SEC Info - Champion International Corp - 10-Q

SEC Info

Home

My Interests

Help

Please Sign In

Champion International Corp · 10-Q · For 9/30/96

Filed On 11/13/96 · SEC File 1-03053 · Accession Number 950130-96-4366

  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

11/13/96  Champion International Corp       10-Q        9/30/96    6:47                                     Donnelley R R & S..02/FA

Quarterly Report · Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Form 10-Q for Period Ending 9/30/96                   13     41K 
 2: EX-3.1      By-Laws of the Company                                25     55K 
 3: EX-10.1     Agreement Between Champion & Andrew C. Sigler          3     11K 
 4: EX-10.2     Agreement Between Champion & L.C. Heist                2      8K 
 5: EX-11       Calculation of Primary Earnings Per Common Share       2±     8K 
 6: EX-27       Article 5 Financial Data Schedule                      2      6K

10-Q · Form 10-Q for Period Ending 9/30/96
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (RTF, XML, et al.) Exhibits and Reports on Form 8-K Financial Statements Management's Discussion and Analysis of Financial Condition and
1	1st Page
2	Item 1. Financial Statements
6	Item 2. Management's Discussion and Analysis of Financial Condition and
11	Item 6. Exhibits and Reports on Form 8-K

10-Q 1st Page of 13 TOC Top Previous Next Bottom Just 1st
 Sponsored Ads...







SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C.   20549  
FORM 10-Q 

(Mark One)                                                                      

[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES              
EXCHANGE ACT OF 1934                                              

For the quarterly period ended           September 30, 1996         
                               -------------------------------------

OR  

[_]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  
SECURITIES EXCHANGE ACT OF 1934                                   

For the transition period from                     to               
                                --------------------------------------

Commission File Number                                 1-3053                   
                                --------------------------------------

Champion International Corporation  
------------------------------------------------------------------------------- 
(Exact name of registrant as specified in its charter)  

   New York                               13-1427390
------------------------------------------- ------------------------------------
       State or other jurisdiction of       (I.R.S. Employer Identification No.)
incorporation or organization                                   

One Champion Plaza, Stamford, Connecticut   06921 
------------------------------------------------------  
(Address of principal executive offices)  
(Zip Code)  

203-358-7000  
------------------------------------------------------  
(Registrant's telephone number, including area code)  

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934      
during the preceding 12 months (or for such shorter period that the registrant  
was required to file such reports), and (2) has been subject to such filing     
requirements for the past 90 days.                                              

Yes  X   No                                                                     
----    ----                                                            

Indicate the number of shares outstanding of each of the issuer's classes of    
common stock, as of the latest practicable date.                                

            Class                            Outstanding at October 31, 1996
----------------------------------             -------------------------------- 
Common stock, $.50 par value                            95,547,009          

10-Q 2nd Page of 13 TOC 1st Previous Next Bottom Just 2nd

PART I.  FINANCIAL INFORMATION  
------------------------------  

Item 1.  Financial Statements.                                                  
------------------------------                                                  

CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES 
CONSOLIDATED STATEMENT OF INCOME (unaudited)  
(in thousands, except per share)  

                                                        [Enlarge/Download Table]

                                                         Nine Months Ended                Three Months Ended       
                                                           September 30,                    September 30,          
                                                  -------------------------------  --------------------------------
                                                        1996            1995            1996             1995      
                                                  --------------- ---------------  ---------------  ---------------
                                                                                                                   
Net Sales                                        $4,448,247      $5,231,120        $1,470,481       $1,840,664     

Costs and Expenses:                                                                                                
   Cost of products sold                          3,829,869       3,885,513         1,283,000        1,297,543     
   Selling, general and administrative expenses     285,596         300,627            97,308          105,795     
   Interest and debt expenses                       162,394         172,239            54,217           57,711     
   Other (income) expense - net (Note 2)            (29,416)        (35,288)           (9,560)          (4,035)    
                                                 ----------      ----------        ----------       ----------     
Total costs and expenses                          4,248,443       4,323,091         1,424,965        1,457,014     

