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[INTERNATIONAL PAPER LOGO]
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INTERNATIONAL PAPER PLAZA
400 ATLANTIC STREET
STAMFORD, CT 06921
News Release
Media Contacts: Jennifer Boardman, 203-541-8407
Kathleen Bark, 203-541-8418
Investor Contacts: Darial Sneed, 203-541-8541
Brian Turcotte, 203-541-8632
International Paper Reports Higher Third-Quarter Earnings from
Continuing Operations
o Earnings from continuing operations of $208 million up 84 percent from $113
million in the 2003 third quarter.
o Net sales increased 8 percent to $6.6 billion from 2003 third-quarter net
sales of $6.1 billion.
Earnings Per Share Summary
Third Third Second
Quarter Quarter Quarter
2004 2003 2004
------- ------- -------
Net Earnings (Loss) $(1.13) $ 0.25 $ 0.40
Add Back - Loss (Income) from Discontinued
Operations:
Loss (gain) on sale or impairment 1.64 -- (0.19)
Earnings from operations (0.08) (0.02) (0.08)
------ ------ ------
1.56 (0.02) (0.27)
Earnings from Continuing Operations 0.43 0.23 0.13
Add back - Net Special Items Expense (Income) -- (0.01) 0.20
------ ------ ------
Earnings from Continuing Operations
And Before Special Items $ 0.43 $ 0.22 $ 0.33
STAMFORD, Conn. - October 26, 2004 - International Paper (NYSE: IP) today
reported third-quarter 2004 earnings from continuing operations of $208 million
($0.43 per share) compared with $113 million ($0.23 per share) in the third
quarter of 2003 and $62 million ($0.13 per share) in the second quarter of 2004.
Additionally, a net discontinued operation charge of $757 million was recorded
in the 2004 third quarter to reflect a $795 million write-down of the net assets
of the Weldwood of Canada, Ltd. subsidiary to their expected net realizable
value, net of Weldwood's operating earnings of $38 million for the quarter.
The write down is due to the previously announced sale of the Weldwood
subsidiary, which is expected to be completed in the fourth quarter. This
charge resulted in a net loss of $549 million ($1.13 per share) for the 2004
third quarter, compared with net earnings of $122 million ($0.25 per share) in
the third quarter of 2003 and $193 million ($0.40 per share) in the second
quarter of 2004.
The above amounts include the effects of special items in all periods. Earnings
from continuing operations and before special items in the 2004 third quarter
were $209 million ($0.43 per share), compared with $108 million ($0.22 per
share) in the third quarter of 2003 and $159 million ($0.33 per share) in the
second quarter of 2004.
Third-quarter 2004 net sales were $6.6 billion, compared with third-quarter 2003
net sales of $6.1 billion and 2004 second-quarter sales of $6.2 billion.
"Our volumes remained strong during the quarter, and price increases continued
to be implemented across most grades of paper and packaging," said John Faraci,
International Paper chairman and chief executive officer. "However this was
somewhat offset by lower wood products pricing, rising raw material costs and
the effect of the hurricanes that hit Florida and the gulf coast region
impacting sixteen of our facilities."
In the fourth quarter, the company expects demand and pricing will continue to
be solid in packaging and paper, but expects that will be offset by lower
average pricing for wood products, sharply rising raw material costs and higher
corporate expenses.
Segment Information
Operating profits of $585 million for the third quarter were up from the
second-quarter 2004 operating profits of $516 million due to higher average
price realizations and higher volumes.
Third-quarter segment operating profits and business trends compared with the
second quarter of 2004 are as follows:
Third-quarter operating profits for Printing Papers were $160 million compared
with second-quarter operating profits of $141 million as a result of higher
average pricing for uncoated free sheet and coated paper. Pulp prices were up on
average for the quarter but started to trend down as the quarter ended. Coated
paper sales volumes were seasonally higher. These improving business conditions
were somewhat offset by seasonally lower sales volumes for European papers as
well as by the impact of the hurricanes.
Industrial and Consumer Packaging operating profits were $183 million in the
third quarter, compared with $111 million in the second quarter, as a result of
higher average pricing and volumes across containerboard, corrugated boxes and
bleached board.
The company's distribution business, xpedx, reported operating profits of $27
million for the third quarter compared with operating profits in the second
quarter of $21 million, due to improved sales and reduced operating costs.
