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Georgia-Pacific 2Q Income $87M

July 18, 2002

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NEW YORK (AP) _ Georgia-Pacific Corp. said Thursday that its second-quarter net income leaped to $87 million, or 38 cents a share, helped by consumer products.

That was up from $29 million, or 13 cents a share, a year earlier.

The latest results included severance and business-separation costs of $17 million, or seven cents a share.

Excluding items, income was $104 million, or 45 cents a share, a penny a share better than the Thomson First Call average of analysts’ estimates.

Sales slid 5.8 percent to $6.22 billion from $6.6 billion.

The consumer-products division, which includes Brawny paper towels and Northern bath tissue, reported an operating profit of $279 million, up 30 percent a year earlier.

The packaging segment reported an operating profit of $93 million, down 9.7 percent. The building products segment had an operating profit of $88 million, up 28 percent from a year earlier, which excluded goodwill amortization and a charge related to plant closures and production curtailments.

Georgia-Pacific plans to split off its consumer-products and packaging business from its wood division in an upcoming initial public offering.

Shares of the company closed at $23.88 Thursday afternoon on the New York Stock Exchange, up 63 cents, or 2.7 percent.

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