Higher energy costs dragged down first quarter earnings at Jefferson Smurfit's US associate Smurfit-Stone Container, the company said today.
Earnings per share in the first quarter were 0.07 cents from 0.18 cents last year. Smurfit-Stone had already warned in mid-March of an earnings shortfall.
Sales for the quarter were $2.2 billion compared to $2 billion a year earlier.
Mr Ray Curran, Smurfit-Stone president and chief executive, said that the primary factors affecting profits were mill downtime, reduced container shipments and higher energy costs.
He added the increase in sales was driven primarily by the acquisition of St Laurent Paperboard in May 2000.
"Looking ahead, Smurfit-Stone anticipates modest pressure on pricing and substantial economic downtime," according to Mr Curran.
He continued " We have made great strides to enhance our financial flexibility and have initiated an effort to reduce selling, general and administrative expenses across the company both this year and beyond."