Third-quarter Forest Products operating profits were $191 million, compared with
earnings of $222 million in the second quarter primarily as a result of lower
average pricing for lumber and plywood. Gains from land sales were flat with
second quarter.
Operating profits at Carter Holt Harvey, International Paper's 50.5 percent
owned subsidiary in New Zealand, were $17 million in the third quarter, compared
with second-quarter operating profits of $7 million as a result of improved
operations and the absence of a special charge for the sale of a Chilean
packaging operation that was recorded in the second quarter.
Net corporate expenses of $101 million in the 2004 third quarter were
essentially unchanged from $102 million in the 2004 second-quarter, but were
lower than net expenses of $138 million in the third quarter of 2003 reflecting
lower overhead and benefit related costs.
Discontinued Operations
During the 2004 third quarter, the company reached agreement to sell its
Weldwood of Canada, Ltd. (Weldwood) business for approximately C$1.26 billion in
cash, subject to certain adjustments at closing, expected to be completed in the
2004 fourth quarter. Accordingly, a $795 million after tax discontinued
operations charge was recorded in the third quarter to write down the assets of
Weldwood to their estimated net realizable value upon sale. Discontinued
operations for the 2004 second quarter includes a net gain of $90 million after
taxes and minority interest relating to the sale of the Carter Holt Harvey
tissue business. Furthermore, all periods presented have been restated to
present the operating results of Weldwood and the tissue business as
discontinued operations.
Effects of Special Items
Special items in the 2004 third quarter included a charge of $55 million before
taxes and minority interest ($31 million after taxes and minority interest) for
restructuring and other costs, a pre-tax credit of $103 million ($64 million
after taxes) for insurance recoveries related to the hardboard siding and
roofing litigation, a charge of $38 million for estimated losses on sales and
impairments of businesses held for sale and a $6 million credit ($4 million
after taxes) for the net reversal of restructuring and realignment reserves no
longer required. The $55 million charge for restructuring and other costs
included $18 million ($11 million after taxes and minority interest) for
organizational restructuring programs, a $29 million goodwill impairment charge
($15 million after minority interest), and $8 million charge ($5 million after
taxes) for losses on early extinguishment of debt. The net after-tax effect of
all of these special items was $0.00 per share.
Special items in the 2004 second quarter included a charge of $107 million
before taxes and minority interest ($63 million after taxes and minority
interest) for restructuring and other costs, a charge of $36 million before
taxes and minority interest ($32 million after taxes and minority interest) for
estimated losses on sales and impairments of businesses held for sale and a $5
million credit ($3 million after taxes and minority interest) for the net
reversal of restructuring and realignment reserves no longer required. In
addition, a $5 million net increase in the tax provision, after minority
interest, was recorded in the quarter reflecting a charge for an adjustment of
deferred tax balances and a credit from the reduction of valuation reserves for
capital loss carryovers. The $107 million charge for restructuring and other
costs included $42 million ($23 million after taxes and minority interest) for
organizational restructuring programs and $65 million ($40 million after taxes)
for losses on early extinguishment of debt. The $36 million charge for estimated
losses on sales and impairments of businesses held for sale included $4 million
before taxes recorded in the Packaging segment and $3 million before taxes
recorded in the Carter Holt Harvey segment for the estimated loss on the sale of
Food Pack S.A. in Chile. The net after-tax effect of all of these special items
was an expense of $0.20 per share.
Special items in the 2003 third quarter included a pre-tax charge of $93 million
($59 million after taxes), including $33 million for facility closure costs, $38
million for severance costs associated with organizational restructuring
programs, $8 million for early debt retirement costs, and $14 million for
additional legal reserves; a pre-tax charge of $1 million ($1 million after
taxes) to adjust costs of businesses previously sold; and a pre-tax credit of $8
million ($5 million after taxes) for the reversal of restructuring and
realignment reserves no longer required. In addition, a decrease in the income
tax provision of $60 million was recorded reflecting a favorable revision of
estimated tax reserves upon filing of the 2002 Federal income tax return and
increased research and development credits. The net after-tax effect of these
special items was an increase of $0.01 per share.
The company will hold a webcast to discuss earnings and current market
conditions at 10 a.m. (EDT) today. All interested parties are invited to listen
to the webcast live via the company's Internet site at
http://www.internationalpaper.com by clicking on the Investor Information
button. A replay of the webcast will also be available on the Web site beginning
at noon today.
