AMERICAN CAN <AC> SEES HIGHER YEAR NET
American Can Co chairman Gerald Tsai
said the company will record higher earnings in the first
quarter and for the full year.
    Addressing analysts, Tsai said "First quarter results have
been extremely encouraging and results for all of 1987 will
show significant improvement over 1986."
    American Can earned 196.3 mln dlrs, or 3.21 dlrs per share,
adjusted for a two-for-one stock split, in 1986.
    In the 1986 first quarter, the company reported net income
of 67.5 mln dlrs, including one-time gains from sale of assets,
or 2.30 dlrs per share, before the stock adjustment.
    In the 1987 first quarter, American Can will record a
one-time gain of 28 cts per share from the sale of shares in
its Musicland Group subsidiary. The gain is slightly higher
than the expected gain the company predicted in February
because additional shares of the unit were sold.
    In response to a question, Tsai said American Can's
investment in Jefferies and Co is "very small".
    "We treat it as just another passive investment," he said.
According to press reports, American Can owns 20 pct of
Jefferies and is its largest single shareholder.
    Yesterday, Boyd Jefferies, chairman and founder of the
brokerage firm bearing his name, resigned from the firm and
said he would plead guilty to two felony charges for breaking
securities laws.
    Responding to another question, Tsai said AIDS-related
claims were a small portion of claims made with American Can's
insurance subsidiaries in 1986.
 Reuter
