Mayr-Melnhof Karton AG — Earnings Release 2015

Nov 12, 2015

News Details

Corporate | 12 November 2015 07:55

Mayr-Melnhof Karton AG: Results for the frist three quarters of 2015

DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results

2015-11-12 / 07:55

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* Strong third quarter
* Increase in sales and profit in both divisions
* High capacity utilization
* Good expectations for the whole year
* Acquisition of French folding carton group completed by end of October

The Mayr-Melnhof Group was able, as expected, to continue the positive
development over the course of the year with a good third quarter. Under
ongoing highly competitive conditions without any sign of economic upturn,
sales as well as profit increased further over the first three quarters of
2015 compared to the same period of the previous year. Both divisions, MM
Karton and MM Packaging, significantly contributed to maintaining the solid
profitability of the Group with high levels of capacity utilization in the
plants and increased productivity. The acquisition of a leading French
folding carton group in the field of packaging for pharmaceuticals and
luxury goods was completed successfully at the end of October 2015 and
shall thereby, as hitherto, combine organic and acquisitive growth.

Expectations for the fourth quarter and 2015 as a whole remain intact. In
November 2015, an interim dividend of EUR 1.60 per share was paid out for
the financial year 2015.

GROUP KEY INDICATORS - IFRS

Group Key indicators (IFRS, unaudited)
consolidated in millions of EUR 1-3 Q/2015 1-3Q/2014 +/-
Sales 1,617.8 1,571.0 +3.0%
Operating Profit 154.6 136.5 +13.3%
Operating margin (in %) 9.6% 8.7%
Profit before tax 146.8 131.5 +11.6%
Profit for the period 108.2 97.5 +11.0%
Earnings per share (in EUR) 5.36 4.86

The Group's consolidated sales totaled EUR 1,617.8 million and were thus
3.0 % or EUR 46.8 million above the previous year's figure (1-3Q 2014: EUR
1,571.0 million). This increase primarily results from higher business
volumes in both divisions.

At EUR 154.6 million, operating profit was 13.3 % or EUR 18.1 million above
the comparative value of the previous year(1-3Q 2014: EUR 136.5 million).
Both divisions equally contributed to this. The Group's operating margin
thus rose from 8.7 % to 9.6 %.

With ongoing low interests, financial income of EUR 1.4 million
(1-3Q 2014: EUR 1.1 million) was offset by financial expenses of
EUR -4.7 million (1-3Q 2014: EUR -3.7 million).

Profit before tax increased by 11.6 % to EUR 146.8 million after EUR 131.5
million in the first three quarters of the previous year. Income tax
expense totaled EUR 38.6 million (1-3Q 2014: EUR 34.0 million), resulting
in an effective Group tax rate of 26.3 % (1-3Q 2014: 25.9 %).

Profit for the period thus went up by 11.0 % to EUR 108.2 million
(1-3Q 2014: EUR 97.5 million).

DEVELOPMENT IN THE THIRD QUARTER

Strong volume dynamics and high capacity utilization of the plants
characterized development of both divisions in the third quarter of this
year.

At 99 % (2Q 2015: 99 %; 3Q 2014: 99 %), capacities of the cartonboard
division were almost fully utilized. Average prices for cartonboard were
slightly above those of the previous year's period. The operating margin of
MM Karton amounted to 9.6 % following 8.5 % in the second quarter of 2015
and 7.8 % in the third quarter of 2014.

The operating margin of MM Packaging reached 10.5 % (2Q 2015: 7.9 %;
3Q 2014: 9.0 %).

The Group's operating profit totaled EUR 58.1 million (2Q 2015: EUR 45.7
million; 3Q 2014: EUR 47.8 million), thus an operating margin of 10.6 % was
achieved (2Q 2015: 8.5 %; 3Q 2014: 8.9 %).

The profit for the period amounted to EUR 41.0 million (2Q 2015:
EUR 31.7 million; 3Q 2014: EUR 36.5 million).

OUTLOOK

Since the order intake from the cartonboard market is currently much more
restrained, the order backlog of MM Karton has noticeably come down.
Earnings performance is, however, expected to continue on a good level also
in the fourth quarter of 2015 due to continuity at MM Packaging. So far,
there is no sign of relief in prices for recovered paper, which
significantly increased some months ago.

Current business remains focused on improvements in cost efficiency and
product optimization in order to develop new market potential and maintain
profitability. The expansion course shall continue through organic growth
as well as acquisitions in the core business, cartonboard and folding
cartons.

Please find the detailed press release and the Interim Report for the first
three quarters of 2015 on our website: www.mayr-melnhof.com

Forthcoming results:
March 15, 2016 Financial results for 2015

For further information, please contact:

Stephan Sweerts-Sporck
Investor Relations

Mayr-Melnhof Karton AG
Brahmsplatz 6
A-1040 Vienna
Tel.: +43 1 501 36-91180
Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com
Website: www.mayr-melnhof.com

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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
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Munich, Stuttgart;
Open Market in Frankfurt ; Wien (Amtlicher Handel /
Official Market)

End of News DGAP News Service

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