International Paper (http://www.internationalpaper.com) is the world's largest
paper and forest products company. Businesses include paper, packaging, and
forest products. As one of the largest private forest landowners in the world,
the company manages its forests under the principles of the Sustainable Forestry
Initiative'r' program, a system that ensures the continual planting, growing and
harvesting of trees while protecting wildlife, plants, soil, air and water
quality. Headquartered in the United States, International Paper has operations
in over 40 countries and sells its products in more than 120 nations.
# # #
Statements in this press release that are not historical are forward-looking.
These statements are subject to risks and uncertainties that could cause actual
results to differ materially, including but not limited to, the strength of
demand for the company's products and changes in overall demand, the effects of
competition from foreign and domestic producers, the level of housing starts,
changes in the cost or availability of raw materials, unanticipated expenditures
related to the cost of compliance with environmental and other governmental
regulations, the ability of the
company to continue to realize anticipated cost savings, performance of the
company's manufacturing operations, results of legal proceedings, changes
related to international economic conditions, changes in currency exchange
rates, particularly the relative value of the U.S. dollar to the Euro, economic
conditions in developing countries, specifically Brazil and Russia, the current
military action in Iraq and the war on terrorism. We undertake no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future events or otherwise. These and other factors that could
cause or contribute to actual results differing materially from such forward
looking statements are discussed in greater detail in the company's Securities
and Exchange Commission filings.
International Paper
Summary of Consolidated Earnings
Preliminary and Unaudited
(In millions except for net sales and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------------
2004 2003 2004 2003
------ ----- ------- ------
Net Sales (In billions) $ 6.6 $ 6.1 $ 18.9 $ 17.8
------ ----- ------- ------
Earnings From Continuing Operations Before
Interest, Income Taxes, and Minority Interest 520(a) 269(f) 1,106(d) 870(i)
Interest expense, net 188 204(g) 568 585(g)
------ ----- ------- ------
Earnings From Continuing Operations Before
Income Taxes and Minority Interest 332(a) 65(f) 538(d) 285(i)
Income tax provision (benefit) 122(a) (66)(f,h) 168(d) (64)(i,j)
Minority interest expense, net of taxes 2(a) 18(f,g) 49(d) 90(g,i)
------ ----- ------- ------
Earnings From Continuing Operations 208(a) 113(f,h) 321(c,d) 259(i,j)
Discontinued Operation, net of taxes and minority
interest (757)(b) 9 (604)(b,e) 5
Cumulative Effect of Accounting Change -
Asset Retirement Obligations (SFAS 143), net of
taxes -- -- -- (10)(k)
------ ----- ------- ------
Net Earnings $ (549)(a,b) $ 122(f,h) $ (283)(b,c,d,e) $ 254(i,j,k)
====== ===== ======= ======
Earnings Per Common Share From Continuing
Operations $ 0.43(a) $0.23(f,h) $ 0.66(c,d) $ 0.54(i,j)
Discontinued Operation, net of taxes and minority
interest (1.56)(b) 0.02 (1.24)(b,e) 0.01
Cumulative Effect of Accounting Change -
Asset Retirement Obligations (SFAS 143), net of
taxes -- -- -- (0.02)(k)
------ ----- ------- ------
Earnings Per Common Share $(1.13)(a,b) $0.25(f,h) $ (0.58)(b,c,d,e) $ 0.53(i,j,k)
====== ===== ======= ======
Earnings Per Common Share -
Assuming Dilution $(1.13)(a,b) $0.25(f,h) ($0.58)(b,c,d,e) $ 0.53(i,j,k)
====== ===== ======= ======
Average Shares of Common Stock Outstanding 486.4 479.8 485.5 479.3
====== ===== ======= ======
(a) Includes a $55 million charge before taxes and minority interest ($31
million after taxes and minority interest) for organizational restructuring
programs and losses on early debt extinguishment; a credit of $103 million
($64 million after taxes) for insurance recoveries related to the hardboard
siding and roofing litigation; a $38 million before and after tax charge
for estimated losses on sales of businesses; and a credit of $6 million
before taxes and minority interest ($4 million after taxes and minority
interest) for the reversal of restructuring and realignment reserves no
longer required
(b) Includes a $795 million after-tax charge ($1.64 per share) to write down
the net assets of Weldwood of Canada, Ltd. to their estimated net
realizable value, less $38 million ($0.08 per share) of net earnings of
Weldwood for the quarter.
