Georgia-Pacific says Asbestos Charge will result in Net Loss for Fourth Period Source: The Wall Street Journal, 25 January 2002 ATLANTA – Georgia-Pacific Corp. said it will take a $221 million charge to fourth-quarter earnings for anticipated asbestos claims, which will result in a net loss of about $190 million. By disclosing the charge, Georgia-Pacific sought to quantify its asbestos risk for the next 10 years and calm jittery investors, who have seen the company’s share price fall 37% since early December. In a fiery defense of his forest-products company, Chairman and Chief Executive A.D. “Pete” Correll said Georgia-Pacific’s share of asbestos payments over the next decade will be immaterial to the com-pany’s bottom line. “The impact of asbestos on Geor-gia-Pacific is grossly overblown and we are not, I repeat, not, on the verge of insolvency,” Mr. Correll told analysts and investors in a conference call. The message appeared to reassure some investors. In
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 05/03/2010 for the course ACCT 202 taught by Professor Yang during the Spring '10 term at UPenn.