Income Before Income Taxes                          199,804         908,029            45,516          383,650     

Income Taxes                                         68,602         353,688            13,515          148,067     
                                                 ----------      ----------        ----------       ----------     

Net Income                                       $  131,202      $  554,341        $   32,001       $  235,583     
                                                 ==========      ==========        ==========       ==========     

Dividends on Preference Stock                           ---          13,258               ---              ---     
                                                 ==========      ==========        ==========       ==========     

Net Income Applicable to Common Stock            $  131,202      $  541,083        $   32,001       $  235,583     
                                                 ==========      ==========        ==========       ==========     

Average Number of Common Shares Outstanding          95,515          94,213            95,529           95,568     
                                                 ==========      ==========        ==========       ==========     

Earnings Per Common Share (Exhibit 11):                                                                            
   Primary                                       $     1.37      $     5.74        $      .33       $     2.47     
                                                 ==========      ==========        ==========       ==========     
   Fully Diluted                                 $     1.37      $     5.43        $      .33       $     2.44     
                                                 ==========      ==========        ==========       ==========     

   Cash dividends declared                        $     .15      $      .15        $      .05       $      .05     
                                                 ==========      ==========        ==========       ==========     

The accompanying Notes to Consolidated Financial Statements are an integral part
of this statement.  

-2- 

10-Q 3rd Page of 13 TOC 1st Previous Next Bottom Just 3rd

CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES 
CONSOLIDATED BALANCE SHEET  
(in thousands of dollars) 

                                                                [Download Table]

                                                September 30,  December 31, 
                                                     1996          1995     
                                                  (unaudited)               
                                                -------------  -------------
                                                                            
ASSETS:                                                                     

Current Assets:                                                             
  Cash and cash equivalents                      $  283,906     $  317,069  
  Short-term investments                              3,671         98,275  
  Receivables - net                                 558,503        641,291  
  Inventories                                       429,899        484,001  
  Prepaid expenses                                   33,266         24,841  
  Deferred income taxes                              72,698         75,329  
                                                 ----------     ----------  
  Total Current Assets                            1,381,943      1,640,806  
                                                 ----------     ----------  

Timber and timberlands, at cost - less cost of                              
  timber harvested                                2,260,910      2,007,685  
                                                 ----------     ----------  
Property, plant and equipment, at cost            9,163,213      8,850,519  
  Less - Accumulated Depreciation                (3,569,709)    (3,335,945) 
                                                 ----------     ----------  
                                                  5,593,504      5,514,574  
                                                 ----------     ----------  

Other assets and deferred charges                   465,441        380,237  
                                                 ----------     ----------  
   Total Assets                                  $9,701,798     $9,543,302  
                                                 ==========     ==========  

LIABILITIES AND SHAREHOLDERS' EQUITY:                                       
Current Liabilities:                                                        
  Current installments of long-term debt         $  129,660     $   77,760  
  Short-term bank borrowings                        138,042        150,067  
  Accounts payable and accrued liabilities          671,103        726,206  
  Income taxes                                        8,374        125,840  
                                                 ----------     ----------  
  Total Current Liabilities                         947,179      1,079,873  
                                                 ----------     ----------  

Long-term debt                                    2,981,578      2,828,509  
                                                 ----------     ----------  
Other liabilities                                   652,376        664,010  
                                                 ----------     ----------  
Deferred income taxes                             1,364,263      1,218,978  
                                                 ----------     ----------  
Minority interest in subsidiaries (Note 3)            4,168        105,241  
                                                 ----------     ----------  

Shareholders' Equity:                                                       
  Capital Shares:                                                           
   Common (110,312,191and 110,230,379                                       
    shares issued at September 30, 1996                                     
    and December 31, 1995, respectively)             55,156         55,115  
   Capital Surplus                                1,649,880      1,653,456  
  Retained Earnings                               2,734,883      2,618,033  
                                                 ----------     ----------  
                                                  4,439,919      4,326,604  
                                                 ----------     ----------  
  Treasury shares, at cost                         (657,864)      (650,049) 
  Cumulative translation adjustment                 (29,821)       (29,864) 
                                                 ----------     ----------  
  Total Shareholders' Equity                      3,752,234      3,646,691  
                                                 ----------     ----------  
   Total Liabilities and Shareholders' Equity    $9,701,798     $9,543,302  
                                                 ==========     ==========  

The accompanying Notes to Consolidated Financial Statements are an integral 
part of this statement. 

