DS Smith should match forecasts

4th Mar 2010 14:45

DS Smith is confident of meeting full-year expectations as rising sales helped the packaging and office products wholesaler beat forecasts for the third quarter.Results for the three months to 31 January have been underpinned by cost cutting, increased productivity and cash generation, said the firm.Demand for corrugated packaging in the European market continues to recover, as reported in December, although it is still below the level at this time in 2007. Profits at the Plastic Packaging business continue to recover, as revealed in the first half, benefiting from restructuring, cost cutting and sales into new markets. Demand for office products across our markets is still affected by the slowdown in the European economy, but actions taken in the UK are improving its performance and this is starting to come through in the results. Outside of the UK the combined profits are in line with last year, said DS. "We continue to be faced by both the uncertainty surrounding the strength of the economic recovery and the need to recover rising input costs," read today's statement. "Nevertheless, business performance remains encouraging and management is confident of meeting its expectations for the year to April 2010." Results for the year to 30 April 2010 are on 24 June.