Results due from Smurfit Kappa, DCC
Third quarter results from Smurfit Kappa Group are likely to show growth in underlying profitability as the pricing environment continues to improve.
Davy stockbrokers are forecasting Ebitda of €308.2 million, up from the consensus which is €296 million.
The Davy forecast is 10 per cent ahead of the €280 million reported in Q3 last year and 14 per cent ahead of the €270 million reported in Q2.
Davy head of research Barry Dixon said the firm’s results also reflect the impact of the Orange County acquisition, which was completed in December last year.
“We estimate that this business contributed €13 million to group Ebitda in Q1 and €16 million in Q2,” he said. In terms of outlook, he said Smurfit Kappa management is likely to give some guidance as to the full-year 2013 Ebitda out-turn.
“We are forecasting 2013 Ebitda of €1.13 billion, 11 per cent ahead of 2012.”
Back on track
DCC will be reporting first-half results on the same day as Smurfit Kappa, with the company expected to be back on track to deliver on recently upgraded 2014 guidance. The upgrade was mainly driven by a better-than-expected performance by DCC’s two largest divisions.
In the first quarter of the year, the largest division – DCC Energy – benefited from colder than normal weather.