Smurfit Stone Container Corporation (SSCC), Jefferson Smurfit's former US associate, has reported an increase in third-quarter earnings, helped by improved containerboard shipments and prices.
The Chicago-based manufacturer of cardboard boxes and paper bags reported net income including special items of $43 million (€43.9 million), or 17 cents per share, up from $28 million or 11 cents per share a year earlier.
"We increased containerboard and container prices during the quarter," according to SSCC president and chief executive, Mr Patrick Moore.
"In the third quarter, year-over-year box shipments were up 4.5 per cent, outpacing industry levels," he said.
On the downside, the third- quarter figures were negatively impacted by higher recycled fibre costs.
If one-time items, including restructuring and other charges related to the sale or closure of three facilities, are included, SSCC's net income in the period was $37 million or 14 cents per share, slightly ahead of analyst forecasts of 13 cents per share.
Sales in the period rose to $2.11 billion from $2.06 billion a year earlier.
Jefferson Smurfit Group held 29 per cent of the US group prior to its departure from the stock exchange earlier this year.
As part of the move to take it private, its interest in SSCC was spun off, leaving Smurfit shareholders with one SSCC share for every 16 Smurfit shares held.
While most of the Irish institutional holders of Smurfit have sold their SSCC shares, the company estimates that at least 1 per cent of the stock is still in Irish hands.
SSCC said it expected to benefit from improving corrugated container prices and lower recycled fibre costs in the fourth quarter. But SSCC expects this to be offset by seasonally lower volumes and higher downtime, particularly in containerboard, as well as higher interest expense.
"This will put pressure on fourth-quarter net income relative to the third quarter," Mr Moore said.
Shares in SSCC closed at $13.44 on the New York Stock Exchange yesterday, down from $13.85 on Monday in a generally weaker market.
