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Mayr-Melnhof Karton AG — Earnings Release 2012
Nov 15, 2012
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Earnings Release
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News Details
Corporate | 15 November 2012 08:00
Mayr-Melnhof Karton AG: Results for the first three quarters 2012
Mayr-Melnhof Karton AG / Key word(s): Quarter Results/Quarter Results
15.11.2012 / 08:00
- Sustainable profitability maintained in the first three quarters
- Remarkable profit improvement in the 3rd quarter
- Good capacity utilization in the course of the year - quantity dynamics
flattening off - No sign of relief for input prices - increasing pressure on margins
- Continued path of expansion
The Mayr-Melnhof Group closed the third quarter of 2012 with a clear profit
improvement compared to the previous quarters. In the reporting period from
January to September 2012, we thus managed to maintain the previous year's
high-level earnings despite non-recurring expenses in connection with the
closure of a folding carton plant in Great Britain and increasingly
challenging market conditions. Due to the economic downturn, the demand in
our European main markets remained volatile and restrained. However, our
focus on packaging for convenience goods and the wide geographical
distribution of sales permitted a good capacity utilization in the first
three quarters.
With the acquisition of Plegacol, another major Columbian folding carton
manufacturer, Mayr-Melnhof Packaging has become the market leader in
folding carton packaging in Columbia. Moreover, additional growth momentum
is being provided particularly by the new plants in Poland and Turkey as
well as by selected cartonboard export markets.
Group Key indicators (IFRS)
consolidated in millions of EUR 1-3Q/2012 1-3Q/2011 +/-
Sales 1,467.2 1,498.8 -2.1%
Operating profit 130.0 135.4 -4.0%
Operating margin (%) 8.9% 9.0%
Profit before tax 124.2 128.3 -3.2%
Profit for the period 90.9 91.9 -1.1%
Earnings per share (in EUR) 4.53 4.58
The consolidated sales of the Group totaled EUR 1,467.2 million and were
therefore 2.1 % or EUR 31.6 million below the previous year's figure (1-3Q
2011: EUR 1,498.8 million). An increase in MM Packaging's average sales
prices is offset by a slight decline in the cartonboard sales volume.
Operating profit amounted to EUR 130.0 million, and was thus 4.0 % or EUR
5.4 million down from the previous year's value (1-3Q 2011: EUR 135.4
million), whereby non-recurring expenses of around EUR 9 million relating
to the closure of the English packaging plant in Liverpool also had to be
accounted for. However, the Group's operating margin of 8.9 % almost
reached the previous year's level (1-3Q 2011: 9.0 %).
Profit before tax totaled EUR 124.2 million compared to EUR 128.3 million
in the first three quarters of the previous year. The income tax expense
amounted to EUR 33.3 million (1-3Q 2011: EUR 36.4 million), resulting in an
effective Group tax rate of 26.8 % (1-3Q 2011: 28.4 %).
Thus, the profit for the period came in at EUR 90.9 million, which was
slightly below the previous year's figure (1-3Q 2011: EUR 91.9 million).
Development in the third quarter 2012:
Against the background of the continuing economic downturn and the
customers' clearly more cautious ordering behavior, the Group's overall
performance was still very successful in the third quarter.
MM Karton managed to maintain both the volumes and average prices of the
second quarter. A capacity utilization of 99 % was achieved compared to a
utilization of 97 % in the first two quarters of the year (3Q 2011: 91 %).
At the same time, prices for fibers have fallen from a high in the first
half of the year. MM Karton's operating margin therefore rose to 8.5 %
after 5.5 % in the second quarter of 2012 and 5.6 % in the third quarter of
2011.
MM Packaging was able to maintain the high profit level of the second
quarter, which was affected by the non-recurring expenses relating to the
closure of the folding carton plant in Liverpool. The operating margin
reached 10.9 % (2Q 2012: 8.9 %; 3Q 2011: 9.9 %). The solid development in
the cigarette packaging area constituted a particularly important
contribution in this connection.
The Group's operating profit amounted to EUR 50.9 million and thus exceeded
both the figure of the comparative period in 2011 (3Q 2011: EUR 42.7
million) and the value of the second quarter of the current year (2Q 2012:
EUR 37.0 million). The Group's operating margin reached 10.3 % (2Q 2012:
7.7 %; 3Q 2011: 8.4 %).
The profit for the period amounted to EUR 39.7 million (2Q 2012: EUR 22.7
million, 3Q 2011: EUR 27.9 million).
OUTLOOK
The latest forecasts confirm our mid-year outlook. Our main sales market
Europe is still dominated by a continuing recession. Pressure on volumes
and competition will therefore continue to increase. The order backlog and
visibility will remain short-term, as the demand for cartonboard and
folding cartons continues to be characterized by a cautious ordering
behavior.
On the other hand, there is still no sign of a relief for input prices, as
the recent fall in prices for fibers is no longer sustainable and the costs
of personnel, energy, logistics and chemicals remain at a high level.
In the short run, the stabilization of profitability at a high level
achieved in the current year will therefore be faced with both challenging
cost developments and a continued market consolidation. Preserving a sound
basis for the Group built on a healthy position and the goal of maintaining
the best possible margins remain the orders of the day.
We will continue to pursue our growth strategy with determination, focusing
primarily on the future markets outside Western Europe.
Please find our detailed Interim Report for the first three quarters of
2012 and press release on our website http://www.mayr-melnhof.com.
For further information, please contact:
Stephan Sweerts-Sporck, Investor Relations,
Mayr-Melnhof Karton AG,
Brahmsplatz 6, A-1041 Vienna
Phone: +43 1 50136 - 91180
Fax: +43 1 50136 - 191195
E-Mail: [email protected]
Website: http://www.mayr-melnhof.com
End of Corporate News
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Language: English
Company: Mayr-Melnhof Karton AG
Brahmsplatz 6
1040 Wien
Austria
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; Wien (Amtlicher Handel / Official Market)
End of News DGAP News-Service
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