DS Smith rockets as numbers stack up

27th Oct 2011 08:25

DS Smith, the recycled packaging group, says like-for-like sales of its key corrugated products in the first half of its current financial year are up 3% on 2010 .The company said the improvement was against tough comparatives from last year and was in line with previously announced targets.As a result of the improving revenues DS Smith says it expects to see strong growth in earnings per share in the half year to the end of October.Margins are continuing to recover in the Corrugated Packaging businesses, as the company gradually passes on input cost increases to customers. The company said it is "well on track" to hit the £10m run-rate savings from procurement targeted for the end of the year. The group now expects to see £9m benefit from procurement savings in the current financial year, up from the previous estimate of £6m."The group expects to make further progress towards its previously announced medium term financial objectives in this financial year, in terms of margin improvement, return on capital and cash generation," the company's pre-close period statement said.The plethora of good news saw shares rise sharply in morning trading to 214p, a rise of 4.39%.BS