-3- 

10-Q 4th Page of 13 TOC 1st Previous Next Bottom Just 4th

CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES 
CONSOLIDATED CASH FLOWS (unaudited) 
(in thousands of dollars) 

                                                        [Enlarge/Download Table]

                                                             Nine Months Ended        
                                                                September 30,         
                                                         ---------------------------- 
                                                            1996              1995    
                                                         ----------        ---------- 
                                                                                      
Cash flows from operating activities:                                                 
Net income                                               $  131,202        $  554,341 

Adjustments to reconcile net income to net cash                                       
   provided by operations:                                                            
   Depreciation expense                                     302,818           292,267 
   Cost of timber harvested                                  68,069            59,234 
   Net gain on sale of assets                               (16,547)          (45,863)
   (Increase) decrease in receivables                        83,826          (132,363)
   (Increase) decrease in inventories                       (10,934)           (6,012)
   (Increase) decrease in prepaid expenses                   (9,849)          (13,606)
   Increase (decrease) in accounts payable and                                        
    accrued liabilities                                     (69,947)           78,777 
   Increase (decrease) in income taxes                     (117,270)           75,509 
   Increase (decrease) in other liabilities                 (41,889)             (234)
   Increase (decrease) in deferred income taxes              17,422           120,133 
   All other - net                                            8,750            65,024 
                                                         ----------        ---------- 
Net cash provided by operating activities                   345,651         1,047,207 
                                                         ----------        ---------- 

Cash flows from investing activities:                                                 
   Expenditures for property, plant and equipment          (308,872)         (239,723)
   Timber and timberlands expenditures                      (91,607)         (184,119)
   Acquisition of timber subsidiary (Note 4)                (71,990)              --- 
   Proceeds from redemption of investments                   94,604               --- 
   Proceeds from sales of property, plant and equipment                               
    and timber and timberlands                               33,406           172,613 
   All other - net                                            8,138           (11,328)
                                                         ----------        ---------- 
Net cash used in investing activities                      (336,321)         (262,557)
                                                         ----------        ---------- 

Cash flows from financing activities:                                                 
   Proceeds from issuance of long-term debt                 812,135           495,635 
   Payments of current installments of long-term debt                                 
    and long-term debt                                     (646,315)         (541,848)
   Purchase of Weldwood minority interest (Note 3)         (189,533)              --- 
   Cash dividends paid                                      (14,371)          (27,289)
   Payments to acquire treasury stock                        (7,815)         (496,530)
   All other - net                                            3,406            37,542 
                                                         ----------        ---------- 
Net cash used in financing activities                       (42,493)         (532,490)
                                                         ----------        ---------- 

Increase (decrease) in cash and cash equivalents            (33,163)          252,160 

Cash and Cash Equivalents:                                                            
Beginning of period                                         317,069            90,948 
                                                         ----------        ---------- 
End of period                                            $  283,906        $  343,108 
                                                         ==========        ========== 

Supplemental cash flow disclosures:                                                   
   Cash paid during the period for:                                                   
    Interest (net of capitalized amounts)                $  152,590        $  162,673 
    Income taxes (net of refunds)                           171,832           146,655 

The accompanying Notes to Consolidated Financial Statements are an integral 
part of this statement. 

