Slowing pace of demand in Europe sees analysts cut Smurfit forecasts

IRISH packaging group Smurfit Kappa triggered concerns about its profit outlook for next year yesterday after flagging a slowing pace of demand growth in Europe.

Some analysts cut their forecasts for 2012 after Europe’s leading containerboard and corrugated packaging producer said the weaker trading environment had put downward pressure on paper prices.

“The underlying trend is that volume growth is moderating and the pricing environment is getting more difficult,” said Paraic Quinn, an analyst with Bloxham Stockbrokers, who cut his 2012 EBITDA (earnings before interest, taxes, depreciation and amortisation) estimate to €945 million from €1.09 billion.