Mondi indicates profit leap in 2010

By Rory Harrington

- Last updated on GMT

Related tags: 1920, Mondi

Mondi has signalled it expects full year profits to climb by more than 20 per cent compared to 2009 when the company was hard hit by the global recession and restructuring costs.

The South Africa-based packaging and paper producer said that performance for the first three quarters of 2010 was “considerably above the comparable period in the previous year”​ and its underlying full year profit was also “expected to be considerably higher”.

The firm said it obliged to issue an advanced trading statement when it estimates that results for the period will vary by more than 20 per cent. The full year 2010 results are due to be published on 21 February.

As a forerunner, Mondi posted forecasts that it expects it basic earnings per share (EPS) to be between €0.42 and €0.47 compared to a loss of €0.65 in 2009. Basic underlying earnings per share are likely to climb from €0.18 in 2009 to between €0.44 and €0.49 this year.

In 2009, Mondi was hit with costs of €133 million, mainly relating to impairments of assets in Austria and Germany and restructuring costs associated with the mothballing of the paper machine at the Merebank mill in South Africa. The equivalent special item charge for the year ended 31 December 2010 is approximately €22 million, said the company.

Mondi is an international paper and packaging company, with production operations across 31 countries and revenues of €5.3 billion in 2009. Its key operations are located in central Europe, Russia and South Africa and the company said it employed 31,000 people on average in 2009.

Related topics: Processing & Packaging

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