Paper and packaging group Smurfit Kappa has reported pre-tax profits of €90m for the first three months of this year, more than double the €43m recorded in the same period last year.
Sales were up 2% to €1.83 billion, helped by high prices for its corrugated products and what the company described as 'reasonable' demand. There was a strong performance from its Latin American businesses, though its impact was lessened by the euro's strength.
But chief executive Gary McGann warned that Smurfit Kappa's margins would come under pressure in the rest of 2008, due to a slowdown in corrugated demand, a weak US dollar and continuing cost inflation.
Operating profits before one-off items climbed 11% to €156m, with profits at the pre-tax level helped by lower interest costs.
Operating margins were down marginally to 14% in its first quarter, but net debt was reduced to €3.37 billion.
Smurfit Kappa shares closed down 83 cent (9.67%) at €7.75 in Dublin.
