Mondi profit edges up in third quarter

Paper and packaging group Mondi reported an increase in third-quarter underlying operating profit compared to a year ago and said it expects to be benefit from higher selling prices as it moves into 2017.

Underlying third-quarter profit was up 3% from the same period a year ago to €227m, versus consensus forecasts of €226m.

The company said on Thursday that it expects to benefit from stable to higher selling prices in a number of key product segments as it moves into 2017 following the downward pressure seen in 2016.

“Costs remain generally stable, albeit with near-term pressure in certain areas. Our ongoing capital investment programme continues to deliver strong returns. With our clear strategy, robust business model and culture of continuous improvement, we remain confident of continuing to deliver an industry leading performance,” the group said.

Mondi also said that due to lower prices for green energy in Poland and the slower-than-expected ramp-up of the paper and in-line coating machine at Steti in the Czech Republic, the incremental operating profit contribution in 2016 from its capital investment programme is now estimated to be €50m, down from €60m previously.