Smurfit-Stone, Rock-Tenn Report Figures

Smurfit-Stone Container Corp.

Smurfit-Stone Container Corp. reported net income of $286 million compared to a loss of $214 million the same period a year ago. Sales for the period were $1.9 billion, compared to $1.2 billion in the fourth quarter of 1998.

For the full year 1999, the company reported net income of $157 million, compared to a net loss of $200 million in 1998. The 1999 results included an after-tax gain on the sale of non-core assets of $268 million. Sales for the full year were $7.2 billion compared to $3.5 billion in 1998.

Ray Curran, president and CEO, noted that the fourth quarter was the first profitable quarter since Smurfit-Stone was established. "The results reflect the company's year-long focus on achieving synergies, divesting assets and reducing debt and interest expense. This effort has lowered the company's break-even point at a time of improving demand and prices for corrugated containers and other packaging products and market pulp," Curran said.

Rock-Tenn Co.

Rock-Tenn Co. reported net sales for the first fiscal quarter increased 11.3 percent to $345.9 million from $310.8 million in the same quarter last year.

Net income for the first fiscal quarter was $8.6 million, compared to $8.8 million in the same quarter in the prior year. Net income in the first fiscal quarter of 2000 was reduced by $1.6 million related to one-time charges to operations associated with the closing of the Lynchburg, Va., laminated paperboard products plant. $1.3 million as a result of similar charges associated with other plant closings reduced net income in the first fiscal quarter of 1999

James A. Rubright, chief executive officer, commented, ``The increase in net sales reflects firmer market conditions in our paperboard and folding carton businesses and continuing growth in our corrugated packaging and display division. Earnings were adversely affected by high start up costs on new accounts in our folding carton division, continued difficult market conditions in our web offset folding carton plants, and delays in recovering fiber and paperboard cost increases in our paperboard and folding carton divisions. These conditions offset strong earnings performance in our corrugated packaging and display division and strong operating rates in our paperboard mills.''

Segment Results

The packaging products segment consists of the folding carton, corrugated packaging and display and RTS businesses. Packaging products segment sales in the first fiscal quarter were $228.9 million, a 9.2 percent increase over the same quarter last year. Sales increased primarily as a result of increases in volume and selling prices in the company's corrugated packaging and display division. Folding carton income was reduced by higher raw material costs that were not fully passed on to customers during the quarter and operational problems attributable in part to start ups of new business.

The paperboard segment consists of paperboard mills that manufacture recycled coated and uncoated paperboard and recycled corrugating medium. Paperboard segment sales in the first fiscal quarter were $115.9 million, an increase of 14.5 percent over the same quarter in the prior year.

The laminated paperboard, plastic packaging and recycled fiber segment sales were $70.1 million, an increase of 17.8 percent over the same quarter in the prior year. Sales increased primarily as a result of higher volumes in the plastic packaging division and increased selling prices in the plastic packaging and recycled fiber divisions.