-4- 

10-Q 5th Page of 13 TOC 1st Previous Next Bottom Just 5th

CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)  

September 30, 1996  

Note 1.                                                                         

The unaudited information furnished in this report reflects all adjustments     
which are, in the opinion of management, necessary to present fairly a statement
of the results for the interim periods reported. All such adjustments made were 
of a normal recurring nature.                                                   

Note 2.                                                                         

Other income (expense) - net for the nine months ended September 30, 1995       
includes gains of $89 million from the sales of certain operations in Canada and
charges of $68 million primarily for the writedown of certain U.S. paper and    
wood products assets.                                                           

Note 3.                                                                         

On July 3, 1996, Weldwood of Canada Limited acquired all of its publicly-held   
shares for approximately (U.S.) $190 million and became a wholly-owned          
subsidiary of Champion.                                                         

Note 4.                                                                         

During the first quarter of 1996, the company acquired Lake Superior Land       
Company for $76 million, before netting $4 million of cash owned by Lake        
Superior Land Company, as well as an outstanding $44 million mortgage loan. The 
acquisition was accounted for as a purchase. Liabilities recorded in connection 
with the acquisition, including purchase accounting adjustments, were the $44   
million mortgage loan, $68 million of deferred taxes payable and $13 million of 
other liabilities.                                                              

-5- 

10-Q 6th Page of 13 TOC 1st Previous Next Bottom Just 6th

CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES 

Item 2.  Management's Discussion and Analysis of Financial Condition and        
------------------------------------------------------------------------        
Results of Operations.                                        
----------------------                                        

Results of Operations                                                           

Overall Quarterly Results                                                       

The company reported net income in the third quarter of 1996 of $32 million or  
$.33 per share, compared to last year's third quarter net income of $236 million
or $2.44 per share, fully diluted, and last quarter's net income of $16 million 
or $.16 per share.                                                              

Significant Income Statement Line Item Changes For The Three Months Ended       
September 30, 1996                                                              

Net sales of $1.47 billion declined from $1.84 billion a year ago and increased 
slightly from $1.44 billion last quarter. Gross profit was $187 million,        
compared to $543 million last year and $158 million last quarter. Pre-tax income
of $46 million declined from $384 million a year ago but improved from $22      
million last quarter. The declines in net sales, gross profit and pre-tax income
from last year were due primarily to lower prices for all of the company's pulp 
and paper grades and, to a lesser extent, lower shipments of all groundwood     
papers and plywood. The improvements in net sales, gross profit and pre-tax     
income from last quarter were due principally to higher prices for market pulp  
and lumber, increased shipments of coated free sheet papers and higher west     
coast timber stumpage sales. The aggregate cost of products sold decreased      
slightly from last year due mainly to lower costs for wood fiber and pulp, and  
was approximately even with last quarter. Selling, general and administrative   
expenses were down from last year and up from last quarter due primarily to the 
impact of stock price fluctuations on the value of stock appreciation rights.   

Interest and debt expense decreased from last year and increased slightly from  
last quarter. The decrease from last year was due principally to a lower average
interest rate on outstanding debt. The increase from last quarter was due mainly
to an increase in the amount of debt. Other (income) expense - net increased    
from both last year and last quarter due primarily to increased land sales and  
lower minority interest expense. The decrease in minority interest expense      
resulted from the purchase by the company's Canadian subsidiary, Weldwood of    
Canada Limited ("Weldwood"), of all of its publicly-held shares on July 3, 1996 
for approximately (U.S.) $190 million. Weldwood is now a wholly-owned subsidiary
of the company.                                                                 

The income tax provision for the third quarter of 1996 reflected an effective   
tax rate lower than last year and approximately even with last quarter. The     
decrease from last year was due primarily to a larger proportion of income      
derived from the company's operations in Brazil, whose tax rate is lower than   
that applicable to the company's North American operations. In addition, the tax
rate in Brazil was reduced effective January 1, 1996.                           

Year-to-Date Results                                                            

For the first nine months, the company reported net income of $131 million or   
$1.37 per share, compared to net income of $554 million or $5.43 per share,     
fully diluted, a year ago.                                                      

-6- 

10-Q 7th Page of 13 TOC 1st Previous Next Bottom Just 7th

Paper Segment                                                                   

For the company's paper segment, third quarter operating income was $58 million.
This compared to income of $419 million a year ago and $44 million last quarter.
Total paper, packaging and pulp shipments were 1,540,000 tons in the third      
quarter, compared to 1,532,000 tons a year ago and 1,521,000 tons last quarter. 

