Davy Stockbrokers has cut its earnings forecasts for the Jefferson Smurfit Group because of ongoing weakness in the US containerboard/corrugated box industry. The earnings per share (e.p.s.) forecast (pre-goodwill) for the current year has been reduced by 16 per cent from 20.2 cents to 16.9 cents (25.65p-21.46p), and the forecast for 2002 by 6 per cent, from 23.2 cents to 21.8 cents.

The forecast revision relates almost entirely to the Smurfit Group's US associate operation, SSCC, in which it has a 29.5 per cent stake. Davy said Smurfit Group operations in Europe were still holding up relatively well in terms of both prices and volumes. SSCC does not contribute cash to the group so the earnings revision has no cash implications for the Group and it does not impact on Group earnings before interest, tax, depreciation and amortisation (EBITDA), according to Davy analyst Mr Joe Burnell.