Converting

Mondi predicts further box price increases in spite of reporting a profit increase of 69% for its corrugated business since last year.

The announcement comes on the back of its paper and packaging group’s interim results, which were published today (1 August). The figures shoed pre-tax profits for the six months to 30 June 2007 almost quadrupled to £168m (€250m) on sales of £2.1bn.

Mondi Group chief executive David Hathorn said: "I am very pleased that Mondi's first set of results as an independent group shows a substantial recovery in operating profits and reflects an improved operating performance and trading environment across all business areas."

The firm attributes this increase to record production, improved productivity and efficiency, a better trading environment and 2006 restructuring.

Mondi's net profits on disposals were £57.14m following the sale of German flexible plastic and packaging company Bischof + Klein, a 5.3% stake in Mondi Packaging and Paper Swiecie in Poland and various corrugating converting operations.

Mondi Packaging is currently awaiting regulatory approval for the acquisition of 53.56% of Turkish corrugated firm Tire Kutsan and 100% of Austria-based Unterland's flexible packaging operations.

The group is now dual-listed in South Africa and London following the completion of its demerger from Anglo American at the start of July.