(c) Includes a $5 million net increase, net of minority interest, in the income
tax provision reflecting an adjustment of deferred tax balances and a
reduction of valuation reserves for capital loss carryovers.
(d) Includes a $192 million charge before taxes and minority interest ($113
million after taxes and minority interest) for organizational restructuring
programs and losses on early debt extinguishment; a pretax credit of $103
million ($64 million after taxes) for insurance recoveries related to the
hardboard siding and roofing litigation; a charge of $65 million before
taxes and minority interest ($64 million after taxes and minority interest)
for estimated gains/losses of businesses sold or held for sale; and a
credit of $18 million before taxes and minority interest ($11 million after
taxes and minority interest) for the net reversal of restructuring and
realignment reserves no longer required.
(e) Includes the net income of the Carter Holt Harvey tissue business prior to
the sale and the gain on the sale of $267 million ($90 million after taxes
and minority interest) in the second quarter of 2004.
(f) Includes a $93 million charge before taxes and minority interest ($59
million after taxes and minority interest) for facility closures and
organizational restructuring programs, net losses on early debt
extinguishment, and additional legal reserves; a pre-tax charge of $1
million ($1 million after taxes) to adjust accrued costs of businesses
sold; and a credit of $8 million before taxes and minority interest ($5
million after taxes and minority interest) for the net reversal of
restructuring and realignment reserves no longer required.
(g) Includes the effect of $22 million of interest on mandatorily redeemable
preferred securities reclassified from minority interest expense as
required under SFAS No. 150.
(h) Includes a decrease of $60 million in the income tax provision reflecting a
favorable revision of estimated tax reserves upon filing of the 2002
Federal income tax return, and a $15 million adjustment to reduce the
estimated full year effective tax rate, excluding special and unusual
items, to 25% from the second quarter estimate of $28%.
(i) Includes a $197 million charge before taxes and minority interest ($123
million after taxes and minority interest) for facility closures and
organizational restructuring programs, early debt extinguishment losses,
and additional legal reserves; a pre-tax charge of $11 million ($7 million
after taxes) to adjust accrued costs of businesses sold; and a credit of
$17 million before taxes and minority interest ($10 million after taxes and
minority interest) for the net reversal of restructuring and realignment
reserves no longer required.
(j) Includes decreases of $110 million in the income tax provision reflecting a
revision of estimated tax reserves upon filing of the 2002 Federal income
tax return and settlements of prior period tax issues.
(k) Includes a $15 million charge before taxes ($10 million after taxes) for
the adoption of SFAS No. 143, "Asset Retirement Obligations".
International Paper
Reconciliation of Earnings Before
Special Items to Net Earnings (Loss)
Preliminary and Unaudited
(In millions except for per share amounts)
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
------------------ -----------------
2004 2003 2004 2003
-------- ------- ------- -------
Earnings Before Special Items (1) $ 209 $ 108 $ 428 $ 269
Restructuring and other charges (31) (59) (113) (123)
Insurance recoveries 64 64
Reversal of reserves no longer required 4 5 11 10
Net gains (losses) on sales and impairments
of businesses held for sale (38) (1) (64) (7)
Income tax adjustment -- 60 (5) 110
Discontinued Operation (757) 9 (604) 5
Cumulative effect of change in accounting -- -- -- (10)
----- ----- ----- -----
Net Earnings (Loss) as Reported $(549) $ 122 $(283) $ 254
===== ===== ===== =====
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
------------------ -----------------
2004 2003 2004 2003
-------- ------- ------- -------
Earnings Per Common Share Before Special
Items (1) $ 0.43 $ 0.22 $ 0.88 $ 0.56
Restructuring and other charges (0.06) (0.13) (0.23) (0.26)
Insurance recoveries 0.13 -- 0.13 --
Reversal of reserves no longer required 0.01 0.01 0.02 0.02
Net gains (losses) on sales and impairments
of businesses held for sale (0.08) -- (0.13) (0.01)
Income tax adjustment -- 0.13 (0.01) 0.23
Discontinued Operation (1.56) 0.02 (1.24) 0.01
Cumulative effect of change in accounting -- -- -- (0.02)
------ ------ ------ -----
Earnings (Loss) Per Common Share as
Reported $(1.13) $ 0.25 $(0.58) $0.53
====== ====== ====== =====
(1) The company calculates Earnings Before Special Items by excluding the
after-tax effect of the adoption of new accounting standards and items
considered by management to be unusual from the net earnings (loss)
reported under generally accepted accounting principles ("GAAP").
