Demand remains firm and containerboard supplies are tight.
Mr. Pomerantz also noted his belief that this favorable business climate should persist for the next several quarters even without strong demand growth, as a result of the 1.6 million ton net decrease in potential containerboard supply in 1999. This historically low rate of projected supply addition should also extend the recovery cycle. Operating Results Production of containerboard decreased to 301 thousand tons for the second quarter of fiscal 1999, compared to 332 thousand tons a year ago. Unbleached kraft paper production increased to 66 thousand tons versus 61 thousand tons for the same quarter in fiscal 1998, while corrugated shipments for second quarter fiscal 1999 increased to 3.8 billion square feet from 3.5 billion square feet during the year-ago quarter. Gaylord Container Corporation is a major national manufacturer and distributor of corrugated containers and sheets, containerboard, unbleached kraft paper and multiwall bags.