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Show Kaibab Profits Down Kaibab Industries, with corporate headquarters in Phoenix, will report a loss for "its first quarter ending December 31, 1981 The company's lumber mill in Panguitch, one of Garfield County's principal employers, is part of Kaibab's widespread activities in forest products manufacturing, building materials distribution and petroleum products marketing. Net loss for the three month period was $649,000 equal to $.43 a ithnrn nn saIp of $32,841,000. This compares with net income of $82,000 or $.06 a share on sales of $35,473,000 for the first three months of the prior year. A.M. Whiting, President, said the company's losses are directly related to problems in the homebuilding industry. Housing activity in 1981 may have reached its lowest level since World War II. Total 1981 housing starts are now estimated at 1,100,000, marking the third consecutive year of delcline. At best, we expect a modest improvement in starts during calendar 1982 with no improvement until the June quarter. Lumber prices declined 12 percent during the past year in spite of industry production curtailments that approached SO percent during the December quarter. Declining prices were largely responsible for the first quarter loss sustained by the Forest Products Company. Activities of the Petroleum Marketing Company were profitable during the quarter. Sales increased 12 percent although margins remained tight due to a continuing oversupply of refined products. Kaibab Distribution Company posted A loss for the quarter on sales that were down 25 percent from the previous year. During the quarter the decision was made to phase out of the Dallas-Ft. Worth building material distribution center. This move will cut-off the substantial losses suffered by this division over the past three years. |