Ecorr August 8, 2006.

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	August 8, 2006 Contents Out of the Box: Industry News New Products and Equipment Orders News from TAPPI Sponsored by Additional Resources TAPPI BUYER'S GUIDE TAPPI CALENDAR OF EVENTS CORRUGATING INTERNATIONAL ALL MAGAZINE ARCHIVES JOIN TAPPI ONLINE SPONSORSHIP OPPORTUNITIES COMMENTS OR SUGGESTIONS For information on sponsoring this newsletter or other sponsorship opportunities with TAPPI, contact Eric Fletty at efletty@tappi.org or by calling +1 770-209-7535. Explore TAPPI's updated website for the latest in news, products and services, and all of your member needs at www.tappi.org. TAPPI assumes no responsibility for statements of fact and opinion; they are not intended nor should they be construed as a solicitation of or suggestion by TAPPI for any agreed-upon course of conduct or concerted action of any kind. To unsubscribe send an email with no subject to lyris@list.tappi.org. Put ci-ecorr in the body. To unsubscribe send a blank email to leave-ci_ecorr_text-3967180O@list.tappi.org. Tell a friend to subscribe to TAPPI CI E-Corr or send a blank email to subscribe-ci-ecorr@list.tappi.org.	OUT OF THE BOX ACCO BRANDS CORP., Lincolnshire, Illinois, a branded office products manufacturer, has agreed to sell its U.S. and Canadian Perma® corrugated storage box brand and assets to Fellowes Inc. a global manufacturer and marketer of business machines, records storage solutions and technology accessories. The Perma business generated approximately $30 million in net revenues in 2005. This transaction is not subject to regulatory approval and is expected to close during the third quarter. PACKAGING CORPORATION OF AMERICA, Lake Forest, Illinois, USA reported second quarter 2006 net income of $32 million, or $0.31 per share. This compares to first quarter 2006 net income of $9 million, or $0.09 per share, and second quarter 2005 net income of $28 million, or $0.26 per share, which included a $0.06 per share dividend paid from Southern Timber Venture (STV), a timberlands joint venture in which PCA holds a 31% ownership interest. Net sales for the second quarter were $551 million, up 6%, compared to $519 million in the second quarter of 2005. Net income for the first six months of 2006 was $41 million, or $0.40 per share, compared to $40 million, or $0.37 per share in 2005 including the $0.06 per share STV dividend. Net sales for the first six months of 2006 were $1.06 billion compared to $1.01 billion in the first six months of 2005. The $0.11 per share increase in earnings, excluding last year's second quarter STV dividend, was driven primarily by higher pricing and volume for both containerboard and corrugated products, which together totaled $0.23 per share. These earnings improvement items were partially offset by higher transportation and energy costs of $0.07 per share, the impact of delaying the Valdosta's annual mill maintenance outage to this year's second quarter of $0.02 per share, and other items totaling $0.03 per share. PCA's corrugated products shipments per workday were up 2.1% compared to last year's second quarter, and were up 1.8% year-to-date. Containerboard production was 592,000 tons, up 1.0% compared to last year's second quarter. PCA containerboard inventories at its mills and box plants were down 3,000 tons compared to the end of the first quarter, and were down 18,000 tons since the beginning of the year. SMURFIT-STONE CONTAINER CORP., Chicago, Illinois, USA reported 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 percent from the prior quarter and its corrugated container average price increased 4.3 percent on a sequential basis. Total reported debt at the end of the quarter was $3,815 million, a decrease of $904 million since March 31, 2006, largely due to the application of the consumer packaging segment sale proceeds. STORA ENSO, Helsinki, Finland has finalized the divestment of the Pankakoski Mill in Finland to an international group of investors led by Dr Dermot Smurfit and including Lansdowne Capital Limited according to the previous announcement from 21 July 2006. Pankakoski Board Mill was divested as part of Stora Enso's Asset Performance Review (APR), which aims to secure a competitive European production base. NEW PRODUCTS AND EQUIPMENT ORDERS MICHELMAN, Cincinnati, Ohio a manufacturer of performance-enhancing additives and coatings, announced that it offers a full line of specialty coatings that protect against corrosion, insect infestation, and provide a high angle of skid for the paperboard and corrugated box industry. The specialty coatings line includes RustBan®, Michelman's newest coating, BugBan™, and SofTak™. All coatings are repulpable, recyclable and energy efficient. With the RustBan® line of coatings there's no need to wrap corrodible products in VCI paper or insert them into a VCI bag, thus eliminating a step in manufacturing/packaging operation. The new BugBan™ line of coatings prevents insect infestation of packaging. It was specifically designed to not just repel insects, but to effectively eliminate the insects before they