Packaging group Mondi plc on Friday reported a drop in third-quarter core profit, citing a challenging trading environment with weak demand and falling prices across most of its paper grades.
Underlying earnings before interest, tax, depreciation, and amortization (EBITDA) for the three months to Sept. 30 was 223 million euros, down from 274 million euros in the second quarter, the company said.
Mondi attributed the decline to lower sales volumes and the impact of planned maintenance shutdowns in its packaging businesses.
In response to the market conditions, the company announced it has delayed a planned investment in a new paper machine at its pulp mill in Hinton, Canada.
"Trading conditions in the third quarter were challenging, with softer volumes and declining prices across most pulp and paper grades," said Chief Executive Andrew King.
The company said it expects the difficult trading conditions to persist for the remainder of the year as demand-side confidence remains fragile and key markets are in oversupply.
Mondi also announced a reorganization, combining its Uncoated Fine Paper unit with its Corrugated Packaging business to streamline operations and support faster decision making.
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