Mondi slumps after profit warning

Mon, 01 Jun 2020

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 Peking Press.

More Information

25 ℃

null in Beijing

Business

Section

NSW, Australia, pushes infracture pipeline out to $100 billion

SYDNEY, NSW, Australia - Australia's most-populated state is to throw another $3 billion at infrastructure projects to boost employment prospects ...

Quarterly GDP in Macau drops by nearly half, services exports drop 60%

MACAU, May 30 (Xinhua) - The Gross Domestic Product (GDP) of Macau dropped by 48.7 percent year-on-year in real terms ...

China's top Internet firms record near 5% rise in business

BEIJING, May 30 (Xinhua) -- China's Internet and related services sectors have maintained expansion in the first four months, displaying ...

Trump unsettles U.S., global markets,

NEW YORK, New York - More rhetoric from U.S. President Donald Trump unsettled Wall Street on Friday, and undermined confidence ...

Chinese platform dedicated to content influencer campaigns launches

HANGZHOU, May 29 (Xinhua) -- AliExpress, a global online retail marketplace and part of Alibaba Group, announced on Thursday that ...

Stocks slide in Asia, greenback slumps

SYDNEY, NSW, Australia - Stocks in Asia skidded on Friday, and the U.S. dollar dived, as the relationship between the ...

China

Section

Chinese government rejects White House report on China's intentions

BEIJING, China May 29 (Xinhua) - A spokesperson for China's Ministry of National Defense on Friday criticized a report recently ...

Chinese President Xi Jinping leads at National People's Congress

BEIJING, May 28 (Xinhua) - China convened the "two sessions" after an over two-month postponement due to COVID-19 as the ...

Top Esports collect first title at Mid-Season Cup

Top Esports captured their first championship Sunday by defeating FunPlus Phoenix 3-1 in the League of Legends Mid-Season Cup final. ...

Fnatic claim another title at ESL One Birmingham - SA

Fnatic continued their championship run with a 3-1 win over BOOM Esports in Sunday's grand finals of the ESL One ...

US Protests Could Bring Coronavirus Surge

LOS ANGELES - U.S. health officials are warning there could be a new surge in coronavirus cases following the protests ...

World Uneasily Watches US Protests But US Racism Seen Before

LONDON - Nations around the world have watched in horror at the five days of civil unrest in the United ...

Movie Review

The Driller Killer

Driller Killer