can penetrate the package-for the entire life of the package. The SofTak™ line of coatings increases the angle of skid of paper. Among many possible uses of SofTak™ coated paper or board is preventing slippage of palletized loads or furniture, temporary hospital flooring, and as floor mats for new buildings to protect highly polished surfaces during a moving phase. PEPPERL+FUCHS, Twinsburg, Ohio, announced that its IDENT Control real-time RFID product identification and data collection now supports DeviceNet and Ethernet/IP bus systems. This functionality facilitates connection to any DeviceNet scanner, or ControlLogix or CompactLogix system using Ethernet/IP. The incorporation of PCCC functionality also allows connection to SLC 5/05 and PLC 5 systems. IDENT Control supports IO sizes form 8 bytes up to 248 bytes. A multiplex option eliminates mutual interference challenges without programming changes, allowing all four system heads to operate simultaneously and in close proximity to one another. All read heads are available in frequencies of 125kHz, 250kHz, 13.56MHz, and 2.45GHz. VANTAGEPOINT SYSTEMS INC., Vancouver, British Columbia, Canada, a developer of business management software for the packaging industry and its French partner, EUROPE PACKAGING Solutions, have signed a contract to implement the VantagePoint Accelerate™ core business software solution for retail packaging operations at the ILEOS / Packart Group, France. The contract with the ILEOS / Packart Group is the result of collaboration between VantagePoint Systems and EUROPE PACKAGING Solutions, and reflects the continued international focus of VantagePoint Systems. This software solution includes an automated scheduling module allowing for time-savings through automated functions and increased visibility into scheduling and production planning. NEWS FROM TAPPI New TAPPI website: Dedicated to Corrugated! When TAPPI launches its newly redesigned website, professionals in the corrugated packaging sector will feel right at home. They'll find their own dedicated section of the website, bringing together the products, services, and events TAPPI offers specifically for the corrugating audience. Set to launch in early September, the new website will make it easier for members and non-members to find what they need quickly and efficiently. "We've created dedicated web environments for different industry areas, which gives users a customized experience," says Karen Roman of TAPPI's IT department. "This will cut the 'information clutter' and help users navigate more efficiently." The new area will feature news and updates related to corrugated packaging, with easy links to corrugating-related events, papers, Test Methods and more. For updates, contact TAPPI's Member Connection Center at 1-800-332-8686 (US); 1-800-446-9431 (Canada); +1-770-446-1400 (Worldwide); or email to memberconnection@tappi.org. Registration Open for RFID and Smart Packaging Workshop One of the fastest growing areas of packaging development today, smart, intelligent and active packaging offers benefits to the supply chain and the consumer. These technologies can improve pack functionality and product branding by using RFID applications for enhanced track-and-trace and brand protection including anti-counterfeiting, theft prevention, security, and safety. In fact, the use of radio frequency identification devices (RFID) in packaging is set to grow tenfold over the next five years. The RFID AND SMART PACKAGING WORKSHOP will be held Saturday, September 16, 2006 at the Hyatt Regency, Cincinnati, Ohio, USA. On completing this course, will be able to explain: Benefits and limitations of RFID in the Smart Packaging industry Brand protection with RFID on Smart Packages Future of RFID in the Smart Packaging industry Early-bird registration rates are available until September 1, 2006. Go to www.tappi.org/smart06 for details and to register. IMPORTANT DEADLINES FOR 2006 CORRUGATED PACKAGING CONFERENCE PARTICIPANTS: The 2006 Corrugated Packaging Conference and CorrExpo® will be held September 12-15, 2006 at Duke Energy Center (formerly Cinergy Center) in Cincinnati, Ohio, USA. Please note the following important deadlines. August 18th - Early-bird conference registration ends August 25th - CorrPak Competition entry deadline September 1st - Suppliers Gala sponsorship deadline September 5th - Annual Corrugated Classic Golf Outing registration ends Space still available - CorrExpo® exhibit space available until sold out Information about the conference and associated events and activities is available at www.tappi.org/06cor. SPECIAL OPPORTUNITY: Conference Attendees invited to submit questions for Industry Q&A Roundtable Attendees of the 2006 TAPPI Corrugated Packaging Conference are invited to submit questions about high-priority production challenges for the Industry Q & A Roundtable, which begins at 9:00 a.m. Wednesday, September 13, 2006 immediately following the keynote address by Jerrold Solomon, vice president operations, MarquipWardUnited. The Industry Q & A Roundtable, sponsored by the TAPPI Production Committee, will be presented