>Date: Mon, 2 Feb 1998 20:10:06 -0800 (PST)
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>From: Mark Bult <mark@enews.org>
>Subject: NEWS: Maxxam improved quarter results
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> MAXXAM Reports Improved Results for Fourth Quarter, Full Year of 1997
> Tuesday, January 27 7:52 AM ET
>
>HOUSTON (BUSINESS WIRE) - MAXXAM Inc. (ASE:MXM) today reported net income
>of $14.6 million, or $1.67 per share(1), for the fourth quarter of 1997,
>compared to a net loss of $5.1 million, or $0.59 per share, for the fourth
>quarter of 1996. Net sales for the fourth quarter of 1997 totaled $682.4
>million, up from $622.2 million in the same period of 1996.
>
>MAXXAM's net income for the quarter reflected substantially improved
>performance by aluminum operations, its largest business sector.
>
>For the full year 1997, MAXXAM's net income was $65.2 million, or $7.14 per
>share, up from $22.9 million, or $2.42 per share, for 1996. Net sales for
>1997 were $2,729.1 million, up from $2,543.3 million for 1996.
>
>Operating income was $60.8 million for the fourth quarter and $236.4
>million for the full year of 1997, up from $22.5 million and $131.3 million
>for the comparable periods of 1996.
>
>MAXXAM operates primarily in three areas: aluminum, forest products, and
>real estate.
>
>ALUMINUM OPERATIONS
>
>Aluminum operations reported operating income of $48.4 million for the
>fourth quarter and $174.0 million for the full year of 1997, up from
>operating income of $11.8 million and $103.7 million for the same periods
>of 1996. Net sales were $594.6 million in the fourth quarter and $2,373.2
>million for the full year of 1997, up from $538.4 million and $2,190.5
>million in the same periods of 1996.
>
>The significant improvement in the fourth quarter is partly due to better
>realized prices for alumina and primary aluminum and to sharply higher
>shipments of fabricated aluminum products resulting from brisk demand and
>from production at an extruded products facility that was acquired in
>mid-1997.
>
>(NOTE: A separate press release with additional details on aluminum
>operations is being released today by Kaiser Aluminum Corporation.)
>
>FOREST PRODUCTS OPERATIONS
>
>Operating income for forest products operations was $18.4 million for the
>fourth quarter and $84.9 million for the full year of 1997, compared to
>$19.5 million and $73.0 million for the same periods a year ago. Operating
>cash flow (operating income before depletion and depreciation) was $25.1
>million for the fourth quarter and $111.0 million for the full year of
>1997, compared to $26.5 million and $100.2 million for the same periods of
>1996. Net sales totaled $70.7 million for the fourth quarter and $287.2
>million for the full year of 1997, up from $65.0 million and $264.6 million
>for the same periods a year ago.
>
>Relative to the year-ago period, net sales for the 1997 fourth quarter were
>higher due to increased shipments of redwood common grade lumber and higher
>average realized prices for upper grade redwood lumber, partially offset by
>lower average realized prices for common grade Douglas fir lumber.
>
>For the full year of 1997, net sales increased primarily as a result of
>higher average realized prices and shipments for most categories of lumber.
>
>Operating income for the fourth quarter was relatively flat as compared to
>the fourth quarter of 1996. Operating income for the full year increased
>from the year-ago period principally because of the increase in net sales
>discussed above.
>
>REAL ESTATE AND OTHER OPERATIONS
>
>The company's real estate and other operations segment narrowed its
>operating losses to $3.2 million for the fourth quarter and $5.0 million
>for the full year 1997, compared to operating losses of $4.7 million and
>$12.0 million for the comparable 1996 periods. The results are due
>primarily to higher earnings from sales of real property.
>
>Net sales in the fourth quarter and full year of 1997 were $17.1 million
>and $68.7 million, respectively, compared to $18.8 million and $88.2
>million in 1996. The decreases were primarily due to lower revenues from
>resort and commercial operations, reflecting various asset dispositions
>during 1996 and the first quarter of 1997.
>
>CORPORATE
>
>As previously announced, the company may from time to time purchase shares
>of its common stock on national exchanges or in privately negotiated
>transactions.
>
>(1) "Diluted" earnings per share.
>
> (Condensed Consolidated Statement of Operations follows)
>
> MAXXAM INC. AND SUBSIDIARIES
> CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
> (In millions of dollars, except share amounts)
>
> Three Months Ended Year Ended
> December 31, December 31,
> ------------------ ---------------
> 1997 1996 1997 1996
> ------------------ ---------------
>
>Net sales $ 682.4 $ 622.2 $2,729.1 $2,543.3
>
>Costs and expenses (621.6) (599.7) (2,473.0) (2,412.0)
>
>Restructuring of aluminum
> operations --- --- (19.7) ---
>
>Operating income 60.8 22.5 236.4 131.3
>
>Other income (expense):
>
>Investment, interest and other
> income 19.2 6.0 49.7 41.1
>
>Interest expense (53.3) (49.0) (211.6) (184.5)
>
>Income (loss) before income
> taxes and minority interests 26.7 (20.5) 74.5 (12.1)
>
>Credit (provision) for income
> taxes (6.7) 17.8 6.9 44.9
>
>Minority interests (5.4) (2.4) (16.2) (9.9)
>
>Net income (loss) $ 14.6 $ (5.1) $ 65.2 $ 22.9
>
>Basic earnings (loss) per
> common share (1) $ 1.84 $ (.59) $ 7.81 $ 2.63
>
>Diluted earnings (loss) per
> common and common
> equivalent share (1) $ 1.67 $ (.59) $ 7.14 $ 2.42
>
>Weighted average common and
> common equivalent shares
> outstanding (in thousands):
>
>Basic 7,959 8,678 8,357 8,700
>
>Diluted 8,763 8,678 9,144 9,465
>
>(1) Beginning in the fourth quarter of 1997, SFAS No. 128, "Earnings
> Per Share," requires disclosure of "basic" and "diluted" earnings
> per share for the current and prior periods in lieu of "primary"
> and "fully diluted" earnings per share, respectively. While
> "diluted" earnings per share for the company is substantially the
> same as "fully diluted" earnings per share, "basic" earnings per
> share for the company excludes the impact of the convertible
> preferred shares from the weighted shares outstanding used in the
> computation whereas "primary" earnings per share includes such
> impact.
>
>
>Contact: MAXXAM Inc., Houston Robert W. Irelan, 713/267-3722
>
>---------------------------------------------------------------------------
>Current quote
> MXM 45 5/8 0 (0.00%)
>---------------------------------------------------------------------------
>
>
>
>
>
David M. Walsh
P.O. Box 903
Redway, CA 95560
Office and Fax(707) 923-3015
Home (707) 986-1644


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