Smurfit Kappa Group today reported first-quarter earnings before interest, tax, depreciation, amortisation and one-time items of €184 million compared with €180 million in the prior-year period.
The company said the "relatively strong" EBITDA of €184 million was supported by a particularly solid month of March and pointed to corrugated pricing recovery and demand pick-up in Europe, further momentum in April, and a return to demand growth and price recovery in Latin America.
Revenue at Smurfit Kappa was €1,530m for the first quarter of 2010 compared to €1,504m for the same quarter last year, while operating profit before exceptional items was €87 million for the first three months of this year compared to €82 million for that quarter in 2009.
"Entering the second quarter, increasingly positive demand trends and a positive supply environment are supportive of the recent further containerboard pricing momentum, which in turn will translate into additional corrugated price increases," the packageing company said today.
"The sustainability of the pricing recovery remains dependent on the general economic backdrop and continuing supply side discipline in the European market."
Smurfit struck an optimistic tone in February when it said positive growth returned late last year and that order books continued to improve into 2010.
The group today maintained its expectation of "meaningful" overall EBITDA growth in 2010.