Smurfit-Stone Reports Income Increase

Smurfit-Stone Container Corp. reported income before extraordinary item of $27 million for the second quarter of 2002. Income before extraordinary item in the year-ago quarter was $17 million, or $.06 per diluted share. Sales for the second quarter of 2002 were $2,051 million, compared to $2,115 million in the second quarter of last year.

For the first half ended June 30, 2002, Smurfit-Stone reported income before extraordinary item of $36 million, compared to year-ago earnings of $36 million. Sales for the first half were $3.981 billion, compared to $4.298 billion in the first half of 2001.

Earnings for the second quarter and first half of 2001 included goodwill amortization of $22 million and $45 million, , respectively.

Patrick J. Moore, president and CEO, said that recovering demand, renewed customer focus and improved volumes in folding cartons and multiwall bags contributed to the profit increase. "The improvement in container shipments reflects improved demand and the company's success at steadily rebuilding its customer base after three years of restructuring. Corrugated container pricing remained relatively stable in the quarter."

Lower energy expenses and increases in product volumes offset higher recovered fiber costs. The company took 131,000 tons of economic downtime in its containerboard system in the second quarter, compared to 279,000 tons in the first quarter, because of rebounding demand.

Total containerboard downtime in the second quarter was 215,000 tons compared to 320,000 in the first quarter. Despite the lower levels of downtime, the company's containerboard inventories declined slightly from the end of the first quarter.

"Although we will continue to face significant challenges in the second half of 2002," said Moore, "Smurfit-Stone has met or exceeded its cash flow targets through a difficult cyclical downturn. We are well positioned to capitalize on a cyclical upturn across our product lines. We plan to continue our strategic focus on profitable revenue growth, cost cutting and debt reduction."

Weyerhaeuser Reports Dip in Earnings

Weyerhaeuser Co. reported second quarter net earnings of $72 million on net sales of $4.9 billion.

This compares with $171 million on sales of $3.8 billion for the second quarter of 2001.

For the first six months, net earnings before nonrecurring items were $146 million. This compares with $307 million for the same period last year.

"Our second quarter results were mixed, reflecting the differential performance of the markets in which we operate and effects of the overvalued U.S. dollar," said Steven R. Rogel, chairman, president and CEO. "We started to see some improvement in the pulp, paper and containerboard markets due in part to the recent weakening of the dollar. The wood product markets continued to be unsettled due to the Canadian softwood lumber issue and excess supply in some product lines. Our real estate business continued to perform well. During the quarter, we continued to focus on integrating Willamette people, practices and operations and identifying synergies."

K-C Posts Strong Numbers for Quarter

Kimberly-Clark said its second-quarter results increased from a year ago on higher sales volumes of consumer tissue and personal care products.

The company earned $424.6 million, compared with $415.4 million in the year-ago quarter.

Sales were about $3.4 billion, up 5 percent from $3.2 billion last year, due mainly to higher worldwide volumes. Overall sales volumes increased by 8 percent, while competition in toilet paper and diaper divisions reduced sales by about 2 percent.

Consumer tissue sales, including toilet paper and paper towels, were up almost 10 percent for the quarter, while personal care product sales increased almost 4 percent. Business-to-business sales increases were offset by declining selling prices.