Full year pre-tax profit falls 19 per cent at Mondi

Profit before tax contracted 19 per cent to 371m euros in the full year ending December 31st at paper and packaging group Mondi, an interim management statement has shown.

Group revenue rose 1.0% to €5.8bn while underlying operating profit dropped 9.0% to €568m.

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The group return on capital employed contracted to 13.7% from 15%.

In a financial outlook issued by the company, the group reported: "While the first quarter was particularly difficult, characterised by a continuation of the weak order books seen towards the end of 2011, trading picked up as the year progressed.

"Sales volumes recovered into the second quarter and this, in turn, saw some price recovery in certain of the group's major grades going into the second half of the year.

"The third quarter was impacted by the traditional European summer slowdown in trading, but a strong finish to the year, with good volumes and reasonable price levels in Europe, meant the group was able to deliver full year underlying operating profit of €568m, 9.0% down on the very strong prior year result."

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