A small operating loss for the domestic printing and writing papers business    
represented a significant decline from the operating income of a year ago due   
mainly to lower prices for uncoated and coated free sheet papers. Earnings      
improved from last quarter's loss due primarily to the receipt of $7.5 million  
of insurance proceeds for a previously recognized loss resulting from a weather-
related outage. The average price for domestic uncoated free sheet papers, the  
principal product of the printing and writing papers business, was $705 per ton 
in the third quarter of this year, compared to $1,044 per ton last year and $706
per ton last quarter. The average price for coated free sheet papers was $1,067 
this quarter, compared to $1,255 a year ago and $1,149 last quarter. Although a 
price increase for several grades of uncoated free sheet papers was partially   
implemented effective October 1, prices weakened during the fourth quarter.     
Shipments of all printing and writing grades were 532,000 tons, compared to     
526,000 tons last year and 521,000 tons last quarter.                           

Operating income at the Brazilian subsidiary, Champion Papel e Celulose Ltda.,  
declined significantly from the year-ago quarter and slightly from last quarter 
due principally to lower prices for both domestic and export uncoated free sheet
papers. The overall average price for uncoated free sheet papers was $788 per   
ton in the third quarter of this year, compared to $1,126 per ton last year and 
$813 per ton last quarter. Uncoated free sheet papers shipments of 97,000 tons  
were approximately even with last year and last quarter. For the first nine     
months of 1996, approximately 38.9 % of the company's consolidated pre-tax      
income was attributable to the Brazilian subsidiary. A price increase for export
uncoated free sheet papers was implemented early in the fourth quarter.         

Earnings for the publication papers business declined from last year due mainly 
to lower prices for all grades and lower shipments of coated and uncoated       
groundwood papers. Earnings declined from last quarter due primarily to lower   
prices for all grades, which more than offset higher shipments of coated free   
sheet and groundwood papers. The average price for coated groundwood papers was 
$894 per ton this quarter, compared to $1,101 per ton last year and $1,003 per  
ton last quarter. Shipments of all publication grades of 318,000 tons decreased 
from 326,000 tons last year and increased from 284,000 tons last quarter. Prices
for coated groundwood papers continued to decline early in the fourth quarter.  

Operating income for the company's U.S. and Canadian market pulp operations     
represented a substantial decline from last year due to lower prices for all    
pulp grades. Earnings improved from last quarter's loss due to higher prices for
all pulp grades. The average price for Canadian softwood pulp was $423 per ton  
in the third quarter of this year, compared to $732 per ton last year and $362  
per ton last quarter. Average prices for northern hardwood and southern pulp    
grades also decreased from last year and increased from last quarter. Shipments 
of all pulp grades of 236,000 tons increased from 224,000 tons last year but    
decreased from 266,000 tons last quarter. Although a price increase for all     
grades was implemented effective October 1, prices for all grades weakened      
during the fourth quarter. Maintenance outages are scheduled at all of the major
market pulp mills in the fourth quarter.                                        

-7- 

10-Q 8th Page of 13 TOC 1st Previous Next Bottom Just 8th

Break-even results for the newsprint business represented a significant decline 
from last year and a slight decline from last quarter due to lower prices and   
shipments. Average newsprint prices (including freight) of $529 per ton in the  
third quarter of 1996 compared to $655 per ton last year and $600 per ton last  
quarter. Shipments of 227,000 short tons of newsprint, specialty and directory  
grades declined from 236,000 tons last year and last quarter, due to weakening  
demand. Prices for newsprint and several grades of groundwood specialty papers  
continued to decline early in the fourth quarter.                               

