13-6 Georgia Pacific

13-6 Georgia Pacific - Georgia-Pacific says Asbestos Charge...

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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
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This note was uploaded on 05/03/2010 for the course ACCT 202 taught by Professor Yang during the Spring '10 term at UPenn.

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