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Smurfit-Stone operating income improves to $293 million in 2009
By Caroline Salls
Pittsburgh, March 2 - Smurfit-Stone Container Corp. reported $293 million of operating income for 2009 on $5.574 billion in net sales, according to a 10-K filed Tuesday with the Securities and Exchange Commission.
The figures compared to a $2.76 million operating loss posted for 2008 on $7.042 billion in net sales.
The net income for the year ended Dec. 31 was $8 million, improving from a $2.818 billion 2008 net loss.
According to the 10-K, the company's operating results improved in 2009 primarily as a result of the alternative fuel tax credit and lower costs, but were significantly impacted by lower sales volume and lower average sales prices as a result of the weak economic conditions.
Smurfit-Stone said it expects to emerge from bankruptcy in the second quarter of 2010 and expects its operating performance to improve this year.
"As the economy continues to improve, we expect higher selling prices for containerboard and corrugated containers compared to December 2009 levels," the company said in the filing.
"We expect our 2010 results to benefit from lower costs related to operating improvements and reduced market related downtime."
However, the company said it expects the improvement to be partially offset by higher costs, including reclaimed fiber and energy.
Smurfit-Stone had $704 million in cash and cash equivalents at Dec. 31, up from $126 million at Dec. 31, 2008.
Smurfit-Stone, a Chicago-based manufacturer of paperboard and paper-based packaging, filed for bankruptcy on Jan. 26, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10235.
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