DS Smith to invest to turn slump around

Bob McLellan, chief executive of DS Smith Packaging, said: “We will maximise our advantage in retail-ready packaging through our new Impact Centre in Ely. We feel we have a unique advantage in this area.”
McLellan said the firm would continue to invest in the latest computer-aided design systems and upgrade “the total machinery fleet”.

Soaring energy and raw materials prices have hit every corrugated packaging manufacturer. “The UK corrugated industry as a whole suffered losses of almost £9m in Q1 2006,” said McLellan.

DS Smith UK paper and corrugated packaging
- Adjusted operating profit* down £11.1m from £31.6m in 2004/05 to £20.5m in 2005/06
- Sales up from £631.2m in 2004/05 to £649.6m in 2005/06
- Energy costs across DS Smith Group increased by £23m from £73m in 2004/05 to £95m in 2005/06
- Demand for corrugated board fell by 1.9% in the UK, with France and Italy flat (0.3% and nil growth, respectively), and growth of 9.3% in Poland and 7.6% in Turkey
* before exceptional items of £28.9m (2004/05: £4.9m) relating to the closure of a paper mill (£20.3m), the closure of a paper machine at another mill (£5.0m) and other restructuring costs (£3.6m)

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