Paper packaging maker Smurfit Kappa today reported pre-tax profits of €170m for 2007, up from a loss of €143m the previous year. The company said it is forecasting modest growth for this year.
Revenues for the year rose by 4% to €7.271 billion, up from €6.97 billion.
Pre-tax profits for the fourth quarter came to €64m, up from a loss of €43m for the fourth quarter of 2006. Revenues for the quarter rose by 4% to €1.818 billion from €1.749 billion.
This is the company's first full year of results since its flotation last March. It is recommending a final dividend of 16.05 cent per share.
Smurfit Kappa's CEO said Gary McGann said that despite the 'uncertain economic outlook', the group's operations have performed well in the year to date and he expected 'modest EBITDA growth' in 2008.
Smurfit Kappa said the outcome for 2007 reflects a good financial performance with selling price improvements more than offsetting the negative impact of cost inflation.
The company said its performance had been helped by a 'generally positive price environment' for its products in Europe and higher sales volumes in South America.
It also saw positive demand for corrugated products in 2007 although it experienced slower growth than expected in the second half of the year largely 'as a result of the poor summer season'.
Shares in Smurfit Kappa closed down 37 cent at €8.85 in Dublin.
