Smurfit Income Drops
Smurfit-Stone Container Corp. reported net income of $28 million for the third quarter of 2001. This compares to net income of $79 million in the third quarter of 2000. Sales for the three- month period were $2.088 billion, down 10.3 percent from third quarter year-ago levels.
For the first nine months, Smurfit-Stone reported net income of $52 million, compared with net income a year ago for the same period of $157 million. Sales for the nine months were $6.386 billion, compared with $6.554 billion in the same period last year.
Weyerhaeuser Reports Sharp Drop in Earnings
Weyerhaeuser Co. reported third-quarter net earnings of $91 million. This compares with net earnings of $199 million for the same period last year.
The nonrecurring after-tax items include a $20 million charge associated with the announcement that Weyerhaeuser will permanently close one containerboard machine in Springfield, Ore., and a fine paper machine and associated sheeter in Longview, Wash.
Excluding nonrecurring after-tax items in both years, third-quarter earnings were $97 million, compared with $199 million for 2000.
Net sales for the third quarter of 2001 were $3.7 billion, down from $3.9 billion for the same quarter last year.
For the first nine months of 2001, Weyerhaeuser reported net earnings of $369 million, compared with $646 million. Excluding nonrecurring after-tax items in both years, results for the first nine months this year were $392 million, compared with $728 million in 2000.
Chesapeake Sees Increase in Income for Quarter
Chesapeake Corporation announced net income from continuing operations before nonrecurring items for the third quarter of 2001 of $7.0 million, reflecting an increase of 18 percent over third quarter 2000 net income from continuing operations before nonrecurring items of $5.9 million.
Third quarter 2001 results include a previously announced nonrecurring, after-tax charge of approximately $5.0 million to recognize costs primarily associated with the reduction of corporate headquarters staff. The results for the third quarter include a nonrecurring charge of about $2.7 million to recognize an increase in investment banking defense costs. After giving effect to these nonrecurring charges, net income from continuing operations for the third quarter was $2 million, compared to net income from continuing operations for the third quarter of 2000 of $3.2 million.
Net income from continuing operations for the first nine months of 2001 was $4.9 million, compared to net income from continuing operations for the comparable period of 2000 of $8.9 million.
Net sales from continuing operations for the third quarter of 2001 were $204.6 million, up 23 percent over third quarter 2000 net sales from continuing operations of $165.9 million. On a pro forma basis, net sales from continuing operations for the third quarter of 2001 were up 2 percent compared to the third quarter of 2000. On a constant currency basis, net sales from continuing operations for the third quarter of 2001 increased 5 percent compared to pro forma net sales for the third quarter of 2000. Similarly, for the nine months ended September 30, 2001, net sales on a constant currency basis increased 4 percent compared with 2000 pro forma results. The increases in constant currency net sales for the quarter and nine months ended September 30, 2001, were primarily due to volume growth in the Paperboard Packaging segment, partially offset by lower land sales.
Carastaur Releases Figures for Quarter
Caraustar Industries, Inc. announced that revenues for the third quarter were $221.0 million, a decrease of 6.6 percent from revenues of $236.7 million for the same quarter of 2000. Net income for the third quarter of 2001 was $955,000, compared to third quarter 2000 net loss of $2.5 million.
For the nine-month period, revenues were $657.4 million, an 11.2 percent decrease from revenues of $740.4 million for the first nine months of 2000. The net loss for the first nine months of 2001 was $9.5 million compared to net income of $9.1 million in the same period last year.
The net loss for the first nine months of 2001 includes pre-tax restructuring charges recorded in the first quarter of $4.4 million related to the permanent shutdown of the company’s Chicago paperboard mill and $2.6 million related to the consolidation of the operations at its Salt Lake City, Utah carton plant into its Denver carton plant.
Total volume for the company declined three percent to 262 thousand tons in the third quarter of 2001 compared to the third quarter of 2000. Paperboard mill volume decreased four percent to 231 thousand tons, while converted products volume declined one percent to 119 thousand tons. When compared to the second quarter of 2001, however, total volume increased two percent with gypsum facings and folding carton board each showing some improvement.
Gross paperboard margins at its mills decreased $5 per ton in the third quarter of 2001 compared to the second quarter of 2001, as paperboard selling prices decreased $4 per ton and recovered fiber costs increased $1 per ton.
Energy costs decreased $2 per ton in the third quarter of 2001 compared to the second quarter of 2001. Paperboard margins on tubes and cores decreased $14 per ton, as selling prices declined $18 per ton and paperboard costs decreased $4 per ton in the third quarter of 2001 compared to the second quarter of 2001.
Abitibi Reports Drop in Sales, Earnings
Abitibi-Consolidated announced third quarter earnings of $45 million on sales of $1.4 billion. These results compare to $108 million, or 24 cents a share on sales of $1.7 billion in the third quarter of 2000, and $108 million on sales of $1.5 billion in the second quarter of this year.
For the first nine months of 2001, the company recorded earnings of $285 million, compared to $220 million for the first nine months of 2000.
Compared to the same period last year, approximately 416,000 fewer metric tons of newsprint were shipped during the quarter. This decrease is attributable to the company's previously announced high-cost capacity closures, as well as 263,000 metric tons of downtime due to prevailing market conditions.