(Sharecast News) - Paper and packaging group Mondi slumped on Thursday as it said that challenging conditions continued into the third quarter, with demand "subdued" and profits much lower.
In an update for the three months to 30 September, the company highlighted the ongoing weak macroeconomic environment and said market demand has remained "soft", with lower average selling prices largely mitigated by lower input costs and tight fixed cost control.
It also said that a much-reduced forestry fair value gain resulted in a lower underlying EBITDA of €261m, down from €450m in the same period a year earlier.
Chief executive Andrew King said: "Demand has remained subdued in the third quarter with stable pricing in containerboard but continued price declines in kraft paper. We expect this trend to continue through the final quarter of the year along with stabilising input costs and a greater impact from maintenance and project-related shuts.
"However, our low-cost asset base, broad product offering and fully integrated business model provides resilience in this environment and ensures we are well positioned to benefit when market conditions improve."
At 0825 BST, the shares were down 5% at 1,265p.
Mondi (MNDI)