Smurfit Stone, Jefferson Smurfit's US associate, has reported a third-quarter net loss of $16 million (€17.2 million) compared to net earnings of $8 million in the same period a year earlier.
But the company said that despite the loss, this was the third consecutive quarter in which Smurfit Stone had recorded improved profits from its operations.
Company president and chief executive Mr Ray Curran said the improvement was achieved despite several negatives. Hurricane Floyd forced the firm to take an extended break in production at its Philadelphia boxboard mill because of severe flooding and to temporarily close three containerboard mills.
It also recorded charges related to plant rationalisations which had an impact of three cents per share and the company had to absorb higher recycled fibre costs.
However, the successful implementation of corrugated container price increases accounted for the improvement in profits over recent quarters.
"Our shipment volumes are running ahead of expectations. In fact, our September shipments were the strongest since the early spring," Mr Curran said.
But container volumes were down marginally on year-ago levels because of the continuing rationalisation of the container plant system, he said.
Smurfit-Stone said it expected earnings to continue to improve in the fourth quarter.
"We are currently experiencing healthy packaging demand. We expect to realise the full impact of container price improvements in the fourth quarter," Mr Curran said.
Third-quarter sales rose to $1.8 billion, compared to $758 million a year earlier. The loss per share was seven cents compared to earnings of seven cents in the third quarter last year.
The company said its total debt now stands at $5.96 million. Following several disposals, which should be completed in the fourth quarter, the proceeds from divestment should reach $1.8 billion, ahead of target for the year-end.
Smurfit Stone was formed in November 1998 as a result of the merger of Jefferson Smurfit Corporation in the US and the Stone Container Corporation. It operates 300 facilities worldwide and employs more than 30,000 people.
