Packaging group Smurfit Kappa Group has announced profits of €89m for the three months to the end of September. This compares to a loss of €47m the same time last year.
Revenues for the three months rose by 5.4% to €1.829 billion as the company reported a 'solid' financial performance against a backdrop of significant cost inflation.
Smurfit Kappa said that as well as recovered paper increases, other costs continued to increase in the third quarter, particularly in starch, wood and energy.
SKG said it expects to continue to experience the impact of these increases in the fourth quarter of the year and into 2008.
'Current and expected trading conditions continue to be characterised by cost inflation and corrugated price recovery', commented Gary McGann, Group CEO.
'Assuming current market conditions prevail, SKG expects continued growth for 2008,' he added.
