News24
10 Oct 2019, 17:44 GMT+10
The packaging and paper group Mondi's share price fell by 3.5% on Thursday morning after a downbeat quarterly update.
Underlying earnings before interest, tax, depreciation and amortization (EBITDA) for the third quarter fell by 18% to €383 million from the previous year, and it was 9% below the second quarter of 2019.
Demand in the third quarter was weaker, and paper prices were below those of the first half, Mondi reported.
On average, its costs were higher than the comparable prior year period, although lower than the previous quarter.
Planned mill maintenance shutdowns cost it €40 million in earnings. For the full year, the impact is estimated to be around €150 million.
"As we entered the fourth quarter, prices were, on average, marginally below those of the third quarter. If sustained, the impact of this lower pricing is expected to be largely offset by an easing of pressure on the cost base, supported by our ongoing profit improvement initiatives," Mondi said.
Its share price has lost almost 15% of its value over the past year.
Mondi also announced that it will be reorganising its business into four units: corrugated packaging, flexible packaging (including paper bags), engineered materials (including labels and label and protective films) and uncoated fine paper.
Get a daily dose of Chicago Chronicle news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Chicago Chronicle.
More InformationLONDON, U.K.: This week, BP appointed Simon Henry, former Shell finance chief, to its board as a non-executive director effective September...
OTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
NEW YORK, New York - U.S. and global markets showed a mixed performance in Tuesday's trading session, with some indices edging higher...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
(Photo credit: Kamil Krzaczynski-Imagn Images) Vladimir Guerrero Jr. had two hits and two RBIs, Davis Schneider homered and Chris...
(Photo credit: Brad Rempel-Imagn Images) Ryan Jeffers went 3-for-4 with a homer and three RBIs, and the Minnesota Twins used a six-run...
(Photo credit: Jerome Miron-Imagn Images) Earlier this month, Trackhouse Racing announced that Daniel Suarez and the organization...
(Photo credit: Michael Chow/The Republic / USA TODAY NETWORK via Imagn Images) Pondering her team's potential when it plays disciplined...
(Photo credit: Eric Bolte-Imagn Images) Inter Miami will look to continue to climb the Eastern Conference standings on Wednesday...
(Photo credit: Matt Blewett-Imagn Images) The best defensive team in the league will meet one of the hottest offenses when the Minnesota...