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Smurfit Kappa boosted by corrugated pricesliz.wells@haymarket.com, 9 May 2008Be the first to comment on this article Smurfit Kappa, the manufacturer of paper-based packaging, has reported a 45% increase in pre-tax profit to EUR61.6m (48.7m) for the three months to 31 March.
Smurfit Kappa said it had been boosted by price recovery for corrugated packaging and the performance of its Latin American business. However, the group said it expected to be affected by rising raw material costs and a slowdown in demand for corrugated containerboard. Chief executive Gary McGann said: "SKG anticipates that a combination of factors will contribute to greater-than-expected margin pressure throughout the remainder of 2008. These factors include a slowdown in demand growth for corrugated, continued weakness in the value of the dollar and further cost inflation." He added that the company would continue to review its production capacity and the cost profile of its mills. In March, SKG announced the permanent closure of its Valladolid recycled containerboard mill in Northern Spain, which has a capacity of 130,000 tonnes. It also said it would reduce 2008 production by up to 180,000 tonnes through market-related downtime, to be taken primarily in the first half of the year. Speak Your Mind |
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