as a non-commercial, open forum engaging industry professionals in the discussion of common problems and possible solutions. "In the past, the Q & A Roundtable sessions have been very successful because participants have been open and honest about sharing during this problem-centered technical exchange," according to Rick Croker, director of technical services, Georgia Pacific Corporation. "And with 250-300 of your peers in the room, where else can you find more experts and hands-on problem solvers in the corrugated industry to share their success stories with you?" Jim Curley, editor-in-chief of Board Converting News, and Jackie Schultz, editor-in-chief of Corrugated Today magazine, will be the co-moderators of the roundtable. Curley and Schultz will field questions and engage participants in formulating solutions to the issues presented. The moderators will also draw on the expertise of a designated group of invited specialists and industry veterans to provide additional insights and direction. The Corrugated Packaging Conference committee has already begun to receive questions for the Industry Q & A Roundtable, such as: What success has there been with rifle-bored corrugator rolls used on a positive pressure single facer? Has anyone tried laser engraved ceramic coated corrugator single facer or glue machine applicator rolls? When thinking about installing dryers, what are the pros and cons of hot air over IR on presses? What are the differences between long wave, short wave, and medium IR and the recommended application of each? What is the projected impact of digital printing plates in the corrugated market? What are the advantages and disadvantages? Additional questions for the Industry Q & A Roundtable may be posed to the session moderators during the roundtable session or submitted in writing prior to the start of the conference to Rick Croker at rjcroker@GAPAC.com. The TAPPI Corrugated Packaging Conference will be held September 12-15, 2006 at The Duke Energy Center (formerly Cinergy Center) in Cincinnati, Ohio, USA. In addition to the Industry Q & A Roundtable, the conference provides exceptional learning and problem-solving opportunities, including technical sessions covering the key box plant work areas of corrugating, converting, HRD, and safety; the What's New Technology Showcase; top suppliers displaying the latest technologies and solutions at CorrExpo® 2006 exhibit and trade fair; and a variety of social and networking activities. Information is available online at www.tappi.org/06COR or by contacting TAPPI's Member Connection Center, 1-800-332-8686 (US), 1-800-446-9431 (Canada), +1-770-446-1400, memberconnection@tappi.org. "Manage to Succeed" with Pacific Section Fall Meeting September 18 and 19, 2006 - University of Washington, Seattle, Wash. Rising energy costs impacting your corrugating operation? Get the tools, strategies and tactics to address the rising cost of energy at a special two-day seminar designed to give participants a competitive edge through effective energy management practices. Pacific Section TAPPI, in partnership with the Industrial Efficiency Alliance, is hosting a Fall Seminar titled, "Manage to Succeed: Advancing Continuous Energy Improvement." Day one features a two-track workshop schedule and keynote speaker Peter Garforth, an internationally renowned energy productivity thought leader. Day two offers a full-day training course in life-cycle cost analysis with expert Ted Bennett from Barringer and Associates. The two-day meeting will also include a networking event, table top presentations and the TAPPI recognition dinner. The deadline for early registration is August 25, 2006. For information or to register by fax or email contact: Heidi Sickert, Training Director - Industrial Efficiency Alliance, hsickert@ecosconsulting.com; fax: 503-525-4800; website PLUS: Don't miss the Pacific Section golf outing! Fun and networking in a relaxed environment - be there for the 1st Annual Pacific Section TAPPI Golf Tournament at Lewis River Golf Course. DATE: Friday, August 25, 2006 (Beginning at 1:00 pm) Corrugated Packaging Division Calendar of Events 2006 Corrugated Packaging Conference & CorrExpo®2006 September 12 - 15 Cinergy Center, Cincinnati, Ohio RFID and Smart Packaging Workshop September 16, 2006 Hyatt Regency, Cincinnati, Ohio AICC 2006 Annual Meeting October 11-14, 2006 Sheraton Chicago Hotel and Towers - Chicago, Illinois, USA Lean Manufacturing: Machine Tooling Calibration Course October 17-18, 2006 Covington, Kentucky, USA (Greater Cincinnati area) Corrugated Hands-On Maintenance Workshop - Harper Machinery Corporation October 24-26, 2006 Charlotte, North Carolina Strategic Marketing and Logistics in the Global Packaging Market November 7-8, 2006 Atlanta Marriott Marquis, Atlanta, GA Corrugated Board Quality Improvement: BONDING (Virtual Seminar) November 3, 2006 1:30 PM - 3:00 PM EDT Corrugated Board Quality Improvement: WARP (Virtual Seminar) November 10, 2006 1:30 PM - 3:00 PM EDT SuperCorrExpo®2008 - GWCC September 22-26, 2008 Atlanta, Georgia

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