Powerflute says full year will be ahead of previous expectations

Powerflute said it performed strongly in the first half of the year, and the paper and packaging company expects the outcome for the full year to be ahead of previous expectations.

Market conditions in its Coreboard and Cores division in the US and China remain broadly favourable while the Nordic region continues to perform well. In the more challenging European markets, Powerflute said actions taken during the first half to restructure certain businesses are already taking effect and should lead to improvements in the second half.

Packaging Papers is expected to enjoy healthy market conditions for the remainder of the year and will also benefit from more favourable hedging of its exposure to the US dollar, the company said.

Powerflute said the integration of Corenso, which it acquired at the end of 2014, was progressing well.

It said the second half will be affected by planned maintenance shutdowns, but in the absence of any material production challenges or significant changes in market conditions, the full-year performance should be ahead of expectations.