Mondi: Profit falls as demand slumps

MONDI’S third-quarter operating profit fell 10 percent from the previous quarter to e174 million (R2 billion), as part of a seasonal swing in European demand, it said yesterday. “Europe is always slower in the third quarter, but we expect this to pick up in the fourth quarter,” chief executive David Hathorn said after the release of an interim management statement. “The business continued to benefit from its investments in energy related capital expenditure and lower European natural gas prices.” Europe is a key market for Mondi, which has been struggling with lower prices for its paper products and lower global demand. Mondi shares gained 1.74 percent to R169.79 in Johannesburg yesterday. – Reuters