SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarterly period ended September 30, 1998.
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act 1934
For the transition period from _____________________to
_________________.
Commission file number 1-3439
STONE CONTAINER CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 36-2041256
(State or other jurisdiction of incorporation or organization)
(I.R.S. employer identification no.)
150 North Michigan Avenue, Chicago, Illinois 60601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: 312-346-6600
Indicate by check mark (X) whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirement for the past 90 days.
Yes X No ______
Number of common shares outstanding as of November 10, 1998:
104,977,686
The registrant hereby amends the following item of its Quarterly
Report on Form 10-Q for the period ended September 30, 1998 by
adding the following paragraphs at the end of the referenced
caption.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition and Liquidity
Year 2000
The Company has conducted a review of its existing computer
software and hardware, as well as the embedded systems in its
buildings, equipment and other infrastructure in order to assess
the extent of the Year 2000 problem. The Company is currently
making the necessary modifications and replacements to bring all
of its systems into compliance by year 2000. In addition, the
company is communicating with its critical suppliers to ascertain
that they are addressing potential Year 2000 issues as well. The
Company is using internal personnel, contract programmers and
vendors to identify Year 2000 problems, modify code and test the
modifications. The Company expects to do extensive testing of
these new systems during 1999.
Total expenditures on Year 2000 projects are currently estimated
to be approximately $25 million. Many of the projects that have
been identified include enhancements that will enable the Company
to reduce or avoid costs and operate many of its production
facilities more efficiently. Some of these projects have been
accelerated in order to replace existing systems that cannot be
brought into compliance by the year 2000. Approximately $4
million has been expended to date through September 30, 1998 and
virtually all of the remaining $21 million will be spent by the
end of 1999.
The Company expects its operating, financial and administrative
systems to be compliant before the end of 1999 and does not
anticipate any disruption to its operations. In the event the
Company does not complete its plan to bring systems into
compliance before the year 2000, there could be severe disruption
in the operation of its process control and other manufacturing
systems, financial systems and administrative systems.
Production problems and delayed product deliveries could result
in a loss of customers. Delays in invoicing customer shipments
could cause a slowdown in cash receipts, which could affect the
Company's ability to meet its financial obligations. However, if
project completion delays become evident, the Company believes it
would have sufficient time to take the necessary steps to have
employees or temporary workers manually perform operations
previously performed by computers.
The estimates and conclusions herein contain forward-looking
statements and are based on management's best estimate of future
events. Risks to completing the Company's plan to bring all of
its systems into compliance before the year 2000 include the
availability of resources and the ability of suppliers to bring
their systems into Year 2000 compliance.
SIGNATURES
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, thereunto duly authorized.
STONE CONTAINER CORPORATION
By: \\ PAUL K. KAUFMANN
Paul K. Kaufmann
Vice President and
Corporate Controller
(Principal Accounting Officer)
Date: January 29, 1999
