Papers Business and its specialty papers
operations. This spin-off is designed to reduce James River's exposure
to the highly cyclical nature of communications papers markets and
sharpen its focus on consumer products. Plans for the spin-off
company, to be named Crown Vantage, Inc., are progressing and are
expected to be completed by late summer. Crown Vantage is expected to
incur $500 million in long-term debt, the net proceeds of which will be
paid as a return of capital to James River. The company intends to use
the cash proceeds to reduce its long-term debt. On a pro forma basis as
of the end of its second quarter, such application would have resulted
in a decline in the company's debt to capital ratio from 56.6% to
approximately 52%.
The company continues to study strategic options for its Food and
Consumer Packaging Business.
Included in the $640 million of potential savings is a reduction in
interest expense of over $100 million. Interest savings are expected to
result from debt reduction associated with both the spin-off of Crown
Vantage and the possible separation of the Food and Consumer Packaging
Business.
In anticipation of the planned spin-off, Mr. Williams also
discussed the formation of a new simplified organizational structure
consisting of three operating divisions, each with its own president,
and a single corporate staff. Named to head the three divisions were:
James K. Goodwin, President, North American Consumer Products Division;
Ronald L. Singer, President, European Consumer Products Division; and,
Norman K. Ryan, President, Food and Consumer Packaging Division. Mr.
Williams commented: "These organizational changes give more authority to
each of the division presidents and allow the businesses to concentrate
on making and selling their products."
Mr. Williams noted in closing: " I believe a clear path has now
been established to transform James River into a consumer products
business that will be competitive with any in the world. The entire
organization, with the support of the Board of Directors, is committed
to getting the job done."
James River Corporation, headquartered in Richmond, Virginia, is a
leading manufacturer and marketer of consumer products, food and
consumer packaging and communications papers. These product lines
include leading brands such as QUILTED NORTHERN bathroom tissue, BRAWNY
paper towels, DIXIE paper cups and plates, QUILT-RAP sandwich wrap, QWIK
WAVE microwave packaging, EUREKA! recycled copy paper and WORD PRO copy
paper. In addition, the company produces a number of popular European
brands for the towel and tissue market. James River has a current
annual sales rate of $6.3 billion.
Exhibit 99(b)
News Release: Immediate Contact: Richard Elder - James River
(804) 343-4785
Mary Rhodes - CSC
(310) 615-1737
JAMES RIVER TO SIGN INFORMATION TECHNOLOGY CONTRACT WITH CSC
RICHMOND, VIRGINIA, July 31, 1995 --- James River
Corporation announced here today that it is negotiating with
Computer Sciences Corporation (CSC) of El Segundo, Calif., to
manage and enhance the company's information technology
operations. The seven-year contract, which is expected to be
completed within two weeks, will affect more than 200 people
located at James River's Richmond and Norwalk, Conn., offices,
and at its 21 North American Consumer Products Division
manufacturing units.
The companies are currently negotiating specific assets to
be purchased and information technology assets to be managed.
The contract calls for a transition period for moving personnel
and equipment beginning Sept. 1, with all exchanges finalized by
the end of 1995.
As part of the CSC contract, all James River employees who
presently work in information technology will be offered
positions with CSC.
"Contracting with CSC will greatly benefit James River's
consumer products operations by allowing us to develop new
systems at a greater rate, and more cost-effectively. This
outsourcing will free management to focus on manufacturing and
marketing opportunities, and, allow more effective decision
making with better data," said Stephen E. Hare, senior vice
president, corporate finance and chief financial officer.
"We have been studying the value and benefits to the company
of an outsourcing approach to information technology ("I.T.") for
some time," Hare said. "We believe that outsourcing will provide
an impetus for major change in our overall business approach to
I.T. and increased productivity from our investment in
information resources. With the expanded depth of capabilities
provided by CSC, overall delivery should be enhanced."
Computer Sciences Corporation had $3.6 billion in annual
revenues for the 12 months ended June 30, 1995. The company,
headquartered in El Segundo, Calif., has 33,000 employees in 575
offices worldwide. CSC provides clients with a wide range of
professional services, including management consulting, business
reengineering, information systems consulting and integration,
and outsourcing.
James River Corporation, headquartered in Richmond, Va., is
a leading manufacturer and marketer of consumer products, food
and consumer packaging and communications papers. These product
lines include leading brands such as QUILTED NORTHERN bathroom
tissue, BRAWNY paper towels, DIXIE cups and plates, QUILT-RAP
sandwich wrap, QWIK WAVE microwave packaging, EUREKA! recycled
copy paper and WORD PRO copy paper. In addition, the company
produces a number of popular European brands for the towel and
tissue market. James River has a current annual sales rate of
$6.3 billion.
Today's news release, along with past releases from James River,
is available by fax, at no charge, by calling PR Newswire's
Company News On Call at (800) 758-5804, ext. 457350
