Mondi issues profit warning

The company said the closures would focus on its containerboard business, as it aims to cut production by 200,000 tonnes per year.

In an interim management statement released this morning it said: “We will proactively engage in restructuring actions where appropriate and as required by market conditions. Similarly, our capital expenditure programmes will be tailored to the more challenging trading environment we now face.

“Mondi’s financial strength, proactive response to the outgoing changes to market conditions and strategic positioning leave it well positioned to weather the current economic turbulence and take whatever actions are necessary to improve its performance.”

The company said the downturn in its European and international division will mean group underlying profit for the year is likely to up to 15% below last year.

It reported that its underlying operating profit for the nine months to 30 September is 2% higher than the same period last year. However, operating profit was 10% below the same period last year.

Mondi said trading remains challenging for its corrugated business, particularly in recycled containerboard, where testliner prices have fallen by around 9% since June.

The company reported that Kraftliner prices are also coming under pressure, down 2% since the half year, while input costs have continued to rise.

Mondi announced the planned closure of its Holcombe, Lancashire recycled containerboard mill in September.

Popular Articles