Management uses this measure to focus on on-going operations, and believes
that it is useful to investors because it enables them to perform
meaningful comparisons of past and present operating results. International
Paper believes that using this information along with net earnings (loss)
provides for a more complete analysis of the results of operations by
quarter. Net earnings (loss) is the most directly comparable GAAP measure.
International Paper
Sales and Earnings by Industry Segment
Preliminary and Unaudited
(In Millions)
Sales by Industry Segment
Three Months Three Months Three Months Nine Months
Ended Ended Ended Ended
March 31, June 30, Sept 30, Sept 30,
---------------- ---------------- ---------------- -----------------
2004 2003(1) 2004 2003(1) 2004 2003(1) 2004 2003(1)
------ ------- ------ ------- ------ ------- ------- -------
Printing Papers $1,890 $1,810 $1,850 $1,795 $1,920 $1,840 $ 5,660 $ 5,445
Industrial and Consumer Packaging 1,700 1,620 1,775 1,680 2,005 1,655 5,480 4,955
Distribution 1,465 1,430 1,485 1,475 1,565 1,485 4,515 4,390
Forest Products 600 540 625 580 600 630 1,825 1,750
Carter Holt Harvey 515 405 525 420 565 480 1,605 1,305
Other Businesses (2) 295 345 290 335 275 280 860 960
Less: Intersegment Sales (327) (347) (321) (320) (352) (317) (1,000) (984)
------ ------ ------ ------ ------ ------ ------- -------
$6,138 $5,803 $6,229 $5,965 $6,578 $6,053 $18,945 $17,821
====== ====== ====== ====== ====== ====== ======= =======
Earnings by Industry Segment
Three Months Three Months Three Months Nine Months
Ended Ended Ended Ended
March 31, June 30, Sept 30, Sept 30,
--------------- ----------------- ---------------- -------------------
2004 2003(1) 2004 2003(1) 2004 2003(1) 2004 2003(1)
----- ------- ----- ------- ------ ------- ------ -------
Printing Papers $ 82 $ 127 $ 141 $ 150 $ 160 $ 118 $ 383 $ 395
Industrial and Consumer Packaging 79 98 111 (3) 126 183 116 373 (3) 340
Distribution 17 15 21 23 27 24 65 62
Forest Products 204 159 222 149 191 194 617 502
Carter Holt Harvey 11 12 7 (3) 4 17 14 35 (3) 30
Other Businesses (2) 10 (1) 14 5 7 10 31 14
----- ----- ----- ----- ----- ----- ------ ------
Operating Profit 403 410 516 457 585 476 1,504 1,343
Interest expense, net (196) (185) (184) (196) (188) (204) (568) (585)
Minority interest (4) 13 14 9 (3) 9 20 17 42 (3) 40
Corporate items, net (110) (88) (102) (96) (101) (138) (313) (322)
Restructuring and other charges (30) (23) (107) (81) (55) (93) (192) (197)
Insurance Recoveries -- -- -- -- 103 -- 103 --
Net gains (losses) on sales and
impairments of businesses held
for sale 9 -- (27) (10) (38) (1) (56) (11)
Reversal of reserves no longer
required 7 -- 5 9 6 8 18 17
----- ----- ----- ----- ----- ----- ------ ------
Earnings from continuing
operations before income taxes
and minority interest $ 96 $ 128 $ 110 $ 92 $ 332 $ 65 $ 538 $ 285
===== ===== ===== ===== ===== ===== ====== ======
(1) Prior-year industry segment information has been restated to conform to the
2004 management structure and to reflect Weldwood of Canada, Ltd. and the
Carter Holt Harvey tissue business as discontinued operations.
(2) Included Arizona Chemical, Chemical Cellulose Pulp (closed in 2003) and
businesses identified in our divestiture program.
(3) Includes a 2004 second quarter estimated loss on the sale of Food Pack S.A.
of $9 million before taxes, of which $4 million is in the Packaging
segment, $3 million is in the Carter Holt Harvey segment and $2 million is
in Minority interest.
