Displaying items by tag: SmurfitStone

Smurfit-Stone Container Corporation (NYSE: SSCC) today reported net income of $49 million, or $0.49 per diluted share, for the fourth quarter ended Dec. 31, 2010, compared with net income of $65 million, or $0.65 per diluted share, for the third quarter of 2010, and a net loss attributable to common stockholders of ($6) million, or ($0.02) per share, for the fourth quarter of 2009.  

Smurfit-Stone's fourth quarter 2010 adjusted net income was $62 million, or $0.62 per diluted share, down seasonally from adjusted net income of $76 million, or $0.76 per diluted share, in the third quarter of 2010, and an adjusted net loss of ($16) million, or ($0.06) per diluted share, in the fourth quarter of 2009.  The adjustments in the third and fourth quarter of 2010 were primarily the exclusion of costs related to reorganization and restructuring.

Patrick J. Moore, Smurfit-Stone's Chief Executive Officer, commented, "Fourth quarter performance was strong, meeting our expectations, and demonstrating that our initiatives to improve productivity and lower costs are enabling us to deliver improvement in earnings, margins and cash flow."  

Adjusted EBITDA for the fourth quarter of 2010 was $205 million, down from $239 million in the third quarter of 2010, and up from $67 million in the fourth quarter of 2009.  The sequential decline in adjusted EBITDA reflects seasonally lower volumes, cost inflation, the impact of a work stoppage at the Company's La Tuque, Quebec, mill, and market-related downtime taken in December in order to balance supply and demand in the Company's system.    

Net sales for the fourth quarter of 2010 were $1.63 billion, unchanged from the third quarter of 2010 and up 18 percent compared with sales of $1.38 billion in the fourth quarter of 2009.  The stable sales in fourth quarter 2010 reflect modestly higher selling prices, offset by seasonally lower volumes.

Fourth Quarter Highlights

• The Company achieved strong financial results despite higher reclaimed fiber costs, a work stoppage at its La Tuque facility and market-related downtime in the quarter.
• Initial SG&A cost reductions were completed in the fourth quarter that will produce net savings of $50 million in 2011.
• The Company ended the quarter with cash of $449 million, down only $15 million from the end of the third quarter, despite capital expenditures of $67 million and a voluntary $105 million pension contribution in the quarter.
• The Company's underfunded pension position improved to $1.13 billion at year end from $1.45 billion at June 30, 2010, reflecting strong asset returns and contributions totaling $199 million in 2010.
• The Company ended 2010 with net debt of $745 million and liquidity of nearly $1 billion.    

Outlook

Smurfit-Stone expects lower sequential earnings in the first quarter of 2011 compared with the fourth quarter of 2010.  Moderate improvement in pricing will be more than offset by seasonally higher energy usage, cost inflation in fiber and energy, and the impact of employee benefit cost timing.  

Conference Call and Webcast

The previously scheduled conference call and webcast will not be held.

Smurfit-Stone Container Corporation announced that all of its U.S. paper mills have been recommended for chain-of-custody certification to the Sustainable Forestry Initiative ("SFI"), Programme for the Endorsement of Forest Certification ("PEFC") and Forest Stewardship Council ("FSC") standards.

Having its mill system fully certified allows Smurfit-Stone to trace and verify the origin of the fiber used in its papermaking operations.  This is becoming an increasingly important requirement for many companies that are looking to partner with packaging manufacturers that can help them meet their social and environmental goals.

"Smurfit-Stone is committed to responsible and sustainable fiber sourcing, and completing this certification process division-wide reaffirms our beliefs," said Mike Exner, Senior Vice President and General Manager, Mill division.  "The chain-of-custody certification also helps us better support our customers in meeting their sustainability goals."

The chain-of-custody certification audits were conducted over a two-week period from November 29, 2010, to December 3, 2010.  Smurfit-Stone's mills will have the following certifications:

• SFI Certified Fiber Sourcing – U.S. mills' procurement system
• SFI chain-of-custody certification – U.S. mills
• PEFC chain-of-custody certification – all pulp and paper mills
• FSC chain-of-custody certification – all pulp and paper mills

Smurfit-Stone's Matane, Quebec, mill has also been recommended for PEFC and FSC certifications, and its La Tuque, Quebec, mill received PEFC and FSC certifications in 2009.  Smurfit-Stone anticipates extending the chain-of-custody certifications within its converting operations throughout 2011 and 2012.

Smurfit-Stone Container Corporation is one of the industry's leading integrated containerboard and corrugated packaging producers and one of the world's largest paper recyclers. The company is a member of the Sustainable Forestry Initiative® and the Chicago Climate Exchange. Smurfit-Stone generated revenue of $5.57 billion in 2009; has led the industry in safety every year since 2001; and conducts its business in compliance with the environmental, health, and safety principles of the American Forest & Paper Association.

www.smurfit-stone.com

SOURCE Smurfit-Stone Container Corporation

Both U.S. and Canadian courts have confirmed the reorganization plans of Smurfit-Stone Container Corporation, clearing the way for the company to emerge from Chapter 11 in the U.S. and CCAA protection in Canada.

"With confirmation of the Plan of Reorganization, Smurfit-Stone is now on a path to emerge from our financial restructuring on June 30," said Patrick J. Moore, chairman and CEO of Smurfit-Stone. "Upon consummation of the restructuring plan, we will have successfully reduced our debt and realigned our capital structure in a way that dramatically improves the company's prospects for long-term growth and profitability."

"I particularly want to thank our employees, whose hard work and enduring dedication have allowed us to continue meeting and exceeding our customers' expectations throughout this process and whose efforts contributed greatly to positioning us for a successful emergence," continued Moore.

Smurfit-Stone's plan of reorganization (POR) received overwhelming support from its creditor constituencies. On May 24, 2010, Smurfit-Stone announced that it reached a resolution with certain holders of the company's preferred and common stock. The resolution provides that 4.5% of the new common stock of the reorganized company that the POR previously provided for distribution to unsecured creditors will now be distributed to the company's current stockholders, with 2.25% being distributed pro rata to the holders of the company's preferred stock and 2.25% being distributed pro rata to holders of the company's common stock.

Smurfit-Stone Container is an integrated containerboard and corrugated packaging producer.