Smurfit-Stone Container Corp.

Smurfit-Stone Container Corporation reported a net loss of $92 million for the fourth quarter of 2003, compared to a net loss of $15 million for the fourth quarter of 2002. Sales for the fourth quarter were $1.9 billion, roughly flat with sales in the fourth quarter of 2002.

For the full year 2003, the company reported a net loss of $208 million, compared to net income of $54 million in 2002. Sales for the full year were $7.7 billion, compared to $7.5 billion in 2002.

Fourth quarter results include a pretax restructuring charge of $107 million. The rationalization process will result in a total workforce reduction of approximately 1,400 employees and projected savings of $140 million on an annualized basis.

Patrick J. Moore, chairman, president and chief executive officer, said, "Although board and packaging prices continued to trend downward, demand for packaging improved compared to the third quarter. In what is seasonally a softer period, the company's U.S. corrugated shipments improved 1.7 percent on a per day basis, compared to the third quarter." Shipments were flat compared to the year-ago quarter. The company's operating rate for the containerboard mills was 88.5 percent, an improvement from the third quarter rate of 85.9 percent. In the fourth quarter, U.S. corrugated container prices declined 1.2 percent, and linerboard prices declined 1.5 percent, compared to the third quarter.

In the consumer packaging business, operating profits declined compared to the third quarter of 2003, and fourth quarter of 2002. Both major businesses - folding carton and multiwall bag - contended with price pressures in the quarter. In addition, higher employee benefit and energy costs, and boxboard mill downtime, had a negative effect on earnings versus the prior year. Folding carton volume rose 1.8 percent and multiwall bag volumes increased 3.1 percent as compared to the fourth quarter of 2002.

"As we enter 2004, we continue to contend with escalated energy costs and higher employee benefit expenses. In addition, we anticipate higher recycled fiber costs. However, we are encouraged by signs of economic recovery and a better outlook for manufacturing, which should lead to improved demand for packaging.

"While containerboard and corrugated container pricing will be lower in the first quarter, we recently communicated price increases to our customers. These increases will be implemented in the first quarter with the full benefit realized in the second half. Our focus for 2004 will be on improving our sales, marketing, and production efforts to respond to a changing environment, achieving the benefits of cost- cutting initiatives, and maximizing cash flow to reduce debt."

Kimberly-Clark

Kimberly-Clark Corp. reported sales in the fourth quarter of 2003 were $3.7 billion, an increase of nearly 11 percent over the prior year.

Sales growth in the fourth quarter of 2003 benefited from higher sales volumes and favorable currency exchange rates, each contributing more than 5 percent. Sales volumes rose in all three of the company's global businesses, driven by the strength of its brand franchises and product innovation.

The consolidation of Klabin Kimberly S.A., the company's former equity affiliate in Brazil, and the acquisition of Klucze, Poland's leading consumer tissue business, also helped boost sales volumes. Net selling prices were even with the prior year on continued high levels of competitive promotional spending.

The company's bottom-line results for the quarter also reflect pretax cost savings of over $50 million that more than offset higher noncash pension expense of about $35 million. Increased investments in marketing and research spending and, as previously disclosed, a lower effective tax rate were also key factors.

Sales grew versus the prior year in each of the company's business segments -- Consumer Tissue, Personal Care and Business-to-Business -- and in all four major regions of the world -- North America, Europe, Latin America and Asia. The aforementioned Klabin Kimberly and Klucze transactions, which took place in August 2003 and February 2003, respectively, added approximately 2 percent to sales in the quarter.

Operating profit in the fourth quarter of 2003 was $622.2 million, more than 17 percent greater than the prior year, and up almost 11 percent compared with operating profit before unusual items of $561.5 million in 2002. The benefits from volume growth, changes in foreign exchange rates and cost savings more than offset the combined impact of higher pension expense, a rise in fiber and energy costs of about $20 million and increased spending on strategic marketing and research as well as general expenses.

For the full year of 2003, sales of $14.3 billion were up nearly 6 percent from $13.6 billion in the prior year. Excluding currency effects, sales were up about 2 percent. Operating profit declined 2 percent to $2,412.4 million in 2003 versus $2,463.8 million in 2002.

Chesapeake Corp.

Chesapeake Corp. reported net income for the fourth quarter of 2003 of $11 million for the fourth quarter of 2002 of $11.4 million. Net income for the year was $26.5 million, compared to $21.9 million.

"Overall we are pleased with the results for 2003," said Thomas H. Johnson, Chesapeake's chairman, president and CEO. "Although we were faced with pricing pressures throughout most of our operations, uncertain economic and political climates around the world and unfavorable weather conditions in Europe, we delivered on expected results for the year. We believe that our leadership position in selected markets and relentless attention to detail and costs has paid off. In addition, we are particularly pleased with the strong cash flow we generated from operating activities and the significant progress we made in mitigating the company's environmental exposure with the settlement of indemnity obligations related to the sale of our former kraft products mill.

