Smurfit Stone Container Corp, the US associate of the Jefferson Smurfit group, has reported a better-than-expected out-turn for the second quarter of 2002.
It said yesterday that pre-tax profits rose to $27 million (€27.2 million) in the three months to the end of June compared with $17 million for the same period in 2001.
The company said the stronger performance was due to a pick-up in demand and low energy costs, which offset higher fibre costs. The result is equivalent to 10 US cents per share for the second quarter. This was achieved after an exceptional item of $44 million, equivalent to two cents per share. This charge relates to the early extinguishment of debt during that quarter.
Sales for the second quarter were $2.05 billion compared to $2.11 billion in the same period last year. For the first half of the year, the group reported income before exceptional items of $36 million or 12 US cents per share. Sales for the first half were $3.9 billion compared to $4.3 billion a year earlier.
Analysts had been expecting the group to post earnings per share of between one and seven cents.
Smurfit shares closed two cents lower in Dublin yesterday at €2.80, with the shares now trading below the €2.93 price offered by Chicago-based firm Madison Dearborn Partners for the paper and packaging company.
In Dublin yesterday, some market sources were questioning whether the deal might unravel or whether Madison Dearborn might be happy to pull out if it failed to get more than 80 per cent acceptances from the group's shareholders.
An extraordinary general meeting will be held in Dublin on Monday to discuss the bid. People have until Saturday to submit proxy votes to the registrars.
