The new post-buyout structure of Jefferson Smurfit group drove a 95 per cent decline in pre-tax profits at the company last year.
Results released yesterday show that Jefferson Smurfit recorded a pre-tax profit of €12 million in 2003, down from €239 million in the previous year.
The drop came as turnover fell by 1 per cent to €4.1 billion.
The company warned against direct comparisons between the two years, however, pointing to the distorting effect of "material changes" to its capital structure.
It said the decline in profits mainly reflected interest charges associated with the group's leveraged capital structure.
Jefferson Smurfit was taken private by Madison Dearborn in a €3.8 billion leveraged buyout in 2002.The company has since passed through a sweeping restructuring.
Jefferson Smurfit chief executive, Mr Gary McGann, said growth in 2003 had been dented by a combination of economic weakness, euro strength and paper pricing problems.
He described profits as "acceptable", going on to highlight the company's strong level of free cashflow, which stood at €178 million for the year, up from €146 million in 2002.
