LONDON (Alliance News) - Powerflute Oyj Tuesday said it had performed in line with its expectations in the second half of 2014, excluding the exceptional expenses it is booking for its recent acquisition of Corenso, and it remains "broadly positive" about the outlook for 2015 after starting the year with a healthy order book.
In a trading statement, the paper and packaging company said its packaging papers business continued to enjoy healthy demand in the second half of 2014 and its selling prices were comparable with those it achieved in the first half of the year while raw material costs were stable.
Production and deliveries of packaging papers fell compared with the first half due to a planned annual maintenance shut-down, investment-related stoppages and some minor mechanical issues "which were quickly resolved". Still, total annual production and deliveries were broadly similar to those of the previous year, it said, while earnings before interest, tax, depreciation and amortisation from operating activities showed "some improvement" over the prior year.
Powerflute bought coreboard and cores maker Corenso from Stora Enso Oyj on December 1, and said it had performed in line with hopes that month. It said integration plans are progressing well.
Cores and coreboard are manufactured from recycled paper and are used for applications in paper, packaging, textiles, steel, aluminium and other industries.
"The group begins 2015 with healthy order books in each of its businesses and despite recent uncertainty over economic conditions in certain countries of the Eurozone, the outlook for the year remains broadly positive," Powerflute said in a statement.
Powerflute shares were up nearly 1.0% at 52.00 pence in London Tuesday morning.
It expects to release its full 2014 results on March 25.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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