Mondi profits of €135m in third quarter

This took the profit for the year to €405m‚ compared with 2011's €490m.

"This was in line with expectations and reflects a stable trading environment considering the impact of the traditionally weaker European summer months‚ annual maintenance shutdowns at a number of larger plants strong cost containment‚" it said in an interim management statement.

Sales volumes were‚ on average‚ similar to those achieved in the previous quarter but above those of the comparable period last year‚ although demand in the converting operations was below that of last year.

The third quarter average benchmark selling prices across all grades of paper were mostly below last year's prices.

On average‚ input costs in the third quarter were similar to the previous quarter and below those recorded last year. Benchmark recovered fibre costs decreased by 23% in the quarter and were 30% lower than last year.

As a result of the anticipated start-up of new recycled container board capacity in Poland in early 2013‚ regional market pressures on recovered fibre costs are expected in the short-term.

The weaker rand and stronger US dollar against the euro benefited the South African division and‚ to a lesser extent‚ the packaging paper business.

During the quarter‚ all conditions for the acquisition of Nordenia International AG were met and‚ with effect from 1 October‚ the Group owns 99.93% of Nordenia for which it paid €259m.

As part of its continuing focus on its core businesses‚ the group sold its 50% share in Aylesford Newsprint to The Martland Holdings in October.

The net cash flow effect of the transaction was a €17m outflow‚ while the estimated loss on its disposal was €71m.

Following the sale of Aylesford Newsprint‚ Mondi has combined the Mondi Shanduka Newsprint joint venture into the South African division.

Looking ahead‚ the group said price increases in the main packaging paper grades offered some support for the remainder of the year.

However, continued soft demand amid prevailing macroeconomic uncertainties and capacity expansions in Mondi's core markets remained a concern for the company.

Mondi will publish its annual results in February next year.