Paper and packaging firm Mondi pushed through underlying profit of €136m in the third quarter, well above the same period a year earlier but down from €175m in the previous quarter.

"This performance reflects the impact of the planned third quarter maintenance shuts, estimated to have negatively affected underlying operating profit by approximately €20m, and a generally softer trading environment, including the impact of destocking, compared to a very strong first half of 2011," Mondi said in a company statement.

It added that during the quarter, "uncertainties inherent in the macroeconomic environment resulted in some weakening in demand and moderately lower sales prices." Mondi said this was partially offset by stable or reducing input costs.

Average benchmark recovered fibre prices fell by 4% in the quarter and wood costs
were little changed over the period.

Net debt reduced to €1.054bn at 30 September 2011 following the Mpact demerger, which was completed in July 2011.

"Broader macroeconomic weakness is giving rise to some slowdown in demand and moderate pricing pressure across certain product areas. The current demand weakness would appear to be driven by destocking, making predictions on near term underlying demand trends difficult."

Mondi said it would continue to respond decisively by taking production downtime where appropriate.

The group concluded that given its financial position, low-cost operating model, and focus on performance, it believes it is well-positioned to deliver strong returns through the business cycle.




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