Investors: Timothy McKenna, 312-580-4637/314-746-1254
Media: Tom Lange, 314-746-1236
Jefferson Smurfit Corporation (U.S.) Reports 1998 Results
Chicago, March 10, 1999 -- Jefferson Smurfit Corporation (U.S.) reported a net loss of $160 million in 1998, compared to a net income of $1 million in 1997. The loss includes aggregate pre-tax charges of $310 million ($187 million after tax) to account for the previously announced restructuring primarily related to mill closures, costs related to the merger of Jefferson Smurfit Corporation and Stone Container Corporation, and a reserve relating to the settlement of litigation. Sales for 1998 were $3.0 billion compared to $2.9 billion in 1997.
Jefferson Smurfit Corporation (U.S.) is an indirect wholly owned subsidiary of Smurfit-Stone Container Corporation (formerly known as Jefferson Smurfit Corporation). The results of Jefferson Smurfit Corporation (U.S.) do not include any of the results of Stone Container Corporation.
In January 1999, Jefferson Smurfit Corporation (U.S.) announced its intention to divest its newsprint subsidiary, Smurfit Newsprint Corporation. These operations are reflected as discontinued operations in the financial statements.
Adobe(r) Acrobat(r) version of the Consolidated Statements of Operations and Supplementary Financial Information (1,300k)
This document contains certain forward-looking statements within the meaning of Section 21 E of the Securities Exchange Act of 1934, as amended, about Jefferson Smurfit Corporation (U.S.) and Smurfit-Stone Container Corporation (the "Corporations"). Although the Corporations believe that, in making any such statements, their expectations are based on reasonable assumptions, any such statement may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. When used in this document, the words "anticipates," "believes," "expects," "intends," and similar expressions as they relate to Jefferson Smurfit Corporation (U.S.) or Smurfit-Stone Container Corporation or its management are intended to identify such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties. Important factors that could cause actual results to differ materially from those in forward-looking statements, certain of which are beyond the control of the Corporations, include: the impact of general economic conditions in the U.S. and Canada and in other countries in which the Corporations and their respective subsidiaries currently do business (including Asia, Europe and Latin and South America); industry conditions, including competition and product and raw material prices; fluctuations in exchange rates and currency values; capital expenditure requirements; legislative or regulatory requirements, particularly concerning environmental matters; interest rates; access to capital markets; the timing of and value received in connection with asset divestitures; and obtaining required approvals, if any, of debt holders. The actual results, performance or achievement by the Corporations could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations and financial condition of the Corporations.