(4) Operating profits for industry segments include each segment's percentage
share of the profits of subsidiaries included in that segment that are less
than wholly owned. The pre-tax minority interest for these subsidiaries is
added here to present consolidated earnings before income taxes, minority
interest, extraordinary items, and cumulative effect of accounting changes.
International Paper
Supplemental Financial Data
Preliminary and Unaudited
Financial Data (In millions)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2004 2003 2004 2003
---- ---- ------ ------
Depreciation, amortization and cost of
timber harvested $401 $388 $1,154 $1,148
==== ==== ====== ======
Investment in capital projects (1) $250 $276 $ 812 $ 703
==== ==== ====== ======
(1) Includes $6 million and $20 million of spending for businesses held for
sale for the three months and nine months ended September 30, 2004,
respectively. Includes $9 million and $28 million of spending for
businesses held for sale for the three months and nine months ended
September 30, 2003, respectively.
International Paper
Sales Volumes by Product (1) (2)
Preliminary and Unaudited
International Paper Consolidated (excluding Carter Holt Harvey)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2004 2003 2004 2003
----- ----- ----- -----
Printing Papers (In thousands of short tons)
Uncoated Papers and Bristols 1,585 1,572 4,836 4,675
Coated Papers 574 575 1,641 1,581
Market Pulp 309 337 1,048 998
Packaging (In thousands of short tons)
Containerboard 556 460 1,629 1,442
Bleached Packaging Board 378 340 1,128 997
Kraft 170 148 468 455
Industrial and Consumer Packaging 1,322 1,103 3,628 3,271
Forest Products (In millions)
Panels (sq. ft. 3/8" - basis) 411 427 1,201 1,205
Lumber (board feet) 644 616 1,850 1,756
Particleboard (sq. ft. 3/4" - basis) -- -- -- --
Carter Holt Harvey (3)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2004 2003 2004 2003
---- ---- ---- ----
Printing Papers (In thousands of short tons)
Market Pulp 134 130 411 344
Packaging (In thousands of short tons)
Containerboard 102 100 336 254
Bleached Packaging Board 21 21 59 65
Industrial and Consumer Packaging 32 34 113 115
Forest Products (In millions)
Panels (sq. ft. 3/8" - basis) 49 47 140 135
Lumber (board feet) 126 132 378 375
MDF and Particleboard (sq. ft. 3/4" - basis) 156 155 438 441
(1) Includes third party and inter-segment sales.
(2) Sales volumes for divested businesses are included through the date of sale
except for discontinued operations.
(3) Includes 100 percent of volumes sold.
INTERNATIONAL PAPER COMPANY
Consolidated Balance Sheet
Preliminary and Unaudited
(In Millions)
September 30, December 31,
2004 2003
------------- ------------
Assets
Current Assets
Cash and temporary investments $ 1,828 $ 2,363
Accounts and notes receivable, net 3,239 2,765
Inventories 2,730 2,767
Assets of businesses held for sale 881 2,104
Other current assets 867 1,097
------- -------
Total Current Assets 9,545 11,096
------- -------
Plants, Properties and Equipment, net 13,182 13,260
Forestlands 3,906 3,979
Investments 671 678
Goodwill 5,030 4,793
Deferred Charges and Other Assets 1,820 1,719
------- -------
Total Assets $34,154 $35,525
======= =======
Liabilities and Common Shareholders' Equity
Current Liabilities
Notes payable and current maturities of long-term debt $ 615 $ 2,087
Liabilities of businesses held for sale 428 645
Accounts payable and accrued liabilities 4,500 4,538
------- -------
Total Current Liabilities 5,543 7,270
------- -------
Long-Term Debt 14,434 13,450
Deferred Income Taxes 1,251 1,387
Other Liabilities 3,553 3,559
Minority Interest 1,599 1,622
Common Shareholders' Equity
Invested capital 5,339 5,155
Retained earnings 2,435 3,082
------- -------
Total Common Shareholders' Equity 7,774 8,237
------- -------
Total Liabilities and Common Shareholders' Equity $34,154 $35,525
======= =======
Note: December 31, 2003 balances have been restated to reflect the assets and
liabilities of the Carter Holt Harvey tissue business and Weldwood of Canada as
businesses held for sale.