Mondi slumps after profit warning

News24
10 Oct 2019, 22:14 GMT+10

The packaging and paper group Mondi's share price fell by 3.5% on Thursday morning after a downbeat quarterly update.

Underlying earnings before interest, tax, depreciation and amortization (EBITDA) for the third quarter fell by 18% to €383 million from the previous year, and it was 9% below the second quarter of 2019.

Demand in the third quarter was weaker, and paper prices were below those of the first half, Mondi reported.

On average, its costs were higher than the comparable prior year period, although lower than the previous quarter.

Planned mill maintenance shutdowns cost it €40 million in earnings. For the full year, the impact is estimated to be around €150 million.

"As we entered the fourth quarter, prices were, on average, marginally below those of the third quarter. If sustained, the impact of this lower pricing is expected to be largely offset by an easing of pressure on the cost base, supported by our ongoing profit improvement initiatives," Mondi said.

Its share price has lost almost 15% of its value over the past year.

Mondi also announced that it will be reorganising its business into four units: corrugated packaging, flexible packaging (including paper bags), engineered materials (including labels and label and protective films) and uncoated fine paper.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Toronto Telegraph.

More Information

-12 ℃

Fair in Toronto

Business

Section

Stock markets in Asia rise on Monday

SYDNEY, Australia - Stocks were mainly well bid on Monday, the start of a new trading week.The Hong Kong market ...

China powering into the nuclear age, 65-years strong

BEIJING, China - There are currently eleven nuclear power units under construction in China, the largest number of nuclear power ...

Apple ensures iPhone owners can switch off location tracking

SAN JOSE, California - Apple has added a new toggle that addresses privacy concerns around the location tracking feature on ...

UAE to house massive solar park costing $13.6 billion

DUBAI, UAE - The 800MW third phase of Dubai's solar park will be operational in April, the Dubai Electricity and ...

Half-a-billion dollars awarded in U.S. Defense contracts

WASHINGTON, DC - The Pentagon on Thursday awarded more than half-a-billion dollars in defense contracts.With around 0.53 cents in every ...

Mboweni, Gordhan safe for now following special ANC NEC meeting

President Cyril Ramaphosa has seemingly deflected criticism of two of his most important lieutenants during the ANC's national executive committee ...

Canada

Section