RNS Number:1540I
Canadian Overseas Packaging Ind Ld
28 February 2003


                 CANADIAN OVERSEAS PACKAGING INDUSTRIES LIMITED



                     Interim Report to Shareholders for the

                    Six-Month Period ended December 31, 2002

 (Unless otherwise stated all figures are in Canadian currency and, except for
                   per share amounts, in millions of dollars

                     as indicated by the abbreviation "M")



Summary of the Financial Results



Net earnings for the half year ended December 31, 2002 were $4.1M compared

with $20.3M in 2001. Earnings per share were $0.23 versus $1.16 for the prior
comparable period. The combined revenues from the Corporation's manufacturing
and investment activities were $97.1M (2001: $103.2M).

Manufacturing Operations

Sales of the Corporation's products, which are corrugated fibreboard containers,
multiwall paper sacks and other paper products were $88.8M (2001: $86.1M). The
manufacturing operations' performance was satisfactory given the fragile state
of the economies in which they operate. Cost reduction and productivity
programmes have been successfully implemented.

Investment Activities

Interest, which comprises income from term deposits and bonds, decreased
slightly in the period to $2.8M (2001: $2.9M).

The gain on sale of marketable securities was $5.5M compared with $4.1M for the
same period last year.

The investment company subject to significant influence reported a loss of $6.5M
compared with a profit of $9.5M for the corresponding period last year. At
December 31, 2002 the Corporation's equity interest in the investment company
was $224.1M compared with $216.8M at December 31, 2001 representing a 3.4%
increase for the calendar year.

Foreign currency losses were $0.3M compared with a gain of $0.4M last year.

At December 31, 2002 equities were 66%; bonds and cash represented 34%. These
figures compare with 65% and 35% as at December 31, 2001.

Outlook

It is expected that margins in all the manufacturing operations will continue to
come under pressure for the remainder of this fiscal year.

The world's financial markets remain volatile and unpredictable. No significant
changes to our current investment strategy are expected.

On Behalf of the Board of Directors

D. M. Eramian

Company Secretary

February 28, 2003





                 CANADIAN OVERSEAS PACKAGING INDUSTRIES LIMITED

                    (incorporated under the laws of Canada)

                   UNAUDITED INTERIM RESULTS TO SHAREHOLDERS

                FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002

            (all figures expressed in thousands of Canadian dollars

                       except for the common share data)

                                                                                         Dec 31 '02      Dec 31 '01
CONSOLIDATED STATEMENTS OF EARNINGS                                                        (C$000)         (C$000)
Revenues
             Sales                                                                          88,827          86,138
             Interest                                                                        2,757           2,874
             Dividends                                                                                         106
             Gain on sale of marketable securities                                           5,482           4,125
             Share in net earnings of company subject to significant influence                               9,532
             Foreign currency gains                                                                            399
                                                                                            97,066         103,174
Expenses
             Cost of Sales                                                                  64,809          62,078
             Selling and administrative                                                     19,937          18,658
             Interest
             Current                                                                           822             959
             Long-term                                                                          20              48
             Share in net loss of company subject to significant influence                   6,503
             Foreign currency losses                                                           303
                                                                                            92,394          81,743
Earnings from operations before income taxes and minority interest                           4,672          21,431
Current income taxes                                                                           534           1,086
Earnings from operations before minority interest                                            4,138          20,345
Minority interest                                                                             (68)            (21)
Net Earnings                                                                                 4,070          20,324

Earnings per common share (17,578,125 shares)*                                              C$0.23         C$ 1.16
*there is no difference between headline earnings per common share and earnings
per common share

The accompanying notes are an integral part of the interim consolidated
financial statements.


                                                                                           Dec 31 '02      Dec 31 '01
CONSOLIDATED STATEMENTS OF CASH FLOWS                                                        (C$000)         (C$000)
(unaudited)

OPERATING ACTIVIITIES
Net earnings                                                                                  4,070          20,324
Non-cash items
             Depreciation                                                                     2,499           2,575
             Minority interest                                                                   68              21
             Gain on sale of marketable securities                                          (5,482)         (4,125)
             Share in net loss (earnings) of company subject to significant                   6,503         (9,532)
             influence
             Gain on sale of property, plant and equipment                                      (3)           (669)
                                                                                              7,655           8,594
Changes in non-cash working capital items                                                   (8,610)         (3,895)
Cash flows from operating activities                                                          (955)           4,699
INVESTING ACTIVITIES
Purchase of marketable securities                                                          (64,740)       (122,676)
Proceeds on sale of marketable securities                                                    70,844         137,561
Purchase of property, plant and equipment                                                   (2,337)         (1,327)
Proceeds on sale of property, plant and equipment                                                 3             756
Cash flows from investing activities                                                          3,770          14,314
FINANCING ACTIVITIES
Bank indebtedness                                                                           (2,112)         (8,109)
Repayment of long-term debt                                                                   (346)           (327)
Dividend                                                                                   (17,578)        (16,699)
Cash flows from financing activities                                                       (20,036)        (25,135)
Foreign exchange loss on cash and cash equivalents held in foreign
currency                                                                                        415             301
Net decrease in cash and cash equivalents                                                  (16,806)         (5,821)
Cash and cash equivalents, beginning of period                                               75,495          70,000
Cash and cash equivalents, end of period                                                     58,689          64,179
CASH AND CASH EQUIVALENTS
             Cash                                                                            13,197          10,065
             Term deposits                                                                   45,492          54,114
                                                                                             58,689          64,179

The accompanying notes are an integral part of the interim consolidated
financial statements.


