26 May 2016 07:00
26 May 2016
POWERFLUTE OYJ
AGM STATEMENT
Powerflute Oyj ("Powerflute" or the "Group") today provided the following update on trading at the Annual General Meeting of shareholders held in Kuopio, Finland.
The Group continued to perform well during the first four months of 2016, achieving trading results broadly in line with those of the same period of the prior year despite encountering less favourable market conditions.
In Coreboard and Cores, the economic slowdown in China impacted on results in the region, but businesses in the US continued to perform strongly and some underlying improvement on the prior year was achieved in Europe. In Packaging Papers, the order situation continued to be challenging and margins remained under pressure due to softening of demand in containerboard markets worldwide and the impact of capacity increases in SC-fluting which will take some time for the market to absorb.
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.
Ends
For further information, please contact:
Powerflute Dermot Smurfit (Chairman) Marco Casiraghi (CEO) David Walton (CFO)
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c/o Oliver Winters, FTI Consulting +44 20 3727 1535 |
Numis Securities Mark Lander (Corporate Broking) Andrew Holloway / Jamie Lillywhite (Nominated Advisor)
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+44 20 7260 1000 |
FTI Consulting Oliver Winters Tom Hufton
| +44 20 3727 1535 |
About Powerflute
Powerflute is a paper and packaging group quoted on the AIM market of the London Stock Exchange (Ticker: POWR) which seeks to acquire businesses with strong fundamentals whose performance can be improved through a combination of management focus and targeted investment.
The Group currently has two main activities; Packaging Papers which trades under the name Powerflute and operates a paper mill in Kuopio, Finland producing a specialised form of Nordic semi-chemical fluting used in the manufacture of high-performance corrugated board; and Coreboard and Cores, which trades under the name Corenso and is a leading international manufacturer of high performance coreboard and cores, with coreboard mills in the United States and Europe and a network of core producing facilities in Europe, North America and China.
Nordic semi-chemical fluting is made from locally sourced birch and boxes manufactured using it demonstrate superior strength and moisture resistance and are used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill is one of only three suppliers of Nordic semi-chemical fluting in Europe.
Cores and coreboard are manufactured from recycled paper and are used for applications in paper, packaging, textiles, steel, aluminium and many other industries. Coreboard and cores produced by Corenso demonstrate superior strength and rigidity and are suitable for use in the most demanding applications.
For further information, please visit www.powerflute.com.