Earnings for the packaging business represented a decline from last year but an 
improvement from last quarter's break-even results. The decline from last year  
was due primarily to lower prices for kraft paper and linerboard. The           
improvement from last quarter, in which a scheduled maintenance outage occurred,
was due principally to increased shipments of kraft paper and linerboard.       
Shipments of 130,000 tons improved from 125,000 tons last year and 116,000 tons 
last quarter. A price increase for kraft paper was implemented effective        
October 1.                                                                      

Wood Products Segment                                                           

The company's wood products segment, which includes the wood-related operations 
of Weldwood, reported third quarter income from operations of $42 million, up   
from $34 million a year ago and $29 million last quarter. The improvement from  
last year was due principally to a 39% increase in lumber prices and lower      
purchased wood costs. The improvement from last quarter was due mainly to a 14% 
increase in lumber prices as well as improved west coast timber stumpage sales. 
Total wood products shipments declined from last year due to the closure of     
various wood products facilities during 1995.                                   

Foreign Operations                                                              

The company's major foreign operations, which are discussed above under their   
respective business segment headings, are in Canada and Brazil. Net sales to    
unaffiliated customers by the company's foreign subsidiaries for the first nine 
months of 1996 were (U.S.) $591 million, accounting for 13% of consolidated net 
sales of the company. Pre-tax income of the foreign subsidiaries for the first  
nine months of 1996 was (U.S.) $124.6 million, accounting for 62% of the        
consolidated pre-tax income of the company. Net income (after minority interest)
of the foreign subsidiaries for the first nine months of 1996 was (U.S.) $85.2  
million, accounting for 64.9% of consolidated net income of the company.        

Financial Condition                                                             

The company's current ratio was 1.5 to 1 at September 30, 1996, June 30,1996 and
year-end 1995. Total debt to total capitalization was 39% at September 30, 1996 
as compared to 38% at June 30, 1996 and year-end 1995.                          

Significant Balance Sheet Line Item Changes For The Nine Months Ended September 
30, 1996                                                                        

Short-term investments declined by $95 million from December 31, 1995 to        
partially fund the income tax payments, the reduction in accounts payable and   
accrued liabilities, and the purchase of the publicly-held shares of Weldwood   
referred to below. Receivables decreased by $83 million due mainly to           
substantial price decreases for all of the company's major pulp and paper       
grades. Inventories decreased by $54 million, primarily as a result of          
reclassifying $58 million of maintenance parts as other assets. Timber and      
timberlands - net increased by $253 million due principally to the acquisition  
of Lake                                                                         

-8- 

10-Q 9th Page of 13 TOC 1st Previous Next Bottom Just 9th

Superior Land Company in the first quarter of 1996 and the revaluation of timber
assets in connection with the Weldwood share purchase. Other assets and deferred
charges increased by $85 million reflecting the reclassification of maintenance 
parts from inventory, pension contributions and the acquisition of real estate  
land as part of the purchase of Lake Superior Land Company. Accounts payable and
accrued liabilities decreased by $55 million due mainly to the timing of        
payments. Income taxes payable decreased by $117 million due to payments made in
the first nine months of 1996 for U.S. and foreign income taxes. The deferred   
income tax liability increased by $145 million, which included $69 million      
recorded in connection with the Lake Superior Land Company acquisition and $49  
million recorded in connection with the Weldwood share purchase. Minority       
interest in subsidiaries decreased by $101 million due to the Weldwood share    
purchase. For a discussion of changes in long-term debt (including current      
installments) and cash and cash equivalents, see below.                         

Cash Flows Statement - General                                                  

In the first nine months of 1996, the company's net cash provided by operating  
activities and asset sales was not sufficient to meet the requirements of its   
investing activities (principally capital expenditures and the acquisition of   
Lake Superior Land Company) and its financing activities (principally debt      
payments, cash dividends, the purchase of shares of the company's common stock  
and the Weldwood share purchase). The difference was financed through borrowings
and the use of cash and cash equivalents. In the first nine months, net         
borrowings generated cash proceeds of $166 million; long-term debt (including   
current installments) increased by $205 million, including a $44 million        
mortgage loan of Lake Superior Land Company which was outstanding at the time of
its acquisition. Cash and cash equivalents decreased by $33 million in the first
nine months to a total of $284 million, $241 million of which was held by the   
company's Canadian and Brazilian subsidiaries.                                  

