Irish paper packaging maker Smurfit Kappa said this morning its second-quarter core profit rose 18 per cent compared with a year ago, and it expected continued earnings growth in the second half and into 2008.
One of the world's biggest makers of paper and cardboard packaging said earnings before interest, tax, depreciation and amortisation (EBITDA) rose to €260 million ($353.2 million) in the second quarter, in line with analysts' expectations.
Revenue was up 4.4 per cent to €1.8 billion.
"Increasing input costs, while causing margin pressure in the first half, underpin product price momentum and are expected to deliver continued corrugated price improvement and EBITDA growth in the second half and into 2008," the group said.
In the six months to June 30, EBITDA was 28.4 per cent higher at €514 million on a 4 per cent increase in revenue to €3.6 billion.
Smurfit Kappa said that if the impact of currency, closures and disposals was excluded, underlying revenue growth would have been 6.2 per cent for the first half and 7 per cent for the quarter.
The group's EBITDA margin rose 2.7 points to 14.2 per cent in the first half.