Mayr-Melnhof forecasts price increases after profits fall

Mayr-Melnhof said that the growth in volumes was offset by “significant price increases in the procurement markets”.

“It will remain our priority to pass on increasing input costs to end customers, as it is no longer possible to offset them by higher volumes given that capacity is already fully utilised,” Mayr-Melnhof said in its trading statement this morning.

The firm said that while the outlook for the third quarter was good, input costs would continue to rise

“Past and future cost increases will have to be passed on to end customers promptly,” Mayr-Melnhof said.

For the first half of 2010, May-Melnhof reported a 12% increase in sales of EUR 863m, but a 6% drop in pre-tax profit of EUR 49m.

Sales 423.8 (385.4 in 2009)
EBITDA 48.8 (54.1)
Operating profit 37.4 (34.5)
Pre-tax profit 28.5 (34.5)
Profit for period 21.1 (25.4)

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