Weak manufacturing demand and lower containerboard prices resulted in a 65 per cent drop in profits after tax to $28 million (€31.4 million) at Smurfit-Stone Container Corporation for the three months to the end of September.
President and chief executive of the Jefferson Smurfit Group's 29.4 per cent associate, Mr Ray Curran, warned that demand was expected to remain weak because a turnaround in the economy was not expected in the near-term.
At 11 US cents, third-quarter earnings per share were ahead of forecasts of between two cents and seven cents - but well down on the 32 cents reported for third-quarter 2000. Net income for the nine months to the end of September dropped to $52 million, or 21 US cents per share, from $157 million, or 68 cents per share.
The outcome was an improvement on the earnings of five cents per share of the second quarter, reflecting cost reduction, improved mill efficiency and an increase in containerboard output, Mr Curran said.
Third-quarter results were helped by lower interest rates, with the net interest charge down to $109 million from $142 million in third quarter 2001, and $9 million down on the three months to the end of June 2001. Smurfit-Stone and the Jefferson Smurfit Group are responsible for 11 per cent of world containerboard production.
