Packaging group Smurfit Kappa has reported operating profits of €409m for the year to the end of December, up 53% on the €267m reported in 2009.
Revenues for the year increased by 10% to €6.677 billion from €6.057 billion with better than expected demand in the 12-month period and further improvements in prices both in Europe and Latin America.
The company reported a pre-tax profit of €103m for the year compared iwth a pre-tax loss of €52m in 2009.
Smurfit Kappa said that while its energy costs were broadly stable in 2010, raw material costs were significantly higher. Recovered paper prices more than doubled from 2009 levels, while wood costs were up 13%.
The company said that in the fourth quarter of 2010 and early this year, it experienced upward pressure in almost all of its costs.
These cost increases allowed the company to implement a number of containerboard price increases last year and to announce a further recycled containerboard increase of €60 a tonne for February 2011.
'Current business conditions support continued price recovery with input costs rising and demand remaining strong,' commented Smurfit Kappa's chief executive Gary McGann.
'Industry inventory levels remain at a satisfactory level and the supply outlook is favourable,' he added.
'These factors, together with Smurfit Kappa Group's ongoing cost control initiatives, should deliver further performance improvement and earnings growth in 2011,' he added.
Shares in Smurfit Kappa closed down 5.5% at €8.60 in Dublin.
