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 Event Reported: December 15, 1998
Date of Report: December 16, 1998
Boise Cascade Office Products Corporation
State of Commission IRS Employer
Incorporation File Number Identification No.
Delaware 1-13662 82-0477390
800 West Bryn Mawr Avenue
Itasca, Illinois 60143
(630) 773 - 5000
ITEM 5. OTHER EVENTS.
On December 15, 1998, Boise Cascade Office Products
Corporation issued a news release announcing a
restructuring of its contract stationer operations in
the United Kingdom and the dissolution of its joint
venture with Otto Versand. In connection with this
restructuring and dissolution of the joint venture, the
Company will incur charges of approximately $11 million
to operating income, which includes $1 million of
inventory write-down, 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 OFFICE PRODUCTS CORPORATION
/s/ Darrell R. Elfeldt
Darrell R. Elfeldt
Vice President and Controller
Date: December 16, 1998
Exhibit Index
Exhibit No. Description Page
99 News Release Issued by the Company
on December 15, 1998.
The following was issued by Boise Cascade Office Products
Corporation.
FOR IMMEDIATE RELEASE: December 15, 1998
BOISE CASCADE OFFICE PRODUCTS ANNOUNCES
RESTRUCTURING IN CERTAIN OF ITS EUROPEAN OPERATIONS
Itasca, Illinois - Boise Cascade Office Products (NYSE: BOP)
announced today a restructuring plan for certain of its European
operations. In connection with this restructuring, the Company
will incur charges of approximately $11 million to operating
income, which includes $1 million of inventory write-down, in the
fourth quarter of 1998.
Chris Milliken, President and Chief Executive Officer stated:
"The majority of our operations in Europe continue to be highly
successful. Jean-Paul Guisset S.A. (JPG), our direct marketing
operation in France and our largest European subsidiary, has
performed extremely well. Also, the results of our 1998 direct
marketing acquisition in Spain and our 1998 direct marketing
entry into Belgium are on track and the early signs are very
encouraging. Due to the recent management changes and logistical
improvements, our French contract stationer business is making
excellent progress toward achieving our plan. However, our
operating results in Germany and in our contract stationer
operations in the United Kingdom have not met our expectations
and necessitate the actions we are announcing today."
In Germany, the Company has operated a direct marketing joint
venture with Otto Versand since January 1997. The Company and
Otto Versand have amicably dissolved that joint venture. Otto
Versand purchased Boise Cascade Office Products' 50 percent
interest in the joint venture. In addition, the Company
repurchased Otto Versand's 10 percent interest in JPG. JPG is
now a wholly-owned subsidiary of Boise Cascade Office Products.
In the United Kingdom, the Company has contract stationer and
direct marketing operations. The Company's restructuring effort
in the United Kingdom will entail closing seven small and less
productive contract stationer facilities, thereby consolidating
the contract stationer operations, and integrating selected
functions of the contract stationer operations with the direct
marketing operations. The Company also plans to install a new
order-management system with cross-border capabilities. "These
actions will allow BOP to significantly reduce its cost structure
and create an efficient and integrated business model in the
United Kingdom," said Rick Black, Senior Vice President of
Reliable and Europe. "Furthermore, establishing a flexible
order-management system will provide a platform for future
integration of our cross-border European contract and direct
marketing operations."
"We have successfully integrated our profitable and growing
contract stationer and direct marketing operations in the United
States," stated Chris Milliken. "This successful business model
can be leveraged to develop an effective foundation for a solid
European business. We remain committed to servicing local and
multi-national accounts through both direct marketing and
contract stationer channels in Europe."
The restructuring actions, as outlined above, are expected to
provide approximately $4 million in operating income improvement
from 1998 to 1999. The approximate $11 million charge to
operating income will, after tax considerations, result in an
$0.11 per share reduction in reported earnings for the fourth
quarter of 1998.
Before the restructuring charge, the Company increased its
estimated 1998 tax rate from 43% to 43.5%, retroactively, due to
the shift in income among its European operations. After
restructuring, the 1998 estimated tax rate will be further
increased to 44.75%. The restructuring charge affects the tax
rate because a significant portion of the charge is incurred in
the United Kingdom, which has a lower relative tax rate.
Boise Cascade Office Products Corporation, headquartered in
Itasca, Illinois, is one of the world's premier business-to-
business distributors of office products, with operations in
Australia, Belgium, Canada, France, Spain, the United Kingdom,
and the United States.
This press release includes "forward-looking statements" which
involve uncertainties and risks. There can be no assurance that
actual results will not differ from the company's expectations.
Factors which could cause such differences include the Company's
ability to implement its operating strategies and integration
plans and realize cost savings and efficiencies, fluctuations in
foreign currency exchange rates, competitive and general economic
conditions, and other risks set forth in the company's filings
with the Securities and Exchange Commission. The Company's
current estimates of restructuring charges are based on
preliminary information. Final reported results might differ
from current expectations, based upon additional information and
a further review of information received to date.
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