                                                                           (unaudited)                       (unaudited)
                                                                           Dec 31 '02      June 30 '02       Dec 31 '01
CONSOLIDATED BALANCE SHEETS                                                 (C$000)          (C$000)          (C$000)
ASSETS                                                         
Current assets
             Cash                                                            13,197            32,460           10,065
             Term deposits                                                   45,492            43,035           54,114
             Accounts receivable                                             42,298            35,992           39,119
             Inventories                                                     15,531            14,850           14,470
                                                                            116,518           126,337          117,768
Investments
             Marketable securities, at cost (quoted value: $91,111;          85,629            86,251           87,185
             $89,834 at 30 June, 2002; $91,662 at 31 Dec, 2001)
             Company subject to significant influence, at equity            224,109           230,612          216,752
             Investment company(estimated fair value: $248,000;
             $247,000 at 30 June, 2002: $248,000 at 31 Dec, 2001)
             Other investments, at cost                                          25                25               25
                                                                            309,763           316,888          303,962
Property, plant and equipment                                                35,787            34,186           32,113
                                                                            462,068           477,411          453,843
LIABILITIES
Current liabilities
             Bank indebtedness-secured by certain assets                     18,647            20,759           12,515
             Accounts payable and accrued liabilities                        23,364            24,755           25,847
             Income taxes payable                                               465               697            1,489
             Current portion of long-term debt                                  352               651              666
                                                                             42,828            46,862           40,517
Long-term debt                                                                                                     307
Future income taxes                                                           4,493             4,289            3,620
Minority interest                                                               772               687              767
                                                                             48,093            51,838           45,211

SHAREHOLDERS' EQUITY
Capital stock                                                                47,984            47,984           47,984
Retained earnings                                                           368,304           381,812          364,283
Appraisal increment                                                           1,959             1,817            2,001
Cumulative translation adjustments                                          (4,272)           (6,040)          (5,636)
                                                                            413,975           425,573          408,632
                                                                            462,068           477,411          453,843

The accompanying notes are an integral part of the interim consolidated
financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
(in thousands of Canadian dollars)                Capital        Retained     Appraisal      Cumulative         Total

                                                   Stock         Earnings     Increment      Translation

                                                                                             Adjustments

Balance June 30, 2001                               47,984        360,658        1,833           (7,318)        403,157
Effect of exchange rate changes                                                    168             1,682          1,850
Net earnings                                                       20,324                                        20,324
Dividend ($0.95 per share)                                       (16,699)                                      (16,699)
Balance December 31, 2001                           47,984        364,283        2,001           (5,636)        408,632
Realisation of appraisal increment                                     27         (27)
Effect of exchange rate changes                                                  (157)             (404)          (561)
Net earnings                                                       17,502                                        17,502
Balance June 30, 2002                               47,984        381,812        1,817           (6,040)        425,573
Effect of exchange rate changes                                                    142             1,768          1,910
Net earnings                                                        4,070                                         4,070
Dividend ($1.00 per share)                                       (17,578)                                      (17,578)
Balance December 31, 2002                           47,984        368,304        1,959           (4,272)        413,975

The accompanying notes are an integral part of the interim consolidated
financial statements.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2002

(Tabulated amounts are in thousands of Canadian dollars, except per common share
data)

1. FINANCIAL STATEMENTS PRESENTATION

The unaudited interim consolidated financial statements have been prepared by
the Corporation in accordance with Canadian generally accepted accounting
principles (Canadian GAAP). The major difference between Canadian GAAP and
International Accounting Standards (IAS), in so far as they apply to the
Corporation is described in Note 2. The financial information was prepared in
accordance with the same accounting policies and methods as the audited annual
consolidated financial statements for the year ended June 30, 2002. The
unaudited interim consolidated financial statements should be read in
conjunction with the audited annual consolidated financial statements and notes
thereto in the Corporation's 2002 annual report. The results of operations for
the interim periods presented do not necessarily reflect results for the full
year.



2. DIFFERENCE BETWEEN CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND
INTERNATIONAL ACCOUNTING STANDARDS

Under Canadian GAAP, investments, excluding the investment in the company
subject to significant influence, should be recorded at cost, less any decrease
in value other than a temporary decline. Pursuant to IAS 39, for financial years
beginning on or after January 1, 2001, the marketable securities are classified
as trading and are recorded at market value. All unrealised holding gains or
losses are included in net earnings in the period in which they arise. Had the
Corporation followed IAS 39, certain items would have increased as follows:

Consolidated balance sheets and statement of changes in shareholders' equity              (unaudited)
                                                                                          Dec 31, '02     June 30, '02
Marketable securities                                                                          5,482             3,583
Shareholders' equity
Retained earnings
Balance at beginning of period                                                                 3,583             2,677
Net earnings                                                                                   1,899               906
                                                                                               5,482             3,583

                                                                                                           (unaudited)
Consolidated statement of earnings                                                                         Dec 31, '02
                                                                                                          (six months)
Net earnings according to Canadian GAAP                                                                          4,070
Unrealised gains on marketable securities                                                                        1,899
Net earnings under IAS                                                                                           5,969
Earnings per common share per IAS                                                                               C$0.34

28th February 2003                                                          By Order of the Board

Suite 1500, One Brunswick Square, Germain Street                            D. M. Eramian

St. John, New Brunswick, Canada E2L 4H8                                     Company Secretary



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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