In the first nine months of 1995, the company's net cash provided by operating  
activities and asset sales exceeded the requirements of its investing activities
(principally capital expenditures). The approximate excess was used to pay      
dividends, to pay a portion of the company's long-term debt (including current  
installments), to increase cash and cash equivalents, and to purchase shares of 
the company's common stock. Long-term debt (including current installments)     
declined by $169 million; the substantial portion of this reduction was effected
through the conversion of virtually all $149,893,000 of the company's 6 1/2%    
Convertible Subordinated Debentures into an aggregate of 4,309,070 shares of    
common stock rather than through the use of cash. Cash and cash equivalents     
increased by $252 million in the first nine months of 1995 to a total of $343   
million. In the first nine months, the company purchased 9,964,737 shares of    
common stock for $497 million.                                                  

Cash Flows Statement - Operating Activities                                     

For the first nine months, net cash provided by operating activities of $346    
million declined from $1,047 million a year ago. The decrease was due primarily 
to lower earnings, higher income tax payments, lower deferred income taxes,     
accounts payable and accrued liabilities and other liabilities, which were      
partially offset by a decrease in receivables.                                  

Cash Flows Statement - Investing Activities                                     

For the first nine months, net cash used in investing activities of $336 million
increased from $263 million a year ago. The increase was due principally to the 
acquisition of Lake Superior Land Company for $76 million (as well as a $44     
million mortgage loan which was outstanding at the time of its acquisition), and
a decline in net proceeds from asset sales attributable to the sale of certain  
operations in Canada last year, which were partially offset by an increase in   
proceeds from the redemption of investments this year.                          

-9- 

10-Q 10th Page of 13 TOC 1st Previous Next Bottom Just 10th

The company's Brazilian subsidiary is currently negotiating the possible        
purchase of Amapa Florestal e Celulose (AMCEL), a Brazilian company that owns   
approximately 430,000 acres of land and a chip mill in the State of Amapa,      
Brazil. The company anticipates completing the purchase in the fourth quarter.  

Cash Flows Statement - Financing Activities                                     

Net cash used in financing activities of $42 million declined from $532 million 
a year ago. The change mainly reflects the purchase of shares of common stock by
the company and the reduction in long-term debt (including current installments)
last year, partially offset by this year's Weldwood share purchase.             

At September 30, 1996, the company had $40 million of U.S. commercial paper     
outstanding, all of which is classified as long-term debt, down from $93 million
at June 30, 1996 and $58 million at year-end 1995. At September 30, 1996 and    
June 30, 1996, no notes were outstanding under the company's U.S. bank lines of 
credit, compared to $40 million of such notes outstanding at year-end 1995.     
Domestically, at September 30, 1996, $40 million of the company's unused bank   
lines of credit of $1,250 million supported the classification of commercial    
paper as long-term debt. At September 30, 1996, Weldwood had unused bank lines  
of credit of $190 million.                                                      

On September 18, 1996, the company borrowed $45,685,000 through the issuance of 
long-term tax-exempt bonds. The net proceeds are being applied to the payment of
a portion of the costs of construction of solid waste and sewage treatment      
facilities at the company's Pensacola, Florida mill. The annual principal       
payments requirements under the terms of all long-term agreements for the period
from October 1 through December 31, 1996 are $12 million and for the years 1997 
through 2000 are $195 million, $467 million, $269 million and $205 million,     
respectively.                                                                   

-10-

10-Q 11th Page of 13 TOC 1st Previous Next Bottom Just 11th

PART II.  OTHER INFORMATION 

CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES 

Item 6.  Exhibits and Reports on Form 8-K.                                      
------------------------------------------                                      

(a)  See exhibit index following the signature page.              

 (b)  No reports on Form 8-K were filed during the quarter for which
this report is filed.                                   

