PAYLESS CASHWAYS <PCI> SEES BETTER FIRST QTR
Payless Cashways Inc chairman David
Stanley told analysts the company's first quarter results to be
reported March 17 will be better than the seven cts per share
reported in the year ago quarter.
    "It was not a wonderful sales quarter, but it only
represents 14 pct of the year's total results," Stanley said.
    Stanley also said that 1987 full year sales will be in
excess of 1.8 billion dlrs as compared to the 1.5 billion dlrs
reported in 1986. He also said that analysts' estimates of 1.55
dlr per shr for 1987 "are not crazy."
    Payless reported net income of 1.22 dlr per share in 1986.
    "The economy may not get a lot better, but we expect our
advantages in the lumber industry and cost cutting measures to
keep us competitive," Larry Kunz, chief financial officer,
said.
     The company acquired Knox Lumber Co for about 24.3 mln
dlrs in October 1986.
    Stanley said the company's stronger-than-optimal balance
sheet will enable it to make further acquisitions but no
negotiations are going on at the current time.
    He said some benefits of a new management information
system will be felt in 1987 and more substantially in 1988.
   
REUTER...^M
