More Mondi cuts, but Q3 profit is up
Reuters reports that paper manufacturer Mondi said on Monday it plans more cost cuts as the sector struggles to recover from a slump caused by weak demand and overcapacity, exacerbated by a slowdown in the global economy.
Mondi, which also said its third-quarter underlying profit was higher than a year earlier, added that the weak economy was putting moderate pricing pressure on some of its products.
Reuters quotes Lars Kjellberg, a paper industry analyst at Credit Suisse in London: "It's obviously a tough environment and I think (Mondi's) management is very clear about what is going on in the business and they are well prepared." Mondi's rivals Sappi , UPM-Kymmene's and Stora Enso have also warned demand would slow more in the struggling paper sector.
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