-11-

10-Q 12th Page of 13 TOC 1st Previous Next Bottom Just 12th

SIGNATURES  

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the undersigned on behalf of the registrant as duly    
authorized officers thereof and in their capacities as the chief accounting     
officers of the registrant.                                                     

                                          Champion International Corporation
                                          ----------------------------------
                                            (Registrant)

Date:     November 13, 1996                             John M. Nimons          
--------------------------------------      ----------------------------------  
                                               (Signature)

                      John M. Nimons
                                     Vice President and Controller

Date:     November 13, 1996                            Kenwood C. Nichols       
---------------------------------------      ---------------------------------  
                                                 (Signature)

                            Kenwood C. Nichols
                                             Vice Chairman and Executive Officer

-12-

10-Q Last Page of 13 TOC 1st Previous Next Bottom Just 13th

EXHIBIT INDEX 

Each exhibit is listed according to the number assigned to it in the Exhibit    
Table of Item 601 of Regulation S-K.                                            

3.1 -  By-Laws of the company.                                      

 10.1 -  Amendment dated as of August 15, 1996 to (i) Restated Agreement
           between the company and Mr. Sigler, as amended as of February 19,
       1987, April 21, 1988, August 18, 1988, September 19, 1991 and
       November 17, 1994, and (ii) Agreement dated November 17, 1994
between the company and Mr. Sigler.                   

     10.2 -  Amendment dated as of August 15, 1996 to Agreement dated August 18,
            1988 between the company and Mr. Heist, as amended as of September
19, 1991.                                             

    11   -  Calculation of Primary Earnings Per Common Share and Fully Diluted
Earnings per Common Share (unaudited).                

27   -  Financial Data Schedule (unaudited).                          

-13-

10-Q	1st Page of 13	TOC	Top	Previous	Next	Bottom	Just 1st

10-Q	2nd Page of 13	TOC	1st	Previous	Next	Bottom	Just 2nd

10-Q	3rd Page of 13	TOC	1st	Previous	Next	Bottom	Just 3rd

10-Q	4th Page of 13	TOC	1st	Previous	Next	Bottom	Just 4th

10-Q	5th Page of 13	TOC	1st	Previous	Next	Bottom	Just 5th

10-Q	6th Page of 13	TOC	1st	Previous	Next	Bottom	Just 6th

10-Q	7th Page of 13	TOC	1st	Previous	Next	Bottom	Just 7th

10-Q	8th Page of 13	TOC	1st	Previous	Next	Bottom	Just 8th

10-Q	9th Page of 13	TOC	1st	Previous	Next	Bottom	Just 9th

10-Q	10th Page of 13	TOC	1st	Previous	Next	Bottom	Just 10th

10-Q	11th Page of 13	TOC	1st	Previous	Next	Bottom	Just 11th

10-Q	12th Page of 13	TOC	1st	Previous	Next	Bottom	Just 12th

10-Q	Last Page of 13	TOC	1st	Previous	Next	Bottom	Just 13th

Dates Referenced Herein and Documents Incorporated By Reference

		Referenced-On Page
This 10-Q Filing	Date	First	Last	Other Filings

	11/17/94	13
	9/30/95	5		10-Q
	12/31/95	3	8	10-K405
	1/1/96	6
	6/30/96	8	10	10-Q
	7/3/96	5	6
	8/15/96	13
	9/18/96	10
For The Period Ended	9/30/96	1	10
	10/31/96	1
Filed On / Filed As Of	11/13/96	12
	11/14/96
	12/31/96	10		10-K405

Top				List All Filings

Filing Submission - Alternative Formats (Word / Rich Text, HTML, Plain Text, SGML, XML, et al.)

			in		Show		and
Help...	Wildcards: ? (any letter), * (many). *Logic:* for Docs: & (and), \| (or); for Text: \| (anywhere), "(&)" (near).

Champion International Corp · 10-Q · For 9/30/96

Filed On 11/13/96 · SEC File 1-03053 · Accession Number 950130-96-4366

Quarterly Report · Form 10-QFiling Table of Contents

10-Q · Form 10-Q for Period Ending 9/30/96Document Table of Contents

Dates Referenced Herein and Documents Incorporated By Reference

Quarterly Report · Form 10-Q
Filing Table of Contents

10-Q · Form 10-Q for Period Ending 9/30/96
Document Table of Contents