PAPER AND PACKAGING
Mondi bags 30% rise in earnings
Higher prices, improved performance and recent acquisitions boost profits
Third-quarter earnings for listed packaging and paper group Mondi rose 30% because of higher prices, improved performance of its businesses and contributions from recent acquisitions. The strong performance of the fibre packaging, consumer packaging and uncoated fine-paper businesses in the quarter ended September 30 boosted the company’s underlying earnings before interest, tax, depreciation and amortisation (ebitda) as higher selling prices more than offset higher costs. This is a continuation of a trend in the first half of 2018, whereby stable sales volumes and higher prices offset rising costs and the impact of maintenance shutdowns. The higher average selling prices look set to boost the firm’s full-year results, notwithstanding the expected negative impact of the shutdown and ramp-up of the Štětí mill in the Czech Republic and pressure on costs in the fourth quarter. The group has previously said that the usual seasonal downturn in uncoated fine paper generally affects second...
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