Mayr-Melnhof Karton AG: Results for the first three quarters of 2017
The Group's consolidated sales totaled EUR 1,749.1 million and were thus 2.1 %, or EUR 35.3 million above the previous year's value (1-3Q 2016: EUR 1,713.8 million). Both divisions contributed to the slight increase. With EUR 158.9 million, operating profit reached the previous year's level (1-3Q 2016: EUR 160.2 million). The Group's operating margin thus remained stable at 9.1 % (1-3Q 2016: 9.3 %). Financial income of EUR 1.6 million (1-3Q 2016: EUR 2.3 million) contrasted with financial expenses of EUR -4.5 million (1-3Q 2016: EUR -4.7 million). As a result of the deconsolidation of the Tunisian packaging companies in the second quarter, a one-off expense of EUR 2.3 million was incurred due to accumulated foreign currency translation, which is reported under "Other financial result - net". Accordingly, profit before tax totaled EUR 151.9 million and was 2.6 % below the comparative figure of the previous year (1-3Q 2016: EUR 155.9 million). Income tax expense amounted to EUR 38.6 million (1-3Q 2016: EUR 40.4 million), resulting in an effective Group tax rate of 25.4 % (1-3Q 2016: 25.9 %). At EUR 113.3 million, the profit for the period almost reached the previous year's figure (1-3Q 2016: EUR 115.5 million).
DEVELOPMENT IN THE THIRD QUARTER
Improved demand dynamics and high capacity utilization characterized the development in both divisions throughout the third quarter.
Due to continuing high capacity utilization, improved average prices and optimization measures, the cartonboard division succeeded in increasing its operating margin compared to the third quarter of the previous year to 7.4 % (3Q 2016: 6.0 %), respectively maintaining the good level of the previous quarter (2Q 2017: 7.3 %). Capacity utilization was at 98 % (2Q 2017: 99 %; 3Q 2016: 98 %).
The operating margin of MM Packaging developed persistently solid with 10.3 % (2Q 2017: 9.8 %; 3Q 2016: 10.0 %).
The Group's operating profit amounted to EUR 56.8 million (2Q 2017: EUR 51.5 million; 3Q 2016: EUR 49.4 million), thus an operating margin of 9.5 % (2Q 2017: 9.1 %; 3Q 2016: 8.6 %) was achieved.
At EUR 41.4 million, the profit for the period exceeded the comparative figure of the previous year (3Q 2016: EUR 35.1 million) as well as the figure of the previous quarter (2Q 2017: EUR 35.0 million).
After a pickup in the middle of the year, the volume of incoming orders settled again to a stable level. General conditions, however, continue to be marked by intense competition, and require continuous measures for improvement in cost efficiency and product optimization. MM Karton as well as MM Packaging are successful in maintaining their profile in this, with future business performance likely to be characterized by continuity. Despite a slight easing in peak prices for recovered paper, fiber costs are currently still at a high level. Our aim for 2017, to reach the record result of 2016, remains intact, but owing to the strong closing quarter of the previous year further on challenging.
Please find the detailed press release and the Interim Report for the first three quarters of 2017 on our website: www.mayr-melnhof.com
Forthcoming results: March 20, 2018 Financial results of 2017
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: email@example.com Website: http://www.mayr-melnhof.com
15.11.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: 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: firstname.lastname@example.org Internet: www.mayr-melnhof.com ISIN: AT0000938204 WKN: 93820 Indices: ATX Listed: Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; Wien (Amtlicher Handel / Official Market) End of News DGAP News Service