Mayr-Melnhof Karton AG / Key word(s): Quarter Results
14.11.2013 / 08:00

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- Sales and profit for the period above the previous year - Solid capacity utilization
- Lower average prices weigh on operating profit
- Course of expansion continued


The Mayr-Melnhof Group was able to stand up firmly during the first three quarters of 2013 despite of unaltered restrained private consumption and increased competition in the main market Europe. At EUR 92.8 million, the profit for the period was slightly above the comparative value of the previous year (1-3Q 2012: EUR 91.5 million), whereby a negative goodwill from the acquisition of the pulp mill MMK FollaCell, Norway, had to be recorded as non-recurring income in the third quarter. With high capacity utilization MM Karton as well as MM Packaging succeeded in increasing volumes and sales.

The most current agreement on the acquisition of two folding carton sites in Russia and a high-performance plant in Germany opens up further expansion with attractive value creation potential.
There are still no signs for a recovery of demand. Hence, short-term planning of our customers and persistent price pressure can be expected also in the following months. The MM Group's focus remains on the continuation of a sustainably profitable development.

GROUP KEY INDICATORS - IFRS


consolidated, in millions of EUR Q1-3/2013 Q1-3/2012 +/- Sales 1,497.1 1,467.2 +2.0 % Operating profit 130.2 133.2 -2.3 % Operating margin (in %) 8.7 % 9.1 % Profit before tax 122.2 125.0 -2.2 % Profit for the period 92.8 91.5 +1.4 % Earnings per share (in EUR) 4.62 4.56

The Group's consolidated sales totalled EUR 1,497.1 million and thus were 2.0 % or EUR 29.9 million above the value for the previous year (1-3Q 2012: EUR 1,467.2 million). This rise mainly results from increased volumes in both divisions.

At EUR 130.2 million, an operating profit of 2.3 % or EUR 3.0 million below the previous year's value (1-3Q 2012: EUR 133.2 million) was achieved. As a result of first-time consolidation of the Norwegian pulp producer MMK FollaCell, a preliminary negative goodwill of around EUR 10 million had to be recognized as a non-recurring income. Thus, the Group achieved an operating margin of 8.7 % (1-3Q 2012: 9.1 %).

In line with the decreased interest level, financial income went down to EUR 1.0 million (1-3Q 2012: EUR 2.2 million) and financial expenses to EUR -2.8 million (1-3Q 2012: EUR -4.2 million).

Profit before tax totalled EUR 122.2 million after EUR 125.0 million in the first three quarters of the previous year. Income tax expense decreased from EUR 33.5 million to EUR 29.4 million, which resulted in an effective Group tax rate of 24.1 % (1-3Q 2012: 26.8 %).

Profit for the period rose slightly by 1.4 % to EUR 92.8 million (1-3Q 2012: EUR 91.5 million).


DEVELOPMENT IN THE THIRD QUARTER

Despite a continuing lack of stimulus from the economy as a whole, the MM Group was able to maintain its position successfully with a solid development in volume and income throughout the third quarter.
MM Karton succeeded in improving average prices as well as sales volumes compared to the second quarter. Capacity utilization reached 99 % (3Q 2012: 99 %), subsequent to full capacity utilization already in the first two quarters of the year. At the same time the largely stable development on the input markets continued. 

The operating margin of MM Karton including the non-recurring income from the acquisition MMK FollaCell amounted to 10.3 % following 6.5 % in the second quarter 2013 and 8.7 % in the third quarter 2012.
With good capacity utilization, MM Packaging achieved an operating margin of 9.2 % (2Q 2013: 8.6 %; 3Q 2012: 11.1 %).

At EUR 52.7 million, the Group's operating profit was above the value of the second quarter 2013 (EUR 39.1 million) and above the previous year's value (3Q 2012: EUR 51.9 million). The Group's operating margin amounted to 10.2 % (2Q 2013: 8.1 %; 3Q 2012: 10.5 %).

The profit for the period reached EUR 38.1 million (2Q 2013: EUR 27.7 million; 3Q 2012: EUR 39.9 million).


OUTLOOK

Recent forecasts confirm our mid-year outlook. General conditions in our main European markets for cartonboard and folding cartons will continue to be marked by, at best, a constant level of demand for fast-moving consumer goods in the coming months. Accordingly, customer planning and visibility can be expected to continue on a short-term level.
At the same time, indicators also point out continuity on the raw material markets for the foreseeable future, especially for recovered paper. Hence, intensified competitive pressure will remain a significant challenge. Continuous efficiency improvements and market development are therefore directed at increasing and/or maintaining our margins and market shares as best as possible. Our growth strategy will be consistently further pursued.


The detailed Interim Report for the first three quarters of 2013 is available on our website http://www.mayr-melnhof.com.

For further information, please contact:
Stephan Sweerts-Sporck 
Investor Relations
Mayr-Melnhof Karton AG
Brahmsplatz 6
A-1041 Vienna
Phone: +43 1 50136 - 91180 
Fax: +43 1 50136 - 91195
E-Mail: investor.relations@mm-karton.com 
Website: http://www.mayr-melnhof.com


End of Corporate News

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Language: English Company: Mayr-Melnhof Karton AG Brahmsplatz 6 1040 Wien Austria Phone: 0043 1 501 36 91180 Fax: 0043 1 501 36 91391 E-mail: investor.relations@mm-karton.com Internet: www.mayr-melnhof.com ISIN: AT0000938204 WKN: 93820 Indices: ATX Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open Market ; Wien (Amtlicher Handel / Official Market)  
 
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