DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Interim Report
13.11.2014 / 08:00

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* Growth in sales and profit
* Solid volume development
* Increasingly restrained demand

The Mayr-Melnhof Group was able to stand up solidly in a flat overall economic environment also in the third quarter 2014 and could thus close the first three quarters of 2014 with a rise both in sales and profit. The cartonboard division, which benefited from productivity increases and lower specific costs, contributed particularly to this while the packaging division maintained the good profit level of the previous year in a highly competitive market environment through volume gains.
Due to weakened private consumption also more restrained demand for packaging in Europe is to be expected. In case this is a persisting trend increased pressure on prices will arise.


Group Key indicators (IFRS, unaudited)
consolidated in millions of EUR 1-3 Q/2014 1-3Q/2013 +/- Sales 1,571.0 1,497.1 +4.9% Operating Profit 136.5 130.2 +4.8% Operating margin (in %) 8.7% 8.7% Profit before tax 131.5 122.2 +7.6% Profit for the period 97.5 92.8 +5.1% Earnings per share (in EUR) 4.86 4.62


The Group's consolidated sales amounted to EUR 1,571.0 million and therefore were 4.9 % or EUR 73.9 million above the previous year's figure (1-3Q 2013: EUR 1,497.1 million). This rise mainly results from an increase in volume in the packaging division as well as the sales of the Norwegian pulp mill acquired in the previous year in the cartonboard division.
At EUR 136.5 million, an operating profit of 4.8 % or EUR 6.3 million above the previous year's figure (1-3Q 2013: EUR 130.2 million) could be achieved. A clear rise in profit at the cartonboard division goes along with a stable profit development in the packaging division.
Financial income totaled EUR 1.1 million (1-3Q 2013: EUR 1.0 million), financial expenses EUR -3.7 million (1-3Q 2013: EUR -2.8 million).
Other financial result − net amounted to EUR -2.4 million (1-3Q 2013: EUR -6.2 million) as a non-recurring income of EUR 3.6 million in connection with the residual purchase price for last year's acquisition of Gráficas Los Andes, Colombia, was to be recorded.
Profit before tax therefore increased by 7.6 % to EUR 131.5 million following EUR 122.2 million in the first three quarters of the previous year. Income tax expense amounted to EUR 34.0 million (1-3Q 2013: EUR 29.4 million), resulting in an effective Group tax rate of 25.9 % (1-3Q 2013: 24.1 %).

Profit for the period rose by 5.1 % to EUR 97.5 million (1-3Q 2013: EUR 92.8 million).


DEVELOPMENT IN THE THIRD QUARTER

As already in the two previous quarters, the cartonboard and folding carton markets lacked impulses from the overall economy also in the third quarter. Thus, short-term customer planning and strong competition sustained. However, both divisions managed to maintain or expand market shares with a solid volume development.

The capacities of the cartonboard division were fully utilized at 99 % (2Q 2014: 98 %; 3Q 2013: 99 %). Average prices could be maintained on a stable level. The packaging division reached again the result of the previous year's period through volume gains.

The operating margin of MM Karton was 7.8 % after 8.0 % in the second quarter of 2014 and 10.3 % in the third quarter of 2013, with the latter including the non-recurring income from the acquisition of MMK FollaCell.
The operating margin of MM Packaging amounted to 9.0 % (2Q 2014: 7.9 %; 3Q 2013: 9.2 %).

The Group's operating profit totaled EUR 47.8 million (2Q 2014: EUR 42.5 million; 3Q 2013: EUR 52.7 million), resulting in a Group operating margin of 8.9 % (2Q 2014: 8.3 %; 3Q 2013: 10.2 %).

The profit for the period reached EUR 36.5 million (2Q 2014: EUR 28.9 million; 3Q 2013: EUR 38.1 million).



OUTLOOK

Due to the weak economic development on our European core markets, we also expect an increasingly restrained demand for packaging. In case this trend persists competition will intensify with growing pressure on selling prices. Procurement markets are however stable, thus constantly increasing the degree of effort required to defend margins. Measures for higher productivity and cost-efficiency continue to aim at sustaining our profitability and competitiveness at a sound level also in a conceivable more difficult market environment. Due to the rebuild-related downtime of the large cartonboard machine in Frohnleiten for FOODBOARD(TM) as well as seasonality, a profit below the third quarter is to be expected for the fourth quarter.


Please find the detailed press release and the Interim Report for the first three quarters of 2014 on our website: www.mayr-melnhof.com
Forthcoming results:
March 24, 2015      Annual Results for 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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13.11.2014 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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