Smurfit Kappa shares fall 10%

SHARES in paper and packaging giant Smurfit Kappa Group (SKG) plunged almost 10% yesterday after it warned of pressure on its profit margins this year.

Gary McGann, SKG’s chief executive, said he expects a fall in earnings before interest, tax, depreciation and amortisation (EBITDA) of up to 10% compared to last year.

The company yesterday posted pre-tax profits of €90 million for the first three months of the year, more than double its 2007 first-quarter profits.