Underlying profits were down 20% compared to a 17% decline in the first half of 2020
() reported reduced profits in the third quarter as lower selling prices and currency swings offset strong demand for corrugated cardboard, paper bags and uncoated fine paper.
Underlying profit (EBITDA) for the three months to end-September, 2020 fell 20% year on year to €306mln, which compared to the 26% decline in the first half.
Given the strong demand from e-commerce and consumer applications for corrugated packaging and normalised inventory levels, the FTSE 100-listed group said it was in talks with customers “around price increases for various containerboard grades”.
While paper bags volumes grew year on year, some de-stocking affected other parts of the Flexible Packaging division.
The paper and packaging group’s profits were hit by the weaker US dollar, impacting a number of the group’s globally traded products, with prevailing exchange rates pointing towards further net negative currency impact in the fourth quarter.
Planned maintenance shutdowns had a €35mln impact in the quarter and with a €55mln hit expected for the fourth quarter are likely to reduce EBITDA by €100mln for the full year.
“The decisive action we took in the early stages of the COVID-19 pandemic helped to protect our people, maintain supply of essential products and services, and deliver a resilient performance,” said chief executive Andrew King.
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