Flexibles help Constantia Packaging weather downturn

Corrugated board sales were particularly affected with a 27% drop to EUR 126m while EBITDA fell 20% to EUR 19m.

In comparison, the more profitable flexibles division was less severely affected with a 5% drop in sales to EUR 495m and a 7% drop in EBITDA to EUR 67m.

Constantia attributed the reduction in aluminium sales, down 41% to EUR251m, to the price effects due to the decline of the LME aluminium price.

However, the group predicted seasonal easing in the corrugated sector in the coming months due to demand from the agricultural sector.

Throughout the period, Constantia has implemented cost-saving measures. Under its ‘Dedicated Plants’ project, for instance, individual plants have been focused on manufacturing specific product groups.

“In this current volatile and challenging economic environment, our sound balance sheet, timely financing and stable business model also based on diversification have proven their worth,” said Constantia chief executive Hanno Bästlein.

“From today’s perspective we therefore enter the second half-year with cautious optimism and think that for the full year 2009 we can line up with the pleasing results of 2008.”

Constantia Packaging makes primary aluminium, semi-finished aluminium products, plastic packaging and corrugated board. It employs around 8,000 staff in 20 countries in Europe, Asia and the Americas.

In May, Packaging News reported that the company was set to divest a 30% stake imminently. Constantia Packaging was unavailable to comment further as this story was published.

CONSTANTIA PACKAGING HALF-YEAR RESULTS
Results for the first half of 2009

Turnover EUR 847m (2008: EUR 1,086m)
EBITDA EUR 136m (2008: EUR 162m)
Profit  before tax EUR 41m (2008: EUR 54m)

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