Mayr-Melnhof Karton AG — Earnings Release 2006

May 15, 2006

News Details

Corporate | 15 May 2006 08:00

Mayr-Melnhof Karton AG: Results for the first quarter of 2006

Corporate-news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Good start to the new fiscal year – High capacity utilization in both Divisions – Significant earnings rise at MM Packaging – Persistent pressure on costs requires further price increase move at MM Karton Group Key Indicators (IFRS, unaudited) consolidated in EUR millions Q1/2006 Q1/2005 +/- Sales 377.0 357.1 +5.6% Operating profit 40.1 36.4 +10.2% Profit before tax 40.4 37.4 +8.0% Profit for the period 27.4 25.3 +8.3% The Mayr-Melnhof Group concluded the first quarter of 2006 with a profit for the period of EUR 27.4 million. This is an increase of 8.3 % compared to the previous year (Q1 2005: EUR 25.3 million). Both MM Karton and MM Packaging registered a positive development in sales, resulting in high capacity utilization for both segments. While MM Packaging achieved significant profit growth particularly due to increased productivity, the recovery of margins in cartonboard production however develops in stages despite successive price improvements, due to ongoing high input costs and temporary downtime at the Nikopol cartonboard mill in Bulgaria. OUTLOOK: The demand for cartonboard and folding cartons continues to be robust under the currently more friendly economic conditions in Europe. Accordingly both Divisions are expecting capacities in the second quarter to be utilized at similar levels as in the first quarter of 2006. Due to the further increase of all costs driven by the crude oil price, a few days ago cartonboard customers were given notice of another price increase, due at the beginning of the summer months. If economic recovery sustains, an eye will have to be kept on fiber prices in the coming months. Passing on the increase in cartonboard prices is being pursued with the highest priority at MM Packaging. The expenses connected with starting production at the three newly built rotogravure sites in Trier, Izmir, and Cherkassy will have increasing impact from the second quarter onwards. Acquisition projects are being pursued in both cartonboard production and cartonboard processing. Please find our detailed press release and Interim Report for the 1st quarter of 2006 on the Internet at http://www.mayr-melnhof.com. Stephan Sweerts-Sporck Investor Relations, Mayr-Melnhof Karton AG Brahmsplatz 6, A-1041 Vienna Tel.: +43/ 1 50136 1180 Fax: +43/ 1 50136 1195 e-mail: investor.relations@mm-karton.com Web Site: http://www.mayr-melnhof.com (c)DGAP 15.05.2006 ————————————————————————— Language: English Issuer: Mayr-Melnhof Karton AG Brahmsplatz 6 1040 Wien Österreich Phone: 0043 1 501 36 11 80 Fax: 0043 1 501 36 1195 email: stephan.sweerts-sporck@mm-karton.com WWW: www.mm-karton.com ISIN: AT0000938204 WKN: 93820 indices: ATX Listed: Amtlicher Markt in Wiener Börse; Freiverkehr in Berlin-Bremen, Stuttgart, München; Open Market in Frankfurt End of News DGAP News-Service —————————————————————————