Price increases in corrugated boxes and containerboard have driven further strong growth in the second quarter of 2000 at Smurfit Stone Container Corporation, the US company which is 33 per cent owned by the Jefferson Smurfit Group.

The company has announced after-tax profits of $38 million (£40.7 million) or 17 cents a share compared with a net loss of $25 million (£23.32 million) or 12 cents a share.

The figures include the impact of a 10 cents per share cost to close the company's York containerboard mill and the Torrington corrugated container plant.

This was partly offset by a gain of three cents per share on the disposal of newsprint assets.

Sales over the six months to the end of June increased by 13 per cent to $3.89 billion compared with $3.43 billion in the same period last year. Commenting on the outturn yesterday, Smurfit Stone president and chief executive Mr Ray Curran said the second quarter performance was strong despite higher prices for recycled fibre. "Recycled fibre costs are quite a bit lower at this point than they were in the second quarter and packaging prices were firm," he said.

Mr Curran added that a combination of these factors should have a favourable impact on the company's third-quarter performance.

Strong cash flow from the sale of its Port Wentworth mill in May allowed the group to reduce debt by a further $200 million, bringing its total debt at the end of June to $5.7 billion.