Paper and packaging group Smurfit Kappa has reported pre-tax profits of €187m for the three months to the end of September, up 13% on the same time last year.
Smurfit Kappa said its third quarter revenues inched 1% higher to €2.050 billion from €2.024 billion.
EBITDA for the three month period rose by 6% to €323m and the company said its performance was delivered against a backdrop of much higher than expected recovered fibre input costs and adverse currency movements.
"Based on current operating conditions, the group will deliver continued earnings growth and record EBITDA for 2016 in line with expectations," the company's group chief executive Tony Smurfit stated.
Mr Smurfit said that the group is well positioned and invested in all its chosen markets.
"We continue to invest to further improve the quality of our asset base, and we will make acquisitions where we identify compelling long term value for our shareholders while continuing to maintain our balance sheet strength," the CEO added.
Today's results statement shows that third quarter revenues in Europe fell by €42m due to adverse currency movements. But they rose by €68m in the Americas, boosted by acquisitions.
Smurfit Kappa said that its European operations performed well in the third quarter, despite adverse currency impacts of €4m.
It said it had achieved "relatively stable" corrugated prices on a constant currency basis after containerboard price decreases in the year.
Meanwhile, box volumes rose by 2% so far this year and the company said that box volumes remain about 88% of total corrugated volumes and are growing at a faster rate than sheet volumes.
It also noted that recovered paper prices continued to move upwards during the third quarter, with prices up 13% in September. The increase came on the back of strong domestic and overseas demand.
Smurfit Kappa said that the Americas continued to provide a geographically diversified source of resilient earnings growth.
The group's pan-American sales volumes continued to grow, with the Mexican business seeing corrugated volumes up by 6% in the third quarter, while corrugated volumes rose by 7% in Columbia.
Brazil also saw an increase in volumes but margins there remain under pressure, the company added.
It noted that operational changes in its Californian operations are starting to stabilise with some progress being made there.
The group's operations in Argentina, which faced a slowdown in the third quarter, are expected to grow again in the fourth quarter which should in turn drive volume growth into 2017.
Meanwhile, its operations in Venezuela continued to perform well in what the company described as a very challenging business environment as it was boosted by the ability to source raw materials locally.
Shares in the company closed 5.2% higher in Dublin trade following the results.
