In its interim management statement for the quarter, Mondi estimated an underlying operating profit of €172m - 25% up on the €138m achieved in the comparable period last year. It was the result of improved market conditions in packaging paper and also attributed to the performance of the group's South African division.
It said that the group's performance was affected by planned annual maintenance shutdowns at a number of its larger operations.
During the quarter‚ about half of all scheduled maintenance was completed. The plants were mainly at the group's large European container board and uncoated fine paper mills.
"The balance of the planned maintenance would take place during the fourth quarter‚" Mondi said.
"The results were pretty good. They reflects the general trend over the last 18 months or so of prices increasing across most of our (product) grades‚" Mondi's chief executive David Hathorn said. "There were no standout elements - it was a fairly normal (operating) environment," he added.
Mondi had seen its share price soar from about R30 in early 2009 to above R180 now. The group had been able to leverage its low-cost production and distribution model in emerging-market economies in central and Eastern Europe and in Russia‚ while becoming almost 100% energy self-sufficient globally.
Hathorn said demand for Mondi's products in Western Europe markets‚ primarily in Germany‚ was still unexciting and that the company's US markets had fared a little better.
Western Europe and the US comprise about 50% of overall markets for the group‚ with another 50% coming from European and Russian markets that also produce‚ sell and distribute paper and paper packaging products into Asia‚ the Middle East and Africa.
The group said Middle East and North African markets had been affected by events surrounding the Arab Spring.
About 70% of the group's revenues come from packaging products‚ with fine uncoated paper products making up much of the rest.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
