Paper and packaging group Smurfit Kappa has reported a sharp fall in profits for the third quarter of this year, as revenue fell by 14% from the same period last year.
CEO Gary McGann said demand for the group's products was stable in the period, but he warned that while sentiment had improved, a return to demand growth in packaging had yet to materialise.
Revenue in the three months was down 14% from a year earlier to €1.5 billion, while trading profits slumped 27% to €96m. There was a pre-tax loss of €27.4m, but this was mainly due to the €49.7m costs linked to closure of a mill in Slovakia and cutbacks at a plant in Cork.
The group said it reduced its net debt by €130m in the quarter to just over €3 billion.
Mr McGann said moves by companies in the industry to cut back on supply had reduced inventory levels and enabled Smurfit to implement a number of containerboard price increases.
Meanwhile, Smurfit Kappa also announced a €500m bond issue , with the money raised being used to pay part of three of its outstanding loans.
Smurfit Kappa shares closed 4.3% higher at €6.20 in Dublin this evening as the results were better than analysts had expected.
