AI assistant
Mayr-Melnhof Karton AG — Earnings Release 2009
May 14, 2009
750_rns_2009-05-14_34e255c0-38a5-47d2-8264-1aea02911b51.html
Earnings Release
Open in viewerOpens in your device viewer
News Details
Corporate | 14 May 2009 08:00
Results for the first quarter of 2009
Mayr-Melnhof Karton AG / Quarter Results/Quarter Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
- Profit for the period slightly below previous year
- Profitability largely maintained
- Decreasing mass purchasing power to accelerate slowdown in demand
- Start expansion Iran
Group Key Indicators (IFRS, unaudited)
consolidated in EUR millions 1Q/2009 1Q/2008 +/-
Sales 384.0 452.9 -15.2%
Operating profit 35.7 44.4 -19.6%
Profit before tax 36.2 42.4 -14.6%
Profit for the period 26.5 27.3 -2.9%
thereof minority interests 0.4 0.2
As expected, the Mayr-Melnhof Group achieved better machine utilization in
the first quarter of 2009 than in the previous quarter. This was made
possible by temporary downtime at the end of the year. Sales generated were
however significantly below the level of the first quarter of 2008.
Although the general economic framework constrained us with regard to both
volume and exchange rates, profitability of business was maintained at a
generally sound level with a Group operating margin of 9.3 % (1Q 2008: 9.8
%). This level was achieved through price discipline, consistent saving
measures and a significant deflation of costs. The operating profit was
consequentially 19.6 % below the previous year's level. The profit for the
period, however, decreased marginally to EUR 26.5 million (1Q 2008: EUR
27.3 million) due to lower tax expense.
New folding carton plant in Iran:
With the set up of a folding carton plant in Iran, we are continuing our
expansion in the Middle East in line with our strategy. As a first step,
Mayr-Melnhof Packaging Teheran will produce packaging for the Iranian
cigarette market. Commissioning of the facility is planned for the second
half of 2009.
OUTLOOK:
Demand planning of our customers and the daily market picture became
increasingly more short-term during the first quarter which made ongoing
machine utilization more difficult.
The overall economic uncertainty is now also reflected in a high volatility
of our end-markets. Forecasts as to developments during the current year
vary highly. We estimate that the impacts of significantly decreasing
employment rates and the consequential decline in mass purchasing power on
consumption are yet to come. This would also affect the demand for
packaging material made from cartonboard - with the exception of food
packaging. Selective adjustments of capacity and headcount might therefore
become unavoidable, especially where concepts for a transition to more
flexible structures fail.
The decline in demand will further intensify the pressure on prices, since
raw material prices have also decreased due to the drop in demand. In
production, we are vehemently taking measures at every site, which will
contribute to further improvements in the cost structure.
With a view to the expected development, consolidation and associated
market adjustments are still about to come in our industry. Immediate
action seems untimely and would entail unmanageable risks. Market and cost
leadership will, however, enable us to benefit from further organic growth
opportunities and to become even stronger.
Please find our detailed press release and Interim Report for the 1st
Quarter of 2009 on the Internet at http://www.mayr-melnhof.com.
For further information please contact:
Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG
Brahmsplatz 6, A-1041 Vienna
Tel.: (+43/1) 50136-0, Fax: (+43/1) 50136 - 91195
E-mail: [email protected]
Website: http://www.mayr-melnhof.com
14.05.2009 Financial News transmitted by DGAP
Language: English
Issuer: Mayr-Melnhof Karton AG
Brahmsplatz 6
1040 Wien
Österreich
Phone: 0043 1 501 36 91180
Fax: 0043 1 501 36 91391
E-mail: [email protected]
Internet: www.mayr-melnhof.com
ISIN: AT0000938204
WKN: 93820
Indices: ATX
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Foreign Exchange(s) Wien
End of News DGAP News-Service