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EXHIBIT 99
GEORGIA-PACIFIC [Georgia-Pacific Logo]
133 Peachtree Street Northeast
Atlanta, Georgia 30303
(404) 652-4000
NEWS FROM GEORGIA-PACIFIC
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Release No. C-1330
Contact: Sheila Weidman
(404) 652-4732
Ken Haldin
(404) 652-6098
May 7, 1996
GEORGIA-PACIFIC'S CHAIRMAN ANNOUNCES COST REDUCTION TARGET
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AT SHAREHOLDERS' MEETING; BOARD DECLARES DIVIDEND
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AUGUSTA, Ga. -- At today's annual meeting of shareholders, Georgia-Pacific
Corp.'s Chairman and CEO A.D. "Pete" Correll told shareholders that the
company has set a goal of improving its annual pretax earnings by approximately
$400 million with a three-year effort to reduce overhead costs and improve
efficiencies throughout the company.
The company announced a voluntary early retirement program, effective May
20 to July 8, 1996, for salaried employees who are at least 55 years old and
have 10 years of service or who have reached age 65. This program will not be
offered to officers, nonsupervisory employees eligible for salaried benefits
who work directly in the manufacture or delivery of company products or
maintenance of equipment, or employees of the company's Distribution Division,
its Hattiesburg, Miss., machinery operation, and Buchanan, N.Y., and
Wilmington, Del., gypsum plants.
During 1996 and 1997, Georgia-Pacific also plans to eliminate work and
related salaried positions, and substantially reduce other administrative and
overhead costs. Georgia-Pacific expects to record a charge to its second
quarter earnings for certain costs of these retirement, position elimination
and cost reduction measures.
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"We are committed to operating a low-cost business and to creating value
for our shareholders," Correll said. "We believe the goal we have set is
achievable. During 1995 and 1996 we will have invested more than $2 billion
to improve our manufacturing processes and make our operations among the most
efficient in our industry. We also have expanded production capacity in
several important product lines such as recycled containerboard, oriented
strand board, tissue, lumber and particleboard," he said. "In addition, we
have committed substantial investments to re-engineer our building products
Distribution Division and to install the information systems that we need to
operate more efficiently. When completed, these investments will generate
significant efficiencies and cost savings throughout our businesses.
"In the meantime, we must begin by reducing other costs. The program
announced today will begin a three-year process to lower our overhead costs,
secure efficiency improvements and make Georgia-Pacific a stronger company
that is better equipped to compete in today's global market. We expect to
see the first meaningful results during 1997," Correll concluded.
In other action, Georgia-Pacific's board of directors, meeting in
conjunction with the company's shareholders meeting, declared a regular
quarterly dividend of 50 cents per share payable June 13, 1996 to
shareholders of record May 24, 1996.
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Except for the historical information contained herein, the foregoing
statements are forward-looking statements, the accuracy of which is
subject to a number of risks and assumptions. Among the key factors
that could cause actual results to differ materially are the following:
continuation of present business conditions, the acceptance of voluntary
retirement by a significant percentage of eligible employees, the
ability of Georgia-Pacific managers to eliminate many functions and
associated positions that currently are part of the company's overhead,
and the realization of projected savings from numerous investments in
systems, operations and cost reduction programs.