Dublin-based paper and packaging company Smurfit Kappa Group today reported pretax profits of €90 million for the three months to end-March, more than double the €43 million reported for the same period a year ago, after corrugated prices recovered in Europe.
Revenues at the group were €1.83 billion, up 2 per cent from €1.79 billion in the same period in 2007, and EBITDA before Exceptionals and Share-based Payments was €257 million, a rise of €257 million.
The company said cash flow was strong in the period and that it has made continued progress against its leverage objectives.
However, the group warned it faced greater than expected margin pressure throughout the remainder of 2008 because of a slowdown in demand growth for corrugated, continued weakness in the value of the dollar and further cost inflation.
The company said net debt had been reduced 5 per cent within the quarter to €3.35 billion
Smurfit Kappa said it would continue to review the cost profile of its mills but said its had an "increasingly efficient mill system and remain short of recycled paper production capacity".