Smurfit-Stone Container Corp. reported a net loss of $88 million in the first quarter of 1999, compared to a net loss of $5 million in the first quarter of 1998.

The first quarter 1999 results included a charge of $0.02 per share, related to the shutdown of former Jefferson Smurfit Corp. packaging plants under the company's restructuring program. First-quarter 1998 results included a charge of $0.11 per diluted share related to the early extinguishment of the company's bank debt and a charge of $0.03 per share related to the cumulative effect of an accounting change. Sales for the 1999 quarter were $1,720 million, compared to $764 million in the same period last year.

Smurfit-Stone Container Corp. was formed on November 18, 1998, as a result of the merger of Jefferson Smurfit Corp. and Stone Container Corp. Smurfit-Stone's first-quarter 1998 results include only the results of Jefferson Smurfit Corp.

Commenting on the results, Ray Curran, president and CEO, said that average prices for corrugated containers, containerboard and newsprint were down compared to the levels of the first quarter and fourth quarter of last year. In addition, the company took market-related downtime in newsprint. These factors had a negative impact on operating income.

However, Curran said, "Demand for packaging products was very strong. As a result, we increased shipment volumes of corrugated containers, folding cartons and industrial bags, compared to the first quarter of 1998. More importantly, the strong demand for corrugated enabled us to stabilize prices and begin to implement a price increase in March." Curran explained that the company gained minimal benefit from the price increase in the first quarter but expected to implement the bulk of the increase in April and May.

Curran noted that the company closed six packaging plants, four corrugated container plants, a pallet plant and a folding carton plant, which were made redundant by the merger. The company expects to continue the restructuring of its packaging system through the year.