LONDON (Alliance News) - Finnish packaging company Powerflute Oyj on Thursday said trading remained good in the first four months of 2016, with results broadly in line year-on-year despite less favourable markets.
Powerflute said its Coreboard and Cores business has been hit by a slowdown in the Chinese market, but its US unit continued to perform well and some underlying improvements were seen in Europe.
For Packaging Papers, trading continues to be challenging and margins have come under pressure, it said, amid softer containerboard market demand and capacity increases.
"Although the second half of the year is expected to be more challenging, the group remains well positioned in attractive markets and we expect that further benefits from the operational improvement programmes currently underway in each of our businesses should help to mitigate the impact of more challenging market conditions," Powerflute said.
Powerflute shares were down 7.5% to 76.75 pence Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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