Net sales for the fourth quarter of 2003 increased 3 percent over the comparable period in 2002. The increase in net sales for the quarter was primarily due to favorable foreign currency exchange rates and increased volume in the plastic packaging segment.

This increase was partially offset by lower sales in the land development segment. The plastic packaging segment continued to realize strong volume in the food and household market sector during the fourth quarter.

Excluding the effects of favorable foreign currency exchange rates, net sales for the paperboard packaging segment remained relatively flat compared to the prior year quarter, as increased volume in the pharmaceutical market sector was offset by continued lower volume of alcoholic drink cartons in the international and branded market sector.

The volumes across the remaining market sectors in the paperboard packaging segment were relatively consistent compared to the prior year quarter.

The increase in paperboard packaging EBIT for the fourth quarter was primarily due to favorable foreign currency exchange rates and the gain of $4.2 million from an insurance claim for equipment damaged in a fire earlier in the year.

Net sales for 2003 increased 9 percent over net sales for 2002. The increase in net sales for the year was primarily due to favorable foreign currency exchange rates and increased volume in the plastic packaging segment, offset in part by lower land development sales.

Excluding the impact of favorable foreign currency exchange rates, the plastics segment realized strong sales volume in the food and household market sector for 2003 as a result of recent investments in the African markets and higher volume due to hot summer conditions in Europe.

Excluding the effects of favorable foreign currency exchange rates, net sales for the paperboard packaging segment decreased approximately 1 percent year-over-year, as volumes in the pharmaceutical and luxury packaging market sectors increased but were offset by continued lower volume of alcoholic drink and confectionery cartons in the international and branded market sector.

Sonoco

Sonoco reported that sales from continuing operations for the fourth quarter were $730.2 million, versus $699.9 million for the same period in 2002. Net income from continuing operations for the fourth quarter was $18.9 million, versus $30.5 million in the fourth quarter of 2002. Net income

"Net income for the fourth quarter was positively impacted primarily by the gain on the sale of Sonoco's High Density Film business, lower costs resulting from productivity initiatives including restructuring and a lower effective tax rate. Results were negatively impacted principally due to restructuring charges related to the announcements during the quarter of four plant closings and additional restructuring costs related to previously announced restructuring actions. The Company also incurred operating costs not charged to restructuring relating to the transition of business from its Fulton, N.Y., flexibles plant to other Sonoco facilities during the fourth quarter," said Harris DeLoach, CEO of Sonoco.

"Sales for the fourth quarter were up approximately 4 percent over the same period last year, primarily reflecting the favorable impact of foreign exchange translation and slightly higher volumes," DeLoach observed.

"Company-wide volumes during the quarter were up by approximately 1 percent, versus the same period last year. Volume increases in the Company's industrial packaging segment resulted primarily from higher demand for global engineered carriers and protective packaging. In the consumer packaging segment, volumes declined, compared with the fourth quarter of 2002, due to decreases in flexible packaging, partially offset by improvements in rigid paper and plastics and closures," stated DeLoach.

For the year ended December 31, net income from continuing operations for 2003 was $78.2 million vs. $125.5 in the same period last year. Sales from continuing operations for 2003 were $2.8 billion, versus $2.7 billion in the same period last year.

Fourth quarter 2003 sales for the consumer packaging segment were $328.4 million, versus $324.2 million in the same period for 2002. Operating profit for this segment was $20.1 million, versus $22 million in the fourth quarter of 2002.

Fourth quarter 2003 sales for the industrial packaging segment were $401.8 million, versus $375.7 million in the same period in 2002. Operating profit for the industrial packaging segment for the fourth quarter 2003 was $30.7 million, versus $36.4 million in the fourth quarter of 2002.

Abitibi-Consolidated

Abitibi-Consolidated Inc. reported a fourth quarter loss today of $80 million, compared to net earnings of $29 million in the same quarter of 2002.

Sales in the quarter amounted to $1.2 billion compared with $1.3 billion in Q4 of 2002. The operating loss from continuing operations was $210 million compared with an operating profit from continuing operations of $18 million in the fourth quarter of 2002.

The fourth quarter operating income was negatively impacted by pre-tax asset write-offs of $67 million taken for the permanent closure of two newsprint machines at the end of 2003, one at Port-Alfred, Quebec and one at Sheldon, Texas. An additional $67 million pre-tax provision was taken for severance and other costs related to the indefinite idling of the Port-Alfred and Lufkin, Texas mills at the end of 2003.

For all of 2003, net earnings were $179 million on sales of $4.8 billion compared with 2002 net earnings of $259 million on sales of $5.1 billion. This includes an after-tax gain of $622 million on the translation of foreign currencies compared to $56 million in 2002. The operating loss from continuing operations amounted to $322 million for the year, compared to an operating profit from continuing operations of $182 million in 2002.