DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Half Year Results
19.08.2014 / 07:50

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* Profit and sales above previous year
* Margin at MM Karton improved
* Continuing lack of impulses from private consumption
The Mayr-Melnhof Group was able to stand up positively on the whole in the first half of 2014 despite a weak macro-economic environment marked by a lack of stimulus from private consumption. Both profit and sales are above the previous year's figures at the end of the first six months. While profitability at the cartonboard division improved as a result of increased productivity and lower specific energy prices, the packaging division could not entirely reach the operating margin of the previous year, primarily due to the more restrained market dynamics in the second quarter.
As a recovery in demand is not in sight, price discipline remains the order of the day, which could so far be accomplished in both divisions according to plan.

Targeted investments and operational measures will allow us to keep competitiveness, profitability and future prospects of the Group further on a high level.


Group Key indicators (IFRS)
consolidated in millions of EUR 1stHY/2014 1st HY/2013 +/- Sales 1,033.1 981.8 +5.2% Operating Profit 88.7 77.5 +14.5% Operating margin (in %) 8.6% 7.9% Profit before tax 82.7 73.4 +12.7% Profit for the period 61.0 54.7 +11.5% Earnings per share (in EUR) 3.03 2.72
 
At EUR 1,033.1 million, the Group's consolidated sales exceeded the level of the previous year by 5.2 % (1st half of 2013: EUR 981.8 million). This growth mainly results from an increase in volumes in both divisions as well as an extended product mix and better average selling prices at MM Karton.
Operating profit could be increased by 14.5 % or EUR 11.2 million to EUR 88.7 million. A clear rise in profit at the cartonboard division set off a slight decline at the packaging division. Thus, the operating margin of the Group went up from 7.9 % to 8.6 %.

Financial income totaled to EUR 0.9 million (1st half of 2013: EUR 0.7 million), financial expenses to EUR -2.6 million (1st half of 2013: EUR -1.8 million).

Profit before tax rose by 12.7 % to EUR 82.7 million (1st half of 2013: EUR 73.4 million). Income tax expenses amounted to EUR 21.7 million following EUR 18.7 million in the comparative period of the previous year, resulting in an effective Group tax rate of 26.2 %
(1st half of 2013: 25.5 %).

As a consequence, the profit for the period increased by 11.5 % to EUR 61.0 million (1st half of 2013: EUR 54.7 million).


DEVELOPMENT IN THE SECOND QUARTER

The Group's business development in the second quarter of 2014 was characterized by a slight increase in sales and profit compared to the previous year's period as well as a slight decline compared to the first quarter 2014. While, with 98 %, capacities in cartonboard production were once again almost fully utilized (1Q 2014: 97 %; 2Q 2013: 100 %), the volumes in the folding carton production were above the previous year but demand-related slightly below the first quarter of the current year. The development on raw material markets, similar to the sales market, was characterized by continuing stability, while energy prices were consistently below the previous year.

MM Karton was able to improve the operating margin compared to the previous quarter (1Q 2014: 7.2 %) as well as to the comparative quarter of the previous year (2Q 2013: 6.5 %) to 8.0 %.

The operating margin of MM Packaging amounted to 7.9 % (1Q 2014: 9.4 %; 2Q 2013: 8.6%) 

The operating profit of the Group totaled to EUR 42.5 million following EUR 46.2 million in the first quarter of 2014 and EUR 39.1 million in the second quarter of the previous year. Thus, the Group operating margin amounted to 8.3 % (1Q 2014: 8.8%; 2Q 2013: 8.1 %).
The profit for the period reached EUR 28.9 million (1Q 2014: EUR 32.1 million; 2Q 2013: EUR 27.7 million).


OUTLOOK

The forecasts for private consumption and thus also for demand for cartonboard and folding cartons still show an overall stable but regionally more heterogeneous picture again. There is a lack of momentum across the whole market, resulting in continuing intensified predatory competition. Due to largely stable raw material prices, we continue to pay close attention to the best possible price discipline.

Offering an attractive portfolio of products and range of services, we aim to maintain market shares and acquire new business even in weak overall conditions. Programs for increasing cost efficiency continue to focus on keeping competitiveness and profitability at a high level.
As a consequence of the extremely short-term visibility, it is not possible from today's perspective to provide a profit estimate for the whole year 2014. Due to the non-recurring income in the third quarter of the previous year as well as the rebuild of the large cartonboard machine in Frohnleiten for FOODBOARD (TM) in the fourth quarter, a profit contribution below the previous year is expected in the second half of 2014.

The Half-Year Financial Report 2014 as well as the CEO video presentation and the details for today's CEO Conference Call are available on our website: www.mayr-melnhof.com



Forthcoming results:
November 13, 2014 Results for the first three Quarters of 2014
For further information, please contact:

Stephan Sweerts-Sporck
Investor Relations
Mayr-Melnhof Karton AG 
Brahmsplatz 6 
A-1041 Vienna
Tel.: +43 1 501 36-91180
Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com
Website: http://www.mayr-melnhof.com



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19.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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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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