Half year profits at Jefferson Smurfit fell 19 per cent in the first half of the year to €146 million. The packaging group blamed rising input costs and the weakening dollar for the shortfall.
Earnings per share dropped by 23 per cent to 6.6 cents.
At the end of the first quarter Smurfit said business conditions and sentiment had improved but this forecast has been affected by greater than expected costs of waste fibre and the weak dollar which has could put back growth in its European and Latin American markets.
Net sales for the first half were €2,363 million, a 2 per cent increase on the first half of 2001.
Smurfit’s US subsidiary, Smurfit Stone, reported profits of $58 million in the first half of the year compared to $86 million a year ago.
Referring to the offer for the company by Madison Dearborn, Smurfit said that the offer has now been extended until August 20th and remains conditional on the satisfaction of various conditions, including the approval of the spin-off and the related capital reduction by the High Court.
Shareholders will be notified nearer to the time as to when the offer is expected to become unconditional in all respects.
As the Madison Dearborn offer is conditional on Smurfit not paying further dividends to shareholders the half year dividend has been waived. However if the offer is not completed, the half year payment will be paid as part of the full year dividend for 2002.