Jul 26, 2006. /Lesprom Network/. Smurfit-Stone Container Corporation reported on July 26 a net loss available to common stockholders of $44 million, or $0.17 per diluted share, for the second quarter of 2006. These results compare with net income available to common stockholders of $1 million or breakeven on a diluted share basis for the second quarter of 2005. Second quarter 2006 results include: • A loss of $0.07 per diluted share on the early extinguishment of debt related to the sale of the consumer packaging segment, • A loss of $0.04 per diluted share from non-cash foreign currency charges, and • A restructuring charge of $0.03 per diluted share primarily related to the closure of corrugated container facilities. Sales for the three month period were $1.76 billion, flat with the second quarter of 2005. For the first half of 2006, Smurfit-Stone reported a net loss available to common stockholders of $108 million, or $0.42 per diluted share, compared to a year ago net loss of $18 million, or $0.07 per diluted share. Sales for the first half of the year were $3.5 billion, consistent with the first half of 2005. The results of operations from the consumer packaging segment have been reclassified as discontinued operations for all periods presented. Net sales for this segment were $391 million and $787 million, respectively, for the three and six months ended June 30, 2006. Commenting on the second quarter, Patrick J. Moore, chairman and chief executive officer, said, “Favorable market conditions, increased containerboard production and higher average prices for our products drove the improvement in our results from the first quarter. Excluding unusual items, adjusted net loss per diluted share was $0.03, consistent with our prior guidance. Our mills ran at full capacity during the second quarter. Average per-day box shipments were up from the same period last year, despite the closure of seven box plants since the second quarter of 2005. Moreover, the sale of our consumer packaging segment for $1.04 billion was an important milestone, thereby allowing us to focus on our core business.” Smurfit-Stone’s containerboard and corrugated containers segment reported a second quarter 2006 operating profit of $118 million, up from a profit of $10 million in the first quarter and $94 million in the second quarter of 2005. The company’s average domestic kraft linerboard price increased 10.1% from the prior quarter and its corrugated container average price increased 4.3% on a sequential basis. Total reported debt at the end of the quarter was $3.8 billion, a decrease of $904 million since March 31, 2006, largely due to the application of the consumer packaging segment sale proceeds. The company benefited $45 million from cost reduction efforts under its strategic initiatives in the second quarter compared to cost levels prior to the commencement of the initiatives. Cumulative 2006 initiative benefits from cost reduction efforts total $78 million. Benefits were primarily driven by facility closures, including two containerboard mills and seven corrugated facilities. As a result of these activities and improved productivity, since June 2005 total headcount has been reduced by over 2 500, or more than 9%, excluding the headcount reduction associated with the sale of consumer packaging. Commenting on the outlook, Mr. Moore said, “I’m optimistic about the outlook for our business. Solid demand for our products and low containerboard inventory levels should drive continued average price improvement for the balance of 2006 versus the first half. While recycled fiber prices and transportation costs are expected to increase, many input costs will likely moderate. We are encouraged by the initial progress on our strategic initiatives, and I look forward to a return to profitability in the third quarter 2006.” Smurfit-Stone Container Corporation is the industry’s premier integrated paperboard and paper-based packaging manufacturer. Smurfit-Stone is a leading producer of containerboard, including white top linerboard and recycled medium, kraft paper, corrugated containers, point-of-purchase displays, and solid bleached sulfate. The company is one of the world’s largest collectors and marketers of recovered fiber. Smurfit-Stone operates approximately 200 facilities located primarily in the U.S., Canada and Mexico, and employs approximately 27 000 people.