Mayr-Melnhof : results slightly below previous year
This was made possible by temporary downtime at the end of the year.
Sales generated were however significantly below the level of the first quarter of 2008, 384 M€ vs 452,9 M€. Although the general economic framework constrained us with regard to both volume and exchange rates, profitability of business was maintained at a generally sound level with a Group operating margin of 9.3 % at 35,7 M€ (1Q 2008: 9.8 %). This level was achieved through price discipline, consistent saving measures and a significant deflation of costs. The operating profit was consequentially 19.6 % below the previous year’s level. The profit for the period, however, decreased marginally to EUR 26.5 million (1Q 2008: EUR 27.3 million) due to lower tax expense. Consolidated sales amounted to EUR 384.0 million which is 15.2 % below the previous year’s level (1Q 2008: EUR 452.9 million). This decline resulted chiefly from lower cartonboard sales and from devaluations of currencies versus the Euro.
The Group’s profit for the period reached EUR 26.5 million which is 2.9 % below last year’s result (1Q 2008: EUR 27.3 million).
MM Karton. The cartonboard volume sold amounted to 334,000 tons in the first three months of 2009, i.e. 21.8 % less than in the same period last year (1Q 2008: 427,000 tons). With 85 % (1Q 2008: 79 %), the share of sales in our home market Europe has considerably increased while the share of non-European business declined from 21 % to 15 %. In line with extremely short-term planning of cartonboard customers and the delayed onset of demand at the beginning of the year, the average order backlog of MM Karton decreased considerably compared to the same period last year from 76,000 tons (1Q 2008) to approximately 35,000 tons. The tonnage produced was 340,000 tons (1Q 2008: 430,000 tons), which translates into a capacity utilization of 81 % (1Q 2008: 96 %) at MM Karton. Almost parallel to volume development, sales decreased from EUR 240.0 million to EUR 182.7 million. The operating profit dropped from EUR 18.4 million to EUR 11.6 million, mainly as a result of lower machine utilization. Thus, the operating margin leveled at 6.3 % after 7.7 % last year.
MM Packaging . Despite clearly more moderate demand at the beginning of the year, development of MM Packaging was generally stable in the first quarter. Order intake demonstrated a largely sound development, but the distinct differences with regard to regions and sales areas that had become apparent at the end of 2008 persisted. While the consequences of the economic downturn were clearly noticed in the non-food area (e.g. detergents), packaging for daily consumer goods like food and cigarettes, in particular, has been mostly spared from these developments. The tonnage processed during the first three months of the year was 163,000 tons, i.e. slightly less than last year (1Q 2008: 165,000 tons). Sales decreased from EUR 248.7 million to EUR 236.0 million (-5.1 %), mainly as a result of currency developments. Operating profit fell almost in parallel by 7.3 % to EUR 24.1 million.The operating margin of 10.2 % was therefore slightly below the level of the first quarter of 2008 (10.5 %).
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