Mondi slumps after profit warning

Mon, 21 Oct 2019

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 South East Asia Post.

More Information

International

Section

Bus crash in Democratic Republic of Congo claims many lives

MBANZA-NGUNGU, Democratic Republic of Congo - At least 30 people are dead and many others injured after a bus crashed ...

White House now looking for new G7 venue as Trump bows out

WASHINGTON, DC - In an abrupt about-face U.S. President Donald Trump announced on Saturday night the upcoming G7 in June ...

EU to decide on half-hearted request by UK to extend Brexit deadline

LONDON, UK - British Prime Minister Boris Johnson on Saturday sent the European Union an unsigned photocopy of a request ...

China-U.S. trade frictions could fracture globe, says Antnio Guterres

WASHINGTON, DC - Tensions relating to global trade and technology continue to rise and the international community needs to "do ...

UK prime minister vows to leave EU by 31 October after losing poll

LONDON, UK - British Prime Minister Boris Johnson is sticking to his guns despite failing to get parliamentary backing to ...

Trump floated idea of his property being venue for G7 summit

WASHINGTON, DC - At his suggestion, U.S. President Donald Trump will host next year's G7 at one of his own ...

Business

Section

Sterling jumps to 1.3000, euro also gains

SYDNEY, Australia - The British pound powered higher in the Asian session on Monday, and into early European trading.Sterling was ...

In world first, Qantas flies direct from New York City to Sydney

SYDNEY, Australia - Qantas Flight 7879 touched down at Sydney airport on Sunday morning, ending the longest commercial flight undertaken ...

Jonesy and Amanda named best Australian on-air team

BRISBANE, Australia - Successful WSFM breakfast hosts Jonesy and Amanda (Brendan Jones and Amanda Keller), have been crowned Best On-Air ...

Rejuvenation of century-old De Angelis Carousel in Buffalo starts

BUFFALO, New York - New York Governor Andrew Cuomo on Friday announced the Erie Canal Harbor Development Corporation has begun ...

Chinese man who tried to send U.S. military technology to China jailed

WASHINGTON, DC - A Chinese national has been sent to prison for conspiring to export military and space-grade technology to ...

Dow Jones drops 256 points Friday, dollar shatters

NEW YORK, New York - With the Trump administration in disarray and a growing concern globally that the country's chief ...

Movie Review

Three Billboards Outside Ebbing, Missouri