14th Aug 2015 07:45
LONDON (Alliance News) - Powerflute Oyj Friday said it performed strongly in the first half of 2015 in both its Coreboard and Cores and Packaging Papers activities and said the outcome for the full year will be ahead of previous expectations.
The paper and packaging group said that market conditions in the US and China remain broadly favourable and that the Nordic region continues to perform well. In the more challenging European markets, actions taken during the first half to reposition and restructure certain businesses are already beginning to take effect and should lead to further improvement in the second half, Powerflute said.
Packaging Papers is expected to enjoy healthy market conditions for the remainder of the year and also will benefit from more favourable hedging of its exposure to the US dollar, the company said.
Powerflute added that its results for the first half will be hit by costs related to the acquisition and integration of coreboard and cores manufacturer Corenso Group, although it said that the costs are generally in line or lower than the estimates previously provided.
Cores and coreboard are manufactured from recycled paper and are used for applications in paper, packaging, textiles, steel, aluminium and many other industries.
"The second half will be impacted by planned annual maintenance shutdowns in a number of the paper and coreboard mills during which we will complete several complex projects and upgrades that are not without operational risk. However, in the absence of any material production challenges or any significant change in market conditions, we currently expect that the outcome for the full year will be ahead of previous expectations," Powerflute said in a statement.
Shares in Powerflute were trading up 0.8% at 76.75 pence early Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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