Mayr-Melnhof Karton AG — Earnings Release 2011

Mar 15, 2012

News Details

Corporate | 15 March 2012 08:00

Mayr-Melnhof Karton AG: Annual Results 2011

Mayr-Melnhof Karton AG / Key word(s): Final Results

15.03.2012 / 08:00

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• Sales and earnings reach new peak levels
• Profit for the year of EUR 118.7 million +7.5 % above previous year
• Dividend increase from 1.95 EUR to 2.10 EUR/ Share

Against the backdrop of a weakening global economy, the Mayr-Melnhof Group
was able to successfully assert itself and finish the business year 2011
with peak values both in terms of profits and sales. This growth is the
result of cartonboard production and cartonboard processing, as in both
segments a significant rise in input costs was compensated. While the
folding carton business had a mostly stable development due to sustainable
private consumption, the cartonboard business faced a decline in incoming
orders and operating income in the second half of the year, as expected
after the full capacity utilization in the first half of the year, since
the customers were consuming their stock and planning more carefully. In
accordance with our strategy, we expanded our presence to growth markets
with new sites in Turkey and Malaysia. Due to the positive results, the
dividend per share is intended to be increased from EUR 1.95 (2010) to EUR
2.10.

GROUP KEY INDICATORS - IFRS
in millions of EUR 2011 2010 +/-
Sales 1,959.6 1,778.9 +10.2%
Operating Profit 170.9 162.3 +5.3%
Operating Margin (in %) 8.7% 9.1%
Profit before tax 161.8 151.7 +6.7%
Income tax expense (43.1) (41.3)
Profit for the year 118.7 110.4 +7.5%
Thereof minority interests 0.5 2.3
Earnings per share (in EUR) 5.91 5.39

The Group's consolidated sales improved from EUR 1,778.9 million to EUR
1,959.6 million and are 10.2 % above last year's level. This growth is
mainly attributable to higher prices in both divisions, but also to the
integration of the folding carton site Marinetti, Chile.

Operating profit therefore improved by 5.3 % or EUR 8.6 million to EUR
170.9 million. This increase results from the growth in profit both in
cartonboard and folding carton production. At 8.7 % the Group's operating
margin was slightly below last year's level (2010: 9.1 %). The return on
capital employed amounted to 18.6 % (2010: 18.9 %).

Net interest decreased slightly, in particular as a result of higher
financial liabilities. Financial income of EUR 4.4 million (2010: EUR 2.5
million) was offset by financial expenses of EUR -6.4 million (2010: EUR
-2.9 million).

Without non-recurring expenses from the disposal of participations, which
incurred in the previous year, the profit before tax amounted to EUR 161.8
million, an improvement of 6.7 % compared to 2010 (EUR 151.7 million).

Income taxes amounted to EUR 43.1 million (2010: EUR 41.3 million),
resulting in an effective Group tax rate of 26.6 % (2010: 27.2 %).

The Group's profit for the year rose by 7.5 % from EUR 110.4 million to EUR
118.7 million, whereas the net profit margin of 6.1 % reached again last
year's level (2010: 6.2 %).

OUTLOOK

The economic forecast for our main market Europe remains gloomy and
diffuse. Except for Germany, consumers started adjusting their expenses due
to increased job insecurity and expected cuts in the social budget.
Analogously to the consumer goods industry, the cartonboard and folding
carton markets went into a very intense price competition in the wake of a
constriction or stagnation of quantities.

The maintenance of our high market shares requires a continuously more
selective price policy, the defense of existing profit levels increasing
volumes. The positive prospect is that the destocking of the supply chain
that has been going on for months seems to be coming to an end.

However, this caused a significant rise in recovered paper prices after the
drop at the end of 2011, which, together with the considerable price boost
for all input factors depending on the crude oil price, tightened the
margin pressure on procurement.

In order to maintain the Group's competitiveness, we focus on efficiency
improvement by using state-of-the-art technology and implementing best
practice as well as by effecting necessary rationalization measures. We
will continue our investment activities and pursue our strategy of focusing
on projects with convincing savings and growth potentials.

Overall, we expect a higher weight on the margins due to more intense
challenges on the procurement and sales markets. Resulting from the
short-term nature of the business, we cannot provide an earnings forecast
for the current year at this time.

The expansion continues with a focus on the development of new business in
Europe and on risk-sensitive acquisition and construction of new sites in
non-European markets with interesting future potential.

The press release is available on the internet under www.mayr-melnhof.com.

The Annual Report 2011 will be available on April 4, 2012.

Forthcoming Results:

May 15, 2012 Results for the first quarter of 2012

For further information, please contact:
Stephan Sweerts-Sporck, Investor Relations,
Mayr-Melnhof Karton AG,
Brahmsplatz 6, A-1041 Vienna
Tel.: +43 1 501 36-91180,
Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com,
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: investor.relations@mm-karton.com
Internet: www.mayr-melnhof.com
ISIN: AT0000938204
WKN: 93820
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Wien (Amtlicher Handel / Official Market)

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