Mondi earnings in top half of guidance range

10th Aug 2010 07:41

Paper and packaging group Mondi delivered on its end-July promise to announce a sharp increase in interim operating profit.Underlying operating profit in the first half of 2010 jumped 61% to €222m from €138m the year before on group revenue that rose 16% to €3,033m from €2,614m.Underlying profit before tax more than doubled to €176m from €81m in the first half of 2009.Underlying earnings per share was in the top half of the guidance range of 17 to 22 cents, at 20.3 cents, up from 8.3 cents the year before. Net debt at the end of June was barely changed at €1,632m compared to €1,661m at the end of June 2009."Mondi achieved a pleasing result in the period against a backdrop of improving market conditions, supported by a particularly strong performance from the European Uncoated Fine Paper business," said David Hathorn, group chief executive of Mondi."Despite cost pressures, the positive pricing momentum witnessed in Europe since the beginning of the fourth quarter of 2009 in most of the group's key grades should see the business continue to deliver a strong performance in the second half. The South Africa Division should benefit from the further management actions taken to improve profitability, although much depends on the outlook for the rand and export pulp prices," Hathorn added. The interim dividend has been hiked by 40% to 3.5 cents from 2.5 cents in 2009.