Smurfit-Stone presents results, projections to prospective lenders

By Caroline Salls

Pittsburgh, Feb. 8 - Smurfit-Stone Container Corp. presented its fourth-quarter operating results and projections through 2014 to prospective lenders Monday, according to an 8-K filed with the Securities and Exchange Commission.

The company posted $614.33 million of EBITDA for the quarter ended Dec. 31 on $1.379 billion in net sales.

Smurfit-Stone's projections show it will have $384.59 million of EBITDA for 2010, $515.55 million for 2011, $602.49 million for 2012, $627.96 million for 2013 and $655.27 million for 2014.

Net sales for 2010 are projected to be $1.413 billion for the first quarter, $1.465 billion for the second quarter, $1.529 billion for the third quarter and $1.477 billion for the fourth quarter.

The company reported $8.42 million of net income for the fourth quarter.

The projected net loss for 2010 is $123.71 million, while the company expects to have $42.28 million in net income in 2011, $98.2 million in 2012, $115.52 million in 2013 and $133.67 million in 2014.

In addition, Smurfit-Stone reported a $704 million cash balance at Dec. 31, and it projects a $308 million cash balance for 2010, a $290 million cash balance for 2011, a $339 million cash balance for 2012, a $350 million cash balance for 2013 and a $374 million cash balance for 2014.

According to the 8-K, increased pricing is expected to begin to take effect in the middle of 2010, leading to significantly improved profitability and cash flow in the second half of the year.

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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