Paper packaging maker Smurfit Kappa reported a bigger-than-expected 8.1 per cent rise in fourth-quarter core profit today and saw modest growth in 2008 despite tougher trading conditions.
One of the world's biggest makers of paper and cardboard packaging, Smurfit Kappa said earnings before interest, tax, depreciation and amortisation (EBITDA) rose to €275 million in the three months to the end of December.
Revenue in the period rose 3.9 per cent to €1.82 billion versus analysts' estimates of €1.88 billion. Smurfit Kappa (SKG) chief executive Gary McGann said despite the "uncertain economic outlook" the group's operations performed well in the year to date.
"Assuming current market conditions prevail, SKG expects modest EBITDA growth for 2008 together with continuing strong free cash flow generation," Mr McGann said in a statement.
EBITDA for the full 2007 year rose 20 per cent to €1.064 billion, a shade higher than expected by analysts.
Mr McGann said its performance had been helped by a "generally positive price environment" for its products in Europe and higher sales volumes in South America.
The company also saw positive demand for corrugated products in 2007 although it experienced slower growth than expected in the second half of the year largely "as a result of the poor summer season".