Smurfit Kappa sees rise in Q3 revenues

Smurfit Kappa today posted revenues of €1.7bn for the third quarter 2010, up 12% from the same period last year.

Pre-tax profits for the three months to end September were €41m, compared to a €40m loss for Q3 2009.

The company said strong cash flow generation had contributed to its debt being reduced by €168m to €3.124bn during the quarter, while EBITDA increased to €243m, a 26% rise on last year.

"Despite significant input cost pressure, SKG’s improved EBITDA margin of 14.3% in the quarter demonstrates an unrelenting focus on cost and operating efficiency, and further meaningful progress in corrugated price recovery," said CEO Gary McGann.

"The Group’s performance also reflects the benefits of sustained demand growth across all its major markets."

Looking ahead, the company said that good market conditions combined with higher input costs underpin continued corrugated price recovery in Q4.

It said it is on track to hit its previously-forecast target of EBITDA growth of around 20% for the full year.