Mayr-Melnhof with Improved Sales and Earnings

Published: August 17, 2011; 17:18 · (Vindobona)

The Austrian packaging company reported an increase in sales of 14.5% for the period from January to June. Profit was improved from € 48.9m to € 64.0m.

Mayr-Melnhof with Improved Sales and Earnings / Picture: © Mayr-Melnhof

The Mayr-Melnhof Group was able to close the first half-year 2011 with a significant increase of sales and results despite a normalization and the successive slow-down in demand dynamics as well as an increase in raw material costs. The Group’s operating margin came up to 9.4% (first half of 2010: 9.0%).

Consolidated sales of the Group reached € 988.2m and were thus 14.5% above last year’s level (first half of 2010: € 863.0m). Higher average prices were the main reason for this rise.

The operating profit was improved by 19.5%, from € 77.6m to € 92.7m. This increase was the consequence of a significant rise in the results of cartonboard production. Financial income of € 2.1m (first half of 2010: € 1.2m) was offset by financial expenses of € -2.7m (first half of 2010: € -1.1m). The profit for the period amounted to € 64.0m (first half of 2010: € 48.9m), corresponding to an increase of 30.9%.

The company expects the European buyer sectors to plan their requirements much more cautiously in the next few months and the competition on the markets to intensify significantly. At the same time, Mayr-Melnhof has currently no indication that raw material prices will decrease shortly from their recently achieved peaks.

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