Investors: Timothy McKenna, 312-580-4637/314-746-1254
Media: Tom Lange, 314-746-1236
Stone Container Corporation Reports 1998 Results
Chicago, March 10, 1999 -- Stone Container Corporation became a wholly owned subsidiary of Smurfit-Stone Container Corporation (formerly known as Jefferson Smurfit Corporation) on November 18, 1998, as a result of its merger with a subsidiary of Jefferson Smurfit Corporation.
Stone Container Corporation reported a net loss of $756 million for the period January 1, 1998 to November 18, 1998. These "predecessor" operating results were prepared using Stone's historical basis of accounting prior to the merger date.
For the period from November 19, 1998 to December 31, 1998, Stone reported a net loss of $37 million. These "successor" operating results are not comparable to results for prior periods. For financial accounting purposes, the merger was accounted for as an acquisition of Stone using the purchase method of accounting. Accordingly, Stone's assets and liabilities were adjusted to reflect their fair values as of November 18, 1998. The effects resulting from these adjustments are reflected in the successor 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 Stone Container Corporation 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 the Corporations 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 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.