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MAYR-MELNHOF KARTON AG (FRA:MYM) Mayr-Melnhof Karton AG: Results for the 1st Half-year 2013

Transparency directive : regulatory news

14/08/2013 08:00
DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Half Year Results Mayr-Melnhof Karton AG: Results for the 1st Half-year 2013 14.08.2013 / 08:00 --------------------------------------------------------------------- * Profit for the period above previous year's value * Sales and volumes affirmed * Lower average prices weigh on operating profit * Third quarter expected at second quarter level * MM Packaging expands into Southeast Asia The Mayr-Melnhof Group was able to stand up solidly in the first half of 2013 in an environment marked by a continuing economic slowdown and considerably intensified competition. The profit for the period at EUR 54.7 million was 6.0 % above the comparative value of the previous year. Cartonboard production as well as cartonboard processing recorded increased volumes and high capacity utilization. This enabled us to maintain the sales of both divisions at or slightly above the level of the comparative period despite significantly increasing price competition. However, at EUR 77.5 million, operating profit was 4.7 % below the corresponding period of the previous year, primarily due to prices. Looking to the future, there is still no indication for a recovery in the development of demand, meaning that short-term planning of our customers along with continued pressure on prices is to be expected in the second half of the year. An objective under these challenging circumstances is to maintain the profitability of the Group as best as possible through price discipline and a high level of efficiency. Mayr-Melnhof Packaging continuing its expansion into growth markets has today entered into an agreement to acquire 65 % of the shares of a leading folding carton producer in Vietnam. Vidon located in Ho Chi Minh City is focused on the manufacture of high-grade cartons in rotogravure as well as offset printing selling to international and local consumer goods producers. In the previous year sales of about EUR 9 million were generated with a staff of approximately 170 people. Group Key indicators (IFRS, unaudited) consolidated in millions of EUR 1HY/2013 1HY/2012 +/- Sales 981.8 975.0 +0.7 % Operating profit 77.5 81.3 -4.7 % Operating margin (in %) 7.9 % 8.3 % Profit before tax 73.4 72.4 +1.4 % Profit for the period 54.7 51.6 +6.0 % Earnings per share (in EUR) 2.72 2.57 At EUR 981.8 million the Group's consolidated sales slightly exceeded the level of the previous year (1st half of 2012: EUR 975.0 million). In both divisions lower average prices were countered by an increase in volumes. Operating profit declined by 4.7 % or EUR 3.8 million to EUR 77.5 million, due to prices. The Group's operating margin changed accordingly from 8.3 % to 7.9 %. Following the lowered interest level, financial income totalled to EUR 0.7 million (1st half of 2012: EUR 1.5 million), financial expenses to EUR -1.8 million (1st half of 2012: EUR -3.0 million). Other financial result - net went down from EUR -7.4 million to EUR -3.0 million. This decline is primarily attributable to the shortfall of non-recurring expenses for the increase of the shareholding in the Chilean folding carton producer Marinetti in the previous year. Profit before tax rose accordingly to EUR 73.4 million (1st half of 2012: EUR 72.4 million). Income tax expense decreased from EUR 20.8 million to EUR 18.7 million, resulting in an effective Group tax rate of 25.5 % (1st half of 2012: 28.7 %). Profit for the period thus increased by 6.0 % to EUR 54.7 million (1st half of 2012: EUR 51.6 million). DEVELOPMENT IN THE SECOND QUARTER The Group's business development in the second quarter was characterized by continuity from the previous quarter and the previous year. While, with more than 99 %, capacity in cartonboard production was once again fully utilized (1Q 2013: 98 %; 2Q 2012: 97 %), folding carton production sites experienced noticeably more heterogeneous capacity utilization due to generally weaker consumer behavior. Sufficiently available capacity within the industry continued to keep high competitive pressure on prices in both divisions. In contrast, developments on the raw material markets provided no decisive support for margins. Compared to the previous quarter (1Q 2013: 4.8 %) and the previous year (2Q 2012: 5.8 %), MM Karton was able to improve its operating margin to 6.5 %. The operating margin of MM Packaging was at 8.6 % (1Q 2013: 9.5 %; 2Q 2012: 9.1 %). The Group's operating profit reached EUR 39.1 million following EUR 38.4 million in the first quarter of 2013 and EUR 38.2 million in the second quarter of the previous year, resulting in a Group operating margin of 8.1 % (1Q 2013: 7.7 %; 2Q 2012: 8.0 %). The profit for the period amounted to EUR 27.7 million (1Q 2013: EUR 27.0 million; 2Q 2012: EUR 22.8 million). OUTLOOK Continuing weak economic development and increasing caution in private consumption will determine the overall conditions on our European main markets in the coming months. Visibility over incoming orders remains short-term, customer planning volatile and more unpredictable. It is therefore difficult to forecast whether the capacity utilization will remain at the current good level. The development on raw material markets, especially for recovered paper, appears to be stable but without any foreseeable support for profitability. However, the aim remains to affirm our prices, margins and market shares as best as possible despite significant competitive pressure. Our continuous measures are providing an important contribution to this. In the third quarter continuity of results on the level of the second quarter should therefore be achievable. Please find the detailed Press Release and the Half-year Financial Report of 2013 on our website http://www.mayr-melnhof.com. For further information, please contact: Stephan Sweerts-Sporck Investor Relations Mayr-Melnhof Karton AG, Brahmsplatz 6 A-1041 Wien Tel.: +43 1 50136-91180 Fax: +43 1 50136-191195 E-Mail: investor.relations@mm-karton.com Website: http://www.mayr-melnhof.com End of Corporate News --------------------------------------------------------------------- 14.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Mayr-Melnhof Karton AG Brahmsplatz 6 1040 Wien Austria Phone: 0043 1 501 36 91180 Fax: 0043 1 501 36 91391 E-mail: investor.relations@mm-karton.com Internet: www.mayr-melnhof.com ISIN: AT0000938204 WKN: 93820 Indices: ATX Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open Market ; Wien (Amtlicher Handel / Official Market) End of News DGAP News-Service --------------------------------------------------------------------- 225728 14.08.2013


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