30th Jun 2014 11:48
LONDON (Alliance News) - Powerflute Oyj Monday said volumes, revenues and profits from operating activities in the first six months of the 2014 all are ahead of the same period last year, despite tough economic conditions across much of Europe.
In a statement, the paper and packaging group said its own trading environment has been "broadly" favourable, with "healthy demand and attractive selling prices" in most major markets. Raw material costs were stable, as well other input costs, Powerflute said, adding that it has been able to capitalise on the conditions with a further improvement in earnings before interest, tax, depreciation and amortisation generated from operating activities.
Although the group, which operates a paper mill in Kuopio, Finland, noted softening demand and pricing in containerboard markets in recent weeks, which it said was generally due to normal seasonal factors, it said overall activity continues to be good for the time of year. It said it is beginning the second-half with a healthy forward order book and "robust" demand for its products.
"The group has delivered another strong performance in the first half of the year due to a combination of favourable market conditions, further increases in production output and tight control of operating costs," Chairman Dermot Smurfit said in a statement.
"We are pleased with the progress achieved so far this year and while we do not expect any improvement in the general economic environment, we are cautiously optimistic that market conditions will remain broadly favourable and that the current strong performance will continue into the second half of the year," Smurfit added.
Powerflute shares were Monday quoted at 38.20 pence, down 0.8%.
By Samuel Agini; [email protected]; @samuelagini
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