SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported): April 28, 1997
Stone Container Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-3439 36-2041256
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
150 North Michigan Avenue, Chicago, Illinois 60601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (312) 346-6600
N/A
(Former name or former address, if changed since last report.)
Item 5. Other Events
On April 24, 1997, Stone Container Corporation issued a
press release, which is attached as Exhibit 20 hereto and is
incorporated by reference herein.
Item 7. Financial Statements and Exhibits
(c) Exhibits
The exhibits accompanying this report are listed in the
accompanying Exhibit Index.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
STONE CONTAINER CORPORATION
By:LESLIE T. LEDERER
Leslie T. Lederer
Vice President, Secretary
and Counsel
Date: April 28, 1997
EXHIBIT INDEX
The following exhibit is filed herewith as noted below.
Exhibit No. Exhibit
20 Press release issued by Stone Container
Corporation dated April 24, 1997
TRADED: NYSE
SYMBOL: STO
For more information contact:
RANDOLPH C. READ IRA N. STONE
SENIOR VICE PRESIDENT - SENIOR VICE PRESIDENT -
CHIEF FINANCIAL & PLANNING OFFICER CHIEF MARKETING,
(312)580-4604 COMMUNICATIONS &
PUBLIC AFFAIRS OFFICER
(312)580-4608
For Immediate Release:
STONE CONTAINER ANNOUNCES FIRST QUARTER RESULTS
CHICAGO, April 24, 1997 -- Stone Container Corporation
reported a net loss of $96.7 million, or $0.99 per share, for
the first quarter of 1997, compared to net income of $32.4
million, or $0.30 per fully diluted share, for the first quarter
of 1996.
Sales for the first quarter of 1997 were $1.18 billion,
compared to $1.32 billion for the first quarter of 1996. First
quarter 1996 results included approximately $59 million of retail
bag sales, now reported as part of S & G Packaging, a non-
consolidated affiliate of the Company.
Roger W. Stone, chairman, president and chief executive
officer of Stone Container, said that continued low selling
prices for the Company's core products -- the result of industry-
wide overproduction -- led to the loss.
In response to these conditions, Stone Container has
announced significant market-related downtime at its pulp and
paper mills. Including its joint venture company, Florida Coast
Paper Co., Stone will remove a minimum of 350,000 tons of pulp
and paper production in the second quarter, 239,000 of which is
for inventory balancing purposes. The announced downtime is in
addition to approximately 97,000 tons taken in the first quarter,
72,000 of which was for inventory balancing purposes.
Stone-Consolidated Corporation, the Canadian publication
papers company in which Stone Container has a major interest,
removed approximately 43,000 metric tonnes of newsprint and
groundwood papers from production during the first quarter.
Also during the quarter, Stone-Consolidated Corporation
announced its intention to merge with Abitibi-Price, creating the
largest publication paper company in the world.
"This is an exciting opportunity for Stone Container and our
stockholders," said Roger Stone. "The proposed merger will
likely significantly enhance the value of our investment in that
company."
Looking ahead, he foresees a return to more normal market
conditions as early as this summer.
"Demand for our core products remains strong and downtime is
returning inventories to more normal levels," Stone said. "In
this improving environment, we have implemented a containerboard
price increase in Europe, and recently announced a $50 per ton
increase in our domestic containerboard products effective June
1. The company has also announced an increase in market pulp
prices effective in May, and Stone-Consolidated announced a $75
per tonne price increase for newsprint that the company believes
will be fully implemented during the second quarter.
"I am confident that the process of margin restoration has
begun and will continue throughout the year," he concluded.
Stone Container Corporation is a multinational paper, paper
packaging and pulp company. Its product line includes
containerboard, corrugated containers, kraft paper, paper bags
and sacks, market pulp and, through its investment in Stone-
Consolidated Corporation, newsprint and groundwood papers.
Headquartered in Chicago, the Company has manufacturing
facilities and sales offices in North America, Europe, Central
and South America, Australia and Asia.
###
(see tabular attached)
<PAGE>
<TABLE>
STONE CONTAINER CORPORATION (NYSE)
SUMMARY (a)
<CAPTION>
Three months ended
March 31,
_______________________
(dollars in millions except per share amounts) 1997 1996
_____________________________________________ __________ ___________
<S> <C> <C>
Net sales.................................... $ 1,180.8 $ 1,321.5
Income (loss) before interest and taxes...... (46.9) 145.6
Interest expense............................. (107.4) (99.6)
__________ ___________
Income (loss) before income taxes and
minority interest.......................... (154.3) 46.0
(Provision) credit for income taxes.......... 57.6 (14.6)
Minority interest............................ -- 1.0
Net income (loss)............................ $ (96.7) $ 32.4
Net income (loss) applicable to common shares $ (98.7) $ 30.4
========== ==========
Per share of common stock:
Net income (loss):
Primary...................................... $ (.99) $ .31
========== ==========
Fully diluted................................ $ * $ .30
========== ==========
Average common shares outstanding (in millions):
Primary...................................... 99.3 99.2
========== ==========
Fully Diluted................................ * 104.4
========== ==========
Unit Statistics:
Mill tonnage produced (in thousands
of short tons):
Containerboard and kraft paper (b)......... 1,383 1,140
Publication papers (c)..................... 326 333
Market pulp (d)............................ 256 237
Other...................................... 20 22
__________ ___________
Total mill tonnage produced............. 1,985 1,732
========== ===========
Containerboard and kraft paper converted
(in thousands of short tons)............... 1,062 1,078
Corrugated shipments (in billions of
square feet)............................... 13.2 13.1
Paper bag and sack shipments (in thousands
of short tons)(e).......................... 118 143
<FN>
_________________
Notes:
(a) Subject to year-end audit
(b) Includes 50 percent of the Florida Coast mill effective May 30,
1996.
(c) Includes 46.6 percent of Stone-Consolidated Corporation.
(d) Includes 45 percent of the Celgar mill.
(e) Includes 65 percent of S&G Packaging effective July 13,
1996.
*Fully diluted amounts and average shares outstanding have not been
presented due to anti-dilutive nature.
</TABLE>
